Costs for inspection, approval of final settlements of completed investment projects financed by state capital in Vietnam

According to the provisions in Article 21 of Circular 09/2016/TT-BTC and Clause 10, Article 1 of Circular 64/2018/TT-BTC amending Circular 09/2016/TT-BTC, the regulations on determining, managing, and using verification and settlement approval costs; independent audit costs are as follows:

1. Determination of verification and settlement approval costs; independent audit costs in Vietnam:

- The cost norms for verification and settlement approval and the audit cost norms for the completed project settlement report are determined based on the proposed settlement value and the rates specified in the Table of Verification, Settlement Approval Cost Norms; audit costs below:

The proposed settlement value is the settlement value in the completed project settlement report prepared by the investor, including the proposed settlement value A-B for contracted packages, the proposed settlement value for investor-executed packages, and other lawful cost items.

- The verification and settlement approval cost norms and audit cost norms are determined using the following general formula:

In which:

• Ki: Cost norm corresponding to the project/item/package to be calculated (unit: %);
• Ka: Cost norm corresponding to the project/item/package at the upper limit (unit: %);
• Kb: Cost norm corresponding to the project/item/package at the lower limit (unit: %);
• Gi: Proposed settlement value of the project/item/package to be calculated, unit: billion VND;
• Ga: Proposed settlement value of the project/item/package at the upper limit, unit: billion VND;
• Gb: Proposed settlement value of the project/item/package at the lower limit, unit: billion VND.

- The verification and settlement approval costs and audit costs of the project/item/package are determined using the following formula:

• Maximum verification and settlement approval costs = Ki-TTPD % x Proposed settlement value;
• Maximum audit costs = Ki-KT % x Proposed settlement value + VAT;
• The minimum verification and settlement approval costs are five hundred thousand VND; the minimum audit costs are one million VND plus VAT.

Temporary costs for verification and settlement approval and audit to approve projects, estimates, package prices in the contractor selection plan, and contract signing are determined according to the provisions at point a, point b, and point c, clause 1, Article 21 of Circular 09/2016/TT-BTC, where the total project investment level or estimate of the item/package is used instead of the proposed settlement value.

The verification and settlement approval and audit costs determined as per points a and b, clause 1, Article 21 of Circular 09/2016/TT-BTC must not exceed the above temporary costs.

The total verification and settlement approval and audit costs for items and packages must not exceed the temporary verification and settlement approval and audit costs of the project.

- In cases where the project has an equipment cost structure accounting for 51% or more of the total investment, the verification and settlement approval cost norm and the audit cost norm are calculated at 70% of the norm.

- In cases where the project has conducted a settlement audit report, the verification and settlement approval cost norm is calculated at 50% of the norm.

- In cases of national important projects, Group A projects, or project programs with sub-projects or component projects with separate investment decisions, the verification and settlement approval costs and audit costs are calculated as an independent project.

- For independent projects or sub-projects for compensation, support, and resettlement, the verification and settlement approval cost norm and audit cost norm are calculated at a maximum of 70% of the norm.

2. Management and usage of verification and settlement approval costs in Vietnam:

- When conducting verification, the presiding verification agency shall issue a written request for the investor to pay the verification and settlement approval costs as per the rate specified in clause 1, Article 21 of Circular 09/2016/TT-BTC. The expenditure items for verification and settlement approval work include:

• Payment for remunerations to members directly involved in verification and settlement approval at fixed rates or hourly rates;
• Payment to experts or consulting organizations performing the project settlement verification in cases where the presiding verification agency signs time-based contracts with experts or consulting organizations;
• Expenditure for business travel, office supplies, translation, printing, conferences, seminars, purchasing computers or equipment to serve verification and settlement approval tasks;
• Other related expenditures regarding the settlement work.

- The presiding verification and settlement agency may use the verification and settlement approval costs according to the rate in clause 1, Article 21 of Circular 09/2016/TT-BTC, and expenditure according to the content specified in point a, clause 2, Article 21 of Circular 09/2016/TT-BTC. The verification and settlement approval costs that have been controlled according to regulations, when not fully used within the year, may be carried forward to the following year for implementation.

Verification and settlement approval costs; audit costs are accounted for as other costs in the project's settlement value.

In cases where the investor hires an independent auditor to audit the completed project settlement report, the independent auditing unit, except for the unperformed work volume; the investor shall adjust the independent audit costs according to the contract conditions and the unperformed work volume.

Legal basis:

- Circular 09/2016/TT-BTC effective from March 5, 2016;

- Circular 64/2018/TT-BTC amending Circular 09/2016/TT-BTC effective from September 15, 2018.

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