How Does the Local Development Investment Fund Manage Fixed Assets?

Circular 28/2014/TT-BTC prescribes that the Fund shall develop the Regulation on management of investment and construction activities, procurement, and management of fixed assets, and submit it to the Fund's Management Council for approval as prescribed in the Charter on organization and operation of the Fund.

The management of fixed assets of the Local Development Investment Fund is regulated as follows:

- Investment, construction, and procurement of the Fund's fixed assets:

- The authority to decide on investment projects, construction, and procurement of the Fund's fixed assets is regulated in the Charter on organization and operation of the Fund;- The procedures for investment, construction, and procurement of fixed assets are implemented in accordance with the laws on investment and construction management. The Fund is responsible for purchasing property insurance as prescribed by the law;- The investment and procurement of vehicles serving the Fund's operations shall comply with the standards applied to enterprises wholly owned by the State.

- Principles of depreciation, policies on management, use, and depreciation period of the Fund's fixed assets shall follow the regulations on depreciation of fixed assets applied to enterprises wholly owned by the State.

- Leasing, mortgaging, and pledging of fixed assets:

- The Fund has the right to lease, mortgage, and pledge fixed assets according to the principles of efficiency, capital preservation, and development as prescribed by law;- The authority to approve investment, construction, and procurement projects of the Fund is the authority to decide on the leasing, mortgaging, and pledging of fixed assets.

- Liquidation, transfer, and sale of fixed assets:

- The Fund has the right to independently transfer and liquidate fixed assets that are damaged, technologically outdated, not in demand, or unusable;- The authority to approve investment, construction, and procurement projects of the Fund is the authority to decide on the liquidation, transfer, and sale of fixed assets;- The procedures for liquidation, transfer, and sale of the Fund's fixed assets are implemented in accordance with the laws applicable to enterprises wholly owned by the State.

- Inventory and reassessment of fixed assets:

- The Fund must conduct periodic or unscheduled inventories to determine the quantity of fixed assets in the following cases: when closing the books to prepare the annual financial report; after natural disasters, enemy disruptions, or for any reason causing asset fluctuations of the Fund; as prescribed by competent state agencies;- ...

More details can be found in Circular 28/2014/TT-BTC effective from April 12, 2014.

Thu Ba

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