Management and use of funds collected from the processing of public properties at state agencies in Vietnam

Management and use of funds collected from the processing of public properties at state agencies in Vietnam (Internet image)

Management and use of funds collected from the processing of public properties at state agencies in Vietnam

According to Article 36 of Decree 151/2017/ND-CP, the regulations on the management and use of funds collected from the processing of public properties at state agencies are as follows:

(1) The entire amount of funds collected from the processing of public properties at state agencies (including compensation, if any) shall be deposited into a temporary account at the State Treasury, managed by the agency responsible for managing public properties, as follows:

- The agency responsible for managing public properties as stipulated in Clause 1, Article 19 of the Law on Management and Use of Public properties 2017 shall be the account holder in charge of managing the funds collected from the processing of public properties as decided by the Prime Minister, Minister of Finance;

- The Department of Finance shall be the account holder in charge of managing the funds collected from the processing of public properties as decided by the provincial-level authorized agency for processing public properties of state agencies within the province, centrally-run cities, except for public properties specified above;

- The Finance - Planning Department at the district level shall be the account holder in charge of managing the funds collected from the processing of public properties as decided by the district-level authorized agency, commune-level authorized agency for processing public properties.

(2) The temporary account shall be detailed for each agency with processed properties.

(3) The head of the agency responsible for organizing the processing of public properties shall be responsible for preparing and approving the budget for expenses related to the processing of properties, except as specified in point (11).

(4) The expenses related to the processing of public properties shall include:

- property inventory costs;

- Costs of measuring, drawing buildings, and land;

- Costs of property valuation and appraisal;

- Costs of relocation, demolition, cancellation, and destruction of properties;

- Auction remuneration paid to auction organizations in the case of successful auctions; auction costs paid to auction organizations in the case of unsuccessful auctions; auction costs when the auction is organized by the Council;

- Costs of listing, public announcement, property viewing, and selection of eligible buyers in the case of property sale by listed price;

- Other reasonable costs related to the processing of public properties.

(5) The level of expenditure shall be as follows:

- For items with existing standards, norms, and regulations stipulated by the respective authority, the implementation shall comply with the standards, norms, and regulations stipulated by the respective authority;

- For services related to the processing of properties, the implementation shall be in accordance with the signed contract between the agency responsible for organizing the processing of properties and the service provider. The selection of service providers shall comply with legal regulations;

- For expenses beyond the scope of points (a) and (b) of this provision, the head of the agency responsible for processing properties shall decide the expenditure level, ensuring compliance with the current financial management regime of the state and taking responsibility for their decisions.

(6) Within 30 days from the date of depositing the funds into the temporary account, the agency responsible for organizing the sale and liquidation of properties shall be responsible for preparing a set of payment request documents to be submitted to the account holder for payment of property processing expenses. The head of the agency responsible for organizing the sale and liquidation of properties shall be legally responsible for the accuracy of the proposed payment.

The payment request documents shall include:

- Payment request letter from the agency responsible for organizing the processing of properties (specifying the amount collected from the processing of properties, total expenses for property processing, and information about the receiving account) along with a detailed itemized list of expenses: 1 original copy;

- Decision on the processing of properties by the authorized agency: 1 certified copy;

- Documents and papers proving the expenses, such as the approved budget for expenditure; contracts for valuation, auction, and demolition services; invoices, receipts (if any): 1 certified copy.

(7) Within 30 days from the date of receiving complete and valid documents, the account holder shall be responsible for providing funds to the agency responsible for organizing the sale and liquidation of properties to carry out payments for expenses related to the processing of public properties.

(8) Quarterly, the account holder shall regularly transfer the remaining amount of funds collected from the processing of public properties to the central budget (for funds collected from the processing of properties of state agencies under central management) or the local budget (for funds collected from the processing of properties of state agencies under local management) in accordance with the provisions of the state budget law.

(9) In cases where state agencies are permitted by competent authorities to process public properties for the purpose of purchasing replacement properties according to standards and norms, or where state agencies are compensated for property damage in cash, the competent authorities shall prioritize the allocation of funds in the state budget to carry out such activities in accordance with the provisions of the state budget law.

In cases where state agencies are permitted by competent authorities to process public properties for their workplaces and have investment projects for construction, procurement, renovation, or upgrading of their workplaces, or where state agencies are compensated for property damage in cash, the competent authorities shall prioritize the allocation of capital in the public investment plan and the budget for investment development to carry out such activities in accordance with the provisions of the law on public investment and the state budget law.

(10) In cases where the amount collected from the sale or liquidation of properties is not sufficient to cover the expenses, the shortfall shall be provided from the state budget allocation to the agency responsible for organizing the sale or liquidation of properties.

(11) In cases where the demolition of old workplaces is carried out to implement investment projects for new workplaces, and the costs of demolishing the old workplaces have been allocated in the total investment amount of the new workplace construction project approved by the competent authorities for investment, the budget estimation and payment of expenses for processing properties shall be carried out according to the project approved by the competent authorities and the relevant laws and regulations.

(12) The management and use of funds collected from the processing of workplaces at state agencies shall be carried out in accordance with the government's regulations on the rearrangement and processing of public properties.

Mai Thanh Loi