Ms. My Trang (in Ha Noi) works in a public secondary school which is partially funded by the state’s budget annually. In 2003, her unit procured a 15-seater car which was fully depreciated for VND 50 million by her unit’s autonomous source of revenue.

By 2013, the vehicle which had exceeded its use life and had no value was converted into a 3-seater vehicle, Mrs. Trang's unit proceeded to liquidate the car. The liquidation procedures included: Minutes of Party cell and key officials meeting, the liquidation decision signed by the head of the unit, the establishment of a liquidation council; a liquidation contract; minutes of vehicle handover and liquidation; VAT invoice for vehicle sales. The revenue from the sale of the vehicle was in the autonomous revenue of the unit.  

Ms. Trang would like to ask, does her unit have to send an official letter the superior regulatory agency to request the liquidation of the vehicle? Is it required to have the presence of the superior regulatory agency when determining the liquidated price?

In response to this issue, the Ministry of Finance gives following opinion:

The liquidation of car in the year 2013 was subject to the following regulations:

Article 29 of Law No.09/2008/QH12 dated June 3rd, 2008 on management and use of State property stipulates the sources of state property at public non-business units:

1. Property assigned by the State in kind or land use rights.

2. Budget funds allocated by the State for investment in the construction or procurement of property.

3. Property built with investment or procured with money originating from the state budget.

Regarding the competence to decide on liquidation of cars, pursuant to article 26, 37 and 48 of Decree No. 52/2009/NĐ-CP dated June 3rd, 2009 of the Government,  Ministers and heads of central agencies may decide on or decentralize the liquidation of cars under their management ( central public non-business units); Provincial-level People's Councils may decentralize the liquidation of locally managed state agencies.

Therefore, the rights of the unit to decide on liquidation or submitting the official letters to the superior regulatory agency for car liquidation shall base on the decentralization of the Minister, Head of the central organ or the provincial People's Council.

Liquidated car price determination council shall be established

Article 27 of Decree No. 52/2009/NĐ-CP of the Government stipulates the Modes of liquidation of cars: Open auction or designated sale. Designated sale shall be implemented under Clause 2, Article 27 or Decree No. 52/2009/NĐ-CP.

Point b, Clause 1, Article 21 and point b, clause 1, article 22 of Decree 52/2009/NĐ-CP of the Government stipulate: Heads of public non-business units having property on sale shall set up a council to determine reserve prices or hire capable valuation organizations to determine their values as the basis for deciding reserve prices of property on auction or deciding selling prices of property on designated sale.

Point b, Clause 4, Article 12 of Circular 245/2009/ TT-BTC dated December 31st, 2009 of the Ministry of Finance stipulates the Components of the Price Determination Council:

- Leader of agencies, organizations and units- Chairman of the Council;

- Representatives of upper management agencies;

- Representatives of the department charged with using properties;

- Representatives of the financial – accounting department of agencies, organizations and units;

- Representatives of professional and technical agencies (if necessary);

- Other relevant members;