Decree of the Ministry of Finance and the State Bank of Czechoslovakia No. 92 / 1965 Coll.
Decree of the Ministry of Finance and the Czechoslovak State Bank on the financing of the reproduction of basic funds
Valid
Effective from 01.01.1966
92
DECLARATION
Ministry of Finance and Czechoslovak State Bank
of 4 September 1965
on the financing of the reproduction of basic funds
The Ministry of Finance and the State Bank of Czechoslovakia (hereinafter referred to as "the Bank ') provides, pursuant to § 391 (2) of the Economic Code No. 109 / 1964 Coll., under § 11 of Act No. 83 / 1958 Coll., on the modification of financial planning and financial management of national enterprises and other economic organisations of the State Socialist sector and under § 20 and 21 of Act No. 8 / 1959 Coll., laying down basic rules on the State Budget and on the management of budgetary resources:
Subject matter and scope of the adjustment
This decree provides for the financing of the reproduction of basic funds by state organisations.
Reproduction of basic resources
State organisations shall finance the reproduction of basic funds according to the cost of:
(a) maintenance and routine repairs (Section 9);
(b) overhauls (Section 9),
(c) investment *),
(d) project work (Section 10);
(e) other investments (Section 11).
Financing of the reproduction of basic funds
(1) In order to finance the reproduction of basic funds, the financing plans for the reproduction of basic funds are the basis. The financing plan for the reproduction of basic funds by central authorities and regional national committees is part of the state budget and annual financial plans. * *)
(2) Maintenance and routine repairs, * * *) the organisational and preparatory work of the investor, the costs of completing the activities of higher suppliers and the activities of design engineering or engineering organisations shall be financed in economic cost-cutting organisations, for budget and special budget organisations from non-investment expenditure appropriations.
(3) The sources of financing for investments and general repairs, project documentation and other investments for economic organisations are:
(a) Recovery Fund †)
(b) sectoral construction fund †)
(c) funds for unlisted construction provided for in the financial plan †)
(d) loans † †)
(e) the State budget.
(4) The sources of financing for investments and general repairs, project documentation and other investments for budgetary organisations and specific budgetary organisations are:
(a) State budget
(b) additional resources. * *)
(5) The sources of financing for investments and general repairs, project documentation and other investments for the contribution organisations are own resources.
(6) Recovery of basic funds (Paragraph 9) may be financed from resources for the reproduction of basic funds and from other basic funds, where this is economically necessary and where recovery of the funds is ensured.
(7) The basis for determining the needs of the financing plan for the reproduction of basic funds shall be:
(a) the State Investment and General Repair Plan and the Project Work Plan; the volumes of other investments, maintenance and routine corrections determined by the budget and financial plans;
(b) the outcome of the selection procedure (Section 4).
(8) The reproduction of the investor's principal assets is financed by a branch of the bank in whose district the investor's registered office is located (the "financing branch").
(9) For the financing of the nominal construction, the financing branch shall open a separate account for the investor of the nominal construction, the balance of which shall be settled at the end of the year on the basis of the central budget.
(10) The funds of an economic organisation intended to finance professional, corporate and non-industrial construction and contributions from other organisations shall be concentrated on the separate investment accounts of that organisation.
(11) For investment loans, the financing branch opens credit accounts for the investor.
(12) In order to finance the unnamed construction of budgetary and special budgetary organisations managed by central or national committees, the financing branch shall open separate financing accounts for the central budget. Balances in these accounts shall be charged at the end of the year to the central budget.
(13) On the basis of the accounts referred to in paragraph 12, the budgetary and specific budgetary organisations shall also carry out small business and local investments, financed by additional resources, which shall be deposited in advance into a separate account with the Bank for these purposes.
Selection procedure
(1) For sectoral investments, the branch directorates (for economic organisations managed by national committees, the Regional National Committee) in cooperation with the Bank organise a selection procedure.
(2) The selection of newly launched events and the distribution of the volume of machinery not included in the budgets of the buildings of the type of sectoral investment shall be carried out unless the selection has been carried out in a different manner. *)
(3) From the volume of the branch construction, the branch headquarters will set aside part of the resources for the built-up buildings to the extent needed to meet the optimum construction deadlines, project documentation and other investments, or keep a reserve.
(4) For the remaining volume of sectoral investment (paragraph 2), the branch directorates shall, in cooperation with the bank, indicate in due time the conditions for the selection procedure.
(5) The selection procedure shall be carried out within the deadlines set by the timetable for drawing up the draft plans.
(6) In particular, the following documents shall be submitted to the Bank for the selection procedure:
(a) the economic part of the approved investment task, if any, the economic part and the budget for the initial project;
(b) the timetable for the implementation of the construction, if not drawn up, that is to say, proof of the construction period,
(c) for production investments, the calculation of gross and net income gains to be achieved by the investment in question and their use, or any other proof of the effectiveness of the investment;
(d) other supporting documents provided by the bank.
(7) In the selection procedure:
(a) exclude works which do not comply with the conditions laid down for the selection procedure;
(b) the order of construction (paragraph 2), which is applicable for the processing of project preparation and implementation, shall be established;
(c) the distribution of the volume of machinery not included in the budget of buildings of the nature of sectoral investments, which are normally assessed cumulatively for each organisation, shall be treated mutatis mutandis.
(8) Where the selection procedure has been carried out on the basis of the preparatory documentation, the branch directorate and the bank shall verify compliance with the preparatory documentation indicators in the project documentation and the necessary adjustments shall be made in case of non-compliance.
(9) In the selection procedure, the proportion
(a) own funds or loans for individual newly launched structures and machinery not included in the budget for the construction of sectoral investments based on the effect of individual actions;
(b) other sources.
Documentation for financing the reproduction of basic funds
(1) Central investors shall draw up an approved financing plan for the reproduction of basic funds to subordinate organisations.
(2) The investor submits to the financing branch of the bank, within the framework of the schedule of the plan or its changes to the economic organisations
(a) an investment construction plan with a nominal list of buildings;
(b) a plan for financing the reproduction of basic funds;
(c) the decision on the outcome of the selection procedure.
(3) The investor submits to the financing branch of the bank, within the framework of the schedule of the plan or its changes to the budgetary, special budget and contribution organisations
(a) an investment construction plan with a nominal list of buildings;
(b) the notification of the limits of the expenditure on reproduction of basic funds, certified by the superior authority.
(4) The investor submits to the further financing branch as a basis for financing
(a) for nominal buildings and for centrally assessed professional and non-listed buildings
(aa) approved budget for the initial (one-stage) project of the construction and gradually budgets for the implementation projects of individual buildings and operating files (or budgets for supply projects), unless the sale price is already set at the level of the initial project; for construction with documentation according to previously applicable regulations, approved budget for the procurement project,
(ab) approved construction schedule and economic contract for the entire duration of the construction;
(b) for other structures and, where appropriate, general repairs and machinery not included in the budget of the construction, the supporting documents listed under (a), exceptionally, where the bank so requests;
(c) for project documentation of the economic contract on project documentation for construction in cases where, pursuant to (a) and (b), the submission of documentation will be a condition for financing the construction.
(5) For the nominal construction of centrally assessed professional and non-listed buildings and structures assessed by central authorities, a permit to start works is a condition for starting financing for new buildings.
(6) The Bank shall reimburse the financing of the buildings and project documentation upon presentation of supporting documents which are a condition for funding, but not more than:
(a) for buildings financed under the budget for the initial project and budgets for the implementation projects, up to the sum of the budget prices of the buildings or operating files (according to the budget submitted for the implementation projects), while respecting the approved budgetary costs of the whole construction; for nominal buildings and selected branch and non-listed buildings, up to the amount of budgets for implementing projects of individual buildings, or according to budgets for supply projects,
(b) for buildings financed under the budget for the procurement project up to the budgetary costs of the construction or buildings (operating files),
(c) for project documentation up to the price specified in the contract where the submission of the contract is a condition of financing.
(7) Investors shall submit a copy of the take-over note to the Bank immediately upon receipt of the completed deliveries or parts thereof for nominal and branch buildings; *) for other buildings it shall submit this document only on request by the Bank.
(8) On completion of the nominal, sectoral and centrally assessed non-listed buildings, investors shall submit a technical economic evaluation of the construction to the Bank; for other buildings, it shall submit this document only on request by the Bank.
Financing of the reproduction of basic funds carried out under its own control
(1) Deliveries carried out by an investor in full or mainly by his own staff or, where appropriate, by his own assistance shall be regarded as reproduction of the basic funds under his own control.
(2) All costs associated with the preparation and execution of works and supplies under their own control are reimbursed by economic organisations until they are invoiced from overdraft or turnover accounts.
(3) Budget organisations and special budget organisations shall bear the costs of preparing and carrying out deliveries under their own control from the relevant non-investment items. On completion of the work or of the specified stage of construction, the corresponding amount shall be charged to budget revenue for the reproduction of basic appropriations at budgetary prices.
Procedure for stopping construction
(1) If, exceptionally, construction is stopped, they are paid from investment funds:
(a) completion work carried out under the construction budget;
(b) supplies of machinery and equipment carried out;
(c) security, preservation (or maintenance and decontamination) work according to a specific budget;
(d) the cost of the project documentation supplied or the part of the project that has been developed.
(2) Construction costs, *) which have been permanently discontinued and which cannot be used economically, will be deducted from the resources from which the construction was financed. Approval to be refused
(a) a superior body in the case of corporate and non-corporate construction,
(b) the head of the competent central authority in agreement with the Director-General of the Bank in the field of construction and in the non-centrally assessed unrated construction;
(c) governments in nominal construction;
(d) where the investors are the national committees or organisations subordinate to them, the approval of the Regional National Committee Board shall be required in the case referred to in (a), in the case referred to in (b), the approval of the Regional National Committee Board in agreement with the Bank's Director-General.
(3) The costs referred to in the preceding paragraph include installation costs and projects, even if the construction is not carried out at all.
(4) Property acquired from construction on which work has been permanently discontinued shall be treated as surplus national property. * *)
Recipes
The amounts of credits received in the current year and relating to deliveries made before 31 December of the previous year shall be paid by the Bank, with the exception of the conversion period, to the central budget for all the construction of budgetary organisations and special budget organisations, for the nominal construction of economic organisations and sectoral structures financed by the State budget.
Maintenance, routine and overhaul
(1) Recovery of the basic funds is mainly ensured by maintenance, by normal and general repairs (gradual renewal) or by reinvestment (final renewal - at the same time as disposal of the renewed base vehicle).
(2) Maintenance is common, regular treatment and care of basic resources.
(3) Common repairs (service, medium, etc.) are removed by partial wear, defects, functional or visual defects.
(4) A general correction removes the consequences of wear or damage to essential resources and restores and, if possible, increases their usefulness, such as performance and other technical characteristics. The general correction shall, as a general rule, be carried out on a single basic device.
(5) During the general repair of machines and equipment, more parts or essential components are exchanged or repaired. The replacement or repair of only individual parts of the machine or device is not a general repair.
(6) During the general repair of buildings and buildings, essential parts of buildings are restored.
(7) In general repair, where possible and economically justified, it is also necessary to modernise the basic resources, increasing their cost.
(8) General repair of machines can also be done by handing over the whole machine to repair in an exchange way.
(9) General corrections are not in particular:
(a) the arrangements for the creation of new basic means and the arrangements for the change of their existing functions and purpose in the case of basic devices, where this change is linked to structural changes; for buildings and buildings, it is considered to change the purpose of, for example, the conversion of the production of basic equipment (as a whole or essential parts thereof) into non-production and vice versa, as well as adjustments to increase the purchase price of the basic equipment (except in the cases referred to in paragraph 7),
(b) replacement of machinery, equipment, buildings or structures constituting a separate inventory item by another object;
(c) superstructures, superstructures, the setting-up of flats in soil and other premises and the complex reconstruction of basic equipment;
(d) the installation and improvement of the equipment of basic resources, not of modernisation carried out in the framework of general repairs referred to in paragraph 7).
The adjustments to the basic appropriations referred to in points (a) to (d) shall constitute investments.
(10) Repair of machinery and equipment with a cost of less than 1000 Ccs and repair of buildings with a cost of less than 5000 Ccs in a single operation shall not be considered as general repair. Such repairs are common repairs.
Project work
(1) Project documentation *) financed by investment funds includes the costs of completed and submitted project documentation for construction and general repairs, namely:
(a) initial, one-stage or, where appropriate, procurement projects;
(b) implementation projects;
(c) copyright.
(2) Other preparatory and project work is paid from non-investment funds: *)
(a) development studies of sector and sector construction;
(b) investment studies and investment tasks;
(c) territorial plans (including territorial technical documents and urban competitions),
(d) construction typing projects;
(e) projects for experimental verification under construction (experimental studies, projects and similar tasks);
(f) the development of technical economic indicators;
(g) projects for the management of land;
h) projects for exhibitions and fairs abroad,
(i) project contests;
(j) technical assistance provided by project organisations;
(k) export projects;
(l) other non-investment work (excluding multiprinting).
Other investments
(1) Other investments financed by means of investment include costs:
(a) for the transfer of land, buildings, buildings, machinery, equipment and inventory;
(b) investment construction and overhaul abroad from foreign tangible resources;
(c) museum items without regard to the purchase price;
(d) works of art and art without regard to the amount of the purchase price, except works forming part of buildings and buildings;
(e) compensation for land withdrawal for agricultural purposes for construction;
(f) the transfer (or purchase) of buildings of temporary construction sites.
General provisions
(1) The Bank is obliged to finance the reproduction of basic funds once the provisions of this Decree and the other obligations laid down as a condition for the implementation of the construction.
(2) The Bank shall, depending on the nature of the case, apply any of the following measures against organisations which infringe the provisions of this Decree and other obligations laid down as a condition for the implementation of construction:
(a) refuse to start financing new buildings;
b) interrupt financing of individual objects (operating files) or structures;
(c) it binds the use of state budget resources for the reproduction of basic funds;
(d) accelerate repayments of investment credits;
(e) refuse to grant new investment credits;
(f) raise interest rates on investment loans.
(3) Before applying the measures referred to in paragraph 2, the Bank shall inform the investor and the supplier, or their superior authorities, in advance.
(4) The central authorities shall, in agreement with the Ministry of Finance and the Central Bank, issue more detailed guidance, where necessary for their field of competence, on the definition of corrections to individual types of basic funds (Section 9) and on the implementation of the recovery in foreign basic funds (Section 3 (6)).
(5) The financing of the reproduction of basic funds of other socialist organisations (production and consumer cooperatives, social organisations, etc.) is regulated by agreement between the Bank's headquarters and the relevant central authorities in accordance with the Economic Code and the principles of this Decree.
Derogations and derogations
For serious reasons, the Ministry of Finance may allow exemptions and derogations from the provisions of Sections 1, 2, 3 (1) to (7), 8, 10, 11 of this Decree, from other provisions of the headquarters of the Czechoslovak State Bank.
Final provisions
They shall be deleted:
(a) Decree of the Ministry of Finance and the State Bank of Czechoslovakia No. 6 / 1964 Coll., on the financing, breakdown and control of reproduction of basic funds,
(b) Decree of the Administration-President of the State Planning Commission and Minister of Finance No. 46 / 1963 Coll., on rationalisation measures of an investment nature in state economic organisations,
(c) the Ministry of Finance Directive No 131 / 51 651 / 1960 on the completion premium published in the Ministry of Finance Bulletin No 15 / 1960.
This Decree shall take effect on 1 January 1966.
Minister of Finance:
Dvořák v. r.
Managing Director of the Czechoslovak State Bank:
Dr Pohl v. r.
*) Methodological Guidelines of the State Planning Commission for the Development of the National Economy Plan No. 55 / 65 Coll., and Guidelines for the Enhancement of Cities and Municipality with Civil Assistance (Action Z) issued by the Government Committee on Urban and Municipality Enhancement in the Collection of Instructions for National Committees No. 15- 16 / 1960.
* *) Details are provided by the Ministry of Finance's guidelines for drawing up draft state budget and financial plans.
* * *) For organisations where the maintenance fund (repair fund) is approved, from the sources of the fund.
†) The creation and use of the government decree on the planned management of the national economy No 90 / 1965 Coll.
† †) Decree of the Czechoslovak State Bank on the lending of socialist organizations and on interest No. 95 / 1965 Coll.
*) Methodological guidelines of the State Planning Commission for the elaboration of the National Economy Development Plan No. 55 / 1965 Coll.
*) § 292 of Economic Code No. 109 / 1964 Coll.
*) Decree No. 102 / 1958 of the Ministry of Finance of the Ú. l., on the accounting of economic, budgetary and other organisations.
* *) Decree of the Ministry of Finance on the Administration of National Property No. 94 / 1965 Coll.
*) Details are set out in the guidelines for drawing up the draft state budget and financial plans.
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Regulation Information
| Citation | Decree of the Ministry of Finance and the State Bank of Czechoslovak No. 92 / 1965 Coll., on the financing of the reproduction of basic funds |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 23.09.1965 |
|---|---|
| Effective from | 01.01.1966 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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