CIRCULAR

ACCOUNTING INSTRUCTIONS FOR PUBLIC INVESTMENT PROJECT MANAGEMENT BOARDS

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Government’s Decree No. 59/2015/ND-CP dated June 18, 2015 on Construction Project Management;

Pursuant to the Government’s Decree No. 174/2016/ND-CP dated December 30, 2016 on elaboration of some Articles of the Law on Accounting;

Pursuant to the Government’s Decree No.25/2017/ND-CP dated March 14, 2017 on state financial statements;

Pursuant to the Government’s Decree No. 42/2017/ND-CP dated April 05, 2017 on amendments to the Government’s Decree No. 59/2015/ND-CP dated June 18, 2015 on Construction Project Management;

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At the request of the Director of Accounting and Audit Management and Supervision Department;

The Minister of Finance hereby promulgates the Circular providing accounting instructions for public investment project management boards.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular shall set out regulations on accounting vouchers, chart of accounts, accounting books, financial statements and budget statements used by public investment project management boards (hereinafter referred to as “accounting units”) for recording economic transactions related to the management of investment projects and other activities performed by project owners and project management boards as assigned by competent authorities.

Article 2. Regulated entities

1. This Circular applies to:

a) Specialized or regional project management boards that are established by Ministers, heads of ministerial agencies or Chairpersons of provincial- or district-level People’s Committees and single-project management boards as defined in existing regulations on construction project management (except project management boards which are members of enterprises);

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2. In case the project owner is a public service unit that does not establish a separate project management board, accounting works shall be done using the accounting books of that public service unit according to accounting instructions for public service units in the Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance. Where necessary, accounts and relevant instructions herein may be also used for recording transactions related to the management of investment project.

Chapter II

SPECIFIC PROVISIONS

Article 3. Accounting vouchers

1. Accounting vouchers are documents and storage devices that contain economic/financial transactions that occur and have been completed and shall be used as the basis for making accounting books.

2. Accounting units are required to use same forms of compulsory accounting vouchers as prescribed herein. Accounting units are not allowed to modify the prescribed forms of accounting vouchers during the performance of accounting works.

3. Printed accounting vouchers must be carefully stored and protected from damage or rot. Cheques, receipts and financial instruments must be managed as if cash.

4. The list, forms and methods of making compulsory accounting vouchers are provided in the Appendix 01 “The system of compulsory accounting vouchers" enclosed herewith. With regard to economic transactions for which accounting vouchers are not available in Appendix 01, accounting units shall themselves make accounting vouchers which must contain at least 07 contents of an accounting voucher prescribed in Article 16 of the Law on Accounting 2015.

Article 4. Accounts

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2. Chart of accounts and bookkeeping requirements:

a) Accounts in the balance sheet include accounts of type 1 to 9, and apply double-entry bookkeeping (i.e. every entry shall be recorded in both sides of an account). Accounts in the balance sheet are used to record financial transactions (also called as financial accounting) and shall be applied by all project management boards to reflect their assets, debts, funds, revenues, expenditures, and surplus (or deficit) during the accounting period.

b) Off-balance accounts (accounts of type 0) shall apply single-entry bookkeeping (i.e. every entry shall only be recorded in one side of an account). Off-balance accounts related to state budget (accounts 004, 006, 008, 009, 012, 013, 018) must be recorded according to state budget entries by years (previous year, current year and following year) and other management requirements (if any). Off-balance accounts used to record deducted or retained amounts (account 014) and manage expenditures covered by this funding source must be recorded and reflected according to state budget entries and other management requirements (if any).

c) If an economic transaction is related to the receipt and use of funding derived from state budget, foreign aids or loans, deducted or retained amounts, it must be recorded using both accounts in the balance sheet and off-balance sheet accounts as regulated.

3. Application of chart of accounts:

a) Accounting units shall refer to the Chart of accounts enclosed herewith and select accounts suitable for their operations.

b) Accounts may be modified in the following cases:

- Subaccounts of accounts on the chart of accounts in Appendix 02 enclosed herewith may be created to meet accounting units’ management requirements.

- The addition of any account of the same tier with that of an account on the chart of accounts (provided in Appendix 02) enclosed herewith requires the written approval from the Ministry of Finance.

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Article 5. Accounting books

1. Accounting books shall be intended for recording, systematizing and storing all economic/financial transactions already arising of accounting units. The management and retention of accounting books shall abide by regulations of the Law on Accounting, relevant legislative documents and this Circular.

2. If an accounting unit receives and uses funds derived from state budget, foreign aids or loans, it must open accounting books for monitoring such receipt and use of funds for each budget year in conformity with state budget entries and other management requirements so as to serve the preparation of budget statements with state budget units and relevant units. An accounting unit that uses deducted or retained amounts must open accounting books for monitoring the use of such funds in conformity with state budget entries and other management requirements so as to serve the preparation of budget statements with competent authorities.

3. Types of accounting books:

a) Each accounting unit shall use only one accounting book system for an annual accounting period, including general accounting book and subsidiary accounting books.

Depending on its applied accounting method, the accounting unit shall create both general accounting book and subsidiary accounting books, and ensure full and correct contents, order and method of recording of each accounting book form.

b) Form of general accounting book:

- Journals are intended for recording economic/financial transactions in chronological order. An accounting unit may, where necessary, record economic/financial transactions in chronological order and classify or systematize them according to economic contents. Data on a journal reflects all economic/financial transactions that arise during an accounting period.

- Ledger is intended for recording economic/financial transactions according to economic contents (or accounts). An accounting unit may record economic/financial transactions on the ledger in chronological order and according to economic contents. Data on the ledger reflects assets, funds and the use of such funds.

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Subsidiary accounting books/sheets are intended for recording in detail the economic transactions that arise related to accounting subjects and are not yet included in the ledger in order to meet management requirements. Data on subsidiary accounting books is the specific information serving the performance of internal management tasks of an accounting unit as well as the computation and creation of items of its financial statements and budget statements.

Based on management and bookkeeping requirements for each accounting subject, accounting units are allowed to create more detailed items on their subsidiary accounting books/sheets to serve their preparation of financial statements and budget statements as well as their management.

4. Other regulations on responsibility of book keepers and book makers, opening, recording, closing and modification of accounting books shall conform to the Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance.

5. The lists, forms, notes to contents and methods of making accounting books are provided in the Appendix 03 “Accounting book system” enclosed herewith.

Article 6. Budget statements

1. If an accounting unit is provided with funding from state budget for covering project management costs and/or costs of other activities (except funding for capital construction activities), receives and uses foreign aids or loans to cover its recurrent costs (except foreign aids and loans used for capital construction projects/works), it must make budget statements recording the receipt and use of funding from state budget, foreign loans and aids in accordance with regulations herein.

2. If an accounting unit’s estimate includes amounts deducted or retained to serve its operations as assigned by a competent authority, it shall make budget statement recording the receipt and use of such deducted or retained amounts in accordance with regulations herein.

3. If an accounting unit has implemented requests of auditors, inspectors or finance authorities for activities that it manages in an accounting year, it shall make reports on implementation results thereof in accordance with regulations herein. Reports made according to the form in this Circular shall not include data about the results of implementation of requests of auditors or inspectors for projects using funding derived from state budget which have been reported using the report form provided in the Circular No. 85/2017/TT-BTC dated August 15, 2017 of the Ministry of Finance and relevant legislative documents.

4. Reporting period: Budget statements shall be made for each annual accounting period. In addition to annual budget statements, budget statements for other accounting periods shall be made if required by law.

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6. The list, report forms, receiving authorities, submission methods and notes to methods for making budget statements are provided in the Appendix 04 “The system of budget statements" enclosed herewith.

Article 7. Financial statements

Accounting units must close their accounting books at the end of the annual accounting period and make financial statements which shall be sent to competent authorities and relevant units as regulated.

1. Financial statements shall be intended for providing information about financial status, business performance and cash flow of an accounting unit.

2. Information provided in the financial statements is helpful to increase the accountability of the accounting unit for the receipt and use of financial resources in accordance with law regulations and used as the basis for preparation of consolidated financial statements by superior accounting units.

3. Rules and requirements concerning the preparation of financial statements

a) Rules:

Financial statements must be prepared based on data obtained after accounting books are closed. Financial statements must be made correctly in terms of contents, method, and consistency between accounting periods; any difference in presentation of financial statements of different accounting periods must be explained;

Financial statements shall bear the signatures of the preparer, the chief accountant, and the legal representative of the accounting unit. The signatory of a financial statement must take responsibility for its contents.

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Financial statements must reflect contents and values of reporting items in a truthful and objective manner; items about financial status, business performance and cash flow arising during the year of the accounting unit must be represented according to the prescribed forms.

Financial statements must be prepared in a timely manner and contain accounting information and data recorded in a clear, understandable and accurate manner.

Reporting information and data must be continuously recorded; the data of a period must continue that of the previous period.

4. Reporting period and time limits for submission of financial statements:

Financial statements must be prepared at the end of each annual accounting period as regulated in the Law on Accounting.

The annual financial statement of an accounting unit shall be submitted to the competent authority (more details about receiving authorities are provided in Appendix 05 – System of financial statements enclosed herewith) or its superior accounting unit within 90 days from the end of the annual accounting period as prescribed by law.

5. Publishing of financial statements:

Financial statements must be published in accordance with regulations of the Law on Accounting and relevant legislative documents.

6. Accounting units are not required to prepare “Reports on additional financial information” (Form B01/BSTT) as prescribed in the Circular No. 99/2018/TT-BTC dated November 01, 2018 of the Ministry of Finance.

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Chapter III

IMPLEMENTATION

Article 8. Effect

1. This Circular comes into force from January 01, 2020 and applies in the fiscal year 2020 afterwards.

2. This Circular supersedes all provisions in Chapter II, Part II “Accounting instructions for main investors of public service units” of the Circular No. 195/2012/TT-BTC dated November 15, 2012 of the Minister of Finance.

3. Any documents referred to in Circular are amended or supplemented, the new ones shall prevail.

Article 9. Implementation organization

1. Ministries and provincial-level People's Committees shall instruct and disseminate this Circular to main investors and project management boards under their authority or management.

2. Directors of Accounting and Audit Management and Supervision Department, Investment Department, Department of Public Expenditure, State Budget Department, Chief of the Ministry’s Office and heads of relevant units affiliated to the Ministry of Finance shall disseminate, instruct, inspect and implement this Circular./.

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PP. MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

Thông tư 79/2019/TT-BTC về hướng dẫn Chế đỗ kế toán áp dụng cho ban quản lý dự án sử dụng vốn đầu tư công do Bộ trưởng Bộ Tài chính ban hành