|
THE MINISTRY OF
FINANCE OF VIETNAM
-------
|
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------
|
|
No.:
41/2022/TT-BTC
|
Hanoi, July 05,
2022
|
CIRCULAR
GUIDELINES ON
ACCOUNTING FOR SOCIAL AND CHARITY ACTIVITIES
Pursuant to the Law on Accounting dated November
20, 2015;
Pursuant to the Government’s Decree No. 174/2016/ND-CP
dated December 30, 2016 providing guidelines for implementation of the Law on
Accounting;
Pursuant to the Government’s Decree No.
93/2019/ND-CP November 25, 2019 prescribing organization and operation of
social and charity funds;
Pursuant to the Government’s Decree No.
93/2021/ND-CP dated October 27, 2021 prescribing mobilization, receipt,
distribution and use of voluntary contributions for covering costs of natural
disaster, epidemic and incident recovery and supporting patients with fatal disease;
Pursuant to the Government’s Decree No.
87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and
organizational structure of the Ministry of Finance of Vietnam;
At the request of the Director of the Department
of Accounting and Auditing Regulations;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides guidelines on accounting for
social and charity activities performed by organizations, agencies and units,
and bookkeeping and preparation of reports on social and charity activities
performed by individuals in accordance with regulations of law, including:
1. Activities of social and
charity funds as prescribed in the Government’s Decree No. 93/2019/ND-CP dated
November 25, 2019.
2. Receipt, distribution and
use of voluntary contributions of domestic and foreign organizations, agencies,
units and individuals as prescribed in the Government’s Decree No.
93/2021/ND-CP dated October 27, 2021.
3. Accounting for receipt,
distribution and use of other voluntary contributions of domestic and foreign
organizations, agencies, units and individuals for the purposes of assisting
disadvantaged persons which is compulsory as prescribed by law shall comply
with the provisions of this Circular.
Article 2. Regulated entities
This Circular applies to:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
2. Canvassing boards of “For
the Poor” funds at all levels (including central, provincial, district and
commune levels).
3. Organizations, agencies,
units and individuals that canvass, receive, distribute and use voluntary
contributions for social and charity activities.
Article 3. Accounting rules and requirements for
social and charity activities
1. Accounting rules
Any organizations, agencies, units and individuals
involved in canvassing, receipt, distribution and use of voluntary contributions
for social and charity activities are required to open accounting books to
record all economic transactions, prepare reports and
disclose information in accordance with the provisions of this Circular and
relevant laws.
2. Accounting requirements
a) Organizations, agencies or units performing
social and charity activities for which accounting works are organized
separately from those for their canvassing, receipt, distribution and use of voluntary
contributions shall open accounting books to record all economic
transactions and prepare financial statements in an adequate and
transparent manner as prescribed in this Circular.
b) An organization, agency or unit that performs
social and charity activities on a part-time basis without organizing separate
accounting works for their canvassing, receipt, distribution and use of
voluntary contributions shall record all business operations on the same
accounting books in conformity with their applicable accounting policies. These
activities must be recorded in separate books in order to ensure that such
amounts are properly managed and used. They shall prepare annual or periodical
reports on revenues and expenses associated with their social and charity
activities in accordance with the provisions of this Circular; disclose data
and information in accordance with regulations of law, and provide separate
notes of data on social and charity activities in their
financial statements in a clear and transparent manner.
c) Individuals performing social and charity activities
who are required to open books to record all acts of receiving, distributing
and using voluntary contributions shall comply with the provisions of this
Circular; make reports and disclose information on their receipt, distribution
and use of such contributions in accordance with regulations of law.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
SPECIFIC PROVISIONS
Section 1. ORGANIZATIONS, AGENCIES OR UNITS
ORGANIZING SEPARATE ACCOUNTING FOR THEIR SOCIAL AND CHARITY ACTIVITIES (hereinafter referred to as “accounting units”)
Article 4. Accounting records
Accounting units may design their own accounting
records to reflect their economic transactions. Such
designed accounting records must have all of 7 contents specified in Article 16
of the Law on Accounting, and meet recording and management requirements of the
accounting unit.
With regard to payments made directly to
beneficiaries (in cash, in kind or goods), supporting documents for such
payments (or attached statements) must bear signatures of such beneficiaries
and certification of local competent authorities in accordance with regulations
of law in force.
Article 5. Accounts
1. Accounts regularly,
continuously and systematically reflect assets, funds and
debts payable; receipt and use of contributions received from organizations and
individuals, funding derived from state budget and other funding sources;
business performance and economic transactions of the
accounting unit.
2. Chart of accounts
a) Accounts on 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); shall be used for
reflecting and recording assets, debts, funds, revenues, expenses, and surplus
(or deficit) during the accounting period.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
c) In case a specific percentage of received contributions
is used for covering administrative expenses, or the report on receipt and use
of funding for administrative expenses is required by competent authorities,
the receipt, use and remaining amounts carried forward to the following year of
funding for administrative expenses shall be recorded both on the balance sheet
and off the balance sheet.
3. Application of chart of
accounts
a) Based on the chart of accounts enclosed
herewith, accounting units shall select accounts suitable for their operations
and financial mechanisms.
b) Accounts may be modified in the following cases:
- Subaccounts of accounts on
the chart of accounts (provided in Appendix 01 enclosed
herewith) may be created to meet management requirements of the accounting
unit.
- The addition of any account
of the same tier with that of an account on the chart of accounts (provided in
Appendix 01 enclosed herewith) shall be made with the written approval given by
the Ministry of Finance of Vietnam.
4. The chart of accounts,
contents, structure and methods for recording such accounts are provided in
Appendix 01 enclosed herewith.
Article 6. Accounting books
1. Accounting books shall be
intended for recording, systematizing and retaining all economic and financial
transactions already arising of accounting units. The management and retention
of accounting books shall comply with regulations of the Law on Accounting,
relevant legislative documents and the provisions of this Circular.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
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 adequate and correct contents, order and
method for 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, debts, revenues and expenses of an accounting
unit.
c) Forms of subsidiary accounting books and sheets:
Subsidiary accounting books/sheets are intended for
reflecting or recording transactions in detail 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
other reports (if any).
Based on management and bookkeeping requirements
for each accounting subject, accounting units are allowed to create more
detailed items (columns/lines) on their subsidiary accounting books to serve
their preparation of financial statements, final statements and other reports
as well as their management requirements.
3. Responsibility of bookkeepers
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
b) Economic/financial transactions must be recorded
in the accounting books in chronological order. Information and data recorded
in an accounting book of the following year must continue those on the
accounting book of the preceding year, and have their continuity from the
opening to closing of the book ensured.
c) Accounting books must be strictly managed; The
persons responsible for keeping and recording accounting books must be
identified. The bookkeeper is responsible for the contents of the accounting
book while he/she is assigned to keep and record such accounting book. When a new bookkeeper is assigned, the chief accountant or accountant in charge shall arrange handover of responsibility
between the former bookkeeper and the new one. The former bookkeeper shall take
responsibility for the period over which he/she kept and recorded the
accounting book, and the new bookkeeper shall take responsibility from the date
of responsibility handover. The handover record must bear certification and
signature of the chief accountant or accountant in charge.
4. Opening accounting books
a) Rules for opening accounting books
An accounting book must be opened at the opening of
the annual accounting period or as soon as practicable after receiving the
establishment decision and starting official operations of the accounting unit.
The accounting book shall be opened at the beginning of the fiscal year to
transfer balance from the accounting book of the preceding year, and record all
economic/financial transactions arising in the new fiscal year from January 01.
Accounting units may open subsidiary accounting books to serve their management
requirements.
b) Manual opening of accounting books:
The accounting unit is required to complete legal
procedures for an accounting book as follows:
- For an accounting book bound
in book form:
Cover’s left corner must bear accounting unit's
name; cover's middle must bear the book’s name, dates of opening and closing
the book, full name and signature of the person opening the book, chief
accountant or accountant in charge and head of the accounting unit, date of
closing or transferring the book to another person.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
+ The accounting book shall be not be considered
lawful until all of above conditions are met.
- For an accounting book in
separate sheet form:
+ Cover’s page must bear accounting unit’s name,
page number, book’s name, month of use, and full name of the bookkeeper.
+ Separate-sheet book must bear certification and
signature of the accounting unit’s head, and be registered before being used.
+ Separate-sheet book must be arranged in the order
of accounts and kept in a safe and easily seen place.
c) Electronic accounting books:
The electronic accounting book must contain
adequate elements of an accounting book as prescribed by the Law on Accounting.
If the accounting book is kept in electronic devices, the general accounting
book must be also printed and bound, and all procedures in Point b Clause 4 of
this Article must be completed.
If the remaining accounting books are not printed
but kept in electronic devices, the head of accounting unit must ensure that
data must be safe, secured and accessible during their retention period.
5. Recording accounting books
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
b) In case the accounting book is recorded
manually, indelible ink must be used, no red ink shall be
permitted (unless used to record adjustments). Recording procedures and
forms of accounting books prescribed in Appendix 01 must be followed. When a
page is fully written up, the sum of figures on such page shall be found and
recorded at the beginning of the following page; no interlineations on the top
or bottom of a page shall be permitted. Blank space or
pages shall be crossed out. No erasures and corrections with chemicals shall be
permitted.
6. Closing accounting books
a) Closing accounting book means the calculation of
total number of debits and total number of credits, and ending balance of each
account or total revenue, expenses, unused funds, received, dispatched and
stocked goods.
b) Cash fund book must be closed at the end of each
day in which transactions are made. After closing the cash fund book,
verification procedures are required to ensure the accuracy and matching
between the accountant’s cash book, cashier’s cash book and vault cash. A cash
count sheet must be prepared within the last day of each month
and shall be kept together with the cash accounting book which is prepared in
the same.
c) Monitoring book of deposits at banks/treasuries must be closed at the end of each month for the
purpose of verifying deposit balances with the bank/treasury; deposit
verification forms (bearing certification given by the relevant bank/treasury)
shall be monthly kept together with the monitoring book of deposits at banks/treasuries.
d) Accounting books must be closed at the end of
the annual accounting period before financial statements are prepared.
Accounting books shall be also closed in case of unscheduled stocktaking or in
other cases as prescribed by law.
7. Retaining accounting books
and other accounting documents: The provisions of the Law on Accounting and its
guiding documents shall apply.
8. The list of accounting
books, accounting book forms and guidelines for preparing accounting books are
provided in Appendix 01 enclosed herewith.
Article 7. Financial statements
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Organizations, agencies and units that organize
separate accounting for their social and charity activities shall be required
to prepare financial statements in accordance with regulations of law.
2. Purposes of financial
statements
The financial statements shall be intended for
providing information on financial status, performance of financial activities,
and cash flows of the accounting unit, and prepared in a manner that facilitate
comparison with financial statements of previous periods and those of other
units. Information provided in the financial statement is helpful to increase
the accounting unit’s accountability and transparency of information on its
receipt and use of donations/contributions and other resources under its
management in accordance with regulations of law.
3. Reporting period
Financial statements shall be prepared at the end
of each annual accounting period as prescribed in the Law on Accounting.
4. If an accounting unit has
different affiliated units, the consolidated financial statements shall be
prepared, include its figures and all financial information of its affiliated
units and exclude all figures arising from internal transactions made between
the accounting unit and its subordinate units, or between subordinate units.
5. Deadline for submission of
financial statements
Annual financial statements of accounting units
must be submitted to competent authorities within 90 days from the end of the
annual accounting period as prescribed by law.
6. Disclosure of financial
statements
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Organizations and units that canvass, receive,
distribute and use voluntary contributions shall also disclose other
information as prescribed in the Government’s Decree No. 93/2021/ND-CP dated
October 27, 2021.
b) Disclosure deadline: Annual financial statements
must be disclosed within 30 days from the date of submission as prescribed in
the Law on Accounting.
7. List of reports, report
forms and description of reporting methods is provided in Appendix 01 enclosed
herewith.
Section 2. ORGANIZATIONS, AGENCIES OR UNITS THAT
DO NOT ORGANIZE SEPARATE ACCOUNTING FOR THEIR SOCIAL AND CHARITY ACTIVITIES
Article 8. Opening accounting books
1. An organization, agency or
unit (hereinafter referred to as “accounting unit”) that performs canvassing,
receipt, distribution and use of voluntary contributions for their social and
charity activities without organizing separate accounting works for these
activities shall record all business operations on the same accounting books in
conformity with their applicable accounting policies; open separate books for
recording revenues and expenses on these activities, including amounts
received, distributed and used for social and charity activities, in a transparent
and clear manner that abides by regulations of law.
2. Regarding contributions
in cash
a) All contributions shall be
recorded upon receipt and sorted by donors. An accounting
unit is required to open an account at a bank or treasury for receiving,
distributing and using received contributions for performing social and charity
activities. This account must be separated from those accounts for other
activities. Construction, repair, maintenance or restoration of buildings using
received voluntary contributions must comply with regulations of relevant laws
in force.
b) Information on distribution and use of
contributions for performing social and charity activities must be adequately
recorded in accounting books, including payment time, payment decision, payment
content, names and addresses of beneficiaries. Additionally:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
- Cash payments for purchase
of goods, articles, or supplies, etc., and payments for construction and repair
of buildings must be supported by valid and lawful invoices or receipts as
prescribed by law. When donating goods or other in-kind contributions directly
to beneficiaries, statements bearing signatures of such beneficiaries and
certification of local competent authorities are required.
3. Regarding contributions in
kind
In-kind contributions must be safely managed and
promptly distributed to addresses of beneficiaries. All received contributions
in kind must be recorded; the distribution of these in-kind contributions must
be supported by statements or documents bearing signatures of beneficiaries and
certification of local competent authorities as prescribed by law. In-kind
contributions whose values cannot be determined shall be recorded in subsidiary
accounting books in order to serve reporting.
Article 9. Reporting and data disclosure
1. On an annual basis or upon
completion of a canvassing period, a report on revenues and expenses associated
with social and charity activities shall be prepared using the form in Appendix
02 enclosed herewith, and submitted to relevant agencies/units in accordance
with the provisions of the Government’s Decree No. 93/2021/ND-CP dated October
27, 2021 and relevant legislative documents (if any).
2. The accounting unit must
provide detailed notes of revenues and expenses during the year, opening
balance and ending balance of contributions for social and charity activities
in its annual financial statements as prescribed.
3. All information concerning
the canvassing, receipt, distribution and use of voluntary contributions shall
be disclosed in accordance with the Law on Accounting, the provisions of the
Government’s Decree No. 93/2021/ND-CP dated October 27, 2021, and relevant
legislative documents (if any).
Section 3. RECORDING AND REPORTING BY
INDIVIDUALS PERFORMING SOCIAL AND CHARITY ACTIVITIES
Article 10. Recording books
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
1. They must open books for
recording voluntary contributions received, distributed and used for social and
charity activities in an accurate, truthful, open and transparent manner.
2. Recording is required as
soon as every contribution is canvassed, received and distributed for
performing social and charity activities. The recording book shall contain
entries made continuously in chronological order and adequately reflect
information to meet data disclosure requirements. When a page is fully written
up, the sum of figures on such page shall be found and recorded at the
beginning of the following page; no interlineations on the top or bottom of a
page shall be permitted. Blank space or pages shall be crossed out. No erasures
and corrections on the book shall be permitted.
3. Upon completion of the
canvassing, receipt and distribution of contributions for social and charity
activities, the recording book shall be closed, and total revenues, total
expenses and unused amounts of contributions shall be calculated in order to
make reports and disclose information as prescribed by law. With regard to
contributions received and used through a deposit account opened at a bank,
verification with the bank where such deposit account is opened shall be
carried out on a monthly basis and upon completion of the canvassing period. Verification
forms or deposit statements provided by the bank must be retained and disclosed
upon completion of the canvassing period.
4. Recording of contributions
for social and charity activities:
a) Regarding contributions in cash:
- The canvassing individual
shall open a separate bank account for receiving contributions for social and
charity activities which cannot be received through his/her personal bank
account.
- Regarding contributions in cash: The canvassing individual shall be responsible for safe
management of received contributions. Unused amounts of contributions may be
deposited to his/her bank account for social and charity activities.
- Regarding contributions
received in foreign currencies for performing domestic social and charity
activities: The canvassing individual shall sell received foreign currencies to
commercial banks and manage and use the proceeds from the sale of such foreign
currencies in VND for performing canvassing social and charity activities as
prescribed.
- Deposit interests remaining
after deduction of payment fees shall be recorded as increases in received
contributions.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
A general recording book of
contributions in cash shall be opened using the
form No. S01CN/XH-TT in Appendix 03 enclosed herewith for recording all
contributions in cash upon actual receipt of the contribution, including
particulars of donors (such as name, address, etc.), contribution amounts,
contribution methods, including contributions through bank account or made
directly in cash (sorted by VND and foreign currencies), receipt date (i.e. the
date of the bank’s credit note, in case of contributions made through the bank
account), addresses of beneficiaries (if designated by
donors), and any other necessary information.
b) Regarding contributions in kind:
- The receipt of in-kind
contributions shall depend on the canvassing individual’s warehousing, storage
and transport conditions.
- The canvassing individual
shall ensure safe management and prompt distribution of received contributions
in kind to beneficiaries.
- A general recording book of
contributions in kind shall be opened using the form No. S02CN/XH-TT in
Appendix 03 enclosed herewith for recording all in-kind contributions received,
including date of receipt, name and address of donor, types of contributions in
kind, quantity, and addresses of designated beneficiaries (if any).
5. Recording of voluntary
contributions distributed and used for social and charity activities
A general recording book of distributed
contributions shall be opened using the form No. S03CN/XH-TT in Appendix 03
enclosed herewith for recording all contributions distributed, including
distribution date, names and addresses of beneficiaries, distribution methods,
either in cash or in kind (specific goods or articles must be specified) or
through construction or repair of buildings, and must bear signatures of
beneficiaries. Certification of local competent authorities may be given
directly on this book or as a separate document, if required.
Cash payments for purchase of goods, articles, or
supplies, etc., and payments for construction and repair of buildings must be
supported by valid and lawful invoices or receipts as prescribed by law.
6. In addition to the general
record books prescribed in Appendix 03 enclosed herewith, other books may be
opened for recording if deemed necessary.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Upon completion of the canvassing, receipt,
distribution and use of voluntary contributions for social and charity
activities, reports on revenues and expenses associated with such
voluntary contributions shall be prepared and relevant information shall
be disclosed in accordance with the provisions of the Government’s Decree No.
93/2021/ND-CP dated October 27, 2021, and relevant legislative documents (if
any).
Such reports shall be made using the form No.
B08CN/XH-TT in Appendix 03 enclosed herewith.
Article 12. Document retention
Individuals that perform canvassing, receipt,
distribution and use of voluntary contributions for social and charity
activities shall keep all documents prescribed in Article 10 and Article 11 of
this Circular, and other relevant documents in order to serve the information
disclosure as prescribed by law.
Chapter III
ACCOUNTING INSPECTION
Article 13. Accounting inspection
1. All organizations, agencies
and units that canvass, receive, distribute and use voluntary contributions for
social and charity activities shall bear the inspection of their adherence to
regulations on accounting works of competent authorities as prescribed in the
Law on Accounting.
2. Contents of inspection:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
b) The inspection of organizations, agencies and
units that perform social and charity activities on a part-time basis without
organizing separate accounting works for their canvassing, receipt,
distribution and use of voluntary contributions shall include the inspection of
their opening of subsidiary accounting books for recording their canvassing,
receipt, distribution and use of voluntary contributions for social and charity
activities according to their applicable accounting policies, their reporting
and information disclosure as prescribed by law.
Chapter IV
IMPLEMENTATION
Article 14. Effect
1. This Circular comes into
force from September 01, 2022.
2. The Circular No.
103/2018/TT-BTC dated November 14, 2018 of the Ministry of Finance of Vietnam
shall cease to have effect from January 01, 2023.
3. If any legislative
documents referred to in this Circular are amended or superseded, the new ones
shall apply.
Article 15. Transition
1. Organizations, agencies or
units that organize separate accounting works for their canvassing, receipt,
distribution and use of voluntary contributions for performing social and
charity activities shall continue applying their applicable accounting policies
until the end of the fiscal year of 2022. From the fiscal year of 2023, they
are required to open new accounting books and abide by the provisions of this
Circular.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
3. When canvassing, receiving,
distributing and using voluntary contributions for performing social and
charity activities, organizations, agencies, units and individuals other than
those specified in Clauses 1 and 2 of this Article shall abide by the
provisions of this Circular from the date on which it comes into force.
Article 16. Implementation organization
1. Ministries,
central-government regulatory authorities, and provincial People's Committees
shall direct units, organizations and individuals that perform canvassing,
receipt, distribution and use of voluntary contributions for social and charity
activities under their jurisdiction or management to comply with the provisions
of this Circular.
2. The Directors of the
Department of Accounting and Auditing Regulations, the Department of Public
Expenditure, and the Department of State Budget, Chief of the Ministerial
Office, and heads of relevant units affiliated to the Ministry of Finance of
Vietnam shall disseminate, instruct, inspect and implement this Circular.
PP. MINISTER
DEPUTY MINISTER
Ta Anh Tuan