Circular 79/2019/TT-BTC accounting regime applicable to project management boards using public investment capital

CIRCULAR

Guiding the accounting regime applicable to project management boards using public investment capital

Pursuant to the Accounting Law dated November 20, 2015;

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

Pursuant to Decree No. 59/2015/ND-CP dated June 18, 2015, of the Government on the management of construction investment projects;

Pursuant to Decree No. 174/2016/ND-CP dated December 30, 2016, of the Government detailing and guiding the implementation of several articles of the Accounting Law;

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

Pursuant to Decree No. 42/2017/ND-CP dated April 5, 2017, of the Government amending and supplementing several articles of Decree No. 59/2015/ND-CP dated June 18, 2015, of the Government on the management of construction investment projects;

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017, of the Government defining the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Accounting and Auditing Regulations;

The Minister of Finance promulgates the Circular guiding the accounting regime applicable to project management boards using public investment capital.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This circular stipulates accounting documents, book-keeping accounts, accounting books, financial statements, and settlement reports applicable to project management boards using public investment capital (hereinafter referred to as units) to record and account for economic transactions arising from project management activities and other activities as assigned by competent authorities to the investor or project management unit according to regulations.

Article 2. Subjects of application

1. Subjects of application:

a) Specialized project management units and regional project management units established by the Minister, heads of ministerial-level agencies, Chairpersons of provincial- and district-level People's Committees, and investment construction project management units in accordance with current regulations on project management (excluding project management units that are member organizations of enterprises);

b) Project management units established by the investor to manage investment projects funded by lawful revenue sources of state agencies or public non-business units.

2. In cases where the investor is an administrative or non-business unit that does not establish a separate project management unit, accounting shall be carried out on the same accounting system as guided by the administrative and non-business accounting regime promulgated under Circular 107/2017/TT-BTC dated October 10, 2017, of the Ministry of Finance. In case of necessity, the unit may use the relevant accounts and guidance issued in this Circular to account for amounts related to investment project management.

Chapter II

SPECIFIC PROVISIONS

Article 3. Regulations on the Accounting Document System

1. Accounting documents are papers and information carriers reflecting economic and financial transactions that have occurred and been completed, serving as a basis for recording in accounting books.

2. Units must uniformly use mandatory accounting document templates according to the guidance in this Circular. During implementation, units are not allowed to modify the prescribed accounting document templates.

3. Pre-printed document templates must be carefully preserved and not damaged or deteriorated. Checks, cash receipts, and valuable papers must be managed like cash.

4. The list, templates, and explanations of methods for creating mandatory accounting documents are specified in Appendix No. 01 "Mandatory Accounting Document System" attached to this Circular. For economic transactions not yet covered by accounting documents in Appendix No. 01, units shall create accounting documents that meet at least the seven contents stipulated in Article 16 of the 2015 Accounting Law.

Article 4. Regulations on Book-keeping accounts

1. Book-keeping accounts continuously and systematically reflect the situation of assets, receipt, and use of funding sources at the unit; monitor revenues, expenses, operating results, and other amounts at the unit.

2. Classification of the book-keeping account system and accounting requirements:

 a) On-balance-sheet accounts include accounts from category 1 to category 9, which are double-entry accounts (recording offset entries between accounts). On-balance-sheet accounts are used for financial accounting, applicable to all project management units, reflecting the financial situation (referred to as financial accounting), reflecting the financial situation of public assets, debts, capital sources, revenue, expenses, surplus (deficit) of the unit during the accounting period.

 b) Off-balance-sheet accounts (category 0) are single-entry accounts (no offset entries between accounts). For off-balance-sheet accounts related to the state budget (accounts 004, 006, 008, 009, 012, 013, 018), they must be accounted for according to the state budget classification by fiscal year (previous year, current year, next year) and other management requirements (if any). Off-balance-sheet accounts related to deducted and retained fees (account 014) to monitor expenditures using this source must be accounted for and refect according to the state budget classification and other management requirements (if any).

 c) For an economic transaction related to receiving and using state budget funding, foreign aid, loans, deducted and retained fees, the accounting must be done both on-balance-sheet and off-balance-sheet according to regulations.

3. Application of the book-keeping account system:

 a) Units shall base on the book-keeping account system issued in this Circular to apply suitable book-keeping accounts to their activities.

 b) Units may add detailed accounts in the following cases:

 - Adding detailed accounts for accounts specified in the book-keeping account system (Appendix No. 02 attached to this Circular) to serve the unit's management requirements.

 - Adding accounts at the same level as those specified in the book-keeping account system (Appendix No. 02 attached to this Circular) with written approval from the Ministry of Finance.

4. The list of the book-keeping account system, principles, structure, content, and methods of recording main economic activities of unit accounts are specified in Appendix No. 02 "Book-keeping account System" issued with this Circular.

Article 5. Regulations on Accounting Books

1. Units must open accounting books to record, systematize, and store all economic and financial transactions that have occurred within the unit. The preservation and storage of accounting books shall be carried out in accordance with the provisions of the accounting law, relevant documents, and the regulations specified in this Circular.

2. In cases where units receive and use state budget funds, foreign aid, or foreign loans, they must open accounting books to monitor the receipt of budget estimates and the use of state budget funds in detail by fiscal year, state budget classification, and other management requirements to serve the preparation of settlement reports with the state budget and related units. If the unit is allowed to use deducted and retained fees, it must open accounting books to monitor the detailed use of funds according to the state budget classification and other management requirements to serve the preparation of settlement reports with the competent authority.

3. Types of accounting books:

a) Each accounting unit shall use only one accounting book system for a fiscal year, including general accounting books and detailed accounting books.

 Depending on the accounting form applied by the unit, the unit must open all necessary general accounting books, detailed accounting books, and fully implement the contents, sequence, and methods of recording for each accounting book template.

b) General accounting book templates:

- The Journal is used to record economic and financial transactions in chronological order. If necessary, units may combine chronological recording with categorizing and systematizing economic and financial transactions by economic content. Data in the Journal reflect the total economic and financial activities arising in an accounting period.

- The Ledger is used to record economic and financial transactions by economic content (by book-keeping account). In the Ledger, units combine chronological recording with economic content of economic and financial transactions. Data in the Ledger reflect the summary of assets, funding sources, and the use of funds.

c) Detailed accounting book templates:

 Detailed accounting books and cards are used to record specific economic and financial transactions related to accounting subjects that are not fully detailed in the Ledger. Data in the detailed accounting books provide specific information for internal management of the unit and for calculating and preparing indicators in financial statements and state budget settlement reports.

 Pursuant to the management and accounting requirements of each specific accounting subject, units are allowed to add more details to the indicators in the detailed accounting books and cards to serve the preparation of financial statements and settlement reports according to management requirements.

4. Other regulations on the responsibilities of bookkeepers, opening accounting books, recording in accounting books, closing books, and correcting accounting books shall follow the regulations in the administrative and non-business accounting regime issued under Circular 107/2017/TT-BTC dated October 10, 2017, of the Ministry of Finance.

5. The list, templates, explanations of content, and methods for creating accounting books are specified in Appendix No. 03 "Accounting Book System" issued with this Circular.

Article 6. Settlement Reports

1. In cases where units receive state budget support for project management activities, budget allocations to support other activities under the unit's management (excluding basic construction investment allocations), or receive and use foreign loans and aid for regular activities (excluding foreign loans and aid for basic construction investment projects), they must prepare settlement reports on the receipt and use of state budget funds, foreign loans, and aid according to the regulations of this Circular.

2. If units are allocated budget estimates from deducted and retained fees for unit activities by the competent authority, they must prepare settlement reports on the receipt and use of these deducted and retained fees according to the regulations of this Circular.

3. If during the year the unit implements recommendations from audits, inspections, or financial agencies for activities under the unit's management, they must prepare a report on the implementation of these recommendations according to the regulations of this Circular. Do not aggregate data into the report templates according to this Circular for audit and inspection recommendations for projects using state budget investment capital, which have been reported according to the templates specified in Circular No. 85/2017/TT-BTC dated August 15, 2017, of the Ministry of Finance, regulating the settlement of state budget investment capital usage annually and related documents.

4. Reporting period: Settlement reports are prepared annually according to the fiscal year. If the law requires additional settlement reports for other accounting periods, the unit must prepare both the annual settlement report and the reports for those additional accounting periods.

5. The deadline for submitting annual settlement reports for units using state budget shall follow the regulations in Article 4 of Circular 137/2017/TT-BTC dated December 25, 2017, of the Ministry of Finance on the approval, evaluation, announcement, and summarization of annual settlements, and any related guiding and amending documents.

6. The list, report templates, report recipients, report submission methods, and explanations of the methods for preparing settlement reports are specified in Appendix No. 04 "Settlement Report System" attached to this Circular.

Article 7. Financial Statements

Units must close their books and prepare financial statements after the end of the fiscal year to submit to competent authorities and related units according to regulations.

1. Financial statements provide information on the financial situation, financial performance, and cash flows from the unit's activities.

2. Financial statement information helps enhance the unit's accountability for receiving and using financial resources according to the law, and serves as the basis for consolidating financial statements of superior units.

3. Principles and requirements for preparing financial statements

 a) Principles:

 Financial statements must be prepared based on accounting data after closing the books. Financial statements must be prepared in accordance with the principles, contents, and methods stipulated, and must be consistently presented across accounting periods. If financial statements are presented differently between accounting periods, the reasons must be clearly explained.

 Financial statements must be signed by the preparer, the chief accountant, and the head of the accounting unit. The signatories are responsible for the content of the financial statements.

b) Requirements:

Financial statements must reflect the content and value of the reported items truthfully and objectively; they should be presented according to the prescribed templates regarding the financial situation, financial performance, and cash flows from all activities arising during the year.

Financial statements must be prepared timely, within the prescribed time for the unit, and presented clearly, understandably, and accurately with accounting information and data.

Information and data in the reports must be continuous, with the data of the current period succeeding the data of the previous period.

4. Preparation and submission deadline for financial statements:

Units must prepare financial statements at the end of the fiscal year as stipulated by the Accounting Law.

Annual financial statements of the unit must be submitted to competent state agencies (details on report recipients are in Appendix No. 05 - Financial Report System attached to this Circular) or superior units within 90 days from the end of the fiscal year as stipulated by law.

5. Public disclosure of financial statements:

Financial statements must be publicly disclosed in accordance with the law on accounting and related documents.

6. Units are not required to prepare the "Supplementary Financial Information Report" (Form No. B01/BSTT) as stipulated in Circular No. 99/2018/TT-BTC dated November 1, 2018, of the Ministry of Finance, which guides the preparation of consolidated financial statements of state accounting units that are superior accounting units.

7. The list, report templates, report recipients, report submission methods, and explanations of the methods for preparing financial statements are specified in Appendix No. 05 "Financial Report System" attached to this Circular.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 8. Effect

1. This Circular takes effect from January 1, 2020, and applies to the 2020 fiscal year onwards.

2. This Circular replaces all provisions of Chapter II, Part II on "Guidance on accounting applicable to investment owner units in administrative and non-business units" in Circular No. 195/2012/TT-BTC dated November 15, 2012, of the Minister of Finance guiding accounting applicable to investment owner units.

3. In case the documents referenced in this Circular are amended, the units shall comply with the new regulations.

Article 9. Organization of implementation

1. Ministries, sectors, and People's Committees of provinces and centrally-run cities shall direct and implement this Circular to investment owner units and project management units under their management or supervision.

2. The Director of the Department of Accounting and Auditing Regulations; the Director of the Investment Department; the Director of the Department of Public Expenditure; the Director of the State Budget Department; Chief of the Ministerial Office; and the heads of related units under the Ministry of Finance shall disseminate, guide, inspect and implement this Circular./.