Decree No. 25/2017/ND-CP dated March 14, 2017 of the Government on state financial reports

DECREE

On state financial reports[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to Clause 5, Article 30 of the November 20, 2015 Law on Accounting;

Pursuant to the June 25, 2015 Law on the State Budget;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on state financial reports.

Chapter I

GENERAL PROVISIONS

Article1.Scope of regulation

This Decree prescribes contents of state financial reports; compilation and disclosure of state financial reports; and responsibility of agencies, units and localities to provide information for compilation of state financial reports.

Article2.Subjects of application

1. Units tasked to compile state financial reports and agencies, units and organizations tasked to provide information for compilation of state financial reports, including:

a/ The Ministry of Finance;

b/ State treasuries at all levels;

c/ State budget management, collection and payment agencies at all levels;

d/ State property and capital management agencies at all levels;

dd/ State budget-funded agencies and organizations;

e/ Agencies and organizations managing non-budget state financial funds;

g/ Public non-business units.

2. Users of state financial reports.

Article3.Interpretation of terms

1. Financial information provision report means a report of an agency, a unit or an organization prescribed in Clause 1, Article 16, 17, or 18 of this Decree, which is made according to the form issued by the Ministry of Finance to provide financial information of that agency, unit or organization and its subordinate units (if any) serving the compilation of a state financial report.

2. District financial information summary report means a report made by a district-level state treasury, which reflects all information on state finance originated from the state budget or managed by the State in the entire urban or rural district, or town or provincial city (below collectively referred to as district) serving the compilation of a state financial report.

Article 4. Scope of coverage of state financial reports

1. State financial reports shall be compiled for the whole country (below referred to as national state financial reports) and for provinces and centrally run cities (below referred to as provincial state financial reports).

2. A national state financial report reflects all information on state finance originated from the state budget or managed by the State nationwide.

3. A provincial state financial report reflects all information on state finance originated from the state budget or managed by the State within a province or centrally run city (below referred to as province).

Chapter II

CONTENTS OF STATE FINANCIAL REPORTS

Article 5. Reports on state finance

1. A report on state finance is a general financial report which reflects all information on property; payables; and funds of the State nationwide or within a province at the closing time of the reporting period.

2. Contents of a report on state finance:

a/ State property:

State property includes all property assigned by the State to the units prescribed in Clause 1, Article 2 of this Decree for possession, management and use in accordance with regulations: cash and cash equivalents; receivables; inventory goods; financial investment; granted loans; tangible fixed assets; unfinished capital construction; intangible fixed assets; and other property.

b/ Payables of the State:

Payables of the State include debts of the Government, debts of local administrations and other amounts payable by the units prescribed in Clause 1, Article 2 of this Decree.

c/ Funds of the State:

Funds of the State include funds for forming property; accumulative surplus (or deficit) of financial operations and other funds.

3. The forms of reports on national and provincial state finance situations are provided in Appendix I to this Decree.

Article6.Reports on state financial operation results

1. A report on state financial operation results is a general financial report which reflects revenues, expenditures and results of financial operations of the State nationwide or within a province in the reporting period.

2. Contents of a report on state financial operation results:

a/ Revenues of the State:

Revenues of the State include state budget revenues (tax revenues; charge and fee revenues; crude oil and natural gas revenues; revenues from the State’s capital contributions and investments; revenues from non-refundable aid and other revenues) and non-state budget revenues arising in the reporting period of the units prescribed in Clause 1, Article 2 of this Decree.

b/ Expenditures of the State:

Expenditures of the State include expenditures paid by the state budget (wage and remuneration expenditures and other expenditures for humans; expenditures for goods and services; wear and tear costs; support and additional expenditures; loan interest costs and loan-related charges and fees and other expenditures) and non-state budget expenditures arising in the reporting period of the units prescribed in Clause 1, Article 2 of this Decree.

c/ State financial operation results:

The result of financial operations of the State is the difference between the revenues and expenditures of the State in the reporting period, which reflects the surplus (revenues higher than expenditures) or deficit (revenues lower than expenditures) of financial operations of the State.

3. The forms of reports on national and provincial state financial operation results are provided in Appendix II to this Decree.

Article 7.Cash flow reports

1. A cash flow report is a general financial report which reflects the cash flow, including flows of cash collected from and paid for major activities, investment activities and financial activities in the reporting period; the balance of cash and cash equivalents of the State at the closing time of the reporting period nationwide or within a province.

2. Contents of a cash flow report:

a/ Cash flow from major activities of the State:

The cash flow from major activities of the State is the flow of cash arising from regular activities of the State rather than investment or financial activities.

b/ Cash flow from investment activities of the State:

The cash flow from investment activities of the State is the flow of cash arising from the procurement, construction, liquidation and sale of long-term property and other investment activities outside cash equivalents of the State.

c/ Cash flow from financial activities of the State:

The cash flow from financial activities of the State is the flow of cash arising from the borrowing and repayment of loans and other financial activities of the State.

3. The forms of national and provincial cash flow reports are provided in Appendix III to this Decree.

Article8.State financial report explanations

1. State financial report explanations are made to explain and add information on the state finance, state financial operation results and state cash flow in the reporting period nationwide or within a province.

2. Contents of state financial report explanations:

State financial report explanations cover general information on the socio-economic situation and applicable accounting bases and policy; additional information on and analysis of the state finance, state financial operation results and state cash flow; and explanations of the material differences in information between state financial reports and final state budget accounts.

3. The forms of national and provincial state financial report explanations are provided in Appendix IV to this Decree.

Chapter III

COMPILATION AND DISCLOSURE OF STATE FINANCIAL REPORTS

Article 9.Rights and responsibilities of units compiling state financial reports

1. The State Treasury shall assist the Ministry of Finance in compiling national state financial reports for submission to the Government for further reporting to the National Assembly.

2. Provincial-level State treasuries shall compile provincial state financial reports under the direction of the State Treasury and submit them to provincial-level People’s Committees for reporting to provincial-level People’s Councils and sending to the State Treasury for compiling national state financial reports.

3. State treasuries at all levels shall publicize a list of agencies, units and organizations that fail to fully and promptly provide information to state treasuries at all levels as prescribed in Articles 16, 17 and 18 of this Decree, and suspend the allocation of state budget funds for these agencies, units and organizations, except those for payment of wages, allowances, social allowances, scholarships and a number of other urgent expenditures as prescribed by the Ministry of Finance. The fund allocation and payment may resume only when the agencies, units and organizations have fully complied with regulations.

Article 10.Process of compiling and sending district financial information summary reports

1. District-level state treasuries shall compile and send reports according to the following process:

a/ To receive, examine and classify information of financial information provision reports of the units prescribed in Clause 1, Article 16 of this Decree;

b/ To coordinate with the units prescribed in Clause 1, Article 16 of this Decree in finalizing information provision reports;

c/ To summarize reported information and process repetitive information;

d/ To compile district financial information summary reports according to the prescribed form;

dd/ To send district financial information summary reports to provincial-level state treasuries for compiling provincial state financial reports and concurrently to People’s Committees and finance agencies at the same level for information.

2. The deadline for compiling and sending district financial information summary reports is before June 30 of the following fiscal year.

Article 11.Process of compiling and sending provincial state financial reports

1. Provincial-level state treasuries shall compile and send reports according to the following process:

a/ To receive, examine and classify information of district financial information summary reports prescribed at Point dd, Clause 1, Article 10 of this Decree and financial information provision reports of the units prescribed in Clause 1, Article 17 of this Decree;

b/ To coordinate with provincial-level Finance Departments and other units prescribed in Clause 1, Article 17 of this Decree in finalizing financial information provision reports;

c/ To summarize reported information and process repetitive information;

d/ To compile provincial state financial reports according to the set form;

dd/ To send reports to provincial-level state treasuries for compiling national state financial reports and concurrently to provincial-level People’s Committees for reporting to provincial-level People’s Councils.

2. The deadline for compiling and sending provincial state financial reports is before October 1 of the following fiscal year.

3. Provincial-level People’s Committees shall report before provincial-level People’s Councils within 12 months after the end of the fiscal year.

Article 12.Process of compiling national state financial reports

1. The State Treasury shall compile and send national state financial reports according to the following process:

a/ To receive, examine and classify information of provincial state financial reports prescribed at Point dd, Clause 1, Article 11 of this Decree and financial information provision reports of the units prescribed in Clause 1, Article 18 of this Decree;

b/ To coordinate with the units prescribed in Clause 1, Article 18 of this Decree in finalizing reported information;

c/ To summarize reported information and process repetitive information;

d/ To compile national state financial reports according to the prescribed form;

2. The Ministry of Finance shall submit national state financial reports within 14 months after the end of the fiscal year.

3. The Government shall report to the National Assembly within 18 months after the end of the fiscal year.

Article 13.Reporting period of state financial reports

National and provincial state financial reports shall be made according to the annual accounting period starting on January 1 and ending on December 31 of the calendar year.

Article 14.Disclosure of state financial reports

1. Contents to be disclosed:

a/ Provincial-level People’s Committees shall disclose information of provincial state financial reports, including the state property situation; debts of local administrations and other payables of the State; funds of the State; revenues, expenditures and financial operation results of the State; the state cash flow within their provinces; except for detailed statistics in the fields of national defense, security and national reserves;

b/ The Ministry of Finance shall disclose information of national state financial reports, including the state property; public debts and other payables of the State; funds of the State; revenues, expenditures and financial operation results of the State; the state cash flow nationwide; except for detailed statistics in the fields of national defense, security and national reserves.

2. Forms of disclosure:

State financial reports shall be disclosed in one or some of the following forms: publication distribution, posting up and publishing on e-portals and other forms as prescribed by law.

3. Disclosure deadlines:

a/ Provincial-level People’s Committees shall disclose provincial state financial reports within 30 days after these reports are presented before provincial-level People’s Councils;

b/ The Ministry of Finance shall disclose national state financial reports within 30 days after these reports are presented before the National Assembly.

Article 15.Establishment and management of state financial report database and storage of state financial reports

1. The State Treasury under the Ministry of Finance shall organize the establishment, management, operation and maintenance of the state financial report database in a secure, appropriate and effective manner.

2. The State Treasury shall organize the preservation and storage of state financial reports in the form of paper or e-data in accordance with law.

3. State financial reports shall be stored forever.

Chapter IV

RESPONSIBILITIES OF AGENCIES AND UNITS FOR PROVISION OF INFORMATION FOR COMPILING STATE FINANCIAL REPORTS

Article 16.Responsibilities of agencies and units providing information for compiling district financial information summary reports

1. District-level state budget management, collection and payment agencies; and district- and commune-level state property and fund management agencies shall compile and send their financial information provision reports to district-level state treasuries.

Level-I budget-estimating units of the district level shall summarize financial information of their units and their subordinate units under the Ministry of Finance’s guidance for compiling and sending financial information provision reports to district-level state treasuries.

2. The units prescribed in Clause 1 of this Article shall take responsibility for the accuracy of, and explain and finalize, these reports at the request of district-level state treasuries.

3. The deadline for compiling and sending financial information provision reports is before April 30 of the following fiscal year.

4. The Ministry of Finance shall provide the form and guide the process of summarizing, compiling and sending the report prescribed in Clause 1 of this Article.

Article 17.Responsibilities of agencies and units providing information for compiling provincial state financial reports

1. Provincial-level state budget management, collection and payment agencies; and provincial-level state property and fund management agencies shall compile financial information provision reports of their own or of units under their management and send them to provincial-level state treasuries.

Level-I budget-estimating units of the provincial level shall summarize financial information of their own and of their subordinate units under the Ministry of Finance’s guidance for compiling financial information provision reports and sending to provincial-level state treasuries.

2. The units prescribed in Clause 1 of this Article shall take responsibility for the accuracy of, and explain and finalize, these reports at the request of provincial-level state treasuries.

3. The deadline for compiling and sending financial information provision reports is before June 30 of the following fiscal year.

4. The Ministry of Finance shall provide the form and guide the process of summarizing, compiling and sending the report prescribed in Clause 1 of this Article.

Article 18.Responsibilities of agencies and units providing information for compiling national state financial reports

1. Central state budget management, collection and payment agencies; and central state property and fund management agencies shall compile financial provision reports of their own or of units under their management and send them to the State Treasury.

Level-I budget-estimating units of the central level shall summarize financial information of their own and of their subordinate units under the Ministry of Finance’s guidance for compiling and sending financial information provision reports to the State Treasury.

2. The units prescribed in Clause 1 of this Article shall take responsibility for the accuracy of, and explain and finalize, these reports at the request of the State Treasury.

3. The deadline for compiling and sending financial information provision reports is before October 1 of the following fiscal year.

4. The Ministry of Finance shall provide the form and guide the process of summarizing, compiling and sending the report prescribed in Clause 1 of this Article.

Chapter V

IMPLEMENTATION PROVISIONS

Article 19.Effect

1. This Decree takes effect on January 1, 2018.

2. The first state financial report shall be compiled based on financial statistics of 2018.

Article 20.Organization of implementation

1. The Ministry of Finance shall guide specific contents of state financial reports and a number of articles as prescribed in this Decree and examine and urge the compilation of state financial reports.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall organize the implementation of this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

*All appendices to this Decree are not translated.