Circular 102/2018/TT-BTC guiding accounting regimes applicable to social security agencies

CIRCULAR

Guiding accounting regimes applicable to social security agencies

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

Pursuant to the Law on Social Insurance dated November 20, 2014;

Pursuant to the Law on Health Insurance dated November 14, 2008, the amended and supplemented Law dated June 13, 2014;

Pursuant to the Government's Decree No. 174/2016/ND-CP dated December 20, 2016, detailing and guiding the implementation of a number of articles of Law on Accounting;

Pursuant to the Government's Decree No. 146/2018/ND-CP dated October 17, 2018, detailing and guiding measures to implement a number of articles of Law on Health Insurance;

Pursuant to the Government's Decree No. 115/2015/ND-CP dated November 11, 2015, detailing a number of articles of Law on Social Insurance regarding compulsory social insurance;

Pursuant to the Government's Decree No. 134/2015/ND-CP dated December 29, 2015, detailing a number of articles of Law on Social Insurance regarding voluntary social insurance;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated July 20, 2017, defining the functions, tasks, powers, and organizational structure of the Ministry of Finance;

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

The Minister of Finance promulgates the Circular guiding accounting regimes applicable to social security agencies.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular regulates accounting documents, book-keeping accounts, accounting books, financial statements, and insurance fund operation reports applicable to the units specified in Article 2 of this Circular for accounting arising economic operations related to social insurance, health insurance, unemployment insurance activities, and other activities of social security agencies (hereinafter referred to as social insurance activities).

2. The contents not guided in this Circular shall comply with the accounting regimes applicable to non-business units issued together with the Ministry of Finance’s Circular No. 107/2017/TT-BTC dated October 10, 2017, guiding on accounting regimes applicable to non-business units (hereinafter referred to as Circular No. 107/2017/TT-BTC) and documents amending, supplementing and replacing Circular No. 107/2017/TT-BTC.

Article 2. Subjects of application

This Circular applies to social insurance agencies, including:

1. Vietnam Social Security, Vietnam Social Security Office, affiliated non-business units, and Projects Management Boards under Vietnam Social Security;

2. Social Security Offices of provinces or centrally run cities (hereinafter referred to as Provincial Social Security Offices);

3. Social Security Offices of districts, rural districts, towns, and provincial cities (hereinafter referred to as District Social Security Offices).

Chapter II

SPECIFIC REGULATIONS

‎‎          Article 3. Regulations on the system of accounting documents

1. In addition to accounting documents issued under Circular No. 107/2017/TT-BTC, this Circular provide additionally 30 accounting documents applied for social security agencies.

2. The list, forms, explanation of contents, and methods of making 30 additional accounting documents in Clause 1 of this Article are specified in Appendix No. 01 "Vietnam Social Insurance Accounting Documents System" issued together with this Circular.

‎‎Article 4. Regulations on the system of book-keeping accounts

1. In addition to the book-keeping accounts (accounts) issued under Circular No. 107/2017/TT-BTC, this Circular provides additional guidance on 15 level-1 accounts applied for social security agencies as follows:

a) Account 135 - Advance to the state budget: This account is used for Vietnam Social Security to reflect receivables and the payment of receivables of Vietnam Social Security to the State Budget for the advance amount paid for the beneficiaries of the insurance regime from the state budget, medical examination and treatment expenses covered by health insurance funds of military, police and people granted with health insurance cards by the social security agencies under the Ministry of National Defense and the People's Public Security’s social security agencies, and cipher workers working at ministries, branches and localities in case of exceeding the medical examination and treatment fund that are expenses outside the scope of the benefit level.

b) Account 139- Receivables from the insured: This account reflects the receivables and the situation of payment of receivables in terms of types of insurance, interest on late payment of insurance; receivables for incorrect payments of insurance regimes of the insured; and insurance receivables from the insurance of military personnel, police, and other insurance receivables.

c) Account 142- Receivables from insurance fund payment operations: This account is used for Vietnam Social Security, Provincial Social Security Office, and District Social Security Office to reflect the relationship of receivables from the insurance fund operations between the superior social security agency and the lower social security agency or vice versa regarding insurance operations.

d) Account 145- Receivables from fund investment activities: This account reflects receivables from fund investment activities, such as financial investment interest; dividends, distributed profits, and other receivables.

dd) Account 175- Spending for insurance of the province or district: This account is used by the Provincial and District Social Security Offices to reflect the amount of insurance expenditures from the insurance fund and the State Budget for the insured.

e) Account 335- Temporary collection of insurance of all types, late payment interest: This account is used by the Provincial and District Social Security Offices to reflect the temporary collection amounts of insurance of all types, late payment interest, and other temporary collection amounts (if any) arising at the social security agency.

g) Account 339- Payables of insurance funds: This account reflects payables between the Provincial or District Social Security Offices and organizations and individuals in charge of paying insurance premiums of all types.

h) Account 342- Payables for insurance fund payment operations: This account is used for Vietnam Social Security, Provincial Social Security Office, and District Social Security Office to reflect the payable relationship of the insurance fund operations between the superior social security agency and the lower social security agency or vice versa regarding insurance operations.

i) Account 343- Payment Payments for insurance expenses for non-industry units: This account is used by the Provincial Social Security Office, and District Social Security Office to reflect payments with payment representatives; employers; medical examination and treatment establishments; vocational institutions; schools; agencies, and other payables.

k) Account 346 - Funds allocated to subordinates: This account is only opened in superior unit to monitor the status of funds allocated to subordinates with separate accounting departments in cash or kind. Subordinates when receiving funds allocated by superior units shall not reflect in this account but in relevant accounts according to contents of each funding allocated by the superior units.

l) Account 375- Revenue of insurance of all types of the province and district: This account is used by the Provincial and District Social Security Office to reflect the revenue of all types of insurance and the late payment interest of all types of insurance in the province and district.

m) Account 422 - Risk provision fund in financial investment activities: This account is used in Vietnam Social Security to reflect the setting aside and use of the Risk Provision Fund in financial investment activities of social insurance.

n) Account 475- Insurance fund: This account is only used in Vietnam Social Security to reflect the setting aside and use of insurance funds, including social insurance fund; health insurance fund; and unemployment insurance fund.

o) Account 575 - Revenue of insurance of all types: This account is only used by the Vietnam Social Security to reflect and summarize the revenue of insurances implemented nationwide.

p) Account 675- Expenditures from the insurance fund: This account is used in Vietnam Social Security to reflect the actual spending amount for pension and social insurance allowances for subjects covered by the social insurance fund; health insurance; unemployment insurance and social insurance expenditures covered by the state budget nationwide.

2. The list of book-keeping accounts, principles, content structure, and methods of accounting for the number of major economic activities of additional accounts mentioned in Clause 1 of this Article are provided in Appendix 02 "Vietnam Social Security Book-Keeping Account System" issued together with this Circular.

Additional guidance on a number of relevant economic operations is stipulated in Appendix 05 "Additional guidance on a number of economic operations" issued together with this Circular.

Article 5. Regulations on the accounting book system

1. In addition to the accounting books issued under Circular No. 107/2017/TT-BTC, this Circular additionally provides 16 detailed accounting books applicable to social security agencies.

2. The list and forms of 16 additional accounting books in Clause 1 of this Article are specified in Appendix No. 03 "Vietnam Social Security Accounting Book System" issued together with this Circular.

‎‎Article 6. Regulations on the financial reporting system, finalization reports on internal financial activities of the Vietnam Social Security System

The accounting units under the Vietnam Social Security System must prepare financial statements and finalization reports for their internal financial activities in accordance with Circular No. 107/2017/TT-BTC.

The superior accounting units in the Vietnam Social Security System must prepare general financial statements in accordance with Circular No. 99/2018/TT-BTC dated November 1, 2018, of the Ministry of Finance, guiding the preparation of general financial statements of the state accounting unit as the superior accounting units and amendments and supplements (if any).

If the competent authority regulates the preparation of other reports related to the internal financial activities of the units, the other units shall make these reports at the request of the competent authority.

‎‎ ‎‎Article 7. Regulations on the system of financial statements of insurance funds and insurance fund operation reports

1. Financial statement of insurance fund

a) Subjects of reporting

- The accounting units under the Vietnam Social Security System must prepare the financial statements of the insurance fund in accordance with this Circular.

- The superior accounting units under the Vietnam Social Security System with affiliated units (Vietnam Social Security, Provincial Social Security Offices) must synthesize the financial statements of the insurance fund from the affiliated units in accordance with this Circular.

In order to synthesize data from subordinates, the superior accounting unit must make a summary table of the indicators for the insurance fund's financial statements (Form B01/BTH-QBH, specified in Appendix 04) that combine the corresponding targets on the insurance fund's financial statements of the direct subordinate accounting units within the scope of preparing the general insurance fund's financial statements. Simultaneously, the superior accounting unit must determine the internal transactions of the insurance fund's activities to exclude when synthesizing. Vietnam Social Security is responsible for guiding internal transactions that must be excluded when summarizing the financial statements of the superior units for insurance fund activities.

The summary table of financial statement indicators of the insurance fund (Form B01/BTH-QBH) is stored at the making unit as same as the accounting book.

b) Purpose of the financial statements of the insurance fund

The financial statement of the insurance fund of the accounting unit is used to provide financial information on the operation of the social insurance, health insurance and unemployment insurance funds (in addition to the internal financial activities specified in Article 6 of this Circular) that the state assigns to the social security agency to manage in order to provide for relevant people to review and make decisions on the operation of these funds.

The financial statement of the insurance fund of the accounting unit is used as a basis for summarizing the financial statement of the insurance fund of the direct superior accounting unit.

The financial statements of the general insurance fund prepared by Vietnam Social Security are simultaneously used to provide information to the State Treasury to prepare the state financial statements in accordance with regulations.

c) Deadline for submission of financial statements of the insurance fund

The deadline for submission of financial statements of the insurance fund shall be regulated by Vietnam Social Security, ensuring the time for compiling data for the state financial statements and reporting to relevant agencies and units according to regulations.

d) Disclosure of the financial statements of the insurance fund

The financial statements of the insurance fund shall be publicized in accordance with the accounting law, the laws on social insurance funds, health insurance funds, unemployment insurance funds and other relevant documents.

dd) The list, forms, explanation of contents and methods of preparation of the financial reporting system of the insurance fund are specified in Appendix 04 "System of financial statements, insurance fund operation reports managed by the Vietnam Social Security System" issued together with this Circular.

2. Insurance fund operation report

a) The list and forms of the insurance fund operation reports are specified in Appendix 04 "System of financial statements, insurance fund operation reports managed by Vietnam Social Security System" issued together with this Circular.

b) Explain the content, method and terms of preparing an insurance fund operation report shall be guided by Vietnam Social Security in compliant with the requirements for management and reporting to the competent authority;

c) In addition to the reports specified in this regime, units in the Vietnam Social Security System must also prepare other reports at the request of competent agencies (if any). Other data reporting requirements among units within the social security system shall be guided by Vietnam Social Security in accordance with management requirements.

Chapter III

IMPLEMENTATION ORGANIZATION

‎‎Article 8. Effect

1. This Circular takes effect from January 1, 2019.

2. This Circular replaces Circular No. 178/2012/TT-BTC dated October 23, 2012, of the Minister of Finance, guiding on accounting regimes applicable to social security agencies.

Article 9. Implementation organizations

1. The Director of the Department of Accounting and Auditing Regulations; the Director of the Department of Public Expenditure; the General Director of Vietnam Social Security and heads of relevant units shall implement, guide, and inspect the implementation of this Circular.

2. The General Director of Vietnam Social Security is responsible for regulating and guiding lower-level social security agencies on the content and method of recording the accounting books of the insurance fund; the content and method of preparing the insurance fund operation report according to the forms prescribed in this Circular./.

* All Appendices are not translated herein.