Circular 78/2020/TT-BTC guidance on accounting for civil judgment enforcement

CIRCULAR

Guidance on accounting for civil judgment enforcement

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

Pursuant to the Law on Enforcement of Civil Judgments dated November 28, 2008;

Pursuant to the Law Amending and Supplementing a Number of Articles of the Law on Enforcement of Civil Judgments dated November 25, 2014;

Pursuant to Government’s Decree No.174/2016/ND-CP dated December 30, 2016 on detailing a number of articles of the Law on Accounting;     

Pursuant to the Government’s Decree No. 62/2015/ND-CP dated July 18, 2015 amending and supplementing a number articles of the Law on Enforcement of Civil Judgments;

Pursuant to the Government’s Decree No. 33/2020/ND-CP dated March 17, 2020 amending and supplementing a number articles of the Government’s Decree No. 62/2015/ND-CP dated July 18, 2015 amending and supplementing a number articles of the Law on Enforcement of Civil Judgments;

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

Pursuant to the request of the Director General of Department of Accounting and Auditing Regulations;

The Minister of Finance promulgates the Circular regarding guidance on accounting for civil judgment enforcement.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulations

This Circular regulates accounting documents, book-keeping accounts, accounting books, financial statements, report on civil judgment enforcement operations and other related contents applicable to the units specified in Article 2 of this Circular to accounting arising operations related to civil judgment enforcement, including:

1. Money and assets generated during the enforcement of civil judgments pursuant to each judgment enforcement decision;

2. Management situation of money, assets, and material evidence;

3.The internal and external payment situation of Civil judgment enforcement agencies and other activities assigned to civil judgment enforcement accountants as regulated.

Article 2. Subjects of application

This Circular applies to units including:

1. The General Department of Civil Judgment Enforcement under the Ministry of Justice;

2. Department of Civil Judgment Enforcement in provinces and centrally-run cities (herein referred as provincial-level Department of Civil Judgment Enforcement);

3. Division of Civil Judgment Enforcement in districts, town and provincial cities (herein referred as district-level Division of Civil Judgment Enforcement);

4. Other organizations, individuals related to accounting for civil judgment enforcement.

Article 3. Currency unit in accounting for civil judgment enforcement

1. In accounting for civil judgment enforcement, Vietnamese Dong shall be used as the currency to record accounting books. In case of revenues and expenditures in foreign currency, the books must be recorded in the original currency and converted into Vietnamese Dong according to the accounted ratio.

2. For gold, silver, and gemstones, when buying in, selling out for temporary custody or paying to involved parties, the quantity, weight, and conversion into money according to the accounting unit price must be monitored. The details of quantity, weight, grade and value of gold, silver and gemstones must be monitored according to each judgment enforcement decision.

3. In case payment must be made in foreign currency or gold, silver or gemstones, based on civil judgment enforcement decision, the payment shall be made in foreign currency or gold, silver or gemstones. In case one of the parties requests payment by methods other than those specified in the judgment enforcement decision, such methods shall be directly agreed upon by the parties on the basis of the quantity stated in the judgment enforcement decision.

4. The accounting price on the basis of the value of assets and material evidences seized shall be self-decided by the Head of the Civil Judgment Enforcement Agency, the Executor or Accountant based on the tariff promulgated by the People's Committee of the province or centrally-run city or the market price at the time of recording. In case the accounting price cannot be determined, it shall be accounted according to the conventional price.

The accounting price is allowed to be rounded and used during the enforcement of each specific judgment enforcement decision but may not be used as a basis for auction, exchange or payment in foreign currency, gold, silver, gemstones and other property or as a basis for collecting fees. In case there are grounds for determining the accounting price (increase or decrease), the unit must additionally record (increase or decrease) the accounting price for the difference from the previously recorded figures.

5. In cases where gold, silver, gemstones, foreign currency or other property which are impounded material evidences of pending cases are preserved in sealed bags or bales deposited at the State Treasury or kept in the custody warehouse of the civil judgment enforcement agency without determining the equivalent value, the calculation shall be made at the conventional price for bookkeeping on an account off-balance sheet.

6. Accounting in kind using the official units of measurement of the State of Vietnam (such as pieces, pcs, kg, boxes, bottles, meters). In case of necessity, sub-units of measurement can be used to check, compare or serve detailed accounting but then must be converted into official units of measurement.

Article 4. Accounting period

1. Annual accounting period: 12 months in full according to the calendar year, starting from October 1 of the previous year to September 30 of the following year.

2. Quarterly accounting period: from the first day of the first month of the quarter to the last day of the last month of the quarter.

3. Monthly accounting period: from the 1^st day to the last day of the month.

Article 5. Asset inventory

1. Civil enforcement agencies must periodically and irregularly conduct inventory to determine the amount of funds contained in the inventory, assets and material evidences stored in the warehouse to ensure that they match the figures recorded in the accounting books at the time of inventory. In case the inventory results have discrepancies with the accounting books, they must examine, review, find the causes and report to competent authorities to handle such discrepancies, if they are missing, material responsibility must be taken. Based on the opinion on handling the difference in inventory results, the accountant adjusts the accounting book to ensure that the figures on the accounting book matches the actual figures.

2. Periodic inventory: Conducted periodically at the end of the quarter and at the end of the accounting year before making reports on civil judgment enforcement.

3. Irregular inventory: Each institutional unit must conduct an irregular inventory in case of natural disasters, fires, handovers, mergers, consolidations, divisions, separations of units, other abnormal incidents and according to decisions of competent state agencies.

Article 6. Accounting check

Civil judgment enforcement agencies shall be subject to periodic accounting inspections by superior civil judgment enforcement agencies and competent state agencies in accordance with law.

Contents of accounting examination shall comply with the provisions of accounting law. Heads and accountants of civil judgment enforcement agencies must abide by financial and accounting examination decisions of competent state agencies in accordance with law.

Article 7. Accounting tasks in civil judgment enforcement

1. Accounting tasks at Department and Division of Civil Judgment Enforcement

a) Collecting and processing accounting information and data of civil judgment enforcement activities and the management of money, assets and material evidences during the judgment enforcement of each unit. Opening accounting books, recording economic and financial transactions arisen must comply with regulations.

b) Inspecting and supervising the revenues of objects; payments and reimbursements to objects; state budget payments; the situation of fund input and output, the management of impounded assets and material evidences during the judgment enforcement; detecting and preventing violations of the law on finance and accounting in civil judgment enforcement.

c) Monitoring, supervising and managing revenues from judgment enforcement made by prisons.

d) Monthly, quarterly and annually comparing details of revenues - expenditures, input - output of money and assets between the accounting books and each judgment enforcement dossier of the Executor (if any) in order to take measures to promptly handle and eliminate the backlog or discrepancies arising in accordance with the provisions of the law on accounting, finance and civil judgment enforcement. For completed judgement enforcement dossier, they must be collated before approving and putting them into storage.

dd) Preparing and submitting on time and complete professional reports on civil judgment enforcement and financial statements as prescribed; For the Department of Civil Judgment Enforcement, in addition to making reports arising in the province, it must also compile data and make professional reports on civil judgment enforcement throughout the province and send them to the General Department of Civil Judgment Enforcement and the Ministry of Justice.

e) Analysing accounting information and data on judgment enforcement to help the Head of the civil judgment enforcement agency and superior management agencies understand the management of money, assets, material evidences as well as judgment enforcement activities of the unit.

g) The Department of Civil Judgment Enforcement is responsible for guiding and examining the implementation of the financial and accounting regime for civil judgment enforcement in its subordinate units.

               2. Accounting tasks at General Department of Civil Judgment Enforcement, Ministry of Justice

                a) Guiding and inspecting the implementation of accounting operations for civil judgment enforcement for subordinate civil judgment enforcement agencies.

               b) Compiling reports on civil judgment enforcement operations of Departments of Civil Judgment Enforcement to report to Head of the Ministry of Justice.

               c) Analysing information and accounting data on judgment enforcement to help the Head of the Ministry of Justice understand the operation situation and results of civil judgment enforcement revenue and expenditure activities in the whole system.

               3. When changing the Accountant, Chief Accountant, Head of unit or authorized person for professional accounting activities of judgment enforcement, the unit must organize the handover according to regulations. At the end of the handover, a handover minutes must be made, and the handover minutes must fully state the financial situation of the judgment enforcement, including: remaining cash funds, deposits at the Bank or Treasury; the amount of money collected to be paid, already paid, and payable to the judgment creditor in accordance with each enforcement decision; the amount paid to the budget, the amounts collected and spent on the of the judgment enforcement according to each judgment enforcement decision. The accounting tasks that not yet handled and all accounting documents related to the operation of revenue and expenditure of each judgment enforcement decision must be handled. The handover minutes must be fully signed by relevant persons and witnessed by the head of the unit.

Article 8. Responsibilities of executers

1. The principles, regimes and procedures related to the revenue, expenditure, input and output of money and judgment enforcement assets must be strictly observed. Preparing and providing fully and promptly documents related to the payment and handling of monies and assets during the judgment enforcement with judgment creditors, judgment debtors and other related subjects to accounting as prescribed in this Circular and relevant legal documents. Taking responsibility for the accuracy, truthfulness, legality and validity of the provided documents and dossiers; data recorded on dossiers and documents transferred to accountants to record.

2. Fully and promptly paying the sums and assets obtained by each judgment enforcement decision to the cash fund, the agency's vault or to the State Treasury as prescribed; Having the right to request accountants to make payments to judgment creditors in accordance with the provisions of law, promptly proposing measures to handle outstanding funds and assets as prescribed by law to the head of each unit.

3. Every month, quarter and year, it is necessary to compare revenues and expenditures in judgment enforcement activities with accountants on the amount, assets, revenue, expenditure, inventory or input, output and inventory of each judgment enforcement decision (if any), ensuring consistency in the data reported on the results of judgment enforcement activities with accounting figures. In case of discrepancies in figures between reports, the causes must be found and measures must be taken to resolve such discrepancies in accordance with law. Taking responsibility for damages caused by illegal acts that taken by oneself.

4. Not appointing Executor who has a blood family relationship with the Chief Accountant in the same judgment enforcement agency. The General Department of Civil Judgment Enforcement shall provide specific guidance on this content.

Chapter II

SPECIFIC PROVISIONS

Article 9. Regulations on accounting documents

1. All economic operations arising in connection with professional activities of civil judgment enforcement must be made in accounting documents. All figures recorded in the accounting books must be proved by valid and legal accounting documents. Accounting documents for civil judgment enforcement may only be made once for each arising economic and financial operation, ensuring clarity, completeness and timeliness, reflecting accurate information.

2. Accounting documents must meet at least 7 contents specified in Article 16 of the Law on Accounting, in accordance with the accounting records and management requirements of the unit. For special documents such as checks, valuable papers must be preserved and managed like money.

               3. Photocopied accounting documents

               a) Accounting documents kept at the accounting body of department of civil judgment enforcement must be originals, except for documents related to expenditures on judgment enforcement expenses, expenditures on bailiff activities and other activities guaranteed by the budget as prescribed by law, the estimator and accountant of the unit shall keep the originals. Based on the original documents, the unit shall make an additional copy of 01 copy to serve the accounting for judgment enforcement.

In addition, in case the document has only 01 original copy but must be kept in the professional accounting dossiers of the judgment enforcement and the execution dossiers of the Executor, the professional accountant of the judgment enforcement shall keep the original, the Executor shall keep a photocopy.

                b) The photocopied documents must be taken from the originals. On the photocopied accounting documents, there must be the signature and certification seal of the head of the unit or authorized person. Photocopied documents in the cases specified at Point a of this Clause shall be valid and kept as originals.

               4. Professional accountants in civil judgment enforcement may use electronic documents during the judgment enforcement in accordance with the law on accounting.

                5. List of accounting documents

List, forms and explanation of methods of preparation of accounting documents specified in Appendix No. 01 "Accounting documents" enclosed with this Circular.

               6. In addition to accounting documents specified in this Circular, the Ministry of Justice is responsible for prescribing more lists and forms of accounting documents applicable to civil judgment enforcement agencies to reflect economic and financial operations arising related to accounting for civil judgment enforcement operations.

Article 10. Regulations on book-keeping accounts and book-keeping account system

1. Book-keeping accounts are used to classify and systematize economic and financial operations arising according to economic content and chronological order. Book-keeping accounts reflect and control regularly, continuously and systematically the situation of revenue, expenditure, import and export of money, assets and material evidences in judgment enforcement activities, results of judgment execution activities in money and assets at civil judgment enforcement agencies at all levels.

2. Book-keeping accounts are opened for each accounting object with separate economic content. The account system includes all book-keeping accounts used in professional accounting for judgment enforcement, which are uniformly regulated on the type of account, number of accounts, symbols, names and recording contents of each account.

3. Classification of book-keeping accounts

The book-keeping account system applied to accounting for civil judgment enforcement includes accounts on the balance sheet and accounts off the balance sheet:

a) The accounts on balance sheet reflect all economic and financial operations arising under accounting objects, which are accounted for by the method of double-entry bookkeeping.

b) The accounts off balance sheet reflect accounting objects that have been accounted for on the accounts in the balance sheet but need to be monitored in further detail to serve management requirements such as foreign currencies of all kinds. In addition, the account off balance sheet also reflects assets and material evidence obtained by the Enforcement Agency but whose value has not been determined or has been sealed and accounted for at conventional prices. Account off the balance sheet are accounted for by the single-entry bookkeeping method (no reciprocal entries between accounts).

4. Use of the account system

a) Civil judgment enforcement agencies at all levels must rely on the book-keeping account system promulgated in this Circular to apply book-keeping accounts appropriately to each unit.

b) A unit may replenish book-keeping accounts in the following cases:

- Supplementing detailed accounts for accounts specified in the list of book-keeping account systems at Appendix No. 02 enclosed with this Circular to serve the management requirements of the unit.

- The Ministry of Finance shall approve in writing the supplementation of the accounts at the same level with the accounts specified in the list of book-keeping account systems Appendix No. 02 enclosed with this Circular.

5. List of book-keeping account systems, explanation of contents, structure and methods of recording book-keeping accounts of units specified in Appendix No. 02 "Book-keeping account system" enclosed with this Circular.

Article 11. Regulations on accounting books

1. Civil judgment enforcement agencies must open accounting books to record, systematize and keep all economic and financial operations arising related to civil judgment enforcement activities.

2. Types of accounting books for civil judgment enforcement

a) Each unit uses only one system of accounting books for one annual accounting period, including general and detailed accounting books. The unit must open general accounting books and detailed accounting books and strictly implemented in accordance with the contents, order and recording methods for each accounting book form.

b) General accounting book:

- Journal to be used for recording accrual economic operations presented in chronological order.

- The Ledger is used to record economic and financial operations arising according to economic contents (according to book-keeping accounts), data on the Ledger generally reflects the situation of revenues and expenditures related to judgment enforcement activities; the management of judgment execution assets and funds arising during judgment enforcement.

c) Detailed accounting books and cards:

They are used to record in detail economic operations arising related to accounting subjects according to management requirements that the Ledger has not yet reflected in detail, in order to provide detailed data on the situation of revenue, expenditure of money and judgment enforcement assets according to each judgment enforcement decision until the end of the judgment enforcement case.

Based on the management requirements and accounting requirements of each separate accounting subjects, the unit is allowed to supplement indicators (columns, rows) on detailed accounting books and detailed accounting cards to serve the preparation of professional reports on civil judgment enforcement and financial statements according to management requirements.

3. It is strictly forbidden to leave out of the accounting books any revenues, expenditures, or assets, funds, debts and material evidences related to civil judgment enforcement activities.

4. The preservation and archiving of accounting books shall comply with the provisions of the law on accounting, relevant documents and regulations in this Circular.

5. List of accounting books, accounting book forms, explanation of contents and methods of bookkeeping shall comply with the provisions of Appendix No. 03 "Accounting book system" promulgated together with this Circular.

Article 12. Financial statements and professional reports on civil judgment enforcement

1. Responsibility for making and submitting reports

Civil judgment enforcement agencies at all levels shall be responsible for making reports periodically and submitting them to their immediate superior units and cost estimate units as prescribed.

Superior civil judgment enforcement agencies shall be responsible for compiling data on civil judgment enforcement operations and making aggregate reports from data of subordinate units as prescribed.

Civil judgment enforcement agencies at all levels must synthesize data to prepare financial statements of the unit from the financial statement figures of the cost estimate unit made according to regulations on the administrative accounting regime promulgated under Circular 107/2017/TT-BTC and financial statements of accounting for civil judgment enforcement prepared according to regulations at this Circular.

The list of periodic reports and methods of compiling financial statement figures are detailed in Appendix No. 04 of this Circular.

2. Purpose of the report

a) Professional reports on civil judgment enforcement are used to provide information on the management of money, assets and material evidences; internal and external payment situation of civil judgment enforcement agencies and other financial situation, in order to provide information to the competent authorities of the state.

b) Financial statements are intended to provide financial information to relevant management agencies, organizations and individuals for consideration of the unit's activities related to assets and capital sources assigned to the judgment enforcement agency. At the same time, it is the basic information to provide the superior accounting unit with annual financial statements according to regulations in order to fully reflect the assets and capital sources assigned by the state to the management unit.

3. Principles of making report

a) The making of reports must be based on accounting data after closing the accounting books. The report must be prepared in accordance with the principles, contents and methods as prescribed and presented consistently between accounting periods, in case the report is presented differently between accounting periods, it must have clear interpretation.

b) The report must be signed by the maker, the Chief Accountant and the head of the unit or authorized person. The person signing the report shall be responsible for the content of the report in accordance with the provisions of law.

4. Requirements of the report

a) The report must be honestly and objectively reflected on the content and value of the reporting indicators; present in a coherent, systematic structure the situation of money, property, material evidence; internal and external payment situation of civil judgment enforcement agencies and other financial situations of the unit.

b) Reports must be prepared promptly and at the prescribed time for each unit, clearly presenting, understandable and accurate accounting information and data.

c) Reported information and data must be continuously reflected, data of this period must be successive to those of the previous period.

5. Reporting period

a) For professional reports on civil judgment enforcement: The unit shall prepare quarterly, annually (September 30 annually) or at the request of competent agencies.

b) For financial statements:

- The unit must make financial statements at the end of the annual accounting period (September 30) as prescribed, submit them to superior agencies together with the professional report on civil judgment enforcement.

- In addition, financial statements must be made as at December 31 of each year submitted to the cost estimate unit to compile the general financial statements of the enforcement agency at all levels to be submitted to the immediate superior unit.

c) List and form of report, recipient, time limit for submission, explanation of contents and methods of making reports shall comply with the provisions of Appendix No. 04 "Reporting system" promulgated together with this Circular.

6. Report submission form

Reports sent to competent agencies may be presented in paper or electronic documents depending on actual conditions and requirements of the agency receiving the report.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 13. Effect

This Circular takes effect and applies from October 01, 2020 for the new accounting period of accounting for civil judgment enforcement, superseding Circular No. 91/2010/TT-BTC dated June 17, 2010 of the Ministry of Finance providing guidance on accounting for civil judgment enforcement.

Article 14. Responsibilities of heads of units

1. Being responsible for organizing the implementation of professional accounting and judgment enforcement in accordance with the law on accounting and the provisions of this Circular.

2. Monitoring and urging judgment enforcement accounting units to collect and promptly pay judgment enforcement revenues to the state budget in accordance with law.

3. Heads of higher-level civil judgment enforcement agencies shall organize professional training for accountants in civil judgment enforcement of their units and subordinate units.

Article 15. Responsibilities of the Department of Planning and Finance, Ministry of Justice

1. Coordinating with the General Department of Civil Judgment Enforcement, organizing the accounting work of judgment enforcement in accordance with the law on accounting and the provisions of this Circular, providing professional training for the team of accountants in civil judgment enforcement.

2. Inspecting the observance of regulations on accounting for civil judgments enforcement at civil judgment enforcement agencies at all levels according to their competence.

Article 16. Handling violations

1. All violations of the Law of Accounting and the provisions of this Circular, depending on the nature, content and seriousness of violations, shall be sanctioned according to the provisions on sanctioning administrative violations in the field of accounting.

2. If the violation causes serious consequences, it shall be examined for penal liability in accordance with the provisions of law, in case of causing damage, compensation must be paid.

Article 17. Implementation organization

1. The General Department of Civil Judgment Enforcement shall assume the prime responsibility for, and coordinate with the Department of Planning and Finance, Ministry of Justice in, instructing local civil judgment enforcement agencies to convert data from the accounting system according to accounting guidelines issued together with Circular No. 91/2010/TT-BTC dated June 17, 2010 of the Ministry of Finance guiding accounting for civil judgment enforcement to the accounting book system promulgated together with this Circular.

2. Director of the Department of Audit and Accounting Regulation, Chief of Office and Head of relevant units under the Ministry of Finance; the Director of the Department of Planning and Finance - Ministry of Justice, the General Director of the General Department of Civil Judgment Enforcement and the heads of relevant units under the Ministry of Justice shall be responsible for disseminating, guiding, examining and implementing this Circular./.