Circular 177: Regulations on accounting principles of Account 161 - Project expenditure in Vietnam

Circular 177: Regulations on accounting principles of Account 161 - Project expenditure in Vietnam​ (illustrative image)

At Clause 1, Article 11 Circular 177/2015/TT-BTC regulating the accounting principles of Account 161 - Project Expenditure:

- This account is used to reflect expenditures for programs and projects approved by the State using state budget funds or foreign aid sources, and other sources for the programs and projects. Account 161 is only used at the Headquarters;

- Account 161 - Project Expenditure is only used at the Headquarters when tasked with managing and implementing the program or project, and is funded by the state budget, foreign aid, and sponsorship funds for the project to carry out the program or project;

- Accounting must open detailed tracking books for the expenses of each program or project and compile expenses for project management and project implementation according to the state budget index and expenditure contents in the approved estimates of each program or project;

- Vietnam Deposit Insurance does not approve annual budget finalization for project expenditures from aid funds or goods under programs or projects if Vietnam Deposit Insurance has not obtained the required documentation for revenue and expenditure recording according to financial policies. Unapproved project expenses are reflected on the Debit side of Account 161 - Project Expenditure (Detailed expenditures for projects without funding sources);

- For revenues (if any) during the implementation of programs, projects, and topics, they are accounted on the Credit side of Account 338 - Payables and other payables (3388) (Detailed revenues from project implementation). Depending on the funding agency's handling regulations, revenues during project implementation will be transferred to related accounts;

- Account 161 is opened to track cumulative project expenditures from the start of the project until the program or project is completed and approved for finalization and handover for use.

Details can be seen at Circular 177/2015/TT-BTC, effective from January 1, 2016.

Ty Na

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