What is cut-off point of time for preparation of full-year accounts in Vietnam? What do contents of full-year accounts in Vietnam comprise?

What is cut-off point of time for preparation of full-year accounts in Vietnam?

In Article 27 of Decree 99/2021/ND-CP stipulating cut-off point of time for preparation of full-year accounts, according to which:

1. Entities and units involved in implementation of state budget-funded public investment plans shall close their accounting books and prepare final accounts at the end of the budgetary year.

2. Advance payments shall be accounted for in the budgetary year when meeting disbursement conditions for payment for planned quantities in that year which are carried out and tested till end of December 31 in the budgetary year.

3. Revision of final accounts of the state budget must be completed by end of January 31 in the outyear.

What do contents of full-year accounts in Vietnam comprise? 

According to Article 28 of Decree 99/2021/ND-CP stipulating contents of full-year accounts, as follows:

1. State budget-funded public investments in the budgetary year-end accounts shall be classified into the followings:

a) State budget-funded public investments authorized for use in the plan assigned by the competent authority in the budgetary year.

b) State budget-funded public investments getting ready for use in the previous years' plan of which the fund availability and disbursement period is extended to the accounting year with the competent authority’s consent.

2. Disabused amounts eligible for year-end accounts, including:

a) Budgeted funds used for paying for completed quantities of projects funded by the state budget allocations for public investment in the budgets assigned in the accounting year (even including those disbursed according to the method of recording of receipts and payments, or in foreign currencies) within the period from January 1 in the accounting year to end of January 31 in the following year.

Where the year’s assigned public investment plan allows for the budget used for recovering the advance budget of the state budget used for funding the project (based on the actual disbursement results), the amount of funding to be accounted for shall be total payment for completed quantities calculated till end of the date of cut-off of data used for preparation of the year-end final accounts, including payment for completed quantities as part of the previously-disbursed advance budget that is brought forward.

b) The budgeted funding for completed quantities of the project funded by the state budget allocations for public investment in the previous-year plan which is subject to the requirements that its availability and payment period is extended to the accounting year; it is disbursed or utilized for the period from February 1 in the accounting year to December 31 in that year.

c) Payment of the prescribed advance disbursements not recovered yet which are brought forward from the previous year to the accounting year for quantities that are completed from February 1 in the budgetary year to end of January 31 in the outyear.

d) Foreign funds included in the year-end final accounts as follows: The amounts of funding eligible for recording of receipts or expenditures for completed quantities (recording of receipts or expenditures that is carried out under the Government’s regulations on management and utilization of official development aid (ODA) and concessional loans from foreign donors); and the amount of funding already used for paying for completed quantities (for foreign funds disbursed according to the domestic financial regime).

3. Policy-based advance disbursements not recovered yet that are not eligible to become entries of the final accounts. Upon expiry of the deadline for revision of the final accounts, the residual amounts of unrecoverable policy-based advance (after deducting the amounts paid as depreciation in the accounting year (if any) of part of the unrecoverable policy-based advance from the previous years) which are brought forward to the following year for the purposes of management and recovery of advance and accounting for payments for completed quantities. Financial authorities shall not be obliged to carry out the procedures for consideration of fund transfer.

4. Advance on the outyear’s state budget allocations shall not be required to be included in the year-end final accounts.

5. Explanatory notes to the year-end final accounts:

a) Ministries, central authorities, departments, divisions, subdivisions of provincial or district-level People's Committees that are authorized appropriately, superiors of investors (where they are authorized to do so), investors (or project management authorities):

- Make general review reports on implementation of plans, disbursement and final accounting of public investment funds of the state budget authorized in the accounting year.

- Explanations about issues, problems, factors affecting disbursement, payment and accounting of funds, increases/decreases in public investment budgets, recommended solutions.

b) Regulatory payment body:

- Make general reports on features and condition of year-end settlement and accounting as per clause 1 and 2 of this Article.

- Make proposals and requests for dealing with issues and problems related to the year-end final accounting task.

6. When receiving funds in the form of payment orders or foreign funds disbursed by the entities taking control of foreign funds in the form of domestic financial mechanism, ministries, central authorities, departments, divisions or subdivisions of provincial or district-level People’s Committees that are appropriately authorized, superiors of investors, investors, or all-level regulatory payment bodies, shall record them separately in the year-end final accounts.

7. The Ministry of Finance shall provide regulations on forms and charts used for the final settlement or accounting of state budget investments in the budgetary year and relevant matters.

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