In Vietnam, which expenses shall not be recorded as expenses of cooperative development assistance funds?

In Vietnam, which expenses shall not be recorded as expenses of cooperative development assistance funds?

Pursuant to Article 9 of the Circular 52/2022/TT-BTC stipulating expenses which cannot be recorded as expenses of cooperative development assistance funds as follows:

1. Damage which has been financially supported by the State or compensated by the insurer or the party at fault.

2. Fines which must be incurred by violating individuals for administrative violations, on environmental offences, overdue fines due to subjective reasons, or fines for violations against financial policies.

3. Expenses which are not supported by lawful and valid invoices or receipts as prescribed by law.

4. Expenses covered by other sources of funding.

5. Individuals’ contributions to local governments, social organizations or other authorities.

6. Expenses in excess of the spending limits prescribed in this Circular and relevant legislative documents.

What are regulations on approval for financial statements of cooperative development assistance funds in Vietnam?

Pursuant to Article 10 of the Circular 52/2022/TT-BTC stipulating approval for financial statements of cooperative development assistance funds in Vietnam as follows:

The cooperative fund shall annually submit financial statements to the cooperative alliance of the same level (if the cooperative fund operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State) or the general meeting of members (if the cooperative fund operates under the cooperative business model), and distribute financial results after the annual financial statements have been audited by an independent audit organization in accordance with regulations of law on auditing and given appraisal results of controllers.

What are regulations on reporting and financial disclosure of cooperative development assistance funds in Vietnam?

Pursuant to Article 11 of the Circular 52/2022/TT-BTC stipulating reporting and financial disclosure of cooperative development assistance funds in Vietnam as follows:

1. Cooperative funds shall comply with the provisions on reporting set forth in Article 44 of the Decree No. 45/2021/ND-CP.

2. Data closing duration:

a) A report for the first 06 months shall include data collected from January 01 to June 30 inclusively of the reporting year;

b) An annual report shall include data collected from January 01 to December 31 inclusively of the reporting year.

3. Report forms:

a) Financial statements specified in Point a Clause 3 Article 44 of the Decree No. 45/2021/ND-CP shall be prepared according to the fund’s accounting policies;

b) Reports on the fund’s lending activities specified in Point c Clause 3 Article 44 of the Decree No. 45/2021/ND-CP:

- Provincial cooperative funds shall prepare these reports using the form in Appendix 1a enclosed herewith and submit them to the central cooperative fund for consolidation;

- The central cooperative fund shall prepare a consolidated report using the form in Appendix 1b enclosed herewith and submit it to competent authorities;

c) Consolidated reports on the fund's operations specified in Point b Clause 3 Article 44 of the Decree No. 45/2021/ND-CP:

- Provincial cooperative funds shall prepare these reports using the form in Appendix 2a enclosed herewith and submit them to the central cooperative fund for consolidation;

- The central cooperative fund shall prepare a consolidated report using the form in Appendix 2b enclosed herewith and submit it to competent authorities;

d) The deadlines for submission of reports shall comply with the provisions of Clause 4 Article 44 of the Decree No. 45/2021/ND-CP.

4. Financial disclosure:

a) Cooperative funds operating under the business model of a single-member limited liability company of which 100% of charter capital is held by the State shall make financial disclosure in accordance with regulations of law applicable to enterprises of which 100% of charter capital is held by the State;

b) Cooperative funds operating under the cooperative business model shall make financial disclosure in accordance with regulations of law applicable to cooperatives.

Best regards!