Legal Counselling

Vietnam: Management and use of costs of verification and approval for financial statements

11:50, 08/09/2017

Dear Ministry of Finance: Currently, according to the provisions of Circular 09 on finalization of completed state projects, the settlement verification agency is allowed to keep this revenue. However, the rate of deduction of remuneration for verifying officers in some units is very low or nonexistent, with the reason that they have received salaries from the state budget, so they are not allowed to make additional deductions, and integrate with the agency's funds. This affects the rights of the examiner. From the above fact, I would like to suggest that there should be a document or circular guiding the implementation to protect the rights of the examiner.

Answer:

Management and use of costs of verification and approval for financial statements have been specified in Clause 2 Article 21 of the Circular No. 09/2016/TT-BTC dated January 18, 2016 of the Ministry of Finance of Vietnam on regulation on finalization of completed projects funded with State capital. To be specific:

“a) When carrying out verification, the verifying authority shall send the investor a written request for payment of costs of verification and approval for the financial statement at the percentage prescribed in clause 1 of this Article. The cost of verification and approval for financial statement is constituted by the following elements:

- Time-based or fixed wages/salaries of persons directly verifying and approving the financial statement ;

- Costs of specialists or consulting organizations verifying the project financial statement in case the verifying authority hire consulting organizations or specialists under time-based contracts;

- Expenses for business trips, costs of office stationery , printing, translation service, seminars computers and equipment serving the purpose of verification and approval for the financial statement;

- Other expenses related to project finalization.

b) The verifying authority shall be entitled to use verification and approval fees for purposes specified in point a of this clause at the ratio stipulated in clause 1 of this Article. The remaining amount of fees for verification and approval of the financial statement of the current year shall be entitled to use in the following year.”

Thus, the completed projects verification agency shall base on the above provisions to pay remuneration to the members performing the verification.

According to the website of the Ministry of Finance

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