Circular No. 03/2004/TT-BTC guiding accounting for administrative and public service units implementing the State Budget Law and administrative cost allocation

CIRCULAR

Guidelines for accounting in administrative and public service units implementing the State Budget Law and administrative cost allocation

Pursuant to the State Budget Law number 01/2002/QH11 dated

Pursuant to Decree number 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law; 16/12/2002;

Pursuant to Circular number 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree number 60/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of

Pursuant to Decision number 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister on expanding the pilot program of allocating personnel quotas and management expenses for administrative state agencies and Joint Circular number 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 of the Ministry of Finance and the Civil Service Personnel Department (now the Ministry of Home Affairs) guiding Decision number 192/2001/QĐ-TTg of the Prime Minister;  State Budget Law;

Pursuant to the Accounting System for Administrative and Public Services issued pursuant to Decision number 999-TC/QĐ/CĐKT dated November 2, 1996 and Circulars amending and supplementing Decision number 999-TC/QĐ/CĐKT of the Ministry of Finance (Circular number 184/1998/TT-BTC dated December 28, 1998 guiding accounting for inventory valuation, goods, large-scale repair value, completed construction projects at year-end; Circular number 185/1998/TT-BTC dated December 28, 1998 guiding accounting for VAT and corporate income tax in administrative and public service units; Circular number 109/2001/TT-BTC dated December 31, 2001 guiding accounting for receiving and using non-repayable aid funds);

To be consistent with the provisions of the State Budget Law and guiding documents for the State Budget and administrative cost allocation, the Ministry of Finance guides accounting in state agencies and administrative and public service units as follows:

This Circular applies to all state agencies, administrative and public service units under the central and local state management machinery, political organizations, political-social organizations, political-social-professional organizations, social organizations, social-professional organizations, and units under the armed forces that are funded by the state budget

I. SCOPE OF APPLICATION

currently implementing the Accounting System for Administrative and Public Services issued pursuant to Decision number 999-TC/QĐ/CĐKT dated November 2, 1996 and Circulars amending and supplementing the Accounting System for Administrative and Public Services issued pursuant to Decision number 999-TC/QĐ/CĐKT mentioned above. Notwithstanding, units with revenue still implement accounting according to Circular number 121/2002/TT-BTC dated December 31, 2002 and related contents concerning the receipt  of state budget funds as stipulated in this Circular.  state budget funds  as specified in this Circular.

II. CONTENTS OF AMENDMENTS AND SUPPLEMENTS

1- Supplement accounting vouchers

1.1. Supplement the voucher "Table for tracking administrative cost allocation implementation" (Form number C42-KC).

1.2. Amend the voucher "Purchase Order" (Form number C15-H).

1.3. Use the amended vouchers issued in Circular number 121/2002/TT-BTC dated December 31, 2002 of the Ministry of Finance including:

Payroll Settlement Sheet                                     (Form number C02-H)

Bonus Settlement Sheet                                 (Form number C34-SN)

Notice of Salary Termination                                                          (Form number C35-SN)

External Payment Settlement Sheet                            (Form number C36-SN)

Summary of Receipts                             (Form number C37-SN)

Cash Disbursement Voucher                                                               (Form number C39-SN)

Payment Request Form                                       (Form number C40-SN)

Overtime Payment Settlement Sheet              (Form number C41-SN)

Table for Tracking Administrative Cost Allocation Implementation      (Form number C42-KC)

(See Appendix 1 for voucher forms and methods of preparing accounting vouchers)

2- Amend and supplement accounting accounts

2.1. Open additional third-level (five-digit) and fourth-level (six-digit) accounts for the following accounts a/ Account 4611 “Previous Year”:

Account 46111 “Regular Expenditure Source” 

Account 46112 “Irregular Expenditure Source” (details each expenditure source)

Account 4612 “Current Year”

Account 46121 “Regular Expenditure Source”

Account 46122 “Irregular Expenditure Source” (details each expenditure source)

Account 4613 “Next Year”

Account 46131 “Regular Expenditure Source”

Account 46132 “Irregular Expenditure Source” (details each expenditure source).   

b/ Account 6611 “Previous Year”

Account 66111 “Regular Expenditure”

Account 661111 - Personal Payment Expenditure

Account 661112 - Professional Activity Expenditure

 Account 661113 - Purchase and Repair Expenditure

 Account 661118 - Other Regular Expenditure

 Account 66112 “Irregular Expenditure”

Account 661121 - Staff Reduction Expenditure

Account 661122 - Emergency Task Expenditure

 Account 661128 - Other Irregular Expenditure

Account 6612 “Current Year”

Account 66121 “Regular Expenditure”

Account 661211 - Personal Payment Expenditure

Account 661212 - Professional Activity Expenditure

Account 661213 - Purchase and Repair Expenditure

 Account 661218 - Other Regular Expenditure

 Account 66122 “Irregular Expenditure”

Account 661221 - Staff Reduction Expenditure

 Account 661222 - Emergency Task Expenditure

 Account 661228 - Other Irregular Expenditure

Account 6613 “Next Year”

Account 66131 “Regular Expenditure”  Account 661311 - Personal Payment Expenditure

Account 661312 - Professional Activity Expenditure

 Account 661313 - Purchase and Repair Expenditure

Account 661318 - Other Regular Expenditure

Account 66132 “Irregular Expenditure”

Account 661321 - Staff Reduction Expenditure

Account 661322 - Emergency Task Expenditure

Account 661328 - Other Irregular Expenditure.

 2.2. Rename and amend the content of some accounts:

a/ Rename Account 008 “Budget Limit” to “Operating Expenditure Budget”.

This account is used by administrative and public service units funded by the budget to reflect the operating expenditure budget allocated by the competent authority and the withdrawal of the operating expenditure budget for use.

The structure and content reflected in Account 008 “Operating Expenditure Budget”:  Debit: Operating expenditure budget allocated

Credit: Withdrawal of operating expenditure budget for use

Debit balance: Remaining operating expenditure budget not withdrawn.

Account 008 has two second-level accounts:

Account 0081 “Regular Expenditure Budget”  Account 0082 “Irregular Expenditure Budget”.

b/ Rename Account 009 “Other Budget Limit” to “Program and Project Expenditure Budget”.  This account is used by administrative and public service units funded by the budget for programs, projects, scientific research topics, and basic construction investment to reflect the program and project expenditure budget allocated by the state budget and the withdrawal of these budgets for use.

The structure and content reflected in Account 009 “Program and Project Expenditure Budget”:

Debit: Program and project expenditure budget allocated

Credit: Withdrawal of program and project expenditure budget for use

b/ Change the name of Account 009 "Other budget expenditure limit" to "Program and project budget estimate".

This account is used by administrative and public service units that receive program and project budgets, scientific research budgets, and construction investment budgets from the state budget to reflect the amount of state budget funds allocated for programs, projects, scientific research topics, basic construction projects, and the withdrawal of these budget estimates for use.

Structure and content reflected in Account 009 "Program and project budget estimate":

Debit Side: Program and project budget estimate assigned

Credit Side: Withdrawal of program and project budget estimate for use

Debit Balance: Remaining program/project budget expenditure forecast not yet withdrawn.

Account 009 has three second-level accounts:

0091 "Program/project expenditure budget"

0092 "Scientific research project expenditure budget"

0093 "Construction investment expenditure budget"

2.3. Supplement Account 4214 "Administrative expenditure allocation variance" under Account 421 "Unprocessed revenue-expenditure variance".

This account is used by administrative units that have implemented staffing and administrative expenditure allocations to record the variance due to savings from these allocations and the distribution and use of such savings.

Structure and content reflected in Account 4214 "Administrative expenditure allocation variance":

Debit Side: Transfer of expenditures made from the savings portion for increased income of officials and civil servants, rewards, welfare expenses, and expenses to improve efficiency and quality of work...

Credit Side: Provisional deduction of savings or transfer of additional savings allocated from regular funding accounts upon final settlement approval;

Credit balance: Remaining unutilized savings from administrative expenditure allocations.

2.4. Supplement Account 336 "Advance from Treasury"

This account is used by administrative and public service units that receive budget funding to reflect the amount of funds temporarily advanced by the Treasury and the repayment of such advances when the budget expenditure forecast has not yet been approved by the competent authority or when the approved forecast does not meet the conditions for payment.

Structure and content reflected in Account 336 "Advance from Treasury":

Debit Side: Transfer of advances already repaid as funding source

Credit Side: Amount received as advance from the Treasury

Credit balance: Amount of advance received from the Treasury but not yet repaid.

2.5. Supplement Account 004 "Administrative Expenditure Allocation" (Account outside the chart)

This account is used by administrative units that have implemented staffing and administrative expenditure allocations to reflect the allocated expenditure amounts and the implementation status of such allocations, thereby determining the savings as the basis for supplementing income for officials and civil servants and for rewards, welfare, and expenses to improve efficiency and quality of work.

Account 004 "Administrative Expenditure Allocation" is detailed according to each allocated item.

Structure and content reflected in Account 004 "Administrative Expenditure Allocation":

Debit Side: - Allocated amount for each expense item 

Credit Side: - Actual expenditure amount for each expense item

Expenditure savings transferred after processing

            Debit balance: - Unutilized allocated expenditure amount

                        Unprocessed expenditure savings at the end of the period.

            Account 004 has two second-level accounts:

                        Sub-account 0041 "Previous Year's Administrative Expenditure Allocation"

                        Sub-account 0042 "Current Year's Administrative Expenditure Allocation".

3. Amend and supplement accounting books

4. Amend financial reports

4.1. Amend the report "Funding Situation and Final Settlement Report" (Model B02-H) and its sub-reports.

4.2. Supplement the following financial reports:

Report on the implementation of administrative expenditure allocation targets (Model B10-KC)

Report on the use of savings from administrative expenditure allocations (Model B11-KC)

(See Appendix 3 for supplementary and amended report models and preparation methods).

III- ACCOUNTING METHODS FOR CERTAIN MAJOR TRANSACTIONS WITH AMENDMENTS AND SUPPLEMENTS

1. For units receiving budget funding

1.1. At the beginning of the year, when the unit receives the annual budget expenditure forecast from the competent authority, record:

Debit Account 008 "Annual Expenditure Forecast" and corresponding second-level accounts:

0081 "Regular Expenditure Forecast"

0082 "Irregular Expenditure Forecast".

1.2. When receiving the program/project expenditure forecast, scientific research project expenditure forecast, and construction investment expenditure forecast from the competent authority, record:

Debit Account 009 "Program/Project Expenditure Forecast" and corresponding second-level accounts.  1.3. When withdrawing budget expenditure forecast for use (annual expenditure forecast and program/project expenditure forecast), based on the budget withdrawal notice and related documents, credit Account 008 "Annual Expenditure Forecast" or credit Account 009 "Program/Project Expenditure Forecast", simultaneously record:

Debit Account 111 - Cash

Debit Account 112 - Bank Deposits, Treasury Deposits

Debit Account 152 - Materials and Tools

Debit Account 211 - Tangible Fixed Assets

Debit Account 213 - Intangible Fixed Assets

Debit Account 331 - Accounts Payable

Debit Account 661 - Operational Expenses

Debit Account 241 - Unfinished Construction Projects

Credit Account 462 - Project Funding Source

Credit Account 461 - Operational Funding Source

…..

(Detailed second and third-level accounts as appropriate).

1.4. For units where the budget expenditure forecast has not been approved by the competent authority or where the approved forecast does not meet the conditions for payment, the unit may receive an advance from the Treasury:

a/ When receiving the advance from the Treasury, record:

Credit Account 336 - Treasury Advance.

b/ When

Debit Account 152 - Materials and Tools

Debit Account 213 - Intangible Fixed Assets

Credit Account 462 - Project Funding Source

Credit Account 461 - Operational Funding Source

  .............

the unit receives

the budget expenditure forecast from the competent authority, debit Account 008 "Annual Expenditure Forecast".  c/ When the Treasury recovers the advance from the unit, based on the Treasury advance payment request and the budget withdrawal notice, convert the received advance into regular operational funding, record:  Credit Account 008 "Annual Expenditure Forecast", simultaneously record:

Debit Account 336 - Treasury Advance  of  Credit Account 461 - Operational Funding Source (4612 - Current Year)

(Appropriate third-level accounts).

1.5. For units where the budget pays out expenses through payment orders, upon receipt of the Treasury notification, record:

Debit Account 111 - Cash (If received in cash into the treasury)

(If transferred to the budget deposit account)

Debit Account 331 - Accounts Payable (Directly transferred to the beneficiary)

Debit Account 211 - Tangible Fixed Assets

(If transferred to the budget estimate deposit account)

Debit Account 331 - Amounts Payable (Direct transfer to beneficiaries)

There is Account 461 - Operating Fund Source (Account level II, III as appropriate)

There is Account 462 - Project Fund Source (Account level II as appropriate).

1.6. When expending for operations or projects, record:

Debit Account 662 - Project Expenditure (Appropriate Account level II)

Debit Account 661 - Operating Expenditure (Appropriate Account level II, III)

Credit Account 111 - Cash on Hand

Credit Account 152 - Materials and Tools

Credit Account 312 - Advance Payments

Credit Account 331 - Accounts Payable

Credit Account 461 - Operating Fund Source (4612 - Current Year)

Credit Account 462 - Project Fund Source

Credit Account 466 - Fund Source for Forming Fixed Assets

2. For units implementing administrative expenditure quotas

2.1. Reflect the amount allocated for salary and administrative expenditure according to the quota personnel in the Debit side of Account 004 "Administrative Expenditure Quota" outside the Balance Sheet (Detailed by each quota item).

2.2. Reflect the fund source withdrawn from the allocated items, record:

Debit Account 111 - Cash on Hand

Debit Account 152 - Materials and Tools

Debit Account 331 - Accounts Payable

Debit Account 661 - Operating Expenditure

Credit Account 461 - Operating Fund Source (4612 - Current Year)

(Appropriate Account level III and detailed by the fund source of the quota item);

At the same time, record Credit Account 008 "Operating Expenditure Budget".

2.3. When actually expending  on the allocated items, record: 

Debit Account 661 - Operating Expenditure

(Account 6612 - Current Year and appropriate Account levels III, IV)

Credit Account 111 - Cash on Hand

Credit Account 152 - Materials and Tools

Credit Account 331 - Accounts Payable

Credit Account 461 - Operating Fund Source

(detailed Account 4612 - Current Year and other Account levels III)

At the same time, based on the final period settlement quota expenditure report, record Credit Account 004 "Administrative Expenditure Quota" (Detailed by each quota item).

2.4. At the end of the period, transfer the actual expenditures into the allocated fund sources when the approved settlement is finalized, record:

Debit Account 461 - Operating Fund Source (Appropriate Account level II, III and the fund sources of the allocated items)

Credit Account 661 - Operating Expenditure

(Appropriate Account level II, III, IV and the allocated items).

2.5. The debit side larger than the credit side  of Account 004 "Administrative Expenditure Quota" represents the unused allocated funds and the savings of the quota items at the end of the period.  2.6. During the period, temporarily allocate the savings for expenditure and at the end of the period, allocate additional savings according to the approved settlement to the account of unprocessed revenue and expenditure variance, record:

Debit Account 461 - Operating Fund Source (Appropriate Account level II, III)

Credit Account 421 - Unprocessed Revenue and Expenditure Variance (4214 - Administrative Expenditure Quota Variance).

2.7. Supplement additional income for civil servants from the expenditure savings, record:

Debit Account 661 - Operating Expenditure (Appropriate Account level II, III)

Credit Account 334 - Amounts Payable to Civil Servants.

2.8. Expenditure for rewards, welfare, improving work efficiency and quality, purchasing and repairing fixed assets, training expenses for civil servants or supplementing investment construction funds from expenditure savings, record:

Debit Account 661 - Operating Expenditure (Appropriate Account level II, III, IV)

Credit Account 441 - Investment Construction Fund Source (if applicable)

                          Credit Account 111 - Cash on Hand

                          Credit Account 152 - Materials and Tools

                          Credit Account 312 - Advance Payments

                          Credit Account 331 - Accounts Payable

                          Credit Account 466 - Operating Fund Source

                          2.9. Settle the expenditure savings used to improve work efficiency and quality and increase income with the savings, record:

Debit Account 421 - Unprocessed Revenue and Expenditure Variance

(4214 - Administrative Expenditure Quota Variance)

                   Credit Account 661 - Operating Expenditure (Appropriate Account level II, III, IV and corresponding expenditure items).

IV- IMPLEMENTATION PROVISIONS

1. This Circular takes effect 15 days after its publication in the Official Gazette and applies to the fiscal year 2004. Administrative and public service units within the scope of application  ADMINISTRATIVE

1. This Circular takes effect 15 days after its publication in the Official Gazette and applies to the 2004 fiscal year. Administrative and public service units within the scope of application  in  Section I of this Circular shall organize the implementation of accounting work in accordance with the Accounting System for Administrative and Public Services issued pursuant to Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, and the Circulars amending and supplementing Decision No. 999-TC/QĐ/CĐKT, and in accordance with the guidance provided in this Circular.

2. In the course of implementation, if there are difficulties or obstacles, the ministries, sectors, localities, and units shall promptly report them to the Ministry of Finance for study and resolution./.