Circular No. 102/2018/TT-BTC guiding accounting for social insurance

CIRCULAR

Accounting Guidance for Social Insurance

Pursuant to the Accounting Law dated November 20, 2015;

Pursuant to Resolution No. 104/2023/QH15 dated November 10, 2023 of the National Assembly on the state budget estimate for 2024;

Pursuant to the Health Insurance Law dated November 14, 2008 and amended on June 13, 2014;

Pursuant to the Government's Decree No. 174/2016/ND-CP dated December 30, 2016 detailing and guiding the implementation of certain provisions of the Accounting Law;

Pursuant to the Government's Decree No. 146/2018/ND-CP dated October 17, 2018 detailing and guiding measures for implementing certain provisions of the Health Insurance Law;

Pursuant to the Government's Decree No. 115/2015/ND-CP dated November 11, 2015 detailing certain provisions of the Social Insurance Law regarding mandatory social insurance;

Pursuant to the Government's Decree No. 134/2015/ND-CP dated December 29, 2015 detailing certain provisions of the Social Insurance Law regarding voluntary social insurance;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated July 26, 2017 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

On the proposal of the Director of the Department of Accounting and Auditing Supervision;

The Minister of Finance issues this Circular guiding accounting for social insurance.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular prescribes accounting vouchers, accounting accounts, accounting books, and financial reports, business reports of social insurance funds applicable to units specified in Article 2 of this Circular for accounting economic transactions arising from social insurance (SIS), health insurance (HI), unemployment insurance (UI), and other activities of the social insurance agency (hereinafter referred to collectively as social insurance activities).

Article 2. Matters not covered in this Circular shall be implemented in accordance with the Accounting System for Administrative and Public Institutions issued together with Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance on guiding the accounting system for administrative and public institutions (hereinafter referred to as Circular No. 107/2017/TT-BTC) and any amendments, supplements, or replacements thereof.

Article 2. Applicability

This Circular applies to the following social insurance agencies:

1. Vietnam Social Security; Vietnam Social Security Office; affiliated public service units; project management boards under Vietnam Social Security;

2. Social Security of provinces and centrally-administered cities (hereinafter referred to as provincial social security);

3. Social Security of districts, counties, towns, and centrally-administered cities within provinces (hereinafter referred to as district social security).

Chapter II

SPECIFIC PROVISIONS

p the accounting vouchers system

Clause 1. In addition to the accounting vouchers issued pursuant to Circular No. 107/2017/TT-BTC, this Circular supplements 30 accounting vouchers applicable to social security agencies.

Clause 2. The list, forms, explanations of contents, and methods of preparing the 30 supplementary accounting vouchers mentioned in Clause 1 of this Article are prescribed in Appendix No. 01 "System of Accounting Vouchers for Vietnam Social Security" issued together with this Circular.

Article 4. Provisions on the accounting account system

Clause 1. In addition to the accounting accounts (accounts) issued pursuant to Circular No. 107/2017/TT-BTC, this Circular supplements 15 first-level accounts applicable to social security agencies as follows:

Point a) Account 135 - Advances to State Budget: This account is used by Vietnam Social Security to reflect receivables and the settlement status of receivables between Vietnam Social Security and the State Budget concerning pre-advanced funds for expenditures on beneficiaries of social insurance benefits from the State Budget guarantee, medical expenses of military personnel and police under the health insurance scheme issued by the Military Social Security and Police Social Security, and civil servants working in cryptologic services at central ministries and local departments when the medical fund exceeds the budget limit.

Point b) Account 139 - Receivables from Insured Parties: This account reflects receivables and the settlement status of receivables from insured parties concerning various types of insurance premiums, late payment interest, and other receivables related to insurance benefits.

Point c) Account 142 - Receivables from Social Insurance Fund Transactions: This account is used by Vietnam Social Security, provincial social security, and district social security to reflect receivables from social insurance fund transactions between higher-level and lower-level social security agencies concerning insurance operations.

Point d) Account 145 - Receivables from Social Insurance Fund Investment Activities: This account reflects receivables from social insurance fund investment activities such as financial investment income, dividends, profits distributed, and other receivables.

Point đ) Account 175 - Expenditures on Various Types of Insurance by Provinces and Districts: This account is used by provincial social security and district social security to reflect expenditures on various types of insurance from the social insurance fund and guaranteed state budget for beneficiaries.

Point e) Account 335 - Temporary Receipts of Various Types of Insurance and Late Payment Interest: This account is used by provincial social security and district social security to reflect temporary receipts of various types of insurance, late payment interest, and other temporary receipts (if any) arising at the social security agency.

Point g) Account 339 - Payables to Social Insurance Funds: This account reflects payables between provincial social security and district social security agencies and organizations or individuals responsible for paying various types of insurance premiums.

Point h) Account 342 - Payables from Social Insurance Fund Transactions: This account is used by Vietnam Social Security, provincial social security, and district social security to reflect payables from social insurance fund transactions between higher-level and lower-level social security agencies concerning insurance operations.

Point i) Account 343 - Payments for Insurance Benefits to Non-Social Security Units: This account is used by provincial social security and district social security to reflect payments made to representatives of benefit disbursers, employers, medical facilities, vocational training centers, schools, labor authorities, and other payable amounts.

Point k) Account 346 - Subordinate Unit Funding: This account is only opened by superior units to monitor the funding provided to subordinate units with separate accounting systems in cash or kind. When subordinate units receive funding from superior units, they do not record it in this account but instead record it in relevant accounts according to the nature of each funding item provided by the superior unit.

Point l) Account 375 - Receipts of Various Types of Insurance by Provinces and Districts: This account is used by provincial social security and district social security to reflect receipts of various types of insurance and late payment interest on these insurances in their respective provinces and districts.

m) Account 422 - Risk Reserve Fund for Financial Investment Activities: This account is used at the Vietnam Social Security to reflect the formation and usage of the Risk Reserve Fund for Financial Investment Activities of the Vietnam Social Security.

n) Account 475 - Insurance Fund: This account is only used at the Vietnam Social Security to reflect the formation and usage of various types of insurance funds, including: social insurance fund; health insurance fund; unemployment insurance fund.

o) Account 575 - Revenue from Various Types of Insurance: This account is only used at the Vietnam Social Security agency to reflect and consolidate the revenue from various types of insurance implemented nationwide.

p) Account 675 - Expenditure from Insurance Fund: This account is used at the Vietnam Social Security to reflect the actual expenditure on pensions and social insurance allowances for beneficiaries guaranteed by the social insurance fund; health insurance expenditure; unemployment insurance expenditure; and social insurance expenditure guaranteed by the State Budget nationwide.

2. The list of accounting accounts, principles, internal structure, and methods of accounting for some main economic activities of the supplementary accounts specified in Clause 1 of this Article are prescribed in Appendix No. 02 "System of Accounting Accounts for Vietnam Social Security" issued together with this Circular.

Additional guidance on some related economic transactions is redefined. Appendix No. 05 "Additional Guidance on Some Economic Transactions" issued together with this Circular.

Article 5. Provisions on the Accounting Ledger System

1. In addition to the ledgers issued under Circular No. 107/2017/TT-BTC, this Circular supplements and guides the application of 16 detailed ledgers for the Vietnam Social Security agencies.

2. The list and forms of the 16 supplementary ledgers mentioned in Clause 1 of this Article are prescribed in Appendix No. 03 "System of Accounting Ledgers for Vietnam Social Security" issued together with this Circular.

Article 6. Provisions on the Financial Reporting System and Final Accounts Report on Internal Financial Operations of the Vietnam Social Security System

Basic accounting units within the Vietnam Social Security system must prepare financial reports and final accounts reports for their internal financial operations according to the provisions of Circular No. 107/2017/TT-BTC.

Higher-level accounting units within the Vietnam Social Security system must prepare consolidated financial statements according to the provisions of Circular No. 99/2018/TT-BTC dated November 1, 2018, issued by the Ministry of Finance guiding the preparation of consolidated financial statements for state-owned accounting units that are higher-level accounting units, and any amendments or supplements (if any).

In cases where competent authorities stipulate the preparation of other reports related to internal financial operations of the unit, such units must also prepare these reports according to the requirements of the competent authorities.

Article 7. Provisions on the Financial Reporting System of the Insurance Fund and Operational Reports of the Insurance Fund

1. Financial Report of the Insurance Fund

a) Objectives of the Report

- Basic accounting units within the Vietnam Social Security system must prepare the Financial Report of the Insurance Fund according to the provisions of this Circular.

- Higher-level accounting units within the Vietnam Social Security system having subordinate units (Vietnam Social Security, Provincial Social Security) must aggregate the Financial Report of the Insurance Fund from subordinate units according to the provisions of this Circular.

To aggregate data from subordinate units, higher-level accounting units must prepare the Summary Table of Financial Report Indicators of the Insurance Fund (Form B01/BTH-QBH, prescribed in Appendix No. 04) to consolidate corresponding indicators on the Financial Report of the Insurance Fund of directly subordinate accounting units within the scope of the aggregated Financial Report of the Insurance Fund, while higher-level accounting units must identify internal transactions within the insurance fund activities to exclude when aggregating. The Vietnam Social Security bears responsibility for guiding which internal transactions must be excluded when aggregating the financial report of the higher-level unit for insurance fund activities.

The Summary Table of Financial Report Indicators of the Insurance Fund (Form B01/BTH-QBH) is stored at the unit preparing it like an accounting ledger.

b) Purpose of the Financial Report of the Insurance Fund

The Financial Report of the Insurance Fund of the accounting unit is used to provide financial information about the activities of the social insurance, health insurance, and unemployment insurance funds (other than internal financial operations already defined in Article 6 of this Circular) entrusted by the state to the Vietnam Social Security for management purposes, providing relevant parties with information to consider and make decisions regarding these funds' activities.

The Financial Report of the Insurance Fund of basic accounting units is also the basis for compiling the Financial Report of the Insurance Fund of higher-level accounting units.

The aggregated Financial Report of the Insurance Fund prepared by the Vietnam Social Security is simultaneously used to provide information for the State Treasury to compile the national financial report as prescribed.

c) Deadline for Submitting the Financial Report of the Insurance Fund

The deadline for submitting the Financial Report of the Insurance Fund is set by the Vietnam Social Security to ensure sufficient time for data aggregation for the compilation of the national financial report and reporting to relevant agencies and units as prescribed.

d) Disclosure of the Financial Report of the Insurance Fund

The Financial Report of the Insurance Fund is disclosed in accordance with accounting laws, laws governing social insurance, health insurance, unemployment insurance, and other related documents.

đ) List, forms, explanations of contents, and methods of compiling the financial reporting system of the insurance fund are prescribed in Appendix No. 04 "Financial Reporting System and Operational Reports of the Insurance Fund Managed by the Vietnam Social Security System" issued together with this Circular.

2. Operational Reports on Insurance Fund Activities

a) List, forms of the operational reporting system on insurance fund activities are prescribed in Appendix No. 04 "Financial Reporting System and Operational Reports of the Insurance Fund Managed by the Vietnam Social Security System" issued together with this Circular.

b) Explanations of contents, methods of compilation, and deadlines for the operational reporting system on insurance fund activities are guided by the Vietnam Social Security to meet management requirements and reporting to competent authorities.

c) In addition to the reports prescribed in this regime, units within the Vietnam Social Security system must also prepare other reports as required by competent authorities (if any). Requirements for reporting data between units within the system are guided by the Vietnam Social Security to meet management requirements.

Chapter III

IMPLEMENTATION

Article 8. Effective Date

1. This Circular takes effect from January 1, 2019.

2. This Circular replaces Circular No. 178/2012/TT-BTC dated October 23, 2012, issued by the Minister of Finance on guiding accounting for social insurance.

Article 9. Implementation Organization

1. The Director of the Accounting and Auditing Supervision Department; the Head of the Public Administration and State-Owned Enterprises Department; the General Director of the Vietnam Social Security, and the Heads of related units shall be responsible for implementing, guiding, and inspecting the implementation of this Circular.

2. The General Director of the Vietnam Social Security shall be responsible for stipulating and guiding subordinate social insurance agencies on the content and methods of recording ledgers for fund operations; the content and methods of preparing operational reports for funds according to the forms prescribed in this Circular./.