Circular No. 103/2018/TT-BTC guiding accounting for the "For the Poor" Fund

CIRCULAR

Guidelines for accounting applicable to the Poverty Reduction Fund

Pursuant to the Accounting Law dated November 20, 2015;

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

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

Pursuant to the Joint Resolution No. 88/NQLT/CP-ĐCTUBTWMTTQVN dated October 7, 2016 between the Government and the Central Steering Committee of the Vietnam Fatherland Front on cooperation in implementing sustainable poverty reduction,新农村发展规划和文明城镇建设；

Pursuant to Decision No. 1198/QĐ-MTTW dated December 29, 2016 of the Central Steering Committee of the Vietnam Fatherland Front on the issuance of the Regulation on fundraising, management, and utilization of the Poverty Reduction Fund revised in 2016;

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

The Minister of Finance issues this Circular guiding accounting applicable to the Poverty Reduction Fund.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the list of accounting forms and methods of preparing accounting vouchers; the list of accounting accounts and methods of posting accounting accounts; the list of accounting ledgers and methods of preparing accounting ledgers; the list of financial reports and methods of preparing and presenting financial statements applicable to the objects specified in Article 2 of this Circular.

Article 2. Applicability

This Circular guides accounting applicable to the Poverty Reduction Fund at all levels (hereinafter referred to as the Poverty Reduction Fund).

Article 3. Accounting organization

1. The Poverty Reduction Fund at all levels (Central, Provincial, District, Commune) must organize an accounting system, allocate personnel for accounting work, or allocate personnel to concurrently perform accounting work depending on the scale and volume of accounting work at each level of the fund.

2. Specifically, at the commune level (hereinafter collectively referred to as the commune level), personnel for accounting work at the Poverty Reduction Fund may be allocated, or personnel for budget and finance accounting at the commune may concurrently perform accounting work for the Poverty Reduction Fund to collect accounting vouchers, record income and expenditure entries, and prepare income and expenditure reports for the Poverty Reduction Fund's activities.

3. The allocation of Chief Accountants and accounting supervisors for the Poverty Reduction Fund at all levels (Central, Provincial, District, Commune) shall be carried out in accordance with the provisions of the accounting laws.

Chapter II
SPECIFIC PROVISIONS

Article 4. Provisions on accounting vouchers

1. Accounting vouchers are documents and objects carrying information reflecting economic and financial transactions that have occurred and been completed, serving as the basis for recording in the accounting books.

2. The Fund uses four mandatory accounting voucher models as prescribed in Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance, including: Receipt Form (Model C40-BB), Payment Form (Model C41-BB), Temporary Advance Payment Request Form (Model C43-BB), Revenue Receipt Form (Model C45-BB), and special vouchers issued in this Circular as per Appendix No. 01. The Fund may design its own accounting voucher models to reflect economic transactions that occur, which must meet at least seven contents stipulated in Article 16 of the Accounting Law, and comply with the recording requirements and management needs of the Fund.

3. The list, models, and explanations of the methods for preparing mandatory accounting vouchers and special accounting vouchers for the Poverty Reduction Fund are specified in Appendix No. 01 attached to this Circular.

Article 5. Provisions on accounting accounts

1. Accounting accounts are used to classify and systematize economic and financial transactions according to their economic content.
2. The accounting account system of the Poverty Reduction Fund includes accounts within the chart of accounts and accounts outside the chart of accounts.

Accounts within the chart of accounts reflect all economic and financial transactions occurring, including assets, sources of capital, fund income, fund activity expenses, surplus (deficit) at the Poverty Reduction Fund during the accounting period. Accounts within the chart of accounts are double-entry (posting corresponding journal entries between accounts).

Accounts outside the chart of accounts reflect economic indicators already reflected in the accounts within the chart but need to be monitored to serve management requirements, such as goods donated, sponsored, or assisted, various types of foreign currency. Accounts outside the chart of accounts are single-entry (no corresponding journal entries between accounts).

3. The list of the accounting account system, explanations of the content, structure, and methods of recording accounting accounts are specified in Appendix No. 02 attached to this Circular.

Article 6. Provisions on accounting books

1. Accounting books are used to record, systematize, and retain all economic and financial transactions related to the "Poverty Reduction Fund". Information recorded in the accounting books must ensure full, timely, accurate, truthful, continuous, and systematic reflection of all income and expenditure activities of the fund. No property, source of funds, or income and expenditure of the fund shall be left out of the accounting books.

2. At each level, the "Poverty Reduction Fund" shall only use one accounting book system for each fiscal year, including general ledger and detailed ledgers. The "Poverty Reduction Fund" selects one of the following accounting methods: Journal-General Ledger method, General Journal method, Bookkeeping Voucher method, and Computerized Accounting method. Depending on the chosen accounting method, the "Poverty Reduction Fund" must open complete general ledgers and detailed ledgers and properly record entries according to the content, sequence, and method applicable to each type of ledger.

3. The list of accounting books, forms, and instructions for setting up accounting books are specified in Appendix No. 03 attached hereto.

Article 7. Financial Reports

1. Financial reports, income and expenditure activity reports

- Financial reports are used to summarize and explain the financial situation and results of operations of the "Poverty Reduction Fund".

- Income and expenditure activity reports are used to reflect the income and expenditure situation and operational results of the "Poverty Reduction Fund".

2. Responsibilities of the "Poverty Reduction Fund" in preparing and submitting financial reports and income and expenditure activity reports.

- The central "Poverty Reduction Fund" must prepare and submit annual financial reports to the Central Committee of the Vietnam Fatherland Front and the Ministry of Finance for coordination in checking, reconciling, and adjusting accounting data related to the fund's income and expenditures.
- Provincial-level "Poverty Reduction Funds" must prepare and submit annual financial reports to the provincial-level Vietnam Fatherland Front Committee, the upper-level Fund Mobilization Board, and the same-level finance authority for coordination in checking, reconciling, and adjusting accounting data related to the fund's income and expenditures.
- County and commune-level "Poverty Reduction Funds" must prepare and submit annual income and expenditure activity reports to the same-level Vietnam Fatherland Front Committee and the upper-level Fund Mobilization Board for coordination in checking, reconciling, and adjusting accounting data related to the fund's income and expenditures.
- Higher-level "Poverty Reduction Funds" have the responsibility to guide and inspect lower-level "Poverty Reduction Funds". "Poverty Reduction Funds" at all levels must publicly disclose the fund periodically or upon request.

3. Requirements for preparing and presenting financial reports

Preparing financial reports must ensure truthfulness, objectivity, completeness, timeliness, and accurate reflection of the fund's assets, sources of funds, income, and expenditures.

Preparing financial reports must be based on data after closing the accounting books. Financial reports must be prepared with consistent content, method, and presentation across reporting periods.

Financial reports must contain signatures of the preparer, chief accountant (or responsible accountant), and account holder (or authorized representative) before submission or public disclosure.

4. Deadline for preparing annual financial reports

Annual financial reports of "Poverty Reduction Funds" at all levels are prepared at the end of the fiscal year.

5. Deadline for submitting financial reports

5.1 Deadline for submitting financial reports

- The central "Poverty Reduction Fund" must submit annual financial reports to the Central Committee of the Vietnam Fatherland Front and the Ministry of Finance within ninety days from the end of the fiscal year.

- Provincial-level "Poverty Reduction Funds" must submit annual financial reports to the same-level Vietnam Fatherland Front Committee, the central Fund Mobilization Board, and the same-level finance authority. The Standing Committee of the Central Committee of the Vietnam Fatherland Front will specify the deadline for submitting provincial-level financial reports.

5.2 Deadline for submitting income and expenditure activity reports

County and commune-level "Poverty Reduction Funds" must submit income and expenditure activity reports to the same-level Vietnam Fatherland Front Committee and the upper-level Fund Mobilization Board. The Standing Committee of the Central Committee of the Vietnam Fatherland Front will specify the deadline for submitting county and commune-level income and expenditure activity reports.

6. List of reports, report forms, and explanations of the methods for preparing financial reports are specified in Appendix No. 04 attached hereto.

Chapter III
IMPLEMENTATION

Article 8. Effective Date

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

2. This Circular replaces Circular No. 77/2007/TT-BTC dated July 5, 2007, issued by the Ministry of Finance on guiding accounting for the "Poverty Reduction Fund".

Article 9. Implementation Organization

1. The Standing Committee of the Central Committee of the Vietnam Fatherland Front and the central Fund Mobilization Board have the responsibility to implement accounting work for the "Poverty Reduction Fund" as prescribed in this Circular.

2. The Director of the Accounting Supervision Bureau, the Director of the Administrative Affairs Department, the Head of the Office of the Ministry of Finance, and the heads of relevant units under the Ministry of Finance are responsible for disseminating, guiding, inspecting, and enforcing this Circular.

3. Other social and charitable funds with similar income and expenditure activities based on self-generated capital and self-financed operating costs, like the "Poverty Reduction Fund," may apply this Circular when conducting accounting work./.