This draft provides detailed guidelines for closing financial books at year-end and preparing the final settlement report for the State Budget in 1993 in Vietnam, including the transition to new budget headings, management of authorized expenditure from the central government, and requirements for reporting forms and submission deadlines.
Scope of application
Ministries, sectors, administrative units, financial departments, and the National Treasury system in centrally administered provinces and cities
Key points
- Transition to new budget headings for 1993
- Management of authorized expenditure from the central government
- Requirements for reporting forms and submission deadlines
- Specific guidance on accounting for expenditures in foreign currency
- For local budget expenditures supporting central sector agencies located within the locality
🌐 Social impact of this document
- To ensure accuracy and transparency in state financial management
- Enhance the effectiveness of authorized expenditure from the central government
- Improve the process of preparing the final settlement report
❓ Frequently asked questions
What changes were made to the budget headings in 1993?
In 1993, the Ministry of Finance supplemented and amended some items in the current State Budget headings. Specifically, it transferred the occurrence of expenses from the old general heading to new headings such as Heading 64 'Basic Salary', Heading 65 'Allowance on Salary',...
What should units do with the authorized budget funds from the central government?
Ministries, sectors, and units must maintain records, account for, and settle accounts according to the provisions set out in Circular No. 80-TC/NSNN dated September 24, 1993, issued by the Ministry of Finance.
What reports must administrative units submit?
Administrative units must submit final settlement reports on expenditures for programs and objectives funded by the central budget; final settlement reports on foreign currency expenditures (converted to Vietnamese Dong); and explanatory tables of revenue, expenditure, and variances from the plan.
Full text
LETTER
NUMBER 104-TC/NSNN DATE November 11, 1993 OF THE MINISTRY OF FINANCE REGARDING
CLOSING THE YEAR'S ACCOUNTS AND PREPARING THE FINAL STATEMENT NATIONAL BUDGET
FOR THE YEAR 1993
Respectfully submitted to:
- Ministries, General Departments, State Committees and other agencies under the Government (Financial Accounting Department),
- Central Party and mass organizations,
- Provincial Departments of Finance and Price Control and National Treasury Branches of centrally administered cities and provinces.
The work of closing the accounts of budget revenues and expenditures and preparing the final statement of the national budget for each year is basically still carried out in accordance with the provisions of Circular No. 57 TC/NSNN dated November 26, 1990 and the guidance letters No. 92 TC/NSNN dated October 23, 1991 and letter No. 118 TC/NSNN dated November 23, 1992 of the Ministry of Finance.
In 1993, due to some changes in financial management and national budget management, the Ministry of Finance issued Circulars No. 10 TC/NSNN dated February 12, 1993 and Circular No. 56 TC/NSNN dated July 8, 1993 on amending and supplementing the current national budget item list to guide accounting and finalizing the statements of national budget revenues and expenditures.
To properly carry out the work of closing the year's accounts and preparing the final statement of national budget revenues and expenditures for 1993, the Ministry of Finance provides additional guidance on the following main points:
A. END-OF-YEAR ACCOUNT CLOSING WORK
FOR NATIONAL BUDGET REVENUES AND EXPENDITURES IN 1993
I- FOR BUDGET ESTIMATE UNITS, THE FOLLOWING SHOULD BE DONE WELL:
1. Must reconcile the balances of the HMKF account and the deposit account of the budget estimate unit at the National Treasury, ensuring accuracy before December 25, 1993. 2. Pay all amounts due to the national budget: revenue from public services, fees and charges, other revenues... into the national budget.
3. Settle all loans taken, given, receivables and payables.
4. Any remaining amount on the deposit account of the unit as of December 31 not being part of the budget allocation funds: money deposited by other units for contract signing, self-generated funds allowed to retain for expenditure without having to pay into the national budget..., the unit must prepare a detailed list with confirmation from the National Treasury where the account is held, accompanied by a letter sent to the finance agency at the same level for review and approval to transfer the balance to be used next year.
5. By the end of December 31, if a unit does not follow the above guidance, the National Treasury will automatically deduct the balance of the deposit account of the unit and pay it into the national budget (the budget estimate unit belongs to which level will be transferred and paid into the budget of that level). The finance agency will not consider refunding the amount deducted and paid into the national budget due to the unit's non-compliance with regulations or failure to meet deadlines...
II- FOR FINANCE AGENCIES AND NATIONAL TREASURY BRANCHES AT ALL LEVELS
SHOULD DO THE FOLLOWING WELL:
After December 31, the National Treasury Branch must perform the following procedures:
1. The National Treasury Branch must prepare a detailed list of budget estimate units managed at the district level with remaining balances in their deposit accounts that have been deducted and paid into the district budget, and send it to the District Finance Department; simultaneously, it must also prepare a detailed list of budget estimate units managed at the provincial and central levels with remaining balances in their deposit accounts that have been deducted and paid into the central and provincial budgets, and send it to the Provincial National Treasury Branch. The latest time for sending is January 5 of the following year.
2. The Provincial National Treasury Branch must prepare a detailed list of budget estimate units managed at the provincial level (including units with deposit accounts opened at the Provincial National Treasury Branch and units reported back by the District National Treasury Branches) with remaining balances in their deposit accounts that have been deducted and paid into the provincial budget, and send it to the Provincial Department of Finance and Price Control; simultaneously, it must also prepare a detailed list of central-level budget estimate units with remaining balances in their deposit accounts that have been deducted and paid into the central budget, and send it to the Central National Treasury Branch. The latest time for sending is January 15 of the following year.
3. The Central National Treasury Branch must prepare a detailed list of central-level budget estimate units with remaining balances in their deposit accounts that have been deducted and paid into the central budget (including central-level budget estimate units with deposit accounts at the Central National Treasury Branch and units reported back by the branches) and send it to the Budget Department of the Ministry of Finance. The latest time for sending is January 30 of the following year.
4. The figures of newly generated national budget revenues and expenditures at all levels must be reconciled accurately according to the chapters, types, items, and sub-items of the current national budget item list by the finance agency in coordination with the National Treasury Branch at the same level; if there are discrepancies, the finance agency should proactively discuss with the National Treasury Branch to adjust them correctly.
5. Review and examine the implementation of the proportionate distribution of national budget revenues among different levels of budget according to the spirit of Decision No. 168/HĐBT dated May 16, 1992 and Decision No. 8-TC/NSNN dated March 5, 1993 of the Ministry of Finance [except for Hanoi City, which implements according to Decision No. 309 TC/NSNN dated May 25, 1993 (for the first six months of 1993); for the last six months of 1993, it still follows Decision No. 168/HĐBT and Decision No. 8 TC/NSNN]. During the review process, if the distribution of the proportionate distribution ratio is inconsistent with the spirit of the aforementioned decisions or if the distribution is incorrect due to misallocation of budget revenue items, the finance agency and the National Treasury Branch at the same level should take appropriate procedures to adjust the correct revenue share for each level of the budget. Strictly prohibit localities from retaining central government revenue sources for their own use; if a locality deliberately violates this rule, the Provincial National Treasury Branch will deduct the remaining balance of the local government budget at the end of December 31 and pay it into the central government budget, and report this to the Provincial Department of Finance and Price Control. If this cannot be implemented, a report must be made to the Ministry of Finance so that the Ministry can promptly handle the situation before submitting the final statement of national budget revenues and expenditures - local government budget expenditures for approval by the People's Council and People's Committee of the province or city.
III- THE FOLLOWING ITEMS OF OPERATING EXPENSES MAY BE TRANSFERRED TO 1994 FOR CONTINUOUS EXPENDITURE
AS OF DECEMBER 31, 1993
1. The balance of the operating expense account and the deposit account of defense and security units.
2. Operating expense limits for salaries and salary-like payments allocated for 1993, if delayed due to cash shortages and not paid out by December 31, 1993, may be transferred to a separate account (as stipulated by the National Treasury) for continued expenditure.
3. Operating expense limits allocated in advance for 1994.
3. The ceiling of advance funding for the year 1994.
4. The central budget funds delegated to localities for expenditure on programs and targets of the central government up to December 31, 1993, which have not been fully spent shall be carried over to 1994 for continued expenditure (except for the central budget funds delegated for social insurance work, any remaining funds at the end of December 31, 1993 must be entirely transferred and returned to the central budget. In special cases where cash difficulties prevent timely expenditure, the Department of Finance shall consult with the State Treasury to allow retention for continued expenditure and provide detailed reports on retained unspent items to be carried over to 1994 for continued expenditure to the Ministry of Finance).
B. SETTLEMENT WORK FOR THE YEAR 1993
Prior to preparing the comprehensive settlement report on state budget revenue and expenditure for 1993, relevant ministries, agencies equivalent to ministries, provincial Departments of Finance and Price Control, and Provincial State Treasury Branches shall guide subordinate units to perform the following tasks:
1. In 1993, some items in the current state budget classification were supplemented and amended. To ensure uniformity in transferring old items to new ones, the Ministry of Finance provides specific guidance as follows:
- Transfer the expenditure arising from January 1, 1993 of the total item (59 + 64 + 76 + 78 + 82 + 83 + 84) until the implementation of the new salary system to Item 64 "Basic Salary."
- Transfer the expenditure arising from January 1, 1993 of the total item (65 + 77) until the implementation of the new salary system to Item 65 "Salary Allowance."
- Transfer the expenditure arising from January 1, 1993 of the total item 79 and 2% of the wage fund provided by the budget for units to pay health insurance premiums to Item 68 "Social Insurance."
- Transfer all expenditures from January 1, 1993 of social policy beneficiaries previously recorded under Item 68 "Social Insurance" to Item 70 "Retirement Pay and Subsidies for Social Policy Beneficiaries" (including subsidies of 125%, housing rent, health insurance premiums, school fees, travel expenses for annual leave...) also to Item 70.
- The total item 70 "Collective Welfare" arising from January 1, 1993 until the implementation of the new salary system shall be analyzed in detail and transferred to the new items as follows:
+ Travel expenses for annual leave, compensation for monthly ticket refunds, 125% salary subsidy, electricity and water charges for current employees shall be transferred to Item 64 "Basic Salary."
+ Travel expenses for annual leave of individuals specified in Decision No. 4306-KTTH dated August 28, 1993 of the Government Office and other remaining expenditures under Item 70: meal allowances, uniforms, hardship allowances, special allowances for education, collective welfare expenses (if any)... shall be transferred to Item 97 "Other Expenditures."
2. For delegated central budget funds transferred to localities for expenditure, relevant ministries, sectors, units, and provincial Departments of Finance and Price Control must maintain detailed records for tracking, accounting, and settlement according to the provisions of Circular No. 80-TC/NSNN dated September 24, 1993 issued by the Ministry of Finance.
3. For expenditures funded by foreign currency from the budget allocated to administrative and public service units, in accordance with Circular No. 770-TC/TCĐN dated May 4, 1992 of the Ministry of Finance. In 1993, relevant ministries, sectors, and units must maintain records for monitoring and management, and prepare final settlement reports (converted to Vietnamese Dong) in accordance with the guidance provided in Circular No. 275-TC/TCĐN dated September 22, 1993 of the Ministry of Finance.
4. For local budget expenditures supporting central sector agencies operating within the locality, they shall be accounted for and settled as follows:
+ Expenditures supporting state management agencies: Courts, Procuratorates, State Treasury System, Tax System... shall be accounted for and settled under Chapter 99B - Class 15 - Clause 00 - Section 1 - Item 97. + Expenditures supporting central Party and mass organizations shall be accounted for and settled under Chapter 99B - Class 16 - Item 97.
+ Expenditures supporting defense and internal affairs agencies of the Ministry of Defense and the Ministry of Public Security operating within the locality shall be accounted for and settled under Chapter 99B - Class 30 - Clause 00 - Section 1 (Defense) or Section 2 (Security) - Item 97.
5. Taxes paid by subcontractors into the state budget shall still be accounted for and settled under the corresponding revenue items of the current state budget classification, in accordance with the spirit of Circular No. 07-TC/TCT dated March 30, 1992 (there is no revenue item "subcontractor tax").
6. Regarding forms and submission deadlines for settlement reports.
They shall continue to be implemented in accordance with existing regulations stipulated in Circulars and guiding documents of the Ministry of Finance. In 1993, the Ministry of Finance requires relevant ministries, sectors, budgetary units, provincial Departments of Finance, and the State Treasury System to submit additional reports as follows:
a) For administrative and public service units:
- Settlement report on expenditures for programs and targets funded by the central budget according to the chapter - class - clause - section - item of the current state budget classification (including direct funding to central ministries and sectors and delegated funding to provincial Departments of Finance and Price Control for local expenditure).
- Settlement report on foreign currency expenditures (converted to Vietnamese Dong).
- Explanation table of unit revenues and expenditures; increases and decreases compared to plans, reasons?
- Detailed explanation table of surplus funds carried over to the next year: in cash, in kind (converted to cash); unit's written proposal:
+ Amount deposited in the state budget.
+ Amount proposed to be carried over to the next year for continued settlement.
+ Amount proposed to be deducted from next year's allocation to offset previous year's reduction.
Settlement reports submitted to higher-level supervisory authorities must be confirmed by the provincial Department of Finance and Price Control and the State Treasury Branch where the unit maintains its account.
b) For provincial Departments of Finance and State Treasury Branches
b) For the Department of Finance and the State Treasury Agency
- Report on the consolidated final settlement of authorized budget funds transferred from the central government; the settlement must be detailed by each type of capital and specify the amount of funds carried over from the previous year, the amount transferred back during the year, the amount proposed for settlement, the amount already transferred back to the central government, the amount requested to be carried over to the next year for continued spending; recommendations of the Department of Finance for each type of capital; the final settlement report sent to the Ministry of Finance must be confirmed by the State Treasury Office at the same level.
- The figures in the final settlement report on state revenue collection and local budget expenditure before submission to the People's Committee and People's Council of the province or city must match accurately to the chapter - type - clause - category - item of the current State Budget Manual and correspond accurately to each level of budget (central budget, provincial budget, district budget).
- The final settlement report on state revenue collection and local budget expenditure before sending to the Ministry of Finance and the National Treasury Office must necessarily have confirmation from the Treasury Office at the same level, and conversely, the final settlement report from the State Treasury Office sent to the National Treasury Office must have confirmation from the financial authority at the same level.
The above are some guidelines for closing accounts at the end of the year and preparing the comprehensive final settlement of the state budget for 1993. During implementation, if there are any unclear points or difficulties encountered, please reflect them to the Ministry of Finance for study and provide comments for resolution.
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