Circular No. 108/2008/TT-BTC guiding the settlement of the state budget at year-end and the preparation and reporting of the annual state budget settlement.

CIRCULAR

Guidelines for Year-end Budget Settlement and Annual Preparation and Reporting of State Budget

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Based on Decree No. 221/2013/NĐ-CP dated December 30, 2013 of the Government stipulating the system of applying administrative handling measures for placement in compulsory drug rehabilitation facilities (hereinafter referred to as Decree No. 221/2013/NĐ-CP);

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance has issued several guiding documents on the year-end closing of state budget accounting books and annual preparation and reporting of state budget settlement: Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget; Circular No. 53/2005/TT-BTC dated June 23, 2005 of the Ministry of Finance guiding the preparation and review of annual budget settlement for basic construction investment capital from state budget sources; Decision No. 24/2006/QĐ-BTC dated April 6, 2006 and Decision No. 14/2007/QĐ-BTC dated March 15, 2007 of the Minister of Finance on the state budget accounting system and treasury operations; Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance guiding the examination, review, and notification of annual settlement for administrative agencies, public institutions, and budgets at all levels; Circular No. 27/2007/TT-BTC dated April 3, 2007 guiding the management and payment of investment capital and non-investment operating capital from state budget sources; Circular No. 130/2007/TT-BTC dated November 2, 2007 amending and supplementing certain points of Circular No. 27/2007/TT-BTC; and Circular No. 28/2007/TT-BTC dated April 3, 2007 guiding the management, allocation, payment, and settlement of investment capital from government bonds; Circular No. 133/2007/TT-BTC dated November 14, 2007 amending and supplementing certain points of Circular No. 28/2007/TT-BTC of the Ministry of Finance.

To ensure uniformity in the year-end budget processing and annual state budget settlement, the Ministry of Finance provides guidance on certain aspects of year-end state budget processing and annual preparation and reporting of state budget settlement as follows:

I. YEAR-END STATE BUDGET PROCESSING WORK:

1. Expenditure and Advance Payment Time Limits:

The expenditure and advance payment time limit (including advance payment for basic construction investment) for tasks allocated in the annual state budget must be completed no later than December 31.

The deadline for budget users (including project sponsors) to submit withdrawal documents and vouchers for budget expenditures and advance payments to the State Treasury where transactions take place is no later than December 30.

In cases where work volume and tasks have been completed up to December 31, the expenditure time limit can be extended until January 31 of the following year; the deadline for budget users (including project sponsors) to submit expenditure documents and vouchers (including repayment of advances) according to regulations to the State Treasury where transactions take place is no later than January 25 of the following year.

2. Handling of Bank Account Balances:

The handling of bank account balances for budget funds as of December 31 shall be carried out as follows:

a) The bank account balances of the Communist Party of Vietnam's organs; units under the Ministry of National Defense and the Ministry of Public Security; and other units specified in legal documents may continue to be used until January 31 of the following year and settled into the previous year's budget.

If there are remaining balances in these accounts beyond January 31 of the following year and they need to be used in the subsequent year, the budget user must reconcile the account balances with the State Treasury where transactions take place no later than February 10 of the following year, and detail the remaining balance according to the Item, Clause, Section, Subsection in Table 01/ĐVDT attached hereto as the basis for transferring the balance to the next year. Based on the reconciliation results, the State Treasury will reduce expenditures (if already recorded as expenditures) or reduce advances (if already recorded as advances) from the previous year's budget, increase allocations for the current year's budget; simultaneously, transfer the remaining budget forecast from the previous year (corresponding to the transferred bank account balance) to the current year's budget forecast.

The State Treasury will prepare detailed reports by primary budget unit and send them to the financial authority at the same level for monitoring. When using, recording, and settling into the current year's budget according to regulations.

b) For balances in bank accounts specified in Point a of this Item that are not needed further and balances in bank accounts of other units (if any) must be returned to the state budget. The State Treasury where transactions take place will require the budget user to report the balance details according to the State Budget Schedule for the State Treasury to return to the budget and reduce expenditures or advances.

c) Balances in bank accounts of commune-level budgets (if any) may be transferred to the next year's budget for use according to regulations.

3. Handling of Remaining Budget Projections:

a) As of January 31 of the following year, remaining budget projections allocated to units, projects, and works that have not been used or have not been fully utilized (referred to as remaining budget projections) cannot be spent further and will be canceled, except for cases specified in Point b of Article 3, Chapter I of this Circular and cases approved for continued spending by the Minister of Finance (for central budget) or the Chairman of the People's Committee or the head of the authorized financial agency (for local budget). Cases eligible for consideration and approval for continued spending in the following year include:

- Tasks added in the fourth quarter.

- Tasks to address disease outbreaks, fires, natural disasters (dikes, embankments, culverts, flood control and drainage water conservancy projects, storm shelters for fishing boats, traffic safety projects, schools, hospitals, etc.).

- Counterpart funds for ODA and non-reimbursable aid projects.

- Investment capital for other basic construction projects meeting the following conditions:

+ Projects allocated for the purchase of imported equipment, which have tendered, signed contracts, opened letters of credit, made deposits, or partially paid according to the contract but the goods have not arrived in time for timely payment.

+ Projects that have been allocated sufficient capital according to the approved investment decision to complete and put into use (capital is not allocated in the next year's budget estimate).

+ Projects that have been allocated capital for compensation and land clearance where the compensation and land clearance plans and budgets have been approved by the competent authority.

+ Overseas representative office investment projects that have completed all necessary investment procedures.

 - Other necessary cases.

The examination and transfer of budget surplus shall be carried out as follows:

 Budgetary units (including project sponsors) submit a written request accompanied by relevant documents (for regular expenses, it also includes confirmation from the State Treasury at the transaction location - original copy, according to Form 02/ĐVDT issued together with this Circular); the first-level budget unit aggregates and submits to the financial agency at the same level for examination and transfer (accompanied by relevant documents, a summary of the budget surplus of each budgetary unit, and confirmation from the State Treasury at the transaction location - original copy).

The deadline for the first-level budget unit under the central budget to send the application file for examination and transfer to the Ministry of Finance is no later than February 15 of the following year; the Ministry of Finance must complete the examination and transfer before March 1 of the following year. The deadlines for submitting the application file and completing the examination and transfer for budgetary units under local budgets are determined by the Chairman of the Provincial People's Committee but must ensure completion before March 1 of the following year. For village-level budgets, the Village People's Committee sends a written request to the State Treasury at the transaction location no later than February 15 of the following year.

 The implementation of transferring the budget surplus to the next year's budget is carried out as follows:

In cases where the competent authority accepts in writing the transfer of the budget surplus to the next year's budget for continued expenditure (including both regular expenses and development investment), based on the written document from the competent authority, the financial agency (for the central budget, provincial budget, and county budget) and the State Treasury at the transaction location (for village-level budget) will transfer the previous year's budget surplus to the next year's budget. If the State Treasury at the transaction location has not yet implemented the accounting system applicable to the financial management information system (TABMIS), based on the written document from the competent authority, the State Treasury at the transaction location will transfer the previous year's budget surplus to the next year's budget.

After transferring the budget surplus to the next year's budget, when using, recording, and settling accounts in the next year's budget, it shall be done according to the prescribed regulations.

By March 15 of the following year, if there is no written document from the competent authority accepting the transfer of the budget surplus to the next year's budget for continued expenditure, the budget surplus will be canceled.

b) The budget surplus of cases allowed to be transferred to the next year's budget for continued expenditure according to the prescribed regulations (the competent authority does not need to examine and transfer) include:

- Autonomous funds of state agencies implementing the self-management and self-responsibility system for personnel quotas and administrative management expenses;

- Regular operating expenses of public service units implementing the self-financing mechanism;

- Funds for implementing programs, projects, and research topics in the field of science and technology during their implementation period, assigned or contracted by the competent authority or signed with the Program Director;

- Operating expenses of the Communist Party of Vietnam at all levels;

- Support funds for creative works, cultural-artistic works, and press activities (excluding regular operating support funds);

- Funds for policies towards persons who have rendered meritorious services to the revolution managed by the labor, invalids, and social affairs sector; medical examination and treatment expenses for children under six years old; medical examination and treatment expenses for the poor.

 - Border demarcation, maintenance, and boundary marker installation funds;

- Salary reform implementation funds;

- Funds for drafting normative legal documents;

 - National press implementation funds;

- Other funds permitted to continue to be used according to the prescribed regulations. The transfer of the budget surplus of these cases shall be carried out as follows:

 By no later than February 10 of the following year, the budgetary unit reconciles the budget surplus with the State Treasury at the transaction location according to Form 03/ĐVDT issued together with this Circular.

Based on the results of the reconciliation of the budget surplus, the State Treasury at the transaction location is responsible for transferring the previous year's budget surplus to the next year's budget.

The State Treasury will prepare detailed reports by primary budget unit and send them to the financial authority at the same level for monitoring. When using, recording, and settling into the current year's budget according to regulations.

c) The budget surplus of various levels of budget that are allowed by the competent authority or according to the prescribed regulations to be transferred to the next year's budget, such as reserves, unallocated budgets (if any), unused government bond issuance funds, and excess revenues compared to the budget estimates of various levels of budget, can be transferred to the next year's budget. Financial agencies and the State Treasury at the transaction location shall transfer the previous year's budget surplus to the next year's budget according to the provisions in Subpoint a, Point 3, Section I of this Circular.

4. Time for adjusting final accounts of the budget:

The time for adjusting final accounts of budgets at all levels (including the central budget, provincial budget, county budget, and village-level budget) is until January 31 of the following year.

5. Handling temporary advance balances after the adjustment period for final accounts of the budget:

By December 31, temporary advances (including temporary advances for basic construction investment) in the budget according to the regulations, if not settled, can be settled during the adjustment period for final accounts and recorded and settled in the previous year's budget. Budgetary units (including project sponsors) are responsible for settling temporary advances with the State Treasury before the end of the adjustment period for final accounts of the budget. State Treasuries at all levels are responsible for urging units to settle temporary advance funds within the prescribed time limit.

After the adjustment period for final accounts, remaining temporary advances (called temporary advance balances) shall be handled as follows:

a) The temporary advance balance of cases specified in Subpoint b, Point 3, Section I of this Circular and the temporary advance for construction investment capital under the prescribed regulations that have not been recovered shall be transferred to the budget of the following year for payment, without the financial authority having to examine the transfer.

By no later than February 10 of the following year, the budget-using unit (including the project owner) shall reconcile the temporary advance balance with the State Treasury according to Form 03/ĐVDT issued together with this Circular.

Based on the results of reconciling the temporary advance balance, the State Treasury at the transaction location shall reduce the previous year's budget advance, increase the next year's budget advance: simultaneously transferring the previous year's budget estimate balance (corresponding to the temporary advance balance) to the next year's budget estimate. The State Treasury shall prepare a detailed report according to the primary budget unit and send it to the same-level financial authority for monitoring. When using, accounting, and settling accounts into the next year's budget according to the prescribed regulations.

b) The temporary advance balance for regular expenditures that lack payment vouchers during the period of adjusting final accounts and are not permitted to be transferred to the following year under the prescribed regulations shall not be paid further; except for cases eligible for examination and transfer as specified in Subpoint a, Point 3, Section I of this Circular and must be accepted in writing by the financial authority to transfer to the following year's budget.

The examination and transfer of temporary advance balances for cases eligible for examination and transfer shall be carried out as follows:

The budget-using unit shall submit a written request to the directly superior budget unit along with related documents, including the confirmation of the temporary advance balance from the State Treasury at the transaction location - original copy (according to Form 02/ĐVDT issued together with this Circular); the primary budget unit shall compile and send to the same-level financial authority (along with related documents, a summary of the temporary advance balance of each budget-using unit and the confirmation of the temporary advance balance from the State Treasury at the transaction location - original copy) for the same-level financial authority to examine and transfer.

The deadline for the primary budget units under the central budget to submit the application for examination and transfer to the Ministry of Finance is no later than February 15 of the following year; the Ministry of Finance must complete the examination and transfer before March 1 of the following year. The deadlines for submitting applications for examination and transfer and the examination and transfer period for budget units under local budgets shall be determined by the People's Committee Chairman of the province but must ensure completion before March 1 of the following year. For village-level budgets, the People's Committee of the village shall submit a written notice to the State Treasury at the transaction location no later than February 15 of the following year.

If the financial authority accepts in writing the transfer of the temporary advance balance to the following year's budget, based on the acceptance document of the financial authority and the People's Committee of the village, the State Treasury at the transaction location shall reduce the previous year's budget advance, increase the next year's budget advance; simultaneously transferring the previous year's budget estimate balance (corresponding to the temporary advance balance) to the next year's budget estimate.

The State Treasury will prepare detailed reports by primary budget unit and send them to the financial authority at the same level for monitoring. When using, recording, and settling into the current year's budget according to regulations.

By March 15 of the following year, for cases without written approval from the financial authority to transfer the temporary advance balance to the following year's budget, the State Treasury shall recover the temporary advance by reducing the previous year's budget advance; simultaneously recording the temporary advance according to the Type and Item within the next year's budget estimate allocated to the unit, if the next year's budget estimate does not allocate or allocates less than the amount to be recovered, the State Treasury shall notify the same-level financial authority to take appropriate measures.

6. Notification of the results of the end-of-year examination and transfer of funds to budget units at all levels:

The notification document from the competent authority regarding the balance of the budget estimate and the temporary advance balance transferred to the following year's budget as stipulated in Subpoint a, Point 3, and Subpoint b, Point 5, Section I of this Circular must detail each budget-using unit (detailed according to the Type and Item of the State Budget Schedule) and be sent to the same-level State Treasury for coordination. Based on the notification document from the competent authority, the primary budget unit shall notify each budget-using unit according to the prescribed form about allocation and budget assignment (not combined with the next year's budget for reallocation).

7. Handling the balance of the authorized expenditure deposit account:

The balance of the authorized expenditure deposit account as of December 31 (if any), the State Treasury must return to the authorized level budget and record a reduction in the previous year's budget expenditure of the authorized level budget, except where permitted to carry over to the following year under the prescribed regulations. In case of continued use, the authorized expenditure receiving unit shall report to the authorizing agency (with relevant documents and confirmation from the State Treasury at the transaction location regarding the balance of the authorized expenditure deposit account returned to the authorized level budget) for consolidation and submission to the same-level financial authority for examination and handling according to the procedures and deadlines specified in Subpoint b, Point 5 (except for reconciliation and accounting according to the procedures specified in Subpoint a, Point 2) of Section I of this Circular. In case of permission to carry over to the following year under the prescribed regulations (no examination required by the competent authority), the handling shall follow the procedures and deadlines specified in Subpoint a, Point 2, Section I of this Circular.

8. Recording revenue and expenditure into the state budget:

a) Revenue from fees, charges, and proceeds from public services that must be recorded as revenue and expenditure in the state budget shall be processed according to the prescribed regulations for recording revenue and expenditure into the state budget; the financial authority shall complete the revenue and expenditure recording procedures and send them to the State Treasury no later than January 30 of the following year. The recorded expenditure in the state budget is the actual expenditure according to the prescribed regulations; the recorded revenue in the state budget must correspond to the recorded expenditure. Unrecorded revenue that has not yet been recorded into the state budget shall continue to be monitored and recorded into the state budget when the unit has actually expended according to the prescribed regulations.

b) Borrowed capital and foreign aid must be recorded as income and expenditure in the state budget according to the prescribed regulations; financial authorities shall complete the recording procedures and send them to the State Treasury no later than January 30 of the following year. In cases where it supplements the lower-level budget, the financial authority must complete the recording procedures and send them to the State Treasury no later than January 15 of the following year for the central budget, January 20 for the provincial budget, and January 25 for the district budget.

When performing the recording procedures, financial authorities must attach the approval notice of the budget estimate, a detailed list of amounts according to each using unit, each project, according to Chapter, Type, Clause, Section, and Subsection as stipulated in the State Budget Item List, to be sent to the first-level budget units directly under their jurisdiction or lower-level financial authorities (in cases of supplementing the lower-level budget) and the State Treasury at the same level for timely and full accounting and settlement into the budget according to the prescribed regulations.

c) Any income and expenditure recorded in the state budget in a given year shall be settled in the income and expenditure of that year's state budget.

9. Expenditure transfer from the state budget and annual budget settlement:

The amount of annual budget expenditure settlement is the actual expenditure that has completed payment procedures within the annual budget period according to the prescribed regulations and the expenditure transferred to the next year's budget:

a) Expenditure transferred to the next year's budget includes:

- The remaining budget estimate transferred to the next year's budget;

- The remaining advance payments transferred to the next year's budget;

- The remaining deposit account balances of budget funds (including authorized deposit accounts - if any) transferred to the next year's budget;

- The remaining budget estimates of all levels of budgets approved by competent authorities or according to the prescribed regulations transferred to the next year's budget such as reserves, unallocated budget estimates (if any), unused government bond issuance funds, and the increase in revenue compared to the budget estimates of all levels of budgets.

b) The accounting of the next year's budget transfer is carried out as follows:

Based on the tasks and total funds transferred to the next year's budget as stipulated in Points 2, 3, 5, and 7, Part I of this Circular, the financial authority (People's Committee of communes for commune budgets) shall issue a document to the State Treasury at the transaction location to have the State Treasury carry out the transfer to the next year's budget according to the State Budget Item List: expenditures transferred to the next year are accounted for in Section 0950, corresponding Subsection; revenues from sources transferred from the previous year are accounted for in Section 0900, corresponding Subsection; accounted for in Chapter "other budget relations," Type 340, Clause 369 (other financial relations).

10. Handling surplus in the state budget:

Based on the resolution approving the annual state budget settlement of the National Assembly (for the central budget), People's Councils (for local budgets) to handle the surplus in the state budget (if any) according to the provisions of the State Budget Law. Financial authorities at the same level (People's Committee of communes for commune budgets) shall issue a document to the State Treasury at the transaction location to process the transfer into the financial reserve fund, transferred into the next year's budget revenue according to the prescribed regulations.

II. ANNUAL SETTLEMENT AND REPORTING OF THE STATE BUDGET:

1. Accounting and Settlement of Salary Reform Funding:

a) State budget funding for salary reform assigned by the competent authority in a given year shall be expended and settled in that year's budget. If not spent or not fully spent, it shall be handled according to the provisions of Subpoint b, Point 3, Part I of this Circular.

b) Funding for salary reform from non-state budget revenue sources (such as income from service activities of public institutions with income after tax payment according to the prescribed regulations) shall not be accounted for or settled into the state budget.

2. Reconciliation of Revenue and Expenditure in the State Budget::

Financial authorities, the State Treasury, and revenue collection agencies (Tax and Customs) at the same level shall urge relevant agencies to process or process according to their authority temporary receipts and temporary holds to be paid into the state budget according to the prescribed regulations; reconcile the state budget revenue generated in the area and the revenue and expenditure of all levels of the budget within their management scope (including supplementary revenue and expenditure between budget levels and the issuance and payment of bonds and bills - if any) ensuring accuracy both in total and in detail according to the State Budget Item List before preparing and reporting the annual state budget settlement.

3. Settlement of State Budget Expenditure for Research Programs, Projects, and Other Projects (referred to as projects) with a duration exceeding 12 months:

a) For projects managed under regular expenditure mechanisms, they shall be settled according to the regular expenditure settlement regulations.

b) For projects managed under investment construction mechanisms, they shall be settled according to the investment construction expenditure settlement regulations.

The funds already settled annually according to the fiscal year shall be separately tracked and accumulated annually as the basis for settling the entire project upon completion according to the regulations.

4. Responsibility for Preparing and Reporting Annual State Budget Settlements by Primary Budget Units:

Primary budget units shall prepare a full settlement of the state budget funds allocated to their subordinate budget units that have been expended (including borrowed capital, non-repayable aid, authorized funds for administrative units at lower levels, and recorded income and expenditure within the fiscal year according to the prescribed regulations), to be submitted to the financial authority at the same level within the prescribed time limit. The settlements of primary budget units must match the figures of their subordinate budget units approved and notified by the competent authority regarding the total and details according to the State Budget Item List. The settlements of budget-using units must match the actual expenditures verified by the State Treasury at the transaction location.

5. Handling of Violations Discovered During the Review, Audit, Inspection, and Audit of State Budget Settlements:

When reviewing, examining, auditing, and conducting financial audits of the annual final accounts report of the state budget, if any improper expenditures or insufficient conditions for settlement are discovered, they shall be handled or recommended to be handled as follows: If there are improper expenditures, they must be fully recovered for the state budget; if there are insufficient conditions for settlement, the procedures for settlement must be completed according to regulations. Primary budget units are responsible for compiling and submitting the results of the review of final accounts to the same-level finance authority according to the prescribed regulations.

6. Handling and reporting the results of handling recommendations from audit and financial audit agencies:

Budget units and localities subject to audit and financial audit must thoroughly handle and report the results of handling the recommendations from the audit agency and the State Audit Office to the higher-level budget unit and higher-level finance authority. The primary budget unit compiles and reports to the same-level finance authority according to Form 12 of Appendix 8 as stipulated in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. Lower-level finance authorities compile and submit to higher-level finance authorities according to Form 11 of Appendix 8 as stipulated in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance.

7. Reporting on the explanation of the final accounts of the state budget:

The annual final accounts explanatory report of budget units and local government budgets must clearly and detailedly explain the reasons for increases or decreases in revenue and expenditure for each task and sector compared to the budget approved by the competent authority, the situation of cost savings and the use of such savings. For local government budgets, it must also detail: other revenues outside the budget, other expenditures outside the budget; use of reserves; use of increased local budget revenue; use of excess revenue bonuses from higher-level budgets; implementation of important tasks as decided by

8. Finalizing allocated funds:

In cases where allocated funds are assigned within the primary budget unit's budget plan under the allocating budget level, the primary budget unit shall prepare and report the final accounts of the state budget for both the allocated funds and directly managed funds to the same-level finance authority according to regulations; the recipient of the allocation does not finalize the allocated funds with the same-level finance authority.

9. Finalizing expenditures from education bond issuance funds and government bond funds;

a) Construction investment expenditures from education bond funds (if any remaining) are consolidated into the final accounts of the budget unit and local budget according to regulations; at the same time, localities must submit detailed reports separately to the Ministry of Finance as prescribed.

b) Construction investment expenditures from government bond funds, project sponsors, budget units, State Treasury, and finance authorities at all levels must submit separate reports, not consolidated into the final accounts of the budget unit or locality.

c) Project sponsors report to their supervisory authorities, which, along with the State Treasury, are responsible for compiling and reporting to the same-level finance authority; lower-level finance authorities are responsible for compiling and reporting to higher-level finance authorities the detailed figures of the final accounts of expenditures for school and classroom construction, hospital construction, transportation projects, irrigation works, etc., from education bond funds (if any remaining) and government bonds according to regulations, attached to the annual final accounts of the state budget; the Ministry of Finance consolidates them into the final accounts according to regulations.

10. Submitting the final accounts report of the state budget approved by the People's Council:

Local People's Committees must submit the annual final accounts report of the state budget to the higher-level finance authority within the deadline specified in Point 7 of Section V of Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. After the People's Council approves the final accounts, within five days, the finance authority sends the People's Council resolution approving the final accounts report of the state budget to the higher-level finance authority for the basis of final accounts examination and consolidation into the final accounts of the state budget according to regulations. In cases where the final accounts approved by the People's Council differ from those submitted by the People's Committee, the finance authority must have the People's Committee sign and submit supplementary reports on the differences to the higher-level finance authority.

11. Forms for final accounts of the state budget:

Follow the provisions of Circular No. 59/2003/TT-BTC dated June 23, 2003, Circular No. 53/2005/TT-BTC dated June 23, 2005, Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance, Decision No. 24/2006/QĐ-BTC dated April 6, 2006, and Decision No. 14/2007/QĐ-BTC dated March 15, 2007 of the Minister of Finance, and the guidance provided in this Circular. Specifically, include:

a) Administrative agencies and public service units prepare and submit final accounts according to Circular No. 53/2005/TT-BTC dated June 23, 2005, and Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance, and the forms: Form 12 of Appendix 8 attached to Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. Central budget primary units submit final accounts to the Ministry of Finance. Central budget primary units submit final accounts to the Ministry of Finance two copies accompanied by electronic data files (one copy sent to the State Budget Department of the Ministry of Finance with accompanying electronic data files or transmitted via email to: [email protected]); simultaneously send one copy of the final accounts (in writing) to the State Audit Office. The Ministry of National Defense and the Ministry of Public Security send one copy of the final accounts in writing to the Ministry of Finance.

b) Provincial Departments of Finance establish explanatory reports on final accounts and annual state budget revenue reports; local government revenue and expenditure reports annually for approval by the provincial People's Committee and submission to the Ministry of Finance, concurrently sending to the State Audit Office according to the prescribed forms in Circular No. 59/2003/TT-BTC dated June 23, 2003, and Circular No. 53/2005/TT-BTC dated June 23, 2005, except Form 02/QT in Appendix 8 issued together with Circular No. 59/2003/TT-BTC dated June 23, 2003, which is replaced by Form 01/TC attached to this Circular; simultaneously send electronic data files to the Ministry of Finance (State Budget Department) or transmit via email to: [email protected].

For the report on the authorized budget expenditure of the central government budget, prepare and submit the report in accordance with the provisions set out in Point 8, Section II of this Circular.

c) The deadline for submitting the annual final account of the state budget shall be implemented in accordance with the provisions of point 7.4.2 of Section V of Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. Beyond this deadline, primary budget units and subordinate budgets that fail to submit their annual final accounts within the prescribed time will have their state budget funds from the Office of the primary budget unit temporarily suspended, except for salaries, salary allowances, subsidies, scholarships, and certain essential expenditures to ensure the operation of the administrative apparatus (for primary budget units), or the transfer of additional funds to subordinate budgets (for subordinate budgets) will be temporarily halted until the final account of the state budget is received.

d) Simultaneously with the periodic reporting annually as required by the Ministry of Finance regarding the accounting system of the state budget and current treasury operations, Circular No. 53/2005/TT-BTC dated June 23, 2005 of the Ministry of Finance, the State Treasury shall report to the financial authorities at the same level on the use of funds and the results of handling various balances according to the attached tables in this Circular. The State Treasury must submit these reports before March 15 of the following year (for commune-level budgets and district-level budgets), and before April 1 of the following year (for provincial-level budgets and central budgets).

III. IMPLEMENTATION: 

 This Circular takes effect fifteen days after its publication in the Official Gazette and applies to the processing of the end-of-year budget and the preparation and submission of the annual final account of the state budget starting from the 2008 fiscal year, replacing Circular No. 101/2005/TT-BTC dated November 17, 2005 of the Ministry of Finance. Any provisions contrary to the regulations set forth in this Circular regarding the closing of books, end-of-year budget processing, and the preparation and submission of the annual final account of the state budget shall be abolished.

 Ministries, ministerial-level agencies, agencies under the Government, other central agencies, People's Committees of provinces and centrally-administered cities, and the State Treasury are responsible for guiding subordinate units and lower levels to implement the work of end-of-year budget processing and the preparation and submission of the annual final account of the state budget in accordance with the provisions of this Circular. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for consideration and specific guidance.

Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for consideration and specific guidance./.