Decision No. 1188/QD-BTC Regarding the Approval of the "State General Accounting" Project - 1188/QD

Pursuant to …;

Regarding the approval of the Project "State General Accounting"

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THE MINISTER OF FINANCE

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

Pursuant to the Law on Accounting No. 03/2003/QH11 dated June 17, 2003;

Pursuant to the Government's Decree No. 215/2008/NĐ-CP dated December 23, 2013 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 128/2004/NĐ-CP dated May 31, 2004 on detailed regulations and guidance for implementation of certain provisions in the field of state accounting;

Pursuant to the Prime Minister's Decision No. 108/2009/QD-TTg dated November 13, 2009 on the functions, tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;

Pursuant to the Prime Minister's Decision No. 138/2007/QD-TTg dated August 21, 2007 on the approval of the Strategy for the Development of the State Treasury until 2020;

Pursuant to the Prime Minister's Decision No. 480/QD-TTg dated March 18, 2013 on the approval of the Strategy for Accounting and Auditing until 2020 with a vision to 2030;

Pursuant to the Ministry of Finance's Decision No. 2261/QD-BTC dated September 10, 2013 on the approval of the plan to implement the "Strategy for Accounting and Auditing until 2020 with a vision to 2030";

Considering the proposal of the Director-General of the State Treasury,

DECISION:

Article 1. Approves the State General Accounting Project (SGAP) to fulfill the function of State General Accounting of the State Treasury (ST) with the following main contents:

1. Concept and scope of State General Accounting

SGAP is the organizational model that operates the elements constituting state accounting to achieve the goal of organizing financial accounting work, summarizing, and presenting government financial information at the national level and local government reports within each jurisdiction. The principles of recording and summarizing financial report information of SGAP must ensure compliance with international standards and practices in public accounting while also being suitable to Vietnam's actual conditions.

The scope of SGAP reports includes all financial information about the state, including: state assets, resources, and obligations, information on the state budget, extra-budgetary funds, state capital in enterprises, etc.

2. Objectives of State General Accounting

2.1. Overall objectives:

Establishing a unified state accounting system based on the application of modern information technology to meet the requirements of budget management and public finance management, recording, summarizing, and presenting state financial information in the form of government financial reports (local government reports), including all accounting objects, ensuring timeliness, completeness, transparency, and compliance with international practices.

2.2. Specific objectives:

- By the end of 2015, complete the following specific contents:

+ Legal framework: Develop and perfect the necessary legal framework to implement the function of SGAP of the State Treasury (ST) based on centralized data from accounting units; unify accounting charts and methods consistent with international practices; gradually move towards accrual accounting for certain accounting objects. Ensure comprehensive information on accounting objects including: current status and movement of state assets; sources of formation of state assets; state budget revenue and expenditure figures; state capital, funds, administrative and public service units, and other units; government and local government debt situations, etc.

+ Organizational work: Organize accounting work at accounting units (ST and other units) in accordance with actual conditions. Organize accounting departments at units effectively, consistent with administrative structures and financial-budget management mechanisms, clearly defining the functions and responsibilities of units under the Ministry of Finance (Accounting and Audit Department, State Budget Department, ST), between the Ministry of Finance (ST) and ministries, sectors, and localities in building accounting policies; present information on state budget and state financial reports.

+ Information system: Implement the construction of an information system based on the application of information technology to quickly and accurately aggregate state financial information efficiently, timely, and comprehensively according to management requirements.

- From 2016 to 2020, organize nationwide implementation:

+ Continue to improve and operate the SGAP information system. The operation of the SGAP information system must ensure data security and confidentiality.

+ Summarize and present government financial reports (local government levels) to meet management requirements and comply with international practices. Build a state accounting information system; financial indicators for management operations, analysis, and forecasting in assessing the effectiveness of state budget revenue and expenditure; requirements for state budget preparation and allocation; assess the effectiveness of public spending, state financial strength and obligations, etc., to enhance the efficiency of using all state financial resources and economic policy planning.

2.3. Reports of State General Accounting

+ Financial situation report of the Government (or local government): Provide information on the current status and changes compared to the previous period of all state assets and sources of asset formation.

+ Activity results report: Reflect and evaluate the effectiveness of state budget management, results of state budget revenue and expenditure activities, and other activities of the Government (or locality) based on accrual accounting over a fiscal year (consistent with the budget year).

+ Report on changes in state assets: Reflect in value terms the increase and decrease in state assets, the difference between total state assets and total obligations of the state, etc., to provide information for a substantive assessment of state financial strength.

+ Cash flow statement: Reflect cash flows within the state budget along with information on the movement of cash flows in units under the state sector, providing information for monetary policy and treasury management.

+ Notes to financial statements: Analyze data and specifically evaluate the results of financial activities and budget management at both the general level and in each sector, serving the planning and formulation of macroeconomic policies nationwide and in various regions.

3. Applicable Subjects

The subjects to which the General State Audit Office applies include units of the State Treasury, revenue management agencies (Taxation, Customs), budgetary units at all levels, financial funds, state-owned enterprises, and other entities that receive, manage, and utilize state funds and assets.

4. Solutions and Implementation Plan for the Project

4.1. Period from 2014 to 2015

Prepare conditions for implementation regarding legal framework, organizational structure, information system establishment, including:

(1) Legal Framework Development

- Supplement and amend the Law on State Budget to specify contents related to the General State Audit Office, serving as a basis for issuing other documents;

- Supplement and amend the Accounting Law to specify contents related to the General State Audit Office, serving as a basis for issuing other documents;

- Issue a Government Decree on the General State Audit Office, detailing the Accounting Law to specify contents related to procedures, contents, and organizational structure, and information systems of the General State Audit Office;

- Issue Circulars guiding the Government Decree, specifying detailed contents of Decrees on the General State Audit Office;

- Issue a System of Public Accounting Standards (PAS) in Vietnam, clearly defining the objects and application contents for each standard;

- Issue accounting regulations for import and export taxes applicable to customs units, ensuring compatibility with the General State Audit Office;

- Issue domestic tax accounting regulations applicable to tax authorities, ensuring compatibility with the General State Audit Office;

- Issue accounting regulations for administrative and public institutions, financial funds, and local government finances, supplementing reporting information to access the General State Audit Office;

- Issue procedures for compiling reports for the General State Audit Office;

- Specify responsibilities of participating units and organizations in the General State Audit Office;

- Define principles for collaboration among participating units in the General State Audit Office.

(2) Organizational Structure

At the State Treasury, supplement accounting staff and establish an operational accounting structure:

- At the State Treasury, propose to the Ministry of Finance a plan to transform the current Audit Department into an Audit Bureau under the State Treasury, with the Bureau having a General Audit Office Room and other rooms within the Bureau;

- At provincial and municipal State Treasuries, supplement the General Audit Office tasks for the Audit Department under provincial and municipal State Treasuries; Some provinces and cities will be allocated General Audit Office teams under the Audit Departments;

- At district and county State Treasuries, supplement the General Audit Office tasks for the Audit Teams under district and county State Treasuries.

(3) Information System

- Design an appropriate information system to receive and compile reports; Establish operational procedures for the system, ensuring suitable and effective solutions for compiling General State Audit Office reports for the Government and local governments.

- Assign responsibilities to system participants to ensure operational and technical support activities of the system.

4.2. Period from 2016 to 2019

- Establish a General State Audit Office Implementation Committee and organize its operations and implementation across the country according to the approved timeline by the Ministry of Finance;

- Continue to study and issue and perfect the Public Accounting Standards System in Vietnam;

- Continue to improve the organizational structure of the General State Audit Office;

- Develop and implement the information system of the General State Audit Office;

- Specify principles to ensure security and confidentiality of the General State Audit Office's information system;

- Conduct evaluations and complete the legal framework, organizational structure, and information system contents after completion of implementation.

Article 2. Implementation

1. Based on the implementation plan and timeline of the General State Audit Office Project outlined in Appendix 01 (attached), subordinate units under the Ministry of Finance shall organize implementation according to assigned tasks, ensuring compliance with the project's content and timeline; submit periodic reports every six months to the State Treasury for consolidation and reporting to the Ministry of Finance.

2. Units need to proactively coordinate to unify handling plans; if exceeding authority, report to the Ministry of Finance for unified approval of handling plans related to mechanisms, policies, organizational structures, and information systems according to the responsibilities of each unit.

3. The State Treasury has the responsibility:

3.1. On the basis of the project's content and timeline, urge and monitor progress; submit periodic reports every six months to the Ministry of Finance on implementation results and proposed specific plans for the next six months.

3.2. Proactively develop training and capacity-building plans for staff to ensure sufficient capability, qualifications, and moral integrity to meet the requirements of implementing the General State Audit Office tasks according to the approved timeline.

3.3. Strengthen publicity and dissemination efforts so that relevant levels and sectors and the State Treasury staff fully understand the significance and responsibilities in implementing the General State Audit Office Project.

3.4. Develop and report to the Ministry of Finance on the mechanism for mobilizing and utilizing financial resources to implement the General State Audit Office Project, ensuring funding for policy and mechanism development; procurement of equipment and information systems; training, capacity building, and human resource development according to efficiency principles, avoiding waste.

1. The funding for the implementation of the policy on exemption and subsidy of tuition fees shall be guaranteed by the state budget in accordance with the provisions of the law on the decentralization of budget management.

The total estimated cost for developing and implementing the General State Audit Office Project from 2014 to 2019 is 182,059,000,000 VND (details of the costs are listed in Appendix 02 attached), of which the cost for building the information system only covers internal State Treasury system deployment.

Funding for the Project is guaranteed by the State Treasury from its operational budget.

Article 4. This Decision takes effect from the date of signature.

Article 5. The Director-General of the State Treasury, the Director of the Planning and Finance Bureau, the Head of the Accounting and Auditing Regulations Department, the Head of the State Budget Department, and the heads of related units are responsible for enforcing this Decision./.