Circular No. 137/2017/TT-BTC on examining, appraising, notifying, and summarizing annual settlement

CIRCULAR

Regulations on examination, verification, notification, and annual settlement compilation

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016, issued by the Government, detailing the implementation of certain provisions of the State Budget 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 Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on Fees and Charges;

At the proposal of the Director of the Administrative and Public Finance Department;

The Minister of Finance issues this Circular regulating examination, verification,  notification and annual settlement compilation.

Article 1. Scope of Regulation

1. This Circular stipulates the establishment, compilation and submission of annual settlement reports; examination, verification, notification and annual settlement compilation for state budget funds allocated by authorized authorities, other income from activities retained under prescribed regulations, and district and commune budgets.

2. For non-budget state financial funds, examination, verification and notification of annual settlements shall be carried out in accordance with this Circular and relevant regulations.

3. For public investment capital settlement, subsidy interest rate difference expenditure, management fee subsidy for the Vietnam Bank for Social Policies, the Vietnam Development Bank, the Eastern Sea Target Program - Islands, and project management board settlement shall be implemented in accordance with separate guidance documents.

Article 2. Applicability

1. State agencies, political organizations, political-social organizations.

2. Publicly funded institutions.

3. Political-social-professional organizations, social organizations, social-professional organizations, and other organizations using state budget funds (domestic budget, non-reimbursable foreign aid, foreign debt, retained fees, other activity income).

4. Other organizations and individuals related to the state budget.

Article 3. Establishment, Compilation and Submission of Annual Settlement Reports

1. For budget users:

Budget users establish and submit reports to their direct higher-level budgetary units or to the same-level finance authority (in cases without a higher-level budgetary unit) as follows:

a) Annual settlement reports for examination and notification of annual settlements; annual financial reports for data and information cross-checking: shall be conducted in accordance with Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance guiding accounting systems for administrative and public services (hereinafter referred to as Circular No. 107/2017/TT-BTC).

For the year 2017, it shall be implemented in accordance with Decision No. 19/2006/QĐ-BTC dated March 30, 2006 of the Minister of Finance on the issuance of accounting systems for administrative and public services (hereinafter referred to as Decision No. 19/2006/QĐ-BTC) and Circular No. 185/2010/TT-BTC dated November 15, 2010 of the Ministry of Finance guiding amendments and supplements to the accounting systems for administrative and public services issued together with Decision No. 19/2006/QĐ-BTC (hereinafter referred to as Circular No. 185/2010/TT-BTC);

b) Annual settlement reports on national reserve funds (if applicable) according to the guidelines of the Ministry of Finance on national reserve plans and state budget allocations for national reserves, and national reserve accounting systems;

c) Annual settlement reports on non-budget state financial funds (if applicable) established according to Form No. 01 issued together with this Circular.

2. For higher-level budgetary units of budget users:

Higher-level budgetary units compile and establish annual settlement reports, annual financial reports of their own units (if applicable) and of subordinate budgetary units that have been examined and approved in accordance with this Circular, and submit them to their direct higher-level budgetary units, including:

a) Annual settlement reports as stipulated in Circular No. 107/2017/TT-BTC and financial reports according to the guidelines of the Ministry of Finance for financial reports applicable to higher-level accounting units;

For the year 2017, it shall be implemented in accordance with Decision No. 19/2006/QĐ-BTC and Circular No. 185/2010/TT-BTC;

b) Annual settlement reports on non-budget state financial funds (if applicable) established according to Form No. 01 issued together with this Circular;

c) Compilation reports on service revenue of publicly funded institutions (excluding state budget funds) established according to Form No. 02 issued together with this Circular;

d) Notifications of annual settlement examination results for subordinate budgetary units as stipulated in this Circular;

In cases where higher-level budgetary units have project management boards directly supported by operational funding from the state budget, higher-level budgetary units compile annual settlement reports based on the approved project management board's revenue and expenditure management settlement reports in accordance with Circular No. 72/2017/TT-BTC dated July 17, 2017 of the Ministry of Finance on the management and use of revenues from project management activities of project sponsors and project management boards using state budget funds.

3. For primary budgetary units:

Primary budgetary units compile and establish annual settlement reports, annual financial reports of their own units (if applicable) and of subordinate budgetary units that have been examined and approved in accordance with this Circular, and submit them to the same-level finance authority, including reports as stipulated for higher-level budgetary units in Clause 2 of this Article. If a primary budgetary unit is also a budget user, it shall follow the forms as stipulated for budget users in Clause 1 of this Article. Additionally, primary budgetary units shall prepare explanatory annual settlement reports compared to the budget, evaluating the effectiveness of budget spending linked to the performance of the unit, sector, program, and objectives assigned, and submit them to the same-level finance authority (according to Form No. 03 issued together with this Circular).

4. For budgets at all levels:

a) People's Committees at the commune level establish and submit annual settlement reports on state budget revenue in their areas and commune-level budget revenue and expenditure in accordance with Circular No. 344/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance on commune budget management and other financial activities of communes, wards, and towns (hereinafter referred to as Circular No. 344/2016/TT-BTC);

b) Financial agencies at all levels shall compile, prepare, and submit the final account report on state budget revenue within their jurisdiction and the final account report on local budget revenue and expenditure in accordance with the provisions of Clauses 6, 7, and 8 of Article 44 of Decree No. 163/2016/ND-CP dated December 21, 2016, of the Government detailing certain provisions of the State Budget Law (hereinafter referred to as Decree No. 163/2016/ND-CP) and Circular No. 342/2016/TT-BTC dated December 30, 2016, of the Ministry of Finance detailing and guiding the implementation of Decree No. 163/2016/ND-CP.

Article 4. Deadline for submitting the annual final account report

1. Primary budget units shall specify the deadlines for subordinate budget units to submit the final account reports but must ensure that the final account reports are submitted to the financial agency at the same level within the deadlines stipulated in Clauses 3 and 4 of this Article.

2. The People's Council at the provincial level shall specify in detail the deadline for the People's Committee to submit the final account report to the agencies specified in Clause 2 and Clause 3 of Article 69 of the State Budget Law.

3. The People's Committee at the provincial level shall specify in detail the deadline for submitting the final account report on the local budget of budgetary units in the locality but must ensure that the deadline for submitting the final account report on the local budget complies with the provisions of Article 69 of the State Budget Law and Article 44 of Decree No. 163/2016/ND-CP.

4. Primary budget units under the central budget shall submit the annual final account report to the Ministry of Finance in two copies (one copy to be sent to the State Treasury) and one copy to the National Audit Office before October 1 of the following year. For the detailed final account report on state budget revenue and expenditure according to the state budget classification, in addition to the written report, the unit (except the Ministry of Defense, the Ministry of Public Security, and the Central Party Office) shall send an electronic data file in Excel format to the email address: [email protected] and bear responsibility for the completeness and accuracy of the data file. After the Ministry of Finance issues the audit result of the final account, the primary budget unit shall send the revised data file (if any) to ensure the accuracy of the figures.

5. The People's Committee at the provincial level shall submit the annual final account report to the Ministry of Finance in two copies (one copy to be sent to the State Treasury) and one copy to the National Audit Office before October 1 of the following year. Within five working days from the date the final account report is approved, the People's Committee at the provincial level shall send the Resolution of the People's Council at the provincial level approving the final account to the Ministry of Finance and the National Audit Office. In case the People's Council at the provincial level approves the final account which differs from the final account report, the People's Committee at the provincial level shall resubmit the adjusted final account report to the Ministry of Finance and the National Audit Office.

The Department of Finance shall send an electronic data file in Excel format according to the model prescribed in Appendix 4 issued together with this Circular to the email address: [email protected] and bear responsibility for the completeness and accuracy of the data file. After the People's Council at the provincial level approves the final account, the Department of Finance shall send the revised data file (if any) to the aforementioned email address to ensure the accuracy of the figures.

Article 5. Procedures for reviewing, auditing, and announcing the annual final account

1. Higher-level budget units of budget-using units:

The higher-level budget unit shall review and announce the results of the annual final account review for subordinate budget units in accordance with Article 6 of this Circular;

Prior to reviewing the annual final account, the head of the higher-level budget unit shall notify the review plan to subordinate budget units, and simultaneously inform the primary budget unit to coordinate in implementing it.

2. Primary budget units:

The primary budget unit shall review and announce the results of the annual final account review for subordinate budget units (including affiliated offices of departments and ministries) in accordance with Article 6 of this Circular;

Specifically, for the final accounts of subordinate budget units that have been reviewed by the higher-level budget unit, the primary budget unit shall audit in accordance with Article 7 of this Circular;

Prior to reviewing the annual final account, the head of the primary budget unit shall notify the review plan to subordinate budget units, and simultaneously inform the financial agency at the same level to coordinate in implementing it.

3. Financial agencies at all levels:

a) For the final accounts of primary budget units at the same level: The financial agency shall audit and announce the results of the annual final account audit in accordance with Article 7 of this Circular. If the primary budget unit is also a budget-using unit, the financial agency shall implement the review and announce the results of the annual final account review in accordance with Article 6 of this Circular;

b) For the final accounts of district and commune budgets: The higher-level financial agency shall audit, announce the results of the audit, and consolidate the annual final account for subordinate district and commune budgets in accordance with Article 8 of this Circular;

Article 6. Examination and notification of examination results of annual settlement

1. Contents of annual settlement examination: Based on reports and documents provided by the unit and responsible for them, the annual settlement examination agency shall perform the following contents:

a) Checking the list of annual settlement reports and financial report lists prescribed in Clauses 1 and 2 of Article 3 of this Circular; in case they are not complete, requesting the examined unit to submit additional ones;

b) Checking revenues and expenditures occurring at the unit. Specifically:

- Checking the reasons for increases or decreases in the figures of annual settlement reports on fees, charges, and other state budget revenues compared to the approved budget estimates according to the laws on tax, fee, charge management, and other state revenue systems. For revenues from business operations and services, comparing and checking the figures based on the unit's annual financial report;

- Checking the state budget expenditure estimates assigned during the year, ensuring that they match the approved budget estimates (including initial budget estimates, supplementary and adjusted estimates during the year) in total and in detail by each spending category. For expenditure estimates from aid sources, implementing according to the regulations on state financial management for non-repayable aid sources, based on the assigned estimates and the recorded income and expenditure figures during the year according to the prescribed system;

- Checking the actual funds received confirmed by the National Treasury where transactions take place;

- Checking the figures of annual settlement expenditures, clarifying the reasons for increases or decreases compared to the approved budget estimates; examining the conditions for expenditures according to the regulations; only examining the figures of annual settlement expenditures within the assigned budget estimates for the year and those actually paid with the National Treasury;

- Checking the remaining funds carried over to the next year for use and payment, including provisional advance balances, surplus estimates, and budget deposit account balances (if any). For remaining funds not carried over to the next year for use and payment, they must be canceled or recovered and submitted to the state budget;

c) Checking the accounting entries of revenues and expenditures according to the national budget classification and fiscal year; matching the figures in the accounting books and annual settlement reports with vouchers and the confirmed figures of the National Treasury;

d) Checking the implementation of recommendations by authorized state agencies through inspection, audit, supervision, settlement examination, or settlement review activities;

đ) Commenting on the annual settlement based on the examination results;

2. When conducting the annual settlement examination, the annual settlement examination agency has the right:

a) Requesting the State Audit Agency or hiring independent auditors according to the auditing laws to audit the annual settlement reports of large-scale projects and programs to have additional grounds for the examination;

b) Requiring the examined unit to explain or provide necessary information, documents, and figures for the examination;

c) Excluding revenues and expenditures that violate regulations or are not included in the approved budget estimates. Requesting the examined unit to immediately pay the amounts due to the state budget according to the regulations: expenditures that violate regulations, expenditures not included in the approved budget estimates (except for cases involving ODA and preferential loans, non-repayable aid with separate agreements with sponsors, which should be implemented according to the agreements), remaining funds not carried over to the next year for use and payment, taxes due, and other amounts payable according to the regulations;

d) Requesting the return or proposing the authorized authority to request the return of amounts improperly paid to higher levels or the state budget. Handling according to their authority or proposing the competent authority to handle according to the law against the head of the unit who violates regulations and causes state budget losses;

đ) Requesting the examined unit to correct the figures in the annual settlement if there are errors or requiring the unit to prepare a new annual settlement report if deemed necessary;

e) Requesting the National Treasury where the examined unit opens transaction accounts to adjust the figures; implementing the cancellation of remaining funds carried over to the next year for use or recovering improper payments in cases where the examination results or reviews by other authorized authorities differ from the confirmed figures of the National Treasury;

3. Notification of annual settlement examination results:

a) Upon completion of the annual settlement examination, the annual settlement examination agency shall establish and sign the Annual Settlement Examination Record with the examined unit (according to Appendix 01, Forms 3a and 3b for the examination of the 2017 annual settlement; according to Appendix 01, Forms 1a, 1b, and 1c issued together with this Circular for the examination of annual settlements from 2018 onwards);

b) The examination agency shall issue a Notification of Annual Settlement Examination Results to the examined unit (according to Appendix 02, Forms 4a and 4b for the examination of the 2017 annual settlement; according to Appendix 02, Forms 2a, 2b, and 2c issued together with this Circular for the examination of annual settlements from 2018 onwards) and related units at the locations specified in Appendix 02 issued together with this Circular;

c) In case the examined unit does not sign the Annual Settlement Examination Record, the examination agency shall base the examination results to issue a Notification of Annual Settlement Examination Results to the examined unit and related units.

Article 7. Review and notification of the results of annual settlement review for budgetary units

1. Content of annual settlement review: Based on the annual settlement report and the approval notice of the annual settlement of the higher-level budgetary unit or the first-level budgetary unit sent according to Clause 2, 3 of Article 3 and Clause 3 of Article 6 of this Circular, the reviewing agency shall implement:

a) Checking the list of annual settlement reports and financial statements, and the approval notice of annual settlement according to Clause 2, 3 of Article 3 and Clause 3 of Article 6 of this Circular; in case they are not complete, requesting the reviewed unit to supplement them;

b) Checking the completeness and consistency of settlement figures. Specifically:

- Checking the consistency between the consolidated settlement figures of the first-level budgetary unit and the approval notices of annual settlement of subordinate units. In case the settlement figures of the first-level budgetary unit differ from those of the subordinate units' approval notices, requesting the first-level budgetary unit to explain and supplement for verification purposes. If the consolidation by the first-level budgetary unit is incorrect, verifying based on the figures of the subordinate units' approval notices;

- Checking the year-end balance of funds carried forward based on the figures of the previous year's approval notice of annual settlement or the adjustment notice of the previous year's annual settlement;

- Checking the actual received funds based on the confirmation of the State Treasury where transactions take place;

- Checking the settlement figures based on the approval notices of annual settlement of subordinate units within the allocated budget and the actual expenditures confirmed by the State Treasury;

- For revenues from business operations and services, the reviewing agency shall aggregate based on the consolidated service revenue report submitted by the unit;

c) Checking the increase or decrease in settlement figures compared to the state budget estimates assigned by the competent authority:

- Checking the reasons for the increase or decrease in settlement figures of fees, charges, and other state revenues compared to the assigned estimates according to the laws on tax, fee, charge management, and other state collection systems;

- Checking the state budget expenditure estimates assigned during the year, ensuring that they match the approved budget estimates (including initial budget estimates, supplementary and adjusted estimates during the year) in total and in detail by each spending category. For expenditure estimates from aid sources, implementing according to the regulations on state financial management for non-repayable aid sources, based on the assigned estimates and the recorded income and expenditure figures during the year according to the prescribed system;

- Checking the reasons for the increase or decrease in actual expenditure settlement figures compared to the estimates assigned by the competent authority;

d) Checking the implementation of recommendations made by state agencies with authority through audit, inspection, and annual settlement review activities;

đ) Commenting on the annual settlement based on the review results;

2. When conducting the annual settlement review, the reviewing agency has the right:

a) To request the reviewed unit to provide explanations or necessary information, documents, and figures for the annual settlement review. In case the unit does not fully supplement the approval notices of annual settlement within the required time limit, the finance agency will not conduct the annual settlement review for units without the approval notices of the competent authority;

b) To request the responsible agency to recover expenditures that violate regulations, expenditures not included in the assigned budget, and to return to the state budget expenditures that violate regulations, expenditures not included in the assigned budget, unspent advances that cannot be carried over to the next year, and other amounts due according to the prescribed regulations;

c) To request the reviewed unit and the approving agency to adjust the settlement figures of the budgetary unit if there are errors;

d) To request the return or propose the competent authority to request the return of amounts paid to the state budget that do not comply with the provisions of the law;

3. Notification of annual settlement review:

a) Upon completion of the annual settlement review, the annual settlement reviewing agency shall prepare and sign the annual settlement review record with the reviewed unit (according to Appendix 01, Forms 3a and 3b issued together with this Circular for the 2017 annual settlement review; according to Appendix 01, Forms 1a, 1b, and 1c issued together with this Circular for annual settlement reviews from 2018);

b) The reviewing agency shall issue the annual settlement review notification and send it to the reviewed unit (according to Appendix 02, Forms 4a and 4b for the 2017 annual settlement review; according to Appendix 02, Forms 2a, 2b, and 2c issued together with this Circular for annual settlement reviews from 2018 fiscal year) and related units at the address specified in Appendix 02 issued together with this Circular;

c) In case the reviewed unit does not sign the annual settlement review record, the reviewing agency shall base the review results to issue the annual settlement review notification and send it to the reviewed unit and related units.

Article 8. Reviewing, announcing review results, and compiling annual settlement for district and commune-level budget settlements

1. Based on the annual settlement reports submitted by the People's Committee of communes or subordinate financial agencies according to Clause 4, Article 3 of this Circular, the superior financial agency shall review the annual settlement of subordinate budgets in accordance with the following contents:

a) Checking the list of annual settlement reports according to the forms prescribed in Circular No. 344/2016/TT-BTC (for commune-level budgets) and Circular No. 342/2016/TT-BTC (for district-level budgets). In cases where information is incomplete, request the People's Committee of communes (for commune-level budgets) or the district-level financial agency (for district-level budgets) to supplement and resubmit.

b) Checking the completeness and consistency of settlement figures as prescribed. Specifically:

- Verifying the settlement revenue figures at all levels against the actual revenue figures deposited in the State Treasury;

- Verifying the supplementary figures from higher-level budgets to lower-level budgets against the figures provided by the superior financial agency and recorded through the State Treasury;

c) Checking the increase or decrease in settlement figures compared to the state budget estimates assigned by the competent authority:

- Checking the reasons for the increase or decrease in settlement figures of fees, charges, and other state revenues compared to the assigned estimates according to the laws on tax, fee, charge management, and other state collection systems;

- Verifying the annual budget expenditure plan assigned, ensuring consistency with the total and detailed figures across various spending areas as assigned by the competent authority (including initial budget allocations, additional and adjusted allocations during the year);

- Checking the reasons for the increase or decrease in actual expenditure settlement figures compared to the estimates assigned by the competent authority;

d) Checking the implementation of recommendations made by authorized state agencies through audit, inspection, and settlement review activities;

đ) Providing comments on the annual settlement based on the review results.

2. When conducting the review and compilation of annual settlements for lower-level budgets, the superior financial agency has the right:

a) To request the People's Committee of communes (for commune-level budgets) or the district-level financial agency (for district-level budgets) to provide additional necessary information and figures for the settlement review;

b) To require the settlement approval agency to rectify accounting discrepancies, recover improperly disbursed funds, and immediately remit any amounts due to the state budget according to regulations;

c) To request refunds or propose that the competent authority request refunds for improperly disbursed funds already paid into the state budget;

d) To require the settlement approval agency to correct settlement figures of budgetary units if errors are found; the lower-level People's Committee must submit corrected settlement figures to the same-level People's Council for adjustment if errors exist;

đ) To handle according to their authority or propose that the competent authority handle according to the law in cases of detected violations;

3. Notification of annual settlement review:

The superior financial agency conducts the review and issues the Annual Settlement Notification (Annex 03 attached to this Circular) to the reviewed agency and related agencies.

Article 9. Preparing, submitting, reviewing, auditing, and announcing annual settlements for delegated funds

1. State management agencies under lower-level budgets receiving delegated funds prepare annual settlement reports for the delegated funds according to Clause 1, Article 3 of this Circular and submit them to the state management agencies under the higher-level budgets that delegated the funds.

2. State management agencies under higher-level budgets review and announce the results of the review of the annual settlements for the delegated funds to the state management agencies under the lower-level budgets according to Article 6 of this Circular; they then incorporate these into their own annual budget expenditure settlements and submit them to the same-level financial agency.

3. The same-level financial agency conducts the review according to Article 7 of this Circular.

4. For delegated funds used to implement the Ordinance on Preferential Treatment for Persons Contributing to the Revolution, specific guidance will be provided by the Ministry of Finance.

Article 10. Responsibilities of agencies and units in reviewing, auditing, notifying, and compiling annual settlement reports

1. Responsibilities of budget-using units:

a) Shall be responsible for complying with state policies and regulations, the accuracy and honesty of settlement information and data, and the legality of documents provided to the settlement review and audit units; timely and fully provide all necessary files, documents, and vouchers for the settlement review and audit work;

b) Strictly implement recommendations from higher-level budgetary units or competent state agencies regarding adjustments to figures, accounting books, settlement reports, expenditures, and recovery of funds to the state treasury;

c) Within ten working days from receiving the settlement review notification or annual settlement adjustment notification from the higher-level budgetary unit (in cases under the higher-level budgetary unit), or the annual settlement review notification from the same-level financial agency, must fully implement all contents in the settlement review or adjustment notification and complete procedures to adjust settlement figures with the State Treasury where transactions take place;

In cases where the budget-using unit disagrees with the contents of the annual settlement review notification from the higher-level budgetary unit, it must submit a written document to the first-level budgetary unit for consideration and decision;

In cases where the budget-using unit disagrees with the contents of the annual settlement review notification from the first-level budgetary unit, it must submit a written document to the same-level financial agency of the first-level budgetary unit for consideration and decision;

In cases where the budget-using unit disagrees with the contents of the annual settlement review notification from the same-level financial agency, it must present the matter to the People's Committee at the same level (for first-level budgetary units under local government levels) or report to the Prime Minister (for first-level budgetary units under the central budget) for consideration and decision.

While awaiting the decision of the competent authority, the budget-using unit must comply fully with the contents of the settlement review notification issued by the competent authority;

2. Responsibilities of higher-level budgetary units of budget-using units:

a) Review and notify annual settlements and bear responsibility for the results of annual settlement reviews of subordinate budgetary units;

b) Upon receiving the annual settlement audit notification or annual settlement adjustment notification from the first-level budgetary unit, within ten working days, must fully implement all recommendations in the annual settlement audit notification and adjust the annual settlement review notifications for subordinate budgetary units;

In cases where the higher-level budgetary unit disagrees with the annual settlement audit notification from the first-level budgetary unit, it must submit a written document to the same-level financial agency of the first-level budgetary unit for consideration and decision. While awaiting the decision of the financial agency, the higher-level budgetary unit must comply with the annual settlement audit notification from the first-level budgetary unit;

3. Responsibilities of first-level budgetary units:

a) Guide subordinate budgetary units to properly implement regulations on annual settlement reviews and notifications; simultaneously compile and submit annual settlement reports according to the prescribed deadlines;

b) Review, notify annual settlements, and bear responsibility for the results of annual settlement reviews of subordinate budgetary units as stipulated in Article 6 of this Circular; audit and notify annual settlements of higher-level budgetary units of budget-using units as stipulated in Article 7 of this Circular;

c) Upon receiving the annual settlement audit notification from the same-level financial agency, within ten working days, must fully implement all recommendations in the annual settlement audit notification and adjust the annual settlement review notifications for subordinate budgetary units;

In cases where the first-level budgetary unit disagrees with the contents of the annual settlement review or audit notification from the financial agency, it must submit a written report to the same-level People's Committee (if it is a first-level budgetary unit under local government levels) or report to the Prime Minister (if it is a first-level budgetary unit under the central budget) for consideration and decision;

While awaiting the decision of the same-level People's Committee or the Prime Minister, the first-level budgetary unit must comply with the annual settlement audit notification from the financial agency;

4. Responsibilities of financial agencies at various levels:

a) Review and notify annual settlements for first-level budgetary units that are also budget-using units as stipulated in Article 6 of this Circular;

b) Audit and notify annual settlements for same-level first-level budgetary units as stipulated in Article 7 of this Circular; settle district and commune budgets as stipulated in Article 8 of this Circular;

c) Compile and submit annual settlement reports to the competent authority for decision-making as stipulated in Clause 6, 7, and 8 of Article 44 of Decree No. 163/2016/NĐ-CP and Circular No. 342/2016/TT-BTC;

5. Responsibilities of the State Treasury:

a) Confirm and be responsible for confirming the situation of budget estimates, advances, and advance payments for budgetary units according to regulations; figures recorded as income and expenditure in the year for projects using ODA and concessional loans as the basis for annual state budget settlement;

b) Review and confirm remaining budget funds transferred to the next year according to Article 43 of Decree No. 163/2016/NĐ-CP and Article 26 of Circular No. 342/2016/TT-BTC;

c) Temporarily suspend payments at the request of the financial agency (in writing) for budgetary units that fail to submit annual settlement reports within the prescribed time until the annual settlement report is received, except for salaries, salary allowances, subsidies, scholarships, and certain essential expenses to ensure the operation of the administrative machinery, excluding expenses for purchasing equipment and repairs.

d) Coordinate with budget-using units to adjust accounting data according to the request document of the competent authority based on the results of the examination and verification of the final settlement.

Article 11. Effective Date

1. This Circular takes effect from February 10, 2018, and applies to the final settlement of state budgets from 2017.

          2. Circular No. 01/2007/TT-BTC dated January 2, 2007, issued by the Ministry of Finance, guiding the examination and verification and notification of annual settlements for administrative agencies, public institutions, organizations supported by the state budget, and budgets at all levels shall cease to be effective from the date this Circular takes effect.

          3. In the course of implementation, if there are difficulties, they should be promptly reflected to the Ministry of Finance for study and resolution./.

 

 

Appendix 01

(Annexed to Circular  number 137/2017/TT-BTC dated December 25  year 2017 of the Ministry of Finance)

 

RECORD

Examine duyet/Examine and verify the final settlement of the state budget for ...[1]

 

The unit being examined and verified:  ...

Chapter code:  ...

 

          I. Components of Examination and Verification:

1.  Representative of the budgetary unit being examined and verified:

Mr./Ms. …Position …

2.  Representative of the agency/unit examined and verified:

Mr./Ms. …Position …

3.   .................................................

               

         II. Content of Examination and Verification:

1. Scope of Examination and Verification:

Final settlement of the state budget for …(excluding the final settlement of capital …).

2. Settlement figures:

a) Iu fees, charges

- Total revenue for the year: …VND

- Amount to be remitted to the state budget:  (WRITTEN IN WORDS)…

- Amount of fees deducted and retained: …VND

 (Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1a issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).b) Final settlement of budget expenditure:

          - Balance of funds carried over from the previous year

- Budget allocated during the year: …

+ Initial allocation at the beginning of the year: …VND;  dong, including:

+ Additional allocation during the year: …VND;

- Funds actually received during the year: …VND;

- Final settlement amount: …VND;

- Reduction in funds during the year: …VND

- Balance of funds transferred to the next year for use and final settlement: …VND, including:

+ Funds received: …VND;

+ Remaining budget at the Treasury: …VND;

ểu biểu 3b issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1c issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).

(Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1a issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).ình the implementation of audit recommendations, inspection, financial authorities

          c) Providing technical assistance to provinces and centrally administered cities under their jurisdiction in developing local technical standards on clean water quality.- Total amount of funds to be remitted to the state budget:

Total amount of funds already remitted to the state budget: ……. VND

- Total amount of funds still to be remitted to the state budget: (WRITTEN IN WORDS)…

- (Detailed figures according to Model Form No. 69....... VND

Appendix 1 issued together with Circular No. 342/2016/TT-BTC) 4. Explanation of settlement figures:

          Explain and evaluate the situation of final settlement of the state budget for assigned tasks, programs, objectives managed; specifically evaluating the reasons for increases or decreases compared to the allocated budget for the year, linked to specific results regarding economic and social targets to assess the effectiveness and outcomes of each task, program, objective, sector managed; detail the explanation of funds transferred to the next year, canceled budget (if any), remitted to the state budget; explain about the increase or decrease in staffing,

            d.1. Amount of taxable income in Vietnam:expenditures from the state budget in foreign currency ... N êu clear reasons for discrepancies between the examination and verification figures and the reporting figures of the unit being examined and verified (if any).For State Financial Funds outside the state budget: explain and evaluate the results and effectiveness of the Fund's tasks.

          III. Content of Comparison of Results of Business Operations and Service Activities

 

         - Surplus of revenue over expenditure in the year: …VND, including:[2]:    

           - Use of administrative savings: …VND

- Establishment of Funds:

- Civil service salary reform fund: …VND   (WRITTEN IN WORDS)…

(Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1b issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).

IV. Comments and Recommendations:          

1. Comments:

- On compliance with deadlines for submitting final settlement reports

- On report forms for final settlement

On the implementation of examination and verification of the final settlement year

- for subordinate budgetary units and affiliated units (for higher-level budgetary units and first-level budgetary units). - On compliance with state regulations such as: budget preparation, allocation, and assignment; procurement and repair of assets; management and use of assets; revenue and payment systems to the state budget; expenditure systems; accounting for income and expenditure, budget sub-accounts...

On the implementation of National Audit Office recommendations

- , inspectionsand financial authorities organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Nêu the contents that need to be recommended by the unit being examined and verified and the examining and verifying unit related to compliance with state regulations and the implementation.

……..

 

 

 2. Recommendations:

 of National Audit Office recommendations of the unit being examined and verified.and financial authorities organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Nêu the contents that need to be recommended by the unit being examined and verified and the examining and verifying unit related to compliance with state regulations and the implementation This record is made in four copies (each party retains two copies)

 

approved and signed below by all parties./. Representative of the unit being examined and verified (Signature, full name, stamp)

 

                                       

 

 

 

 

 

 

 

                                                                                              Appendix 02

(Annexed to Circular  Name of financial authority or higher-level budgetary unit  25  /TB-…

 

NOTICE

Chapter code: …[3]

Pursuant to Circular No. 137/2017/TT-BTC dated December 25, 2017, issued by the Ministry of Finance, providing for examination, verification, notification, and consolidation of annual settlements;

Pursuant to the final settlement report of the state budget for …of …

                                     ______________

 

(name of the notified unit)

and the examination and verification record) on the final settlement dated .../.../... between …(name of the unit) and …(name of the unit) (name of the notifying authority or unit) notify the examination and verification of the final settlement of the state budget for …(excluding …) of …;

.............1. Settlement figures: ểu biểu 3a issued together with this Circular for the final settlement of the state budget for 2017; according to Model Form 1a issued together with this Circular for the final settlement from the 2018 fiscal year). name of the unit) as follows:

Quarter reported

3. Explanation of settlement figures:

a) Iu fees, charges

- Total revenue for the year: …VND

- Amount to be remitted to the state budget:  (WRITTEN IN WORDS)…

- Amount of fees deducted and retained: …VND

 (Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1a issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).Nêu the contents that need to be recommended by the examining and verifying unit related to compliance with state regulations and the implementation

          - Balance of funds carried over from the previous year

- Budget allocated during the year: …

+ Initial allocation at the beginning of the year: …VND;  dong, including:

+ Additional allocation during the year: …VND;

- Funds actually received during the year: …VND;

- Final settlement amount: …VND;

- Reduction in funds during the year: …VND

- Balance of funds transferred to the next year for use and final settlement: …VND, including:

+ Funds received: …VND;

+ Remaining budget at the Treasury: …VND;

ểu biểu 3b issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1c issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).

(Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1a issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).ình the implementation of audit recommendations, inspection, financial authorities

          ||| Water-based fire extinguishing solutions.- Total amount of funds to be remitted to the state budget:

Total amount of funds already remitted to the state budget: ……. VND

- Total amount of funds still to be remitted to the state budget: (WRITTEN IN WORDS)…

- (Detailed figures according to Model Form No. 69....... VND

Appendix 1 issued together with Circular No. 342/2016/TT-BTC) 4. Explanation of settlement figures:

           - Unit being examined and verified for final settlement;

            d.1. Amount of taxable income in Vietnam:expenditures from the state budget in foreign currency ... N êu clear reasons for discrepancies between the examination and verification figures and the reporting figures of the unit being examined and verified (if any).For State Financial Funds outside the state budget: explain and evaluate the results and effectiveness of the Fund's tasks.

          III. Content of Comparison of Results of Business Operations and Service Activities

 

         - Surplus of revenue over expenditure in the year: …VND, including:[4]:    

           - Use of administrative savings: …VND

- Establishment of Funds:

- Civil service salary reform fund: …VND   (WRITTEN IN WORDS)…

(Detailed figures according to Model Form 3a issued together with this Circular for examination and verification of the final settlement of the state budget for 2017; according to Model Form 1b issued together with this Circular for examination and verification of the final settlement from the 2018 fiscal year).

IV. Comments and Recommendations:          

1. Comments:

- On compliance with deadlines for submitting final settlement reports

- On report forms for final settlement

On the implementation of examination and verification of the final settlement year

- for subordinate budgetary units and affiliated units (for higher-level budgetary units and first-level budgetary units). - On compliance with state regulations such as: budget preparation, allocation, and assignment; procurement and repair of assets; management and use of assets; revenue and payment systems to the state budget; expenditure systems; accounting for income and expenditure, budget sub-accounts...

On the implementation of National Audit Office recommendations

- , inspectionsand financial authorities organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Nêu the contents that need to be recommended by the unit being examined and verified and the examining and verifying unit related to compliance with state regulations and the implementation

……..

2. Recommendations:

 State the contents to be recommended by the reviewing/approving unit related to compliance with state regulations and implementation of the unit being examined and verified.and financial authorities organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Nêu the contents that need to be recommended by the unit being examined and verified and the examining and verifying unit related to compliance with state regulations and the implementation This record is made in four copies (each party retains two copies)

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                              Appendix 03

(Issued together with Circular  No. 137/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance

 

NOTICE
Auditing final accounts of county (district, city under province) budget, commune (ward, town)
(Applicable for provincial budget auditing county budget, county budget auditing commune budget)
Year …

_______________

Based on Circular No. 137/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance stipulating

examination, auditing, notification, and consolidation of annual settlement; SOVEREIGN After conducting the audit of the annual settlement report for the year ...

of ...; the Financial Department has the following comments:   assigned from above

Quarter reported

                                                                            Unit: Million dong

 

1. Regarding the time of submitting reports

- Time for the People's Committee to submit the settlement report to the superior financial authority

- Time for submission after the People's Council's approval

2. Regarding the completeness of the report forms

3. Regarding explanations and clarifications

4. Regarding figures

- Revenue figures at all levels match with the State Treasury

- Supplement figures match with the superior financial authority and the State Treasury at the same level

- Settlement expenditure compared to settlement revenue

- Figures reflect all indicators as prescribed

- Regarding the legality of increased or decreased revenue and expenditure compared to the budget estimate

III. Recommendations:

 ...........          

State the contents requiring recommendations from the financial authority related to compliance with national regulations

of subordinate budgets. HEAD OF THE FINANCIAL AUTHORITY

 

                                                       Sign, write full name, stamp

Place of Receipt:                                                (- Subordinate financial authority)

- Relevant agencies and units;

(Issued together with Circular No. 137/2017/TT-BTC dated

- To be kept: VT, place of issuance

Appendix 4

December 25  Content, structure, format of detailed revenue and expenditure reports of the state budget according to the budget classification  year 2017 of the Ministry of Finance)

1. Content and structure of detailed expenditure reports of the state budget according to the budget classification

(1) Type: text, 03 characters;

(2) Item: text, 03 characters;

(3) Sub-item: text, 04 characters;

(4) Sub-sub-item: text, 04 characters;

(5) National Target Program (if applicable), detailed to sub-sub-program code, project code: text, 04 characters;

(6) Chapter: text, 03 characters;

(7) Code of unit related to the budget (MA_QHNS, text, 07 characters): including the budget unit code or investment project code issued according to Circular No.

185/2015/TT-BTC dated November 17, 2015. (8) Settlement amount: number

2. Content and structure of detailed revenue reports of the state budget according to the budget classification

(1) Sub-item: text, 04 characters;

(2) Level of budget: text, 01 character;

(3) Chapter: text, 03 characters;

(4) Settlement amount: number.

3. Data file format:

In addition to paper reports and Excel files as specified in Section b, Clause 3, Article 3 of this Circular, units shall send electronic data files in Excel format to the address [email protected], specifically as follows:

a) File name:

- For expenditure settlement QTCHI_YYYY_<MA_QHNS>.xlsx, where YYYY is the settlement year of the budget, MA_QHNS is the code of the unit related to the budget, for example: expenditure settlement of the Ministry of Finance in 2017 is: QTCHI_2017_1082814.xlsx.

- For revenue settlement QTTHU_YYYY_<MA_QHNS>.xlsx, where YYYY is the settlement year of the budget, MA_QHNS is the code of the unit related to the budget, for example: revenue settlement of the Ministry of Finance in 2017 is: QTTHU_2017_1082814.xlsx.

b) Order of information on one worksheet of the Excel file according to the settlement report forms

Specifically: - Expenditure settlement of the state budget:+ Primary budget units under the central budget (according to Part II Form 4b issued together with this Circular for the 2017 settlement report; according to Form

Supplementary Form 01-01/BCQT

issued together with Circular No. 107/2017/TT-BTC for settlement reports from 2018 or according to Part II Form 2c issued together with this Circular Column A: Type Column B: Item):

Column C: Sub-item

Column D: Sub-sub-item

Column E: Expenditure content

Column F: Amount

+ Provincial Departments of Finance (according to Form No. 64

Appendix 1 issued together with Circular No. 342/2016/TT-BTC)

Column A: Level Column B: Chapter:

Column C: Type

Column D: Item

Column E: Sub-item

Column F: Sub-sub-item

Column G: Amount

- Revenue settlement of the state budget

(according to Form No. 63

Column E: Amount (by each level of budget). For examination/audit of settlement from the 2018 fiscal year onwards: In cases where units are not using state budget funds, retained fees, other operational sources; only having business operation and service income, the examining authority will not examine the settlement of the unit. The Minutes title is changed to: Column B: Chapter:

Column C: Type

Column D: Item

Column E: Expenditure content

Column F: Amount

"Comparison of figures of results for the year..."