Circular No. 146/2011/TT-BTC guiding the amendment and supplementation of the Accounting System for State Budget and Commune Finance issued together with Decision No. 94/2005/QĐ-BTC dated December 12, 2005 of the Minister of Finance.

CIRCULAR

Guidelines for amending and supplementing the Budget Accounting System and Village Finance Regulations issued together with

Decision No. 94/2005/QD-BTC dated December 12, 2005 of the Minister of Finance

____________________________

 

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

Pursuant to Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in the field of state accounting;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance hereby guides the amendment and supplementation of certain provisions stipulated in the Budget Accounting System and Village Finance Regulations issued together with Decision No. 94/2005/QD-BTC dated December 12, 2005 of the Minister of Finance, as follows:

Article 1. Amending and supplementing Part Two "Accounting Vouchers System"

1. The top left corner of the voucher models issued together with Decision No. 94/2005/QD-BTC dated December 12, 2005 of the Minister of Finance shall be amended from “Code of the unit using the budget” to “Code of the unit related to the budget”;

2. "Revenue Receipt" (Model C27-X): The purpose of the Revenue Receipt shall be supplemented with: “This is an accounting voucher of the revenue collection unit confirming to the payer the amount paid and serving as the basis for issuing a payment receipt or depositing money directly into the Treasury.”

The Revenue Receipt shall also serve as an accounting voucher for recording contributions from the people when the People's Committee of the village or authorized collection agencies are permitted to mobilize such contributions from the people and other revenues that are not tax revenues.”

3. "Contract for Tendering" (Model C51-X): Amend the basis for issuing the voucher, and add the index “Representative for……” to the line “Mr./Mrs……position……representative for……” (Annex No. 01.1);

4. "Contract for Assignment" (Model C52-X): Amend the basis for issuing the voucher (Annex No. 01.2);

5. "Statement of Income and Expenditure of Village Budget" (Model C60-X): Section A shall remove the columns Type and Item; Section B shall amend the columns Type and Item (columns 2 and 3) to become the column “Economic Sector Code”; Column Purpose and Sub-purpose (columns 4 and 5) shall be changed to “Economic Content Code” (Annex No. 01.3);

6. Supplement "Subsidy Payment Statement" (Model C05-X) (Annex No. 01.4);

7. In addition to the vouchers amended and supplemented herein, other vouchers of the village shall still apply according to the system of vouchers prescribed in: The Budget Accounting System and Village Finance Regulations (issued together with Decision No. 94/2005/QD-BTC dated December 12, 2005 of the Minister of Finance); The Accounting System for Administrative and Public Institutions (issued together with Decision No. 19/2006/QD-BTC dated March 30, 2006 of the Minister of Finance, amended and supplemented by Circular No. 185/TT-BTC dated November 15, 2010 of the Ministry of Finance), and other vouchers issued pursuant to other legal documents.

Article 2. Amending and supplementing Part Three "Accounting Account System", as follows:

1. Supplement guidance on Account 111 "Cash";

2. Amend the name of Account 112- "Deposits at Treasury" to Account 112- "Deposits at Bank, Treasury"; And supplement Account 1122- "Deposits at Bank";

3. Supplement guidance on Account 211 "Fixed Assets";

4. Supplement Account 332 "Wage-related Payments Due";

5. Supplement Account 333 "State Payments Due";

6. Supplement Account 334 "Payments Due to Staff";

7. Supplement Account 005 "Long-term Tools in Use";

8. Supplement Account 008 "Budget Expenditure Estimate".

Guidance on the content, structure, and method of recording accounting accounts is as follows:

1. Cash Accounting

Supplement some economic transactions of Account 111 "Cash", as follows:

(1) Surplus cash discovered during inventory, the cause yet to be determined and awaiting resolution, record:

Debit Account 111 - Cash on Hand

Credit Account 331- Other Payables.

(1) Shortage of cash discovered during inventory, the cause yet to be determined and awaiting resolution, record:

Debit Account 311- Other Receivables

Credit Account 111- Cash.

2. Fixed Asset Accounting

Amend and supplement some provisions of Account 211 "Fixed Assets" as follows:

Account 211 "Fixed Assets" is used to reflect the current value and changes in the total fixed assets of the village according to their original cost.

2.1. Recording Account 211- Fixed Assets must follow these principles:

- Tangible fixed assets are material assets with independent structures, or a system consisting of multiple separate parts linked together to perform one or several specific functions, satisfying both criteria: having a usage period of one year or more; and an original cost of ten million dong or more (except for special cases where specific regulations apply to certain unique assets).

- Intangible fixed assets are those without physical form, representing a quantity of value invested, paid, or incurred costs to obtain benefits or economic sources, whose values originate from rights or privileges of the entity, such as: land use value, computer software costs, etc.

- The value of fixed assets reflected on Account 211 is based on their original cost. Accounting must track the detailed original cost of fixed assets. Depending on the source of formation, the original cost of fixed assets is determined as follows:

+ Original cost of fixed assets formed through purchase:

Is the actual purchase price (the price stated on the invoice minus (-) any trade discounts or reductions - if any) plus (+) transportation, handling, repair, improvement, upgrade, installation, and testing costs already deducted (-) any recovered products or scrap from testing plus (+) any taxes, fees, or levies (if any) that the agency or unit must pay up to the time the fixed asset is put into use;

+ Original cost of fixed assets formed through construction investment: Is the approved settlement value according to the current regulations on investment management and construction;

+ Original cost of fixed assets transferred in: Is the value recorded in the Property Transfer Handover Note plus (+) transportation, handling, repair, improvement, upgrade, installation, and testing costs already deducted (-) any recovered products or scrap from testing plus (+) any taxes, fees, or levies (if any) that the agency or unit must pay up to the time the fixed asset is put into use;

The original value of fixed assets received as gifts or donations: Is the value determined by the financial authority as the basis for accounting entries or the re-evaluated value by state asset valuation organizations provided uniformly by the financial authority, plus transportation costs, handling costs, repair, renovation, upgrade costs, installation costs, trial run costs, less (-) proceeds from products or scrap generated during the trial run, plus taxes, fees, and charges (if applicable) that the entity must pay up to the time the fixed asset is put into use.

The original value of special assets: Shall be based on the agreed price for accounting records. The agreed price is stipulated by the Ministries or equivalent agencies responsible for managing such assets.

The original value of fixed assets received as sponsorship, gifts, etc.: Is the value calculated by the financial authority for budgetary income and expenditure records or the actual assessed value by the handover committee, plus repair, renovation, upgrade costs of fixed assets, transportation costs, handling costs, installation costs, trial run costs, land registration fee (if applicable)... that the recipient must bear before putting them into use.

Original value of donated fixed assets: Shall be implemented according to current regulations.

Value of land use rights: For land allocated with payment of land use fee; land transferred legally; land leased where the lease fee has been paid for the entire lease period, the value of land use rights shall be determined as the land use fee payable when the State allocates land with payment of land use fee or the amount paid upon legal transfer of land use rights or the lease fee already paid once for the entire lease period, plus taxes, fees, and charges (if applicable).

In cases where land is allocated without payment of land use fee, the value of land use rights shall be determined according to current regulations on determining the value of land use rights to be included in the asset value of organizations allocated land without payment of land use fee, plus taxes, fees, and charges (if applicable).

Value of computer software: Is the amount paid for leasing programming services or purchasing computer software under the programs of the unit (when recording and managing using computers).

Original value of computer software received as gifts or donations: Shall be determined as the value of the asset calculated by the financial authority as the basis for accounting entries or the re-evaluated value by state asset valuation organizations and uniformly provided by the same-level financial authority.

The original value of fixed assets re-evaluated according to the decision of the State is the restoration cost applied in the re-evaluation of fixed assets.

The original value of fixed assets of communes may only be changed in the following cases:

Re-evaluating the value of fixed assets according to the decision of competent state authorities;

Renovation, upgrading, major repairs of fixed assets;

Dismantling one or several parts of fixed assets.

All increases or decreases in fixed assets must be recorded in the "Fixed Asset Handover Record" and all procedures must be strictly and fully carried out according to the State's regulations. Subsequently, complete accounting records of fixed assets must be established.

Fixed assets must be detailedly tracked for each subject recording fixed assets, by type of fixed assets, and storage, management, and usage locations.

2.2 Classification of Account 211 - Fixed Assets:

Account 211 - Fixed Assets consists of six second-level accounts:

- Account 2111 - Buildings and Structures: Reflects the value of fixed assets which are buildings and structures, including:

+ Buildings: Office buildings, conference halls, health stations, schools, shops, kiosks, constructed markets,...

+ Structures: Walls, warehouses, bridges, drainage systems, wells, dikes, dams, roads (constructed by the commune), sports fields, swimming pools, monuments, surrounding walls,...

- Account 2112 - Machinery and Equipment: Reflects the value of machinery and equipment used for specialized work of the commune, such as: Machinery and equipment serving cultural, information, propaganda activities, research, practice, experimentation, medical examination and treatment, teaching, exploration, surveying,... and even those used for public service activities serving communal welfare needs.

- Account 2113 - Transportation and Communication Equipment: Reflects the value of transportation and communication equipment used for specialized work and other tasks (production, business, welfare,...) of the commune, including: motorcycles, cars, ships, boats, buffalo carts, horse carriages, motorized rickshaws, pipelines,... and communication equipment (information, water and electricity,...).

- Account 2114 - Management Equipment and Tools: Reflects the value of equipment and tools used in management and office work, such as: safes, TVs, refrigerators, computers, high-end wooden furniture, measuring and quality inspection equipment, dehumidifiers, vacuum cleaners, pest control equipment,... meeting the criteria for fixed assets.

- Account 2115 - Long-lived Plants and Working Animals and Those Producing Products: Reflects the value of living organisms, long-lived plants, working animals and those producing products, ornamental gardens, ornamental animals,...

- Account 2118 - Other Fixed Assets: Reflects the value of other types of fixed assets not reflected in the above accounts (mainly intangible assets) such as: value of land use rights, computer software.

2.3 Supplement some economic activities as follows:

(1) In case of issuing a budget withdrawal form for transferring funds to purchase fixed assets, based on the payment voucher accepted by the Treasury, record:

Debit Account 814 - Commune Budget Expenditure through the Treasury (8142 - Current Year)

Credit Account 112 - Bank Deposits, Treasury (1121)

At the same time, credit Account 008 "Commune Budget Expenditure Estimate".

(2) Based on invoices and handover records for putting assets into use, accountants record an increase in fixed assets and an increase in the source of funds that have formed fixed assets.

Debit Account 211 - Fixed Assets

Credit Account 466 - Source of Funds Formed Fixed Assets.

(3) When fixed assets are found missing during inventory, pending a decision on handling, accountants base on the inventory results to record a decrease in fixed assets, record:

Debit Account 466 - Source of Funds Formed Fixed Assets (Remaining Value)

Debit Account 214 - Depreciation of Fixed Assets (Depreciation Value)

Credit Account 211 - Fixed Assets (Original Value).

(4) Record the remaining value of missing or lost fixed assets to be recovered, record:

Debit Account 311 - Accounts receivable (Remaining value)

Credit Account 719 - Unprocessed Commune Revenue through the Treasury (7192 - Current Year).

(5) When processing the procedure to deposit the amount received from compensation into the state budget at the Treasury:

- Based on the payment voucher, prepare a cash payment slip to the state budget, based on the payment slip confirmed by the Treasury and transferred to the commune, record:

Debit Account 112 - Bank and Treasury Deposits (1121)

Credit Account 111- Cash.

- Based on the payment slip confirmed by the Treasury, record revenue collected through the Treasury, record:

Debit Account 719 - Commune Revenue Not Yet Through the Treasury (7192 - For the current year)

Credit Account 714 - Commune Revenue Already Through the Treasury (7142 - For the current year).

(6) When there is a decision to handle, based on each specific case:

- If the competent authority permits the elimination of losses due to missing or lost assets, record:

Debit Account 714 - Commune Revenue Already Through the Treasury (7142 - For the current year)

Credit Account 311 - Receivables.

- If the competent authority decides that the person responsible must compensate, when collecting compensation money or deducting it from the salary payable to officials and civil servants, record:

Debit Accounts 111, 112 (If collecting money)

Debit Account 334 - Salaries Payable (If deducted from salary)

Credit Account 311 - Receivables.

(7) Fixed Assets discovered in excess during inventory, during the time waiting for a handling decision, the accountant records the increase in fixed assets based on the inventory results, record:

Debit Account 211 - Fixed Assets (At the appraised value)

Credit Account 214 - Depreciation of Fixed Assets (Depreciation value)

Credit Account 466 - Source of funds that have formed fixed assets

(Remaining value according to the appraisal).

(8) If the excess fixed assets cannot be determined in terms of origin, cause, and have not been decided on, the accountant reflects them in receivables, record:

Debit Account 211 - Tangible Fixed Assets (Recorded at the appraised value)

Credit Account 331- Other Payables.

(9) When there is a handling decision from the competent authority, based on the handling decision, record:

Debit Account 331 - Accounts Payable

Credit relevant accounts.

(10) If the excess fixed assets are determined to be the property of another unit, such unit must be immediately notified. If the owner of the property cannot be identified, it must be reported to the People's Council and the financial authority at the same level for handling.

3. Accounting for Deductions from Salary

Add Account 332 "Deductions from Salary": This account is used to reflect the situation of deductions, payments, and settlements for social insurance, health insurance, unemployment insurance, and trade union fees with the Social Insurance Authority and the Trade Union Authority.

The deductions, payments, and settlements for social insurance, health insurance, unemployment insurance, and trade union fees of the commune must comply with the regulations of the State.

3.1. Structure and Content Reflected in Account 332 - Deductions from Salary

Debit Side:

- Amounts of social insurance, health insurance, unemployment insurance, and trade union fees paid to the management agency (Including both the employer's and employee's contributions);

- Amounts of social insurance payable to officials and civil servants.

Credit Side:

- Deductions for social insurance, health insurance, unemployment insurance, and trade union fees included in commune budget expenditures;

- Amounts of social insurance and health insurance that commune-level civil servants must pay, which are deducted from their monthly salaries (According to the percentage employees must contribute);

- Amounts of social insurance paid by the Social Insurance Authority regarding the social insurance the commune has paid out to beneficiaries;

- Late payment penalties for delayed social insurance payments.

Debit balance:

- Remaining amounts of social insurance, health insurance, unemployment insurance, and trade union fees still to be paid to the Social Insurance Authority and the Trade Union Authority.

This account may have a debit balance: A debit balance reflects the amount of social insurance paid by the commune to officials and civil servants but not yet settled by the Social Insurance Authority.

Account 332 - Deductions from Salary has four second-level accounts

- Account 3321 - Social Insurance: Reflects the situation of deductions and payments for social insurance as prescribed.

- Account 3322 - Health Insurance: Reflects the situation of deductions and payments for health insurance as prescribed.

- Account 3323 - Trade Union Fees: Reflects the situation of deductions and payments for trade union fees as prescribed.

- Account 3324 - Unemployment Insurance:Reflects the situation of deductions and payments for unemployment insurance as prescribed.

3.2. Methods of Accounting for Some Main Economic Transactions

(1) Deduct social insurance, health insurance, trade union fees, and unemployment insurance payable and include them in commune budget expenditures as prescribed, record:

Debit Account 814 - Processed communal budget expenditure

Credit Account 332 - Deductions from Salary (3321, 3322, 3323, 3324).

(2) The portion of social insurance, health insurance, trade union fees, and unemployment insurance that commune-level civil servants must pay, which is deducted from their monthly salaries, record:

Debit Account 334 - Salaries Payable

Credit Account 332 - Deductions from Salary (3321, 3322, 3324).

(3) When receiving a late payment penalty notice for unpaid social insurance, record:

Debit Account 311 - Receivables (Pending late payment penalty processing)

Debit Account 814 - Commune Budget Expenditures Already Through the State Treasury (If permitted to record in commune budget expenditures)

Credit Account 332 - Deductions from Salary (3321).

(4) When the commune prepares a payment order to pay social insurance premiums, purchase health insurance cards, pay trade union fees, and unemployment insurance based on the debt notice (one copy of the payment order from the Treasury), the accountant records:

Debit Account 332 - Deductions from Salary (3321, 3322, 3323, 3324)

Credit Account 112 - Bank and Treasury Deposits (1121).

(5) When the commune prepares a budget withdrawal form to transfer funds for paying social insurance premiums, purchasing health insurance cards, paying trade union fees, and unemployment insurance based on the debt notice (one copy of the budget withdrawal form from the Treasury), the accountant records:

Debit Account 332 - Deductions from Salary (3321, 3322, 3323, 3324)

Credit Account 112 - Bank and Treasury Deposits (1121).

At the same time, credit Account 008 "Commune Budget Expenditure Estimate".

(6) Social insurance payable to officials and civil servants according to regulations, record:

Debit Account 332 - Deductions from Salary (3321)

Credit Account 334 - Salaries Payable.

(7) When receiving the amount from the Social Insurance Authority regarding the social insurance already paid by the commune to officials and civil servants, record:

Debit Accounts 111, 112

Credit Account 332 - Deductions from Salary (3321).

(8) Excess funds spent by the trade union shall be reimbursed and recorded as follows:

Debit Accounts 111, 112

Credit Account 332 - Deductions from Salary (3323).

4. Accounting for State Payments Due

Add Account 333 "State Payments Due": Reflects individual income tax of officials and civil servants working in the commune or individuals who undertake contracts, subcontracts, or services for the commune where the commune is responsible for paying their income, the commune must declare and pay individual income tax on behalf of these individuals according to the principle of withholding at source and other taxes, fees, and levies payable to the State.

4.1. Recording Account 333 - State Payments Due Must Adhere to the Following Regulations:

- The commune, as the entity paying income, has the obligation to withhold tax before paying income to individuals subject to individual income tax and to pay the withheld tax to the State Budget on their behalf;

- The commune shall be responsible for calculating personal income tax, withholding personal income tax, and remitting it to the State Budget. When withholding personal income tax, the commune must issue a "personal income tax withholding certificate" to individuals with taxable income, manage its use, and settle tax receipts according to prescribed regulations.

4.2. Structure and content reflected in Account 333 - Amounts Due to the State:

Debit Side: The amount of personal income tax that the commune has paid to the State.

Credit Side: The amount of personal income tax that the commune is required to pay to the State.

Debit balance: The amount of personal income tax that the commune still needs to pay to the State.

Account 333 may have a debit balance (in exceptional cases): Reflecting the amount of personal income tax that the commune has paid being greater than the amount of taxes and other amounts due to the State.

4.3. Accounting methods for some main economic activities:

(1) Each month, when determining the amount of personal income tax payable based on the taxable income of commune-level officials and civil servants, record:

Debit Account 334 - Salaries Payable

Credit Account 333 - Amounts Due to the State.

(2) When the unit pays income to individuals outside, it must determine the amount of personal income tax payable based on non-periodic taxable income generated each time, record:

Debit Account 814 - Commune Budget Expenditure through Treasury (8142 - For the current year) (Total payment)

Credit Account 333 - Amounts Due to the State (Amount of personal income tax to be withheld)

Credit various Accounts 111, 112... (Actual amount paid)

(3) When paying personal income tax to the State Budget on behalf of high-income earners, record:

Debit Account 333 - Amounts Due to the State (Detailed personal income tax)

Credit Accounts 111, 112.

5. Accounting for amounts due to commune-level officials and civil servants

Add Account 334 "Due to Officials and Civil Servants": This account is used to reflect the settlement situation between the commune and commune-level officials and civil servants regarding salaries, allowances, and other amounts due.

5.1. Recording this account requires adherence to the following provisions:

- Other amounts due to commune-level officials and civil servants reflected in this account include salaries, allowances, and other income that the commune must pay to commune-level officials and civil servants.

- Payments made by the commune to officials and civil servants through individual accounts include: Salaries, allowances, additional income, and other amounts such as lunch money, bonuses, uniforms, overtime pay... (if applicable), after deducting items such as Social Insurance, Unemployment Insurance, Health Insurance, unused advance payments, personal income tax to be withheld, and other deductions from the salary payable (if applicable).

In cases where officials and civil servants pre-advance their salaries in a month, the accountant calculates the advance deducted from the actual salary received; if the advance exceeds the actual salary received, it is deducted from the salary payable in the following month.

- When disbursing salaries and other income to commune-level officials and civil servants through individual accounts, the commune prepares relevant documents such as the Salary Payment Sheet (Form C02a-HD), Additional Income Payment Sheet (Form C02b-HD), Bonus Payment Sheet (Form C04-HD), Overtime Payment Sheet (Form C07-HD)... These documents serve as the basis for calculating salaries and other income payable to commune-level officials and civil servants through individual accounts, and do not require a "Signature Receipt" column. Monthly, based on the Salary Payment Sheets and other income payment sheets, the accountant calculates the salaries and other income payable to commune-level officials and civil servants and prepares the "List of Salary and Other Income Payments Through Individual Accounts" (Form C13-HD) to request the Treasury and Bank to transfer funds into the individual accounts of each commune-level official and civil servant.

- Monthly, the commune must publicly announce the Salary Payment Sheet, Additional Income Payment Sheet (if applicable), Bonus Payment Sheet, Overtime Payment Sheet to each official and civil servant (the form of public announcement is determined by the commune).

5.2. Structure and content reflected in Account 334 - Due to Officials and Civil Servants

Debit Side:

- Salaries, allowances, and other amounts paid to commune-level officials and civil servants;

- Amounts deducted from the salaries of commune-level officials and civil servants.

Credit Side:

Salaries, allowances, and other amounts due to commune-level officials and civil servants.

Debit balance:

Amounts still due to commune-level officials and civil servants.

5.3. Accounting methods for some main economic activities

(1) Record salaries, allowances, and other amounts due to commune-level officials and civil servants included in budget expenditure, record:

Debit Account 814 - Budget Expenditure through Treasury (8142 - For the current year)

Credit Account 334 - Salaries Payable.

(2) When the commune issues a payment order to withdraw money into the cash fund, record:

Debit Account 111 - Cash on Hand

Credit Account 112 - Bank and Treasury Deposits (1121).

(3) When disbursing salaries, allowances, and other amounts due to commune-level officials and civil servants, record:

Debit Account 334 - Salaries Payable

Credit Account 111- Cash.

(4) When the commune transfers the budget estimate to disburse salaries, allowances, and other amounts due to commune-level officials and civil servants, record:

Debit Account 334 - Salaries Payable

Credit Account 112 - Bank and Treasury Deposits (1121).

Simultaneously credit Account 008 "Budget Estimate for Expenditure".

(5) The portion of Social Insurance, Health Insurance, Housing Allowance, and Unemployment Insurance of commune-level officials and civil servants to be deducted from the salary payable, record:

Debit Account 334 - Salaries Payable

Credit Account 332 - Deductions from Salary (3321, 3322, 3324).

(6) Advance payments that are not fully utilized and are deducted from the salary payable to commune-level officials and civil servants, record:

Debit Account 334 - Salaries Payable

Credit Account 311 - Receivables.

(7) Revenue from compensation for the value of discovered missing assets, recorded as a deduction from the salary payable, record:

Debit Account 334 - Salaries Payable

Credit Account 311 - Receivables

Credit various Accounts 111, 152... (If there is an immediate decision on handling).

(8) Personal income tax deducted from the salary payable to commune-level officials and civil servants, record:

Debit Account 334 - Salaries Payable

Credit Account 333 - Amounts Due to the State.

(9) Accounting for salaries and allowances paid through individual accounts:

Add Account 1122 - "Bank Deposits": Reflecting the fluctuation of commune budget funds deposited at the bank for the bank to implement salary payments into individual accounts for commune-level officials and civil servants.

- When the commune issues a payment order or a budget withdrawal notice to transfer funds from the treasury deposit account to the bank deposit account where commune-level officials and civil servants have opened individual accounts for salary payments, record:

Debit Account 112 - Bank Deposits, Treasury (1122)

Credit Account 112 - Bank and Treasury Deposits (1121).

In cases where funds are transferred from the budget account to the bank deposit account, simultaneously credit Account 008 "Budget Estimate for Expenditure".

Simultaneously reflect the amount of salaries and allowances payable to commune-level officials and civil servants, record:

Debit Account 814 - Processed communal budget expenditure

Credit Account 334 - Due to Officials and Civil Servants.

- Upon confirmation from the bank regarding the amount of salary and other income transferred to the personal account of each commune-level civil servant, record:

Debit Account 334 - Salaries Payable

Credit Account 112 - Bank Deposits, Treasury (1122).

6. Supplement Account 005 "Long-term Tools in Use":This account is used to reflect the value of various long-term tools currently in use at the commune. Long-term tools in use are those with relatively high value and long usage periods, requiring strict management from the time they are issued for use until they are reported as damaged or lost.

Long-term tools in use must be recorded in detail by type, by location of use, and by the person responsible for them. Within each type of long-term tool in use, detailed recording must be made according to quantity, unit price, and total value.

6.1. Structure and Content Reflected in Account 005 - Long-term Tools in Use

Debit Side:The increase in the value of long-term tools due to their issuance for use.

Credit Side:The decrease in the value of long-term tools due to damage, loss, and other reasons.

Debit Balance:The current value of long-term tools in use at the commune.

Departments or individuals assigned to manage and use long-term tools have the responsibility to manage them strictly to prevent loss or damage.

When long-term tools are damaged or lost, the department assigned to manage and use them must prepare a report on damage or loss, signed by representatives of the department and the individual responsible for management and use, as evidence to determine material responsibility.

6.2. Accounting Methods for Some Main Economic Activities

(1) When issuing tools and equipment for use in commune projects, based on the Warehouse Release Form, record:

Debit Account 241 - Uncompleted Construction Investments

Credit Account 152 - Materials.

Simultaneously, debit Account 005 "Long-term Tools in Use".

(2) When issuing tools and equipment for regular expenses, based on the Warehouse Release Form, record:

Debit Account 819 - Commune Budget Expenditure Not Through Treasury (8192 - Current Year).

Credit Account 152 - Materials.

Simultaneously, debit Account 005 "Long-term Tools in Use".

(3) When receiving a report on the damage or loss of issued tools and equipment, record the single side credit to Account 005 "Long-term Tools in Use".

(4) Reduction in fixed assets due to not meeting criteria for conversion into tools and equipment, record:

Debit Account 214 - Depreciation of Fixed Assets (Depreciation Value)

Debit Account 466 - Source of Funds Formed Fixed Assets

Credit Account 211 - Fixed Assets.

Simultaneously, reflect the remaining value of fixed assets on the debit side of Account 005 "Long-term Tools in Use".

7. Supplement Account 008 "Budget Expenditure Estimate":This account is used by communes to reflect the budget expenditure estimate assigned by the competent authority and the withdrawal of budget expenditure estimates for use.

7.1. Structure and Content Reflected in Account 008 "Budget Expenditure Estimate"

Debit Side:

- Assigned budget expenditure estimate;

- Adjusted budget estimate within the year (increase recorded positively (+), decrease recorded negatively (-)).

Credit Side:

- Withdrawal of budget expenditure estimate for use;

- Amount refunded to restore the budget estimate (recorded negatively (-)).

Debit Balance:Remaining budget expenditure estimate not yet withdrawn.

6.2. Accounting Methods for Some Main Economic Activities

(1) When the competent authority assigns the budget estimate, based on the Decision Assigning the Budget Estimate, record:

Debit Account 008 "Budget Expenditure Estimate".

(2) When withdrawing the budget estimate for transfer payment (those expenditures eligible for payment), record:

Debit Account 814 - Budget Expenditure Through Treasury (8142 - Current Year)

Credit Account 112 - Bank Deposits, Treasury.

Simultaneously, credit Account 008 "Budget Expenditure Estimate".

(3) When withdrawing the budget estimate to the commune's cash reserve (temporary advance not yet eligible for payment), record:

Debit Account 111 - Cash on Hand

Credit Account 112 - Bank Deposits, Treasury.

(4) When disbursing cash directly for regular expenses at the commune, record:

Debit Account 819 - Commune Budget Expenditure Not Through Treasury

Credit Account 111- Cash.

(5) When all supporting documents are available, the accountant prepares a Payment Request to the Treasury for temporary advance accompanied by a Statement of Supporting Documents for payment processing with the Treasury, based on the approved Payment Request to the Treasury, record:

Debit Account 814 - Budget Expenditure Through Treasury (8142 - Current Year)

Credit Account 819 - Commune Budget Expenditure Not Through Treasury

At the same time, credit Account 008 "Commune Budget Expenditure Estimate".

Article 3. Amending and supplementing Part Four "Accounting System",as follows:

1. "Village Budget Revenue Ledger" (Form S04-X): Remove the items Type, Item; Change the item Category, Subcategory to "Economic Content Code" (Annex 02.1);

2. "Village Budget Expenditure Ledger" (Form S05-X): Change the item Type, Item to "Economic Sector Code"; Change the item Category, Subcategory to "Economic Content Code" (Annex 02.2);

3. "Village Budget Revenue Consolidation Ledger" (Form S06a-X): Remove Columns Type, Item; Change Columns Category, Subcategory (Columns 6, 7) to Column 4 "Economic Content Code" (Annex 02.3);

4. "Village Budget Expenditure Consolidation Ledger" (Form S06b-X): Change Columns Type, Item (Columns 4, 5) to Column 4 "Economic Sector Code"; Change Columns Category, Subcategory (Columns 6, 7) to Column 5 "Economic Content Code" (Annex 02.4);

5. Supplement "Fixed Asset and Tools Usage Monitoring Ledger" (Form S21-X) (Annex 02.5);

6. Supplement "Budget Estimate Monitoring Ledger" (Form S22-X) (Annex 02.6).

Article 4. Amending and supplementing Part Five "Financial Reporting System",as follows:

1. "Village Budget Revenue Consolidation Report by Economic Content" (Form B02a-X): Replace the item "Land Transfer Tax" (code 420) with the item "Personal Income Tax" (Annex 03.1);

2. "Village Budget Expenditure Consolidation Report by Economic Content" (Form B02b-X): Add the item "Environmental Public Service Expenditure" (code 474) and the item "Community and Cultural Family Construction Expenditure" (code 475) (Annex 03.2);

3. "Village Budget Revenue Settlement Report by State Budget Classification" (Form B03a-X): Remove Columns Type, Item (Columns 2, 3); Change Columns Category, Subcategory (Columns 4, 5) to Column 2 "Economic Content Code" (Annex 03.3);

4. "Village Budget Expenditure Settlement Report by State Budget Classification" (Form B03b-X): Change Columns Type, Item (Columns 2, 3) to Column 2 "Economic Sector Code", Change Columns Category, Subcategory (Columns 4, 5) to Column 3 "Economic Content Code" (Annex 03.4);

5. "Village Budget Revenue Consolidation Settlement Report by Economic Content" (Form B03c-X): Change the item "Land Transfer Tax" (Code 420) to the item "Personal Income Tax" (Annex 03.5);

6. "Village Budget Expenditure Consolidation Settlement Report by Economic Content" (Form B03d-X): Add the item "Environmental Public Service Expenditure" (code 474) and the item "Community and Cultural Family Construction Expenditure" (code 475) (Annex 03.6);

7. Supplement "Budget Estimate Comparison Table for Withdrawn Estimates at KBNN" (Form B07-X) (Annex 03.7);

8. Supplement "Comparison Table of Advance Payments and Advance Payment Settlements at KBNN" (Form B08-X) (Annex 03.8);

9. Supplement "Confirmation Statement of Account Balance at KBNN" (Form B09-X) (Annex 03.9).

Article 5. Effectiveness

This Circular takes effect from January 1, 2012. For other accounting parts not covered by this Circular, villages shall implement according to the Accounting Regulations for Village Budget and Finance issued pursuant to Decision No. 94/2005/QD-BTC dated December 12, 2005 of the Minister of Finance.

Article 6. Implementation Organization

The Chairpersons of People's Communes, Towns, and Market Towns must strictly comply with the provisions of this Circular. The Heads of the Accounting and Auditing Department, the Heads of the State Budget Department, the General Director of the State Treasury, the Director-General of the General Department of Taxation, the Head of the Office of the Ministry of Finance, and the Heads of relevant units under the Ministry of Finance are responsible for guiding units to implement this Circular.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and resolution./.