Decision No. 1531/2004/QĐ-NHNN of the Governor of the State Bank promulgating regulations on accounting for basic construction investment operations of the State Bank

Pursuant to …;

Decision No. 1531/2004/QĐ-NHNN dated December 2, 2004 issued by the Governor of the State Bank of Vietnam on Accounting for Basic Construction Investment Activities of the State Bank of Vietnam.

GOVERNOR OF THE STATE BANK OF VIETNAM

  On the basis of the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;
  On the basis of Decree No. 86/2002/NĐ-CP dated January 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

  On the basis of Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the Management Regulations for Investment and Construction, Decree No. 12/2000/NĐ-CP dated May 5, 2000, and Decree No. 07/2003/NĐ-CP dated January 29, 2003 of the Government amending and supplementing Decree No. 52/1999/NĐ-CP dated July 8, 1999;

  Pursuant to the proposal of the Director of the Accounting and Finance Department,

Pursuant to …;

Article 1. The attached Decision promulgates the Accounting Regulations for Basic Construction Investment Activities of the State Bank of Vietnam.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette, replacing Decision No. 224/2000/QĐ-NHNN2 dated July 19, 2000 of the Governor of the State Bank of Vietnam promulgating the Accounting Regulations for Basic Construction Investment Activities of the State Bank of Vietnam.

Article 3. The Head of the Office, the Director of the Accounting and Finance Department, the Heads of relevant units under the State Bank of Vietnam, and the Governors of the State Bank of Vietnam Branches in provinces and cities are responsible for implementing this Decision./.

                                                                                 

REGULATIONS on Accounting for Basic Construction Investment Activities of the State Bank of Vietnam

(Issued pursuant to Decision No. 1531/2004/QĐ-NHNN dated December 2, 2004 of the Governor of the State Bank of Vietnam)

PART I

GENERAL PROVISIONS

Article

 1. Scope of regulation and applicable subjects

These regulations provide for the accounting treatment of basic construction investment activities (BCIA) for the Project Management Board (PMB) for BCIA of the State Bank of Vietnam (SBV) and units under the SBV including: the Administrative Bureau, the Banking Information Technology Bureau, the Banking Times, the Banking Magazine, the Credit Information Center, the Representative Office in Ho Chi Minh City, and the SBV Branches in provinces and cities with BCIA projects (hereinafter referred to as SBV units).

Article 2Management of BCIA projects

1. The State Bank of Vietnam shall uniformly manage BCIA projects at SBV units.

When establishing a PMB, SBV units with BCIA projects must have an accounting department within the PMB to account for BCIA activities.

2. All costs related to BCIA projects must be organized to be recorded and reflected fully, promptly, and accurately in the accounts specified in Article 6 of these regulations and must be shown on the Balance Sheet of the PMB's accounting records. SBV units with BCIA projects must aggregate data into their own Balance Sheets according to Decision No. 425/1998/QĐ-NHNN2 dated December 17, 1998 of the Governor of the State Bank of Vietnam (from receiving capital, using capital to settling capital investment and incorporating assets).

3. SBV units with BCIA projects must complete all procedures and strictly comply with current state regulations on investment and construction management.

Article 3. Relationship between the PMB and SBV units

Monthly, based on the Balance Sheet of the PMB's accounting records, SBV units must verify, reconcile data, and aggregate data on the Balance Sheet of the PMB's accounting records into their own Balance Sheets to reflect the receipt and use of capital by the PMB on their Balance Sheets.

Article 4. Settlement and finalization of BCIA projects

1. The PMB and SBV units must settle project costs in accordance with the guidelines of the Ministry of Finance in Circular No. 45/2003/TT-BTC dated May 15, 2003 on guiding the settlement of investment capital and other relevant documents of the State Bank of Vietnam and the Ministry of Finance. The settlement data of the project owner must be prepared fully, detailed, specific, and accurate based on the settlement documents of Party B, audit data, settlement approval request data of the PMB, and data accepted for settlement by the project owner and submitted to the competent authority for approval.

2. When settling with Party B, the project owner must manage the warranty fee for the project according to the current investment and construction management regulations, organize timely and full settlement and contract termination in accordance with the provisions of the law.

Article 5. Sources of BCIA capital include:

- State budget capital;

- SBV BCIA capital;

- Interest on BCIA capital deposits;

- Other revenues (if any).

Article 6. Accounts, vouchers, and accounting books

1. Main accounts used in SBV BCIA accounting:

- Account No. 1030 "Cash at dependent units" is used at the PMB of units with BCIA projects.

- Account No. 3232 "BCIA investment capital deposited at commercial banks": PMBs may only open accounts at one commercial bank and must notify the account number and bank where the account is opened to the Accounting and Finance Department.

- Account No. 3222 is used to reflect the amount of construction materials and equipment purchased, stored, and used by the PMB. PMBs can only purchase materials and equipment within the approved budget. After completion of the BCIA project, this account must be settled to zero.

- Accounts Nos. 1030 and 3222 must be reconciled monthly, quarterly, and annually with the inventory verification report according to current regulations.

- If an SBV unit has multiple BCIA projects, the detailed accounts 4662.1 and 4662.2 should be opened separately for each BCIA project (one additional level).

2. Documents and materials used in accounting for construction investment projects:

- Documents and materials used in accounting for construction investment projects include Decisions on investment, Decisions approving total budgets, detailed budget estimates, and final accounts decisions, construction contracts, completion acceptance certificates, asset transfer records, material and equipment lists, value-added tax invoices, payment vouchers, and other related documents.

 - All documents must be prepared strictly in accordance with current State regulations and the State Bank of Vietnam's provisions, ensuring they are valid and lawful as prescribed.

3. Accounting ledgers: The Project Management Board of the State Bank of Vietnam unit must open complete accounting ledgers (from detailed to consolidated ledgers) to record and reflect all activities related to the construction investment project in compliance with current regulations.

Upon completion of the project, all documents, ledgers, and accounting files of the Project Management Board must be transferred to the unit responsible for the investment project for safekeeping and monitoring in accordance with current regulations.

Chapter II

SPECIFIC PROVISIONS

Chapter I. ACCOUNTING FOR MAJOR TRANSACTIONS

A. Accounting for Bid Security Deposits

Article 7. In cases where construction projects require bidding: When organizing a bid, the State Bank unit or the Project Management Board established must organize the invitation to bid, evaluation, and announcement of the winning bid in accordance with the Bidding Regulations issued together with Decree No. 88/1999/ND-CP dated September 1, 1999, and Decrees No. 14/2000/ND-CP dated May 5, 2000, and No. 66/2003/ND-CP dated June 12, 2003, of the Government amending and supplementing certain articles of the Bidding Regulations issued together with Decree No. 88/1999/ND-CP dated September 1, 1999. In cases where bidders submit bid security deposits in cash or by transferring funds to the Project Management Board's account at a commercial bank, the accounting entries shall be as follows:

Debit appropriate account (1030 or 3232)

Credit Account 4669 "Other Payables" (Open a detailed account: Bid security deposit according to each registered bidder)

After the bidding results are known, the Project Management Board must refund the entire bid security deposit to the participating bidders, with the following accounting entry:

Debit Account 4669 "Other Payables" (the above-mentioned detailed account)

Article 8. Credit appropriate account

B. Accounting for Construction Investment Capital Approved by the State Budget

At the Project Management Board of State Bank units with investment projects:

Based on the State’s plan, based on the list of construction projects approved by the State Budget and the total amount of capital allocated announced by the Treasury or the State Bank, the Project Management Board must open a ledger to track the announced funding and the funds disbursed. Specific transactions are accounted for as follows:

1. In cases where completed construction works have been agreed upon by the Treasury for payment to Party B:

- When temporarily advancing funds to Party B or another entity or individual: depending on the nature and content of the economic transaction, the appropriate accounting entries are made as follows:

Debit Account 3233 "Advance Payment for Construction Investment to Party B" or Debit Account 3239 "Other Receivables" (Open a detailed account according to each entity or individual receiving the advance)

Credit Account 4661 "State Budget Capital Allocated for the Project" or Credit Account 1030 "Cash at Subordinate Units"

- When settling the advance payment, the accounting entry is:

Debit Account 3221 "Construction Costs" or Debit Account 3229 "Other Expenses"

Credit Account 3233 "Advance Payment to Party B" or Credit Account 3239 "Other Receivables"

- When temporarily advancing funds to Party B or another entity or individual: depending on the nature and content of the economic transaction, the appropriate accounting entries are made as follows:

2. When withdrawing cash to the Project Management Board for operational expenses:

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4661 "State Budget Capital Allocated for the Project"

3. When the Project Management Board directly purchases materials and equipment for storage, the accounting entry is:

Debit Account 3222 "Materials for Construction Investment"

- When issuing materials and equipment for use in the project, the accounting entry is:

Debit Account 3221 "Construction Costs"

Credit Account 3222 "Materials for Construction Investment"

4. When there are reasonable expenditures for the project, the accounting entry is:

Debit Account 1030 "Cash at Subordinate Units"

Debit Account 3223 "Labor Costs" (In case the Project Management Board directly pays labor costs)

or Debit Account 3229 "Other Expenses"

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4661 "State Budget Capital Allocated for the Project"

or Credit Account 1030 "Cash at Subordinate Units"

5. In cases where completed construction works are paid directly to Party B by the Treasury, the accounting entry is:

Credit Account "State Budget Capital Allocated for the Project"

6. When the project is completed and enters the final settlement phase, the Project Management Board transfers labor costs and other construction investment costs to the Construction Costs account, with the following accounting entries:

Credit Account 3223 "Labor Costs"

Article 9. Credit Account 3229 "Other Expenses"

7. Upon approval of the final settlement by the State Bank, the full settlement of the State Budget capital allocated for the project is recorded as:

Debit Account 4661 "State Budget Capital Allocated for the Project"

Credit Account 3221 "Construction Costs"

C. ACCOUNTING FOR CONSTRUCTION INVESTMENT CAPITAL OF THE STATE BANK

Recorded at the Accounting and Finance Department

1. When temporarily advancing construction investment capital to State Bank units with approved construction investment projects, the accounting entry is:

Debit Account 3231 "Advance Payment for Construction Investment Projects" (open a detailed account for each State Bank unit receiving the advance)

Credit Account 5111 "Transfers Out This Year”

or Credit Account 591 "Inter-unit Settlements Among State Bank Units"

2. Upon receipt of the "Statement of Interest on Deposit Capital for Construction Investment and Other Income" from the Project Management Board of the State Bank unit with the investment project, the accounting entry is:

 

  Debit Account 3231 “Advance Payment for Construction Investment Projects”

5. Upon receipt of the notification from State Bank units transferring completed construction capital back to the State Bank, record:

Article 10.Record at State Bank units with investment projects (Accounting and Settlement Department)

1. When receiving construction capital advances transferred back from the State Bank (Accounting and Finance Department), record:

Debit Account 5112 "Transferred Funds This Year"

Credit Account 453 "Vietnamese Dong Deposits" or other appropriate accounts to transfer funds into the deposit account of the Project Management Board at the bank where the account is opened.

2. When the project or individual components thereof are completed and put into use, during the period before final settlement approval, State Bank units must determine the provisional value of the project for fixed asset accounting according to the principle:

+ If the estimated cost is lower than the actual construction costs, record according to the estimated cost.

+ If the estimated cost is higher than the actual construction costs, record according to the actual costs.

For accounting purposes, note:

Debit Account 301 "Tangible Fixed Assets" (appropriate third-level account)

Credit Account 468 "Other Pending Payment Items" (open sub-account for each construction project temporarily entered when not yet approved for final settlement).

After recording the provisional value of the completed construction project, State Bank units must report in writing to the Accounting and Finance Department (specifying the project value, component value temporarily entered, source of formation) and implement depreciation according to current regulations applicable to fixed assets.

3. When the construction project final settlement is approved by the State Bank, process:

- If there is a difference between the construction capital advance provided by the State Bank and the approved final settlement value, process:

+ In case the construction capital advance provided by the State Bank is less than the approved final settlement value: The State Bank will supplement the remaining amount compared to the approved final settlement value, upon receipt of the Order from the Accounting and Finance Department, record:

Debit Account 5112 "Transferred Funds This Year" (Supplementary amount)

or Debit Account 591 "Other Payments between State Bank Units"

Credit Account 453 "Vietnamese Dong Deposits" or other appropriate accounts to transfer funds into the deposit account of the Project Management Board at the bank where the account is opened.

+ In case the construction capital advance provided by the State Bank exceeds the approved final settlement value, the Accounting and Settlement Department must urge the Project Management Board to immediately return the excess construction capital advance to the State Bank (Accounting and Finance Department), record:

Debit Account 453 "Vietnamese Dong Deposits" or other appropriate accounts

Credit Account 5111 "Transferred Funds Last Year" (Excess amount advanced by the State Bank)

C. ACCOUNTING FOR CONSTRUCTION INVESTMENT CAPITAL OF THE STATE BANK

- Adjust the provisional value of the construction project previously entered to match the approved final settlement value:

+ If the final settlement value is lower than the provisional value, the State Bank unit adjusts the reduction in the construction project value, the difference is recorded:

Debit Account 468 "Other Pending Payment Items" (Sub-account mentioned above)

Credit Account 301 "Tangible Fixed Assets" (Appropriate third-level account)

+ If the final settlement value is higher than the provisional value, the State Bank unit adjusts the increase in the construction project value, the difference is recorded:

Debit Account 301 "Tangible Fixed Assets" (appropriate third-level account)

Credit Account 468 "Other Pending Payment Items" (Sub-account mentioned above)

Then, settle the construction capital with the State Bank (Accounting and Finance Department):

Debit Account 468 "Other Pending Payment Items" (Sub-account mentioned above)

Credit Account 5111 "Transferred Funds Last Year"

C. ACCOUNTING FOR CONSTRUCTION INVESTMENT CAPITAL OF THE STATE BANK

Simultaneously, urge the Project Management Board to promptly record the final settlement of construction costs.

Note: Account 591 "Other Payments between State Bank Units" is only used for State Bank units that do not participate in electronic fund transfers.

Article 11.Record at the Project Management Board (Accounting Department)

1. Upon receipt of the notification from the commercial bank (where the Project Management Board has an account) regarding the transfer of construction investment capital from the State Bank into its account, record:

Debit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

Credit Account 4662.1 "State Bank Advance Capital for the Project"

2. When expenses for the construction project arise using the State Bank's temporary capital, record:

- In case the unit advances funds to Party B or another individual, record:

Debit Account 3233 "Advance Capital for Party B"

or Debit Account 3239 "Other Receivables"

Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

or Credit Account 1030 "Cash at Subordinate Units"

- When there is completed work volume and interim payment, record:

Debit Account 1030 "Cash at Subordinate Units"

Debit Account 3223 "Labor Costs" (In case the Project Management Board directly pays labor costs)

Debit Account 3229 "Other Expenses"

Credit Account 3233 "Advance Capital for Party B"

or Credit Account 3239 "Other Receivables"

- When withdrawing cash for Project Management Board activities, record:

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

- When the Project Management Board directly purchases materials and equipment for storage, record:

Credit Account 3233 "Advance Payment to Party B" or Credit Account 3239 "Other Receivables"

Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

Credit Account 3222 "Materials for Construction Investment"

- When materials are issued for the project, record:

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4661 "State Budget Capital Allocated for the Project"

- When reasonable expenses occur for the project, record:

Debit Account 3223 "Labor Costs" (In case the Project Management Board directly pays labor costs)

- When issuing materials and equipment for use in the project, the accounting entry is:

Credit Account 1030 "Cash at Subordinate Units"

or Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

3. During the implementation of the construction investment project, if other income sources arise (interest on bank deposits, other income...), record:

Debit Account "Construction Investment Capital Deposited at Commercial Banks"

or Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4662.2 "Interest on Construction Investment Deposits and Other Income Related to Construction"

At year-end, prepare a Statement of Interest on Construction Investment Deposits and Other Income Related to Construction (Annex No. 04) to be sent to the Accounting and Finance Department and based on this statement, prepare a transfer voucher to transfer all such income to Account 4662.1 "State Bank Advance Capital for the Project":

Debit Account 4662.2 "Interest on Construction Investment Deposits and Other Income Related to Construction"

Credit Account 4662.1 "State Bank Advance Capital for the Project"

4. When the construction project is completed, the Project Management Board transfers construction costs to the project cost account to determine the total project value, request the State Bank to approve the final settlement, record:

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4661 "State Budget Capital Allocated for the Project"

Credit Account 3239 "Other Expenses"

5. Upon verification and finalization of the project value by Party B, determine the value of the construction work to submit to the State Bank of Vietnam for approval of the final settlement: If the value of the final settlement of the construction work determined and proposed by the Project Management Board exceeds the amount already paid or temporarily advanced to Party B, then the difference shall be recorded as follows:

Debit Account 1030 "Cash at Subordinate Units"

Credit Account 4669 "Other Amounts Payable" (Detailed Account: Settlement with Party B and other entities and individuals).

6. After the final settlement has been approved by the State Bank of Vietnam, process as follows:

- If the value of the final settlement of the construction work approved by the State Bank of Vietnam is less than the amount submitted for approval by the Project Management Board, then the difference shall be recorded as follows:

Debit appropriate account (Account 4669...).

6. When the project is completed and enters the final settlement phase, the Project Management Board transfers labor costs and other construction investment costs to the Construction Costs account, with the following accounting entries:

- If the value of the final settlement of the construction work approved by the State Bank of Vietnam is less than the temporary capital provided by the State Bank of Vietnam for the project, the Project Management Board must immediately transfer back the excess capital to the State Bank of Vietnam (Accounting Department - Finance), record as follows:

Debit Account 4662.1 "Temporary Capital Provided by the State Bank of Vietnam for Construction Investment".

Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

- Record the full settlement of the cost accounts and the source of capital from the State Bank of Vietnam for the construction work:

- At the same time, settle the remaining amount due to Party B if the approved final settlement value of the construction work exceeds the amount temporarily advanced to Party B or other entities and individuals, and retain the warranty money for the construction work, record as follows:

Debit Account 4669 "Other Amounts Payable" (Detailed Account: Settlement with Party B and other entities and individuals).

Credit Account 3232 "Construction Investment Capital Deposited at Commercial Banks"

Credit Account 3222 "Materials for Construction Investment"

Credit Account 4663 "Warranty Money for Construction Work, Fixed Assets Retained Not Yet Due for Payment".

The recording of Account 4663 "Warranty Money for Construction Work, Fixed Assets Retained Not Yet Due for Payment" shall only be carried out when the construction work has been approved for final settlement and is still within the warranty period (in cases where the warranty period begins before the final settlement is approved, the entity will track the warranty money on Account 4669). When the warranty period expires without any damage to the construction work due to Party B's fault, the entity will fully refund the warranty money and accrued interest during the warranty period to Party B.

Chapter II. REPORTING, FINAL SETTLEMENT AND INSPECTION REGIME

Article 12. Preparation and submission of investment construction reports

1. For the Project Management Board:

- Monthly and annually, the Project Management Board prepares the Accounting Ledger Balance Sheet (Detailed to Level III - according to Form No. 01) and detailed receivables and payables report (Form No. 02) to send to the State Bank of Vietnam unit (where the approved project is located) for the State Bank of Vietnam unit to incorporate into its general Accounting Ledger Balance Sheet. Simultaneously, send one copy to the Accounting Department - Finance for monitoring and cross-checking with the Accounting Ledger Balance Sheet of the State Bank of Vietnam unit with an approved construction investment project.

- Quarterly, prepare the quarterly implementation report of investment (according to Form No. 03) to send to the Accounting Department - Finance (Investment Management Division) for monitoring.

Deadline for submission: before the 5th day of the next month, quarter, or year.

- When the investment project is completed, the Project Management Board is responsible for preparing complete final settlement reports on investment capital according to the forms attached to this regulation (from Form No. 05 to Form No. 15) to the State Bank of Vietnam unit (where the approved construction investment project is located) and simultaneously send one set of final settlement reports to the State Bank of Vietnam (Accounting Department - Finance) for reporting and submitting for final settlement approval.

2. For State Bank of Vietnam units (where there is an approved construction investment project):

Upon receipt of the Accounting Ledger Balance Sheet of the Project Management Board, they must check and reconcile the figures and consolidate them into their own Accounting Ledger Balance Sheet to send to the State Bank of Vietnam (Accounting Department - Finance) in accordance with the reporting regime.

Chapter III:

IMPLEMENTING PROVISIONS

Article 13.Responsibility for Implementation

1. For the Accounting Department - Finance:

- Quarterly and at the end of the year, the Accounting Department - Finance is responsible for consolidating the implementation of the investment plan, receiving capital, and settling investment capital of projects in the State Bank of Vietnam system to report to the Governor.

- Urging State Bank of Vietnam units with investment projects to submit comprehensive and timely reports in accordance with this Regulation; Recording temporary advances and settlement of construction investment capital promptly, completely, and in accordance with current regulations; Checking the figures of construction investment accounting transactions of State Bank of Vietnam units (including the accounting figures of the Project Management Board), if there are errors, requiring the State Bank of Vietnam units to correct the accounting figures in accordance with current regulations.

- Depending on the actual situation, the Accounting Department - Finance must periodically or unexpectedly conduct inspections of the use of capital, temporary advances, and settlement of completed construction investment works.

2. The Internal Audit Department is responsible for internal auditing and inspection of construction investment projects of the State Bank of Vietnam in accordance with the Governor's regulations.

3. For State Bank of Vietnam units with construction investment projects:

- The head of the State Bank of Vietnam unit is responsible for organizing the implementation of this Regulation at their unit.

- The Head of the Accounting and Settlement Department is responsible for supervising and controlling the recording of construction investment transactions at the Project Management Board, consolidating all accounting figures of the Project Management Board into the Accounting Ledger Balance Sheet of the State Bank of Vietnam unit.

- The Accounting Manager of the Project Management Board is responsible for directing the Project Management Board's accounting department to accurately, completely, and promptly record all construction investment transactions occurring at the unit, and prepare reports to be sent to the central State Bank of Vietnam in accordance with the regulations.

Article 14. Implementation

From the date this Regulation takes effect, all construction works at State Bank of Vietnam units with construction investment projects (including unfinished works not yet settled) must switch to recording in accordance with this Regulation.

The Director of the Accounting Department - Finance is responsible for guiding the specific transition to construction investment recording in accordance with this Regulation.

Article 15. Any amendments or supplements to this Regulation shall be decided by the Governor of the State Bank of Vietnam.