Decree No. 25/2017/ND-CP on State Financial Reports

DECREE

On State Financial Reports

^___________

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to Clause 5, Article 30 of the Accounting Law dated November 20, 2015;

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

At the proposal of the Minister of Finance;

The Government issues this Decree on State Financial Reports.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the contents of State Financial Reports; the organization and implementation of the preparation and public disclosure of State Financial Reports; and the responsibilities of agencies, units, and localities in providing information for the preparation of State Financial Reports.

Article 2. Applicability

1. Units responsible for preparing State Financial Reports and agencies, units, and organizations responsible for providing information for the preparation of State Financial Reports include:

a) Ministry of Finance;

b) National Treasury at all levels;

c) Agencies managing and implementing state budget revenues and expenditures at all levels;

d) Agencies managing state assets and capital at all levels;

đ) State agencies and organizations using the state budget;

e) Agencies and organizations managing state financial funds outside the state budget;

g) Public service units.

2. Units, organizations, and individuals utilizing State Financial Reports.

Article 3. Explanation of Terms

1. Financial Information Report: This is a report prepared by agencies, units, and organizations specified in Clause 1 of Articles 16, 17, and 18 of this Decree, following the format guided by the Ministry of Finance, to provide financial information about their own unit and subordinate units (if any), serving the preparation of State Financial Reports.

2. Consolidated Financial Information Report at the county level: This is a report prepared by the National Treasury at the county level reflecting all financial information of the state originating from the state budget or managed by the state within the scope of districts, counties, towns, provincial cities (collectively referred to as counties) to serve the preparation of State Financial Reports.

Article 4. Scope of Preparation of State Financial Reports

1. State Financial Reports are prepared nationwide (referred to collectively as National State Financial Report) and within provinces directly under the central government (referred to collectively as Provincial State Financial Report).

2. The National State Financial Report reflects all financial information of the state originating from the state budget or managed nationwide.

3. The Provincial State Financial Report reflects all financial information of the state originating from the state budget or managed within the province, provincial city directly under the central government (referred to collectively as province).

Chapter II
CONTENTS OF STATE FINANCIAL REPORTS

Article 5. State Financial Situation Report

1. The State Financial Situation Report is a comprehensive financial report used to reflect all information regarding assets; liabilities; and sources of capital of the state nationwide or within a province at the end of the reporting period.

2. Contents of the State Financial Situation Report:

a) State Assets:

State assets include all assets entrusted to units falling under the subject specified in Clause 1 of Article 2 of this Decree to hold, manage, and utilize according to regulations: Money and equivalent monetary items; receivables; inventory; financial investments; loans; tangible fixed assets; unfinished construction projects; intangible fixed assets; other assets.

b) State Liabilities:

State liabilities include all debts of the Government, local government debts, and other payable items of units falling under the subject specified in Clause 1 of Article 2 of this Decree that have obligations to pay.

c) State Capital Sources:

State capital sources include capital forming assets; cumulative surplus (or deficit) from state financial activities; other state capital sources.

3. Formats for the National and Provincial State Financial Situation Reports are prescribed in Appendix I attached to this Decree.

Article 6. Report on the Results of State Financial Activities

1. The report on the results of state financial activities is a consolidated financial report used to reflect the situation of income, expenses, and the results of state financial operations nationwide or within a province during the reporting period.

2. Contents of the report on the results of state financial activities:

a) State income:

State income includes revenue under the state budget (tax revenue; fee and charge revenue; revenue from crude oil and natural gas; revenue from state capital contributions and investments; non-repayable aid revenue and other revenue) and revenue not under the state budget generated by units within the scope defined in Clause 1, Article 2 of this Decree during the reporting period.

b) State expenses:

State expenses include expenditures from the state budget (wage and salary expenses and other human resource expenses; goods and service expenses; depreciation expenses; support and supplementary expenses; interest, fees, and charges related to loans and other expenses) and expenses from sources outside the state budget generated by units within the scope defined in Clause 1, Article 2 of this Decree during the reporting period.

c) Results of state financial activities:

The results of state financial activities are the difference between state income and expenses during the reporting period, reflecting either a surplus (income greater than expenses) or a deficit (income less than expenses) in state financial operations.

3. Formats for the national and provincial reports on the results of state financial activities are specified in Appendix II attached to this Decree.

Article 7. Cash Flow Statement

1. The cash flow statement is a consolidated financial report reflecting the situation of cash flows, including inflows and outflows of cash from primary activities, investment activities, and financing activities during the reporting period; the balance of cash and cash equivalents at the end of the reporting period of the state nationwide or within a province.

2. Contents of the cash flow statement:

a) Cash flows from primary activities of the state:

Cash flows from primary activities of the state are cash flows arising from regular state activities that are not investment or financing activities.

b) Cash flows from investment activities of the state:

Cash flows from investment activities of the state are cash flows arising from activities such as purchasing, constructing, liquidating, and selling long-term assets and other investments, excluding cash equivalents of the state.

c) Cash flows from financing activities of the state:

Cash flows from financing activities of the state are cash flows arising from borrowing, repaying borrowings, and other financing activities of the state.

3. Formats for the national and provincial cash flow statements are specified in Appendix III attached to this Decree.

Article 8. Notes to the State Financial Statements

1. The notes to the state financial statements are prepared to explain and supplement information about the state's financial situation, the results of state financial activities, and the state's cash flow situation during the reporting period nationwide or in a province.

2. Contents of the notes to the state financial statements:

The contents of the notes to the state financial statements include general information on economic and social conditions; general information on accounting bases and policies applied; additional and analytical information on the state's financial situation, the results of state financial activities, and the state's cash flow; explanations and clarifications regarding significant differences in key information between the state financial statements and the final accounts of the state budget.

3. Formats for the national and provincial notes to the state financial statements are specified in Appendix IV attached to this Decree.

Chapter III
PREPARATION AND PUBLIC DISCLOSURE OF STATE FINANCIAL REPORTS

Article 9. Rights and responsibilities of units preparing the State Financial Report

1. The State Treasury assists the Ministry of Finance in preparing the National State Financial Report to be submitted to the Government for reporting to the National Assembly.

2. The provincial State Treasury prepares the provincial State Financial Report according to the guidance of the State Treasury and submits it to the Provincial People's Committee for reporting to the Provincial People's Council and sends it to the State Treasury to prepare the National State Financial Report.

3. In cases where agencies, units, and organizations do not fully and promptly comply with the information provision regulations stipulated in Articles 16, 17, and 18 of this Decree, the State Treasuries at all levels shall publicly list them and temporarily suspend budget payments to these agencies, units, and organizations, except for salaries, allowances, social benefits, scholarships, and certain essential expenditures as prescribed by the Ministry of Finance. The issuance and payment will only resume when the agencies, units, and organizations have fully complied with the regulations.

Article 10. Procedure for preparing and submitting consolidated financial information reports of districts

1. The district-level State Treasury prepares and submits the report according to the following procedure:

a) Receiving, checking, and categorizing information from the financial information reports of units as stipulated in Clause 1, Article 16 of this Decree;

b) Cooperating with the units specified in Clause 1, Article 16 of this Decree to complete the financial information report;

c) Compiling the information for the report and processing duplicate information;

d) Preparing the consolidated financial information report of the district according to the prescribed form;

đ) Submitting the consolidated financial information report of the district to the provincial State Treasury to prepare the provincial State Financial Report, while also sending it to the District People's Committee and the same-level finance agency for their knowledge.

2. Deadline for preparing and submitting the consolidated financial information report of the district: Before June 30 of the next fiscal year.

Article 11. Procedure for preparing and submitting the provincial State Financial Report

1. The provincial State Treasury prepares and submits the report according to the following procedure:

a) Receiving, checking, and categorizing information from the consolidated financial information report of the district as stipulated in Point đ, Clause 1, Article 10 of this Decree and the financial information reports of units as stipulated in Clause 1, Article 17 of this Decree;

b) Cooperating with the Department of Finance and other units specified in Clause 1, Article 17 of this Decree to complete the financial information report;

c) Compiling the information for the report and processing duplicate information;

d) Preparing the provincial State Financial Report according to the prescribed form;

đ) Submitting it to the State Treasury to prepare the National State Financial Report; sending it to the Department of Finance for their knowledge; and simultaneously submitting it to the Provincial People's Committee for reporting to the Provincial People's Council.

2. Deadline for preparing and submitting the provincial State Financial Report: Before October 1 of the next fiscal year.

3. The Provincial People's Committee reports to the Provincial People's Council no later than 12 months after the end of the fiscal year.

Article 12. Procedure for preparing the National State Financial Report

1. The State Treasury prepares and submits the National State Financial Report according to the following procedure:

a) Receiving, checking, and categorizing information from the provincial State Financial Report as stipulated in Point đ, Clause 1, Article 11 of this Decree and the financial information reports of units as stipulated in Clause 1, Article 18 of this Decree;

b) Cooperating with the units specified in Clause 1, Article 18 of this Decree to complete the report information;

c) Compiling the information for the report and processing duplicate information;

d) Preparing the National State Financial Report according to the prescribed form.

2. The Ministry of Finance submits the National State Financial Report to the Government no later than 14 months after the end of the fiscal year.

3. The Government reports to the National Assembly no later than 18 months after the end of the fiscal year.

Article 13. Period for Preparing State Financial Reports

National and provincial state financial reports shall be prepared according to the annual accounting period from January 1 to December 31 of each calendar year.

Article 14. Disclosure of State Financial Reports

1. Contents of disclosure:

a) The People's Committee of the province shall disclose information in the provincial state financial report, including: the situation of state assets; local government debt and other liabilities of the state; sources of state capital; the situation of income, expenses, and financial results of the state; the situation of state cash flows within the province; excluding detailed data in the fields of national defense, security, and national reserves;

b) The Ministry of Finance shall disclose information in the national state financial report, including: the situation of state assets; public debt and other liabilities of the state; sources of state capital; the situation of income, expenses, and financial results of the state; the situation of state cash flows nationwide; excluding detailed data in the fields of national defense, security, and national reserves.

2. Forms of disclosure:

The disclosure of state financial reports shall be carried out through one or more forms: publishing printed materials, posting notices, publishing on the electronic portal, and other forms prescribed by law.

3. Time limit for disclosure:

a) The People's Committee of the province shall disclose the provincial state financial report within thirty days from the date the provincial state financial report is reported to the Provincial People's Council;

b) The Ministry of Finance shall disclose the national state financial report within thirty days from the date the national state financial report is reported to the National Assembly.

Article 15. Construction, Management of Information Database for State Financial Reports and Archiving of State Financial Reports

1. The State Treasury under the Ministry of Finance shall organize the construction, management, exploitation, and maintenance of the information database for state financial reports to ensure safety, suitability, and effectiveness.

2. The State Treasury shall organize the preservation and archiving of state financial reports in paper form or electronic data as prescribed by law.

3. The retention period for state financial reports: Permanent retention.

Chapter IV
RESPONSIBILITIES OF ORGANIZATIONS AND UNITS IN PROVIDING INFORMATION FOR THE PREPARATION OF STATE FINANCIAL REPORTS

INFORMATION FOR PREPARING THE STATE FINANCIAL REPORT

Article 16. Responsibilities of Organizations and Units Providing Information for the Preparation of County Consolidated Financial Information Reports

1. County-level agencies managing and implementing state budget revenues and expenditures; county-level agencies managing state assets and capital; communes, wards, and towns have the responsibility to prepare reports providing their unit's financial information and submit them to the County-level State Treasury.

Primary budget units at the county level have the responsibility to aggregate their unit's financial information and that of subordinate units according to the guidelines of the Ministry of Finance to prepare reports providing financial information and submit them to the County-level State Treasury.

2. The units specified in Clause 1 of this Article are responsible for the accuracy of the reports and must provide explanations and improvements to these reports upon request of the County-level State Treasury.

3. Deadline for preparing and submitting financial information reports: Before April 30 of the following fiscal year.

4. The Ministry of Finance shall prescribe formats and guide procedures for aggregating, preparing, and submitting the reports as stipulated in Clause 1 of this Article.

Article 17. Responsibilities of agencies and units providing information to prepare the Provincial State Financial Report

1. Agencies managing and implementing state budget revenue and expenditure at the provincial level; agencies managing state assets and funds at the provincial level shall be responsible for preparing financial information reports of their own units or units under their management and sending them to the State Treasury at the provincial level.

Level 1 budgetary units at the provincial level shall be responsible for compiling financial information of their own unit and subordinate units according to the guidelines of the Ministry of Finance to prepare financial information reports and send them to the State Treasury at the provincial level.

2. Units specified in Clause 1 of this Article shall be responsible for the accuracy of the report and shall implement explanations and improvements to the report as required by the State Treasury at the provincial level.

3. Deadline for preparing and submitting financial information reports: Before June 30 of the following fiscal year.

4. The Ministry of Finance shall prescribe formats and guide procedures for aggregating, preparing, and submitting the reports as stipulated in Clause 1 of this Article.

Article 18. Responsibilities of agencies and units providing information to prepare the National State Financial Report

1. Agencies managing and implementing central state budget revenue and expenditure; agencies managing central state assets and funds shall be responsible for preparing financial information reports of their own units or units under their management and sending them to the State Treasury.

Central level 1 budgetary units shall be responsible for compiling financial information of their own unit and subordinate units according to the guidelines of the Ministry of Finance to prepare financial information reports and send them to the State Treasury.

2. Units specified in Clause 1 of this Article shall be responsible for the accuracy of the report and shall implement explanations and improvements to the report as required by the State Treasury.

3. Deadline for preparing and submitting financial information reports: Before October 1 of the following fiscal year.

4. The Ministry of Finance shall prescribe formats and guide procedures for aggregating, preparing, and submitting the reports as stipulated in Clause 1 of this Article.

Chapter V
IMPLEMENTING PROVISIONS

Article 19. Effective Date

1. This Decree takes effect from January 1, 2018.

2. The first State Financial Report shall be prepared based on financial data from 2018.

Article 20. Implementation

1. The Ministry of Finance shall provide specific indicators for the State Financial Report and some provisions as stipulated in this Decree, inspect and urge the preparation of the State Financial Report.

2. The Minister, Head of a ministerial-level agency, agency under the Government, other central agencies, and Chairpersons of People's Committees of provinces and centrally-administered cities shall be responsible for organizing the implementation of this Decree./.