Joint Circular No. 50/2005/TTLT-BTC-BNV guides standards, conditions, procedures for appointing, dismissing, replacing, and granting allowances to chief accountants and accounting supervisors in state-owned accounting units within the public accounting sector.

CIRCULAR

Guidelines on standards, conditions, procedures for appointing, dismissing, replacing, and determining allowances for chief accountants responsible for accounting in state-owned accounting units,

 in the field of state accounting

______________________________

Pursuant to Articles 45, 46, 47, 48, and 49 of Decree No. 128/2004/NĐ-CP dated May 31, 2004, issued by the Government detailing and guiding the implementation of certain provisions of the Accounting Law in the field of state accounting, after exchanging opinions with relevant ministries and agencies, the Ministry of Finance and the Ministry of Home Affairs hereby issue guidelines on standards, conditions, procedures for appointing, dismissing, replacing, and determining allowances for chief accountants responsible for accounting in state-owned accounting units, as follows:

I. APPLICABLE OBJECTS

The Circular applies to agencies, units, organizations in the field of state accounting that must perform accounting tasks as stipulated in Article 2 of Decree No. 128/2004/NĐ-CP dated May 31, 2004, issued by the Government detailing and guiding the implementation of certain provisions of the Accounting Law in the field of state accounting (hereinafter referred to as accounting units), as follows:

1. State agencies, public service units, organizations using state budget funds, including:

1.1. Agencies and organizations at all levels responsible for collecting and disbursing state budget funds;

1.2. National Assembly Office;

1.3. President's Office;

1.4. Government Office;

1.5. People's Courts at all levels;

1.6. People's Procuracy at all levels;

1.7. Civilian armed units, including Military Courts and Military Procuracies;

1.8. Units managing state reserves at various levels and other state financial funds (hereinafter referred to as state reserve units);

1.9. Ministries, ministerial-level agencies, government agencies, People's Councils at all levels, including level II and III accounting units directly under People's Councils at all levels; People's Committees at all levels, including level II and III accounting units directly under People's Committees at all levels;

1.10. Political organizations, political-social organizations, political-professional social organizations, social organizations, social-professional organizations using state budget funds;

1.11. Public service units partially or fully funded by the state budget;

1.12. State asset management organizations;

1.13. Project Management Boards with state budget funding;

1.14. Associations, Federations, Unions, and other organizations partially funded by the state budget for their operations.

2. Public service units, organizations not using state budget funds, including:

2.1. Public service units self-balancing income and expenditure;

2.2. Non-public public service units;

2.3. Non-governmental organizations;

2.4. Associations, Federations, Unions self-balancing income and expenditure;

2.5. Social organizations, social-professional organizations self-collecting and self-disbursing funds;

2.6. Other organizations not using state budget funds.

II. ASSIGNING PERSONS TO BE CHIEF ACCOUNTANTS OR RESPONSIBLE FOR ACCOUNTING OR ENGAGING CHIEF ACCOUNTANTS

1. Accounting units: Accounting units as defined in Part I of this Circular that carry out accounting work and prepare financial reports in accordance with the Accounting Law.

2. Assigning persons to be chief accountants

Accounting units must assign persons to be chief accountants, including:

2.1. Accounting units as defined in Part I of this Circular, except those with small accounting workload as specified by the supervising ministry, which only assign one person to be an accountant or an accountant兼任多个职位。

2.2. Units collecting and disbursing state budget funds at all levels performing state budget accounting work.

2.3. Public service units, organizations using state budget funds, state reserve units, and other state financial funds, organized according to the budgetary level determined as accounting units under Clause 2, Article 48 of Decree No. 128/2004/NĐ-CP dated May 31, 2004, issued by the Government, including:

a) Level I accounting units;

b) Level II accounting units;

c) Level III accounting units.

2.4. Ministries, ministerial-level agencies, government agencies organizing Level I, Level II, and Level III accounting units, local departments organizing Level I, Level II, and Level III accounting units operate accounting work as accounting units.

For defense, security, confidential units, the assignment of persons to be chief accountants shall be regulated by the Ministry of Defense, the Ministry of Public Security, and the Confidentiality Bureau of the Government after consultation with the Ministry of Finance.

3. Assigning persons to be responsible for accounting

Accounting units may assign persons to be responsible for accounting.

3.1. If accounting units as defined in Item 2, Part II of this Circular lack a chief accountant, the head of the accounting unit must immediately assign a chief accountant. In cases where there is no person meeting the standards and conditions stipulated in Part III of this Circular to be assigned as a chief accountant, a person responsible for accounting can be assigned. Such assignment is limited to a maximum of one fiscal year, after which a chief accountant must be assigned. If after one year of assigning a person responsible for accounting, such person still does not meet the standards and conditions to be assigned as a chief accountant, another person meeting the standards and conditions must be found to be assigned as a chief accountant or engage a chief accountant. For accounting units located in remote areas as defined by law, the duration of responsibility for accounting can be extended but must have the written agreement of the same-level finance authority.

3.2. Units with small accounting workload as specified by the supervising ministry, excluding units collecting and disbursing state budget funds at all levels as defined in Item 2.2, Part 2, Part II of this Circular, only assign one person to be an accountant or an accountant兼任多个职位，such assignment is not subject to time limits.

3.3. Level III accounting units with subordinate accounting departments, if decided by the head of the higher-level accounting unit, may also assign persons to be responsible for accounting.

4. Engaging chief accountants

Non-state entities and organizations not using state budget funds may hire accounting service enterprises or individuals registered to provide accounting services as chief accountants. State budget-funded non-state entities may also hire individuals to serve as chief accountants, with such appointments decided by the legal representative of the accounting entity.

5. Relationship between chief accountant and deputy chief accountant with head of accounting department and deputy head of accounting department

5.1. Accounting entities that have appointed a chief accountant or assigned an accounting supervisor shall not appoint a Head of Department or Head of Section for accounting. The chief accountant or accounting supervisor will concurrently perform tasks assigned to the Head of Department or Head of Section.

5.2. In accounting entities where planning, finance, and statistics functions are not separated into distinct departments, the chief accountant or accounting supervisor will be responsible for organizing and directing planning, finance, and statistical work.

5.3. For accounting entities with large volumes of accounting work, the position of chief accountant can be concurrently appointed along with the appointment of Deputy Head of Department (or Deputy Head of Section). The Deputy Head of Department (or Deputy Head of Section) assists the chief accountant in performing assigned tasks.

III. STANDARDS AND CONDITIONS FOR APPOINTMENT AS CHIEF ACCOUNTANT OR ACCOUNTING SUPERVISOR, OR FOR HIRING AS CHIEF ACCOUNTANT

APPOINTMENT AS CHIEF ACCOUNTANT

1. Standards and conditions for appointment as chief accountant

1.1. Standards for appointment as chief accountant:

a) Regarding moral character

- Meeting the standards of moral character prescribed for civil servants or public officials.

- Possessing professional ethics characterized by honesty, integrity, and a sense of compliance and defense of economic, financial policies, and state laws.

b) Regarding professional qualifications

- For accounting entities specified in point 1.1 section 1 Part I at central-level budget units and provincial-level budget units, the chief accountant must have a professional qualification in accounting at the bachelor's degree level or higher; for other budget units, the chief accountant must have a professional qualification in accounting at the intermediate level or higher;

- For remaining accounting entities at the central and provincial levels, the chief accountant must have a professional qualification in accounting at the bachelor's degree level or higher; for accounting entities at other levels, the chief accountant must have a professional qualification in accounting at the intermediate level or higher.

c) Regarding actual working experience in accounting

- For the position of chief accountant requiring a bachelor's degree or higher, the minimum actual working experience in accounting is two years;

- For the position of chief accountant requiring an intermediate or college-level professional qualification, the minimum actual working experience in accounting is three years.

1.2. Conditions for appointment as chief accountant:

a) Meeting the standards prescribed in point 1.1 section 1 part III of this Circular;

b) Holding a Chief Accountant Training Certificate issued according to the Regulation on Organizing Training and Issuing Chief Accountant Certificates promulgated by Decision No. 43/2004/QD-BTC dated April 26, 2004, or a Chief Accountant Training Certificate issued before April 26, 2004, as stipulated in Decision No. 159 TC/CĐKT dated September 15, 1989, and Decision No. 769 TC/QĐ/TCCB dated October 23, 1997, of the Minister of Finance;

c) Not belonging to the categories of persons prohibited from engaging in accounting as prescribed in Article 51 of the Accounting Law.

2. Standards and conditions for appointment as accounting supervisor

An individual appointed as accounting supervisor must meet the standards prescribed for the professional ethics and qualifications of a chief accountant but may not yet have sufficient actual working experience in accounting or a Chief Accountant Training Certificate as stipulated in sub-item b point 1.2 section 1 part III of this Circular.

3. Standards and conditions for individuals hired as chief accountant

3.1. Holding an Accounting Practice Certificate as prescribed in Article 57 of the Accounting Law or a Certified Public Accountant Certificate as prescribed in Article 13 of Government Decree No. 105/2004/NĐ-CP dated March 30, 2004, concerning Independent Auditors;

3.2. Holding a Chief Accountant Training Certificate as prescribed in sub-item b point 1.2 section 1 part III of this Circular;

3.3. Having a business registration for accounting services, a practice certificate for accounting, or a practice registration for auditing in an accounting or auditing service enterprise;

3.4. Not belonging to the categories of persons prohibited from engaging in accounting as prescribed in Article 51 of the Accounting Law.

4. In cases where the volume of accounting work is not significant, the chief accountant of a higher-level unit may be concurrently appointed as the chief accountant of a lower-level accounting unit, provided that such individual meets the standards and conditions prescribed for the chief accountant of the higher-level accounting unit.

IV. PROCEDURES FOR APPOINTMENT, REMOVAL, REPLACEMENT OF CHIEF ACCOUNTANT OR ACCOUNTING SUPERVISOR; HIRING AND TERMINATION OF CONTRACTS WITH INDIVIDUALS HIRED AS CHIEF ACCOUNTANT

 PROCEDURES FOR APPOINTMENT, REMOVAL, REPLACEMENT OF CHIEF ACCOUNTANT OR ACCOUNTING SUPERVISOR; HIRING AND TERMINATION OF CONTRACTS WITH INDIVIDUALS HIRED AS CHIEF ACCOUNTANT

1. Procedures and deadlines for appointment of chief accountant or accounting supervisor

1.1. Central-level budget revenue and expenditure accounting entities must prepare a proposal for the appointment of a chief accountant and submit it to the Minister of Finance for approval; local-level budget revenue and expenditure accounting entities, whose deputy heads are appointed by a certain level, shall have their chief accountants or accounting supervisors appointed or assigned tasks by that level;

1.2. Non-state entities established by state agencies that self-balance income and expenditure, organizations using state budget funds, state reserve units, and other state financial funds, accounting organizations according to budget levels (first-level accounting units, second-level accounting units, third-level accounting units), the procedures for appointment or assignment of tasks for chief accountant or accounting supervisor are as follows:

a) First-level accounting units under the central government, non-state entities established by state agencies that self-balance income and expenditure under the central government must prepare a proposal for the appointment of a chief accountant or accounting supervisor and submit it to the Minister, Deputy Minister of equivalent rank, or the head of a government agency for approval or assignment of tasks;

b) First-level accounting units under local governments must prepare a proposal for the appointment of a chief accountant or accounting supervisor and submit it to the Chairman of the People's Committee at that level for approval or assignment of tasks;

c) The second and third-level accounting units shall prepare a dossier to propose the appointment of an accounting director or head of accounting for approval by the competent authority with the power to appoint Deputy Heads of Units to make such appointments or assign tasks.

1.3. Accounting units managed by People's Councils at all levels shall have their accounting directors or heads of accounting appointed by the Chairpersons of the People's Councils at those levels.

1.4. For other accounting units, the accounting directors or heads of accounting shall be appointed by the Heads of those accounting units.

1.5. The term of appointment for accounting directors or heads of accounting is not limited in time. However, for the accounting units specified in Points 1.1 and 1.2 of Section 1, Part IV above, the term is five years. The procedure for reappointment shall be carried out according to the procedure prescribed for reappointing leaders of units.

2. Procedure for signing contracts to hire individuals to serve as accounting directors

2.1. Accounting units specified in Section 4, Part II of this Circular that hire individuals to serve as accounting directors must sign written contracts in accordance with the provisions of the law. Before signing a contract to hire an accounting director, the hiring unit must prepare a dossier to submit to the competent authority with the power to appoint accounting directors as stipulated in Section 1, Part IV of this Circular for approval; in the case of public service units established by the State, hiring individuals to serve as accounting directors does not require signing a work contract but only a labor contract which includes relevant clauses related to hiring an accounting director at the unit as prescribed by law.

2.2. Costs for hiring an accounting director shall be agreed upon in the contract to hire an individual to serve as an accounting director.

3. Procedures for dismissing, replacing accounting directors or heads of accounting, terminating contracts with hired accounting directors

3.1. The level that appoints an accounting director or head of accounting has the right to dismiss or replace them. The procedures for dismissing or replacing accounting directors or heads of accounting shall be carried out according to the procedures for appointing accounting directors or heads of accounting.

3.2. If a hired accounting director violates the provisions of the contract, their employment contract as an accounting director will be terminated. The procedure for terminating a contract to hire an individual to serve as an accounting director shall be carried out according to the procedure for signing a contract to hire an individual or a service accounting and auditing company directly hired.

V. SUBSIDIES FOR ACCOUNTING DIRECTORS AND HEADS OF ACCOUNTING

1. Accounting directors of accounting units specified in Section 1, Part I, Point 2.1, Section 2, Part I of this Circular shall enjoy a position allowance equivalent to the position allowance of a Department Head (Directorate Head) of the unit, plus an additional responsibility allowance at a rate of 0.1 times the minimum wage as stipulated in Subpoint d2, Point d, Section 7, Article 6 of Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on salary regulations for civil servants, public officials, and armed forces personnel.

Example: Ms. Nguyen Thi B is a staff member under the establishment of the Livestock Feed Research Institute under the Department of Agriculture and Rural Development of Bac Giang Province. Ms. B is classified as a Class A2 staff member with a new salary coefficient at Level 1: 4.40. On April 1, 2005, Ms. B was appointed as the Accounting Director of the Institute, with a Department Head allowance coefficient of 0.5. The calculation of the Accounting Director allowance for Ms. B is as follows:

Accounting Director Allowance: 0.5 + 0.1 = 0.6

Ms. B's Salary: 290,000 VND x (4.4 + 0.6) = 1,450,000 VND

2. Heads of accounting of accounting units specified in Section 1, Part I, Point 2.1, Section 2, Part I of this Circular shall enjoy a position allowance equivalent to that of a Department Head (Directorate Head) of the unit.

3. For accounting directors and heads of accounting of other units, they shall apply the allowances for accounting directors and heads of accounting as prescribed in Sections 1 and 2 of Part V of this Circular in accordance with the activities of the unit.

4. In cases where an individual is concurrently appointed as an accounting director of a higher-level accounting unit and an accounting director of a lower-level accounting unit (second and third level), they shall enjoy the allowance prescribed for an accounting director of the higher-level accounting unit.

VI. IMPLEMENTATION

1. Accounting units shall be responsible for:

1.1. Appointing or assigning individuals who meet the required standards and conditions to serve as accounting directors or heads of accounting at the unit in accordance with Decree No. 128/2004/NĐ-CP and the guidance provided in this Circular;

1.2. Implementing the provisions regarding the procedures for appointing, dismissing, replacing accounting directors or heads of accounting, or the provisions regarding hiring individuals to serve as accounting directors as prescribed in this Circular;

2. Ministries, agencies at the level of ministries, government agencies, provincial People's Committees, and municipal People's Committees directly under the central government shall be responsible for:

2.1. Directing and guiding agencies, units, and organizations to implement the deployment of accounting director positions, procedures for appointing, dismissing, replacing, and setting accounting director allowances or hiring individuals to serve as accounting directors in accordance with state regulations and the guidance of this Circular.

2.2. Cooperating with financial, accounting, and auditing academies, universities, and colleges, and the Vietnam Association of Accountants and Auditors to organize training courses for accounting directors to ensure that individuals appointed as accounting directors meet the standards and conditions prescribed in this Circular.

2.3. For accounting units currently having Department Heads or Directorate Heads of Accounting, they should review these positions; if they meet the required standards and conditions, they should immediately be appointed as accounting directors; if they do not meet the conditions, they should be transferred to become heads of accounting.

3. The Ministry of Finance shall be responsible:

3.1. To take the lead in researching and guiding the supplementation of standards, conditions, procedures for appointing, dismissing, replacing accounting directors or heads of accounting, and hiring individuals to serve as accounting directors in accordance with the Accounting Law, Decree No. 128/2004/NĐ-CP, and this Circular.

3.2. To cooperate with the Ministry of Home Affairs to inspect the implementation of the appointment, dismissal, replacement, and setting of accounting director allowances, and hiring individuals to serve as accounting directors in agencies, units, and organizations within the field of state accounting in accordance with this Circular.

VII. IMPLEMENTATION PROVISIONS

1. Pursuant to the provisions set forth in this Circular, the Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities shall direct their subordinate agencies and units to organize the implementation of the appointment, removal, replacement, and salary classification for chief accountants, accounting supervisors, and the hiring of chief accountants in accordance with the State's regulations.

2. This Circular takes effect fifteen days from the date of publication in the Official Gazette. The allowances for chief accountants and accounting supervisors stipulated in this Circular shall be effective as of October 1, 2004.

During the implementation process, if there are difficulties or obstacles, the Ministries, sectors, localities, and units shall promptly report them to the Joint Ministry of Finance - Ministry of Home Affairs for study and resolution./.