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

JOINT CIRCULAR

Guidelines for standards, conditions, procedures for appointment, removal, replacement, and granting of allowances for chief accountants and accounting supervisors in state accounting units.

Implementing Articles 45, 46, 47, 48, and 49 of 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 in the field of state accounting, after exchanging opinions with relevant ministries and agencies, the Ministry of Finance and the Ministry of Home Affairs issue guidelines for standards, conditions, procedures for appointment, removal, replacement, and granting of allowances for chief accountants and accounting supervisors in state accounting units as follows:

The subjects to which this Circular applies include 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, of 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:

I. APPLICABLE OBJECTS

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

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

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. Military units, including military courts and military procuracies;

1.8. Units managing state reserves, sectoral reserves, 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, occupational-political-social organizations, social organizations, occupational-social organizations using state budget funds;

1.11. Public service units whose operating costs are partially or fully guaranteed by the state budget;

1.12. Organizations managing national assets;

1.13. Investment project management boards funded by the state budget;

1.14. Associations, federations, general associations, 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. Self-financing public service units;

2.2. Non-publicly funded public service units;

2.3. Non-governmental organizations;

2.4. Associations, federations, and general associations self-financing;

2.5. Social organizations, occupational-social organizations self-financing;

2.6. Other organizations not using state budget funds.

II. STAFFING OF CHIEF ACCOUNTANTS AND ACCOUNTING SUPERVISORS OR HIRING CHIEF ACCOUNTANTS

1. Accounting units:

Accounting units are entities defined in Part I of this Circular that carry out accounting work and prepare financial statements in accordance with the Accounting Law. 2. Staffing of chief accountants

Accounting units must staff chief accountants, including:

2.1. Accounting units specified in Part I of this Circular, except those with small accounting workload as defined by the supervising ministry, which only staff one person as an accountant or an accountant兼任会计主管，如通 tư的第二部分第三点第二款所述。

2.2. Units collecting and disbursing state budgets at all levels that carry out budget accounting work.

2.3. Public service units and organizations using state budget funds, state reserve units, other state financial funds, and organizations conducting accounting work 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, of 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, and local departments organizing Level I, Level II, and Level III accounting units operate accounting work as accounting units.

For defense, security, and confidential units, staffing of 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. Staffing of accounting supervisors

Accounting units may staff accounting supervisors.

3.1. Accounting units specified in Item 2, Part II of this Circular, if lacking a chief accountant, the head of the accounting unit must immediately staff a chief accountant. If there is no person meeting the standards and conditions stipulated in Part III of this Circular to staff as a chief accountant, an accounting supervisor may be appointed. An accounting supervisor can only hold the position for a maximum of one fiscal year, after which a chief accountant must be appointed. If after one year of appointing an accounting supervisor, the supervisor still does not meet the standards and conditions to be appointed as a chief accountant, another person meeting the standards and conditions must be found to be appointed as a chief accountant or hire a chief accountant. For accounting units located in remote areas as defined by law, the time limit for staffing an accounting supervisor may be extended but must have the written agreement of the same-level finance agency.

3.2. Units with small accounting workload as defined by the supervising ministry, excluding units collecting and disbursing state budgets at all levels specified in Item 2.2, Part II of this Circular, which only staff one person as an accountant or an accountant兼任会计主管，不受担任会计主管时间限制。

3.3. Level III accounting units with subordinate accounting departments, if the head of the higher-level accounting unit decides, such subordinate accounting departments may also staff accounting supervisors.

4. Hiring chief accountants

4. Hiring an accounting manager

State-owned units and organizations not using state budget funds may hire accounting service enterprises or individuals registered to provide accounting services as chief accountants. State-owned units using state budget funds may also hire individuals to serve as chief accountants, with such decisions made by the legal representatives of those accounting units.

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

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

5.2. In accounting units where planning, finance, and statistics work are not separated into distinct departments, the chief accountant or person responsible for accounting will also be in charge of organizing and directing planning, finance, and statistics work.

5.3. For accounting units with large volumes of accounting work, it is possible to appoint a chief accountant while also appointing a Deputy Head of Department (or Deputy Head of Section) of Accounting. The Deputy Head of Department (or Deputy Head of Section) of Accounting assists the chief accountant in performing assigned tasks.

III. STANDARDS AND CONDITIONS FOR APPOINTMENT AS CHIEF ACCOUNTANT OR RESPONSIBLE PERSON FOR ACCOUNTING, OR FOR HIRING 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 struggle to protect economic policies, financial systems, and laws of the State.

b) Regarding professional qualifications

- For accounting units 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 units 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 units 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-level 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 as stipulated in the Regulation on Organizing Training and Issuing Chief Accountant Certificates issued pursuant to 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 responsible person for accounting

A person appointed as responsible person for accounting must meet the standards prescribed for the moral character and professional qualifications of a chief accountant but may not yet have the required actual working experience in accounting or the Chief Accountant Training Certificate as stipulated in sub-point b, point 1.2, section 1, part III of this Circular.

3. Standards and conditions for persons 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, regarding Independent Auditors;

3.2. Holding a Chief Accountant Training Certificate as prescribed in sub-point 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, a chief accountant from a higher-level unit may be appointed concurrently as a chief accountant for a lower-level accounting unit, provided that such individual meets the standards and conditions prescribed for a chief accountant of the higher-level accounting unit.

IV. PROCEDURES FOR APPOINTMENT, REMOVAL, REPLACEMENT OF CHIEF ACCOUNTANT OR RESPONSIBLE PERSON FOR ACCOUNTING; HIRING AND TERMINATION OF CONTRACT WITH PERSONS HIRED AS CHIEF ACCOUNTANT

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

1.1. Accounting units under central government revenue and expenditure activities must prepare a dossier to request the appointment of a chief accountant, which is submitted to the Minister of Finance for appointment; accounting units under local government revenue and expenditure activities are appointed by the Deputy Head of the unit at the relevant level;

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

a) First-level accounting units under the central government, state-owned units established by state agencies that self-balance income and expenditure under the central government must prepare a dossier to request the appointment of a chief accountant or responsible person for accounting, which is submitted to the Minister, Deputy Minister of equivalent rank, or the head of a government agency for appointment or assignment;

b) First-level accounting units under local governments must prepare a dossier to request the appointment of a chief accountant or responsible person for accounting, which is submitted to the Chairman of the People's Committee at that level for appointment or assignment;

c) The level II and III accounting units shall prepare a dossier to propose the appointment of the Chief Accountant or the person in charge 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 the Chairman of the People's Councils at those levels decide on the appointment of the Chief Accountant or the person in charge of accounting.

1.4. For other accounting units, the Chief Accountant or the person in charge of accounting shall be appointed by the Head of the accounting unit.

1.5. The term of appointment for the Chief Accountant or the person in charge 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, it is five years. The procedure for reappointment shall be carried out according to the procedure for reappointing leaders as prescribed in this Circular.

2. Procedures for signing contracts to hire persons as Chief Accountants

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

2.2. Costs for hiring a Chief Accountant shall be agreed upon in the contract to hire a person as Chief Accountant.

3. Procedures for dismissing, replacing the Chief Accountant or the person in charge of accounting, terminating the contract with the hired Chief Accountant

3.1. The level that appoints the Chief Accountant or the person in charge of accounting has the right to dismiss or replace the Chief Accountant or the person in charge of accounting. The procedures for dismissal and replacement of the Chief Accountant or the person in charge of accounting shall be carried out according to the procedures for appointing the Chief Accountant or the person in charge of accounting.

3.2. If the person hired as Chief Accountant violates the provisions of the contract, their employment contract as Chief Accountant will be terminated. The procedure for terminating the contract to hire a person as Chief Accountant shall be carried out according to the procedure for signing a contract to hire an individual directly hired or an accounting service enterprise or auditing enterprise as prescribed in this Circular.

V. ALLOWANCE FOR CHIEF ACCOUNTANT AND PERSON IN CHARGE OF ACCOUNTING

1. The Chief Accountant of accounting units specified in Section 1, Part I and point 2.1, Section 2, Part I of this Circular shall enjoy a position allowance equivalent to the position allowance of the Department Head (Director) of the unit, plus an additional responsibility allowance at a rate of 0.1 coefficient compared to the minimum wage stipulated in paragraph 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 type A2 staff with a new salary coefficient of grade 1: 4.40. On April 1, 2005, Ms. B was appointed as Chief Accountant of the Institute, with a Department Head position allowance coefficient of 0.5. The calculation of the Chief Accountant allowance for Ms. B is as follows:

Allowance for Chief Accountant: 0.5 + 0.1 = 0.6

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

2. The person in charge of accounting of accounting units specified in Section 1, Part I and point 2.1, Section 2, Part I of this Circular shall enjoy a position allowance equivalent to the position allowance of the Department Head (Director) of the unit.

3. For the remaining accounting units, the Chief Accountant and the person in charge of accounting shall base their allowances on the standards set forth in Sections 1 and 2 of Part V of this Circular and apply them appropriately to the activities of the unit.

4. In cases where a person is simultaneously appointed as Chief Accountant of a higher-level accounting unit and a lower-level accounting unit (level II, III), they shall enjoy the allowance prescribed for the Chief Accountant of the higher-level accounting unit.

VI. IMPLEMENTATION

1. Accounting units shall be responsible for:

1.1. Appointing or assigning persons who meet the required qualifications and conditions to serve as Chief Accountant or the person in charge 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 the Chief Accountant or the person in charge of accounting, or the provisions regarding hiring a Chief Accountant as prescribed in this Circular;

2. Ministries, agencies equivalent to ministries, government agencies, provincial People's Committees, and centrally governed cities shall be responsible for:

2.1. Directing and guiding agencies, units, and organizations to implement the organization and procedures for appointing, dismissing, replacing, and setting allowances for Chief Accountants and persons in charge of accounting, or hiring persons as Chief Accountants, in accordance with state regulations and the guidance provided in this Circular.

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

2.3. For accounting units currently having a Department Head or Director of Accounting, they should review and if qualified, immediately appoint them as Chief Accountant; if not qualified, transfer them to the role of person in charge of accounting.

3. The Ministry of Finance shall be responsible:

3.1. Taking the lead in researching and guiding the supplementation of criteria, conditions, procedures for appointing, dismissing, replacing Chief Accountants and persons in charge of accounting, and hiring persons as Chief Accountants in accordance with the Accounting Law, Decree No. 128/2004/NĐ-CP, and this Circular.

3.2. Cooperating with the Ministry of Home Affairs to inspect the implementation of the appointment, dismissal, replacement, and setting allowances for Chief Accountants and persons in charge of accounting, and hiring persons as Chief Accountants in state accounting agencies, units, and organizations in accordance with this Circular.

VII. IMPLEMENTATION PROVISIONS

1. Based on the provisions of this Circular, ministries, agencies equivalent to ministries, government agencies, provincial People's Committees, and centrally governed cities shall direct agencies, units, and organizations to implement the appointment, dismissal, replacement, and setting salaries for Chief Accountants and persons in charge of accounting, and hiring persons as Chief Accountants in accordance with state regulations.

This Circular takes effect fifteen days after its publication in the Official Gazette.

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