Circular No. 78/2020/TT-BTC guiding accounting for civil enforcement operations

CIRCULAR

GUIDELINES FOR ACCOUNTING OF CIVIL ENFORCEMENT PROCEDURES CIVIL LITIGATION JUDGMENTS

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Civil Enforcement Law on November 28, 2008;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Civil Enforcement Law on November 25, 2014;

Pursuant to Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law;

Pursuant to Decree No. 62/2015/NĐ-CP dated July 18, 2015 of the Government detailing and guiding the implementation of certain provisions of the Civil Enforcement Law;

Pursuant to Decree No. 33/2020/NĐ-CP dated March 17, 2020 of the Government amending and supplementing certain provisions of Decree No. 62/2015/NĐ-CP dated July 18, 2015 of the Government detailing and guiding the implementation of certain provisions of the Civil Enforcement Law;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Management and Supervision of Accounting and Auditing,

The Minister of Finance issues this Circular guiding accounting for civil enforcement procedures.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular prescribes accounting vouchers, accounting accounts, accounting ledgers, financial reports, civil enforcement business reports, and other related contents applicable to units specified in Article 2 of this Circular for recording accounting transactions arising from civil enforcement activities, including:

1. Money and assets generated during the enforcement process according to each enforcement decision;

2. Management situation of money, assets, and evidence;

3. Payment situations within and outside civil enforcement agencies and other activities assigned to civil enforcement accounting personnel to perform as prescribed.

Article 2. Applicability

This Circular applies to the following units:

1. The General Department of Civil Enforcement under the Ministry of Justice;

2. Provincial Civil Enforcement Departments (hereinafter referred to as Civil Enforcement Departments);

3. District Civil Enforcement Agencies (hereinafter referred to as Civil Enforcement Agencies);

4. Other organizations and individuals related to civil enforcement accounting.

Article 3. Currency Units in Civil Enforcement Accounting

1. Civil enforcement accounting uses the Vietnamese Dong as the currency unit for recording ledgers. In cases where receipts and payments are made in foreign currencies, they must be recorded in the original currency and converted into Vietnamese Dong based on the exchange rate for accounting purposes.

2. For gold, silver, and precious stones when received or dispatched for temporary custody or payment to parties involved, the quantity, weight, and value must be tracked according to the accounting price, while also tracking details such as quantity, weight, grade, and value of gold, silver, and precious stones according to each enforcement decision.

3. In cases where payment must be made in foreign currency or gold, silver, and precious stones, it shall be based on the civil enforcement decision for payment in foreign currency or gold, silver, and precious stones. If one of the parties requests payment in a different method than that specified in the enforcement decision, the parties shall directly negotiate based on the quantity recorded in the enforcement decision.

4. The accounting price is determined based on the value of temporarily held assets and evidence by the head of the civil enforcement agency, enforcement officer, or accountant based on the price list issued by the provincial People's Committee or market prices at the time of recording. In cases where the accounting price cannot be determined, it shall be recorded based on an agreed price.

The accounting price may be rounded off and used throughout the enforcement process of each specific enforcement decision, but it shall not serve as a basis for auction, exchange, payment in lieu of foreign currency, gold, silver, precious stones, or other assets, or as a basis for charging fees. If there is a basis to determine a change in the accounting price (increase or decrease), the unit must record a supplementary entry (increase or decrease) for the difference compared to the previously recorded amount.

5. In cases where gold, silver, precious stones, foreign currency, or other assets are evidence temporarily held in sealed bags or containers stored at the State Treasury or kept in the temporary storage of the civil enforcement agency without determining their equivalent value, they shall be recorded in the ledger based on an agreed price.

6. Physical inventory accounting uses the officially recognized measurement units of Vietnam (such as piece, kilogram, box, bottle, meter). When necessary, auxiliary measurement units may be used for verification, comparison, or detailed accounting purposes, but they must subsequently be converted into the officially recognized measurement units.

Article 4. Accounting Periods

1. Annual accounting period: Consists of twelve full months according to the Gregorian calendar, starting from October 1st of the previous year until September 30th of the following year.

2. Quarterly accounting period: Runs from the first day of the quarter's first month to the last day of the quarter's last month.

3. Monthly accounting period: Runs from the first day to the last day of the month.

Article 5. Inventory of Assets

1. Civil Enforcement Agencies must conduct regular and irregular inventories to determine the amount of funds in the treasury, assets, and evidence stored in the warehouse, ensuring that these figures match the records in the accounting books at the time of inventory. In cases where there is a discrepancy between the inventory results and the accounting records, a thorough review must be conducted to identify the cause, report to the competent authority for handling the discrepancy, and if there is a shortage, assign material responsibility for resolution. Based on the decision regarding the handling of inventory discrepancies, the accountant shall adjust the accounting books to ensure that the figures in the books match the actual figures.

2. Regular inventory: Conducted at the end of each quarter and fiscal year before preparing the civil enforcement business reports.

3. Irregular inventory: The unit must conduct an irregular inventory in cases of natural disasters, fires, handovers, mergers, consolidations, divisions, separations of units, other unusual incidents, and as decided by the competent state authorities.

Article 6. Accounting Audit

Civil Enforcement Agencies must undergo regular accounting audits by higher-level Civil Enforcement Agencies and by competent state authorities as prescribed by law.

The content of the accounting audit is carried out in accordance with accounting laws. Heads and accountants of Civil Enforcement Agencies must comply with financial and accounting inspection decisions made by competent state authorities as prescribed by law.

Article 7. Accounting Tasks for Civil Enforcement Business

1. Accounting tasks at the Bureau and Branches of Civil Enforcement

a) Collecting, processing accounting information and data on civil enforcement activities and the management of money, assets, and evidence during the enforcement process. Opening accounting books and recording economic and financial transactions in compliance with regulations.

b) Monitoring revenues from subjects; payments and refunds to subjects; payments to the state budget; the situation of fund receipts and expenditures; the management of temporarily held assets and evidence during the enforcement process; identifying and preventing violations of financial and accounting laws in civil enforcement.

c) Supervising and managing revenues from civil enforcement implemented by detention centers on a regular basis.

d) Monthly, quarterly, and annually reconciling detailed income and expenditure accounts and asset receipts and expenditures between accounting books and individual enforcement case files of Enforcement Officers (if any changes occur), taking timely and final measures to resolve any discrepancies or arrears in accordance with accounting, finance, and civil enforcement laws. For completed enforcement case files, reconciliation must be done before approving the file for archiving.

đ) Preparing and submitting civil enforcement business reports and financial statements as required; in addition to provincial reports, the Bureau of Civil Enforcement must compile and submit comprehensive civil enforcement business reports for the province to the National Office of Civil Enforcement, Ministry of Justice.

e) Analyzing accounting information and data on civil enforcement to assist heads of Civil Enforcement Agencies and superior management agencies in understanding the management of funds, assets, and evidence, as well as the activities of the agency.

g) The Bureau of Civil Enforcement is responsible for guiding and inspecting the implementation of financial and accounting systems for civil enforcement business in subordinate units.

2. Accounting tasks at the National Office of Civil Enforcement, Ministry of Justice

a) Guiding and inspecting the implementation of accounting for civil enforcement business in lower-level Civil Enforcement Agencies.

b) Compiling civil enforcement business reports from the Bureaus of Civil Enforcement to report to the Ministry of Justice leadership.

c) Analyzing accounting information and data on civil enforcement to assist the Ministry of Justice leadership in understanding the operations and results of civil enforcement revenue and expenditure throughout the system.

3. When changing Accountants, Chief Accountants, Unit Heads, or authorized persons for civil enforcement business accounting, the unit must organize handover procedures as prescribed. At the conclusion of the handover, a handover record must be prepared, which must include a complete description of the financial status of the civil enforcement business operations, including remaining cash balances in the treasury, deposits at banks and treasuries; amounts collected, paid, and still owed to judgment debtors according to each enforcement decision; amounts paid to the state budget, revenues and expenditures related to civil enforcement according to each enforcement decision. All pending accounting tasks and all relevant accounting documents related to civil enforcement revenues and expenditures for each enforcement decision must be handed over. The handover record must contain signatures of all relevant parties and be witnessed by the Unit Head.

Article 8. Responsibilities of Enforcement Officers

1. Must strictly implement all principles, systems, and procedures related to the activities of collecting, disbursing, receiving, and delivering money and assets for enforcement. Establish and provide complete and timely documents related to payment and handling of funds and assets during the enforcement process with the person subject to enforcement, the person responsible for enforcement, and other relevant parties according to this Circular and related legal documents. Bear responsibility for the accuracy, honesty, legality, and validity of provided vouchers and documents; data recorded on files and vouchers transferred to accountants for bookkeeping.

2. Timely deposit all collected funds and assets from each enforcement decision into the cash fund, warehouse of the agency, or deposit them into the State Treasury as prescribed; have the right to request accountants to disburse payments to those entitled to enforcement according to the law, promptly propose measures to handle remaining funds and assets according to the law with the head of the unit.

3. Regularly reconcile monthly, quarterly, and annually regarding income and expenditure in enforcement activities with accountants concerning the amount of money and assets received and expended, or stored in the fund or warehoused for each enforcement decision (if there are changes), ensuring consistency between the reported results of enforcement activities and accounting records. In case of discrepancies in figures among reports, find the cause and take measures to resolve such discrepancies according to the law. Bear responsibility for losses caused by unlawful acts committed by themselves.

4. Do not assign Enforcement Officers who have blood relations with the Chief Accountant in the same enforcement agency. The Civil Enforcement General Department will provide specific guidance on this matter.

Chapter II

SPECIFIC PROVISIONS

Article 9. Provisions on Accounting Vouchers

1. All economic transactions related to civil enforcement business activities must be recorded in accounting vouchers. All figures recorded in accounting books must be supported by valid and legal accounting vouchers. Accounting vouchers for civil enforcement business activities can only be established once for each economic and financial transaction, ensuring clarity, completeness, timeliness, and accurate information reflection.

2. Accounting vouchers must meet at least seven contents prescribed in Article 16 of the Accounting Law, suitable for accounting recording and management requirements of the unit. For special voucher models like checks and negotiable instruments, they must be kept and managed like cash.

3. Accounting voucher copies

a) Accounting vouchers stored in the civil enforcement business accounting department must be original copies, except for vouchers related to compulsory enforcement expenditures, expenditures for notary activities, and other activities guaranteed by the budget according to the law, which the unit's budget accountant retains the original copy. Based on the original voucher, the unit makes an additional copy for accounting purposes for civil enforcement business.

Additionally, if there is only one original copy of a voucher that needs to be stored in both the accounting business file and the enforcement officer's enforcement file, the civil enforcement business accountant retains the original copy, while the enforcement officer's enforcement file retains a copy.

b) Copy vouchers must be made from the original. On accounting voucher copies, there must be signatures and stamps of confirmation from the unit head or authorized representative. Copies of vouchers in cases specified in Point a Clause of this Article have the same value and are retained like original copies.

4. Civil enforcement business accountants may use electronic vouchers during enforcement activities according to the law on accounting.

5. List of accounting vouchers

The list, model, and explanation of methods for establishing accounting vouchers are stipulated in Appendix No. 01 "Accounting Vouchers" attached to this Circular.

6. Besides accounting vouchers prescribed in this Circular, the Ministry of Justice is responsible for specifying additional lists and forms of accounting vouchers applicable to civil enforcement agencies to reflect economic and financial transactions related to civil enforcement business accounting.

Article 10. Provisions on accounting accounts and the accounting account system

1. Accounting accounts are used to classify and systematize economic and financial transactions arising according to their economic content and chronological order. Accounting accounts reflect and continuously monitor systematically the income and expenditure, money inflow and outflow, assets, and evidence in enforcement activities, the results of monetary and asset-based enforcement activities at civil enforcement agencies at all levels.

2. Accounting accounts are opened for each individual accounting object with distinct economic content. The accounting account system includes all accounting accounts used in enforcement business accounting, uniformly defined regarding types of accounts, number of accounts, symbols, names, and recording contents of each account.

3. Classification of accounting accounts

The accounting account system applied for civil enforcement business accounting comprises accounts within the chart and accounts outside the chart:

a) Accounts within the chart reflect all economic and financial transactions arising according to accounting objects, recorded using double-entry bookkeeping method.

b) Accounts outside the chart reflect accounting objects already recorded on accounts within the chart but require additional detailed tracking to meet management requirements such as various foreign currencies. Additionally, accounts outside the chart also reflect assets and evidence collected by enforcement agencies but whose value has not been determined or have been sealed and recorded at an estimated value. Accounts outside the chart are recorded using single-entry bookkeeping (without corresponding journal entries between accounts).

4. Application of the accounting account system

a) Civil enforcement agencies at all levels must base on the accounting account system issued in this Circular to apply appropriate accounting accounts for their units.

b) Units may supplement accounting accounts in the following cases:

- Supplementing detailed accounts for accounts already specified in the list of the accounting account system at Appendix 02 attached to this Circular to serve unit management requirements.

- The Ministry of Finance approves in writing the supplementation of parallel-level accounts to those already specified in the list of the accounting account system at Appendix 02 attached to this Circular.

5. The list of the accounting account system, explanations of structure, content, and recording methods for some main economic activities of the unit are stipulated in Appendix 02 "Accounting Account System" attached to this Circular.

Article 11. Provisions on accounting books

1. Civil enforcement agencies must open accounting books to record, systematize, and retain all economic and financial transactions related to civil enforcement activities.

2. Types of accounting books for enforcement business

a) Each unit uses only one accounting book system for each accounting year period, including general ledger and detail ledgers. The unit must open all general ledgers and detail ledgers and fully implement the content, sequence, and recording methods for each type of accounting book.

b) General ledger:

- Journal used to record economic and financial transactions arising in chronological order.

- Ledger used to record economic and financial transactions arising according to their economic content (according to accounting accounts). Data on the Ledger generally reflects the situation of income and expenditure related to enforcement activities; the management situation of various types of enforcement assets, funds generated during the enforcement process.

c) Detail accounting books and cards:

Used to record in detail economic transactions arising related to accounting objects according to management requirements that the Ledger does not reflect in detail, aiming to provide detailed data on income and expenditure of enforcement assets and money according to each enforcement decision until the enforcement case is concluded.

Based on management requirements and recording requirements of each individual accounting object, the unit is permitted to supplement indicators (columns, rows) on detail accounting books and cards to serve the preparation of enforcement business reports and financial statements according to management requirements.

3. It is strictly prohibited to leave any income, expenditure, assets, funds, debts, or evidence related to civil enforcement activities outside the accounting books.

4. The preservation and storage of accounting books are carried out in accordance with the provisions of the accounting law, relevant documents, and the provisions of this Circular.

5. The list of accounting books, accounting book models, explanations of content and recording methods are implemented in accordance with the provisions at Appendix 03 "Accounting Book System" issued together with this Circular.

Article 12. Financial reports and business operation enforcement reports

1. Responsibility for preparation and submission of reports

All levels of civil enforcement agencies shall be responsible for preparing and submitting reports according to the prescribed schedule to their direct superior units and budgetary units.

The higher-level civil enforcement agency shall be responsible for consolidating data from business operation enforcement reports and preparing consolidated reports based on the data from subordinate units as stipulated.

Civil enforcement agencies at all levels must compile data to prepare financial reports for their units based on the financial reports prepared by budgetary units in accordance with the accounting system for administrative and public institutions issued under Circular No. 107/2017/TT-BTC and the financial reports of civil enforcement business operations prepared in accordance with this Circular.

The list of periodic reports and methods for consolidating financial report data are detailed in Appendix No. 04 of this Circular.

2. Purpose of reports

a) Business operation enforcement reports are used to provide information on the management of money, assets, and evidence; payment situations within and outside civil enforcement agencies; and other financial conditions, aiming to provide information to state authorities with jurisdiction.

b) Financial reports aim to provide financial information to management bodies, organizations, and individuals related to the activities of units concerning the assets and funds entrusted to civil enforcement agencies for management. They also serve as the basis for providing information to higher-level accounting units to consolidate annual financial reports as required, reflecting fully the assets and funds entrusted by the state for management.

3. Principles for preparing reports

a) Report preparation must be based on accounting data after closing the books. Reports must be prepared in accordance with established principles, content, and methods and presented consistently across accounting periods; if reports differ between periods, the reasons must be clearly explained.

b) Reports must bear the signatures of the preparer, the Chief Accountant, and the Head of the unit or authorized representative. The signatories must be responsible for the content of the reports in accordance with the law.

4. Requirements for reports

a) Reports must truthfully and objectively reflect the content and value of report indicators; they should present a structured and systematic view of the situation regarding money, assets, and evidence; internal and external payment situations of civil enforcement agencies; and other financial conditions of the unit.

b) Reports must be prepared promptly and submitted within the timeframes specified for each unit, clearly and accurately presenting information and accounting data.

c) Information and data in reports must be reflected continuously, with current period data following directly from previous period data.

5. Timeframe for preparing reports

a) For business operation enforcement reports: Units must prepare them quarterly and annually (by September 30 each year) or as required by competent authorities.

b) For financial reports:

- Units must prepare financial reports at the end of the accounting year (September 30) as required, submitting them to higher-level agencies along with business operation enforcement reports.

- Additionally, they must prepare financial reports by December 31 each year and submit them to budgetary units for consolidation of comprehensive financial reports of civil enforcement agencies at all levels to be submitted to direct superior units.

c) The list, format, recipient, submission deadline, explanation of content, and method of preparing reports are implemented in accordance with Appendix No. 04 "Reporting System" issued together with this Circular.

6. Form of submitting reports

Reports submitted to competent authorities may be in paper form or electronic form depending on actual conditions and the requirements of the receiving authority.

Chapter III

IMPLEMENTATION

Article 13. Effective Date

This Circular takes effect and applies from October 1, 2020, for the new accounting period for civil enforcement business accounting, replacing Circular No. 91/2010/TT-BTC dated June 17, 2010, of the Ministry of Finance guiding civil enforcement business accounting.

Article 14. Responsibilities of the Head of the Unit

1. Shall be responsible for organizing the implementation of accounting work related to enforcement activities in accordance with the laws on accounting and the provisions of this Circular.

2. Monitor and urge units to timely collect and remit enforcement proceeds into the state budget as prescribed by law.

3. The head of the superior civil enforcement agency shall be responsible for organizing training in enforcement accounting business for accounting staff under their unit and subordinate units.

Article 15. Responsibilities of the Planning and Finance Department, Ministry of Justice

1. Coordinate with the General Department of Civil Enforcement to organize the implementation of accounting work related to enforcement activities in accordance with the laws on accounting and the provisions of this Circular, and provide training for enforcement accounting staff.

2. Inspect the compliance with regulations on accounting work related to civil enforcement at all levels of enforcement agencies within their authority.

Article 16. Handling Violations

1. Any violation of the Accounting Law and the provisions of this Circular, depending on the nature, content, and degree of violation, will be subject to administrative penalties according to the regulations on handling administrative violations in the field of accounting.

2. If the violation causes serious consequences, criminal responsibility will be pursued according to the law, and compensation must be provided if damage occurs.

Article 17. Implementation Organization

1. The General Department of Civil Enforcement shall take the lead and coordinate with the Planning and Finance Department of the Ministry of Justice to guide local civil enforcement agencies in converting data from the accounting ledger system, as directed by the accounting guidelines issued together with Circular No. 91/2010/TT-BTC dated June 17, 2010 of the Ministry of Finance on civil enforcement accounting, to the accounting ledger system issued together with this Circular.

2. The Director of the Management and Supervision of Accounting and Auditing Bureau, the Director of the Office, and the Heads of relevant units under the Ministry of Finance; the Director of the Planning and Finance Department of the Ministry of Justice, the Director-General of the General Department of Civil Enforcement, and the Heads of relevant units under the Ministry of Justice shall be responsible for disseminating, guiding, inspecting, and implementing this Circular.