Circular No. 7919/BTC-NSNN on the accounting of revenue and expenditure for national programs, targets, and projects

LETTER

OF THE MINISTRY OF FINANCE NO. 7919/BTC-NSNN ON JUNE 27, 2006
REGARDING THE ACCOUNTING OF REVENUE AND EXPENSES FOR NATIONAL PROGRAMS, TARGETS, AND PROJECTS
- Ministries, ministerial-level agencies, government agencies, and other central agencies;

Respectfully submitted to:

- State Treasury Departments of provinces and centrally-administered cities;

- Department of Finance of provinces and centrally-administered cities.

- Department of Finance of provinces and centrally governed cities.

In recent times, the Ministry of Finance has received feedback from some agencies and units requesting further guidance on the accounting of expenses for national programs, targets, and projects in 2006 that occurred before Decision No. 25/2006/QĐ-BTC took effect, and on adjusting the allocation of the budget estimate for national programs, targets, and projects in 2006 assigned to units according to types and items in the State Budget Classification. Regarding this issue, the Ministry of Finance provides the following opinions:

1. On the accounting of state budget expenditures for national programs, targets, and projects in 2006 that occurred prior to the effective date of Decision No. 25/2006/QĐ-BTC:

On April 11, 2006, the Ministry of Finance issued Decision No. 25/2006/QĐ-BTC on issuing the code number list of national programs, targets, and projects; Article 4 stipulates: "This Decision shall take effect 15 days after its publication in the Official Gazette. Revenue and expenditure of the state budget in 2006 occurring before the effective date of this Decision shall be carried out according to the current regulations on accounting."

According to the current regulations on accounting at Clause 2, Article 7 of the Accounting Law (enacted by the National Assembly in 2003), it is provided: "The accounting provisions and methods chosen must be consistently applied throughout the fiscal year." Therefore, all state budget expenditures for national programs, targets, and projects in 2006 shall be accounted for according to the provisions of Decision No. 25/2006/QĐ-BTC dated April 11, 2006 of the Ministry of Finance. For state budget expenditures for national programs, targets, and projects in 2006 that occurred before the effective date of Decision No. 25/2006/QĐ-BTC, the budget using unit shall submit a document detailing the figures requiring adjustment in accounting according to each type and item in the State Budget Classification to the State Treasury Department where transactions are conducted as the basis for adjustment.

2. On adjusting the 2006 budget estimate for national programs, targets, and projects assigned to units:

Decision No. 25/2006/QĐ-BTC dated April 11, 2006 of the Ministry of Finance only relates to the accounting of state budget expenditures for national programs, targets, and projects according to new types and items; therefore, it does not affect the assigned tasks of state budget expenditures for national programs, targets, and projects; thus, there will be no reallocation according to new types and items. When withdrawing funds to implement national programs, targets, and projects, based on the guidance on accounting types and items according to Decision No. 25/2006/QĐ-BTC, the unit shall process the withdrawal of the budget estimate, and the State Treasury Department shall control expenditures according to the prescribed regulations.

We request ministries, ministerial-level agencies, government agencies, other central agencies, State Treasury Departments, and Departments of Finance to guide subordinate units under their management to implement according to the provisions of the above-mentioned documents. During the implementation process, if there are difficulties or feedback, please report promptly to the Ministry of Finance for guidance.