Some new regulation on approval, examiation, announcement and synthesis of the annual budget settlement reports

From 10/02/2018, Circular No. 137/2017/TT-BTC provides inspection, appraisal, notification and consolidation of annual budget statements for 2017 and replaces Circular No. 01/2007/TT-BTC dated 02/01/2007 of Ministry of Finance providing guidance on inspection, appraisal, notification and consolidation of annual budget statements for public services organizations, organizations funded by State budget.

New highlights specified under Circular No. 137 as follows:

Regarding scope, abolishing regulations on inspection, appraisal of proceeds from business activities, services of organizations, units (Circular No. 1 specified regulations on inspection, appraisal of proceeds retained for spending); Annual budget statements of off-budget financial funds shall be inspected, appraised and notified in compliance with this Circular and other relevant documents.

Regarding regulated entities, Socio-political-occupational organizations, social organizations, socio-professional organizations and other organizations funded by state budget (including domestic budget, foreign non-refundable aids and foreign loans), funds of which a given amount is deducted or withheld and revenues from other activities that may be withheld.

Regarding forms of statements must be made according to current public sector accounting. In addition, in accordance with Resolution No. 343/2017/UBTVQH14 of National Assembly Standing Committee, Circular No. 137 regulates 02 forms: Statements of off-budget financial funds and Consolidated statements of revenues from service provision of public service providers (excluding State budget).

For the implementation of the inspection and appraisal of budget statements, the Circular No. 137 also regulates provisions on: revenues and expenditures of the budgetary unit; sufficiency and consistency of the data provided in the budget statement; increases and decreases in the statement compared to the estimate given by the competent authority.

The inspecting authority shall check the data on revenues from business operation and service provision and compare it to the data provided in the year-end financial statement; the appraisal authority shall consolidate budget statements according to the reports on revenues from service provision.

In addition, in order to overcome some difficulties in inspection and appraisal regarding inspected, appraised unit does not sign the record to issue Notification, some units have made the minutes of approval but have not issued Notification or have not yet approved but synthesized the finalization report and to ensure that there is a basis for appraising the finalization and increasing the responsibility of multi-level budgetary units, Level I budgetary units for approving the finalizations of the affiliated units, the Circular No. 137 regulates the following provisions: If the appraised unit does not sign the minutes of approval of the annual settlement, the inspecting authority shall base on the appraisal results in order to issue Notification on annual statements and send to the approved unit and related units; In cases where the units have not yet fully supplemented the required Notifications according to schedule, the authority shall refuse to conduct the evaluation of units which have not yet been notified by the competent authorities.

The Circular No. 137 takes effect from 10 February 2018 and applied for State budget settlement from 2017./.