Chương II Thông tư 52/2022/TT-BTC: Một số nội dung về quản lý tài chính của quỹ hợp tác xã

Chapter II

FINANCIAL MANAGEMENT

Article 3. Management and use of assets

1. For a cooperative fund that operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State:

a) The limits on investment in construction and acquisition of fixed assets directly serving operations of the fund shall comply with the provisions of Point a Clause 3 Article 38 of the Decree No. 45/2021/ND-CP;

b) Authority, procedures and other contents concerning investment in construction, acquisition, management, use, depreciation, leasing, mortgaging, pawning, liquidation, transfer, inventory and revaluation of the fund’s fixed assets shall comply with regulations of the single-member limited liability company of which 100% of charter capital  is held by the State, the charter on organization and operation, and regulations on management and use of fixed assets of the fund.

2. For a cooperative fund that operates under the cooperative business model:

Limits on investment in construction and acquisition, authority, procedures and other contents concerning investment in construction, acquisition, management, use, depreciation, leasing, mortgaging, pawning, liquidation, transfer, inventory and revaluation of the fund’s fixed assets shall comply with regulations of law applicable to cooperatives, the charter on organization and operation, and regulations on management and use of fixed assets of the fund.

Article 4. Dealing with asset losses

The cooperative fund shall determine the level, reasons and responsibilities for asset losses and take actions against such losses as follows:

1. Objective reasons, force majeure events (such as natural disasters, epidemics, fire, accidents or political risk) and subjective reasons of the loss shall be determined.

2. If the asset loss is caused by a subjective reason, the individual or group causing such loss shall make compensation for damage and/or incur penalties in accordance with regulations of law. The cooperative fund shall stipulate the compensation, decide the compensation amount which must be conformable with regulations of law, and assume responsibility for its decision.

3. In case the asset insurance has been purchased in accordance with regulations of law, the asset loss shall be settled according to the insurance policy.

4. The financial reserve fund of the cooperative fund shall be used for offsetting the value of asset loss that remains after being offset using compensation amounts of the individual or group at fault, the insurer and/or provisions included in the fund’s expenses. In case the balance on the financial reserve fund is not sufficient to offset the asset loss, the remaining value of asset loss shall be recorded as the fund’s expenses in the period.

Article 5. Revenue recognition principle

1. All revenues of the cooperative fund must be recognized and recorded for the purposes of preparation and presentation of financial statements in accordance with Vietnam’s accounting standards and relevant law provisions, and must be supported by lawful invoices or receipts.

2. With regard to loan interests, the cooperative fund shall evaluate the debt recoverability and classify debts in accordance with Article 28 of the Decree No. 45/2021/ND-CP as the basis for recording of interests receivable as follows:

a) The fund shall record the interests receivable in the period as its revenues in respect of debts classified as standard debts for which the loan loss provision is not required according to SBV’s regulations applicable to microfinance institutions;

b) The interests receivable of debts remaining classified in the standard debt group as a result of implementation of the State policies and the interests receivable in the period of remaining debts shall not be recorded as the fund’s revenues but shall be monitored in off-balance sheet to expedite the debt collection. Such debts shall be recorded as the fund’s revenues, when collected.

3. Deposit interest revenue is the amount of deposit interests receivable during the period.

4. Amounts receivable which have been recorded as income but then are considered unrecoverable or not collected on due dates shall be recorded as the fund’s expenses and monitored in off-balance sheet to expedite the debt collection. Such amounts shall be recorded as the fund’s revenues, when collected.

5. Revenue from other activities shall be recorded in accordance with regulations of laws on taxation and relevant laws.

6. Determination of the fund’s revenues for the tax calculation purpose shall comply with regulations of law on taxation.

Article 6. Revenues

The fund’s revenues are amounts receivable in the period, including:

1. Operating revenues:

a) Loan interests;

b) Fees collected under trusteeship agreements;

c) Revenues from investment and consulting services concerning the fund’s operations; revenues from assistance and training services rendered to the fund’s borrowers in accordance with regulations of law;

d) Other operating revenues as prescribed by law.

2. Revenues from financial activities: 

a) Deposit interests;

b) Earnings from exchange rate differences (if any);

c) Revenues from other financial activities.

3. Other revenues:

a) Earnings from liquidation, transfer or selling of assets;

b) Revenue from leasing of assets;

c) Difference between the compensation for asset loss received from the issuer and actual compensation for asset loss;

d) Recovered amounts of debts which have been charged off;

dd) Revenue from reversal of provisions;

e) Other lawful revenues as prescribed by law.

Article 7. Expense recognition and management principle

1. Expenses recorded as operating expenses of the cooperative fund shall comply with the matching principle between revenues and expenses, and must be supported by adequate lawful invoices and receipts as prescribed by law. All expenses of the cooperative fund must be recognized and recorded for the purposes of preparation and presentation of financial statements in accordance with Vietnam’s accounting standards and relevant law provisions.

2. Expense management principle:

a) For a cooperative fund that operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State: The cooperative fund shall formulate its regulations on internal expenses which must contain appropriate spending limits for each period and be conformable with regulations of law, and submit such regulations to the fund’s chairperson for promulgation;

b) For a cooperative fund that operates under the cooperative business model: Chairperson of the Board of Directors shall promulgate its regulations on internal expenses after they have been approved and ratified by the fund’s general meeting of members;

c) With regard to expenses paid inconsistently with regulations, expenses which are not yet recorded, and those exceeding the spending limits specified in the fund’s regulations on internal expenses, the fund shall determine responsibilities of relevant organizations and individuals for requesting competent authorities to decide compensation plans.

3. Determination of the fund’s expenses for the tax calculation purpose shall comply with regulations of law on taxation.

Article 8. Expenses

The fund’s expenses are those actually incurred in the period related to its business operations, including:

1. Operating expenses:

a) Loan interests;

b) Costs associated with lending and debt collection activities;

c) Costs associated with offer and acceptance of trusteeship;

d) Contributions to the loan loss provision as prescribed in Article 28 of the Decree No. 45/2021/ND-CP;

dd) Payments for insurance for operational risks and other types of insurance as prescribed;

e) Other operating expenses.

2. Financial expenses:

a) Expenses on exchange rate differences (if any);

b) Other financial expenses.

3. Administrative expenses:

a) Asset-related costs, including: Depreciation of fixed assets; fixed asset leasing costs; costs for repair, maintenance and operation of assets; costs for purchase of tools and devices; costs of purchase of asset insurance and vehicle inspection as prescribed; costs for liquidation, transfer or selling of assets, excluding residual value of fixed assets (if any);

b) Expenses on managers and employees:

- For a cooperative fund that operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State: Payments of salaries and wages; salary-based contributions, including social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance contributions, and trade union contributions; shift meal costs; costs of workplace uniforms; compulsory payments for female employees, overtime pay, periodic health checks and other payments for employees made according to regulations of law applicable to single-member limited liability companies of which 100% charter capital is held by the State.

- For a cooperative fund that operates under the cooperative business model: Expenses on managers and employees shall comply with regulations of the Law on cooperatives, the fund's charter on organization and operation, and the fund’s regulations on payment of salaries and wages to managers and employees approved by the fund’s general meeting of members;

c) Management and administration expenses:  Electricity and water expenses, telephone, internet and postal service charges, costs of printing materials and papers, stationery; costs of business trips and consulting about the fund’s operations, payment and auditing service charges; costs of hiring of domestic and foreign experts/specialists; remunerations paid to part-time employees, expenses on scientific research and technology innovation; costs of professional training activities; expenses on grant of rewards for initiatives in improving and increasing labor productivity, costs of environmental protection and workplace security tasks; medical expenses, fuel expenses, expenses on fire prevention and fighting tasks, costs of vehicles, costs of information dissemination, advertisement, marketing and sales promotions; expenses on organization of conventions and reception activities as prescribed by law;

d) Allowances paid to dual office holders (if any);

dd) Other administrative expenses as prescribed by law.

4. Expenses prescribed in Point i Clause 2 Article 42 of the Decree No. 45/2021/ND-CP.

5. Expenses on establishment of provision for devaluation of inventories, provision for bad receivable debts, provision for asset loss and financial investments, and other provisions made according to regulations of law applicable to single-member limited liability companies of which 100% charter capital is held by the State (if the cooperative fund operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State) or regulations of the law applicable to cooperatives (if the cooperative fund operates under the cooperative business model).

6. Other expenses:

a) Costs for transfer, sale and liquidation of assets (if any), including the residual value of fixed assets transferred, sold or liquidated;

b) Compensations for asset losses made after they have been offset by other funding sources as prescribed;

c) Amounts which have been recorded as revenues but actually unearned;

d) Payment of breach of economic contract penalties;

dd) Court fees, judgment enforcement charges and other costs of proceedings as prescribed by law;

e) Expenses on social activities as prescribed by the Law on taxation;

g) Membership fees paid to domestic and foreign trade associations of which the fund is a member as prescribed by law (if any);

h) Expenses on activities of communist party and trade union;

i) Other expenses as prescribed by law.

7. Limits on expenses specified in Clauses 1, 2, 3 and 4 of this Article are prescribed as follows:

a) For a cooperative fund that operates under the business model of a single-member limited liability company of which 100% of charter capital is held by the State: The fund shall comply with regulations of law applicable to single-member limited liability companies of which 100% charter capital is held by the State. In case regulations on these expenses are not available or do not provide specific spending limits, depending on its financial capacity, the cooperative fund shall decide and include spending limits in its regulations on internal expenses in an appropriate and efficient manner, and shall take legal responsibility for its decision;

b) For a cooperative fund that operates under the cooperative business model: The fund shall comply with regulations of the Law on cooperatives and its guiding documents. In case regulations on these expenses are not available or do not provide specific spending limits, depending on its financial capacity, the cooperative fund shall decide and include spending limits in its regulations on internal expenses in an appropriate and efficient manner, and shall take legal responsibility for its decision.

Article 9. Expenses which cannot be recorded as a fund’s expenses

1. Damage which has been financially supported by the State or compensated by the insurer or the party at fault.

2. Fines which must be incurred by violating individuals for administrative violations, on environmental offences, overdue fines due to subjective reasons, or fines for violations against financial policies.

3. Expenses which are not supported by lawful and valid invoices or receipts as prescribed by law.

4. Expenses covered by other sources of funding.

5. Individuals’ contributions to local governments, social organizations or other authorities.

6. Expenses in excess of the spending limits prescribed in this Circular and relevant legislative documents.

Article 10. Approval for financial statements

The cooperative fund shall annually submit financial statements to the cooperative alliance of the same level (if the cooperative fund operates under the business model of a single-member limited liability company of which 100% of charter capital  is held by the State) or the general meeting of members (if the cooperative fund operates under the cooperative business model), and distribute financial results after the annual financial statements have been audited by an independent audit organization in accordance with regulations of law on auditing and given appraisal results of controllers.

Article 11. Reporting and financial disclosure

1. Cooperative funds shall comply with the provisions on reporting set forth in Article 44 of the Decree No. 45/2021/ND-CP.

2. Data closing duration:

a) A report for the first 06 months shall include data collected from January 01 to June 30 inclusively of the reporting year;

b) An annual report shall include data collected from January 01 to December 31 inclusively of the reporting year.

3. Report forms:

a) Financial statements specified in Point a Clause 3 Article 44 of the Decree No. 45/2021/ND-CP shall be prepared according to the fund’s accounting policies;

b) Reports on the fund’s lending activities specified in Point c Clause 3 Article 44 of the Decree No. 45/2021/ND-CP:

- Provincial cooperative funds shall prepare these reports using the form in Appendix 1a enclosed herewith and submit them to the central cooperative fund for consolidation;

- The central cooperative fund shall prepare a consolidated report using the form in Appendix 1b enclosed herewith and submit it to competent authorities;

c) Consolidated reports on the fund's operations specified in Point b Clause 3 Article 44 of the Decree No. 45/2021/ND-CP:

- Provincial cooperative funds shall prepare these reports using the form in Appendix 2a enclosed herewith and submit them to the central cooperative fund for consolidation;

- The central cooperative fund shall prepare a consolidated report using the form in Appendix 2b enclosed herewith and submit it to competent authorities;

d) The deadlines for submission of reports shall comply with the provisions of Clause 4 Article 44 of the Decree No. 45/2021/ND-CP.

4. Financial disclosure:

a) Cooperative funds operating under the business model of a single-member limited liability company of which 100% of charter capital is held by the State shall make financial disclosure in accordance with regulations of law applicable to enterprises of which 100% of charter capital is held by the State;

b) Cooperative funds operating under the cooperative business model shall make financial disclosure in accordance with regulations of law applicable to cooperatives.

Article 12. Preparing annual financial plans

1. For a cooperative fund that operates under the business model of a single-member limited liability company of which 100% of charter capital is held by the State:

a) Formulation of the annual financial plan: the cooperative fund shall formulate its annual financial plan, including the annual financial plan, the plan on revenues and expenses, the plan for investment in fundamental construction and asset acquisition, and the plan for mobilization and use of capital using the forms in Appendix 3, Appendix 4, Appendix 5 and Appendix 6 respectively, and submit it to the cooperative alliance of the same level;

b) Deadline for approving the financial plan: Before April 30 of the planning year:

- Vietnam Cooperative Alliance shall consider giving approval for the annual financial plan of the central cooperative fund;

- Provincial cooperative alliances shall consider giving approval for the annual financial plans of provincial cooperative funds after obtaining approval from provincial People's Committees, and provide provincial People's Committees and finance authorities of the same level with the approved plans for management and supervision purposes.

2. For a cooperative fund that operates under the cooperative business model:

a) Formulation of the annual financial plan: the cooperative fund shall formulate its annual financial plan, including the forms in Appendix 3, Appendix 4, Appendix 5 and Appendix 6 enclosed herewith, and submit it to the general meeting of members for approval;  

b) Deadline for approving the financial plan: Before April 30 of the planning year, the general meeting of members shall consider giving approval for the fund’s annual financial plan for implementation.