Accounting treatment for the 'Fund for the Poor' at commune-level Vietnam Fatherland Front committees
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The Ministry of Finance provides guidance on accounting for the 'Fund for the Poor' (Quy vi nguoi ngheo) at commune-level Vietnam Fatherland Front (MTTQ) committees under Circular No. 41/2022/TT-BTC. Two approaches apply depending on whether the unit maintains a separate accounting system for the fund. If the unit maintains a separate accounting system: use the account structure under Circular 41/2022, specifically Account 337 (earmarked contributions) and Account 511 (non-earmarked pooled contributions); do not use accounts under Circular No. 24/2024/TT-BTC. If no separate accounting is maintained: record fund activities within the entity's main books under Circular 24/2024, using Accounts 338, 512, or 711 as appropriate, and open separate sub-ledgers for the fund. In both cases, periodic income/expenditure reports must be prepared and financial information publicly disclosed in accordance with regulations.
Accounting for the 'Fund for the Poor' at Commune-Level MTTQ Committees
Source: Response to inquiry code 230226-16, Department of Accounting and Auditing Management, Ministry of Finance Governing circular: Circular No. 41/2022/TT-BTC dated 5 July 2022
Case 1: Unit maintains a separate accounting system for social/charitable activities
Apply Section 1, Chapter II of Circular 41/2022/TT-BTC in full (vouchers, accounts, ledgers, financial statements). Do not use accounts under Circular 24/2024/TT-BTC.
Recording donations received:
- Earmarked contributions (designated for a specific household/address; unit acts as collection-and-disbursement agent): use Account 337 – Collections and disbursements on behalf of others
- Example: Dr. Account 111 (cash) / Cr. Account 337
- Non-earmarked contributions (pooled into the fund for the MTTQ committee to select beneficiaries): use Account 511 – Revenue from donors
- Example: Dr. Account 111 / Cr. Account 511
Case 2: Unit does not maintain a separate accounting system
Record fund activities within the entity's main accounting books under Circular 24/2024/TT-BTC, using:
- Account 338 – Other payables
- Account 512 – Revenue from foreign donors
- Account 711 – Other income (depending on the nature of each transaction)
Mandatory requirements:
- Open separate sub-ledgers to track fund activities
- Prepare periodic income/expenditure reports and publicly disclose information per Section 2, Chapter II of Circular 41/2022
- Present fund activities separately in the entity's financial statement notes