Are bid documents required to submit audited financial reports?

Friday, 22 September 2023 10:18 AM
Some contractors wonder whether they are required to submit audited financial statements in their bid documents when their business does not invite financial statement audits, especially for medium and large-sized companies. small. Let's find out and answer this problem with DauThau.INFO.
Are bid documents required to submit audited financial reports
Are bid documents required to submit audited financial reports

Nhấn VÀO ĐÂY để chuyển bài viết sang bản tin tiếng Việt

Audited financial statements are not required to be submitted with the Bid

 As we know, the characteristics of businesses in Vietnam are small and medium enterprises (including micro enterprises) accounting for 98.1% (General Statistics Office data released in 2017), so the Businesses are always looking for ways to reduce unnecessary/unnecessary costs as much as possible. Most small and micro businesses have simple accounting systems, take on many tasks and perform accounting operations as well. It's not complicated, so there's no need to hire an independent auditor to audit the annual financial statements. This group of businesses in recent years has begun to learn about and participate in bidding packages on the national bidding system. Many officials assigned to prepare bidding documents wonder whether they must submit audited financial reports. accounting or not because when starting to access the records, this is almost understood as mandatory. However, in reality, if we read the regulations carefully, this is not the case, meaning that financial statements are not required to be audited when submitted with bids. However, it must be noted that if there is no audited financial report, there must be other equivalent documents submitted with the financial report.

Specific regulations on submitting financial reports

In the bidding document templates, to prove financial capacity in the financial capacity assessment standards, it is often required to "Submit financial reports from year X to year Y to provide information to prove the financial situation". "Contractor's health policy" documents need to be submitted according to Form No. 09 Circular 05/2015/TT-BKHDT (Procurement packages for goods) or Form No. 14 Circular 03/2015/TT-BKHDT (Tender packages construction) or Form No. 05 Circular 01/2015/TT-BKHDT (Consulting Package), then the attached documents require:

Attached are copies of the financial statements (balance sheets including all related disclosures, and income statements) for the most recent X years, as indicated above, in compliance with the following conditions:
1. Reflects the financial situation of the contractor or joint venture member (if a joint venture contractor) and not the financial situation of an affiliated entity such as a parent company or a subsidiary or affiliated company with contractors or joint venture members.
2. Financial reports are audited according to regulations.
3. Financial reports must be complete and have full content according to regulations.
4. Financial reports must correspond to completed and audited accounting periods. Attached is a certified copy of one of the following documents:

- Minutes of tax finalization inspection;
- Self-finalized tax declaration (value added tax and corporate income tax) with confirmation from the tax authority about the time the declaration was submitted;
- Documents proving that the contractor has declared electronic tax finalization;
- Written confirmation from the tax administration agency (confirming the annual payment) on the fulfillment of tax payment obligations;
- Audit report;

Form No. 09 - Circular 05/2015/TT-BKHDT

Or:

Attached are copies of financial statements (balance sheets including all relevant disclosures, income statements) for the last three (3) years and comply with the following conditions :
1. Reflects the financial situation of the contractor or joint venture member (if a joint venture contractor) and not the financial situation of an affiliated entity such as a parent company or a subsidiary or affiliated company with contractors or joint venture members.
2. Financial reports must be complete and have full content according to regulations.
3. Financial reports must correspond to completed accounting periods, accompanied by a certified copy of one of the following documents:

- Minutes of tax finalization inspection;
- Self-finalized tax declaration (value added tax and corporate income tax) with confirmation from the tax authority about the time the declaration was submitted;
- Documents proving that the contractor has declared electronic tax finalization;
- Written confirmation from the tax administration agency (confirming the annual payment) on the fulfillment of tax payment obligations;
- Audit report (if any);

Form No. 14 - Circular 03/2015/TT-BKHDT

If we read carefully, we can see that when submitting the financial report, we only need to submit a certified copy of "ONE" of the documents listed below, then the contractor can absolutely only submit: Minutes of final settlement inspection tax; or self-finalized tax declaration (value added tax and corporate income tax) with confirmation from the tax authority about the time the declaration was submitted; or Documents proving that the contractor has declared electronic tax finalization (Electronic tax finalization declaration); or Written confirmation from the tax administration agency (confirming the annual payment) on the fulfillment of tax payment obligations; or if there is an Audit Report.
 
The above are regulations applicable to contractors participating in bidding packages on the government's bidding system. However, there are some exceptional businesses that are required to have audited financial statements such as foreign businesses, credit institutions..., readers can learn about these businesses that are required to have audited financial statements. There must be an audit in Decree No. 17/2012/ND-CP

Pay attention to financial statements when preparing bids

Through studying the above regulations, to facilitate contractors participating in a bidding process as quickly as possible, we offer some suggestions for readers and contractors to refer to as follows:
  1. The most common way and applied by businesses is to make an official dispatch every year and request the tax authority directly managing the enterprise to confirm the annual payment on the fulfillment of tax payment obligations, after obtaining the document. that confirmation copy for the previous fiscal year, the bidding officer should notarize a certain number of copies to use for that entire year.
  2. Currently, businesses have implemented and declared electronic tax finalization. When businesses submit tax declarations via the internet, if successful, the business will immediately receive a notification (automatically) from system for receiving online declarations of the General Department of Taxation or organizations providing electronic tax services to confirm that businesses have submitted tax declarations online, the Notice clearly states: time (date, time,... ) The tax authority receives the business's tax declaration dossier and the name of the declaration type. The notification of confirmation of tax declaration submission is automatically sent to the email of the business registered with the tax authority. We just need to access the email and print the document and submit it with the financial report.
The above two ways are the simplest and fastest ways, in addition, the remaining ways (according to the bulleted list above) are completely valid if we do it conveniently. In addition, in recent years, private auditing companies have developed very strongly and are competitive in price, so if there is a need, you can absolutely choose an independent auditing unit with reasonable costs. , if we have the conditions, we should still carry out an annual financial audit, both for the purpose of serving the bidding work and as a review of the problems of our company's own accounting system.
 
Above is DauThau.INFO's analytical article about the unnecessary need to audit financial statements to submit with bid documents for readers' reference. Sincerely thank you readers for following. If necessary, please contact:
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