STATE AUDIT OFFICE OF VIETNAM
STRATEGIC PLAN
2013 - 2017
(Promulgated under the Decision No.1145/QD-KTNN
dated 09 October 2013 by the Auditor General)
Hanoi, October 2013
LIST OF ABBREVIATIONS
ASOSAI / Asian Organization of Supreme Audit InstitutionsHR / Human Resources
IDI / INTOSAI Development Initiative
INTOSAI / International Organization of Supreme Audit Institutions
ISSAIs / International Standards of Supreme Audit Institutions
IT / Information Technology
KPI / Key Performance Indicator
SAV / State Audit Office of Vietnam
SG / Strategic Goal
ST / Strategic Target
CONTENTS
1 / Preface ………………………………………………………………. / 22 / SAV Strategic Plan 2013 – 2017 Overview ………………………… / 3
3 / Introduction to SAV ………………………………………………… / 5
4 / Vision,Mission, and Core Values…………………………………… / 6
5 / Strategic Goals and Targets, Strategies, and KPIs………………….. / 7
6 / Requisition for Implementation……………………………………... / 36
7 / Implementation………………………………………………………... / 38
8 / Appendices
Appendix 01:SAV Organizational Structure…………………………. / 41
Appendix 2.1: Matrix ofStrategic Goal 1………………………. / 42
Appendix 2.2: Matrix ofStrategic Goal 2………………………. / 50
Appendix 2.3: Matrix ofStrategic Goal 3………………………. / 69
Appendix 2.4: Matrix ofStrategic Goal 4………………………. / 75
Appendix 2.5: Matrix ofStrategic Goal 5………………………. / 83
Appendix 2.6: Matrix ofStrategic Goal 6………………………. / 88
Appendix 2.7: Matrix ofStrategic Goal 7………………………. / 93
Appendix 2.8: Matrix ofStrategic Goal8………………………. / 98
PREFACE
In the recent development trend, the position and role of public financial inspection agencies on enhancing accountability of the Government for budget and financial management, corruption prevention, thrift practice and fighting against losses and wastes, public finance reform, international integration, transparency improvement and administrative reformhave been increasingly improved.
After more than 19 years of operation, as a professional agency specializing in the field of checking the State finance,being established by the National Assembly, performing independently and subject only to law. The SAV has gradually played its important role in the national development and integration process. The SAV’s audit results have been used broadly in management, administration, supervision, approval, giving decisions for those issues related tobudget, financial and improvement of policies and laws.
The SAV built its own Development Strategy to 2020 which was approved by the National Assembly Standing Committee in April 2010. In which the core values are defined as“Transparency,Quality,Efficiency, and Continuous Improvement”. The implementation of the Strategy will further enhance the efficiency, professionalism and effectiveness of the SAV’s performance in line with the development trend of supreme audit institutions in the world.
Overthe lastfew years, in accordance withthe Agreement on development and implementation of IDI-ASOSAI 2011-2013 Strategic Plan, the SAV built its own Strategic Plan 2013-2017 with an aim to selecting and implementing some primary and highly prioritized activities among those mentioned inthe Development Strategy to 2020.In order to successfully implement the StrategicPlan, all the leaders, officials and employees of the SAV shall need to clearly understand its importance,contents, and commit themselves to and join hands in implementing it. In addition, the SAVlooks to receivingactive supports and assistance from the Party, the National Assembly, the Government, ministries, local authorities and international donor community.
As the head of the SAV, I commit myselfto makingall efforts together with my staff and employeesin putting this the strategic plan into successfulimplementation.
Hanoi, October 2013Dr. Nguyen Huu Van
AUDITOR GENERAL
SAV STRATEGIC PLAN 2013-2017 OVERVIEW
In November 2011, the Leader of SAV signed a Cooperation Agreement on development and implementation of IDI-ASOSAI 2011-2013 strategic plan in Istanbul, Turkey. IDI-ASOSAI Programme on Development and Implementation of Strategic Plan’s objectives is to strengthen strategic planning capacities in 07 selectivesupreme audit institutions in the ASOSAI region, including Afghanistan, Bangladesh, Cambodia, Lao, Mongolia, the Philippines and Vietnam.
Under IDI-ASOSAI cooperation programmeframework, the development and implementation of 07 above-mentioned supreme audit institutions’ strategic plansshall beimplemented through learning by doing and started from needs assessment, strategic planning, development of action plan to supervision and evaluation.
The results of the needs assessment of SAV capacity under the guidance of IDI-ASOSAI showed some limitations and shortcomings in operations of SAV: Firstly, the legal framework on SAV’s organization and operation have not been adequately synchronized; the legal status of SAV has not been stipulated in the Constitution like most other countries around the world; and the Law on State Audit has not been compatible with Law on organization of the National Assembly, Law on organization of the Government and some other laws. Secondly, SAV’s organizational structure has been in the improvement process; there is inadequacy of auditorsin term of number and composition, and a limitation in their qualification and professional expertise; training works havenot coped up with requirements of duties; the training materials for officials and auditors has been incomplete; a permanent group of SAV lecturers are not genuinely formed. Thirdly, Audit standards and audit procedures are incomplete andthere is agapwithinternational practiceand inconsistence in application of those audit standards. Fourthly, there is a lack of experience in developing mid-term plan; and especially, the quantity and qualification of auditors involved in mid-term planning have not satify requirements for this assignment; both mid-term plan and annual plan have not been developed in line with materiality and risk-based audit approach; the database for audited entities serving for the development of mid-term audit plan, annual audit plan and plan of an audit engagement has not been set up. Fifthly, there are also shortcomings and limitations in quality control activitiesin terms of policies and practical application;control efficiency and effectiveness is not high; the audit quality control is mainly carried out by the audit teams and groups during their engagement without independent examination and evaluation. Sixthly, the performance audit type has been conducted in the recent years without detailed guidelines, therefore, the assessment and analysis of those issues related to economy, efficiency and effectiveness in the management and use of state budget, money and assets have not been conductedthoroughly. Seventhly, SAV has not worked out a completed, applicable and adequate system of regulations and guidelines for applying risk-based audits approach and materiality determination. In many audits, audit sample are wide-spreadwithout a focus; audit objectives and contents are in general and without priority set on major issues. Eighthly, SAV’s IT infrastructure is limited and incompatible, there are inadequate computers for officials and auditors and specialized software for auditorsand management; technology information staff is not qualified and experienced enough to perform works.
Due to above limitations, the audit quality has yetmet the high expectation of the National Assembly, Government and local authorities at all levels.It partly contributes to enhancingthrift practice, fighting against losses and wastes, preventinglegal violations, and to effectiveuseof public budget, money and assets.The effectiveness of auditsareyet guaranteedasthe implementation of audit conclusions and recommendations, especially those dealing with responsibilities of organizations and individuals for errors and mistakes has not been carried out in strict and timely manner.
To overcome the above limitations, SAV established a strategic planfor the development of SAV during the period 2013-2017, with an aim of defining the vision, mission, core values, objectives, targets, necessary activities and resources required to implement main contents of the Development Strategy to 2020.
The strategic plan for SAV’s development for the period 2013-2017 was builtin line with activities mentioned in Action Plan for implementing theDevelopment Strategy to 2020; specifying some priority activities for the period 2013-2017.
INTRODUCTION TO SAV
The State Audit Office of Vietnam (SAV) was established on 11th July 1994 under Decree No.70/CP by the Government and functioned in accordance with the Charter on its organization and operation which was promulgated together with the Decision No.61/TTg dated 24 January 1995 by the Prime Minister. It is an entirely new agency in Vietnam which does not have any predecessor.Rightafter its inception, the SAV carried out various tasks including making up its organizational structure, providing necessary physical infrastructure, recruiting and training staff members and auditors, and also developing proper professional procedures and standards so as to undertake audit assignments required by the Government and Prime Minister.
On 14 June 2005, the Law on State Audit was ratified by the 11th National Assembly of the Socialist Republic of Vietnam and took effect as from 1st January 2006. The Law has opened up a new chapter in the SAV’s development with a fresh role as a specialized agency that is established by the National Assemblyandworking in the field of state financial inspection. It shall perform its duties independently under the law; carry out financial audit, compliance audit and performance audit toward activities of all agencies and institutions which manage and use state budget, funds and assets. Under direction and guidance from the Party, National Assembly and Government of Vietnam, together with the efficient support and collaboration of ministries, Government agencies, localities, audited entities, the public and society, SAV has made tremendous efforts to grow up and accomplish its mandates and duties. This has enabled it to create trust and credibility toward its stakeholdersin the course of building up a transparent, sound and sustainablenational finance system, which will certainly provide efficient contributions to the national industrialization and modernization, and its international integration as well. Acting as an official member of the International Organization of Supreme Audit Institutions (INTOSAI) and the Asian Organization of Supreme Audit Institutions (ASOSAI) since July 1996 and January 1997 respectively, SAV has actively participated in the process of international integration, promoted extensive relations and signed cooperation documents with tens of prestigious supreme audit institutions (SAIs) and international organizations in continents.
The SAV’s development objectives to 2020 include"Strengthen the operational capacity, legal effectiveness, performance quality and efficiency of SAV as a useful tool of the State for verifying and supervising the management and use of state budget, money and assets; building a highly professional and gradually-modernized SAV which will become an accountable and trustworthy public financial audit agency so as to better meet requirements of the national industrialization and modernization in line with international practice and standards”. Under the philosophy “fairness, integrity, judgment and honesty”, SAV is now endeavoring its very best efforts to become a responsible and reputable public financial audit agency, contributing to promote prosperity and sustainable development of the Socialist Republic of Vietnam.
VISION, MISSION AND CORE VALUES
STRATEGIC GOALS AND TARGETS,
STRATEGIES AND KEYPERFORMANCE INDICATORS
STRATEGIC GOAL 1
Improve legal status and operationaleffectiveness
The legal framework for SAV’s organization and operation is not adequate and synchronised,its legal status has not been stipulated in the Constitution compared to that of most countries around the world and Law on State Audit is not compatibile withLaw on organization of the National Assembly, Law on organization of the Government and some other laws. As a result, the legal status and performance of SAV should be further improved.
No. / Strategic Targets / Strategies/Projects / Key Performance Indicators1 / To supplementprovision on the legal status of SAV in the Constitution of Vietnam / 1.1. Supplement contents regarding the legal status of SAV and Auditor General to the Draft Amendments to 1992 Constitution / -Stipulating regulations on the legal status, independence, and functions of SAV; procedures and authoritiesover the appointment and dismissal of Auditor Generalin the Draft Amendments to 1992 Constitution.
- The draft is submitted to the National Assembly and the Committee for drafting amendments to the 1992 Constitution in 2012.
- The National Assembly approveConstitution in 2013.
1.2. Disseminate and propagate the contents of legal status of SAV and Auditor General in the Constitution (amendedversion) / - Timely disseminatingjust after the Constitution (amended) is approved by the National Assembly
- 100% SAV’s civil servants, officials and employees understandprovisionsrelated toSAV in the Constitution.
2 / To make amendments and supplements to the Law on State Audit / 2.1. Prepare a project on drafting Law on State Audit (amended version) / - The contents of Law on State Audit (amended) shall be compatible with the provisions related toSAV in the Constitution to ensure the synchronous, alignment, feasibility and suitability for the performance of SAV.
- Ensuring proper working order, procedures and progressand quality of tasks.
- Opinions shall be given by the National Assembly (in May 2014), submit for approval by the National Assembly (November 2014).
2.2. Disseminate and propagate, and implement the amended Law on State Audit / - Timely disseminationthe Law on State Audit (amended version) to all civil servants and public employees of SAV after it is approved.
+ Inside the SAV: Organizing 19 classes (in which: 06 classes at supporting departments, specialized audit units and service delivery units; 13 classes at regional audit offices).
+ Outside the SAV: Conducting dissemination through mass media, and audit activities (in such sessions as introduction meeting, wrap-up meetingand MOU signing ceremony,...).
- 100% of civil servants and public employees shall strictly follow up all provisions in the Law on State Audit (amended).
3 / To build and improvedocuments guiding the implementation of the Law on State Audit (amended) / 3.1. Build the Resolution of the Standing Committee of the National Assembly on organizational structure of SAV; specific duties, powers and standards for grades of state auditors; and salary distribution regime according to the Law on State Audit (amended)
(Refer to the strategic goal 2, session 3.1) / (Refer to the strategic goal 2, session 3.1)
3.2. Improve the Audit standards of SAV
(Refer to the strategic goal 3) / - Building standards in accordance with the Law on State Audit (amended); building sufficient state audit standards for each typeof audit
- Ensuring the proper working orders and procedures for building legal documents
- In accordance with the guidance of ISSAIs.
3.3. Build and improvethe audit procedures of SAV (or audit manuals, procedures, and techniques) / - Modifying audit procedures(or audit manuals, procedures and techniques) to ensure the compatiblity with the Law on State Audit (amended); overcoming limitations and shortcomings in audit activities of SAV
- Ensuring proper working orders, procedures,progress and quality of tasks
- Being promulgated by the Auditor General in 2015 (immediately after the amended Law on State Audit is approved).
3.4. Modify the rules and regulations of SAV:
(1) Regulations on organization and operation of an audit team of SAV.
(2) Regulations on procedure for preparation, evaluation, approval and issuance of a SAV’s audit report.
(3) Regulations on procedure for preparation, evaluation and approval of auditplan of anaudit (Refer to strategic goal 4).
(4) Regulations on establishing criteria for the arrangement of auditors, time and funds for the audit with an aim at intensifying thrift practice and fighting against losses and waste.
(5) Regulation on Inspection of SAV. / - Modifying the rules and regulations to ensure compatiblity with the Law on State Audit (amended), and synchronization with relevant regulations; overcoming limitations and shortcomings in audit activities of SAV
- Ensuring proper working order, procedures, progress and quality of tasks.
4 / To propose the amendments and supplements of the Laws relating to the State Audit / 4.1. Propose the amendments and supplements of the relevant provisions under Law on Organization of the National Assembly and Law on Organization of the Government / - Proposing the provisions is to be amended in relevant laws to ensure compatiblity and synchronizationbetween Law on State Audit and Law on the National Assembly, Law on the Government, and Law on State Budget,....
- Ensuring the timelinessand quality of tasks.
4.2. Propose the amendments and supplements of related provisions inLaw on State Budget, Law on thrift practice and fighting against losses and waste, and otherrelevant laws
- Timeline to send a written proposal for each law to the leading agency for document drafting shall depend on the progressof relevant law amendment project in National AssemblyLaw amendment Program.
STRATEGIC GOAL 2
Developorganization system and Improvepersonnel capacity in terms of quantity, structure, quality and professionalism
The State Audit Office of Vietnam (SAV) is embarking on the course of further development and enhancement of its own organisational and personnel system. However, its organisational apparatus is not fully synchronised; the State Auditors are inadequate in terms of number, composition,expertise and professionalism in auditing; the training curriculum are not in line with the requirements of audit work; documents used for the training activities are still inadequate for use;a permanent group ofSAV lecturers are not genuinely formed. Therefore, one of SAV’s objectives in the period of 2013-2017 is to enhance organisational apparatus and auditors’ capacity in terms of their quantity, quality, composition and professionalism.
No. / Strategic Targets / Strategies/Projects / Key Performance Indicators1 / To enhance and develop the organizational apparatus toward systematization / 1.1. Establish the Specialized Audit Department No. VIII (specialize in performance audit) / - The Project includes completely legal, scientific, practical basis, feasibility; ensuring progress, quality, and approval by competent agencies.