THE STATE AUDIT OFFICE OF VIETNAM
STRATEGIC PLAN
2013 - 2017
Hanoi, November 2012
CONTENTS
1 / Forward2 / Executive Summary on the SAV’s Strategic Plan 2013 - 2017
3 / Introduction to the State Audit office of Vietnam
4 / Vision, Mission, Core Values
5 / Strategic Goals, Strategic Objectives, Projects and Key Performance Indicators
6 / Implementation conditions
7 / Annexes
Annex 01 – Organizational structure of the SAV
Annex 02 – Comprehensive implementation matrix
FOREWORD
In the current development trend, the position and role of public financial inspection agencies has been increasingly strengthened and enhanced for improving the government accountability on budget and financial management, anti-corruption, thrift and waste prevention, public finance reform, international integration, transparency and administrative reform.
After over 18 years of operation, the State Audit Office of Vietnam has made important progress in its development as the Supreme Audit Institution (SAI) of Vietnam paving a good foundation for a sustainable development in the future. In that period the National Assembly of Vietnam and other stakeholders have increasingly appreciated and valued the work of SAV and recognized the importance that such an institution can play in the country’s development. SAV’s results are increasingly utilized in management, execution, oversight, approval and decision of financial and budget issues and in improving policies and laws.
Aiming at determining core values for SAV’s development being “Transparency - Quality - Efficiency and Continuously Increasing Value” SAV has elaborated SAV’s Strategy Development towards the year 2020, which has been approved by the National Assembly Standing Committee. Achievement of this Strategy, together with other SAV development activities, will contribute to the improved efficiency, professionalism and increased effectiveness of SAV’s performance.
Over the past year, in the implementation of the Cooperation Agreement on the IDI-ASOSAI Cooperation Programme on Development and Implementation of Strategic Plan period 2011-2013, the State Audit office of Vietnam has developed SAV Strategic plan period 2013 - 2017 in order to select and implement a number of important and highly prioritized activities under the SAV Development Strategy to 2020. To successfully implement the Strategic plan for the period 2013-2017, apart from the efforts and enthusiasm of the staff, auditors, the SAV wishes to receive active support and assistance of the Party, National Assembly, the Government, ministries, agencies, local authorities and international donors.
As the head of the State Audit office of Vietnam, I am committed together with the whole officials and employees of the SAV to work hard in order to ensure the successful implementation of this strategic plan./.
Hanoi, November 2012(signed)
Auditor General
Dinh Tien Dung
EXECUTIVE SUMMARY
In November 2011, in Istanbul, Turkey, the leader of the State Audit of Vietnam has signed the IDI-ASOSAI Cooperation Programme on Development and Implementation of Strategic Plan period 2011-2013. This Programme aims at the development and implementation of the strategic objectives to improve the capacity in strategic planning for 7 targeted Supreme Audit Institutions in ASOSAI region including Afghanistan, Bangladesh, Cambodia, Laos, Mongolia, Philippines, Vietnam.
In the framework of the program, the development and implementation of Strategic Plan by 7 said SAIs are done on the basis of learning by doing and start from needs assessment, strategic planning, and operational plan to monitoring and evaluation.
Results of the needs assessment of the SAI under the guidance of the IDI - ASOSAI pointed out a number of limitations and shortcomings in the operation of the SAV as follows: Firstly, the auditing scope of the SAV is limited in comparison with the SAV’s duties regulated in the State Audit Law, i.e. the SAV has mandates to audit every agency, institutions managing and using the State budget, funds and assets. Secondly, the SAV’s auditing quality and timelines have not met requirements as stated in the State Audit Law. The SAV’s audit results have not cleared up pressing queries about corruption and negative situations of the public as well as problems relating to efficiency of managing and using the State Budget, funds and assets. Thirdly, the effectiveness of the SAV’s auditing activities has been not high enough for the implementation of the SAV’s conclusions, recommendations and in particular dealing with the responsibilities of organizations and individuals made derogations to be sufficient, strict and timely as required. Furthermore, the using the audit results of the SAV for directing, managing, supervising and controlling public finance has been limited.
In order to overcome these limitations, the SAV has developed Development Strategic Plan for the period 2013-2017 to identify the vision, mission, core values, goals, objectives, activities and resources required to realize the main contents in the SAV Development strategic plan towards 2020.
The Strategic Plan for the period 2013-2017 of the SAV is built in line with activities in the Action Plan for implementation of the Development strategic plan towards 2020; and specifying a number of activities which are prioritized to carry out in the period 2013-2017.
BRIEF INTRODUCTION OF THE STATE AUDIT OFFICE OF VIETNAM
The State Audit Office of Vietnam (SAV) was established by the Government on 11th July 1994 under Decree No. 70/CP and functions in accordance with the Charter on its Organization and Operation which was promulgated under Decision No. 61/TTg dated 24th January 1995 by the Prime Minister. It is an entirely new agency in Vietnam. After its creation, SAV began to perform its many responsibilities by establishing its organizational structure, providing necessary physical infrastructure, recruiting and training staff members, and developing proper professional procedures and standards so as to undertake audit assignments required by the Government and the Prime Minister.
On 14th June 2005, at its seventh session the Law on State Audit was ratified by the eleventh National Assembly of the Socialist Republic of Vietnam, and became effective from 1st January 2006. The Law has opened up a new chapter in SAV’s development on a fresh role of being a specialized agency on examination of state finance established by the National Assembly, performing its duties independently and subject only to laws, and its function extends to auditing financial statements, auditing the compliance with laws, and auditing the performance of every agency and institutions who manages and uses state budget, funds and assets.
Under close leadership and guidance from the Party, National Assembly and Government of Vietnam, with efficient support and collaboration of ministries, Government agencies, localities and the public at large, and with its own tremendous efforts, SAV has developed significantly and delivered achievements in discharging its mandates and duties. This has enabled it to gain important prestige and greater trust as it builds up a transparent, sound and sustained national finances, providing efficient contributions to national industrialization and modernization, and international integration.
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 participated more actively in the global cooperation. It has developed and retained extensive relations with numerous external organizations, among those, a large number of prestigious supreme audit institutions (SAIs) and foreign agencies in the world which have signed bilateral cooperation agreements with SAV.
SAV has defined its development goals, to be met by 2015, and its vision to 2020 as “to enhance operational capability and legal effectiveness, quality and efficiency of state audits so as to make it a strong tool of the State in controlling and monitoring the management and use of state budget, money and assets; and to build up SAV a highly professional agency which will be modernized from phase to phase to a responsible and prestigious position in the field of public finance control so as to better meet requirements of the national industrialization and modernization, and in line with international practice and standards”. Under the philosophy “transparency, integrity, professionalism and brightness”, SAV is now giving its utmost efforts to becoming a responsible and renowned public finance controlling agency for the sake of sustainable and prosperous development of Vietnam.
VISION, MISSION AND CORE VALUES
STRATEGIC GOALS, STRATEGIC OBJECTIVES,
PROJECTS AND PERFORMANCE MEASURES
STRATEGIC GOAL 1
Strengthening the legal status and performance capacity of the SAV
No / Strategic Objectives / Projects / Key Performance Measures1 / Propose to include the legal status of SAV in the Socialist Republic of Vietnam’s Constitution / Propose to include the legal status of SAV in the Socialist Republic of Vietnam’s Constitution / Issues mentioned in the Constitution (legal status, independency, SAV’s function; procedure and authorization on the appointment and dismissal of Auditor General)
2 / Amendment and supplement to the State Audit Law / Develop project on the State Audit Law (adjustment) / The degree of timeliness on the amendment and supplement to the State Audit Law
The degree of completeness, uniformity and adequacy on the amended and supplemented content
3 / Develop and complete legal documents to materialize the State Audit Law / Develop and complete legal documents to materialize the State Audit Law / The degree of timeliness on the development of documents to materialize the State Audit Law
The degree of completeness, uniformity and adequacy of those documents
4 / Finalize other related laws / Make recommendations to finalize and supplement those related contents to the SAV in the Law on Organization of the National Assembly and Government / The degree of timeliness on the issuance of proposed document; the number of proposed law being finalized
The degree of uniformity and adequacy on those documents
Make recommendations to finalize and supplement the State budget Law and other related law to ensure the uniformity and adequacy between the State Audit law and those laws / The degree of timeliness on the issuance of proposed document, the number of proposed law being finalized.
The degree of uniformity and adequacy on those documents
5 / Enhance the role and effect of the SAV in the prevention and fight against corruption, wastefulness / Supplement regulations to the SAV’s tasks in the Law on prevention and fight against corruption, Law on prevention against wastefulness / The degree of completeness and adequacy on the mandate’s regulations
Develop coordinating procedure between the SAV and investigation agency, Procuracy, Courts and inspection agency / The degree of completeness and adequacy on the coordinating contents
Regulations on determining criteria, selected samples, allocation of funds and human resources by SAV to implement thrift and against wastefulness / The degree of completeness and adequacy of selected samples selection, funding and human resources
STRATEGIC GOAL 2
Develop auditor force with sufficient quantity, adequate structure to ensure quality and professionalism.
No / Strategic Objectives / Projects / Key Performance Measures1 / Develop auditor force with sufficient quality and adequate structure / Annual supplement to the workforce / The number and criteria for auditor and the structure of workforce in audit departments to meet the required quality and efficiency achievement
Recruit staff in accordance with assigned workforce
2 / Renew staff tasks / Develop uniform regulations on the work of staff and the management of staff / The number of issued document to guide the work of staff
The number of implemented activity to renew the work of staff
Implement staff rotation / The number of rotated staff in accordance with the requirement and regulation
The degree of staff satisfaction when being rotated
Finalize the staff database / The degree of completeness, uniformity and adequacy on the staff database
3 / Develop and implement auditor training and fostering plan / Develop and implement auditor training and fostering plan / The number of training and fostering program that is developed and implemented to train and foster auditor
The number of auditor that is trained and fostered in accordance with the plan
4 / Renew auditor training and fostering activities / Renew the content, program and method of training and fostering activities / The degree of reform: on the methodology, program and time of training and fostering auditor.
Develop instructor force by increasing number and quality / The number and quality of instructor are ensured and sufficient
STRATEGIC GOAL 3
Develop medium-term audit plan
No / Strategic Objectives / Projects / Key Performance Measures1 / Strengthening capacity for audit planning unit at all level, from SAV’s headquarter to audit departments or regional offices / Annual supplement to the workforce on audit planning / The number of staff specialized in medium-term audit planning at SAV’s headquarter, audit departments and regional offices
Organize training, fostering knowledge activities about medium-term audit planning / The number of staff being trained and fostered on medium-term audit planning
2 / Develop regulations, processes, and guidelines on medium-term audit planning for all type of audits. / Develop regulations on the development and evaluation of audit plan / The system of regulations, processes, guidelines on medium-term audit planning for all types of audits.
3 / Organize experimental medium-term audit planning / Practical application / The number of unit/department conducts medium-term audit planning
4 / Evaluate the implementation and the degree of completeness and applicable to meet the objectives of audit planning / Review, evaluate the implementation and the degree of completeness and applicable to meet the objectives of audit planning / The number of evaluation report
The number of medium-term audit plan meets the requirement
STRATEGIC GOAL 4
Improve the quality of audit quality assurance
No / Strategic Objectives / Projects / Key Performance Measures /1 / Develop overall process and templates for audit quality assurance activities / Develop overall process and templates for audit quality assurance activities / The degree of relevancy on the process and templates for audit quality assurance in practice (simple, easy to understand and implement, completeness, consistency and comprehensiveness)
The number of identified feasible, applicable criteria and standard to conduct audit quality control
The degree of timeliness of developed and issued documents (in line with schedule and requirement)
2 / Disseminate quality audit assurance’s processes and templates to related staff and force them to implement / Organize classes for dissemination and training activities about knowledge and skill on audit quality assurance / Annually, how many staff specializes in controlling activities that attend training activities on knowledge and skill of quality assurance
The percentage of staff specializes in controlling activities who has a clear understanding the processes and forms of audit quality assurance
Annually, how many report on audit quality assurance which are ensured on quality and timeliness being increased
The percentage of audit activity is being controlled annually
3 / Increase the exchanging and sharing knowledge with SAV’s audit departments and regional offices / Organize meetings between the Department of Audit policy and Quality Assurance and audit departments, regional offices / The number of meeting between Department of Audit policy and Quality Assurance and audit departments, regional offices annually (discussion issues are: audit standard, audit process, document related to audit quality assurance and control)
The number of SAV’s audit departments/ regional offices attend each meeting
Annually, how many report on audit quality assurance receives feedback from SAV’s audit departments and regional offices
The number of feasible recommendation over the total number of recommendations in audit quality assurance reports
Annually, how many meeting takes place where the Department of Audit policy and Quality Assurance supports SAV’s audit departments and regional offices to conduct their owns audit quality control
4 / Strengthening the coordination and support between the staff who do audit quality assurance and auditors in audit process / Strengthening the coordination and support between between the staff who do audit quality assurance and auditor in audit process / Annually, how many staff works on audit quality assurance joins audit as an auditor
Annually, how many staff works on audit quality assurance joins audit as audit quality controller
The quality of self-control on audit reports before submitting to SAV’s top management for approval
Annually, how many report on quality assurance being released directly
In every audit activity, how many audit documents and reports being controlled before releasing
STRATEGIC GOAL 5