The State Audit Office provides independent opinions on the Government's policies and solutions in organizing the implementation of the State budget estimates. This is an important opinion for the National Assembly to discuss and decide on solutions for socio-economic development and the State budget estimates for the planning year.
When participating in the appraisal of the central budget allocation plan, the State Audit Office must comment on whether the central budget allocation ensures the principles of fairness, rationality and positivity, ensuring funding for agencies and units to fulfill assigned tasks well, practicing thrift and combating waste, in order to promote the effectiveness in using the state budget in each field of operation of the central ministries and branches on the basis of reasonable balance between fields nationwide according to the socio-economic development policy of the Party and the State; the additional central budget for provinces and centrally run cities ensures proactive exploitation of revenue sources, stability and maintenance of sustainable growth rate of state budget revenue. To obtain the above comments, the State Audit Office can conduct appraisal of the following basic contents: Appraisal of the total budget expenditure and level for each field; Appraisal of expenditure estimates of each ministry, ministerial-level agency, government agency and other central agencies in each field; Examine the level of additional funding from the central government to the budget of each province and centrally-run city, including additional funding for budget balance and targeted funding; examine the level of investment capital allocation according to decisions on important national projects and works invested from the state budget.
The method of organizing the preparation of opinions on the State budget estimate, the central budget allocation plan, and the local budget estimate can be implemented according to the plan: The State Audit Office assigns the task of preparing opinions on the State budget and the central budget allocation plan to the General Department to preside over and coordinate with specialized State Audit offices (to give opinions on the estimates of the level I budget units under the Central Government). The preparation of opinions on the local budget estimate is undertaken by the regional State Audit offices. The preparation of these opinions is relatively independent but must ensure a close relationship to exchange and provide information to serve the preparation of opinions on the overall State budget estimate. The preparation of opinions on the budget estimate must be closely combined with the use of audit results of each budget audit. Every year, when the budget estimate preparation process begins, the specialized and regional State Audit offices
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Within their scope of responsibility, they will assign staff to participate with the provinces and central agencies in the process of making estimates, from the process of making and discussing estimates at different levels: expert level, advisory leadership level, and decision level. For the local budget, regional State Audit Offices will participate in the discussion process between the financial and investment planning agencies with departments, branches, and districts, towns, and cities directly under the Central Government. For the Central Government, specialized State Audit Offices will participate in the discussion of estimates between the Ministry of Finance, the Ministry of Planning and Investment, and ministries and branches. Each assigned unit must have written opinions sent to the level I budget units under the Central Government, the People's Council, and the People's Committee of the localities on their opinions on the assessment of the budget estimates. For the State budget and the plan for allocating the Central Government budget, the General Department will prepare a report for the State Audit Office to send to the Government and the State Auditor General to present to the National Assembly.
In addition, the State Audit Office needs to study and soon implement the audit of investment project estimates to appraise and evaluate the project's estimate report and other aspects to consider the feasibility and effectiveness of the program and project before submitting it to the National Assembly for approval of investment in important national projects and works under the authority of the National Assembly. In the contents of appraisal and criticism of program estimates
- Projects, the State Audit focuses on pre-auditing the financial conditions, prices, investment efficiency and capital repayment plans of the program or project. The mandatory audit of estimates is conducted on two aspects: Generality when auditing the estimate reports on all future activities and specificity when auditing the estimates of each activity or each separate investment.
When auditing budget reports, auditors rely on established auditing standards, analyze the logical interrelationship between events, analyze economic and social laws to evaluate the assumptions raised in terms of theory, practice, conditions and feasibility to what extent, and what side effects will occur in terms of economy, society and environment. Based on auditing standards, using appropriate auditing methods, auditors make comments related to the bases and assumptions to serve as the basis for the process of making budgets for operational aspects and budgeted financial statements in general. When auditing budgets for operational aspects
In order to evaluate a specific investment project or process, on the one hand, the auditor must rely on general standards, on the other hand, the auditor must rely on the analysis of constraints such as currency value, investment risk, business capital recovery period, environmental issues and other socio-economic conditions, in order to assess the feasibility as well as other socio-economic effects that the project brings.
The above analysis shows the urgency of auditing estimates in the activities of the State Audit Office at the present and future stages to help the Government, the National Assembly, and competent management agencies properly approve investment programs and projects and bring about the highest socio-economic efficiency in the use of the State budget.
3.2.6. Completing the State Budget audit process
3.2.6.1. Basic principles for completing the State Budget audit process
Based on the functions and tasks of the State Audit in performing State budget audits associated with the process of organizing and decentralizing State budget management, and at the same time with the relatively broad audit subjects in the field of State budget audits, the following basic principles are set forth to perfect the State budget audit process:
Firstly, Amending and supplementing the current State budget audit process to suit the functions and tasks of the State Audit Office. The general State budget audit process is generalized and is the initial approach in issuing detailed audit processes for each specific subject of each State budget audit field;
Second, Quickly develop detailed audit procedures for each specific subject of the State budget audit field as a guide for auditors, including: Audit procedures for State budget settlement reports; Audit procedures for local budget settlement reports; Audit procedures for budget settlement reports of level I budget units under the Central Government (ministries, branches, and central agencies); procedures for preparing State Audit opinions on State budget estimates, central budget allocation plans, and key national projects to meet the requirements of the State Audit Law, clearly defining the method of budget appraisal for local budgets, level I budget units under the Central Government with large revenues and expenditures...; Audit procedures for expenditures of national target programs and applications
used in auditing the central and local governments.
Regarding the State Budget Audit Process: it is necessary to clarify the audit contents at the agencies managing the general collection of State budget revenues in the area, audit at the agencies managing the general collection of State budget expenditures, detailed audit at the entities performing the obligation to collect and pay State budget revenues, detailed audit of the entities managing and using the State budget (development investment expenditures, regular expenditures...).
Regarding the audit process of budget settlement reports of level I budget units under the Central Government, it is necessary to focus on clarifying the auditing methods at general management agencies, auditing budget units and auditing revenue-generating public service units implementing financial autonomy mechanisms.
Regarding the State budget settlement report audit process: it is necessary to clarify the audit contents at the general management agencies, the audit indicators for revenue and expenditure settlement at the Ministry of Finance, General Department of Taxation, General Department of Customs, State Treasury...;
Third, develop guidelines on auditing the performance of the State budget sector for each budget level such as the State budget, the Central budget, the local budget, budget units and revenue-generating public service units. These guidelines must provide the contents of performance auditing, performance audit objectives, the basis for determining audit criteria and audit methods applicable to each specific subject related to the management and operation of State budget revenue and expenditure. Provide guidance on new audit methods specific to the performance audit type that have been applied by countries with developed auditing systems such as: statistical methods, social surveys, group discussion methods... in State budget auditing. In the immediate future, it is necessary to develop a performance audit process for budget units that directly use funds in the form of lump-sum expenditures and revenue-generating public service units, then gradually develop a performance audit process for budget levels.
3.2.6.2. Completing the steps of the State budget audit process
Step 1. Prepare for audit
Firstly, clearly define the subjects and objects of State budget audit to ensure good performance of the functions and tasks of the State Audit in assessing and confirming
Report on budget settlement at all levels, evaluate compliance in implementing State policies and regimes, evaluate the economy, efficiency and effectiveness in managing, using and operating the State budget.
The subject of State budget audit is the activities related to the management, use, and operation of the State budget and the final settlement reports. Based on the principle of State budget management in the direction of strengthening centralized and unified management of the State budget while strengthening the decentralization of management of local budgets, especially the role of local budget management for provincial budgets, in the field of State budget, the State Audit must simultaneously conduct audits of 04 budget levels and audit State budget final settlement reports, in which the provincial budget is the main one for local budgets. During the audit process, it is necessary to establish a relationship of service and coordination with People's Councils at all levels, especially the provincial People's Councils in all 4 stages of the audit process. Based on the above decentralization of state budget management, the main annual state budget audit subjects of the State Audit Office are the budget settlement reports of ministries, branches, central organizations (including security, defense, and Party agencies) and local budget settlement reports, and state budget settlement reports prepared by the Ministry of Finance before submitting them to the National Assembly for approval.
In addition to the above-mentioned direct audit subjects, to conduct the audit of the State budget settlement reports at all levels, the State Audit Office must also conduct audits at the subjects which are agencies and organizations related to the State budget revenue and expenditure, namely enterprises, public service units (related to the performance of obligations to the State budget and the use of State budget funds) and budget units, and management boards of construction investment projects (using the State budget for regular expenditures, target program expenditures, and development investment expenditures). However, due to the wide scope, the State Audit Office needs to clearly define the sampling method and audit objectives to audit these subjects, and at the same time have a clear direction when conducting surveys and through audit work at general management units to select this type of audit subject, avoiding the situation of auditing across budget units while resources are limited and do not meet the audit objectives. On the other hand, in the field of State Audit, to serve management and operation, the State Audit can organize specific thematic audits related to
to many different audiences.
The subjects of State budget audit need to be distinguished between mandatory audit subjects and non-compulsory subjects, in the direction of management and use of the State budget, financial statements of public agencies, public service units, State-owned enterprises, State organizations managing State financial funds are mandatory audit subjects. As for social organizations, private economic organizations receiving support funds from the State budget, or having tax obligations to the State, they may not be regular mandatory subjects of State Audit, but the activities of using the State budget or performing tax obligations are still subjects of State Audit. If this audit subject is left blank, it may lead to risks in management and it is very difficult to assess the level of honesty in the implementation of obligations to the State budget and local budget revenues. However, it is also necessary to develop methods, methods of auditing and select audit subjects of this type to limit unnecessary things and ensure transparency in auditing activities.
Supplementing the State budget audit object is the economic responsibility of leaders at all levels to contribute to the fight against embezzlement, corruption, and waste in the state apparatus, improving the effectiveness of State budget management and assigning this audit task to specialized State Audits and regional State Audits. Supplementing the audit object is the management and use of non-State budget funds originating from the budget, loans from local State budgets because the mechanism for controlling and regulating the operations of these funds is not yet tight. The audit of these funds should focus on evaluating the performance and policies for the operations of these funds.
Based on the above viewpoint, the specific State budget audit subjects are determined as follows:
One is, Regarding the audit of the General State Budget Finalization Report and the management and operation activities of the Central Government.
Clearly define the audit subject as the State budget settlement report prepared by the Ministry of Finance, synthesized from bottom up, and the direction and operation of the central government through
through the management of the Ministry of Finance, General Department of Taxation, General Department of Customs, State Treasury, Ministry of Planning and Investment.
The State Audit must evaluate the management of State budget revenue and expenditure. In particular, revenue must evaluate the preparation of estimates, management, use, settlement, synthesis and reporting for each revenue item such as import-export tax revenue, domestic revenue, transferred revenue, investment loan revenue, revenue managed through the State budget, revenue from re-lending; loans to offset budget deficit, temporary revenues and temporary retentions not yet included in the State budget finalization. Expenditure audit must evaluate the preparation of estimates, management, use, settlement and reporting of expenditures for development investment expenditures, regular expenditures; debt payment, aid; transferred expenditures; expenditures for setting up financial reserve funds; expenditures from revenue sources managed through the State budget; expenditures for lending from foreign loans for re-lending: determine the total loan amount and compare data between reports; additional expenditures from the central budget to the local budget; Advance payments this year and repayment of advances from the previous year: determine the total advance payments of the previous and next year, the content of the advance payments. Thereby, the State Audit must evaluate the management, operation of revenue, expenditure, budget balance and state budget deficit.
Regarding the audit of the final settlement of state budget revenue, the audit will be conducted at the General Department of Customs for export tax and import tax, the General Department of Taxation for state budget revenue by tax, aid revenue will be audited at the Department of Foreign Finance of the Ministry of Finance, other revenues will be audited at the Department of State Budget and the aggregated data will be compared with the State Treasury. Regarding state budget expenditure, the audit will be conducted at the Department of State Budget, the Department of Social and Administrative Affairs, the Department of Foreign Finance and the State Treasury, the Ministry of Planning and Investment. The audit process aims to confirm the final settlement report of state budget revenue and expenditure and monitor a number of audit topics related to state budget management and operation. The State Audit can expand the scope of audit, or compare and inspect at level I budget units under the central government or provinces and cities directly under the central government.
Second, for auditing level I budget units under the Central Government
Determining the subjects in audits of bank settlement reports
The budgets of ministries and central agencies by specialized State Audits must also be clear and consistent. With the mechanism of financial autonomy and budget allocation, the audit to determine stable budgets in the medium term (3 years) and evaluate the operational targets (outputs) of the units is the most important. Unlike the local budget, the audit of the budgets of ministries, branches and central agencies should focus on determining the level of state budget funding during the stable period, the budget units that use or collect large public revenues, and the synthesis of final settlement reports and construction investment projects.
The annual audit object for auditing the management and use of the budget of a ministry or branch should be changed to determine the audit object associated with the audit objective in a rotating manner with specialized topics to serve the assessment and confirmation of settlement data and serve the management, operation and consulting activities. The State Audit should not integrate too many contents in this audit (currently, the State Audit audits both the settlement reports of ministries and branches and audits the financial reports and the implementation of obligations to the State budget of enterprises under the ministry while there is no connection between these two reporting systems). That is, the State Audit needs to clearly distinguish the objective of auditing the budget settlement report from auditing the management and use of state money and assets to improve the quality of the audit, clearly distinguish the application of the type of audit for each group of subjects in the management and use of the state budget, state money and assets of ministries, branches and central agencies. The State Audit Office needs to develop a thematic audit plan (if any) for this type of audit object. Furthermore, if based on the roadmap to gradually reduce the management function of ministries and central branches over enterprises, the selection of enterprises as audit objects in the audit of the State budget settlement reports, money and state assets of ministries and branches will no longer be appropriate in the future.
Third, for NSDP audit
In the audit of the State Budget, depending on the audit objectives, the relevant audit subjects and objects are determined. Related to the assessment and confirmation of settlement data to serve the People's Council in approving the settlement and evaluating the management and