Circular No. 02/2010/TT-TTCP stipulates the procedures for conducting an inspection.

CIRCULAR

Regulations on the procedure for conducting an inspection

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Based on the Inspection Law dated June 15, 2004;

Based on Decree No. 41/2005/NĐ-CP dated March 25, 2005 of the Government detailing and guiding the implementation of certain articles of the Inspection Law;

Based on Decree No. 65/2008/NĐ-CP dated May 20, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Audit Office,

The State Audit Office hereby stipulates the procedure for conducting an inspection as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular specifies the procedures, formalities, and contents of conducting an inspection, including preparation for inspection, conducting the inspection, and concluding the inspection.

Article 2. Applicability

This Circular applies to heads of state administrative agencies, heads of state inspection agencies, and inspection teams established by heads of state administrative agencies and heads of state inspection agencies to perform inspection tasks.

Chapter II

PROCEDURE FOR CONDUCTING AN INSPECTION

PART 1

PREPARATION FOR INSPECTION

Article 3. Surveying and Understanding the Situation to Decide on Inspection

1. Before issuing an inspection decision, where necessary, the head of the state administrative agency or the head of the state inspection agency shall decide on surveying and understanding the situation of the inspected entity (hereinafter referred to as the inspected entity) based on the requirements of the inspection.

2. The person assigned to survey and understand the situation shall be responsible for compiling, analyzing, and evaluating the collected information, and submitting a report to the person who assigned the task of surveying and understanding the situation. The report includes the following contents:

a) An overview of the organizational structure, management mechanisms, functions, tasks, and powers of the inspected entity;

b) Results of surveying and understanding the situation according to each content: the system of legal regulations related to the activities of the inspected entity; information related to the operational situation, inspections, audits, investigations conducted by competent agencies, and self-inspections and controls carried out by the inspected entity; information related to the main relationships associated with the operational activities of the inspected entity, and information related to the anticipated inspection contents;

c) Assessment of prominent issues, signs of violations, and recommendations on the contents that need to be inspected and the methods of organizing their implementation.

3. The time for surveying and understanding the situation shall be decided by the head of the state administrative agency or the head of the state inspection agency but shall not exceed 15 working days from the date of assigning the task of surveying and understanding the situation.

Article 4. Issuing an Inspection Decision

1. Based on the results of the survey and understanding the situation report (if any) and the approved inspection program and plan, the head of the state administrative agency or the head of the state inspection agency decides to conduct an inspection and assigns the task to individuals or specialized units within their organization to draft the inspection decision.

2. The contents of the inspection decision are specifically stipulated in Clause 1, Article 37 of the Inspection Law, including the following items:

a) Legal basis for the inspection;

b) Objectives, scope, and tasks of the inspection;

c) Time limit for conducting the inspection;

d) Head of the inspection team and other members of the inspection team;

e) Agencies, organizations, or individuals entrusted with the task of directing and supervising the activities of the inspection team (if any).

3. The Deputy Minister of the state administrative agency or the head of the state inspection agency shall sign the inspection decision and direct its issuance within the time limit prescribed by law.

Article 5. Construction and approval of the inspection plan

1. The head of the inspection team shall be responsible for drafting the inspection plan, which includes the following contents: purpose, requirements, scope of inspection, inspected subjects, period of inspection, time limit for inspection, methods of conducting the inspection, progress schedule, information reporting system, use of equipment, facilities, funds, and other necessary material conditions to serve the activities of the inspection team.

2. The inspection team shall discuss the draft inspection plan. Different opinions must be reported to the person who decides on the inspection for review before approval.

3. The head of the inspection team shall submit the inspection plan for approval by the person who decides on the inspection.

4. The time for constructing and approving the inspection plan shall be decided by the person who decides on the inspection, but not exceeding five days from the date of signing the inspection decision.

Article 6. Publicizing the Inspection Plan

1. The head of the inspection team shall organize a meeting of the inspection team to publicize the approved inspection plan and assign tasks to groups, teams, and members of the inspection team; discuss the methods and ways to organize the inspection, cooperation between groups, teams, and members within the team; and organize training sessions for members of the inspection team when necessary.

2. Each member of the inspection team shall draft a plan to implement their assigned tasks and report it to the head of the inspection team.

Article 7. Drafting the Outline of Requirements for Inspected Subjects' Reports

1. Based on the content of the inspection and the inspection plan, the head of the inspection team shall be responsible for drafting the outline of requirements for inspected subjects' reports together with other members of the inspection team.

2. The head of the inspection team shall send a written notice to the inspected subject (attached with the outline of requirements for reports) at least five days before announcing the inspection decision, specifying clearly the method of reporting and the deadline for submitting the report.

Article 8. Notification of the Announcement of the Inspection Decision

1. The head of the inspection team shall notify in writing the inspected subject about the announcement of the inspection decision. The notification must specify the time, location, and participants of the announcement session.

2. Participants in the announcement session include the inspection team, heads of agencies and organizations, and individuals who are inspected subjects. In case of necessity, the head of the inspection team may invite representatives of related agencies, organizations, and individuals to attend the announcement session.

PART 2

CONDUCTING INSPECTIONS

Article 9. Announcing the Inspection Decision

1. Within fifteen days from the date of issuing the inspection decision, the head of the inspection team shall announce the inspection decision to the inspected subject.

2. The head of the inspection team shall preside over the announcement session, read the full text of the inspection decision, clarify its purpose, requirements, working methods and procedures, rights and obligations of the inspected subject, specific work program, and other matters related to the activities of the inspection team.

3. The inspection team shall request representatives of heads of agencies, organizations, or individuals who are inspected subjects to directly report on the inspection contents according to the sent outline. After listening to the prepared report of the inspected subject, if necessary, the head of the inspection team may require the inspected subject to further supplement and complete the report.

4. The head of the inspection team shall assign members of the inspection team to record the minutes of the announcement of the inspection decision. The minutes shall be signed by the head of the inspection team and the head of the agency, organization, or individual who is the inspected subject.

Article 10. Collection of information and documents related to the content of inspection

1. The Head of the Inspection Team requests the inspected entity to provide files and documents related to the content of the inspection. The provision of files and documents shall be recorded in a receipt between the Inspection Team and the inspected entity.

2. During the inspection process, if deemed necessary, the Head of the Inspection Team or members of the Inspection Team (who are inspectors) may continue to request the inspected entity, or other agencies, organizations, or individuals to provide relevant information and documents. The provision of information and documents shall be evidenced by a written document from the agency, organization, or individual providing such information and documents, or by the Inspection Team recording a report on the provision of information and documents.

3. Management, exploitation, and utilization of collected information and documents shall comply with the provisions of the law on inspection.

Article 11. Verification and examination of information and documents

1. Based on the report of the inspected entity and the collected information and documents, the Inspection Team shall be responsible for researching, analyzing, comparing, evaluating, requesting the inspected entity to explain issues related to the content of the inspection, conducting verification and examination (if necessary), and bearing responsibility for the accuracy and objectivity of the verified and examined information and documents.

2. In cases where verification and examination of information and documents take place at agencies, organizations, or individuals that are not the inspected entities, members of the Inspection Team must propose to seek approval from the Head of the Inspection Team, which must be agreed upon by the Head of the Inspection Team. The results of the verification and examination of information and documents related to the content of the inspection must be evidenced by a written document from the agency, organization, or individual being verified and examined, or by the Inspection Team recording a verification and examination report.

3. When conducting inspections, if the Head of the Inspection Team or members of the Inspection Team discover any violations, they must record a report with the inspected entity to clearly define the content, nature, and degree of the violation, and the causes leading to the violation.

In cases of economic violations requiring immediate recovery or application of other measures, the Head of the Inspection Team proposes and drafts a document for the person issuing the inspection decision to consider and handle according to the authority stipulated in Article 42 of the Inspection Law.

4. Upon discovering a case with signs of violation of the law to the extent that criminal responsibility must be pursued, the Head of the Inspection Team has the responsibility to report to the person issuing the inspection decision to consider and decide on transferring the case file to the investigation agency (after evaluating evidence within the Inspection Team as prescribed in Article 20 of this Circular).

Article 12. Reporting on the progress of implementing inspection tasks

1. Members of the Inspection Team have the responsibility to report on the progress of implementing inspection tasks to the Head of the Inspection Team according to the approved inspection plan or upon urgent request by the Head of the Inspection Team.

2. The Head of the Inspection Team has the responsibility to report to the person issuing the inspection decision about the progress of the Inspection Team's implementation of inspection tasks according to the approved inspection plan or upon urgent request by the person issuing the inspection decision.

3. Progress reports on the implementation of inspection tasks shall be in writing and include the following contents: progress in implementing inspection tasks up to the reporting date; completed inspection content, results of the work already inspected, ongoing inspection content; planned work for the upcoming period; difficulties, obstacles, and proposed solutions.

4. The person issuing the inspection decision and the Head of the Inspection Team must review and provide specific, direct guidance on the progress reports of the Head of the Inspection Team and members of the Inspection Team.

Article 13. Amending and supplementing the plan for conducting inspections during the inspection process

1. The plan for conducting inspections shall be amended and supplemented according to the requirements of the person issuing the inspection decision.

a) In cases where the person issuing the inspection decision deems it necessary to amend and supplement the plan for conducting inspections, such person shall issue a written request to the Head of the Inspection Team to implement the amendment and supplementation.

b) The Head of the Inspection Team shall have the responsibility to notify the members of the Inspection Team about the content of the amendment and supplementation of the plan for conducting inspections and organize its implementation.

2. Amending and supplementing the plan for conducting inspections according to the proposal of the Inspection Team.

a) The Head of the Inspection Team shall submit a written proposal to the person issuing the inspection decision to consider and decide on amending and supplementing the plan for conducting inspections. The proposal for amending and supplementing the plan for conducting inspections must clearly state the reasons, contents of amendment and supplementation, and other related contents.

b) The Inspection Team shall discuss the proposal for amending and supplementing the plan and continue with the inspection. All differing opinions must be fully reported to the person issuing the inspection decision.

c) When the person issuing the inspection decision approves the amendment and supplementation of the plan for conducting inspections through a written approval, the Head of the Inspection Team shall base on the approval opinion to amend and supplement the plan for conducting inspections and organize its implementation.

Article 14. Changing the Head of the Inspection Team, members of the Inspection Team; supplementing members of the Inspection Team

1. During the inspection process, the change of the Head of the Inspection Team and members of the Inspection Team shall be carried out in cases where the Head of the Inspection Team and members of the Inspection Team fail to meet the requirements and tasks of the inspection, violate laws, or due to objective reasons cannot perform the inspection tasks.

2. Changing the Head of the Inspection Team.

a) In cases where the Head of the Inspection Team requests to be changed: The Head of the Inspection Team shall report in writing detailing the reasons to the person issuing the inspection decision.

b) In cases where the person issuing the inspection decision proactively changes: The person issuing the inspection decision shall inform the Head of the Inspection Team of the reasons for the change.

c) The person issuing the inspection decision assigns the proposed replacement to draft a decision to change the Head of the Inspection Team to be signed and issued by the person issuing the inspection decision.

3. Supplementing members of the Inspection Team shall be carried out when it is necessary to ensure the progress and quality of the inspection or to meet other requirements arising during the inspection process.

4. The change and supplementation of members of the Inspection Team shall be proposed in writing by the Head of the Inspection Team. The proposal for change and supplementation must clearly state the reasons, names, and positions of the members being changed or supplemented.

If the person issuing the inspection decision agrees to change or supplement members of the Inspection Team, the Head of the Inspection Team shall draft a decision for change or supplementation to be signed and issued by the person issuing the inspection decision.

Article 15. Extending the inspection time

1. The Head of the Inspection Team shall submit a written proposal to the person issuing the inspection decision to extend the inspection time. The proposal must clearly state the reasons and extension period; differing opinions of the members of the Inspection Team regarding the proposal for extension (if any).

2. Based on the proposal of the Head of the Inspection Team, the person issuing the inspection decision shall consider and decide to extend the inspection time in accordance with the provisions of the law.

3. The decision to extend the inspection period shall be sent to the Inspection Team, the inspected entity, and related agencies, organizations, and individuals.

Article 16. Report on the Results of the Inspection Team Members' Tasks

Each member of the inspection team shall be responsible for reporting in writing to the head of the inspection team about the results of the assigned tasks and shall bear responsibility for the accuracy and truthfulness of such reports.

In cases where the content of the report is not clear or sufficient, the head of the inspection team shall request the members of the inspection team to supplement and clarify further.

Article 17. Inspection Team's Logbook

1. The inspection team's logbook is a record book documenting the activities of the inspection team, the contents related to the activities of the inspection team occurring on a daily basis from the date of the inspection decision until the handover of the inspection file to the competent authority.

2. Every day, the head of the inspection team shall be responsible for recording the logbook and signing to confirm the recorded content. In necessary cases, the head of the inspection team may delegate the task of recording the logbook to the members of the inspection team, but the head of the inspection team shall still be responsible for the recording and signing to confirm the recorded content in the inspection team's logbook.

3. The content of the inspection team's logbook needs to reflect:

a) Date, month, year; the tasks carried out; the name of the inspected organization, institution, individual or those related who were checked, verified, or interviewed;

b) Directives and management opinions of the person issuing the inspection decision, of the head of the inspection team (if applicable);

c) Difficulties and obstacles arising during the inspection activities of the inspection team (if any);

d) Other contents related to the activities of the inspection team (if applicable).

4. The head of the inspection team shall be responsible for managing the inspection team's logbook during the inspection process. In case the inspection team's logbook is lost or damaged due to objective reasons, the head of the inspection team must report to the person issuing the inspection decision for examination and resolution.

5. Recording the inspection team's logbook shall be conducted according to the model prescribed by the General Inspectorate and must ensure accuracy, objectivity, truthfulness, clarity, and full reflection of the work carried out during the inspection process. The inspection team's logbook shall be kept in the inspection file.

Article 18. Completion of Inspection at the Inspected Location

1. When preparing to complete the inspection at the inspected location, the head of the inspection team shall organize a meeting with the inspection team to unify the contents of the work that need to be completed until the end of the inspection at the inspected location.

2. The Head of the Inspection Team shall report to the person deciding on the inspection about the expected conclusion of the inspection at the inspected location.

3. The head of the inspection team shall notify in writing the time of completing the inspection at the inspected location to the head of the inspected organization, institution, or individual, or if necessary, may organize a meeting with the inspected party to announce the completion of the inspection at the inspected location; the meeting shall be documented in a minutes and signed between the head of the inspected organization, institution, or individual and the head of the inspection team.

PART 3

CONCLUSION OF INSPECTION

Article 19. Construction of Inspection Result Report

1. The head of the inspection team shall be responsible for leading the preparation of the inspection result report. The inspection result report must closely follow the content and plan of the inspection, clearly stating observations and evaluations of each inspected content; clearly identifying violations, causes, and responsibilities for the violations; proposing recommendations for handling violations; clearly stating legal provisions serving as the basis for determining the violation, its nature, and severity, and recommending measures to address the violations.

2. During the preparation of the inspection result report, if necessary, the head of the inspection team may seek the opinions of relevant organizations, institutions, or individuals to ensure the accuracy and objectivity of the conclusions and recommendations for handling.

3. The head of the inspection team shall solicit written comments from the members of the inspection team on the draft inspection result report and finalize the inspection result report. In cases where the members of the inspection team have differing opinions on the content of the draft, the head of the inspection team shall consider and decide, and bear legal responsibility before the law and the person issuing the inspection decision regarding his/her decision.

4. Within the latest fifteen days from the date of completing the inspection at the inspected location, the head of the inspection team shall submit the inspection result report to the person issuing the inspection decision along with a report on the differing opinions of the inspection team members regarding the inspection result report.

Article 20. Evaluation of Evidence by the Inspection Team

When preparing the report on the inspection results or when proposing to transfer the case to the investigation agency, the Head of the Inspection Team must organize for the members of the team to evaluate evidence for each content of the conclusion, recommendation, and proposal, and such evaluation must be recorded in the minutes of the Inspection Team meeting.

Article 21. Reviewing the report on the inspection results

1. The person who made the inspection decision shall directly study or assign a specialized agency or unit to assist in researching and reviewing the contents of the report on the inspection results.

2. In cases where it is necessary to clarify or supplement the contents in the report on the inspection results, the person issuing the inspection decision shall convene a meeting of the Inspection Team to hear the direct report from the Inspection Team or issue written instructions requiring the Head of the Inspection Team and other members to provide detailed reports.

In cases where it is necessary to conduct additional inspections to clarify matters, the person issuing the inspection decision shall issue a supplementary inspection decision to serve as the basis for the Inspection Team to implement.

Article 22. Implementation of Instructions from the Person Issuing the Inspection Decision

The Head of the Inspection Team organizes the implementation of instructions from the person issuing the inspection decision; convenes a meeting of the Inspection Team to discuss supplementary reports and clarify the report on the inspection results.

The Head of the Inspection Team submits supplementary reports and further clarifications of the report on the inspection results to the person issuing the inspection decision, along with differing opinions of the members of the Inspection Team (if any).

Article 23. Drafting the Inspection Conclusion

1. After receiving the report on the inspection results and supplementary reports (if any) from the Inspection Team, the person issuing the inspection decision directs the Head of the Inspection Team to lead the drafting of the inspection conclusion to be submitted to the person issuing the inspection decision.

2. The person issuing the inspection decision conducts their own research or assigns a specialized agency to study the draft inspection conclusion and advise them during the process of issuing the inspection conclusion. Advisory opinions are expressed in writing and kept in the inspection file.

3. In cases where the person issuing the inspection decision sends the draft inspection conclusion to the inspected entity and the inspected entity provides a written explanation, the Head of the Inspection Team has the responsibility to study and propose to the person issuing the inspection decision a handling direction for the content of the explanation provided by the inspected entity.

4. The content of the draft inspection conclusion is stipulated in Clause 1 of Article 43 of the Inspection Law.

Article 24. Signing and Announcing the Inspection Conclusion

1. The Head of the Inspection Team completes the inspection conclusion for the person issuing the inspection decision to sign and promulgate. The inspection conclusion is sent to the inspected entity and relevant agencies, organizations, or individuals as prescribed.

In cases where the inspection conclusion includes measures for handling within the authority of the person issuing the inspection decision, the Head of the Inspection Team drafts the handling decision according to the law and submits it to the person issuing the inspection decision for signing and promulgation.

In cases where the inspection conclusion includes measures for handling outside the authority of the person issuing the inspection decision, the inspection conclusion is sent to the head of the competent state agency for consideration and handling as prescribed in Article 44 of the Inspection Law.

2. The announcement of the inspection conclusion is decided by the person issuing the inspection decision. In cases where the person issuing the inspection decision decides to announce the inspection conclusion, it shall be carried out as follows:

a) The person issuing the inspection decision or the Head of the Inspection Team authorized to do so shall notify in writing the head of the agency, organization, or individual being inspected about the time, place, and participants of the announcement of the inspection conclusion. Participants in the announcement of the inspection conclusion include the head of the agency, organization, or individual being inspected, and representatives of relevant agencies, organizations, or individuals.

b) The person issuing the inspection decision or the Head of the Inspection Team reads the full text of the inspection conclusion; clearly states the responsibilities of agencies, organizations, or individuals in implementing the inspection conclusion;

c) The announcement of the inspection conclusion shall be recorded in a minutes document.

Article 25. Return of Files and Documents

1. After issuing the inspection conclusion, the Head of the Inspection Team is responsible for organizing the return of files and documents that do not need to be seized to the inspected entity.

2. The Head of the Inspection Team may decide to return files and documents before issuing the inspection conclusion, but must ensure that such files and documents are not required to be retained or are unrelated to the content of the inspection conclusion.

3. The handover of files and documents shall be recorded in a handover record between the Inspection Team and the inspected entity.

Article 26. Summary of Inspection Team Activities

1. After issuing the inspection conclusion, the Head of the Inspection Team shall be responsible for convening a meeting of the Inspection Team to summarize and draw lessons from the activities of the Inspection Team. The summary content includes:

a) Evaluation of the inspection results compared with the objectives and requirements of the inspection.

b) Evaluation of the performance of assigned responsibilities and tasks, implementation of the Inspection Team's Operation Regulations, Supervision and Inspection Regulations of the Inspection Team, Conduct Rules for Inspectors, and other relevant regulations concerning the activities of the Inspection Team.

c) Lessons learned from the inspection.

d) Any recommendations or proposals of the Inspection Team (if any).

2. Rewards and Disciplinary Actions for the Inspection Team.

a) If the Inspection Team completes its inspection tasks excellently and the Head of the Inspection Team and members of the Inspection Team have outstanding achievements during the inspection process, they shall be recommended to the competent authority for commendation and rewards;

The voting and recommendation for commendation and rewards must be conducted openly, democratically, and objectively in accordance with the provisions of the law and guidance on commendation and rewards issued by the Chief Inspector.

b) During the inspection process, if the Head of the Inspection Team or members of the Inspection Team violate prohibitions in inspection activities or commit acts in violation of the law, they shall be subject to examination and handling according to current regulations.

2. Upon completion of the summary of the Inspection Team's activities, the Head of the Inspection Team shall submit a written report on the summary contents and lessons learned from the Inspection Team's activities to the person who made the inspection decision and the head of the main unit conducting the inspection.

Article 27. Preparation and Transfer of Inspection Files

1. The Head of the Inspection Team shall be responsible for organizing the preparation of the inspection file, including:

a) The inspection decision, inspection plan, supplementary and amended documents related to the inspection decision and plan, changes and additions to the Head of the Inspection Team and members of the Inspection Team (if any);

b) Work records, inspection records, verification records; various types of reports and explanations provided by the inspected entity, materials and evidence related to the content (as reflected in the inspection conclusion);

c) Reports from the inspected entity; progress reports, task completion reports of Inspection Team members; inspection result reports; inspection conclusion;

d) Documents regarding handling and related documents to handling recommendations;

e) Inspection Team logbooks and other materials related to the inspection.

2. Within thirty days from the date of issuance of the inspection conclusion, the Head of the Inspection Team shall be responsible for transferring the inspection file to the agency directly managing the Head of the Inspection Team. In case of objective obstacles, the transfer period may be extended but not exceed ninety days. If the person making the inspection decision is not the head of the agency directly managing the Head of the Inspection Team, the Head of the Inspection Team shall report to the person making the inspection decision to seek instructions on transferring the inspection file to the competent authority.

3. The transfer of the inspection file must be recorded in a record of transfer.

Chapter III

IMPLEMENTING PROVISIONS

Article 28. Effective Date

This Circular takes effect from April 15, 2010.

Article 29. Supplementing and Amending

During the implementation process, if there are any difficulties or new issues arise, they should be promptly reported to the Government Inspectorate for research and consideration to supplement and amend accordingly./.