Directive No. 03/2000/CT-NHNN on Strengthening Internal Control and Audit Work at the State Bank

DIRECTIVE OF THE GOVERNOR OF THE STATE BANK

On Strengthening Internal Control and Audit Work at the State Bank

In recent times, internal control and audit work at the State Bank has been consolidated and achieved certain results: The viewpoint and awareness of the responsibility for building internal control structures among heads of units under the State Bank have improved; the role, position, authority, and responsibilities of internal control staff, organizational structures of specialized units conducting internal control and audit work have also been strengthened and consolidated.

The results of internal control and audit work have contributed to ensuring that units operate effectively, avoiding risks and losses of assets; complying with legal regulations, state policies, and the State Bank's policies; and adhering to systems, policies, rules, and operational procedures.

However, internal control and audit work at the State Bank over the past years still have many shortcomings: Some units have not truly paid attention to directing and organizing the implementation of inspection and control work, leading to continued occurrences of fund loss in storage and treasury; violations of economic management and financial regulations; non-compliance with systems, policies, rules, and operational procedures; organizational structures, staff qualifications, and capabilities have not met the requirements of internal control and audit work.

To gradually address these issues and improve the effectiveness of internal control and audit work, the Governor of the State Bank instructs:

1. Heads of units under the State Bank and Branch Directors of the State Bank in provinces and centrally-administered cities directly under the Central Government need to strengthen self-inspection and control work on the organization and implementation of assigned tasks; promptly identify and prevent negative manifestations and potential risks to ensure the entire State Bank system operates safely, effectively, stably, and develops; comply with state and industry regulations on currency, credit, payment, construction, and financial expenditure.

2. The General Inspectorate Department shall be responsible for effectively implementing internal control work on the activities of units under the State Bank; internal auditing of units performing central bank operations according to Decision No. 93/1999/QĐ-NHNN dated March 20, 1999, issued by the Governor of the State Bank on the internal control and audit regulations of the State Bank. Inspection and internal audit departments at provincial and centrally-administered city branches, the Management Bureau, Accounting and Finance Department, Trading Department, and the Representative Office of the State Bank in Ho Chi Minh City shall conduct comprehensive inspections of unit activities.

3. Heads of the Organization and Training Department, Management Bureau Director, Accounting and Finance Department Head, Trading Department Director of the State Bank, Representative Office Director of the State Bank in Ho Chi Minh City, and Branch Directors of the State Bank in provinces and centrally-administered cities directly under the Central Government shall be responsible for allocating competent staff to internal control positions within units. The General Inspectorate Department Head shall organize training sessions for internal auditors and control staff of units under the State Bank to equip them with deep knowledge and skills in internal control and audit to enhance their professional competence and ability to complete assigned tasks.

4. The General Inspectorate Department shall coordinate with the Organization and Training Department to study and revise the organizational structure and operation regulations of the General Inspectorate Department, internal control staff of branches, the Management Bureau, Trading Department, Accounting and Finance Department, and the Representative Office of the State Bank in Ho Chi Minh City to fit actual conditions and effectively implement internal control and audit tasks of the State Bank.

5. Heads of units under the State Bank and Branch Directors of the State Bank in provinces and centrally-administered cities directly under the Central Government must seriously correct errors and deficiencies identified through internal control and audit; strictly adhere to financial expenditure systems, refrain from unauthorized expenditures, accurately account for accounts; closely monitor construction project quotas, prices, and quantities during settlement and procurement processes, ensuring the legality and validity of payment invoices and documents.

Heads of units under the State Bank and Branch Directors of the State Bank in provinces and centrally-administered cities directly under the Central Government shall be responsible for studying, comprehending, and effectively implementing this Directive, and report the implementation results to the State Bank (General Inspectorate Department) no later than September 30, 2000, for consolidation and reporting to the Governor./.