Circular No. 26/2016/TT-NHNN on supervision, inspection, and audit for the National Banknote Printing Works

CIRCULAR

Regulations on supervision, inspection, and audit

for the National Banknote Printing Factory

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Pursuant to the Law on the State Bank of Vietnam No. 49/2010/QH12June 16/6/2010;

On the basis of Law on Management and Use of State Capital for Production and Business at Enterprises No. 69/2014/QH13 dated November 26, Decree No. 40/2012/NĐ-CP dated May 2, 2012 of the Government on currency issuance operations; storage and transportation of precious assets and valuable papers in the State Bank of Vietnam system, credit institutions, and foreign banks;/2014;

Decree No. Decree No. 49/2014/NĐ-CP dated May 20, 2014 of the Government on supervision, inspection, and audit of state enterprises in compliance with laws and decisions of owners;Pursuant to Decree No. 87/2015/NĐ-CP dated October 6, 2015 of the Government on supervision of state capital investment in enterprises, financial supervision, evaluation of operational efficiency, and public financial statements of state enterprises and enterprises with state capital; Decision No. 3/2013/NĐ-CP dated November 11 of the Governmentregarding

Decree No. the issuance of Circulars stipulating supervision, inspection, and audit of the National Banknote Printing Factory;This Circular regulates the supervision, inspection, and audit of the State Bank of Vietnam (referred to as the State Bank) over the National Banknote Printing Factory.Article 1. Units under the State Bank assigned the task of supervising, inspecting, and auditing the National Banknote Printing Factory.

Article 2. The National Banknote Printing Factory (referred to as the Factory).Article 3. Other organizations and individuals related to the supervision, inspection, and audit of the Factory. Article 3. Purpose of supervision, inspection, and audit1. To grasp, reflect, and evaluate the situation of compliance with laws and decisions of the State Bank by the Factory, thereby promptly rectifying or applying appropriate measures to address deficiencies and limitations to enhance the operational efficiency of the Factory. 2. To identify deficiencies and weaknesses in the Factory's operations; determine the causes and responsibilities of relevant organizations and individuals for handling according to authority or recommending authorities to consider and handle. 3. To promptly detect issues and inconsistencies in policies, laws, and management mechanisms concerning the Factory to propose and study amendments and supplements for appropriateness.4. To strengthen transparency in the Factory's operations to ensure the safety of money and state assets at the Factory. Article 4. Principles of supervision, inspection, and audit1. To comply with legal regulations and ensure objectivity, accuracy, timeliness, transparency, and fairness.2. To effectively coordinate between units under the State Bank assigned the task of supervision, inspection, and audit and other relevant agencies, organizations, and individuals in such work.

Based on Decree No. 156/2013. Not to hinder the normal operation of the Factory./114. Not to overlap in scope, content, or time of inspection and audit between units under the State Bank and authorized agencies, organizations, and individuals.Health inspection,u organ các ngành kinh tế

At the proposal of the Internal Audit Department Director;

Article 5. Supervision1. Content of supervisiona) Financial supervision includes: supervision of the management and use of state capital and assets at the Factory, supervision of the preservation and development of the Factory's capital, supervision of production and business activities and financial status of the Factory according to the financial supervision regulations and assessment of operational effectiveness of the Factory;b) Supervision of currency printing, minting, and gold ingot production, and commemorative items made of gold at the Factory according to the State Bank's decision and other relevant legal provisions;c) Supervision of organizational work, personnel management policies, salaries, and income of the Factory according to the State Bank's regulations and other relevant legal provisions.2. The State Bank's supervision is carried out through the consolidation, analysis, and evaluation of information, documents, and reports from the Factory, including:3. SHP (Shape file) is a data storage format for the geospatial database at the national level.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

a) Self-inspection and supervision reports of the Factory;

Article 2. Applicability

b) Inspection and supervision reports of the Factory's Inspector appointed by the Governor of the State Bank (referred to as the Governor);

c) Reports of inspection results by inspection teams, auditors, and auditors of the Factory;

d) Letters of complaint, reports, and accusations related to the Factory within their jurisdiction.

3. Reporting on supervision results

a) Reporting unit:

(i) The Issuance and Treasury Department shall report on supervision results according to the supervision content specified in Point b Clause 1 of this Article to the Finance and Accounting Department;

(ii) The Cadres and Civil Servants Department shall report on supervision results according to the supervision content specified in Point c Clause 1 of this Article to the Finance and Accounting Department;

(iii) The Finance and Accounting Department shall report on supervision results according to the supervision content specified in Point a Clause 1 of this Article and compile reports from other units, prepare the State Bank's supervision report to submit to the Governor;

b) Content of reporting on supervision results:

(i) Characteristics, conditions, and current status of the Factory during the reporting period;

(ii) Results of self-supervision by the Factory and the Factory Inspector's report;

(iii) Existing issues and recommendations from inspection teams, auditors, and auditors of the Factory;

(iv) Supervision results of the Factory by reporting units as specified in point a of this clause;

Chapter II

SPECIFIC PROVISIONS

(v) Recommendations and solutions to address existing issues (if any);

c) Reporting deadline:

(i) Semi-annually and annually, the Issuance and Treasury Department and the Cadres and Civil Servants Department shall send supervision reports to the Finance and Accounting Department before July 31 of the reporting year (for semi-annual reports) and April 30 of the following year (for annual reports);

(ii) Semi-annually and annually, the Finance and Accounting Department shall submit the State Bank's supervision report to the Ministry of Finance, the Ministry of Planning and Investment, the Government Inspectorate, and related agencies along with the Factory's self-supervision report and the Factory Inspector's supervision report before August 31 of the reporting year (for semi-annual reports) and May 31 of the following year (for annual reports).

4. Handling of supervision results

Based on the supervision results, the Finance and Accounting Department, the Cadres and Civil Servants Department, and the Issuance and Treasury Department are responsible for:

a) Self-inspection and supervision report of the Factory;

b) Inspection and supervision report of the Factory's Inspector appointed by the Governor of the State Bank (referred to as the Governor);

c) Reports on the results of inspections, audits, and investigations conducted by inspection teams regarding the Factory;

d) Petitions, complaints, and reports related to the Factory within their jurisdiction.

3. Supervision Result Report

a) Reporting Unit:

(i) The Issuance and Treasury Department shall submit the supervision result report according to the supervision content stipulated in Point b Clause 1 of this Article to the Financial and Accounting Department;

(ii) The Organization and Cadres Department shall submit the supervision result report according to the supervision content stipulated in Point c Clause 1 of this Article to the Financial and Accounting Department;

(iii) The Financial and Accounting Department shall submit the supervision result report according to the supervision content stipulated in Point a Clause 1 of this Article and compile the reports from other units to prepare the State Bank's supervision result report for submission to the Governor;

b) Content of the Supervision Result Report:

(i) Characteristics, situation, and current status of the Factory during the reporting period;

(ii) Results of self-supervision by the Factory and the Factory's Inspector's report;

(iii) Existing issues and recommendations from inspection, audit, and investigation teams regarding the Factory;

(iv) Results of Factory supervision by the reporting units specified in Point a of this Clause;

(v) Recommendations and solutions to address and rectify existing issues (if any);

c) Reporting Deadline:

(i) Semi-annually and annually, the Issuance and Treasury Department and the Organization and Cadres Department shall submit the supervision result report to the Financial and Accounting Department before July 31 of the reporting year (for semi-annual reports), and before April 30 of the following year (for annual reports);

(ii) Semi-annually and annually, the Financial and Accounting Department shall submit the State Bank's supervision report along with the Factory's self-supervision report and the Factory's Inspector's supervision report to the Ministry of Finance, the Ministry of Planning and Investment, the Government Inspectorate, and relevant agencies before August 31 of the reporting year (for semi-annual reports), and before May 31 of the following year (for annual reports).

4. Handling of Supervision Results

Based on the supervision results, the Financial and Accounting Department, the Organization and Cadres Department, and the Issuance and Treasury Department shall be responsible for:

a) Examine and resolve in a timely manner within the authority any difficulties and obstacles related to the operation of the Factory; create conditions for the Factory to complete its production goals and plans that have been approved;

b) Timely apply measures within the authority to correct operations, monitor, and urge the Factory to implement results;

c) Recommend to the Governor to handle the Chairman of the Board of Members, members of the Board of Members, General Director, and Internal Auditor when they fail to comply with or fully comply with information and reporting systems, fail to comply with or fully comply with regulations of the State Bank, and other violations of laws;

d) Implement inspection decisions on the Factory according to the authority stipulated in this Circular;

đ) Report to the Governor for inspection when there are signs of law violation or transfer case files to competent investigative agencies to pursue criminal responsibility when there are signs of criminal offenses;

Article 6. Inspection

1. Content of Inspection

a) Inspection of financial accounting management work of the Factory:

(i) Inspect business operation and financial situation;

(ii) Inspect capital management and usage, preservation and development of capital, implementation of public service products;

(iii) Inspect financial reports and compliance with policies and laws;

b) Inspection of printing, minting money and gold bar production, and gold commemorative items of the Factory:

(i) Inspect the implementation and termination of contracts for printing and minting money and gold bar production, and gold commemorative items signed with the State Bank;

(ii) Inspect bidding, procurement of materials and equipment for printing and minting money and gold bar production, and gold commemorative items;

c) Inspection of the destruction of defective printed money, minted money, and defective paper for printing money and metal for minting money;

d) Inspection of organizational, management, operational, salary, and income work of the Factory:

(i) Inspect organizational work, salaries, incomes, and resource allocation (human resources, assets...);

(ii) Inspect management and operational work of the Chairman of the Board of Members and the General Director of the Factory;

(iii) Inspect management, operational, and implementation work of tasks of production departments and workshops;

đ) Inspection of internal control work of the Factory;

e) Inspection and evaluation of the performance of the Internal Auditor of the Factory appointed by the Governor;

2. Method of Conducting Inspection

a) Regular inspection: Regular inspection of the Factory is carried out according to the annual inspection and audit plan;

b) Surprise inspection: Surprise inspection of the Factory is conducted when the Factory shows signs of law violation, non-compliance with decisions of the State Bank, or upon request for management by the State Bank;

3. Authority to Issue Inspection Decisions

a) For regular inspection: Based on the annual inspection and audit plan, the head of units under the State Bank assigned to lead the inspection signs the inspection decision for the Factory;

b) For surprise inspection: Based on the inspection content, the Governor signs the inspection decision or delegates the heads of relevant units under the State Bank to sign the surprise inspection decision for the specific Factory:

(i) The Head of the Internal Audit Department decides to inspect the Factory on the contents specified in Point c and đ Clause 1 of this Article;

(ii) The Head of the Finance and Accounting Department decides to inspect the Factory on the contents specified in Point a and e Clause 1 of this Article;

(iii) The Head of the Issuance and Treasury Department decides to inspect the Factory on the contents specified in Point b Clause 1 of this Article;

(iv) The Head of the Organization and Cadre Department decides to inspect the Factory on the contents specified in Point d Clause 1 of this Article;

4. Organization of Inspection Teams

a) Issuing inspection decisions

(i) For regular inspection: Based on the inspection plan, the heads of relevant units under the State Bank sign the inspection decision and send it to the Factory at least three working days before the inspection date;

(ii) For surprise inspection: The inspection team is responsible for notifying the Factory of the time and content of the inspection at least one working day before the inspection date;

b) The inspection decision must include the following basic contents:

(i) Basis for inspection;

(ii) Scope and content of inspection;

(iii) Time limit for conducting the inspection;

(iv) Name, position, workplace of the team leader and team members;

c) The maximum duration for conducting an inspection is ten working days from the date of announcing the inspection decision; if the inspection involves multiple complex issues, the inspection period may be extended but not exceed fifteen working days from the date of announcing the inspection decision;

d) During the inspection process, the team leader shall prepare minutes for any illegal acts of the Factory or to confirm the collection and provision of information and documents related to the inspection content. The minutes must include the following contents:

(i) Date of preparation of the minutes;

(ii) Name and position of the team leader;

(iii) Name and position of the Factory's representative;

(iv) Illegal acts of the Factory or collected and provided information and documents;

(v) Confirmation by the team leader and the Factory's representative. If the Factory's representative does not sign the confirmation on the minutes, the team leader records the reason in the minutes and reports to the person issuing the inspection decision for handling;

5. Reporting Inspection Results and Conclusions

a) Before concluding the inspection, the team leader is responsible for drafting an inspection report to send to the Factory and organizing a meeting to review the draft report on the inspection results with the Factory. The meeting content is recorded in minutes, clearly stating any unresolved issues and explanations from the Factory (if any) regarding the draft inspection report content;

b) Within five working days from the date of completion of the inspection, based on the minutes of the meeting to approve the draft report on the inspection results, the head of the inspection team shall complete the inspection report and send it to the person who issued the inspection decision along with the minutes of the meeting to approve the draft report on the inspection results. The inspection result report shall include the following contents:

(i) Evaluation of the situation regarding the organization and operation of the Factory related to the inspection content;

(ii) Inspection results according to each inspection item (advantages, existing issues, limitations, shortcomings, violations, causes...);

(iii) Analysis of collective and individual responsibilities and proposals for solutions to address or recommendations for handling violations of laws and other relevant matters (if any);

(iv) Recommendations for competent authorities to conduct audits (if any);

c) Within five working days from the date of receipt of the inspection result report, the person who issued the inspection decision must issue the inspection conclusion;

d) The inspection conclusion shall be sent to the Factory, the Internal Audit Department, and relevant units. In case the Factory has reservations, the person who issued the inspection decision shall report to the Governor for consideration and handling. The inspection conclusion shall be kept in the Factory's management file.

6. Handling of inspection results

a) Based on the inspection results, the person who issued the inspection decision shall be responsible for applying measures within their authority to correct and address difficulties and obstacles of the Factory or recommend the Governor to handle them in accordance with regulations;

b) If the inspection results are not sufficient to assess the current status of the Factory, the person who issued the inspection decision shall recommend the Governor to decide on conducting an audit within their authority;

c) During the process of reviewing and handling inspection results, if signs of criminal offenses are discovered, the person who issued the inspection decision shall report to the Governor to transfer the case file to the competent investigative authority in accordance with the law.

Article 7. Audit

1. The State Bank shall conduct comprehensive audits or specific case audits against the Factory in terms of compliance with laws and adherence to regulations of the State Bank and other relevant laws.

2. The basis, procedures, and processes for conducting audits; conclusions and handling of audit conclusions for the Factory shall be carried out in accordance with the provisions of the law.

Chapter III

RESPONSIBILITIES OF UNITS

Article 8. Responsibilities of the Factory

1. Board of Members, Chairman of the Board of Members

a) Shall be responsible for organizing and directing the implementation of self-supervision, inspection, and internal control activities comprehensively across all aspects of the Factory's operations to ensure absolute safety during the production of printing and minting money and producing gold bars and commemorative items made of gold in accordance with the current regulations of the State Bank and other relevant laws;

b) Shall organize regular inspections and supervision of investment, procurement, warehousing, inventory, and periodic inventory of materials, equipment, and spare parts serving the printing, minting of money, and production of gold bars and commemorative items made of gold in accordance with the current regulations of the State Bank and other relevant laws;

c) Shall proactively review and examine the Factory's operations when there are unusual signs occurring during the production, use, and procurement of materials and goods for printing, minting of money, and production of gold bars and commemorative items made of gold to handle them promptly, and in cases exceeding their authority, report to the Governor;

d) Shall provide necessary documents and facilitate the work of supervision, inspection, and audit by the State Bank concerning the Factory's operations;

đ) The sending, storage, and use of reports and documents related to the Factory must comply with the legal provisions on protecting state secrets;

e) Shall implement information and reporting systems in accordance with the regulations of the State Bank and other relevant laws.

2. Factory Inspector

a) Shall carry out inspections and supervision of the Factory's operations in accordance with the regulations of the State Bank and other relevant laws;

b) Shall implement information and reporting systems in accordance with the regulations of the State Bank and other relevant laws.

Article 9. Construction and approval of supervision, inspection, and audit plans for the Factory

1. Construction of supervision, inspection, and audit plans

a) Annually, based on the operational situation of the Factory, units under the State Bank shall construct supervision, inspection, and audit plans for the Factory and submit them to the Internal Audit Department for consolidation and submission to the Governor.

b) The supervision, inspection, and audit plan must clearly define its objectives, contents, and scope of supervision, inspection, and audit for the Factory.

c) In cases where there is no requirement for inspection or audit of the Factory, units shall send a document to the Internal Audit Department regarding the non-execution of inspections or audits in the year of plan preparation.

2. Deadline for submitting supervision, inspection, and audit plans

By November 5th of the reporting year, units shall submit their annual supervision, inspection, and audit plans for the Factory to the Internal Audit Department.

3. Approval of supervision, inspection, and audit plans

The Internal Audit Department shall review and submit the annual supervision, inspection, and audit plans for the Factory to the Governor for approval and forward them to relevant state agencies for coordination in implementation.

Article 10. Responsibilities of Units under the State Bank

1. The Internal Audit Department

a) Lead in constructing supervision, inspection, and audit plans for the Factory in accordance with Article 9 of this Circular and implement inspections of the Factory according to approved plans.

b) Coordinate with related units under the State Bank to carry out supervision, inspection, and audit work for the Factory in accordance with regulations of the State Bank and other relevant laws.

c) Conduct unscheduled inspections of the Factory in accordance with Point c and đ Clause 1, Article 6 of this Circular.

d) Evaluate the results of supervision, inspection, and audit conducted by related units under the State Bank for the Factory in accordance with assigned functions and tasks.

đ) Provide information, documents, and inspection results to related units when requested.

e) Compile and report annually on the inspection results of the Factory by related units to the Governor.

2. Financial and Accounting Department

a) Carry out supervision of the Factory in accordance with Point a, Clause 1, Article 5 of this Circular.

b) Conduct inspections of the Factory according to approved inspection plans that have been approved by the Governor.

c) Conduct unscheduled inspections of the Factory in accordance with Points a and e, Clause 1, Article 6 of this Circular.

d) Provide information, documents, and supervision and inspection results to related units when requested.

đ) Develop supervision and inspection plans and report annually on inspection results of the Factory to the Internal Audit Department.

e) Lead in coordinating with related units to regularly prepare semi-annual and annual reports on Factory supervision in accordance with Clause 3, Article 5 of this Circular.

3. The Issuance and Treasury Department

a) Carry out supervision of the Factory in accordance with Point b, Clause 1, Article 5 of this Circular.

b) Conduct inspections of the Factory according to approved inspection plans that have been approved by the Governor.

c) Conduct unscheduled inspections of the Factory in accordance with Point b, Clause 1, Article 6 of this Circular.

d) Send to the Internal Audit Department documents from the State Bank regarding printing, minting, and gold coin production tasks, such as decisions on printing and minting, printing and minting contracts, and gold coin production contracts and other related documents when requested.

đ) Provide information, documents, and supervision and inspection results to related units when requested.

e) Develop supervision and inspection plans and report annually on inspection results of the Factory to the Internal Audit Department.

g) Send to the Financial Accounting Department reports on Factory supervision in accordance with Clause 3, Article 5 of this Circular.

4. The Organization and Cadre Affairs Department

a) Carry out supervision of the Factory in accordance with Point c, Clause 1, Article 5 of this Circular.

b) Conduct inspections of the Factory according to approved inspection plans that have been approved by the Governor.

c) Conduct unscheduled inspections of the Factory in accordance with Point d, Clause 1, Article 6 of this Circular.

d) Provide information, documents, and supervision and inspection results to related units when requested.

đ) Develop supervision and inspection plans and report annually on inspection results of the Factory to the Internal Audit Department.

e) Send to the Financial Accounting Department reports on Factory supervision in accordance with Clause 3, Article 5 of this Circular.

5. The Banking Inspection and Supervision Agency

a) Construct audit plans for the Factory, submit them to the Internal Audit Department for the Governor's approval, and organize audits of the Factory in accordance with Article 7 of this Circular.

b) Coordinate with related units under the State Bank to carry out supervision, inspection, and audit work for the Factory in accordance with regulations of the State Bank and other relevant laws.

c) Provide information, documents, and audit conclusions to related units when requested.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Effective Date

1. This Circular takes effect from October 24, 2016.

2. From the date this Circular takes effect, the following documents shall cease to be effective:

a) Joint Circular No. 51/1999/TTLT/BTC-BCA-NHNN dated May 7, 1999, issued by the Ministry of Finance, the Ministry of Public Security, and the State Bank on guidelines for the content and procedures of supervising printing and minting at factories.

b) Decision No. 21/2006/QĐ-NHNN dated May 16, 2006, issued by the Governor of the State Bank promulgating the Inspection and Supervision Regulations of the State Bank for the printing and minting activities of Vietnamese currency at the National Note Printing Factory.

c) Decision No. 36/2007/QĐ-NHNN dated August 10, 2007, issued by the Governor of the State Bank amending the Inspection and Supervision Regulations of the State Bank for the printing and minting activities of Vietnamese currency at the Factory promulgated by Decision No. 21/2006/QĐ-NHNN dated May 16, 2006.

Article 12. Implementation Organization

The Director of the Office, Heads of the Organization and Cadre Affairs Department, the Internal Audit Department, the Financial Accounting Department, the Issuance and Treasury Department, the Head of the Banking Inspection and Supervision Agency, and Heads of related units under the State Bank; the National Note Printing Factory are responsible for organizing the implementation of this Circular./.