What are regulations on approving authority; agencies in charge of review of final accounts of public investment funds for projects upon completion in Vietnam?

What are regulations on approving authority; agencies in charge of review of final accounts of public investment funds for projects upon completion in Vietnam?

Pursuant to Clause 1 and 2, Article 35 of the Decree 99/2021/ND-CP stipulating approving authority; agencies in charge of review of final accounts of public investment funds for projects upon completion in Vietnam as follows: 

1. Authority to approve the final accounts of public investment funds for projects upon completion:

a) For projects of national significance and other important projects subject to the Prime Minister’s investment decisions:

In reference to projects or component projects, standalone sub-projects funded by the state budget, leadership of ministries, central authorities, state corporations, incorporations shall be accorded authority to approve the final accounts of funding for projects or component projects or standalone sub-projects entrusted to ministries, central authorities, state corporations or incorporations; the Presidents of provincial People’s Committees shall be accorded authority to approve the upon-completion final accounts of projects or component projects, standalone sub-projects under their jurisdiction; the Presidents of district-level People's Committees shall be accorded authority to approve the upon-completion final accounts of projects or component projects, standalone sub-projects under their jurisdiction.

In reference to component projects, standalone sub-projects that are not funded by the state budget: Investors shall be accorded authority to approve the final accounts of funding for projects upon completion.

b) For other projects: Persons having competence in making approval decisions for investment projects are persons having competence in approving the final accounts of funding for projects upon completion or authorizing approval of the final accounts of funding for projects upon completion.

2. Agencies in charge of reviewing the final accounts for public investment funds for projects upon completion:

a) Regarding projects funded by public investment funds of the local budgets under the management of the provincial People’s Committees: Departments of Finance shall be in charge of conducting review (unless otherwise decided by the Presidents of the provincial People’s Committees).

b) Regarding projects funded by public investment funds of the local budgets under the management of the district-level People’s Committees: Departments of Finance and Planning shall be in charge of conducting review (unless otherwise decided by the Presidents of the district-level People’s Committees).

c) Regarding projects funded by public investment funds of the local budgets under the management of the commune-level People’s Committees: Commune-level People’s Committees shall employ public professionals under their jurisdiction to review the upon-completion final accounts of projects. Where public professionals are not qualified for such review, the Presidents of commune-level People’s Committees shall request the Divisions of Finance and Planning at the district level in writing to review the final accounts.

d) For other projects: Persons having competence in approving the final accounts shall assign competent units under their jurisdiction to take charge of the pre-approval review of the final accounts.

Which entities have responsibilities to carry out audit of the final accounts in Vietnam?

Pursuant to Clause 3, Article 35 of the Decree 99/2021/ND-CP stipulating as follows: 

a) Once projects of national significance or category-A projects funded by public investment funds are completed, the final accounts must be audited before being submitted to authorities having competence in reviewing and approving the final accounts (except those on the list of state secret projects). For the remaining publicly-funded projects, persons having competence in issuing approval decisions on investment in projects shall consider deciding to hire the independent audit contractor to audit the final accounts.

Investors shall seek tenders for audit services in accordance with law on procurement and sign audit contracts in accordance with law on contracts.

Investors, independent audit contractors and concerned units shall comply with regulations laid down in point b and c of this clause.

b) Independent auditors must be independent audit enterprises that are established and operated under law on establishment and operation of enterprises in Vietnam, comply with regulatory provisions on independent audit and audit standards currently in force.

c) For projects audited or inspected by the State Audit or inspectorate:

Where the State Audit or inspectorate conducts audit, inspection and issues audit reports and inspection conclusions containing all subject matters prescribed in Article 37 herein, the agency in charge of reviewing the final accounts of the project shall use data of audit reports of the State Audit, audit conclusions of the inspectorate as a basis for review; shall not be obliged to hire the independent auditor to conduct audits.

Where the State Audit or the inspectorate has yet to perform all audit or inspection steps required under Article 37 herein, based on the regulations laid down in point a of clause 3 of this Article, investors shall determine the supplemented contents and scope of audit and select the independent audit contractors to conduct supplementary audits where necessary. Expenses for supplementary audit shall be determined in the same manner as expenses for hiring independent auditor stipulated in Article 46 herein. Agencies in charge of review of the final accounts can use audit reports of the State Audit or conclusions of the inspectorate and audit reports of the independent auditor as a basis for review of the final accounts.

Where the State Audit or the inspectorate has the project audit or inspection decision during the period of the independent audit contractor’s implementation of the audit contract, the independent audit contractor shall execute the audit contract in compliance with contractual terms and conditions.

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