Northern Mountainous Provinces Poverty Reduction Project Management: Regulations on Accounting and Auditing

Poverty Reduction Project for Northern Mountainous Provinces: Regulations on accounting, auditing (Illustrative photo)

Clause 1 and Clause 2 of Article 11 Circular 123/2010/TT-BTC stipulate the accounting and auditing of expenditures as follows:

- Accounting: Project Management Units (PMUs) at all levels are responsible for fully and promptly reflecting expenditures on vouchers, accounting books in conformity with the Law on State Budget, accounting standards, and existing state accounting policies as well as the regulations of the sponsor.

- Auditing financial statements:

+ Independent Auditing:

- Annually, the Project Accounts of the Central Coordination Unit, Provincial PMU, District PMU, Community Development Boards, accounting books, vouchers, and project files must be audited by an independent auditing firm in accordance with current law.- The selection of the auditing firm shall follow the method of consulting service bidding as per the sponsor’s bidding regulations. The Ministry of Planning and Investment directs the Central Coordination Unit to sign an auditing contract to conduct independent annual audits for the entire project.- The financial statements audited by an independent auditor must be sent to the Ministry of Finance, Ministry of Planning and Investment, State Bank of Vietnam, Provincial People’s Committees, and the World Bank within 6 months after the end of the fiscal year.

+ Internal Auditing:

- Internal auditing at the central level will be conducted by the Inspectorate of the Ministry of Planning and Investment, at the provincial and district levels by the Departments of Planning and Investment of the provinces, and at the commune level by the Finance and Planning Divisions of the districts on an annual cycle. Detailed procedures for internal auditing are stipulated in the Project Implementation Manual.- Internal audit reports must be sent to the World Bank within 6 months after the end of the fiscal year.

For more details, refer to: Circular 123/2010/TT-BTC, effective from October 3, 2010.

Nguyen Phu

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