The promulgation of the Performance Measurement Framework for Supreme Audit Institutions (SAI PMF) is the basis for the State Audit Office of Viet Nam (SAV) to self-assess its performance according to international standards and good practices. Simultaneously, the evaluation results will be used by the SAV for strategic planning, capacity development, performance monitoring and increased accountability.
SAI PMF is a tool used to measure, monitor, manage, and report qualitatively and quantitatively for the entire operation of the Supreme Audit Institution (SAI) regardless of the organizational model and/or at any level of development. SAI PMF provides an overview of key areas of the audit institution's operations, including internal processes and corresponding outputs.
The State Audit Office of Viet Nam has piloted the application of SAI PMF
According to the research carried out by Mr. Nguyen Viet Hung - Deputy Director of the International Cooperation Department, and Mr. Nguyen Anh Phuong from the Institute of Auditing and Training of SAV, SAI PMF consists of 02 main components: Guidelines for developing performance reports (the final product of the audit, including a detailed narrative analysis of audit’s findings); A set of 25 indicators to measure SAI's performance in the following 6 areas: Independence and legal framework (A), Internal governance and professional ethics (B), Quality and audit reporting (C), Financial Management, Assets and Support Services (D), Human Resources and Training (E), Communication and Stakeholder Management (F).
SAI PMF has received positive responses and is widely applied by SAI members of the International Organization of Supreme Audit Institutions (INTOSAI) since its pilot version was issued. To date, 77 evaluations are concluded, 40 are ongoing, and 15 reports have been publicly released. Some SAIs conducted evaluation 2 or more times s: SAI Indonesia (in 2019, 2020, 2021); SAI Bhutan (in 2015 and 2021); SAI Costa Rica (in 2014 and 2019), etc.
In 2016, SAV first piloted the evaluation according to SAI PMF (combining self-assessment with international experts on methods). Accordingly, the SAV applied 22 indicators suitable to its own characteristics and assessed in all 6 areas according to the INTOSAI Framework of Professional Pronouncements (IFPP). Initial results have shown that the SAV is currently performing all 03 contents of financial, performance audit and compliance audits. However, the deadline for report issuance mostly does not comply with regulations and the issued Annual Report's contents were not in accordance with international practices.
The independence and legal framework of SAV are consistent with the Lima Declaration. However, in fact, Viet Nam has no specific regulations against interference with the independence of SAV. Access to the audited entity's database and information for the audit is still limited. Regarding communication work and stakeholder management, awareness of the legal status and role of SAV and the Auditor General is not yet sufficient, even in central agencies and among senior leaders.
Indicators on: The organization’s development strategy, auditing standards and methods, management and supporting apparatus, internal control apparatus, human resources and training implemented by the SAV are relatively synchronous and in line with INTOSAI standards. In particular, SAV has issued a system of SAV’s standards based on ISSAIs. Audit quality control is carried out at 5 levels, from the auditor, the audit team, the audit group, the head of the unit in charge of the audit to the Auditor General. SAV also promulgates many regulations to manage training activities and the activities of staff training, fostering and evaluating work results, etc.
The development of a periodic evaluation framework to ensure objectivity and accuracy
Mr. Nguyen Viet Hung and Mr. Nguyen Anh Phuong said that in order to fulfill the objectives in the Implementation Plan of SAV’s Development Strategy to 2030, SAV should develop a quality assessment process to ensure objectivity, accuracy, reliability, and appropriateness with international standards as well as Viet Nam’s institutional mechanism and laws and SAV’s operating environment. This is a tool to help position SAV in the regional and international public audit community.
Accordingly, studying and inheriting research results of INTOSAI and other SAIs’, SAV can carry out research, supplement and issue the SAI PMF including 22 indicators, evaluating activities in 6 areas, particularly the area of independence and the legal framework including the indicator of SAV’s Independence and Functions. The area of internal governance and professional ethics includes 5 indicators: Strategic planning cycle, Controlling environment at the SAV, Outsourced audits, Leadership and internal communication, and Overall audit planning.
The area of the audit report and quality has the following indicators: Audit scope, Financial audit quality management and standards, Financial audit process, Financial audit results, Standards and quality management of performance audit, Performance audit process, Performance audit results, Standards and quality management of compliance audit, Compliance audit process, Compliance audit results
The area of Financial Management, Assets and Support Services will evaluate the Financial Management, Assets and Support Services indicators. The area of human resources and training includes the following 02 indicators: Human resource management and Professional training and development. The area of information communication and stakeholders management will evaluate the following indicators: Communication to the legislature, law enforcement and judiciary and Communication to the press, citizens and civil society organizations.
Year by year, INTOSAI continues to edit and supplement SAI PMF. Therefore, SAV needs to regularly update the contents according to INTOSAI to complete the Performance Evaluation Framework. In addition to training staff and guiding the application of the Framework across the workplace, SAV should issue mechanisms and policies to apply mandatorily, with an assessment every 5 years (in line with the tenure of the Auditor General) or according to the cycle of developing SAV’s medium-term development plans/strategies.
SAI PMF was developed by the INTOSAI Working Group on the Values and Benefits of SAIs (WGVBS) according to the decision made in the 2010 INTOSAI Congress. The pilot version was issued in July 2013 by the INTOSAI and the official version was approved at the XXII Congress in October 2016. The 2021 version was updated and supplemented by WGVBS in November 2021 after INTOSAI officially issued the INTOSAI Framework of Professional Pronouncements (IFPP).