The State Audit Office’s signing of a cooperation agreement with four provinces, ...in the Central Region—comprising Nghe An, Ha Tinh, Quang Tri, and the city of Hue—marks an important step forward in public financial management. The event, held on July 5, 2026, in Quang Tri, was not merely a formal signing ceremony but also a political commitment by the entire system to ensure budget transparency and compliance with the current State Audit Law.
From the perspective of an expert who has been involved in the auditing and accounting industry for three decades, I believe this is an inevitable trend for the 2026–2027 period. As local governments face pressure to disburse public investment funds and meet stringent accountability requirements, support from the State Audit Office (SAO) has become an essential resource for enhancing the effectiveness of local budget management and proactively mitigating potential financial risks.
Key Points on the State Audit Office Signing a Cooperation Agreement with Four Provinces
The State Audit Office signed a cooperation agreement with four provinces as part of a multilateral partnership aimed at enhancing transparency in the management of budgets, finances, and public assets. This document establishes close coordination between the State Audit Office (SAO) and the Standing Committees of the Provincial and Municipal Party Committees, the Standing Committees of the People’s Councils, and the People’s Committees of the respective localities.
The core objective is to address shortcomings in local governance and enhance the effectiveness of audits and accountability. The scope of application covers state administrative agencies in Nghe An, Ha Tinh, Quang Tri, and the city of Hue. This is a legal tool designed to harmonize budget management processes for the 2026–2027 period.
Background and Details of the Signing Ceremony in Quang Tri
On the morning of July 5, 2026, in Quang Tri Province, the State Audit Office solemnly held a mid-term review conference and signed a regulation on cooperation with four localities. The event was attended by high-ranking officials, underscoring the importance of strengthening financial discipline.
The conference was honored to welcome the following key leaders:
- At the local level: Nguyen Khac Than—Member of the Party Central Committee, Provincial Party Secretary, and Head of the Nghe An Provincial Delegation to the National Assembly; Nguyen Duy Lam—Member of the Party Central Committee, Provincial Party Secretary, and Head of the Ha Tinh Provincial Delegation to the National Assembly; Nguyen Khac Toan – Member of the Party Central Committee, Deputy Party Secretary of Hue City, and Chairman of the Hue City People’s Committee; Le Hong Vinh – Deputy Provincial Party Secretary and Chairman of the Quang Tri Provincial People’s Committee.
- On behalf of the State Audit Office: Comrade Nguyen Huu Nghia—Member of the Party Central Committee, Member of the Standing Committee of the National Assembly Party Committee, Secretary of the Party Committee, and Auditor General—along with the Deputy Auditors General and leaders of subordinate units.
The presence of the provincial and municipal Party Committee Secretaries demonstrates that this regulation is not merely an administrative document between two agencies, but a political commitment at the highest level. This lends greater weight to audit recommendations and helps prevent the “talking the talk but not walking the walk” situation that has occurred in some localities in the past.
Definition and Legal Basis of the Coordination Regulations
In modern auditing, cooperation agreements are not merely administrative documents but important legal tools for coordinating among the parties involved. The State Audit Office’s signing of cooperation agreements with four provinces is based on the provisions of the 2015 State Audit Law and the 2019 amendments and supplements thereto.
Legal Basis for Coordinated Activities
Under the State Audit Law, the State Audit Office (SAO) is responsible for coordinating with Party agencies, elected bodies, and state administrative agencies to carry out its duties. These regulations specify the provisions regarding the provision of information, technical assistance, and monitoring of the implementation of audit recommendations. This signing took place against the backdrop of increasingly stringent regulations on public financial management, in accordance with the Government’s latest decrees on local budget management.
Why are coordination regulations needed at the local level?
Practice in public financial management shows that, without coordination between the audit agency and the supervising authority, errors often persist across multiple fiscal years. Signing a cooperation agreement helps bridge this gap. The involvement of the Standing Committees of the Provincial and Municipal Party Committees ensures that the State Audit Office’s recommendations are vigorously implemented, rather than merely remaining in administrative reports. According to experts at MAN—Master Accountant Network—intervention by the Party committees serves as the final safeguard to ensure the strict enforcement of the law.
Key Provisions of the Latest Coordination Regulations
Many industry experts have praised the innovations in this set of regulations. Instead of the previous provisions, the scope of coordination has been expanded to include 10 key areas, comprehensively covering all aspects of financial management.
10 Key Areas of Cooperation
These measures include audit planning, the sharing of financial data, tracking the implementation of recommendations, training local officials in financial management, and cooperation in anti-corruption efforts. The most significant development is the direct involvement of local Party committees. This creates a robust internal control mechanism, enabling potential budgetary irregularities to be identified earlier.
Responsibilities of the parties involved
The regulations clearly define the roles of the four parties:
- SAI: Provides expert information, issues risk alerts, and offers technical audit support.
- Standing Committees of Provincial and Municipal Party Committees: Direct the relevant agencies to strictly implement the recommendations and address any violations, if any.
- Standing Committee of the People's Council: Oversee the use of the budget following an audit to ensure it is used for its intended purposes.
- People's Committees at all levels: Directly address shortcomings, manage finances, and provide explanations regarding budgetary matters.
The Impact of Regulations on Local Financial Management
The State Audit Office’s signing of cooperation agreements with four provinces has brought about fundamental changes in how the state budget is managed in these localities.
Enhancing Accountability
In the past, many local agencies regarded the implementation of audit recommendations as a secondary task. Under the new regulations, with oversight from the Party Committee and the People’s Council, accountability has become mandatory. This compels budget-using agencies to adhere more strictly to financial discipline.
Improving the Effectiveness of Public Asset Management
Public assets, including land, office buildings, and infrastructure, are often a flashpoint in audit. Close coordination helps local authorities review these resources more effectively, thereby preventing losses and waste. According to MAN—the Master Accountant Network—local authorities that coordinate effectively will significantly reduce discrepancies in their annual budget settlements.
Corporate Tax and Financial Risks from an Expert's Perspective
Although this regulation is aimed at administrative agencies, its indirect impact on businesses and public-private partnership projects is significant. Experts at MAN, with 30 years of experience, note that as local budget management becomes more transparent, project payment and settlement procedures will also be standardized.
Common Business Risks
Businesses involved in budget-funded projects often face risks if procedural processes are delayed following an audit. Errors in invoices, supporting documents, or cost standards are often identified by the State Audit Office (SAO). When local authorities and the SAO work closely together, these control standards will be enforced more strictly right from the outset.
The optimal solution from MAN – Master Accountant Network
Experts at MAN always recommend that partner organizations do the following:
- Conduct periodic reviews of financial records in accordance with Vietnamese accounting standards.
- Establish an internal control system that complies with the latest auditing regulations.
- Train the accounting staff to thoroughly understand public expenditure regulations in order to avoid unnecessary violations.
Social Welfare Activities: Humanistic Values on the Sidelines of the Conference
One highlight worth mentioning is that social welfare initiatives were carried out right at the event. The State Audit Office does not just focus on numbers; it also emphasizes social responsibility.
- Awards and Recognitions: During the conference, SAO leaders presented 20 “For the Cause of State Audit” Commemorative Medals to provincial and municipal leaders, as well as heads of departments and agencies from the four localities. This is a well-deserved recognition of the localities’ contributions in facilitating the effective operation of audit teams.
- Presenting a Charity House: In addition, 40 families who have contributed to the revolution and families facing particularly difficult circumstances in four localities received “House of Gratitude” plaques. This is a meaningful initiative that demonstrates the auditing sector’s understanding of the lives of people in the areas under audit. According to experts at MAN – Master Accountant Network, it is precisely these actions that strengthen the people’s trust in state administrative agencies.
Comparison Chart of Traditional and Modern Work Methods
The signing of the cooperation regulations not only changes the way agencies work together but also improves the effectiveness of budget management and the implementation of post-audit recommendations. The table below compares the notable differences between the approaches to cooperation before and after the regulations were implemented.
| Criteria | Before signing the regulations | After signing the regulations |
| Share Information | Individual, in batches | Regularly, periodically |
| Implementing the Recommendation | Lack of supervision | Under the supervision of the Party Committee |
| Budgetary Impact | Delays, prolongation | Fast, efficient |
| The Role of Party Organs | Not yet clear | Resolute, direct leadership |
Conclude
The State Audit Office’s signing of cooperation agreements with four provinces is a strategic move that reshapes financial management practices in these localities. Transparency and efficiency in the use of public assets not only help save budget funds but also create a healthy business environment that attracts investment.
At MAN – Master Accountant Network, we believe that understanding and adapting to new auditing standards is the key to success for every organization. With over 30 years of experience in auditing, accounting, and tax consulting, we are always ready to partner with businesses and regulatory agencies to build a robust financial management system.
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Responsible for production and professional content review by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, taxation, and corporate financial consulting.
FAQ: Frequently Asked Questions About the State Audit Office Signing a Cooperation Agreement with Four Central Provinces
Do these regulations require businesses to change the way they operate?
The regulations primarily apply to state administrative agencies. However, businesses that work with these agencies need to prepare more transparent documentation, as auditing standards will be applied more strictly at the local level.
What are the benefits of the Provincial Party Committee Standing Committee’s involvement?
This ensures that the SAO’s recommendations are not overlooked and are incorporated into the Party committee’s work plan, thereby enhancing the implementation and effectiveness of the audit findings.
Do these regulations affect projects currently underway?
If the project complies with the law, these regulations serve as a safeguard, helping businesses and management units identify risks early on and avoid major mistakes down the line.
What should businesses do to stay ahead of these changes?
Contact a team of experts such as MAN—Master Accountant Network—for advice on reviewing tax and financial risks in accordance with the latest standards to ensure maximum compliance.
How can I find out if my locality is part of this coordination group?
The information is publicly available on the State Audit Office’s website and those of local authorities. Currently, this initiative is focused on Nghe An, Ha Tinh, Quang Tri, and the city of Hue.
