The State Treasury has introduced many solutions to tighten risk management in operations, especially in spending control to effectively manage and use the State budget.

State Treasury officers at work.

Potential risks from online public services

From 2018, the State Treasury has launched online public services at level 4 nationwide for budget using units and investors who open accounts at State Treasury (excepts units in security and national defence sectors and professional organizations and associations).

An electronic transaction channel between the State Treasury and customers has been set up. All budget using units are connected online public services level 4 with the State Treasury. Transactions via the State Treasury have been faster, safer, more transparent and effective.

The State Treasury system will quickly provide many functions and utilities to facilitate State budget managers and users and move towards digitization in all activities of the State Treasury.

In addition to many outstanding advantages, the online public services of the State Treasury also face some potential risks such as: the user does not strictly manage his/her digital signature, reveals the login account and password; assigns people to participate in the online public service process in contravention of regulations, does not seriously observe the process of electronic transactions, leading to state budget losses at budget-using units.

Many cases of State budget and property losses from state budget-using and management units, such as entrustment, authorization of the use of digital certificates and signatures and passwords are not in accordance with the law in electronic transactions; assigning electronic security devices to their staff for a long time, creating loopholes for them to appropriate capital, causing state budget losses.

In response to the requirements of reform and modernization of the State Treasury system, the identification and overcoming of risks in the State Treasury's operations, especially the notification of account balances and processing status of documents and payment transactions for state budget using units in a timely fashion is necessary.

Raising awareness to prevent risk of losses

The State Treasury has continuously directed the whole sector to promote the application of "risk warnings" in state budget spending control to prevent risks in state budget fund management.

The State Treasury has required the units to perform their assigned tasks and responsibilities; requested cadres, civil servants and public employees who specialize in state budget accounting to comply with their rights and obligations and strictly follow procedures of accounting and budget spending from the State budget fund and raise awareness to prevent the risk of losing State money and property; predict potential risks to provide solutions.

The heads of treasury units are asked to regularly grasp the thoughts and circumstances of civil servants in their units, especially civil servants who directly contact customers to take appropriate management measures; absolutely not arrange civil servants who are unqualified and have signs of social evils to perform budget and financial management.

The State Treasury also has required the State Treasury units to strengthen their inspection and self-inspection to identify shortcomings and errors for timely solutions.

The State Treasury has also requested heads of state budget-using units to abide by Law 51/2005 of the National Assembly and Decree 165/2018 of the Government on electronic transactions in financial activities; strengthen the security of passwords, digital signatures and digital certificates used for transactions and payments via public services of the State Treasury; absolutely not hand over passwords, digital signatures, digital certificates to others to approve expenditures funded by the State budget.

Along with that, the heads of state budget using unit must pay attention to procedures and confirmation of the monthly account balance with the State Treasury agency; and report to the State Treasury on unreasonable content for specific consideration. The account holder using the state budget must take full responsibility for the information registered for transactions on the online public service system of the State Treasury. It is necessary to download the "risk warning" application of the State Treasury system to update the account balance of the unit at the State Treasury, and the status of processing of payment applications.

The State Treasury will continue to disseminate and encourage so that budget users and investors can install and use the risk warning application of the State Treasury; enhance information and regularly exchange with transaction units to capture the financial performance in order to promptly detect abnormalities and warning signs to prevent and cope with possible risks.

The State Treasury will also promote the integration of administrative procedures into the National Public Service Portal, improve the rate of early settlement of dossiers, contributing to strong administrative reform, and creating favorable conditions for budget users.