public to invest in this policy; The Mass Rapid Transit (BRT) Component Project of the Hanoi Urban Transport Development Project forms public assets which are the bus system and benefits from utility services belonging to group [3] "Public assets at enterprises"; The Vietnam Environmental Protection Fund, the Credit Guarantee Fund for Small and Medium Enterprises in Ho Chi Minh City form public assets which are non-state budget funds belonging to group [6] "State budget money, non-state financial funds and state foreign exchange reserves"; The management and use of agricultural land in 2015 in My Tho city, Tien Giang province, the Program for providing public telecommunications services until 2020 forms public assets which are agricultural land, telecommunications numbering warehouses belonging to group [7] "Land; water resources, resources, telecommunications numbering and other numbering serving state management",... In addition, to evaluate the effectiveness and efficiency in public asset management through KTHD, the author of the thesis continues to evaluate the management status of a number of other programs and projects that form groups of public assets in Appendix No. 01 such as:
First: Social housing program (Audit report 2014-2019). This is a type of public asset formed in group [2], which is an infrastructure asset serving public interests and can also be considered an asset in group [5], which is an asset whose ownership is established by the entire people after social housing is sold to low-income people with the State's policy of supporting loans.
The assessment results in Table 3.5 show that the role of the State Audit in controlling the social housing program has helped the National Assembly, the Government and all levels of State management to rectify violations in the management of public assets formed and put into use with the following issues: Well implementing the goal of developing social housing by 2015 (2011-2015 period) to ensure that planning and demand planning are carefully determined before the program is put into operation, construction works accelerate progress according to the handover segment to ensure volume, exploit to create profits for investors when transferring from ineffective projects, strengthen the priority mechanism of Hanoi city to suit home buyers, ensure good inspection, supervision and management mechanisms of State agencies with sufficient procedures, comply with regulations on environmental safety, fire prevention and fighting, selling prices are determined to suit the needs and incomes of low-income people, avoid housing speculation society,… Specifically: Audit report of social housing program in Hanoi City in the period of 2014-2015, Ho Chi Minh City and Da Nang in 2015; Social housing program in Dong Nai province and some districts of Hanoi City in 2018; Social housing program in 2019 in Long Bien District, Thanh Tri District, Dong Anh District of Hanoi City in the period of 2015-2018 (Audit report in 2015-2019).
Second: The results of the 2018 State Audit for a number of other programs show that the State Audit's role has performed well in controlling and managing public assets, in addition to
Regarding the social housing program, the State Audit Office pointed out that the implementation efficiency of some audited programs and projects is still low, such as: The program for providing public telecommunications services has only achieved 11.47% of output, disbursement only reached 6.26%, potentially making it difficult to achieve the target, the management and use of public assets have not ensured efficiency and effectiveness, the operating results are not commensurate with the resources used for the management apparatus, the Fund's revenue from public assets in group [6] still has some shortcomings and inadequacies, specifically: Proposing to request the Fund to return the charter capital of 500 billion VND (forming public assets) in accordance with the Prime Minister's direction on allowing the transfer of charter capital to implement Program 1168; advise the Prime Minister to decide to collect VND 1,000 billion in the State budget fund (public assets) from contributions of telecommunications enterprises under Program 1168 in accordance with the purpose of using the Fund as prescribed in the Telecommunications Law and regulations on beneficiaries of the Program (Audit Report 2018, p.42). The above results help state management levels to rectify violations in the management and use of national public funds and public services belonging to groups of national public assets.
From Table 3.5, the author of the thesis synthesizes the value of public resources invested in social housing and health care development programs to form public assets belonging to the following [7] groups of national public assets:
Table 3.6: Investment value of social housing and health care programs forming public assets
Public finance
Object invest | Violation | Public property formation | Belong to the national public asset group | |||
Value (x) (Billion VND) | Programme | Value (b) (Billion VND) | Value (y) (Billion VND) | Name, type of asset | Group | Asset Type |
∞ | Health development policy in Hanoi. | 0 | ∞ | Medical equipment; medicine; service medical examination and treatment,... | [1] | Public assets at agencies, organizations, and units (Serving management activities, providing public services,...). |
≥12,948 | Social housing program in Ho Chi Minh City, Hanoi, Da Nang and Dong Nai. | 211 | ≥12,737 | Social housing system; utility services; profits and reinvestment funds private,... | [2] and [5] | Infrastructure assets serving national and public interests are technical infrastructure works and social infrastructure works; assets established public ownership,... |
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Source: Audit report for the period 2014 - 2019
This shows that, by 2018 (2014+4), the same social housing and health care development programs and policies in the same area of Hanoi city were not re-audited (continuously audited) in the years (o+n). Therefore, these
The violations in public asset management activities that the entities implementing the audit have pointed out have been corrected, the continued recurrence in years (o+n) has been controlled and reported to the National Assembly and the Government. The role of the State Audit has only been shown in the post-audit stage for public assets but has ignored the pre-audit stage of the investment phase to form public assets, when the results of the operation process form many potential risks, the State Audit has shown its role of treatment rather than prevention . The main reason is that the standard of operation in the audit activity has not been promoted, auditors perceive the type of audit activity with the pre-audit method as not true to the nature of the audit activity, the income of the audit department is not commensurate with the labor productivity; the legality in the implementation of legal documents is still limited, the administrative reform environment has not adapted to the 4.0 industrial revolution, ...
3.2.2 Performance audit model and development in State Audit activities
3.2.2.1 Development of performance auditing
From 1994 to 2003, the State Audit of Vietnam was established and developed. At that time, the State Audit operated according to the functions prescribed in Decree No. 70/CP dated July 11, 1994 of the Government. It was not until 2003 that Decree No. 93/2003/ND-CP dated August 13, 2003 of the Government clearly defined the functions of the State Audit as compliance auditing and financial statement auditing. The results achieved at that time were not high, the auditing force was still thin, the State Audit had to gradually consolidate and increase human resources, capacity, material resources, and operating standards. From 2004 to 2006, at that time the State Audit was still under the Government, and its functions were regulated in conjunction with the type of operational auditing. At that time, operational auditing was applied in the form of specialized auditing, which was the assessment of compliance in human resource management; The results achieved were relatively clear with a staff of nearly 1,000 auditors, the apparatus had 5 regions and 3 specialties. The tasks of the State Audit at that time focused on financial audits, compliance audits and thematic audits. In the period from 2007 to 2013, with the set goals, the strategy for developing the role of the State Audit for the period 2013-2017 was born, the type of action audit received more attention and was piloted for programs and projects with long and complex life cycles. The strategic plan clearly stated "Enhancing the value and benefits in assessing the economy, effectiveness and efficiency in the management and use of the budget, money and public assets". The results of action audit were to achieve beneficial values through piloting action audits in the world and lessons learned for Vietnam. International standard KTHĐ training for elite staff in Canada, Australia, India, Germany,...
In the world, KTHĐ was developed very early in the 1960s, concentrated in countries such as Canada, Australia, etc. In Vietnam, it was not until 2014 that KTHĐ was developed.
develop and apply the organization to conduct independent audits without integrating them into the pilot as in previous years when conducting specialized audits. In 2014, the State Audit Office established an audit department under the General Department with 17 people, including 01 main auditor, 08 auditors, 08 reserve auditors, of which: 14 are masters; 05 auditors graduated from a 10-month training course on audits in Canada. The audit team at that time was very proficient in foreign languages, and learned from experience thanks to the help of CCAF experts from the Canadian Comprehensive Audit Fund.
Currently, the process and standards of the State Audit have been completed, the system of standards related to performance auditing such as: State Audit Standard No. 100 - Basic principles in the State Audit's performance auditing activities; State Audit Standard No. 300 - Basic principles of performance auditing; International Audit Standard ISSAI 3000 of INTOSAI - Performance auditing standards; International Audit Standard ISSAI 3100 of INTOSAI - Guidelines for basic concepts in performance auditing; International Audit Standard ISSAI 3200 of INTOSAI - Guidelines for performance auditing processes. The system of performance auditing standards of the State Audit has changed significantly in accordance with international practices, however, in our country, we still have to comply with international standards that have been localized, and the standard numbers are still based on the international standard numbers. The type of economic audit that the State Audit is developing faces many difficulties compared to other countries in the region, as well as simultaneously promoting the role of economic audit and the role of state audit. Currently, the State Audit always pays attention to implementing economic audit for large-scale programs, projects or investment policies for socio-economic development with long life cycles, but the State Audit has not yet effectively implemented the pre-audit method like some SAIs in the world for the construction phase, deciding on estimates, establishing investment policies, planning, and operational plans, as well as the current audit method which is the audit process during the policy implementation, bidding organization, and project construction stages. Therefore, the development of the economic audit type in Vietnam still has many limitations.
3.2.2.2 Applying the performance audit model to enhance the role of State Audit
The author of the thesis applies the theoretical model of Table 2.1 to the social housing program, which is even more clearly demonstrated and has a further meaning than the health development policy combined with the Logic model to analyze the management and use of public finance to invest in and build social housing and form public assets transferred to low-income people to borrow capital for investment and use. Applying the above model to the two social housing programs and health development policies over the years shows that the State Audit needs to further strengthen the audit of the implementation stage of the method of pre-auditing the first year (o) of project initiation, current audit of the following years (o+n) of project operation and formation, and post-audit of the years in the long term to evaluate the effectiveness, efficiency and efficiency in the management and use of public finance and assets. Applied model:
Table 3.7: 3Es relationship model in financial management, public assets for health and social housing programs
Economic
Entry criteria
≥ 12,948 billion ( Xo)
Efficiency Output criteria ≥ 12,737 billion ( Y o+n ) | Validity | Performance | ||
Recommendation results 211 billion ( b) | ||||
Public finance (Resources) | Object (Invest) | Public property (Formation) | Consulting, management | |
(1) Saving mobilized capital, equity capital, loans, hospital fees, budget, extra-budgetary funds. (2) Use land for legal and reasonable investment and construction. (3) Save costs on public opinion surveys, planning information, policy satisfaction; reduce costs on copyright, technology, bidding and auction consultancy... (4) Save costs on planning, site clearance compensation, import procedures, customs, banking, labor wages, transportation... | (1) Social housing program and health care development policy with effective and quality investment. (2) Reporting system and investment policy are complied with. (3) Effective internal control system; construction organization, bidding, auction execution... (4) Bill of lading, customs clearance documents, import and export documents, valid drug and equipment purchase records; legal auction and bidding procedures... | (1) Social housing system is formed by division section; certificate of legal use... (2) Medical equipment system, medicine, satisfaction with quality of examination and treatment... (3) Technology, management methods, utility service systems ensure quality... (4) Revenue, tax, reinvestment fund management efficiency... | (1) Objective: Urban beautification; policy resolution for low-income people; improvement of quality of medical examination and treatment. (2) Impact: Reduced housing costs, medical expenses , satisfaction and enjoyment of participating in the program. program, policy and replication. (3) Effective: Management system, exploitation of medical services and social housing, anti-loss, corruption, harassment... | (1) Strategy: Replicate social housing models and health programs to other places; link and cooperate in an internationally effective implementation manner. (2) Regulations on operation and management of the project management board, hospital regulations, regulations of the Government, Ministries, branches, localities... (3) Government, Ministry of Finance, Ministry of Construction, Ministry of Health, People's Committee, Bank, Department of Construction, Department of Health... |
Source: Author's synthesis
The above model ensures that, in order to enhance the role of the State Audit effectively, it is necessary to build and apply a system of input and output criteria for investment resources to evaluate the economic, efficiency, and effectiveness of the use of public assets and management performance, helping to consult on long-term strategies to overcome limitations in the organization of State Audit and in the management of public assets. Referring to Tables 3.5 and 3.6 and the above results for the social housing program, it shows that the initial investment of input resources is at least 12,948 billion VND, the final public financial value is also the value of the initial public assets formed with a total value of at least 12,737 billion VND, the result of the management and use of resources to build the social housing system was pointed out by the State Audit with a violation of 211 billion VND, this is a representative result for the State Audit to perform the role of making recommendations and consulting on management. For the health development program, the State Audit only consults on policy adjustments.
Result b:
(Goal, strategy)
Purpose: Minimize medical examination and treatment costs,
maximum benefit
Economic
Input: Investment policy, operating license
dynamic
Activities: Planning, bidding, purchasing,
experiment
( Check, monitor savings, minimize resources)
Effectiveness ( Control, Consulting, Correction, Performance)
Impact
Result
Legal system: Bidding law, operating practices, hospital management regulations...
Xo cost factors :
Hospital fees , loans, investment mobilization...
Output Y (o+n): Equipment, materials, drugs...
Post-control: Control, main consultation
book of exploitation, management, collection and use
Long-term health care services (2014+n)
Pre-audit : Check, monitor compliance, prevent short-term resource waste risks (2014)
To clarify the meaning of the audit model in practice, the Author of the Thesis uses the theoretical model Diagram 2.1 specifically applied to the field of health development:
Efficiency
( Monitor and control maximum productivity)
Current inspection: Monitoring, controlling, adjusting and timely adjusting the medium-term health development policy | ||
Diagram 3.1: Implementing goals and methods of KTHĐ in health management
Source: Author's synthesis
Through the current status of KTHĐ reflected in Table 3.5 and the audit criteria formed in Model 3.7 to analyze and evaluate the objectives and methods of implementing KTHĐ to overcome limitations and future orientations according to Model 3.1 above:
Firstly, implementing the goal of improving the role of State Audit in management work in medical facilities
The meaning of Model 3.1 shows that when implementing the project, the auditors cannot combine the audit criteria to evaluate the economy, efficiency and effectiveness of the program, which will affect the role of the State Audit in implementing the project's objectives as follows: (1) The cost of medical examination and treatment is not controlled and adjusted right from the first year (o) policy planning of state management agencies, causing difficulties for people when having to pay an unwanted hospital fee, affecting the economy ; (2) the operation of medical facilities is ineffective, the quality of medical examination and treatment is not high, the facilities and equipment are outdated, the operating environment does not ensure hygiene and safety, affecting the health and spirit of patients,... the effectiveness is not achieved for the project's objectives; (3) Medical facilities that are licensed to operate in violation of regulations, causing consequences in the long term (o+n) and subsequent years for medical examination and treatment activities, lack of control over compliance with taxes paid to the budget by medical facilities, non-compliance with current laws on management and handling of administrative violations, recidivism, etc., are not ensuring the effectiveness of the KTHĐ goal (Audit report, 2016).
The role of the State Audit has helped all levels of State management realize that medical facilities are being decentralized to directly manage all financial revenue sources and public service resources assigned by the State. The decentralized units use public financial resources to purchase and invest in medical examination and treatment activities, but the efficiency is not high, wasteful, causing financial loss, public assets and great damage to the medical sector. This is an input management process that is assessed as ineffective, wasteful, making it impossible to achieve the goal of economic savings, and the State Audit subject needs to organize a pre-inspection in the early stages of operation in year (o). The issue of concern is the impact of CSPL (Legality, effectiveness) in the management of operating licenses and procurement bidding, management of product quality standards, goods circulating on the market and ineffective use; in addition, in the system of controlling low operating standards, potential risks are at a high level. The effectiveness has not yet ensured the goal of KTHĐ regarding management work during the operation to the output of the program and project in the following years (o+n). Therefore, with the current role and responsibilities of the State Audit, it is necessary to pay attention to organizing the current audit during the operation for the input transition to the output that has meaning in the financial management activities that form public assets (State Audit, 2003).
From the above model, the State Audit can make recommendations: To effectively manage outputs, effectively use public finance and assets and improve the quality of public services in the health sector at health facilities, there must be close coordination between levels, sectors and the State government. In particular, the State Audit together with sectors, levels and health agencies must have an effective, synchronous and consistent control role throughout the implementation process, in which the licensing process and the organization of procurement bidding, quality management of drugs, assets and medical equipment in medical examination and treatment activities are the focus for effective public audit. Therefore, implementing public audit will demonstrate the comprehensive role of the State Audit in the process of financial management, improving professional activities by sector, field and management control.
Second, implementing the method of organizing the State Audit to enhance the role of the State Audit in the health program.
First, pre-audit method: In the short term, controlling the investment licensing policy and implementing the 2013 bidding law, No. 43/2013/QH13 dated November 26, 2013, the auditors participating in the audit conducted a survey of the operating model of each medical facility associated with the functions, tasks and operational efficiency from many years ago (o) when the pre-audit had not been conducted for the current year and the following years (o+n). From the actual impacts in the following years (o+n), the State Audit has not yet demonstrated its overall control role because it did not conduct a re-audit for the previous budget year (o) with issues of medical equipment procurement that need to be monitored for operations, overall control, and audit of the management and use of hospital fees, which will miss many potential risks (IR), loss of public resources, and difficulty in achieving economic goals. The reason is that the capacity and understanding of internal control activities in the medical sector are still limited; the legal environment, administrative reform, application of information technology, artificial intelligence in medical examination and treatment are not modern and synchronous. Assessing the current situation through the above model has shown that, in order to enhance the role of the State Audit when organizing the implementation of the investment license, it is necessary to conduct pre-inspection right at the time of applying for investment licensing policy, organizing the bidding for drugs and medical equipment in the current year (o), purchasing for the following year (o+n) and demonstrating the role of a consultant and supporting control, correcting and promptly removing obstacles in the process of organizing bidding for the procurement and use of drugs and medical equipment to ensure the goal of the investment license; the State Audit also needs to further strengthen its role as a partner with the audit object in the short term, leading the guidance on changing the method of investment licensing, and strategic planning.
Second, the current inspection method: The current inspection method in the medium term (year o+n) for bidding, purchasing and using drugs and medical equipment must be applied by the entity organizing the audit right at the stage of organizing the bidding, selecting contractors, signing contracts to transition to the stage of purchasing, operating, testing, training for use in the medium term,... In reality, the State Audit has not yet demonstrated its role.