SNG PILLAR: INTERGOVERNMENTAL FISCAL RELATIONS
Scores by Dimension
Overall Indicator Score
HLG-1 Transfers from Higher Levels of Government
C
Notes:
HLG-1.1 Outturn from higher-levels of government
D
Notes:
Actual transfers were 78%, 84%, and 86% of the original budget estimate in the three years 2017-2019, or none of last three years met “C” score requirement of this ratio of between 92-116%.
HLG-1.2 Transfers composition outturn
D
Notes:
Variances in transfer composition in 2017, 2018, and 2019 were 22, 16,§ and 14% respectively. Only year 2019 met “C” score requirement of the variance of less than 15%.
HLG-1.3 Timeliness of transfers from higher-levels of government
A
Notes:
The MoF’s information on budget plans assigned to the city was made in about November every year before commencement of the new FY.
HLG-1.4 Predictability of transfers
C
Notes:
The MoF provides information on budget transfers for the FY and two following years, but does not provide clear explanation about changes between the current and the previous year.
HLG-2 Fiscal rules of monitoring of fiscal position
NU
Notes:
HLG-2.1 Fiscal rules for subnational governments
NU
Notes:
HLG-2.2 Debt rules for subnational governments
NU
Notes:
HLG-2.3 Monitoring of subnational governments
NU
Notes:
I. BUDGET RELIABILITY
Scores by Dimension
Overall Indicator Score
PI-1 Aggregate expenditure out-turn
D
Notes:
PI-1.1 Aggregate expenditure out-turn
D
Notes:
Actual state budget expenditure deviated from the initially approved amount by more than 15% in two of the three years analyzed (-18.1 in 2017; -25.0% in 2018; and -14.7% in 2019).
PI-2 Expenditure composition outturn
D+
Notes:
PI-2.1 Expenditure composition outturn by function
D
Notes:
The calculated composition variance by function was more than 15% in two of the last three years:- Year 2017: 19.15% - Year 2018: 34.02% - Year 2019: 20.55%.
PI-2.2 Expenditure composition outturn by economic type
NA
Notes:
The budget is not allocated by economic type of expenditure. Therefore, it is not possible to calculate variance in expenditure composition by economic type.
PI-2.3 Expenditure from contingency reserves.
A
Notes:
The contingency provision subsequently allocated to particular programs in year: - 2017: 3.34% - 2018: 1.04% - 2019: 2.55% i.e. on average less than 3% of expenditure.
Notes:
PI-3.1 Agregate revenue outturn
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-3.2 Revenue composition outturn
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
II. TRANSPARENCY OF PUBLIC FINANCES
Scores by Dimension
Overall Indicator Score
PI-4 Budget Classification
D
Notes:
PI-4.1 Budget Classification
D
Notes:
The budget is consistently estimated, implemented, and reported by sector and administrative unit classification.
PI-5 Budget Documentation
D
Notes:
PI-5.1 Budget Documentation
D
Notes:
Budget documentation fulfills 5 elements, including 2 basic elements and 3 additional elements out of 12 elements.
PI-6 Subnational government operations outside financial reports
D
Notes:
PI-6.1 Expenditure outside financial reports
D
Notes:
The sum of expenditure from extrabudgetary funds and PSDU retained collection was 23% of total expenditure of SNG budgetary units.
PI-6.2 Revenue outside financial reports
D
Notes:
The sum of revenue from extrabudgetary funds and PSDU retained collection was 26% of total revenue of SNG budgetary units.
PI-6.3 Financial reports of extrabudgetary units
D
Notes:
Submission of financial reports of extrabudgetary funds to DoF was made only upon one-off request.
PI-7 Transfers to subnational governments
C+
Notes:
PI-7.1 System for allocating transfers
B
Notes:
Most (or 75%) transfers to district governments from the city government budget was made by a transparent and rules-based system.
PI-7.2 Timeliness of information on transfers
C
Notes:
Information on annual transfers to district governments was issued 10 days before Ethe start of the FY 2019, and a week before for FY 2020.
PI-8 Performance information for service delivery
D+
Notes:
PI-8.1 Performance plans for service delivery
D
Notes:
Performance plans at line-department level were not disaggregated by specific policy or programs.
PI-8.2 Performance achieved for service delivery
D
Notes:
Performance reports at line-department level were disaggregated by functions, not by specific policy or programs.
PI-8.3 Resources received by service delivery units
C
Notes:
Annual budget outturn reports of all three sampled sectors presented information on resources received by each frontline PSDU under the supervision of a line department.
PI-8.4 Performance evaluation for service delivery
D
Notes:
External state auditing is a unique systematic external evaluation arrangement for departmental agencies.
PI-9 Public access to fiscal information
D
Notes:
PI-9.1 Public access to fiscal information
D
Notes:
The government made only one basic element available to the public.
9bis Public consultation
D
Notes:
9bis.1 Public consultation in budget preparation
D
Notes:
Given time pressure on budget plan drafting to submit to the City People’s Council, public consultation in budget preparation for 2020 was not conducted in 2019.
9bis.2 Public consultation in the design of service delivery programs
D
Notes:
In 2019, DoET conducted a public consultation on the proposed tuition fee scheme, and DoF on proposed allowances for commune Vietnam Fatherland Front (VFF).
9bis.3 Public consultation in investment planning
D
Notes:
Public consultation is not required in the stage of project preparation.
III. MANAGEMENT OF ASSETS AND LIABILITIES
Scores by Dimension
Overall Indicator Score
PI-10 Fiscal risk reporting
D+
Notes:
PI-10.1 Monitoring of public corporations
C
Notes:
The financial statements of all SOEs are audited but not all of them are published.
PI-10.2 Monitoring of subnational governments
C
Notes:
Districts prepare budget executed reports on an annual basis but only less than half of them are audited.
PI-10.3 Contingent liabilities and other fiscal risks
D
Notes:
The CCT does not record any contingent liabilities in the budget nor any other reports.
PI-11 Public investment management
D+
Notes:
PI-11.1 Economic analysis of investment proposals
C
Notes:
Project proposals include information on total cost, rationale, and social and economic benefit.
PI-11.2 Investment project selection
D
Notes:
The projects are prioritized in the medium-term investment plan by the DPI based on the clear criteria in the Public Investment Law and City Resolution.
PI-11.3 Investment project costing
D
Notes:
Total capital cost of the project is included in the medium-term investment plan and the annual investment plan.
PI-11.4 Investment project monitoring
C
Notes:
The project implementing agencies prepare a monthly report and submit to the DPI for review and consolidation.
PI-12 Public asset management
C+
Notes:
PI-12.1 Financial asset monitoring
C
Notes:
The CCT records financial assets in the financial statement of the city.
PI-12.2 Nonfinancial asset monitoring
C
Notes:
The CCT has a registry on fixed assets that are above VND 500 million.
PI-12.3 Transparency of asset disposal
B
Notes:
There is a clear procedure issued by the central government related to asset disposal.
Notes:
PI-13.1 Recording and reporting of debt and guarantees
C
Notes:
The DoF monitors all debt of the city and reports the debt statistics to the MoF bi-annually.
PI-13.2 Approval of debt and guarantees
A
Notes:
The Debt Management Law and guiding regulation clearly stipulate the procedure for issuing new debt and guarantees as well as the approving authority of new debts.
PI-13.3 Debt management strategy
D
Notes:
CCT prepares the medium-term debt plan. However, this plan does not havetarget indicators such as interest rate or foreign currency risks. The plan is not publicly disclosed.
IV. POLICY-BASED FISCAL STRATEGY AND BUDGETING
Scores by Dimension
Overall Indicator Score
PI-14new Medium term budget strategy
D+
Notes:
PI-14new.1 Underlying forecasts for medium-term budget
C
Notes:
Estimates of revenue and expenditure were available for the FY and two outer years, in which estimates for the FY was the same as presented in its annual budget plan.
PI-14new.2 Fiscal impact of policy proposals
D
Notes:
Revenue policy is decided by central government. In principle, the fiscal impact of any new expenditure policy should be justified.
PI-14new.3 Medium-term expenditure and revenue estimates
B
Notes:
The annual budget proposal presents estimates of revenue and expenditure for the budget year and two outer years.The estimates are classified by economic classification at
aggregate level (capital vs. recurrent) and by function.
PI-14new.4 Consistency of budgets with previous year's estimates
D
Notes:
Only budgeted and estimated data of the last year of the last medium-term budget is available in parallel with estimates for the current medium-term budget.
PI-14 Macroeconomic and fiscal forecasting
NU
Notes:
PI-14.1 Macroeconomic forecasts
NU
Notes:
PI-14.2 Fiscal forecasts
NU
Notes:
PI-14.3 Macro-fiscal sensitivity analysis
NU
Notes:
Notes:
PI-15.1 Fiscal impact of policy proposals
NU
Notes:
PI-15.2 Fiscal strategy adoption
NU
Notes:
PI-15.3 Reporting on fiscal outcomes
NU
Notes:
PI-16 Medium term perspective in expenditure budgeting
NU
Notes:
PI-16.1 Medium-term expenditure estimates
NU
Notes:
PI-16.2 Medium-term expenditure ceilings
NU
Notes:
PI-16.3 Alignment of strategic plans and medium-term budgets
NU
Notes:
PI-16.4 Consistency of budgets with previous year estimates
NU
Notes:
PI-17 Budget preparation process
C
Notes:
Notes:
A clear annual budget calendar is set nationally. CCT adheres to the steps which are under its control. According to the
calendar, provincial agencies have more than 4 weeks to
prepare budget proposal, all agencies submitted on time in
2019.
PI-17.2 Guidance on budget preparation
D
Notes:
No budget ceiling is given to provincial agencies for annual budget proposal.
PI-17.3 Budget submission to the subnational council
C
Notes:
Provincial People’s Committee submitted budget proposal at least 1 month before FY end in each of the last three FYs.
PI-18 Legislative scrutiny of budgets
B+
Notes:
PI-18.1 Scope of budget scrutiny
A
Notes:
CCT People’s Council’s review of budget proposals covers all revenue and expenditure, medium term financial plan, priorities, and fiscal policies.
PI-18.2 Legislative procedures for budget scrutiny
B
Notes:
Budget scrutiny in CCT is done by the People’s Council’s Economic and Budget Board, in consultation with other Boards of the Council.
PI-18.3 Timing of budget approval
A
Notes:
Budget approvals for 2017, 2018, and 2019 were made before FY end.
PI-18.4 Rules for budget adjustments by the executive
A
Notes:
CCT Provincial People’s Committee is required by Law to seek People’s Council approval for every budget adjustment.
V. PREDICTABILITY AND CONTROL IN BUDGET EXECUTION
Scores by Dimension
Overall Indicator Score
PI-19 Tax administration
NA
Notes:
PI-19.1 Rights and obligations for tax measures
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-19.2 Property tax register and value assessment
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-19.3 Tax risk management, audit and investigation
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-19.4 Tax arrears monitoring
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-20 Accounting for revenue
NA
Notes:
PI-20.1 Information on revenue collections
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-20.2 Transfer of revenue collections
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-20.3 Tax accounts reconciliation
NA
Notes:
Administered by the National General Department of Taxation and the National General Department of Customs.
PI-21 Predictability of in-year resource allocation
A
Notes:
PI-21.1 Consolidation of cash balances
A
Notes:
All bank and cash balances are consolidated on a daily basis.
PI-21.2 Cash forecasting and monitoring
A
Notes:
The Central State Treasury is responsible for centralized cashflow forecasting, with the bottom-up forecasts provided by the City Treasury Office.
PI-21.3 Information on commitment ceilings
B
Notes:
Spending units have their budget plans approved prior to December 31 of the previous year and are able to plan and commit their expenditure at any time in the current year according to the annually authorized budget.
PI-21.4 Significance of in-year budget adjustments
A
Notes:
In 2019, the CCT province made two budget adjustments, which were approved by the People’s Council.
PI-22 Expenditure arrears
A
Notes:
PI-22.1 Stock of expenditure arrears
A
Notes:
There are no arrears found in the last three fiscal years. The Treasury makes timely payments to contractors.
PI-22.2 Expenditure arrears monitoring
A
Notes:
The city reports these late payments annually as part of the report on the capital investment allocation and disbursement report submitted to the People’s Committee.
Notes:
PI-23.1 Integration of payroll and personnel records
C
Notes:
At city level, reconciliation of the payroll with personnel records is made every six months between Treasury and the Department of Home Affairs (DoHA) or line departments.
PI-23.2 Management of payroll changes
A
Notes:
Payroll and personnel records were updated every six months at the departmental level, but monthly at spending agency level in 2019.
PI-23.3 Internal control of payroll
A
Notes:
Changes in personnel records in spending agencies are controlled by the competent authority.
Notes:
Since adoption of the block granting mechanism to administrative agencies and PSDU in 2015, agency heads have full responsibility to manage their assigned staff quota and payroll.
Notes:
PI-24.1 Procurement monitoring
C
Notes:
Databases or records are maintained for all contracts including data on what has been procured, value of procurement, and who was awarded contracts.
PI-24.2 Procurement methods
A
Notes:
All agencies follow an open competitive method by default as per the law.
PI-24.3 Public access to procurement information
B
Notes:
The e-procurement website makes the following available in a timely manner: legal framework for procurement, procurement plan for 2020, realization of procurement operation for 2019, bidding opportunities, and contract awards.
PI-24.4 Procurement complaints management
B
Notes:
The procurement complaints system meets 3 out of 6 criteria. No complaint was received by the Complaint Resolution Committee (CRC) in 2019.
PI-25 Internal controls on nonsalary expenditure
A
Notes:
PI-25.1 Segregation of duties
B
Notes:
Segregation of duties is required throughout the entire spending process Between authorization, recording, and audit, but not for custody of assets.
PI-25.2 Effectiveness of expenditure commitment controls
A
Notes:
Expenditure can only be made after estimates have been approved by the competent authority.
PI-25.3 Compliance with payment rules and procedures
A
Notes:
Payment procedure via the Treasury system has been set up. Exceptional cases are also clearly defined.
Notes:
PI-26.1 Coverage of internal audit
D
Notes:
No internal audit has been performed.
PI-26.2 Nature of audits and standards applied
NA
Notes:
No internal audit has been performed.
PI-26.3 Implementation of internal audits and reporting
NA
Notes:
No internal audit has been performed.
PI-26.4 Response to internal audits
NA
Notes:
No internal audit has been performed.
VI. ACCOUNTING AND REPORTING
Scores by Dimension
Overall Indicator Score
PI-27 Financial data integrity
B+
Notes:
PI-27.1 Bank account reconciliation
A
Notes:
Effective daily reconciliation. All CCT Treasury accounts transfer balances to the National Single Treasury Account at the end of the day.
PI-27.2 Suspense accounts
A
Notes:
Accounting suspense accounts are cleared within 3 working days and have zero balance at year end.
PI-27.3 Advance accounts
B
Notes:
Reconciliation of advance accounts is performed quarterly within one month from the end of each quarter.
PI-27.4 Financial data integrity processes
B
Notes:
Access to data is restricted to authorized persons. Historical data change is not permitted.
PI-28 In-year budget reports
B+
Notes:
PI-28.1 Coverage and comparability of reports
B
Notes:
The in-year budget reports allow direct comparison to the original budget with partial aggregation.
PI-28.2 Timing of in-year budget reports
A
Notes:
Reports are available monthly in the second week of the subsequent month.
PI-28.3 Accuracy of in-year budget reports
B
Notes:
Data reliability and preciseness is secure since data is extracted directly from the TABMIS system.
PI-29 Annual financial reports
C+
Notes:
PI-29.1 Completeness of annual financial reports
B
Notes:
Budget execution report is on cash basis and does not contain information on assets, liabilities, and cash balances.
PI-29.2 Submission of reports for external audit
C
Notes:
City budget execution report is submitted to SAV-5 within 7 months after FY end.
PI-29.3 Accounting standards
B
Notes:
The national accounting guidelines are used consistently and transparently by CCT (although the guidelines have significant deviations from IPSAS).
VII. EXTERNAL SCRUTINY AND AUDIT
Scores by Dimension
Overall Indicator Score
Notes:
Notes:
Audit opinion is provided for the budget execution report which comprises all city agencies’ revenue and expenditure.
PI-30.2 Submission of audit reports to the subnational council
B
Notes:
SAV-5 submits audit reports to the CCT People’s Council within 4 months.
PI-30.3 External audit follow-up
A
Notes:
The follow up and enforcement of audit recommendations is provided by State Audit Law and SAV decision.
PI-30.4 Independence of the public audit institution in charge of subnational governments
A
Notes:
The SAV-5 office is independent institutionally, operationally, and financially from CCT, as provided by the Constitution 2013 and State Audit Law 2015.
PI-31 Legislative scrutiny of audit reports
D
Notes:
PI-31.1 Timing of audit report scrutiny
D
Notes:
People’s Council does not issue any report on scrutiny of audit reports.
PI-31.2 Hearings on audit findings
NA
Notes:
Hearings are organized at the exit meeting of every individual audit with the participation of People’s Council.
PI-31.3 Recommendations on audit by subnational council
NA
Notes:
People’s Council does not issue any recommendations to Executive based on audit reports.
PI-31.4 Transparency of legislative scrutiny of audit reports
NA
Notes:
People’s Council does not issue any report on scrutiny of audit reports.