Quang Ninh Budget Audit: Recommendations to Address More Than VND 54.8 Billion

The SAV announces the audit results of local budget management and the 2025 local budget finalization report of Quang Ninh Province. Photo: M. Thuy

Shortcomings in Capital Allocation and Budget Expenditure Management

The audit report noted that the management and administration of state budget revenues and expenditures, the allocation and adjustment of public investment capital plans, and the management and implementation of investment projects in Quang Ninh Province were generally conducted in accordance with regulations. However, the SAV identified several shortcomings in budget estimation and assignment, resource allocation, and budget management and utilization.

Specifically, the Provincial People's Committee allocated VND 20 billion for investment preparation and planning tasks before the relevant lists of projects, tasks, and estimates had been approved in accordance with regulations.

Regarding commune-level budgets, the Provincial People's Council issued norms for allocating development investment expenditure estimates without having established sufficient allocation criteria and calculation bases or completed an assessment of actual infrastructure needs at the commune level, including transport infrastructure, cultural facilities, and urban improvement, under the two-tier local government model. In addition, the capital allocation objectives specified in Resolution No. 308/NQ-HDND dated October 17, 2025, issued by the Provincial People's Council, and Decision No. 3943/QD-UBND were not fully consistent.

Another notable issue concerned the organization of artistic programs and events serving political objectives and tourism development without fully established expenditure norms. A sample audit of the Ha Long Concert 2025 artistic program found that 64 out of 77 work and service items lacked the required economic-technical norms, expenditure norms, or unit prices for public services funded by the state budget.

The SAV recommended that the Provincial People's Committee direct relevant agencies to review the organization and payment of expenditures for which no applicable norms had been established. Where wastefulness was identified, the causes and responsibilities should be clarified and handled in accordance with regulations. The SAV also recommended that the Provincial People's Council consider issuing expenditure regulations and norms for the cultural and tourism sectors as a basis for budget estimation and expenditure control, ensuring thrift and preventing waste.

In state budget revenue management, tax debt recovery had not achieved the targeted results. As of December 31, 2024, the recovery rate for collectible tax arrears stood at only 42.5%, below the target of 80%. In addition, communes, wards, and special administrative units had not returned VND 40.936 billion to the provincial budget in targeted supplementary funding for which the spending purposes had been completed.

Regarding the carryover of expenditures, Quang Ninh had not carried forward VND 20.8452 billion in savings from the 5% reduction in recurrent expenditure to 2026 for continued monitoring and use, as required under Resolution No. 119/NQ-CP dated August 7, 2024. The provincial salary reform fund, amounting to VND 680.449 billion, had also not been carried forward in accordance with regulations and remained recorded as part of the budget surplus.

In construction investment, a detailed audit of 51 projects managed by 10 project owners found that project management and implementation generally complied with regulations. However, the SAV identified shortcomings in the formulation, appraisal, and approval of investment policies and projects; design and cost estimation; contractor selection; contract management; construction quality and progress management; acceptance, payment, and finalization.

Notably, for certain project components, the quantities accepted and paid for had been calculated inaccurately compared with as-built documentation and construction drawings. The audit identified downward adjustments totaling VND 11.009 billion.

Some projects required adjustments to their implementation periods or experienced delays compared with their approved schedules. Difficulties in site clearance and delays in handing over sites to contractors affected implementation progress and disbursement at several projects.

Recommendations for Financial Adjustments and Improvements in Public Investment Management

Based on the audit findings, the SAV recommended total financial adjustments of VND 54,802,322,754, comprising an increase in state budget revenue of VND 1,054,830,489 and the recovery or reduction of state budget expenditure totaling VND 53,747,492,265.

In addition to these financial recommendations, the SAV issued several recommendations concerning the management and monitoring of funding sources. Regarding the salary reform fund, the SAV recommended monitoring and making additional provisions of VND 927,632,789; bringing VND 680,449,000,000 under the management and monitoring of the salary reform fund for carryover purposes; and adding VND 27 billion to the amount subject to management and monitoring in accordance with regulations. These recommendations aim to ensure that funding sources are fully accounted for, used for their intended purposes, and monitored separately from the total financial adjustments stated above.

In construction investment, the SAV recommended that Quang Ninh Provincial Area I Construction Investment Project Management Board recover VND 1,402,592,677, representing the difference between the amount disbursed and the finalized value of two projects. Of this amount, VND 248,965,000 relates to the An Tiem Road project, running through Viet Hung Industrial Park to Van Yen intersection, while VND 1,153,627,677 relates to the access road to Ben Rung Bridge within Quang Ninh Province.

For Quang Ninh Provincial Area II Construction Investment Project Management Board, the SAV recommended that the project owner coordinate with relevant parties to address, in accordance with regulations, a downward adjustment of VND 558,579,361 relating to a lump-sum contract package.

The SAV also recommended that project owners and relevant entities review and address a downward adjustment of VND 20,020,768,499 in the remaining contract value to ensure that payments comply with regulations and prevent losses to the state budget.

Alongside the financial adjustments, the SAV recommended corrective measures to address shortcomings in the management and use of public finances and public assets, and to clarify the responsibilities of the relevant agencies and units.

Notably, the SAV recommended that the Quang Ninh Provincial People's Committee direct relevant units to inspect and review the payment of VND 3.214 billion by Cua Ong Ward People's Committee for environmental sanitation services along National Highway 18, on the Ha Long–Mong Duong section, which is operated under a build-operate-transfer (BOT) contract.

The SAV had previously raised this issue during a thematic audit of the management and use of environmental protection and climate change response funding in Quang Ninh Province for the 2021–2023 period. Accordingly, the SAV reiterated its recommendation that the locality inspect, review, and implement the previous recommendation to prevent waste and losses to the state budget.

Regarding shortcomings in the allocation of investment capital to communes under the two-tier local government model, the SAV recommended that the Provincial People's Committee conduct reviews to establish the accountability of organizations and individuals involved in advising and submitting allocation norms to the Provincial People's Council before sufficient criteria and calculation bases had been established. It also recommended clarifying responsibility for issuing budget allocation decisions that were inconsistent with the Provincial People's Council's resolution on development investment expenditure allocation objectives for commune-level budgets.

For project management boards and project owners, the SAV recommended corrective action and lessons learned in investment project management, particularly in project formulation, appraisal and approval; contractor selection; contract management; construction quality and progress management; acceptance, payment, and investment finalization.

Regarding the Provincial People's Council, the SAV recommended that lessons be learned from issuing development investment expenditure allocation norms for commune-level budgets without sufficient allocation criteria, as well as from issuing Resolution No. 308/NQ-HDND dated October 17, 2025, which contained provisions that were not fully consistent.

The SAV also recommended that the Provincial People's Council direct its Economic and Budget Committee to review and draw lessons from the appraisal and examination of draft resolutions and the proposed revisions and additions to allocation norms submitted by the Provincial People's Committee before their issuance.

In particular, the SAV recommended that the Provincial People's Council strengthen its oversight of the implementation of VND 2.3 trillion in investment capital from the provincial budget allocated to communes, ensuring that the funds are used for the purposes approved by the Council.

Alongside the implementation of the financial recommendations, the audit findings highlight the need to further improve budget estimation, allocation, and utilization; strengthen the accountability of relevant agencies and units; and thereby enhance the effectiveness of public resource management and utilization at the local level.