CONCLUSIONS

Table 6. Fixed Affect Model Results

rho .43589195 (fraction of variance due to u_i)

sigma_e 8749.841 sigma_u 7691.4539

_cons -85236.47 28594.96 -2.98 0.003 -141281.6 -29191.37 LNSIZE 5062.468 1437.658 3.52 0.000 2244.711 7880.226 LEV -80.84388 132.6979 -0.61 0.542 -340.927 179.2392 ROE 294.5568 102.0709 2.89 0.004 94.50153 494.6121 PRICE Coef. Std. Err. z P>|z| [95% Conf. Interval]

corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000 Wald chi2(3) = 24.29 overall = 0.3513 max = 5 between = 0.4954 avg = 5.0 R-sq: within = 0.0675 Obs per group: min = 4 Group vari able: MCK Number of groups = 22Random-effects GLS regression Number of obs = 109 . . xtreg PRICE ROE LEV LNSIZE, re

.

The results of the Hausman Test show that, because p-value = 0.6191> 0.05, that means we cannot reject the Ho hypothesis with a significance level of 5%, concluding that there is no difference between FEM and REM are statistically significant, so it is more appropriate to use the REM model.

Price = -85,236.47 + 294.5568xROE + 5,062.468xLnSize

The variables in the model explain 35.15% of the variation in the dividend policy showed by the value of R-square. ROE and firm size are proportional to stock price, indicating that firms with better ROE and larger size are valued at higher stock prices. There is no relationship between firm’s financial leverage and stock price, indicating that the borrowing of firms in the sample has no significant effect on stock prices.

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The financial leverage of the firms in the sample is mostly high, and the data do not reflect a statistically significant relationship between leverage and stock prices, showing that firms can use debt according to their needs. capital needs and investors are not too concerned about the level of debt of the group of enterprises in the sample.

REFERENCE

1. Dimitrov,V & Jain, P.C (2008), “The value relevance of changes in financial leverage beyond growth in assets and GAAP earnings”, Journal of Accounting Audit Financ., tr. 191–222.

2. M. H And Modigliani Miller (1961), “Dividend Policy, Growth, And The Valuation Of Shares”, The Journal Of Business. 34(4), tr. 411-433.

3. Mustafa Özyeþil (2019), “Relationship between Brand Value, Firm Size and Stock Price Performance: 2nd Generation Panel Data Analysis on Turkish Retail Sector and Sport Clubs”, International Journal of Economics and Financial Issues, Econjournals. 9(5), tr. 38-43.

4. S.H. Saleh, &Ghaior, G.H. (2011), “The effect ROA and financial leverage on return on equity and stock price-listed in Tehran Stock Exchange”, The Journal Of Business tr. 233-243.

MSc. Nguyen Thanh Hue¹,Associate Professor. PhD. Truong Thi Thuy²

Abstract: The article studies the management and use of approved Budget to implement the Priority for cadres, civil servants, public employees of the State Audit Office of Viet Nam, classified according to content which are proposed to be remitted into the State Budget and the spending tasks that are allowed to be used in the 2016-2020 period. The article uses statistical and survey methods to evaluate the management and use of funds that are deducted to implement the Priority according to 14 detailed contents. After analyzing the achieved results, shortcomings and causes, the article has proposed a number of solutions for stakeholders to more effectively manage this funding of the State Audit Office of Viet Nam in the future.

Keywords: Priority budget, Priority budget management, State Audit Office

1. INTRODUCTION

Priority for cadres, civil servants and employees of the State Audit is an annual work, based on the results of the implementation of audit recommendations, the State Audit Office of Viet Nam is entitled to deduct 5% of the amount discovered and recommended by the State Audit according to regulations to implement the Priority for cadres, civil servants and public employees of the State Audit.

The mechanism to allow the appropriation and use of funds based on the percentage of money actually paid into the State budget, which was discovered by the State Audit has been approved by the National Assembly Standing Committee in 2006. Since then, the documents of the National Assembly Standing Committee, the Government’s Decree and the guiding Circular of the Ministry of Finance have many changes and additions to the actual operation situation.

Specifically, the rate of deduction and use for the period 2007-2015 is 2%, from 2016 to now, 5%

of the amount discovered and recommended by the State Audit has been implemented. With this specific funding source, the State Audit has mainly spent on incentives and rewards for officials, civil servants, public employees of the State Audit, in addition, it is also used to invest in facilities and infrastructure to strengthen the operational capacity[1,3,4,5]

The approved deducted items [2]

State Audit Office is entitled to 5% of the amount discovered and recommended by the State Audit, including:

- Increases in State Budget revenues in taxes, fees and charges and other revenues actually remitted into the State Budget or made through the clearing method, including:

1 Email: huenguyen.sav@gmail.com State Audit Office of Viet Nam 2 Academy of Finance

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+ The items the units are obliged to declare and pay to the State Budget but fail to declare, make false declarations, or evade tax, tax fraud, or because of violations of other regulations on State Budget collection and payment, leading to under-determining of tax, fee, land use levy; land rent, water surface rent, sale of State-owned houses...

+ Tax arrears, fines for tax administrative violations, late payment interest to authorities, under-counted according to the provisions of tax law...

+ The items that the competent authorities must notify the taxpayer to pay the State Budget according to regulations but have not yet issued the notice and the taxpayer has not yet paid the State budget.

+ The items discovered and proposed to increase State Budget revenues are made by taxpayers;

Payments to the State Budget that have been collected by agencies and units from related subjects but collected in excess or are not allowed to be collected according to the provisions of law; Fees for grant of mineral mining rights...

- The items actually spent from the State Budget in contravention of the regime and remitted to the State Budget (for settled expenditures), including:

+ Wrong unit price, volume, determination levels and differences for construction investment works and projects.

+ Using State Budget funds to spend on things that are not under the spending tasks of the State budget, not in accordance with the assigned tasks, or with the wrong spending regimes, standards and norms.

+ Using non-budget funds to spend on contents that are not for the right subjects of the funds or spend in violation of authority, regimes, standards, and norms.

- Expenditures that have been spent in the wrong budget are detected by the State Audit and recommended to reduce payments and reduce the next period’s and next year’s budget estimates.

- The estimated budget allocations exceed the allocated norms and are from the wrong source.

The State Audit Office of Viet Nam is entitled to use the extracted funds to spend on the following contents [6]:

- Expenses for incentives and rewards for cadres, civil servants, public employees of the State Audit (in addition to annual reward expenditures according to the provisions of the Law on Emulation and Commendation) must not exceed 0.8 times the salary level prescribed by the State, including: Salary defined by rank and position; Allowances (position allowance, allowance for excessive, preferential allowance according to profession).

- The remaining funds after encouraging and rewarding cadres, civil servants, public employees of the State Audit Office of Viet Nam are used to invest in facilities and strengthen the operational capacity of the sector. Including:

+ Expenses to increase investment in construction of the State Auditor’s office in case of speeding up the construction of facilities and modernization while the funding source is in accordance with the provisions of the Investment Law was unsatisfactory; expenditures on repair, maintenance,

renovation, upgrading and expansion of physical facilities; expenditures on procurement, repair, maintenance of assets, machinery, equipment, working vehicles and means of transport in service of the audit; support the cost of operating the headquarters of the State Audit Office.

+ Additional expenditure on training, refresher training, conferences, seminars to improve professional skills, organizing delegations to draw experience within the country and abroad.

+ Scientific research expenses; information technology, implementing policies to attract talents; travel expenses for audit activities; propagating, disseminating and educating the law on auditing; improve the operational capacity of the industry.

+ Additional expenses for professional activities in service of the audit; payment for the service of providing information for audit activities.

+ Expenses for settlement of complaints and denunciations in the implementation of conclusions of the State Audit.

+ Expenses for encouraging collectives and individuals who have actively cooperated in the implementation of the State Audit’s conclusions and recommendations; coordination in the performance of the sector’s operational tasks.

According to reports of ministries, central authorities and through financial monitoring and management for State administrative agencies and units, there are currently 36 State management agencies, units which are applied the prioritized financial mechanism, income according to the tasks assigned by the State to perform... including the State Audit Office. Therefore, the management and use of these specific funding sources is a necessary requirement for all units in general and especially for units performing inspection tasks such as State Audit Office. The current situation shows that the use of this priority funding has many downsides which come from the policy mechanism to the implementation method of the beneficiaries. The in-depth study of the status of using the State Audit’s priority funding to propose solutions is of great significance to this agency as well as a lesson learned for other State agencies in the future.

The following part of the paper is structured as follows: Part 2 is an overview of previous studies, part 3 present data and method of the study, part 4 is the results and part 5 gives some conclusions and recommendations.

2. LITERATURE REVIEW

Author Hoang Thi Thu Huong (2019) [7] presented the scientific theoretical and practical basis of State Management for the management of recurrent expenditures from the State Budget at State agencies. At the same time, the author analyzed and evaluated the management of recurrent expenditures of the State Budget in the State administrative area and the General Department of Taxation - Ministry of Finance. In particular, in his thesis, the author analyzed the financial management mechanism of the General Department of Taxation when the funding to ensure the operation of the General Department of Taxation is calculated at a stable rate of 1.8% of the annual State Revenue Estimate assigned by the National Assembly and the Government, and expenditures which comply with the regimes, standards and expenditure levels promulgated by competent agencies. The Minister of Finance approves and promulgates specific expenditures on the basis

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of applying current standards and spending levels, suitable to the specific situation and funding sources.

Then, some solutions are proposed for the management of recurrent expenditures in general and specific expenses of the General Department of Taxation in particular, such as: Solutions to process of building, specializing policy for recurrent expenditure; Solutions to costing and allocating estimates; Solutions to improving the level of management staff; Solutions to shortcomings in financial management in the units; The solution the settlement work and strengthening the internal inspection.

Le Quoc Minh (2016) [11] has updated the Decision regulating the coefficient of adjustment of the base salary increase for civil servants, public employees working at the Management Board of Hoa Lac Hi-Tech Park under the Ministry of Science and Technology of the Prime Minister.

In which, the beneficiaries are civil servants and public employees in the commission and the number of employees approved by the competent authorities, people working under the labor contract regime with salaries according to Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government working at Hoa Lac Hi-Tech Park in the following organizations and units:

Organizations performing the State management function of the Management Board of Hoa Lac Hi-Tech Park; scientific and technological non-business agencies under the Management Board of Hoa Lac Hi-Tech Park (including the Training Center and the Center for High-Tech Business Incubation), and beneficiaries applied the base salary adjustment coefficient increased by 0.8 times compared to the base salary.

Author Chi Kien (2019) [12] has Stated some contents in the Decision No. 32/2019/QD-TTg2019 Prime Minister’s dated October 29, on a number of specific spending regimes of the Viet Nam Maritime Administration. In particular, the content and specific spending regime, the average salary is applied with a salary coefficient of 1.8 times the salary for cadres, civil servants and public employees prescribed by the State. The maritime safety and security bonus is applied at the rate of 15% of the salary of rank and position for civil servants directly engaged in the management, supervision and assurance of maritime safety and security. The Viet Nam Maritime Administration is entitled to pay for work clothes. The Ministry of Transport prescribed the working attire regime for the Viet Nam Maritime Administration;

The Ministry of Finance stipulates the level of spending on work clothes according to the promulgated clothing policy. The specific content and mode of spending specified above shall be included in the autonomous allocation budget. When the salary coefficient increased by 0.8 times; maritime safety and security bonuses and working clothes shall be arranged from the retained maritime toll revenues according to regulations of the Ministry of Finance.

Author Duc Tuan(2020) [10] has Stated a number of specific expenditure tasks of the Department such as: expenditure on strengthening the management, supervision, inspection and examination;

expenditure on information technology application; expenditure on organizing training, refresher training ; expenditure on organizing conferences, seminars, information dissemination on insurance and insurance market; expenditures on hiring domestic and foreign actuaries... Funds for performing the task of spending for the operation of the Agency for Management and Supervision of Insurance shall be arranged by the collected fees budget for management and supervision of activities for insurance activities in accordance with the law on fees and charges.

Dr. Dinh Trong Hanh (2020) [9] did research based on a systematic and comprehensive approach along with appropriate research methods: synthesis, analysis, modeling... on the decentralization of management of audit activities of SAV, and it mentioned that the decentralization of SAV’s operation management should be based on financial potential and other potentials, including funding to implement the Priority for SAV. The stude proposed 3 groups of solutions in order to improve the decentralization of SAV’s audit management, including: Group of solutions to the decentralization of SAV’s audit management; The solution group to the decentralization of audit management of SAV and the group of complementary solutions to the decentralization of audit management of SAV. In addition, the thesis proposed recommendations to SAV and to the National Assembly on measures to ensure the feasibility of solutions to complete decentralization of the management of SAV’s audit activities. The research results of the thesis are used for research and implementing suggestions to complete the decentralization of audit management of SAV; serve as a basis for developing textbooks and documents in service of training State auditors; serve as the basis for research and development of legal documents, administrative and professional documents on decentralization of audit management of SAV.

According to the author’s research, up to the time of the study, there have been no studies on financial management at the State Audit Office of Viet Nam in general and the management and use of the allocated funds to implement the priority policy for the State Audit in particular.

Therefore, the author chooses this issue as the research content to propose solutions to effectively manage this budget of the State Audit in the coming time.

3. DATA AND METHODOLOGY