Gangdong-gu Saves 1.67 Billion Won in Budget Through Preliminary Audit

Saved 1.67 Billion KRW Budget on 911 Projects Including Construction, Services, and Goods Procurement... Conducted Professional and Systematic Cost Review to Enhance Budget Execution Efficiency

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Jeong-hoon) announced that it achieved a budget saving of 1.67 billion KRW last year through preliminary routine audits and contract reviews.

Routine audits are a system that preemptively inspects and reviews the legality and appropriateness of project execution for major policies before contract signing, including proper cost calculation and unit price application.

The targets include construction and service contracts over 10 million KRW, goods purchases over 5 million KRW, private consignment projects, newly occurring budget items, or design change projects where the contract amount increases by more than 10%.

Over the past year, the district saved 1.59 billion KRW from 714 projects including 220 construction cases, 244 service cases, 233 goods purchases, and 17 private consignment projects through routine audits and contract reviews, and saved 83 million KRW from 197 design change cases, totaling 1.67 billion KRW saved through preliminary audits of 911 cases.

Furthermore, over the past five years, a total of 4,291 projects resulted in a budget saving of 7.86 billion KRW.

In particular, the district has secured expertise in review tasks by recruiting specialists in electrical, telecommunications, and civil engineering fields to conduct in-depth cost analyses.

Additionally, to improve the quality of construction works, on-site inspections of contract fulfillment are conducted, and pre-consultations are held regarding construction types, construction methods, cost calculation miscellaneous expense items, and rates. The district also strengthens the capabilities of contract parties by producing and distributing practical cost calculation manuals to social economy enterprises in the region and ordering department staff.

Lee Jeong-hoon, Mayor of Gangdong-gu, stated, "We will continue to prevent budget waste factors in advance through professional preliminary audits and enhance the efficiency of financial management to ensure that the precious taxes of our residents are not wasted."