Gyeonggi-do Recommends Establishing Internal Audit Departments in Five Public Institutions Without Them

Gyeonggi Provincial Government Gwanggyo New Office Building

Gyeonggi Province is significantly strengthening the internal audit functions of its 27 affiliated public institutions.

Gyeonggi Province will form a 'Public Institution Audit Council' this month, consisting of audit managers and officers from public institutions, to enhance the internal audit functions. Additionally, it will actively recommend the establishment of audit departments in five large public institutions that currently lack such departments.

From February 15 to March 3, the province conducted a special inspection of 27 institutions, including four public corporations, 21 foundation institutions, and two investment institutions under its jurisdiction. The inspection covered ▲audit systems ▲audit organizations ▲operational status ▲opinions related to strengthening internal audit functions, along with prior written submissions, the province announced on the 18th.

The special inspection revealed that 23 out of the 27 institutions, accounting for 85.1%, have established regulations for dedicated audit departments. The four institutions without such regulations were Gyeonggi-do Suwon World Cup Stadium Management Foundation, Gyeonggi Youth Training Center, Gyeonggi Social Service Institute, and Gyeonggi Environment and Energy Promotion Agency. Additionally, one institution, Gyeonggi Pyeongtaek Port Corporation, had regulations but had not established an audit department.

The province has strongly recommended these five institutions to establish audit departments.

According to the inspection results, the average number of employees per auditor across the 27 institutions was 83. However, Gyeonggi Provincial Medical Center (473 employees), Gyeonggi Institute of Economic Science and Technology (129 employees), Gyeonggi Housing and Urban Corporation (122 employees), and Gyeonggi Art Center (101 employees) each had more than 100 employees per auditor. The province plans to request these institutions to increase audit personnel.

The inspection also found that for serious misconduct cases requiring prompt response, such as workplace power harassment, bullying, and sexual misconduct, most institutions rely on external audits by the province rather than internal audits. In fact, over the past three years, the number of audits conducted by the 27 public institutions was only 1.2 in 2020, 1.7 in 2021, and 1.9 in 2022.

Accordingly, the province plans to establish the 'Public Institution Audit Council' this month to strengthen internal audit functions. The council will discuss audit and anti-corruption policies and coordinate joint responses when necessary.

For the five institutions without independent audit departments, the province will prepare a 'Gyeonggi Province Public Institution Audit Department Establishment and Personnel Improvement Recommendation (Draft)' to ensure the creation of audit departments and securing of minimum personnel.

Furthermore, the province will include the appropriateness of audit department organization and personnel in the internal audit system evaluation criteria among public institution management evaluation indicators. It will also propose institutional improvements to central government agencies such as the Ministry of the Interior and Safety, Board of Audit and Inspection, and Anti-Corruption and Civil Rights Commission to establish grounds for the composition of personnel and departments in public institution internal audit organizations.

In addition, to enhance audit capabilities, the province will promote training for audit staff twice a year and produce and distribute audit manuals.

Choi Eun-soon, Gyeonggi Province Auditor, said, "This special inspection was the first conducted to establish an internal audit system in public institutions and support autonomous management. We will actively implement the improvement measures and follow-up actions prepared through this process."

Meanwhile, during the opinion hearing on strengthening audit functions conducted alongside the special inspection, 23 institutions requested 'audit staff capacity-building training.' There were also demands for preferential policies for audit department employees, additional audit personnel, utilization of external experts, exclusion of non-audit tasks, and establishment of audit departments.