Changwon Special City, Results of Joint Housing Management Audit ... 39% of Findings in Accounting Field Are the Most

Strengthening On-Site Consulting in Accounting and Conducting Compliance Inspections

Changwon Special City in Gyeongnam established a Multi-family Housing Audit Team within the Housing Policy Division of the Urban Policy Bureau in January this year to protect the rights and interests of multi-family housing residents and improve management efficiency. The team conducted audits on 20 multi-family housing complexes subject to mandatory management.

Prior to the audits, the city established a "Multi-family Housing Management Audit Promotion Procedure," setting step-by-step processing standards (such as standardizing audit preparation documents and organizing and posting checklists by sector) to ensure systematic and consistent audits.

Photo Materials (Audit Results, Issues by Type, and Improvement Plans)

This year’s audits focused on administrative guidance through on-site consulting rather than punitive measures, encouraging self-improvement. The audits proposed compliant and efficient operational methods under the Multi-family Housing Management Act, providing practical assistance for the operation and management of multi-family housing on site. This approach received high approval from multi-family housing workers and residents.

The audit findings by category showed that accounting management issues (such as failure to disclose income and expenditure settlement statements) accounted for the highest proportion at 39%. This was followed by general management (improper formation and operation of residents’ representative meetings) at 23%, facility management (improper adjustment of long-term repair plans and execution procedures for long-term repair reserves) at 22%, and construction and services (non-disclosure of contractor selection results) at 16%.

Accordingly, from December 6 to 20, the city revisited the multi-family housing complexes audited in the first half of the year to conduct follow-up management through compliance inspections, listen to on-site difficulties, and strengthen on-site consulting in the accounting field as part of the "Visiting Multi-family Housing Management Consulting."

Furthermore, to serve as a practical guide in the field, the city plans to publish and distribute an audit casebook (including practical explanations of accounting treatment) analyzing and organizing major audit findings, especially in the accounting sector.

Park Hyun-ho, Director of the Urban Policy Bureau, stated, “We will operate a substantial audit system that allows residents to feel the effectiveness of one-on-one customized consulting for multi-family housing management and operation.” He added, “We will continue to do our best to protect the rights and interests of residents and to create a safe residential environment in multi-family housing.”