Gwangju Seo-gu Councilor Oh Kwangrok Says "Reserve Funds Are Not Pocket Money"

Ordinance on Reserve Fund Expenditure Passes Standing Committee

Gwangju Seo-gu Council member Oh Gwangrok (representing Gwangcheon-dong, Yudeok-dong, Chipyeong-dong, Sangmu 1-dong, and Dongcheon-dong) announced on the 21st that the "Ordinance on the Expenditure of Reserve Funds," which he proposed at the 329th extraordinary session, has passed the relevant standing committee in its original form.

O Kwangrok, a member of the Gwangju Seo-gu Council, is speaking at a standing committee during the 329th extraordinary session. Provided by Gwangju Seo-gu Council

Reserve funds are allocated up to 1% of the total budget in accordance with Article 43 of the Local Finance Act and Article 144 of the Local Autonomy Act, to cover unforeseen expenditures or budget overruns by local governments.

The expenditure of reserve funds is included in the settlement statement for the following year and submitted to the council for approval. Since it cannot be separated and disapproved individually and can only be verified through settlement data after all reserve fund expenditures are completed, post-expenditure oversight is somewhat insufficient.

Oh proposed an ordinance requiring that the approval bill for reserve fund expenditures be submitted to the council as a separate agenda item from the settlement statement, and that quarterly expenditure details of the reserve funds be reported to the relevant standing committee.

Oh stated, "Reserve funds are not petty cash," and added, "With the enactment of this ordinance, I hope this will be an opportunity to enhance accountability and transparency so that reserve funds are used for their intended purpose in crisis situations or unforeseen circumstances."