Assemblywoman Kim Taehee of Chilgok County Council Moves to Strengthen Fiscal Accountability and Transparency of Invested and Funded Institutions

It was announced that the ordinance titled "Ordinance on the Settlement of Contributions and Other Funds for Institutions Invested in or Funded by Chilgok-gun," proposed by Assemblywoman Kim Taehee, Chairperson of the Administrative Welfare Committee of the Chilgok County Council in North Gyeongsang Province, was passed at the 315th extraordinary session plenary meeting on January 29.

Assemblywoman Kim strongly argued that, even though local government finances are in a difficult situation, institutions invested in or funded by the county under Chilgok-gun generate surplus funds every year and, in some cases, use them as their own financial resources. Nevertheless, she pointed out that these surpluses are omitted during budget formulation and that there is a lack of accountability and transparency in what has become a merely formal review of budget and settlement reports.

She explained the purpose of the enactment, stating that, as an improvement measure, the ordinance was established to enhance the fiscal soundness of Chilgok-gun by systematizing the procedures for executing and returning contributions, including requiring that the results of settlement inspections, conducted on the basis of financial statements and other documents submitted by the invested and funded institutions, be reported to the council.

The main contents of the enacted ordinance are as follows: ▲ mandatory management of contributions and other funds through separate accounts and the required use of dedicated cards ▲ submission of a settlement report within two months after the end of the fiscal year or completion of the project ▲ mandatory return to the county of any unspent balance and accrued interest ▲ verification and inspection of the operation of contributions at least once a year ▲ introduction of a reward system for institutions that save budget ▲ provision of training related to settlement procedures.

Assemblywoman Kim Taehee emphasized, "It is an important role of the council, which is responsible for the taxes of county residents, to inspect and manage whether the county budget provided to invested and funded institutions is being spent transparently and in line with its intended purposes," adding, "Through this ordinance, by clarifying the procedures for the execution and return of contributions and other funds, we will be able to significantly improve the efficiency and transparency of the county’s finances."

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