The Korean Institute of Certified Public Accountants said on the 6th that Seoul's Dongdaemun District, Yeongdeungpo District, and Seongdong District each promulgated and implemented partial amendments to their local government ordinances that mandate audits of private consignment projects.
Dongdaemun District and Yeongdeungpo District promulgated and implemented the ordinance amendments on the 9th of last month, and Seongdong District did so on the 4th.
There have been consistent calls for independent and professional external accounting verification of privately consigned project expenses funded by residents' taxes.
With this local government ordinance amendment, certified public accountants will conduct audits for privately consigned affairs above a certain size, which, it said, will secure fiscal transparency and enhance trust in the public sector.
On Mar. 23, the Dongdaemun District Council approved as originally drafted a partial amendment to the local government ordinance on private consignment of administrative affairs of Dongdaemun District, Seoul, at its 350th extraordinary session.
The Yeongdeungpo District Council also passed on the 25th of the same month, at its 268th extraordinary session, a partial amendment to the local government ordinance to promote and manage private consignment of Yeongdeungpo District affairs in Seoul, and the Seongdong District Council resolved on the 16th of last month, at its 291st extraordinary session, a partial amendment to the local government ordinance on private consignment of administrative affairs of Seongdong District, Seoul.
Key revisions include: ▲ mandating audits for entrusted institutions with a consignment amount of 500 million won or more (1 billion won or more in Seongdong District) ▲ strengthening management and oversight procedures to ensure transparency in carrying out consigned projects.
Choi Un-yeol, president of The Korean Institute of Certified Public Accountants, said, "Private consignment projects are public services funded by a massive amount of taxpayers' money, so fiscal verification through external audits is not a choice but a necessity," adding, "We welcome this local government ordinance amendment as a leading case that institutionalizes independent verification by accounting experts, and we expect it to spread to local governments nationwide and serve as an opportunity to enhance transparency in the nonprofit and public sector."
Meanwhile, in the National Assembly, both parties have proposed amendments to the Local Autonomy Act that would mandate audits of private consignment projects, and the Public Administration and Security Committee is reviewing the bills.