A Study on the Performance Analysis and Improvement of FundsSubmitted by siadmin on Tue, 12/27/2022 - 15:24
The purpose of this study was to performance analysis and improvement of funds. A fund is an accounting established, when it is necessary to hold a specific fund to achieve a specific purpose. Local governments are increasingly installing funds, because the fund can flexibly change business plans as well as expenditures. Over the past decade, the number of funds established by the Seoul Metropolitan Government has continued to increase, and the size of the fund's operation has nearly doubled from 2.5 trillion won to 4.7 trillion won.
This study analyzed the performance of the increase in the Seoul Metropolitan Government Fund and suggests ways to improve the fund system.
The performance of the Seoul Metropolitan Government Fund was evaluated based on four indicators: validity of the purpose of installation, overlapping with general accounting, fiscal soundness, and effectiveness of individual projects.
As a result of the performance analysis, the Seoul Metropolitan Government Fund has four limitations. First, social welfare funds, gender equality funds, and sports promotion funds have low validity for the purpose. Second, many of the fund projects overlap with general accounting projects. Third, the expenditure of the fund exceeds the revenue. Fourth, fund projects are inefficient and ineffective.
The Seoul Metropolitan Government should improve the fund system to resolve the problem of the fund. First, from a long-term perspective, it is necessary to establish a fund's revenue and expenditure plan to secure fiscal soundness. Second, fund projects should be incorporated into the performance management system. Third, when deliberating on the fund management plan, the budget department should participate to review redundancy. Finally, the effectiveness must be secured, so that the Fund Management Review Committee can evaluate the performance of the fund project.