지방자치단체의 회계부정실태와 통제방안

Abstract

In the wake of often-cited accounting fraud practices in Eubari City in Japan and recent reports of fiscal stresses in Korean local governments are arising concerns about a possibility of fiscal crisis due to fiscal mismanagement and cover-up of fraudulent accounting practices. Some of the heads of Korean local governments in Korea are reported to have engaged in fraudulent accounting practices in reporting net surplus of their local governments. They tried to conceal their budget deficit by reporting that they recorded budget surplus although they were under budget deficits. Primary reasons of budget deficit arose in pursuing their ambitious campaign pledges in most cases. This study utilized local fiscal mismanagement and fraudulent accounting practices. This paper argues that local governments must introduce effective internal and external control mechanisms to avoid any potential fiscal mismanagement and fraudulent accounting practices. To be specific, local governments need to enhance government professionalism. Second, a real name system(i.e investment screen system) in government programs and projects must be introduced to hold politicians and government officials accountable. Third, a comprehensive system must be introduced to hold major actors of public policy accountable. Fourth, a periodic program evaluation, auditing, and financial condition analyses should be conducted to avoid any wrong-doings in government. Finally, an introduction of bond referendum for large-sized infrastructures projects could be considered in order to avoid inefficiency in government programs and projects.