Gwangju City Continues to Improve and Supplement the Semi-Public Bus Operation System

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 9th that it will promptly prepare countermeasures for the 16 cases pointed out as a result of the specific audit on the quasi-public transportation system by the Audit Committee, and will continuously improve and supplement the city bus quasi-public transportation system.

The Audit Committee conducted a specific audit from August 19 to December 20 last year, and as a result, pointed out 16 cases including the calculation of standard transportation costs and the settlement of vehicle maintenance costs, issuing corrective actions, cautions, improvements, and recommendations.

Reflecting the audit results, Gwangju plans to first improve and revise the standards for calculating standard transportation costs for vehicle maintenance costs, improper settlement of vehicle maintenance costs (external repair costs), and improper management of driver insurance premium maturity refunds within this month.

Issues such as improper calculation of appropriate profit, improvement of standard transportation cost calculation for standby vehicles, and improvements related to the hiring of transportation company employees will be addressed by conducting a separate service through an accounting firm to prepare improvement plans based on objective data review results.

Regarding the criticism that the appropriate profit for city buses was not saved by 6.9 billion KRW over four years, it was because, in the early stages of implementing the quasi-public transportation system to reduce transportation costs, 100 large vehicles were replaced with medium-sized vehicles that cost 170,000 KRW less in transportation costs, and inevitably, the appropriate profit calculation method was applied as a fixed payment method instead of the total cost method. Although this resulted in a positive effect of reducing transportation costs by 6 billion KRW annually, following the audit's criticism, the appropriate profit calculation method will be changed to the total cost method, and a reasonable appropriate profit will be calculated by vehicle type through a commissioned service.

For improper execution amounts related to negligence in calculating and settling depreciation costs of transportation vehicles, establishing standards for items excluded from standard transportation costs, excessive calculation of other welfare expenses, and improper settlement of incidental profits, a re-settlement will be conducted through on-site inspections of all city bus companies by the 14th, and transportation costs that were improperly executed will be recovered.

Excessively calculated other welfare expenses for transportation workers will be offset when paying transportation costs over the next three years.

Regarding the improvement of scoring for cost management items in management evaluations, the management evaluation manual will be revised. For negligence in managing cash receipt programs and verifying the appropriateness of cash collection, monthly inspections of cash income management will be conducted. For improper guidance and supervision regarding failure to conduct criminal background checks, guidance and supervision will be carried out to verify qualifications when hiring drivers.

The city also plans to actively respond to operational negligence such as failure to install the bus management system, matters related to the operation of the transportation facility improvement fund, and insufficient verification of project expenses related to city bus transportation cards.

This audit result is a continuation of the quasi-public transportation system innovation T/F operation promoted last year and is largely reflected in the city bus quasi-public transportation system operation improvement plan. Gwangju City will comprehensively review the issues pointed out in this audit and continuously promote system improvements and supplements to make the city bus quasi-public transportation system efficient and transparent.

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