Preventing Embezzlement at the Source! ... Geumcheon-gu Establishes a Secure Financial Administration System

[Seoul District News] Geumcheon-gu Conducts Full Audit of Public Fund Accounts and Establishes Systematic Management System ▲ Monthly Verification of All Public Fund Account Transactions by Department Heads ▲ Internet Banking Withdrawal Function Blocked, Cash Handling by Non-Daily Expense Cashiers Prohibited

[Asia Economy Reporter Jong-il Park] Geumcheon-gu (Mayor Yu Seong-hoon) recently established a financial administration system that systematically manages everything from the opening of public fund accounts to execution and monitoring, in order to prevent embezzlement incidents that have frequently occurred in public institutions.

Geumcheon-gu identified the main causes of public fund embezzlement incidents as abuse of public fund account openings, negligence in supervision, unnecessary use of internet banking, and forgery of official documents, and prepared countermeasures accordingly.

First, in collaboration with the treasury bank, a full survey was conducted on all public fund accounts to eliminate unnecessary accounts, and the account names were required to specify the responsible department, team, and task.

As a public fund account management measure, Geumcheon-gu strengthened the confirmation by the responsible team leader and department head of the deposit and withdrawal details of each department's accounts every month, separately from the annual accounting audit, institutionalizing the process so that approval is made through the ‘work management system.’ This was based on the fact that most embezzlement cases occur through forgery of official documents, so the manager is required to check detailed deposit and withdrawal records of accounts that cannot be forged.

Second, withdrawal procedures that do not go through the local finance management system (e-Hojo) were strictly restricted. The ‘internet banking withdrawal function’ of corporate cards and Zero Pay accounts held by departments was basically blocked to prevent withdrawals from public fund accounts to personal accounts.

Third, cash handling by persons other than the designated daily expense cashier was prohibited to eliminate the possibility of illegal activities.

Additionally, the Finance Division, which oversees expenditure and fund management, inspects detailed execution cases of corporate cards and Zero Pay accounts of each department quarterly, and at the end of each year, identifies the status of public fund accounts to terminate dormant (unused) accounts, securing additional safety measures.

Geumcheon-gu expects that this systematic financial administration system will not only prevent embezzlement of public funds but also further enhance the transparency of the district’s financial fund operation and public fund account management.

Yu Seong-hoon, Mayor of Geumcheon-gu, said, “With the establishment of a systematic financial administration system for public fund accounts, illegal activities can now be blocked,” and added, “I hope the institutional improvement system prepared by Geumcheon-gu will spread nationwide and help prevent illegal activities.”

For more details, inquiries can be made to the Finance Division of Geumcheon-gu Office.

This content was produced with the assistance of AI translation services.