Preventive Audit Yields Strong Results... Gumi City Saves 5.9 Billion Won

Strengthening Financial Soundness Through Active Preventive Audits Last Year

Gumi City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Gumi City, Gyeongbuk Province (Mayor Kim Jang-ho) was evaluated to have achieved nearly 6 billion KRW in budget savings last year due to preventive audits.

Gumi City announced on the 2nd that it achieved results in improving financial and administrative efficiency by promoting various preventive audit activities last year.

Through routine audits before project implementation, including cost estimation and design appropriateness reviews, as well as contract cost examinations, 822 projects were reviewed, resulting in a budget saving of 5.9 billion KRW.

By sector, 402 construction projects saved 5.1 billion KRW, 167 service projects saved 500 million KRW, and 253 other projects such as supplies saved 300 million KRW respectively.

In particular, despite the total audited amount in the construction sector decreasing by 36.5 billion KRW due to the increase in the target base amount, it is analyzed that the results exceeded 700 million KRW compared to 4.4 billion KRW (a saving rate of 1.8%) the previous year.

Major cases showed savings of 1.848 billion KRW in A preventive construction, 235 million KRW in B development construction, and 182 million KRW in C expansion construction.

In the construction sector, which had significant savings effects, specialized auditors in each trade (civil engineering, architecture, electrical, mechanical, etc.) collaborated to intensively analyze the appropriateness of costs and thoroughly review to derive optimal project costs. To revitalize the local economy, the audit processing period was minimized, contributing to the prompt execution of the budget.

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