Daejeon, Jeonbuk, and 4 Other Education Offices Selected as 'Outstanding Local Education Finance Offices'

Ministry of Education Releases Analysis Results for Fiscal Year 2022

The Ministry of Education announced the results of the 2023 local education finance analysis conducted on 17 metropolitan and provincial offices of education on the 19th.

To promote the soundness and efficiency of local education finance, the Ministry of Education comprehensively analyzes the financial management status of metropolitan and provincial offices of education every year in accordance with Article 55 of the Local Finance Act. This time, the overall operation of local education finance for the 2022 fiscal year was analyzed using 14 indicators across three areas: soundness, efficiency, and accountability. As a result, six outstanding offices of education, including Daejeon and Jeonbuk, were selected.

Additionally, considering the differences in financial conditions between cities and provinces, evaluations were conducted separately for cities and provinces. To ensure fairness and expertise, the analysis was carried out through the “Finance Analysis Committee,” composed of external experts from various fields such as education and finance.

As a result of analyzing the operation status of local education finance for the 2022 fiscal year, most indicator values in the areas of soundness, efficiency, and accountability were found to be at a favorable level. However, some indicators, such as the ratio of unused and unspent funds, showed deterioration compared to the previous year, indicating a need for improvement efforts. The revenue settlement amount for local education finance in the 2022 fiscal year was 109.9 trillion KRW, and the expenditure settlement amount was 102.2 trillion KRW. Due to improved tax revenue conditions, additional funds were allocated during the year, leading to an increase in both revenue and expenditure scales.

The integrated financial balance ratio of local education finance was 23.41%, with the surplus scale expanding compared to the previous year due to increased revenue, including local education finance grants. The debt balance of metropolitan and provincial offices of education was fully repaid except for the principal and interest balance of private investment projects (BTL), and the managed debt ratio decreased by 2.25 percentage points compared to the previous year.

As a result of promoting measures such as the sunset system for earmarked project funds to enhance the autonomy of school financial management, the ratio of earmarked project funds in public schools improved compared to the previous year. However, due to the government’s supplementary budget formulation and the allocation of additional funds during 2022, indicators such as the ratio of unused and unspent funds and budget execution rates deteriorated compared to the previous year. The operation of resident participation budgets, disclosure of local education finance information, and the purchase ratio of products from socially disadvantaged enterprises were generally at a favorable level.

Six offices of education (three city regions and three provincial regions) were selected as outstanding based on the local education finance analysis results, and the outstanding metropolitan and provincial offices of education will be awarded commendations from the Minister of Education. The Daejeon Metropolitan Office of Education, selected as the best in the city region, showed excellence in indicators such as the ratio of earmarked project funds in public schools and the ratio of unused and unspent funds in the special education expense account. The Jeollabuk-do Office of Education, selected as the best in the provincial region, received high evaluations in indicators such as the ratio of unspent funds in the special education expense account.

Kim Cheonhong, Director of the Education Autonomy Cooperation and Safety Bureau, stated, “As uncertainty in revenue conditions intensifies, it is a time when sound and efficient financial management is necessary,” and added, “We will encourage the reflection of the finance analysis results in the budget review process of metropolitan and provincial councils, as well as in the improvement of the structure and operation of local education finance.”

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