Suwon Metropolitan City Audit Office Saves 3.4 Billion Won in Budget Through Contract Cost Review and Preventive Monitoring Audits Last Year

[Suwon Ilbo=Reporter Jung Jun-sung] The Suwon Metropolitan City Audit Office achieved significant cost savings of 3.4 billion won over the past year through contract cost reviews and preventive monitoring audits of large-scale projects.

According to the city on the 13th, the city's audit office conducted 'contract cost reviews' on 276 projects (with a total review amount of 95.2 billion won) among projects commissioned by the city, district offices, worksites, and public institutions, including construction projects of 200 million won or more and service contracts of 70 million won or more, resulting in savings of 2.68 billion won.

Contract cost review is conducted to ensure sound and efficient fiscal management by examining and reviewing the appropriateness of base amounts, estimated prices for bidding and contracting, and design change amounts for projects commissioned by local governments. The audit office reviews the appropriateness of cost calculations presented by the commissioning departments to prevent budget waste in advance.

Additionally, by monitoring 2 large-scale projects, the office saved 720 million won in budget. By identifying solutions to problems that could occur during project implementation, the office enhanced the quality of project completion. Preventive monitoring audits are conducted to identify problems with major projects and policy initiatives in advance and to develop improvement measures at appropriate times.

Meanwhile, the city has been operating the contract cost review system since establishing the 'Suwon City Contract Review Work Processing Rules' in 2011.

A city official stated, "Before project implementation, we will use contract cost reviews to block budget waste factors in advance, and for ongoing projects, we will prevent poor workmanship through preventive monitoring audits," adding, "The past audit method focused on post-detection had limitations in reversing incorrect results, but the preventive monitoring audit system is expected to resolve many of these issues."