Basic Report

This study analyzes management system, operation process, and evaluation system with regard to local grants, and then seeks to the improvement plans to management and evaluation system of local grants.
   In May 2014, local grants management and evaluation system was enacted through amendment to Local Finance Act. Therefore, local governments should abide by the law with respect to organizing, managing and evaluating local grants. In addition, local governments must reflect the result of performance evaluation of their local grants in FY 2016 budget. However, local governments have a difficult in evaluation of local grants, especially performance evaluation, because the standard of local grant evaluation is in very poor condition.
   This study is to review the definition, current condition, and several cases of local grants, and then to suggest improvement plan to local grants evaluation system. For doing so, this study reviews the current standard of local grant performance evaluation, analyzes current condition and weakness of local grants evaluation system, and suggests improvement plan to evaluation system of local grants.
   The major points are followings. First in the view point of management system, this study suggest improvements with respect to changes in law and manual and management process of local governments regarding local grants. Especially, with regard to local grant ceiling system, it needs to exclude matching funds to policy programs of higher level of governments.
   Regarding to operation system, it needs to pay more attention to the role of residents.
   In addition, with respect to local grant review committee, this study suggests that it needs to invite an outside-expert in order to compensate expertise of committee members. For doing so, this study suggests that it needs to establish sub-committees in local grant review committee.
   Second, in the view point of evaluation system, first of all, this study suggests improvements with respect to dual evaluation system such as new local grant and a continuing grant. Next, the current issues regarding evaluation system, local grant evaluation system depends upon the qualitative evaluation. Hence, the reliability of evaluation gets lower. Therefore, this study suggests to expand the quantitative evaluation in terms of objective materials. And the qualitative evaluation targets to necessity of local grants program.
   Third, in the view of point of the similar or overlapped local grant programs, this study proposes two processes of judgment. First standard is application forms such as business plan and a statement of accounts. Second standard is confirmation process of public officers in budget bureau. Also, this study suggests the standards of judgment to similar or overlapped local grant programs. The standards are followings: 1) whether the subject of local grant is similar or overlapped, 2) whether the recipients of local grant is similar or overlapped, 3) whether the legal basis of local grant is similar or overlapped, 4) whether the details of local grants are similar or overlapped.