Basic Report

This study reviews local grants management system, operation process, and performance evaluation system, and seeks to the improvement plans to integrated management system of local grants.
   In 2014, local grants management and performance 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.
   Recent, with respect to expanding local autonomy, government has pushed forward to financial decentralization. In hence, local grants management system is also modified such as abolition to limited amounts by departments and exemption to local grants with employment.
   Nevertheless, local governments have some problems to manage and evaluation local grants. It is because that local governments run many and various local grants. This results in poorly management to local grants with manpower and fiscal shortage. So, central government plans to improve local grants management system using enacting to local grants.
   Therefore, this study is to suggest improvement plans to local grants focusing on types and characteristics of local grants. For doing so, this study is to review the definition, current condition and several cases of local grants. Also, 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 types and characteristics of local grants. Especially, with regard to management and performance evaluation systems, it seeks to classification plans to local grants using operation process and management steps.
   Second, in the view point of local grants delivery system, first of all, this study suggests improvements to extermination abuse or compliance failure. In addition, with regard to delivery system of local grants, this study suggests to separate to new local grant and a continuing grant.
   Third, the current issues regarding performance 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.
   For doing so, this study reviews financial data of 243 local governments, analyze local grants lists using all types of local grants of sample local governments, and link current issues of local grnats to improvement plans.
   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.