Chapter V: Evaluation of the Efficiency of Financial Administration
The head agencies of different department shall inform the auditing agency periodically, of their evaluation of the agencies under their supervision, about the latter’s in progress in carrying out on-going programs and actual status of receipts and disbursements against the respective expenditures, on a monthly or other periodic basis.
In the submission of accounting statements and annual reports by various government agencies to the auditing agency, the performance report which describes the program implementation and budget execution shall be appended. Where there is available information on measurable job units, the cost analysis report should be appended and interpreted.
In submission of semi-annual and annual reports by government enterprises and institutions, business operation reports shall be appended thereto. Where cost accounting has been in use, the cost analysis report, together with an accompanying interpretation, shall also be appended.
In the audit of general fund agencies, the auditing agency shall pay attention to the following:
1.The standing procedure of operation for administration, finance, accounting and general services and the relevant laws and regulations;
2.The progress of on-going programs, receipt and disbursement budgets, and the execution and performance thereof;
3.The efficiency of the financial operations and sampling check of cash and properties;
4.The verification of the responsibilities relative to receivables, payables and other assets and debts;
5.Improvements should be made in the above matters.
To concerning the audit of government enterprises and institutions, audit agency shall pay attention to the following, in addition to those enumerated in the foregoing Article:
1.Accuracy in the calculation of assets, liabilities and income or loss;
2.Sources and uses of capital;
3.Efficiency in the implementation of major projects;
4.Causes of fluctuation in costs, expenses and business revenues and outlays;
5.Trend of business prospects;
6.The conditions of finance and the performance of business.
In auditing the annual reports of various government agencies or funds, the auditing agency shall pay attention to the following:
1.Violation of law, dereliction of duty or other irregularities, if any;
2.Budgetary deficit or surplus;
3.The ratio of that portion accomplished and that yet to be accomplished against the administrative plan, operational plan, or business plan;
4.The degree of economic or uneconomic operation;
5.The comparison of administrative efficiency, operational efficiency, and business efficiency among similar agencies or funds;
6.Other matters related to the annual reports.
During the auditing of the general final report of the Central Government, the auditing agency shall pay attention to the following:
1.Whether or not the revenue and expenditure of government could coordinate with the budget; if not, what's the reason?
2.Whether or not the annual revenue could balance with the annual expenditure; if not, what's the reason?
3.Whether or not the revenue and expenditure are compatible with the national economy and economic growth;
4.Whether or not the revenues and expenditures dovetail with the national policy and the administrative program of the government;
5.Recommendations for the improvement on revenues and expenditures made by all interested parties.
The above points worthy of attention are applicable in auditing the general final reports of local governments.
When auditing agencies consider the audited agencies negligence of duty or inefficiency after auditing their performance, they shall notify the authorities at the next higher level and the Control Yuan. Where the audited agencies have system defects or inadequate facilities, the auditing agencies shall provide recommendations to the audited agencies.
Where the audit may improve the efficiency or advance public welfare, the auditing agencies shall provide recommendations to the audited agencies or related agencies.
Where auditing agencies discover the potential risks which affect administrative, operational or business efficiencies of various government agencies, they shall provide the government agencies early-warning recommendations in order to respond better.
Prior to the preparation of the annual budget estimates by the government, the auditing agency shall provide recommendations concerning the audit result of the budget execution for preceding years.