Law Viewer

Back Home

LOCAL ACCOUNTING ACT

Act No. 14197, May 29, 2016

Amended by Act No. 14839, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to transparently perform accounting of local governments and efficiently manage funds by prescribing basic matters on the accounting and fund management of local governments.
 Article 2 (Definitions)
The term "head of a central government agency" in this Act means any of the following persons:
1. The head of a central administrative agency established pursuant to the Constitution of the Republic of Korea, the Government Organization Act, or other Acts;
2. The Secretary General of the National Assembly, the Minister of the National Court Administration, the Secretary General of the Department of Court Administration of the Constitutional Court, or the Secretary General of the National Election Commission.
 Article 3 (Scope of Application)
This Act shall apply to any of the following accounts or funds:
1. Each general account and special account referred to in Article 126 of the Local Autonomy Act and Article 9 of the Local Finance Act;
 Article 4 (Relations with other Acts)
Except as otherwise expressly provided for in other Acts, this Act shall apply to the accounting and settlement of a general account, special accounts, and funds of local governments.
 Article 5 (Principles of Local Government Accounting)
Accounts of local governments shall be managed in compliance with the following principles:
1. Accounting of local governments shall be performed fairly based on objective data and evidentiary documents to ensure reliability;
2. Accounting of local governments shall provide sufficient information and be performed simply and clearly so as to allow the details and outcomes of their financial activities to be easily ascertained.
 Article 6 (Fiscal Year)
(1) The fiscal year of each local government shall begin on January 1 and end on December 31 each year.
(2) The fiscal year to which each revenue and expenditure is attributed shall be prescribed by Presidential Decree.
 Article 7 (Deadline for Closing Receipt and Disbursement and Deadline for Completion of Receipt and Disbursement Affairs)
(1) The receipts and disbursements by each local government shall be closed on the date the relevant fiscal year ends: Provided, That any revenue or expenditure included in the budget for the relevant fiscal year, falling under any of the following cases, may be processed by January 20 of the following fiscal year:
1. Where it is impracticable to disburse expenditure within the relevant fiscal year because a contract has been fully performed at the end of the fiscal year;
2. Where it is impracticable to disburse expenditure within the relevant fiscal year because funds have not been paid by the State or another local government, etc.;
3. Any other cases prescribed by Presidential Decree, which make it impracticable to recognize expenditure or revenue within the relevant fiscal year.
(2) Revenues received by a treasurer referred to in Article 44 by January 20 of the following fiscal year pursuant to the proviso to the part other than each subparagraph of paragraph (1) may be paid to a treasury of the relevant local government by the same deadline, and expenses incurred in operating government agencies or day-to-day expenses (hereinafter referred to as "day-to-day expenses, etc.") may be returned by January 20 of the following fiscal year.
(3) Affairs relating to the receipt and disbursement of revenues and expenditures attributed to the relevant fiscal year, shall be completed by February 10 of the following fiscal year.
<<Enforcement Date: May 29, 2016>>
 Article 8 (Management, etc. of Affairs relating to Accounting of Local Governments)
(1) The head of a local government shall exercise overall control over and manage the affairs relating to its accounting.
(2) The Minister of the Interior and Safety shall research, develop, and implement schemes to develop relevant systems, scientific management techniques, etc. so that affairs relating to accounting of local governments can be conducted efficiently and uniformly through linkage with national accounting. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Where the head of a central government agency intends to enact, amend, or repeal any Act or subordinate statute concerning accounting affairs of local governments, he/she shall first consult with the Minister of the Interior and Safety and the Board of Audit and Inspection. In such cases, the Minister of the Interior and Safety shall hear opinions of the heads of the local governments. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 9 (Application of Matters concerning Education, Science, Sports, etc.)
With respect to sectors concerning education, science, and sports or the accounting and fund management for a special account for educational expenses under this Act, "head of a local government" and "Mayor/Do Governor" shall be construed as "Superintendent of Education"; "Minister of the Interior and Safety" as "Minister of Education"; "Ministry of the Interior and Safety" as "Ministry of Education"; "local finance" as "local education finance"; and "Ordinance of the Ministry of the Interior and Safety" as "Ordinance of the Ministry of Education," respectively. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 10 (Appointment, etc. of Accounting Officers)
(1) The head of a local government shall appoint an accounting officer assigned to exercise overall control over accounting affairs under his/her jurisdiction.
(2) An accounting officer shall perform the following duties:
1. Guidance for, and supervision of, accounting officials referred to in Article 46;
2. Matters concerning accounting business, such as internal controls referred to in Article 51;
3. Matters concerning accounting, settlement, and analysis;
4. Any other matter prescribed by Presidential Decree in relation to performance of accounting affairs.
(3) The head of a local government may designate a position in an institution under his/her jurisdiction, in lieu of the appointment of an accounting officer.
 Article 11 (Local Accounting System Deliberative Committee)
(1) A Local Accounting System Deliberative Committee (hereafter referred to as the "Committee" in this Article) shall be established under the jurisdiction of the Minister of the Interior and Safety, in order to deliberate on major policies related to local accounting, accounting and settlement systems, enactments and amendments of Acts and subordinate statutes related to local accounting, etc. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Committee shall be comprised of up to 15 persons, including one chairperson, with due consideration given to gender composition.
(3) Members of the Committee shall be appointed or commissioned by the Minister of the Interior and Safety, from among nongovernmental members prescribed by Presidential Decree, such as persons with extensive knowledge and experience in accounting affairs, and from among public officials of at least Grade III in a central government agency who have expertise in the accounting sector; but the number of members who are public officials shall not exceed 1/4 of all members of the Committee. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The chairperson shall be elected from among nongovernmental members of the Committee.
(5) Except as expressly provided for in paragraphs (1) through (4), matters necessary for the composition and operation of the Committee, shall be prescribed by Presidential Decree.
CHAPTER II ACCOUNTING STANDARDS, ETC.
 Article 12 (Local Accounting Standards)
(1) Standards necessary for keeping accounts of economic transactions, etc. arising from local financial activities, on an accrual basis by double-entry bookkeeping (hereinafter referred to as "local accounting standards"), shall be prescribed by Ordinance of the Ministry of the Interior and Safety, after the Minister of the Interior and Safety consults with the Minister of Strategy and Finance. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The local accounting standards shall be established to ensure that accounting affairs of local governments can be performed properly and that the financial status, and the details of financial operations, of local governments can be stated objectively, uniformly, and clearly.
 Article 13 (Designation, etc. of Specialized Institution on Local Accounting, etc.)
(1) In order to efficiently conduct affairs prescribed by Presidential Decree relating to local accounting, the Minister of the Interior and Safety may designate an institution satisfying the designation standards prescribed by Presidential Decree as a specialized institution assigned to conduct such affairs. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of the Interior and Safety and the relevant local government may subsidize a specialized institution designated pursuant to paragraph (1), for expenses incurred in conducting relevant affairs. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Where a specialized institution designated pursuant to paragraph (1) falls under any of the following, the Minister of the Interior and Safety may revoke its designation or issue an order for business suspension for up to six months, against the institution: Provided, That where the relevant institution falls under subparagraph 1, its designation shall be revoked: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where the relevant institution is designated by fraudulent or other wrongful means;
2. Where the relevant institution fails to satisfy a designation standard referred to in paragraph (1);
3. Where the relevant institution is deemed unfit for conducting affairs as a specialized institution because it has violated this Act or any other statute.
(4) Where the Minister of the Interior and Safety intends to revoke designation or issue an order for business suspension pursuant to paragraph (3), he/she shall hold a hearing. <Amended by Act No. 14839, Jul. 26, 2017>
(5) Matters necessary for the revocation of designation, business suspension, etc. referred to in paragraph (3), shall be prescribed by Presidential Decree.
CHAPTER III SETTLEMENT OF ACCOUNTS
 Article 14 (Process of Settlement of Accounts)
(1) The head of a local government shall prepare a statement of accounts that integrates a general account, special accounts, and funds each fiscal year; and shall entrust inspection thereof to an inspector appointed by the relevant local council pursuant to Article 134 (1) of the Local Autonomy Act.
(2) The inspector shall perform his/her duties fairly, independently of the head of the relevant local government, local council, and any other interested persons.
(3) A local council shall publically disclose an inspector's real name.
(4) The head of a local government shall endeavor to reflect the settlement of accounts in the budget for the following year.
(5) The head of a local government shall submit a statement of accounts to the Minister of the Interior and Safety, within five days from the date it requests the relevant local council to approve the statement of accounts. <Amended by Act No. 14839, Jul. 26, 2017>
(6) Except as expressly provided for in paragraphs (1) through (5), matters necessary for the standards, procedures, method, etc. for settlement, shall be prescribed by Presidential Decree.
 Article 15 (Composition of Statement of Accounts)
A statement of accounts shall consist of the following documents:
1. Outline of settlement of accounts;
2. Settlement of revenue and expenditure;
3. Financial statements (including footnotes; hereinafter the same shall apply):
(a) A statement of financial position;
(b) A statement of financial operations;
(c) A statement of changes in net assets;
4. A performance report.
 Article 16 (Preparation, etc. of Statement of Accounts)
(1) Each outline of settlement of accounts referred to in subparagraph 1 of Article 15, shall summarize details under subparagraphs 2 through 4 of Article 15, and shall be prepared to ensure that residents can readily understand it.
(2) The settlement of revenue and expenditure referred to in subparagraph 2 of Article 15, shall be prepared by integrating the results of execution thereof according to the same classification as that of either the budget of revenue and expenditure, or of the relevant fund management plan.
(3) Financial statements referred to in subparagraph 3 of Article 15 shall be prepared in compliance with local accounting standards, accompanied by audit report by a certified public accountant under the Certified Public Accountant Act.
(4) The performance report referred to in subparagraph 4 of Article 15 shall be prepared by comparing the performance objectives specified in the performance plan under Article 5 (2) of the Local Finance Act, with actual results; the project cost shall be linked to performance.
(5) Matters necessary for the method, etc. of preparing the outline of settlement of accounts referred to in paragraph (1); and the settlement of revenue and expenditure referred to in paragraph (2), shall be prescribed by Presidential Decree.
 Article 17 (Documents Accompanying Statement of Accounts)
(1) The statement of accounts referred to in Article 15 shall be accompanied by the following documents:
1. A detailed statement of continuing expenditure;
2. A detailed statement of the use of income-generating expenses;
3. A detailed statement of carryovers and a detailed statement of execution of specified carryover funds;
4. A gender-specific statement of accounts;
5. A local tax disbursement report under Article 5 of the Restriction of Special Local Taxation Act (based on actual results);
6. A detailed statement of repayment of Government subsidies or City/Do subsidies;
7. A report on consolidated regional finance statistics under Article 59 of the Local Finance Act (based on settled accounts);
8. A report on issuance of local government bonds;
9. A report on investment in, and contribution to, local public enterprises;
10. A report on investment in, and contribution to, local government-invested or -funded institutions;
11. A report on public property and commodities;
12. Any other document prescribed by Presidential Decree.
(2) The financial statements referred to in subparagraph 3 of Article 15 shall be accompanied by the following documents:
1. A report on financial operations by nature;
2. A detailed statement of tangible assets;
3. A detailed statement of depreciation;
4. Any other document prescribed by Presidential Decree.
 Article 18 (Preparation and Submission of Gender-Specific Statement of Accounts)
(1) The head of a local government shall prepare a report evaluating as to whether men and women have benefited equally from the budget and whether the budget has been executed to reduce gender discrimination (hereinafter referred to as "gender-specific statement of accounts").
(2) The statement of accounts referred to in Article 15 shall be accompanied by a gender-specific statement of accounts.
(3) Except as otherwise expressly provided for in paragraphs (1) and (2), matters necessary for preparing gender-specific statements of accounts shall be prescribed by Presidential Decree.
 Article 19 (Appropriation of Surplus Accruing from Settlement of Accounts)
Where any surplus accrues upon settlement of revenue and expenditure at the end of a fiscal year, a local government may appropriate the surplus remaining after deducting either of the following amounts, to repay the principal of and interest on local government bonds by the fiscal year following the year during which such surplus accrues, irrespective of the expenditure budget:
1. An amount prescribed for use in other Acts;
2. An amount carried over under Article 50 of the Local Finance Act.
CHAPTER IV INCOMES
 Article 20 (Collection and Receipt of Revenues)
Local taxes and other revenues shall be collected or received, as prescribed by Acts, subordinate statutes, municipal ordinances, and rules.
 Article 21 (Revenue Collection Agencies and Methods of Collection)
(1) Local taxes and other revenues shall be collected by the heads of local governments, who may delegate the collection of local taxes and other revenues to public officials under his/her jurisdiction.
(2) Where the heads of local governments or public officials delegated to collect local taxes and other revenues (hereinafter referred to as "revenue collector") collect local taxes and other revenues, they shall issue a payment notice to taxpayers after examining and determining the ground for collection and the amount collectible.
 Article 22 (Receiving Agencies)
(1) Local taxes and other revenues shall be received only by public officials in charge of receiving and disbursing such revenues (hereinafter referred to as "treasurer receiving and disbursing revenues"): Provided, That this shall not apply where such duties are entrusted to a treasury established by a local government (including a treasury for the special accounts of educational expenses; hereinafter the same apply) or to a postal office.
(2) Where a treasurer receiving and disbursing revenues, directly receives local taxes and other revenues, he/she shall pay, without delay, such local taxes and other revenues to a treasury of the relevant local government.
 Article 23 (Separation of Collection Agencies from Receiving Agencies)
No revenue collector shall concurrently perform the duties of receiving cash and the duties of disbursing cash: Provided, That the same shall not apply where a ground prescribed by Presidential Decree exists.
 Article 24 (Temporary Loans)
(1) Where temporary loans are necessary to make payments within the scope of expenditure appropriated in the budget, the head of the relevant local government shall obtain a prior resolution on the limit by account from the relevant local council each fiscal year.
(2) Temporary loans shall be repaid with the incomes of the relevant fiscal year.
 Article 25 (Prohibition of Direct Spending of Revenues)
The head of a local government, its subsidiary institutions, and affiliated administrative agencies, shall pay all incomes of the local government to designated receiving agencies, and they shall not directly spend such incomes unless otherwise expressly prescribed by this Act or any other Act.
 Article 26 (Direct Spending of Income-Generating Expenses)
(1) Notwithstanding Articles 22 and 25, the head of a local government and its affiliated administrative agencies may directly disburse expenses prescribed by Presidential Decree in relation to the income generated by supplying services or facilities (hereinafter referred to as "income-generating expenses") to the extent that such income is secured: Provided, That where the income exceeds or is likely to exceed the budget, such excess income may be spent on expenses directly relating to such surplus or accompanying expenses, as prescribed by Presidential Decree.
(2) The head of a local government may separately appoint a treasurer receiving and disbursing income-generating expenses, in order to keep separate accounts of income-generating expenses.
 Article 27 (Return of Incomes and Disbursements for Preceding Fiscal Year)
(1) Income belonging to the fiscal year, for which receipts and disbursements have been closed, or income other than the budget shall be included in the revenue of the current fiscal year.
(2) Where an amount disbursed as expenditure is returned before the deadline for closing receipt and disbursement under Article 7, it shall be returned to the relevant item for the expenditure disbursed.
 Article 28 (Return of Overpaid or Erroneously Paid Money)
(1) Overpaid or erroneously paid money shall be returned from the revenue of the fiscal year, during which such money should be returned.
(2) Where overpaid or erroneously paid money is to be returned pursuant to paragraph (1), interest thereon shall be paid, as prescribed by Presidential Decree: Provided, That where payment of interest on overpaid or erroneously paid money is otherwise expressly provided for in another Act, such Act shall govern.
CHAPTER V DISBURSEMENT
 Article 29 (Obligations)
(1) The head of a local government shall enter into a contract or engage in any other activity which incurs disbursement (hereinafter referred to as "obligation") by the local government, but he/she may commission a public official under his/her jurisdiction to incur such obligation.
(2) Where the head of a local government or a public official commissioned to incur obligations (hereinafter referred to as "financier") incurs any obligation, he/she shall do so within the limit of the apportioned budget as prescribed by Acts, subordinate statutes, municipal ordinances, and rules: Provided, That the same shall not apply where other Acts prescribe otherwise.
 Article 30 (Obligations for Specified Carryover Funds Stretching over Following Fiscal Year)
In extenuating circumstances, regarding budget execution for specified carryover funds, a financier may incur an obligation that should be performed from the current fiscal year until the following fiscal year.
 Article 31 (Procedures for Disbursement)
Where a financier incurs any obligation according to the expenditure budget under his/her jurisdiction, he/she shall dispatch documents relating to such obligation, to a public official appointed by the head of the relevant local government (hereinafter referred to as "disbursement officer").
 Article 32 (Payment Orders)
Where a disbursement officer disburses funds to perform an obligation, he/she shall issue a payment order to the treasury of the relevant local government, instead of paying in cash.
 Article 33 (Restrictions on Payment Orders)
No disbursement officer shall issue any payment order, unless payment is made to a person who holds a claim to the relevant local government pursuant to Acts, subordinate statutes, municipal ordinances, rules, contracts, or on any other justifiable grounds: Provided, That the same shall not apply where the disbursement officer delivers funds to a treasurer referred to in Article 44 or to a treasury of the local government.
 Article 34 (Payment of Day-to-Day Expenses, etc. to Local Government Offices)
(1) Where the head of a local government deems that performing duties is likely to be obstructed given the nature of the duties if day-to-day expenses, etc. are not paid in cash, he/she may require a disbursement officer to pay necessary funds to a treasurer receiving and disbursing day-to-day expenses, etc. referred to in Article 44 (3), so that the treasurer can pay the day-to-day expenses in cash.
(2) Where the head of a local government deems the payment of day-to-day expenses, etc. referred to in paragraph (1) especially necessary, he/she may require a disbursement officer to pay relevant funds to a treasurer receiving and disbursing day-to-day expenses, etc. referred to in Article 44 (3) before the beginning of the relevant fiscal year.
(3) The head of a local government may require a disbursement officer to deliver funds necessary to pay the principal of and interest on local government bonds to a treasury of the local government.
(4) The scope of day-to-day expenses, etc., procedures for paying day-to-day expenses, and other matters, shall be prescribed by Presidential Decree.
 Article 35 (Advance Payment and Payment by Estimate)
Where clerical affairs or projects are likely to be obstructed given the nature of expenses if freight, charterage, travel expenses, and other expenses prescribed by Presidential Decree, are not paid in advance or according to an estimate, a disbursement officer may pay such expenses in advance or according to an estimate.
 Article 36 (Separation of Agencies in Charge of Disbursement from Agencies in Charge of Receipt and Disbursement)
None of the duties of a financier, of a disbursement officer, and of cash receipt and disbursement, shall be performed concurrently by one person: Provided, That the same shall not apply where Presidential Decree expressly prescribes otherwise.
 Article 37 (Disbursement during Preceding Fiscal Year)
An expense not disbursed as debt obligations verified during the preceding fiscal year, may be disbursed from the expenditure budget for the current fiscal year; no amount to be disbursed shall exceed an unused portion of the amount allocated for each policy project of the fiscal year to which such expense is attributed: Provided, That the same shall not apply to any expense attributed to any supplementary purpose separately prescribed by Presidential Decree in light of its nature.
CHAPTER VI CASH AND SECURITIES
 Article 38 (Establishment of Treasuries)
(1) The head of a local government shall designate banks established under the Banking Act, as treasuries to perform the duties of receiving, disbursing, and holding cash attributed to him/her and securities owned by him/her or in his/her custody, as well as any other treasury duties: Provided, That where any of the following financial institutions meets the stability standards prescribed by Presidential Decree, he/she may designate such financial institution as a treasury for special accounts and funds only:
1. A cooperative providing credit services, defined in subparagraph 1 of Article 2 of the Agricultural Cooperatives Act;
2. A cooperative providing credit services, defined in subparagraph 4 of Article 2 of the Fisheries Cooperatives Act;
3. A cooperative providing credit services, defined in subparagraph 1 of Article 2 of the Forestry Cooperatives Act;
4. A community credit cooperative defined in Article 2 (1) of the Community Credit Cooperatives Act;
5. A credit union defined in subparagraph 1 of Article 2 of the Credit Unions Act.
(2) Where the head of a local government designates a treasury pursuant to paragraph (1) or alters any designated treasury, he/she shall publicly announce such designation or alteration and any other important matters prescribed by Presidential Decree; and shall immediately report the aforesaid matters to the Minister of the Interior and Safety in cases of the Special Metropolitan City, a Metropolitan City, a Metropolitan Autonomous City/Do, or a Special Self-Governing Province and to the Special Metropolitan City Mayor, the relevant Metropolitan City Mayor, or the relevant Do Governor in cases of a Si, Gun, or autonomous Gu. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The number of treasuries shall not exceed two.
(4) The criteria for designating treasuries and other necessary matters shall be prescribed by Presidential Decree.
 Article 39 (Diversion of Cash for Budget)
Where budgetary cashflow is insufficient when accounts are kept, a local government may divert funds from another account only within the same fiscal year; such diverted funds shall be repaid with revenues for such fiscal year. In such cases, the local government may choose to exempt such diverted funds from interest.
 Article 40 (Inspection of Treasuries)
The head of a local government may inspect the receipt, disbursement, and holding of cash and securities of the local government, which are managed by treasuries.
 Article 41 (Responsibilities of Treasuries to Compensate for Losses)
The Civil Act and the Commercial Act shall apply to the responsibilities of a treasury to compensate for any loss inflicted on a local government in connection with receipt, disbursement, and custody of cash or securities managed by such treasury for the local government.
 Article 42 (Restrictions on Management of Public Funds)
No head of a local government shall permit any person, other than those prescribed or delegated by Acts and subordinate statutes, to perform any of the duties of collecting, receiving, keeping, managing, or disbursing public funds.
 Article 43 (Restrictions on Management of Cash)
No head of a local government shall keep or disburse any funds of the local governments in cash, except in cases prescribed by Presidential Decree.
CHAPTER VII ACCOUNTING OFFICIALS
 Article 44 (Treasurers)
(1) Treasurers shall be appointed by the heads of local governments or public officials commissioned by the heads of local governments, to appoint them from among affiliated public officials.
(2) Treasurers shall receive, disburse, and keep cash or commodities, as prescribed by Acts, subordinate statutes, municipal ordinances, and rules.
(3) Treasurers shall be categorized into treasurers receiving and disbursing income-generating expenses; treasurers receiving and disbursing revenues; treasurers receiving and disbursing day-to-day expenses, etc.; treasurers receiving and disbursing cash other than revenues and expenditures; and treasurers receiving and delivering commodities, etc.
 Article 45 (Integrated Financial Disbursement)
(1) In order to efficiently use funds, the head of a local government shall integrate separate disbursements of each local government office and manage the integrated disbursement, except in extenuating circumstances.
(2) For the integrated management of financial disbursements, the head of a local government shall have an integrated disbursement officer as prescribed by Presidential Decree, except in extenuating circumstances.
 Article 46 (Appointment or Delegation of Accounting Officials)
The appointment of revenue collectors, financiers, property management officers, commodity management officers, credit management officers, liability management officers, disbursement officers, treasurers and their agents, persons commissioned to perform some of their duties, etc. (hereinafter referred to as "accounting official"); and official posts may be designated in lieu of the delegation of such duties to other public officials, which posts may be established in relevant affiliated agencies, by the heads of relevant local governments.
 Article 47 (Duties Performed on Behalf of Accounting Officials and Performance of Some Duties of Accounting Officials)
If deemed necessary, the head of a local government or a delegated public official, may appoint a public official to perform all of the duties of an accounting official on his/her behalf; or may delegate some of the duties to such public official.
 Article 48 (Special Cases concerning Appointment of Accounting Officials)
(1) The head of a local government may appoint a public official of a State agency or another local government as an accounting official, with the approval of the head of such agency or local government, if necessary to perform duties.
(2) This Act shall apply to accounting officials referred to in paragraph (1), and the provisions concerning the performance of relevant duties in Acts and subordinate statutes relating to accounting, shall apply mutatis mutandis to such accounting officials.
 Article 49 (Responsibilities of Accounting Officials)
The Act on Liability of Accounting Personnel, etc. shall apply to the responsibilities of accounting officials.
 Article 50 (Financial Guaranty of Accounting Officials)
(1) No accounting official (including persons defined in subparagraph 2 (b) of Article 2 of the Act on Liability of Accounting Personnel, etc.), shall take charge of his/her duties without providing a financial guaranty.
(2) The limit on financial guaranties referred to in paragraph (1), shall be prescribed by Presidential Decree.
CHAPTER VIII SUPPLEMENTARY PROVISIONS
 Article 51 (Internal Controls)
(1) In order to keep accounts properly and prevent public officials from committing malfeasance or irregularities, the head of each local government shall require an accounting officer referred to in Article 10, to implement internal controls by managing or supervising matters, etc. on accounts kept by accounting officials.
(2) The head of each local government shall determine procedures and methods necessary for implementing internal controls under paragraph (1).
(3) Basic matters on the procedures and methods referred to in paragraph (2), shall be determined by the Minister of the Interior and Safety after consultation with the Board of Audit and Inspection of Korea. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 52 (Keeping of Account Books, Reporting, etc.)
Accounting officials and the treasuries of local governments, shall keep books of account, record and manage necessary matters in such books, and submit reports on their respective duties, to the heads of local governments, as prescribed by Presidential Decree.
 Article 53 (Notification of Guidelines for Preparing Statement of Accounts)
The Minister of the Interior and Safety may prepare guidelines for settlement of accounts and notify the head of each local government thereof, so that their respective settlement of accounts can be prepared properly. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 54 (Education for Accounting Officials, etc.)
(1) The head of a local government shall conduct education for affiliated accounting officials, etc. to enhance their expertise in performing accounting affairs under his/her jurisdiction.
(2) If deemed necessary, the head of a local government may entrust education for accounting officials, etc. to a specialized educational institution or organization relating to accounting, designated by the Minister of the Interior and Safety. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Details of education for accounting officials, etc. referred to in paragraph (1) and entrustment of such education referred to in paragraph (2) shall be prescribed by Presidential Decree.
 Article 55 (Management of Fractions)
Any amount less than ten won in any revenue or expenditure of a local government may be written off, and any balance of less than ten won may be rounded to zero: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as where revenues are collected in installments.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 7 shall enter into force on the date of its promulgation.
Article 2 (Applicability to Settlement of Accounts)
The provisions of Chapter III shall begin to apply from the first settlement of accounts for the fiscal year in which this Act enters into force.
Article 3 Omitted.
Article 4 (Relations with other Acts and Subordinate Statutes)
A citation of any of the provisions of the former Local Finance Act in any other Act or subordinate statute as at the time this Act enters into force, shall be deemed a citation of this Act or the corresponding provisions of this Act, in lieu of the former provisions, if such corresponding provisions exist herein.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 5 of this Addenda, amended parts of the Acts which were promulgated before this Act enters into force but the enforcement dates of which have not arrived, shall enter into force on the enforcement date of the relevant Act, respectively.
Articles 2 through 6 Omitted.