Research Report
A study on rationalization of operation of total project cost management guidelines under the National Finance Act
Ⅰ. Backgrounds and Purposes
▶ A study on the application standards of the sanctions system to secure the effectiveness of the guidelines in the 「Total Project Cost Management Guidelines」
○ Searching for ways to secure individual validity while maintaining general equity when applying sanctions in the “Total Project Cost Management Guidelines” to actual cases
○ The main content is to analyze the requirements and effects of sanctions as the main method of analysis of laws and regulations, but research on public law issues derived from the characteristics of the relationship expected by each sanction.
Ⅱ. Major Content
▶ The total project cost management system under the National Finance Act is a system for rationally managing the total budget from the feasibility of large-scale projects.
○ ‘Management’ of total project cost refers to the process of ensuring that the total budget for large-scale projects is reasonably determined.
○ The basic direction of total project cost management is designed to minimize changes by project promotion stage and work type, and consult with the financial authorities for important changes.
▶ The core of the total project cost management system under the National Finance Act is the procedural norm that the head of a central government agency must consult with the financial authorities when the budget for a large-scale project is initially determined and when it is changed.
○ Looking at the precedents that reached the Supreme Court due to the violation of the obligation to consult between administrative agencies stipulated in the statute, the defect in the procedure was judged as the reason for cancellation.
▶ If the requirements for sanctions are met, the total project cost and basic expenses of the institution must be included in the sanctions.
○ Among the sanction methods according to Article 111 of the Guidelines, the method that can be used as an effective sanction is the method of reducing the basic expenses of the institution.
▶ Article 112 of the guidelines stipulates that the Minister of Strategy and Finance requests the head of a central government agency to impose sanctions on related public officials.
○ The extent to which the Minister of Strategy and Finance can request sanctions from the heads of other central government agencies is limited by the disciplinary authority of the heads of central government agencies.
○ If the head of a central government agency who has received a request for sanctions accepts the facts claimed by the Minister of Strategy and Finance as it is, he/she may request a disciplinary decision on the grounds of ‘violation of the law’ of violating guidelines.
Ⅲ. Expected Effects
▶ In terms of external relations other than the budget aspect, if an act in the conduct of a large-scale project violates these guidelines, it is a violation of the obligation to consult between administrative agencies and contains a defect that is a reason for cancellation.
○ Each financial entity is obliged to strictly abide by the Finance Act regarding the operation of utilizing finance, which is a key means of carrying out the duties of its own jurisdiction.