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Since the adoption of the Accrual and Double-Entry Accounting System in
2007, it has been implemented to produce more financial information necessary
to have the transparency of public finance, better fiscal responsibility, and
performance evaluation. In order for this system to function well, then there
should be accompanied by accrual basis.
At present, we tried to adopt program budgeting system. This budget
system, however, is based on cost accounting. Even though program budgeting
system is adopted and implemented, we have had difficulty finding the better
waysto estimate the cost, since the present 'Accrual and Double-Entry
Accounting System' have focused on total financial report of every municipalities.
Therefore, this paper tries to make suggestions in order to solve this
problem by finding out the remedy for the present Accrual and Double-Entry
Accounting System, and making use of the figures extracted from it. The result
shows that there should be more efforts to complement the present system and
make the principle for counting the cost. That is, a lot of inappropriate things
have been found in case of program cost accounting in the present system, we
could make better calculation of program cost by complementing and improving it.
Based on this result, we can expect that this new approach to calculate the
cost can help local governments handle the finance more effectively than
before.
