The Korea Local Administration Review

This study presents how to utilize and what to consider when implementingan integrated reporting system in local government. This paper makes anattempt to introduce the integrated reporting in the paradigm of the newgovernment, so-called government 3.0. There are, however, many obstaclesahead of us to tackle in order to produce expected performances by applyingthe paradigm to the local government. It is possible to increase thecompetitiveness of local governments, by actively communicating with residentsand cooperating with departments in the organization through the introduction ofinternational integrated reporting(<IR>) framework. The integrated reporting canbecome an effective means to overcome inefficiency of work performancescaused by the barriers between each department as the results of silo-thinking,which the government 3.0 intends to tackle. If value creation capability is madepublic using the administrative and financial resources of local governmentthrough the integrated perspectives of framework, apart from improving theaccountability we can not only acquire the transparency, but improve thereliability of residents. There is a limit to the internal activities of localgovernments that supplies power and maintains the endurance of policies inorder to sustain sound fiscal administration. In addition, it is difficult to createas many results as residents can get to experience. The proposed systemintends to perform value creation by putting the framework and integratedthinking in place and utilizing the administrative and financial assets effectively.Therefore, the results of the activities are provided to local residents in theform of integrated report. Ultimately, the aim of the system is to get bothintegrated thinking and integrated reporting embedded into policies and activitiesof local governments in administering and executing them.
□ Keywords: Local government finance, Government 3.0, International integratedreporting framework, Integrated administration