Study On The Performance Audit Of Local Government Debt

Local government debt is the local government’s liabilities to creditors of the capital.In the contract, as to the debtor,the local government is in accordance with the provisions and with legal procedures and policies. By the national audit authority or its staff at all levels of local government,local government debt audit is an economic management oversight of managing the debt and using the data to review and evaluate the economical activities of debts related to its authenticity, legality, rationality and accuracy and finally submitting audit report to the guarantee. Performance audit focus on the evaluation of fund activity in the economy, efficiency and effectiveness, so it becomes one of the standard measures of national government audit dynamic.Local government debt is an important part of the government revenue, it plays an important role in improving urban infrastructure, stable social stability, promoting the development of agriculture and rural economy and in driving regional economic growth. Using the local government debt in a right way is of great significance for a solid foundation, fair financial allocation, maintain financial order and the high financial efficiency.Performance audit of local government debt focus on the inspection and evaluation of the effectiveness of the management and use of local government debt. its evaluation scope including decision-making, borrowing process, the using of borrowed funds and ability to repay debt. It put the lending, managing, using and repaying all four segments under audit supervision, to ensure the effective control of local government debt. However, domestic research on performance audit has not form a basic theoretical framework. This paper combed the debt of local government performance audit related theory; discussed the role of performance audit in local government debt management form decision-making, borrowing process, the using of borrowed funds and ability to repay debt; designed12indicators to build a local government debt performance evaluation index system; Used the score of factor analysis and principal component analysis with the corresponding weight to build a model of performance evaluation of local government debt,10cities of M province has carried on the empirical analysis, finally come to comprehensive performance scores of the10cities. The performance evaluation of local government debt is useful to improve the level of the government’s regulation of debt capital and the financial efficiency of debt management. Performance audit of local government debt should establish the independence and authority, should establish local government debt funding announcement of operating mechanism, should strengthen information construction and improve the quality of audit officers.