Performance Audit Of Social Insurance Funds

Social security funds are known as people’s "lucky money","survival money","life-saving money, the main problems of the social security funds are no longermisappropriated financial audit, the performance audit that highlights the economy,efficiency, effectiveness, environment and euity will be the focus and mainstream of socialsecurity funds audit in the future.National Audit Office of the People’s Republic of China’s audit work developmentplan from2008to2012points out that "all the audit projects every year should carry outperformance audit by2012". Internationally performance audit has become a trend andperformance audit occupies a considerable proportion in the western countries, has createda huge audit effectiveness, to strengthen the government’s public accountability, play aprofound role in improving government performance. The social security funds as a kindof public funds is very necessary to carry out performance audit. National Audit Office’s34announcement: the national social security fund audit results points out that “socialsecurity funds in2011(including social insurance, social assistance and social welfare)accumulated surplus amounted to3.111859trillion yuan, among them, the parts ofexpanding their spending or illegal operation of social security funds was only1.739billion yuan in some areas, was not strictly part of the agencies audited, issued to thepersonnel who did not comply with the conditions of treatment or reimbursement of costsonly1.852billion yuan”, the problems faced by the social security funds is to ensure ampleliquidity, capital preservation and appreciation of management issues, deal with aging,urban and rural population differences, performance audit will become the focus of theaudit of the social security funds. Performance audit of China’s social security funds havejust started, is still in the exploratory accumulation phase, there is a lot of work to do, andtheoretical researches have been lagging behind the needs of performance audit practice ofsocial security funds, this paper attempts to study the performance audit of social securityfunds, to provide some useful enlightenment to conduct performance audit of socialsecurity funds.First of all, the paper discusses the theoretical basis for the entire study. a basic pointof view is that responsibility is the theoretical basis of Audit, public accountability is thetheoretical basis of the Government Performance Audit. Public accountability is a subset of the concept of accountability, is a reflection of the commissioned and fiduciary relationshipin the public domain, the government is in charge of public accountability, including theprovision of public services and the management of public resources. With thestrengthening of public awareness, deepening of public accountability, the public is nolonger satisfied with the basic financial audit of the government, but to the Economy,Efficiency, Effectiveness, Environment, Equity of the performance audit, thus bettermeasurement and supervision of the government’s public accountability. Social securityfunds, as a kind of public funds and public resources under the control and management ofgovernment, should be included in the scope of performance audit in order to acceptpeople’s supervision and satisfy the people’s trust.Secondly, this paper discusses the object choice of social security fund performanceaudit,"two lines of thought" is proposed in this section. We can select the appropriateobject of social security funds performance audit in accordance with fund collection,payment and investment cycle, also can be selected according to the various sectors ofsocial security funds. This article take the first idea, successive analyses the fundscirculation process, performance audit should be concerned about what issuesin in eachlink, the content of this chapter also make preparations for the next chapter to build theassess system of performance audit for social insumnce funds.Then, it is part of the performance audit program. the core is to build a assess systemof performance audit for social security funds. The article analyzes the objectives of theperformance audit of social security funds, the main body of the performance auditevaluation of the social security funds and social security fund performance audit process,focusing on building a combination of quantitative indicators and qualitative indicators ofindex system of social security funds performance audit.Finally, it is the empirical part of this article.The article points out that when carry outa performance audit of social security funds should pay special attention to the equity, Theequity is the nature and original intention of establishing a social security. This paperbuilds Theil index L model, a provincial-level administrative units for the sub-region, thecountry is divided into three zones, to evaluate the equity of the financial investment ofsocial security funds. The empirical results show that the financial investment of socialsecurity in general tends to be more fair, and general unfairness decomposition shows thata provincial differences contribution is greater than the differences between zone, and aprovincial region in itself tends to fair process relative to other regional equity remainsunchanged. In the end, the paper puts forward a number of recommendations based on theoreticalanalysis and empirical results. The article has a certain inspiration for social security fundsperformance audit.