The current revenue sources of financial accounting of private kindergartens are government support funds, government subsidies, and parents’ contribution, but it is difficult to transparently identify their revenues and expenditures due to insufficient expenditure items of the accounting. Such uncertain accounting structure is attributed to the absence of a private kindergarten accounting system. Primary, middle, and high schools and national and public kindergartens, which are actually subject to the Private School Act the same as private kindergartens, use the Edufin program, a national accounting system, to transparently identify revenues and expenditures, but private kindergartens do not use the Edufin accounting program. In this situation, there is a growing need to revise the Acts for transparent accounting since the accounting dishonesty of private kindergartens was plainly disclosed recently.
In addition, the amendment aims to reflect requirements for improvement of kindergarten-related systems such as support funds provided to kindergartens should be changed to subsidies because there is a judicial precedent that the use of support funds provided to kindergartens cannot be regarded as embezzlement; there is a problem to be solved that anyone may change the name of a kindergarten and reopen it even after receiving a closedown order because the Act does not specify disqualifications for establishing and operating a kindergarten; in the future, there will be a need for a proper disclosure system according to the awareness of a problem because even though there is an information disclosure website called “Kindergarten Alimi,” the actual information available through the website is limited.

Details

A. Restrict the establishment of a kindergarten so that there would be no case of reopening a kindergarten by changing the name after receiving a kindergarten discipline or a significant correction order under this Act and specify the disqualifications for establishing a kindergardten (Article 8 (3) 3 and Article 8-2 newly inserted)
B. Require the Minister of Education and the Superintendent of the Office of Education to establish and operate an early childhood education information system for the work of accounting management, while at the same time, make it mandatory for kindergartens to use the system (Article 19-2 (1) and (5) newly inserted)
C. Require private kindergartens to refine records into the information system according to the revenue and expenditure items prescribed by the Ordinance of the Ministry of Education (Article 19-8 (5))
D. If young children are in a kindergarten, the subsidies will be provided to the relevant kindergarten (proviso of Article 24 (2) newly inserted)
E. Enable the national and local governments to order the return of all or part of the subsidies or support funds if a kindergarten misuses the subsidies or support funds (Article 28 (1))
F. In the event that a person who receives a correction or modification order does not fulfill it within a specified period without justifiable reasons, add the exclusion of financial support to the measures that the competent Offices may take (Article 30 (2))
G. Make it possible to disclose the information of a kindergarten, such as evaluation and measures for the kindergarten, on the Internet homepage (Article 30-2 newly inserted)

Where five years have not passed after receiving a subsidy return order (Article 28 (1)) and an action under a correction or modification order, restrict the authorization of establishment of a kindergarten (Article 8 (3) 3)

Newly insert disqualifications for the establishment and operation of a kindergarten (Article 8-2)

Require kindergartens to use the information system for accounting management (Article 19-2 (5))

Impose duties of preparation and disclosure of minutes to the kindergarten operation committee (Article 19-3 (5))

Require kindergartens to refine records into the information system according to the revenue and expenditure items, and to submit a draft revenue and expenditure budget for the accounts of the kindergarten to the competent Office of Education and the kindergarten operation committee (Article 19-8 (2))

In certain cases, such as the head of a kindergarten uses subsidies or support funds for non-kindergarten purposes, make it possible to require the return of both subsidies and support funds (Article 28)

If the recipient of a correction or modification order does not fulfill it within a specified period, make it possible to exclude financial support (Article 30)
Add a case of violation of "education-related Acts" to cases where a kindergarten closedown order may be made (Article 32 (1) 1)