In the course of auditing annual government accounts, the Commission of Audit also performs legality and conformity audits of financial operation. After analyzing all audit findings, the Commission of Audit will perform further auditing under the “special regularity audit” model over those items worth further study.

Starting from the auditing of government accounts of year 1999, the Commission has realized that different public administrative departments have different approaches when observing the regulations related to financial operation and account management, in which a number of aspects may still be improved.

Therefore, the Commission of Audit has selected a number of different steps to perform in-depth study. The object studied in this report——“Execution of Expenditure Budget” is such a special audit project established in the course of annual audit.

In the course of this special regularity audit, this Commission has obtained full cooperation from all governmental department, and would hereby sincerely express its gratefulness.