BPK finds discrepancies in 2004 budget<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) has again put a disclaimer note on
\nthe government's financial report of the state budget, despite
\nthe implementation since last year of what was hailed as a \"new
\nand improved\" state accounting system.<\/p>\n
Delivering BPK's four-month audit result on the government's
\nfinancial reporting for the 2004 state budget to a House of
\nRepresentatives plenary session on Tuesday, BPK chief Anwar
\nNasution said BPK had decided not to give an opinion on the
\nreport as it still contained some discreprancies.<\/p>\n
\"The government's report of last year's state budget is
\nactually a breakthrough to further establishing transparency and
\naccountability in the country, as it is the first to be based on
\nthe new state accounting system, which has brought many
\nimprovements from previous budget reports,\" Anwar said.<\/p>\n
\"However, BPK has still found several weaknesses in the
\nreport, which include existing weaknesses within the government's
\ninternal audit system, non-compliance of related financial
\nreporting regulations, and a discrepancy in unspent budget
\nexpenditures.\"<\/p>\n
President Susilo Bambang Yudhoyono had submitted the report --
\nwhich was compiled in line with Law No. 17\/2003 on State Finance
\n-- to BPK in May for auditing.<\/p>\n
The BPK report consists of a budget realization report, a
\ncurrent accounts report, a cash-flow report and related
\nappendices, which include the financial reports of state-owned
\nenterprises (SOE) and other state agencies.<\/p>\n
A disclaimer note, while it does not challenge the legitimacy
\nof the budget, still exposes flaws within the state accounting
\nsystem that could undermine rating performances and perceptions
\nof the country's economy.<\/p>\n
With this year's disclaimer, BPK has for the fourth
\nconsecutive time since 2001 gave a \"no opinion\" mark on the
\ngovernment's report of the state budget.<\/p>\n
While BPK's previous disclaimers could be understood as the
\nstate accounting system was indeed in the process of being
\nimproved, with differences between the government's and BPK's
\nauditing system, this year's disclaimer could undermine the
\ngovernment's efforts to showing that the country had clearly
\nadopted a better state financial reporting system.<\/p>\n
Explaining the weaknesses within the government's internal
\naudit system, Anwar said that several state agencies had yet to
\nimplement the new state accounting system in verifying their
\nrevenues and expenditures.<\/p>\n
\"The problem in determining the value of state assets --
\nparticularly land assets -- also came up, as many were based on
\nhistorical prices and not the current market price,\" he said.<\/p>\n
Meanwhile, on non-compliance with reporting regulations, Anwar
\nhighlighted possible misuses in the Attorney General Office's
\n(AGO) Rp 6.67 trillion of bail money and the disbursement of Rp
\n2.89 trillion in reforestation funds.<\/p>\n
BPK had also found discrepancies in unspent budget
\nexpenditures, in which the funds amounted to Rp 31.56 trillion in
\nthe financial report, but was stated as Rp 24.59 trillion in the
\ncurrent accounts report.<\/p>\n
\"An explanation of this was also missing in the report's
\nappendices,\" Anwar stated.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-finds-discrepancies-in-2004-budget-1447893297",
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