BPK is formulating new audit patterns for state institutions<\/p>\n
JAKARTA (JP): The Supreme Audit Agency (BPK) is formulating a
\nnew auditing system to standardize budgetary reports of
\ngovernment institutions and state firms, the agency's chairman
\nJ.B. Sumarlin says.<\/p>\n
\"The audit standard, which is now being prepared intensively
\nby the agency, will include accounting of the state budget, the
\ncomprehensive management of offshore loans, accounting
\nsupervision and computerized data processing,\" he said here
\nyesterday.<\/p>\n
\"The planned standard is expected to help reduce false and
\nincorrect accounting reports repeatedly made by government
\nofficials,\" Sumarlin said in his opening speech at a four-day
\nseminar on the state budget management at the agency's
\nheadquarters here yesterday.<\/p>\n
The seminar was attended by some 150 high ranking officials
\nresponsible for the accounting and auditing of the budgets of
\ngovernment institutions.<\/p>\n
Sumarlin said that incorrect reports might result from the
\nabsence of standards in supervision and auditing.<\/p>\n
\"I have the impression that inspector generals, who are
\nsupposed to be responsible for the reports, don't have enough
\nknowledge of accounting and auditing for their budget thereby
\nleaving their reports in chaos,\" Gandhi said.<\/p>\n
He expected that the new audit standard will help improve the
\npublic accountability of the government's institutions.<\/p>\n
The 47-year old BPK has thus far audited both budgetary funds
\nused by the government's institutions and state companies. The
\nagency regularly sends its audit reports to the House of
\nRepresentatives (DPR) for cross-checking.<\/p>\n
Opinion<\/p>\n
Another BPK official, Rivai Siata, told The Jakarta Post that
\nthe agency plans to propose to the government an amendment of the
\nexisting 1973 law on the agency's role in auditing the
\ngovernment's institutions.<\/p>\n
\"According to the rule, BPK is only allowed to audit the
\nbudgetary reports of government institutions and state firms,\" he
\nsaid. \"It is not allowed to declare any 'opinion' on their
\nperformances.\"<\/p>\n
\"It clearly indicates that BPK is not independent to run its
\nfunction as the supreme institution in the country,\" he argued.<\/p>\n
\"I would suggest that the Minister of Finance and DPR give us
\nmore rights to audit and evaluate the state budget and the
\nbudgetary reports of government institutions,\" he said.<\/p>\n
Rivai also said that the existing system of BPK's audit is
\nbased on the rule of the old Dutch colonial government -- ICW law
\nor Regeling van de wijze van beheer en verantwoortding der
\ngeldmiddelen van Nederlandsche Indie.<\/p>\n
\"The basic system of law allows us only to match the balance
\nbetween revenues and spending and gives us no right to evaluate
\nthe efficiency and effectivity of the budget implementation,\" he
\nadded.<\/p>\n
Supporting the proposal to amend the law on BPK's function, a
\nmember of the DPR's Budgetary Commission, Tadjuddin Noer Said,
\ntold the Post that there should be political will coming from all
\nthe factions in DPR to support the planned amendment. (fhp)<\/p>",
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