BPK to get foreign help in Aceh fund audit<\/p>\n
Urip Hudiono, The Jakarta Post<\/p>\n
An independent advisory board comprising representatives of
\ninternational state audit institutions will be established to
\nassist the Supreme Audit Agency (BPK) in coordinating and
\ncarrying out the auditing of tsunami aid for Aceh.<\/p>\n
Recommendations from a three-day conference on the issue held
\njointly by the BPK and the Asian Development Bank (ADB) earlier
\nthis week said the international community had agreed that
\nreports on fund disbursement and audits be conducted on a regular
\nbasis to ensure accountability.<\/p>\n
The conference also recommended that internal control systems
\nfor reconstruction projects be assessed beforehand, to ensure
\nthat nothing would interfere with the audit process later on.<\/p>\n
\"These measures are expected to make the auditing process more
\ncomprehensive and able to cover the majority of the flow of funds
\n-- hopefully up to 80 percent or 90 percent of it,\" the ADB's
\nhead of financial management and fund disbursement Farzana Ahmed
\nsaid on Thursday.<\/p>\n
She explained that the advisory board would help the BPK
\nimprove its audit capacity and coordinate the sharing of
\ninformation -- of financial report and audit results -- with
\nother auditors.<\/p>\n
The conference also agreed that the BPK would not only be
\nlimited to auditing funds channeled through the government, but
\nwould also be given the authority to appoint additional external
\nauditors.<\/p>\n
Citing as an example the recently established US$500 million
\nmulti-donor trust fund for Aceh, Ahmed explained how donors or
\nthe government might want to hire private auditors, besides the
\nBPK.<\/p>\n
\"Private auditors, however, usually report their audit results
\nto the party that appointed them,\" she said. \"But, if the BPK was
\ngiven the mandate to appoint these auditors, then they would be
\nobliged to report to the BPK as well.\"<\/p>\n
Nevertheless, there would still be fund disbursements out of
\nthe BPK's auditing reach, such as funds channeled bilaterally
\nbetween governments or directly by private institutions or non-
\ngovernmental organizations.<\/p>\n
\"That is why coordination is important,\" she said, adding that
\nthe ADB -- which had handed over $300 million for Aceh in grants
\nand loans -- was also prepared to help fund the hiring of
\nadditional auditors if necessary.<\/p>\n
Of the regular reporting and auditing of fund disbursements,
\nAhmed said the situation in Aceh was an extraordinary case, so
\nits auditing also needed to be all-embracing.<\/p>\n
\"If audits are ordinarily conducted a year after a program or
\nproject commences, it should not be that way for Aceh,\" she said.
\n\"The time gap between the projects and their audits should be
\nsmaller, to ensure improved accountability.\"<\/p>\n
The international community will also set up an online system
\nfor the tracking and monitoring of fund disbursements, as well as
\nthe status and progress of the projects they are financing.<\/p>\n
ADB governance adviser Staffan Synnerstrom said an assessment
\nof the internal control system before the rebuilding period was
\ncrucial as the procurement projects during the period carried the
\nlargest potential for corruption.<\/p>\n
He said there should be better procurement procedures and law
\nenforcement, incorporating the Corruption Eradication Commission
\n(KPK), besides the police and prosecutors.<\/p>\n
\"The KPK, as well as the Anticorruption Court, should be given
\nthe authority to follow up on any corruption indications in the
\nprojects,\" he said.<\/p>\n
The government finalized Aceh's reconstruction blueprint
\nearlier this month and will set up the Aceh Authority Board (BOA)
\nto start the reconstruction projects in June.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-to-get-foreign-help-in-aceh-fund-audit-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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