BPK to use better audit procedures<\/p>\n
JAKARTA (JP): The Supreme Audit Agency (BPK) yesterday
\npromised to adopt more comprehensive procedures in auditing the
\nstate budget and state-owned companies to ensure the economy,
\nefficiency and effectiveness of public spending.<\/p>\n
However, speakers at a panel discussion here yesterday
\nsuggested that the country also adopt a principle of balance of
\npower and implement procedures for performance audit to ensure
\nmaximum benefits from public spending.<\/p>\n
The agency's chairman, J.B. Sumarlin, told the meeting which
\ndiscussed \"Performance Audit\" that the agency, with planned
\ncomprehensive procedures, will deal not only with the compliance
\nto regulations of the government and its companies but also with
\neconomy, efficiency and effectiveness of their spending.<\/p>\n
\"In regard to the growing complexity of development and the
\nbudget for it, it is high time for auditors to pay attention to
\nthe economy, efficiency and effectiveness of public spending,\"
\nSumarlin said.<\/p>\n
BPK, the Government Audit Agency (BPKP) and inspectorates of
\ngovernment institutions have for the last five decades adopted
\nthe conventional auditing method, dealing mainly with the
\nregularity and financial aspects of government institutions and
\nstate companies.<\/p>\n
BPK usually audits financial reports of governmental projects
\nand state-owned companies by taking samples to be examined. With
\nsuch a method, for the last three successive fiscal years the
\nagency could respectively audit only 457, 456 and 192 projects
\nthroughout the country.<\/p>\n
During the period of April 1 to Sept. 30, 1993, BPK found a
\nnumber of corruption cases involving a cumulative amount of
\nRp 600 billion.<\/p>\n
Suggestion<\/p>\n
Speakers at yesterday's discussion suggested Indonesia follow
\nother countries which have abandoned the old method and adopted a
\nnew and more comprehensive one.<\/p>\n
P.Th. Schure, a consultant of the Dutch BMB Group, defined the
\nperformance audit as an independent appraisal of an organization,
\nprogram, project, operation, activity or function to determine
\nthe extent to which resources are managed with regards to
\neconomy, efficiency and effectiveness, generally called the three
\nE's.<\/p>\n
Schure said performance audits still relate to regulations,
\nrules and procedures.<\/p>\n
Another speaker, Muhammad Murni, a vice chairman of the
\nBudgetary Commission of the House of Representatives (DPR), said
\nauditing work will never reach an optimal level if a balance of
\npower between the executive and the legislative bodies does not
\nexist.<\/p>\n
\"Worse than that, most of the time DPR has been harassed,\"
\nMurni said, referring to the habit of BPK to consult its findings
\nwith the government before submitting its annual financial report
\nto the DPR.<\/p>\n
\"What is the use of analyzing a financial report which has
\nbeen updated?\" he said, adding that the Trias Politica principle
\nshould be established for the long-term benefit of Indonesia.<\/p>\n
Schure said an appropriate audit procedure is an audit that
\ndeals with regularity, performance and sustainability of a
\nproject as well as the environment, spatial conditions, social
\nfabric and economic performance.<\/p>\n
\"An economic analysis tends to overvalue project benefits
\nwhereas negative effects are ignored. Strains on the health of
\npeople and erosion of land are examples of such side effects.
\nAuditing may reveal a better location for a project or may show
\nimprovements which still can be effected,\" he said.<\/p>\n
The Dutch consultant said the Indonesian government should
\ndevelop prototype guidelines for performance audit and design
\ntraining modules.<\/p>\n
Other speakers in yesterday's panel discussion were Director
\nGeneral of Tax Fuad Bawazier, deputy chairman of BPKP Irsan Yani,
\na member of BPK Gandhi and Inspector General of the Ministry of
\nPublic Works E.L.M. Malonda.(09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-to-use-better-audit-procedures-1447893297",
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