BPK is formulating new audit patterns for state institutions
JAKARTA (JP): The Supreme Audit Agency (BPK) is formulating a new auditing system to standardize budgetary reports of government institutions and state firms, the agency's chairman J.B. Sumarlin says.
"The audit standard, which is now being prepared intensively by the agency, will include accounting of the state budget, the comprehensive management of offshore loans, accounting supervision and computerized data processing," he said here yesterday.
"The planned standard is expected to help reduce false and incorrect accounting reports repeatedly made by government officials," Sumarlin said in his opening speech at a four-day seminar on the state budget management at the agency's headquarters here yesterday.
The seminar was attended by some 150 high ranking officials responsible for the accounting and auditing of the budgets of government institutions.
Sumarlin said that incorrect reports might result from the absence of standards in supervision and auditing.
"I have the impression that inspector generals, who are supposed to be responsible for the reports, don't have enough knowledge of accounting and auditing for their budget thereby leaving their reports in chaos," Gandhi said.
He expected that the new audit standard will help improve the public accountability of the government's institutions.
The 47-year old BPK has thus far audited both budgetary funds used by the government's institutions and state companies. The agency regularly sends its audit reports to the House of Representatives (DPR) for cross-checking.
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Another BPK official, Rivai Siata, told The Jakarta Post that the agency plans to propose to the government an amendment of the existing 1973 law on the agency's role in auditing the government's institutions.
"According to the rule, BPK is only allowed to audit the budgetary reports of government institutions and state firms," he said. "It is not allowed to declare any 'opinion' on their performances."
"It clearly indicates that BPK is not independent to run its function as the supreme institution in the country," he argued.
"I would suggest that the Minister of Finance and DPR give us more rights to audit and evaluate the state budget and the budgetary reports of government institutions," he said.
Rivai also said that the existing system of BPK's audit is based on the rule of the old Dutch colonial government -- ICW law or Regeling van de wijze van beheer en verantwoortding der geldmiddelen van Nederlandsche Indie.
"The basic system of law allows us only to match the balance between revenues and spending and gives us no right to evaluate the efficiency and effectivity of the budget implementation," he added.
Supporting the proposal to amend the law on BPK's function, a member of the DPR's Budgetary Commission, Tadjuddin Noer Said, told the Post that there should be political will coming from all the factions in DPR to support the planned amendment. (fhp)