BPK is formulating new audit patterns for state institutions
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.
Opinion
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)