BPK says govt accounting standard may not work
BPK says govt accounting standard may not work
Rendi A. Witular, The Jakarta Post, Jakarta
The new accounting standard for government departments will not
work unless there is a change in the mentality of corrupt
officials and more serious antigraft law enforcement, a senior
official says.
"This kind of standard can be made in 100 days ... But it
won't work well if corrupt officials continue to exist because
they will simply try to find loopholes in the new system,"
Supreme Audit Agency (BPK) chairman Anwar Nasution said at the
State Palace on Wednesday.
To fight against corruption Anwar urged the government to
reeducate civil servants, increase their salaries and step up
graft investigations in government.
Vice President Jusuf Kalla officially launched the new
accounting standards on Wednesday, which he said were aimed at
creating a more transparent and accountable public service.
Kalla said the government hoped bring financial reporting by
central government and local administrations up to professional
standards.
"Starting next year, all government and local administrations
will use the same method, making standardized reports on balance
sheet, revenues, expenditure and cashflow in a more transparent
and accountable way," he said.
The accounting standard will be imposed on all government
agencies and ministries, while the Ministry of Home Affairs will
soon issue guidelines to help local administrations apply the
system.
The Ministry of Finance is responsible for preparing the
regulations.
At present, the state budget is created based on a supply and
demand system without taking into account a detailed analysis of
revenue and expenditure of the departments and regional
administrations it funds.
The system, which is not transparent, has long been abused by
corrupt politicians and officials.
Finance minister Jusuf Anwar said with the new system, the
government hoped to more effectively control state funds.
"The new system will require governments to explain the state
and regional budgets, the flow of cash coming in and out, and
will include notes for every financial transaction," Jusuf said.