BPK Stresses Urgency of Technology Utilisation in Preparing Regional Financial Reports
Jakarta (ANTARA) - The Supreme Audit Board (BPK) has stressed the urgency of accountability in regional financial management and the utilisation of information technology in preparing Local Government Financial Reports (LKPD) to support transparent and sustainable development.
“In relation to the digital transformation of regional financial management, the BPK encourages the optimal use of the Regional Government Information System (SIPD) from the planning and budgeting stages through to accounting and reporting. Integration between government applications is considered essential to produce reliable and consistent financial data,” said BPK Member VI Fathan Subchi whilst opening the entry meeting for the audit of 2025 Local Government Financial Reports under the Directorate General of State Financial Audit VI, in an official statement in Jakarta on Tuesday.
The LKPD audit is carried out pursuant to the mandate of Law No. 17 of 2003 on State Finances and Law No. 1 of 2004 on the State Treasury, which govern the obligation of regional governments to prepare and submit financial reports as a form of accountability for regional budget (APBD) management.
In the audit, the BPK assesses four main criteria: compliance with Government Accounting Standards, adequacy of disclosure, adherence to laws and regulations, and the effectiveness of the Internal Control System.
Fathan also explained that this year’s audit employs a risk-based audit approach focusing on areas of regional expenditure, asset management, and regional revenue and cash holdings that carry significant risk.
Additionally, the BPK is paying attention to social assistance expenditure, contingency spending, grants to the public, and transactions conducted prior to the ratification of the Regional Revenue and Expenditure Budget (APBD).
Furthermore, the board highlighted the importance of completing follow-up actions on audit recommendations. Nationally, the rate of follow-up completion has reached approximately 75 per cent, indicating improved commitment by regional governments in addressing BPK recommendations.
“The LKPD audit is part of the BPK’s efforts to promote transparent and accountable regional financial management so as to deliver maximum benefit for the welfare of the public,” said the BPK Member VI.