Tue, 01 Oct 1996

Overlapping auditing

I read in the media that the auditing system in our country is still overlapping and lacking in coordination between central and provincial auditing agencies. This has resulted in inefficiency. The secretary-general of the Supreme Audit Agency (BPK) has said that something must be done to ensure efficiency.

My experiences with auditing agencies in the early 1980s gave me a clear view of their inefficiency, which made me feel dejected. I was then the head of a representative office for the central government in a province. Within a short span of time, two central government control bodies, the Development and Finance Control Board (BPKP) and the BPK, performed audits on my office one after the other, despite my explanation to the second agency that my office had been audited recently.

After the auditing was completed, it was customary for the office to give some souvenirs to the auditors and to pay for the tickets for their return journey to Jakarta as well as their hotel bills. For efficiency's sake, I would like to suggest that the following ideas be considered. * The BPK should be responsible for auditing government departments and non-departmental institutions in the center. Its auditing scope should include big projects that are directly financed by the departments concerned or through foreign loans. * The BPKP should audit all state-owned companies, national and provincial, as well as provincial offices, including development projects under the care of the provincial governments. * Inspectorates General should audit offices in the mayoralties, regencies and districts.

To make the system work properly and efficiently, effective coordination should be established among the auditing agencies. Overlapping in auditing exercises is a matter to be deplored and avoided.

SUHARSONO HADIKUSUMO

Jakarta