Tuesday, 28 August 2012

SUPREME AUDIT AGENCY WILL STILL GIVE UNQUALIFIED OPINION IF THERE IS CORRUPTION CONFESSION

The Supreme Audit Agency (BPK) still gives Unqualified Opinion (WTP), regardless of corruption indication in the ministry concerned. It means that WTP opinion and corruption indication are two different things providing that there is confession from official of the ministry concerned. As WTP opinion is more emphasized on financial management aspect, especially business trips of ministry officials. If the business trip does not prove excessive spending, we consider that the performance of the ministry concerned is clean and efficient. And, if there is corruption indication, as far as it is confessed, WTP opinion will still be given, member of BPK. Ali Masykur Musa, told Business News (6/17).

As preparation to become Chairman of World’s Supreme Audit Institutions Environmental Audit, the Indonesian Supreme Audit Agency (BPK) will increase quality and quantity of audited objects. Audit Result Report (LHP) of a ministry in 2011 consists of several matters, including LHP on Financial Statements and Internal Control System and Compliance with the Law. The definition of Compliance is, for example, official vehicles cannot be transferred from one Directorate General to another. BPK is mainly focusing on accurate and accountable financial statements.

BPK gives Unqualified Opinion (WTP) with an Explanatory Paragraph (DPP) on Financial Statements of the Ministry of Marine and Fisheries (LK KKP) of 2011, like the one in 2010. Opinion on LK KKP has improved from Disclaimer opinion on LK KKP of 2006-2008 and Qualified Opinion in 2009. Concerning asset and asset inventarization, BPK opinion, assessment on LK KKP of 2011 has been fair in presenting all matters that are deemed material. Concerning asset owned by the Ministry of Marine and Fisheries (KKP), particularly after it is separated from the Agriculture Ministry, we have not yet properly documented the various reports. But, most of them have been documented.

Minister of Marine and Fisheries, Sharif C. Sutardjo, expects that KKP will still be given WTP opinion in 2013. Currently, KKP is maintaining is WTP predicate for financial accountability, while for Government Institution Performance Accountability Report (LAKIP), it is given B rating, and result of integrity survey of KKP is 7.46. This is a proof that we are ready for the program, Sharif told Business News (7/16).

As preparation to become Chairman of World’s Supreme Audit Institutions Environmental Audit, the Indonesian Supreme Audit Agency (BPK) will increase quality and quantity of audited objects. Audit Result Report (LHP) of a ministry in 2011 consists of several matters, including LHP on Financial Statements and Internal Control System and Compliance with the Law. The definition of Compliance is, for example, official vehicles cannot be transferred from one Directorate General to another. BPK is mainly focusing on accurate and accountable financial statements.

BPK gives Unqualified Opinion (WTP) with an Explanatory Paragraph (DPP) on Financial Statements of the Ministry of Marine and Fisheries (LK KKP) of 2011, like the one in 2010. Opinion on LK KKP has improved from Disclaimer opinion on LK KKP of 2006-2008 and Qualified Opinion in 2009. Concerning asset and asset inventarization, BPK opinion, assessment on LK KKP of 2011 has been fair in presenting all matters that are deemed material. Concerning asset owned by the Ministry of Marine and Fisheries (KKP), particularly after it is separated from the Agriculture Ministry, we have not yet properly documented the various reports. But, most of them have been documented.

Minister of Marine and Fisheries, Sharif C. Sutardjo, expects that KKP is maintaining is WTP predicate for financial accountability, while for Government Institution Performance Accountability Report (LAKIP), it is given B rating, and result of integrity survey of KKP is 7.46. This is a proof that we are ready for the program, Sharif told Business News (7/16).

Target of WTP predicate can be maintained due to some factors, especially management commitment to improve administrative system and financial statements and human resource quality. Audit Result Report (LHP) on LK KKP in 2011 is, amongst others, executive summary of result of audit on KKP, LHP on LK KKP, LHP on Internal Control System, and LHP on compliance with the laws.

There are some criteria in giving WTP opinion on financial statements, such as suffiency of financial data that can be assessed, compliance with the laws has been in accordance with financial accounting system and accuracy of financial accountability. LK KKP of 2011 has been complete in accordance with government accounting standard and fair in all matters that are deemed material. In every audit, there is always finding for improvement of financial statements. There are three matters that need to be explained by KKP. Firstly, three are assets which have not been re-evaluated, fixed assets whose existence is not found, and fixed assets whose inventarization process is not yet complete. As three is still asset selection work, which ones belong to KKP and which ones belong to the Agriculture Ministry.

Minister of Empowerment of State Apparatus and Bureaucratic Reform, Azwar Abu Bakar, stated his appreciation for the codes of ethics that have been performed by KKP. Even, according to him, KKP has had full awareness in crating an integrity Zone (ZI). He explained that KKP is one of five ministries in Indonesia that have launched Integrity Zone (ZI).

Concrete actions performed by KKP in applying ZI toward a Free Corruption Area (WBK) are, amongst others, integrity signing, reporting of assets of state officials, access to financial statements that has been performed by BPK, and reporting protection system. The aim of bureaucratic reform is to create clean bureaucrats who are free from corruption, collusion, and nepotism (KKN) and who are competent and helpful, Azwar told Business News (7/16).    

Business News - July 20, 2012

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