State Financial Accountability Committee (BAKN) of the House of Representative urged the Ministry of Finance, Batam Free Trade Zone and Free Port Management Agency (BP Batam), and the Financial and development Supervisory Agency (BPKP) to immediately complete the liquidation process of Batam Authority Board. BAKN asked for an explanation from Head of BP Batam about the issues disclosed in the Examination Report of the Supreme Audit Agency (BPK) on the Financial Statements of BP Batam Year 2011. This is the information from the House of Representatives’ Public Relations on Monday (October 21).
Chairman of BAKN, Sumarjati Arjoso, expects that the final balance sheet of Batam Authority board will become an opening balance sheet of BP Batam as a Public Service Agency (BLU). BAKN requested that the liquidation process of Batam Authority Board to be completed by the end of 2013 or not later than six (6) months from now.
Furthermore, BAKN asked BPKP as advisor of Government Internal Control System (SPIP) to provide assistance and support for the improvement of Accounting and Internal Control System (SPI) of BP Batam. Based on BPK report, note 4 to the Financial Statement of BP Batam states that BP Batam Accounts Receivables as of February 4, 2011 and December 31, 2010 amounted to Rp.13.75 billion and Rp.30.36 billion, respectively. Accounts Receivable Balance amounted to Rp.1.74 billion in Batam Authority Hospital (RSOB), its reasonableness cannot be trusted because the administration of accounts receivables of RSOB is inadequate. In addition, accounts receivable balance of Rp.13.75 billion does not include UWTO (Annual Payment of Batam Authority Board) receivables amounted to RP.248.55 billion in the Balance Sheet of BP Batam as of February 4, 2011, but is only disclosed in the notes to financial statements.
The reasonableness of UWTO receivable balance cannot be trusted, because BP Batam has only recently conducted a re-verification and data collection of UWTO receivables since 2006 until now, whereas land lease has been made since 1991. Records and the documents available do not allow BPK to explore and believe the fairness of the account receivables balance.
Note 8 to the Financial Statements of BP Batam also reveals that Fixed Assets balance in the Balance Sheet as of February 4, 2011 and December 31, 2010 amounted to Rp.14.18 trillion and Rp.14.18 trillion, respectively. BP Batam has not followed up the recommendations of BPK in the Audit Report on the Financial Statements of BP Batam Year 2010 to reconcile and account for the differences in the recording of fixed assets of Rp.37.72 billion, so the problem is still happening in 2011. Records and documents available do not allow BPK to perform inspection procedure to believe the fairness of the fixed assets balance.
Note 11 to the Financial Statements of BP Batam reveals that balance of Other Assets as of February 4, 2011 and December 31, 2010 amounted to Rp107.39 billion and Rp89.57 billion, respectively. Of the balance of Rp107.39 billion, balance of Non-Current Receivables and other balances are respectively Rp34.80 billion and Rp5.41 billion. Non-Current receivables balance that exists in some Technical Implementation Units (UPT) is not supported by details of debtors and invoices amounted to Rp31.18 billion, and other balances amounted to Rp5.41 billion does not have an accounting policy basis for its formation and there is no supporting document on the account. Records and documents available do not allow BPK to perform inspection procedure to believe the fairness of the Non-Current Receivables balance and Other Balances (Other Assets).
Note 15 to the Financial Statements of BP Batam reveals that balance of Third Party Deposits in the Balance Sheet of February 4, 2011 and December 31, 2010 are respectively Rp43.76 billion, Temporary Receipts amounted to Rp5.83 billion and Other Balances Rp16.04 billion. BP Batam cannot present an accounting policy basis for the formation of Temporary Receipts account and Other Accounts and there is no supporting documents available do not allow BPK to perform inspection procedure to believe the fairness of the Temporary Receipts balance and Other Balances.
Note 19 to the Financial Statements of BP Batam reveals that Operational Expenditure in the Surplus/Deficit Report for the period ended February 4, 2011 amounted to Rp39.95 billion. BP Batam charges spending of the previous year a minimum of Rp.15.22 billion in the period of January 1 to February 4, 2011. BPK believes that there are still spending in previous years which were imposed in 2011, and the data available does not allow BPK to verity the operational expenditure population so that BPK cannot believe the fairness of the operational expenditure balance.
Due to the problems mentioned above, BPK cannot apply the examination procedure. The scope of BPK examination is not enough to allow BPK to declare, and BPK does not express an opinion on the financial statements of BP Batam dated February 4, 2011.
Business News - October 25, 2013