Value and Benefit of BPK through Implementation of Information System for Monitoring the Follow-up of Audit Recommendations (SIPTL)

Transcription

1 Value and Benefit of BPK through Implementation of Information System for Monitoring the Follow-up of Audit Recommendations (SIPTL) by Dr. Agung Firman Sampurna Board Member The Audit Board of the Republic of Indonesia (BPK)

2 OUTLINE BPK s Mandate Audit Benefits Benefit Measurement Indicators BPK s Authorities Challenges in the Monitoring Activities Information System for Monitoring the Follow-up of Audit Recommendation (SIPTL)

3 1. BPK s Mandate Constitution Year 1945, art 23 E, F, G (Regarding the Establishment of BPK) Law Number 15 Year 2004 (Regarding Audit on The State Financial Management and Accountability) Law Number 15 Year 2006 (Specifically regarding the BPK) BPK shall independently audit the state financial management and accountability. The audit results are submitted to the representative bodies in accordance with their respective authorities.

4 Organizing Country Management of State Finance State Goals 2. Audit Benefits Politics Law, Defense, and Security Economy Accountability Accountability Accountability Performance Performance Performance Forming government that protecting the people, nation, and country (all nations and Indonesia s blood spill) Promoting public welfare Human and Culture Development Accountability Performance Enrich the life of Indonesian nation Foreign Affairs Accountability Performance Keeping the world order based on the lasting peace and social justice 3 Financial Audit Special Purpose Audit Performance Audit Strengthening accountability and transparency Increasing Performance

5 3. Benefit Measurement Indicators Recommendation Fully Implemented % State Finances Year % Number Value Number Value Number Value Recoverable (billion Rp) , ,81 69,67 50, ,57 29, (billion USD) , ,16 69,67 50,40 5,28 29,04 Note: 1 USD = Rp13.300,00

6 4. BPK s Authorities Constitution Year 1945, art 23 E, F, G regarding the Establishment of BPK Law Number 17 Year 2003 regarding State Finance Law Number 15 Year 2004 regarding Audit on The State Financial Management and Accountability Law Number 15 Year 2006 specifically regarding the BPK

7 4. BPK s Authorities. Continued State Finance as referred to in Article 2 of Law Number 17 Year 2003 regarding State Finance consists of: a. The right of the state to levy taxes, issue and circulate money, and make loans; b. The obligation of the state to undertake public service tasks of state administrations and pay third party bills; c. State Revenues; d. State Expenditures; e. Regional Revenue; f. Regional Expenditure; g. The property of the state/property of the region which is managed by itself or by other parties in the form of money, securities, accounts receivable, goods and other rights which can be valued with money, including wealth separated from state/regional companies; h. Wealth of other parties controlled by the government in the framework of the administration of government duties and/or public interest; and i. Wealth of other parties obtained by using the facilities provided by the government.

8 5. Challenges in the Monitoring Activities Archipelagic and wide-large nation Large numbers of audited entities Large numbers of Audit Reports and Recommendations Budget constraint and limited human resources

9 BPK Offices in Indonesia 34 regional offices in each province 16 RO in western part of Indonesia 18 RO in eastern part of Indonesia

10 More than 800 national-wide audited entities. At central govt: to audit national budget of USD 156 billion and national assets of USD 410 billion in year 2017 (national budget Rp2.080T and national asset Rp5.456T converted with 1 USD = Rp13.300) Audited Entities State-Owned Enterprises (157 Enterprises) Central Government (97 ministries/institutions) Others (34 Other Government Agencies) Local Government (539 Local Govt Entities) Local-Govt Owned Enterprises (1374 Local Enterprises)

11 BPK AUDIT REPORTS TYPES of AUDIT NUMBERS OF AUDIT REPORTS ISSUED I/2014 II/2014 I/2015 II/2015 I/2016 II/2016 I/2017 FINANCIAL PERFORMANCE SPECIAL PURPOSES TOTAL Source: Semester report

12 BPK AUDIT RECOMMENDATIONS ISSUED Audited Entities Qty Amount (eq. USD) Central Government 58,451 7,134,938,506 Local Governments 362,822 4,277,404,324 State-Owned Enterprises 14,251 3,209,138,544 Other Agencies 1,819 3,552,703,709 Total 437,343 18,174,185,084 Source: Semester report Amount Rp 24,7T with conversion rate 1 USD = Rp

13 NUMBERS (Qty) OF AUDIT RECOMMENDATIONS Annual ISSUED Accumulated to Year Number of Recommendations Accummulated Number of Recommendations Source: Semester report

14 6. Information System for Monitoring the Follow-up of Audit Recommendation (SIPTL) 1. BACKGROUND 2. DEFINITION 3. BENEFITS 4. ROADMAP 5. STRUCTURE AND DEMO 6. CHALLENGES

15 1 BACKGROUND

16 BACKGROUND OF SIPTL Article 20 Law number 15 year 2004 regarding audit of the management and accountability of state finance, stipulates that officers of the audited entity is required to response or follow-up the audit recommendation no later than 60 days; otherwise he shall be given administrative penalty in accordance with employment regulation. Not yet implemented Cannot be implemented Statistics during Strategic Plan (the 1 st term) shows that only 61% of audit recommendations were followed-up completely (considered as an acceptable). However, a new target is set for Strategic Plan (the 2 nd term) is 80%. Partially implemented Fully completed As part of BPK Bureautic Reform Program on the governance system and to provide benefits of e-audit Program to the audited entities. The monitoring of the follow-up of audit recommendation was previously conducted manually, including: The process (submission, analysis, status notification, reporting) The database and documentation

17 2 DEFINITION

18 SIPTL (Information System for Monitoring the followup of audit recommendation) is a real time web based application to administer data regarding the follow-up of audit recommendations; connecting BPK and audited entities. 18

19 3 BENEFITS

20 Database on the Follow-up of the Audit Recommendation (SIPTL) is held updated, accurate, and informative Faster processes, since SIPTL is accessible by all audited entities within wide-large nation area using internet connection Environmentally friendly: less paper and less monitoring cost

21 4 ROADMAP

22 Internal Consolidation April 2016 Final Progress of SIPTL Application July 2016 Evaluation of Piloting Result October 2016 Implementation in Gradual Basis June Implementation in gradual basis, depends heavily on preparedness of audited entities

23 5 Structure and Demo SIPTL

24 SIPTL in the Audit Process Planning Field work Reporting SIPTL Monitoring the Followup Evaluation Business Process of Audit

25 Connection of SIPTL to SMP (Audit Management System) 1 Data of the Audit Report is stored in SMP (Audit Management System), including Audit Recommendation Input the Data of the Follow-up of Audit Recommendation using SIPTL Updated Data on follow-up status in the SMP

26 I N T E R N E T The Architecture of SIPTL B P K Data Inputer and Administrator of Audited Entities (Govt Internal Controllers) monitor the follow-up of audit recommendation ; and report it using SIPTL via Online EXTERNAL A u d i t e d E n t i t i e s DATABASE 1 Auditors to input data from audit report to Reporting Module as shown in Audit Management System (SMP) Application Head of Audit Subdivision to verify the data inputted by the auditors Administrative Officers to input the receipt of submitted audit report Head of Audit Subdivision to verify and assess the follow-up activities reported by the auditee Determined status of the follow-up activities INTERNAL

27 Video Show about the Architecture of SIPTL

28 6. Challenges in Implementation SIPTL

29 Challenges in Implementing SIPTL New platform, needs internalization to auditors and auditees: SOP, basic training and change management Face to face meeting between auditee auditor to discuss the follow-up, is sometimes still needed Internet connection problem for auditees in remote areas Needs feedback from users: for continuous improvement and user-friendly application

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