New systems and practices for effective external audit introduced
BPK has developed and implemented new audit systems and practices (State Finance Audit Standard / SPKN, Audit Management Guideline / PMP and BPK's New Code of Ethics) that meet international standards. These implemented standards provide reliable assurance that audit carried out by BPK's auditors is well managed, strictly controlled, properly guided, and uses standardized procedures for each of the three types of audit, as well as for each phase of the audit. The capacity of BPK has been improved, as indicated by the broader coverage of audit objects, increase in the number of performance audits, more advisory services being carried out, and the number of high profile audits being boldly carried out. These achievements have been achieved through the continuous support from the leadership and direction of BPK's Board.
New Systems and Practices for Effective Internal Audit Introduced
New Systems and Practices for Effective Internal Audit Introduced which has strengthened the capacity of the Government's internal auditors through several of STAR-SDP's activities, such as: MONE-IG's scholarship programs for Bawasda and IGs, MOHA-IG's and BPPK's technical training for Bawasdas, and MOF-IG's training and secondment for its staff and that of other ministerial inspectorates.
MOHA-IG has successfully issued a Minister Decree (Permendagri) No. 8 Year 2009 concerning Guideline of Regional Governance Supervision, which provides guidance for BAWASDA in carrying out a supervisory function on the implementation of the obligatory and voluntary functions of local governments. In order to support the implementation of said Permendagri No. 8 Year 2009, MOHA-IG has developed an information system (SIWASDANAS) for handling the audit mechanism carried out by BAWASDA. Moreover, MOHA has exceeded the Project's target by the issuance of Minister Decree (Permendagri) No.1 Year 2010, a decree which enforces implementation of SIWASDANAS. All of those achievements have extended the scope of audit to local government level and improved the effectiveness of planning and management of internal audit by BAWASDA.
New Systems and Practices for BPKP to Fulfill its New Mandate Introduced
With the issuance of PP No.60 Year 2008, BPKP has now received its mandate as internal auditors of the Government and reports directly to the President of Indonesia. At present, BPKP mandates have been made clear and include internal audits in three specific areas: (a) conduct cross-sectoral, treasury, and other audit activities as instructed by the President; (b) review of the Government's financial statements prior to submission to the President, and; (c) manage the implementation of the Government's Internal Control System (GICS).
In connection with the implementation of BPKP's mandate, particularly the implementation management of the Government's internal audit system, the head of BPKP issued a Decree (Perka BPKP- 1326/K/LB/2009) in December 2009 regarding the guidelines on how to implement GICS. This decree, which is based on Article 47 of PP No.60 Year 2008 that states all of the ministers/head of institutions, governors, regents/mayors shall be responsible for the implementation of the GICS within their respective institution, requires a task-force to be established in each Government institution and agency to assist in the implementation of GICS. This task-force supports the effectiveness of the Internal Control System by performing internal control on the implementation of the tasks and functions of the Government institutions including the accountability for the state finance, as well as providing guidance in the implementation of GICS. Currently, the required task-forces have been established and are operational in Government institutions and agencies. A number of Head of Regional Decrees concerning Internal Control System Implementation have been established by respective regional governments as a result of BPKP's continuous effort in socializing the GICS and providing training and technical assistance.
Professional Degree Education and Non-degree Program for Internal Auditors Developed and Implemented
A Professional Degree Education and Non-degree Education Program on state accounting and public auditing for internal auditors have been established by MONE-IG and BPPK, respectively. As of 31 December 2010, more than 80% of Bawasda and 90% of IG participants have successfully graduated from the scholarship program. This achievement has exceeded the project's target. The total number of graduates (578 participants) has increased the number of Government internal auditors trained with public accounting and auditing skills and knowledge.
The participation of BAWASDA staff in the degree and non-degree programs combined with the technical training carried out in BAWASDA has significantly contributed to the capacity development of human resources, which in turn has improved the advisory capacity of BAWASDA.
New Practices for Parliamentary and Regional Parliamentary Oversight of
BPK's Audit Reports Introduced
From 2007 to 2010, DPR Secretariat has produced analysis reports of BPK audit results (three reports in 2007, nine in 2008, fourteen in 2009, and fifty in 2010) and presented them to Parliament. These reports have assisted Parliament in better and easier understanding of BPK's audit results. There is evidence that these analysis reports have been regularly utilized by Parliament as references for discussion with the Government on national budget preparation and amendment matters and on special national issues.
As a result of BPK's continuous effort in promoting the importance of having Parliament follow up on BPK's audit findings, a State Finance Accountability Agency (Badan Akuntabilitas Keuangan Negara or BAKN) has been established within the Parliament. Establishment of BAKN, which is positioned to have the same level as a DPR Commission and has the main task of following up on BPK's audit findings, is an indication of Parliament's willingness to improve oversight capabilities. The DPR Secretariat has developed a Standard Operating Procedures (SOP) that has been established as the daily operation guideline of BAKN.
At regional level, a guideline on the Follow-up of Audit Result of BPK by DPRD has also been developed and enforced through the issuance of Permendagri No. 13 Year 2010. As a result of this achievement there has been an increase in the use of audit reports by DPRD members.
There is clear indication that the above achievements have resulted in an increased willingness of parliaments, at both national and regional level, to improve their oversight capabilities. This in turn will have a positive impact in the improvement of governance in the Republic of Indonesia.
Public Awareness of the Public Sector Audit Function Established
The public awareness program supported by STAR-SDP has improved the knowledge of the public concerning BPK, and enhanced public awareness on public audit activities and objectives. Evidence that supports the effectiveness of the public awareness efforts includes the increase in number of public complaints submitted to BPK after the public awareness program has been carried out. Since the establishment of the public relations plan, BPK has become more active in public awareness campaign, as well as in extending cooperation with international SAI through a strategic public awareness plan and improved communication channels to the public via media workshops, press releases, and other SAI relationships. All of these efforts have helped in the improvement of public awareness on public audit and state finance accountability issues.
Law No. 32 Year 2004 states that the supervisory function of regional government should be carried out not only by the local inspectorate and local parliaments but should also involve public participation. Therefore, STAR-SDP in 2007, through MOHA-IG developed and implemented a campaign model for public participation in order to improve public awareness and public participation in public audit efforts. Based on a survey there was evidence that the number of public reports on suspected local government misuse of budget increased in 2007 compared to previous years. This fact has shown that the public campaign on public awareness improvement was successful.
A public campaign was also carried out by ILMU in order to support improvement of public awareness concerning public audit institutions and the function of each public audit institution. Based on a post survey carried out to review the public campaign results showed that there was an improvement of awareness concerning main assignment and function of BPK, APIP, and BPKP.