Accrual-based LKPP FY 2015 Predicated with Qualified Opinion (WDP)
The Audit Board of the Republic of Indonesia (BPK) has given the qualified opinion (WDP) to the financial statements of the Central Government (LKPP) Fiscal Year 2015, which was the same as the opinion given by BPK for the previous Fiscal Year of 2014. The result of the audit includes 14 issues related to the weaknesses of the Internal Control System (SPI) and 8 findings on Compliance with laws and regulations.
Year 2015 was the first year in which the accrual-based Government Accounting Standard (SAP) was applied on the Government financial statements. It is hoped that with this application of the accrual-based accounting, the Government’s financial statements will be more accountable and transparent in presenting information on the accountability of management of state finance in order to support achievement of people’s welfare and prosperity, as expressed by Chairman of BPK, Harry Azhar Azis, when he presented the Audit Report (LHP) on LKPP FY 2015 to the leaders of the House of Representatives (DPR) in the Plenary Session at the DPR building, Jakarta, Thursday 2 June 2016.
Six issues that influence LKPP opinion are among others: (1) Uncertainty of the participation value of State capital in PT PLN (Persero), (2) the Government sets the Retail Selling Price of Subsidized Diesel Fuel higher than the basic price including taxes less by fixed subsidy hence burdening the consumers and favoring the business entity by Rp3.19 trillion, (3) Non Tax Liabilities at the Prosecutor’s Office of the Republic of Indonesia in the amount of Rp1.82 trillion from the compensation money from cases of corruption crime and at the Ministry of Energy and Mineral Resources in the amount of Rp33.94 billion and USD206.87 million from land rent, Royalty, and sales of Mining Products (PHT) are not supported by adequate documents of sources and Rp101,34 billion does not match the result of confirmation to the taxpayer, (4) Inventory at the Ministry of Defense in the amount of Rp2,49 trillion is not fully supported by adequate administration, recording, consolidation and reconciliation of State assets, while the inventory to be delivered to the Public at the Ministry of Agriculture in the amount of Rp2,33 trillion cannot be explained of their status of delivery, (5) Recording and presentation of note and physical form of surplus budget balance (SAL) is not accurate, hence BPK cannot have the confidence over the reasonableness of the transaction and/or balance related to SAL in the amount of Rp6.60 trillion, (6) Direct correction reduces the equity by Rp96,53 trillion and the inter-entity transactions of Rp53,34 trillion cannot be explained and are not supported by adequate documents of sources.
The result of audit by BPK on the Year 2015 LKPP also reveals several significant problems, namely: (1) Application of accrual-based Government Accounting Standard is not supported by an Accounting Policy, (2) Issues of tax administration among others Bad Tax liability in the amount of Rp38,22 Trillion have yet to be handled in the form of adequate collecting measure, the Government has yet to settle the issue of inconsistency in the use of tax tariff in the calculation of income tax from oil and gas, and the DJP has yet to collect the fund from Administrative sanctions in the form of interest and penalties in the amount Rp8.44 trillion, (3) the total number of Ministries and Agencies (KL) receiving Unqualified opinion (WTP) is 56, while 26 KL receive Qualified Opinion (WDP) and 4 KL received disclaimer opinion (TMP).
As an effort to encourage transparency and accountability in the management and accountability of State Finance, BPK has completed the LHP on Year 2015 LKPP with additional reports in the form of Report of Monitoring of Follow up actions to LKPP Year 2007-2014 and Report of Result of Review of the implementation of Fiscal Transparency. BPK Chairman expects that the House of Representatives of the Republic of Indonesia may assist the follow up action of LHP LKPP by the Government hence there will be no similar problems in the following year and the quality of LKPP can be always improved by the Government.
Head of Public Relations and International Cooperation Bureau
R Yudi Ramdan Budiman