HEADLINES

​BPK found four problems when auditing the Central Government Financial Statement (LKPP) Fiscal Year 2014, which becomes the exception of the fairness of the LKPP. The problems are the compilation of the incompatibility to the Government Accounting Standards, the weakness of internal control system and the non-compliance with Laws and regulations.

Thus, to these findings, BPK gives qualified opinion to the LKPP Fiscal Year 2014, the same as the LKPP of the Fiscal Year 2013. This was announced by the Chairman of BPK, Harry Azhar Azis, when handing in the LKPP Fiscal Year 2014 to the President of the Republic of Indonesia, Joko Widodo, at the Presidential Palace in Bogor, on Friday, June 5, 2015.

The Chairman mentioned the four problems found are first, the assets mutation entry of Kontraktor Kontrak Kerja Sama (KKKS) of 2.78 trillion rupiahs cannot be explained. Second, the third party debts of three Ministries/Institutions of 1.21 trillion rupiahs cannot be traced down and were not supported by sufficient proofs. Third, there are problems in transactions and/or balances accumulated as budget surplus (SAL) worth 5.14 trillion rupiahs, causing an inaccuracy between the journal entries and the physical. Lastly, problems caused by the inexistence of government mechanism of management and reporting on lawsuits.

The quality of the LKPP Fiscal Year 2014 is lower than the previous year. It can be seen from the number of Ministries/Institutions gaining unqualified opinion, which are 65 Ministries/Institutions in 2013 while it is only 62 in 2014. Meanwhile, in 2014, Ministries/Institutions with qualified opinion and disclaimer are amounted to 17 and 7 entities respectively.

BPK hopes that the government can help follow up the audit report, so that there will not any similar problems found in the following years. The government will then be able to improve the quality of its LKPP.