HEADLINES

On Thursday, June 4, 2015 BPK gives qualified opinion on the Central Government Financial Statement (LKPP) Fiscal Year 2014. It was recognized when the BPK Chairman, Harry Azhar Azis, along with the Vice Chairman, Sapto Amal Damandari, handed in the audit report on the LKPP Fiscal Year 2014 to the Chair of the House of Representatives (DPR RI), Setya Novanto, at the Plenary Meeting in DPR RI Building, Jakarta.

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.

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.

“Due to problems found in the LKPP Fiscal Year 2014, the Government should put more concern on taking some corrective steps, so that the problems causing the fairness of the financial statement can be diminished and not be recurring findings,” the Chairman underlined.

Additionally, the Chairman also mentioned that BPK gave the same opinion to the LKPP Fiscal Years 2013 and 2014. In fact, during 2014, the Government has corrected problems causing the unfairness of the financial statement Fiscal Year 2013. However, the Government has not effectively followed up BPK’s recommendations to fix the problems. The Government has followed up 54 out of 172 recommendations on the LKPP Fiscal Years 2007-2013, while the other 118 recommendations are still in progress.

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.