LKPP Fiscal Year 2014 with Qualified Opinion is Handed to the President
Jakarta, Friday (June 5, 2015) – As part of the handover of the Audit Report of the Central Government Financial Statement (LKPP) Fiscal Year 2014 conducted on Friday (6/5) at the Bogor Presidential Palace, the Chairman of the Audit Board of the Republic of Indonesia (BPK) accompanied with the Vice Chairman and Board Members handed the President the Audit Report of the LKPP. The ceremonial meeting was also attended by the Vice President and the Cabinet, as well as the Secretary General/Principal Secretary of Ministries and Institutions.
BPK gives Qualified Opinion to the LKPP Fiscal Year 2014. It is the same opinion as the opinion BPK gave to the LKPP Fiscal Year 2013. BPK found four problems when auditing the LKPP Fiscal Year 2014. The four problems are first, the assets mutation entry of Kontraktor Kontrak Kerja Sama (KKKS) worth 2.78 trillion rupiahs cannot be explained. Second, the third party debts of three Ministries/Institutions worth 1.21 trillion rupiahs cannot be traced down and were not supported by sufficient proofs. Third, problems in transactions and/or balances accumulated as budget surplus (SAL) worth 5.14 trillion rupiahs has caused the inaccuracy between the physical and journal entries. Fourth, problems caused by the inexistence of government managerial mechanism and reporting of lawsuits.
The numbers of Ministries and Institutions with the unqualified opinion decreases from 65 in 2013 to 62 in 2014. Meanwhile, the numbers of Ministries/Institutions with qualified opinion and disclaimer in 2014 are 17 and 7 respectively. The Chairman emphasized “The Government has to work hard to improve the accountability and transparency of the financial statements because the quality in 2014 is decreasing compared to the previous year”. BPK appreciates the Government for its every effort to improve the quality of the LKPP formulation each year.
Beside delivering the Audit Report of the LKPP Fiscal Year 2014, BPK also gives its opinion to expedite the efforts to improve the state finance management such as (1) the certification of the central government’s land needs to be a national program accompanied with real implementation; (2) abandoned land and buildings should be inventoried; (3) the need to draw the management of asset policy of the ex-property of the Indonesian Bank Restructuring Agency (BPPN); (4) the need to formulate the policy on tobacco customs and VAT payment; (5) the technical assistance of the central government to the regional government regarding the handover of the property tax; (6) the review of the policy and regulation of the year-end expense implementation; and (7) the target harmonization, the strengthening of capital structure, the improvement of human resources and business of the Regional-owned Drinking Water Enterprise (PDAM) in the National Program of Clean Water Supply.
Head of Public Relations and International Cooperations Bureau
R. Yudi Ramdan Budiman