The Audit on the Financial Statements of the DKI Jakarta Province has been in Accordance with the Standard
Jakarta, Wednesday (July 8, 2015) – The Audit Board of the Republic of Indonesia (BPK) has handed the Audit Report of the financial statements of the DKI Jakarta Province Fiscal Year 2014 on July 6, 2015 in the Plenary Session of the Regional House of Representatives (DPRD) of the DKI Jakarta Province. The session was attended by Speakers and Members of the DPRD, the Governor and Vice Governor of the DKI Jakarta, as well as officials of the DKI Jakarta Province.
With regard to the news related with the Governor’s statement to some media about the audit result of the DKI Jakarta Province, BPK needs to clarify several things as follows:
- BPK attributed the financial statements of the DKI Jakarta Province Fiscal Year 2014 with qualified opinion, the same as the opinion for the financial statements Fiscal Year 2013. This was caused by problems found in 2013 that have not been completely followed up, beside other problems found in 2014 such as: (i) the control and security of Other Assets worth Rp 3.5 trillion and their journal entries; (ii) problems of accounts receivable of land and building taxes and vehicle tax that cannot be traced; and (iii) the weakness of the control system of the capital expenditure of 85 procurement contracts.
- BPK also found other issues of concern such as: (i) the cooperation of the use of land asset of 30.88 hectares; (ii) a land purchase for a hospital in West Jakarta; (iii) the value determination on capital shares and DKI’s asset delivery to the Regional Government-owned Enterprises (BUMD); (iv) activities to overcome road damages; (v) the overpayment of health insurance premium; and (vi) the administration of the management of the education operational budget.
- The audit on financial statements aims at giving opinion on the fairness of the financial statements. The financial audit does not aim at revealing fraud in financial management. Nevertheless, if the audit found fraud indicating a potential state loss, it would be stated in the audit report.
- BPK has a strict audit standard including the conduct of quality control and quality assurance stipulated in the State Finance Auditing Standard (SPKN). BPK’s audit is always in accordance with the law by using four criterias, namely: (i) the accordance of the financial statements to the Government Accounting Standard (SAP); (ii) sufficient information presented in the financial statements; (iii) the effectiveness of the internal control system; and (iv) the compliance to laws and regulations.
- According to article 20 Law No. 15 Year 2004, it is stated that the designated official must follow up recommendations of BPK’s audit report and give answers and explanations to BPK within 60 days after the audit report is accepted.
In view of this, BPK’s audit report of the financial statements of the DKI Jakarta Province is final and has been processed through a systematic and measurable quality assurance system following the competency and professionalism and in accordance to the applied auditing standard and procedure.
Head of Public Relations and International Cooperation
Yudi Ramdan Budiman