The Central Government Financial Statements (LKPP) Fiscal Year 2014 is Attributed with Qualified Opinion
Jakarta, Thursday (June 4, 2015) – The Audit Board of the Republic of Indonesia (BPK) attributes the Central Government Financial Statements (LKPP) Fiscal Year 2014 with Qualified Opinion, the same as the opinion for the LKPP Fiscal Year 2013. During 2014, the Government has tried to fix problems causing the unfairness of the Financial Statements Fiscal Year 2013. However, the Government has not effectively followed up recommendations to fix problems related with suspense account and the difference between the physical and budget surplus entries, which resulted in the recurrence of the same problems in 2014.
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.
BPK Chairman stated “the government should concern on those four problems to take some corrective steps, so that there will not any recurring findings in the future”. This was delivered in the Plenary Meeting (6/4) of the handover of the Audit Report of the LKPP Fiscal Year 2014 to the House of Representatives at the House Building, Jakarta. Present in the meeting were the BPK Chairman, Vice Chairman and Members, as well as Officials from BPK.
With regard to the quality improvement of the LKPP, the Government has tried to follow up 54 recommendations out of 172 recommendations based on the audit result of the LKPP Fiscal Year 2007-2013. Furthermore, as part of the accrual-based accounting implementation, the Government has finalized the use of State Budget and Treasury System (SPAN) through the piloting and rollout phases in 2015. BPK Chairman emphasized “We hope that the Government’s decision regarding the accrual-based recognition of revenue and expense implemented as of January 1, 2015 can enhance the reliability of the state financial statements”.
Head of Public Relations and International Cooperation Bureau
R. Yudi Ramdan Budiman