HEADLINES

JAKARTA, BPK Public Relations – The audit opinion achieved by regional government financial statements (LKPD) exceeded the regional financial performance as targeted in the National Medium-Term Development Plan (RPJMN) Year 2015-2019. It was revealed by BPK Chairman Agung Firman Sampurna when delivering the Summary of Audit Reports of the First Semester of 2020 (IHPS I 2020) to Chairman of the Regional Representatives Council (DPD) La Nyalla Mattalitti, Tuesday. It was witnessed both physically and virtually by DPD Vice Chairman and Members, BPK Board Member I Hendra Susanto, and other BPK officials.

The BPK Chairman said the opinion achieved had exceeded the 2019 regional financial performance targets of 85%, 60%, and 65% respectively for provincial, regency, and city governments, in the field of the strengthening of the regional governance/financial capacity development program.

"The 34 Provinces or 100% Provinces in Indonesia have all achieved the unqualified opinion, whilst 364 out of 415 regencies (88%) and 87 out of 93 cities (94%) recorded the same achievement," BPK Chairman said at the DPD Plenary Session held at the DPD Building in Jakarta.

Further in his speech, the BPK Chairman said that in the first semester of 2020, the BPK had audited 541 LKPD Fiscal Year 2019 out of 542 existing regional governments. It was Waropen Regency in Papua Province that had not yet submitted its financial statements to the BPK.

He noted an increase in the number of unqualified opinion achieved by the LKPD, from only three LKPD (0.65%) in 2006 to 485 LKPD (90%) in 2019. According to him, the increase of the LKPD quality was partly because regional governments had made improvements by recalculating the value of the opening balance of inventories and making necessary corrections in the presentation of inventories disclosed in the financial statements.

Apart from that, regional governments had also carried out gradual tracking and updating of fixed assets in the inventory cards, as well as recovered the excess of capital and goods and services expenditures by depositing in the regional treasury.

"The reason why 56 LKPD have not yet achieved unqualified opinion is that there are still material inconsistencies found if compared to the Government Accounting Standards (SAP) or insufficient evidences to support the fairness of the presentation of the LKPD," he explained.

In front of the DPD Members, he added that the BPK was always pro-active in encouraging transparency and accountability of the state financial management, as well as in strengthening commitment and competence of regional governments in implementing governance, regional development, and public services. He expected that IHPS I 2020 and BPK’s audit reports could be followed up accordingly.

With regard to audit findings and recommendations requiring deepening discussions, the Chairman emphasized that the BPK is open to providing explanations, as it could also hold a focus group discussion or a workshop for the purpose of the follow up of audit results.