HEADLINES

DENPASAR, BPK Public Relations - The Audit Board of the Republic of Indonesia (BPK) has begun audits of Financial Statements of the Local Government (LKPD) and Financial Statements of the Ministry/Institution (LKKL) for fiscal year 2024 using a risk-based approach. The audit focuses on strategic areas with a significant impact on the fairness of the presentation of financial statements.

On this occasion, Board Member VI of BPK, Fathan Subchi, emphasized that the audit objective is not just to provide an opinion on the financial statements but also to encourage fundamental improvements in state and local financial governance. This audit will include a comprehensive evaluation of regulatory compliance, the effectiveness of the internal control system, and the suitability of applying Government Accounting Standards.

The statement was delivered during a series of entry meeting activities for the audit of LKPD and the coordination meeting of the audit of LKKL for fiscal year 2024 within the Directorate General of Audit (DJPKN) VI, which took place at the Auditorium of BPK Regional Office in Bali Province (15/4). The event was also attended by the Minister of Primary and Secondary Education, Abdul Mu'ti, Minister of Higher Education, Science and Technology, Brian Yuliarto, Minister of Health, Budi Gunadi Sadikin. Also present were the President Director of BPJS Kesehatan, Ali Ghufron Mukti, Governors, Regents, and Mayors in the working area of DJPKN VI, along with officials of ministries/ institutions and local governments, both offline and online.

Board Member VI of BPK in his speech conveyed that the audit of LKPD aims to provide an opinion on the fairness of the financial statements by considering four main criteria: conformity with Government Accounting Standards, adequate disclosure of financial information, compliance with laws and regulations, and the effectiveness of the internal control system. The audit will focus on high-risk areas, such as the management of social assistance expenditure, capital expenditure, and long-term debt.

BPK also highlighted the importance of presenting the financial statements of Regional-Owned Enterprises (BUMD), which are an integral part of LKPD. Therefore, communication between BPK and the Public Accounting Firms (KAP) that conducted audits of BUMDs is crucial for gaining confidence in the financial statements consolidation.

Another aspect that has been highlighted is the accountability of the Transfer to Regional and Village Funds (TKDD) in 2024. BPK is committed to ensuring that the allocated funds are used in an accountable manner, in accordance with their designation.

In his closing statement, Board Member VI of BPK encouraged the local government to optimize the utilization of SIAP CONNECT and Local Government Information System of the Republic of Indonesia (SIPD RI) to improve communication and financial statements management efficiency. He further expected full support from all leaders of ministries/agencies and local governments in providing the necessary data and information in a comprehensive and timely manner.

“We hope that this audit can run smoothly and the results benefit the entire region, nation, and state,” concluded Board Member VI of BPK in his closing remarks.