HEADLINES

JAKARTA, BPK Public Relations – The Audit Board of the Republic of Indonesia (BPK) audited Financial Statements of Central Government (LKPP) for Fiscal Year of 2022 comprising of 82 Financial Statements of Line Ministries (LKKL) and 1 Financial Statements of State General Treasurer (LKBUN). Following the audit, 81 Financial Statements of Line Ministries (LKKL) and 1 Financial Statements of State General Treasurer (LKBUN) obtained Unqualified Opinion (WTP).

"Ministry of Communications and Informatics, one entity which its financial statements are under Financial Statements of Line Ministries (LKKL), obtained Qualified Opinion (WDP) for fiscal year of 2022," Chairperson of BPK, Isma Yatun, said at submission of Audit Report (LHP) on Financial Statements of Central Government (LKPP) for Fiscal Year of 2022 and Summary of Audit Reports (IHPS) II for Fiscal Year of 2022 in between plenary session of the House of Representatives (DPR) in Jakarta, on Tuesday (20/6).

At the submission of audit report, Chairperson said that BPK gave Unqualified Opinion (WTP) on the Financial Statements of Central Government (LKPP) for fiscal year of 2022. She explained that since the qualified opinion on financial statements of Ministry of Communications and Informatics caused no material effect on fairness of the Financial Statements of Central Government (LKPP), BPK provided the unqualified opinion for the LKPP of 2022.

Chairperson informed that some weaknesses in Internal Control System (SPI) and non-compliance with laws and regulations found during the audit were included in the audit report of Financial Statements of Central Government (LKPP). Although these findings had no material effect on fairness of the Financial Statements of Central Government (LKPP), the findings showed an immediate need to improve state financial management and accountability.

One of issues included in the findings is insufficient revenue management and non-compliance of Non-Tax State Revenue (PNBP) management. Considering the issue, BPK recommended the government to optimize supervisory function of tax incentives and their facilities.

Another issue is state receivable settlement and management. They have not been optimum, adequate, and in compliance with laws and regulations, particularly for the state receivables from State-Owned Enterprises (BUMN) liquidity, tax receivables, and non-tax receivables.

"BPK recommends the government to, among other things, secure all collections of state receivables, update tax receivables data, and improve supervisory/control of non-tax receivables," she explained.

The audit report on the Financial Statements of Central Government (LKPP) for fiscal year of 2022 and the Summary of Audit Reports (IHPS) II for fiscal year of 2022 were submitted by Chairperson of BPK to Speaker of the House of Representatives (DPR), Puan Maharani. The submission of audit report at plenary session was attended by Board Member II of BPK, Daniel Lumban Tobing, Board Member VII of BPK, Hendra Susanto, Vice Speakers of DPR, Rachmat Gobel, Lodewijk Freidrich Paulus, and Sufmi Dasco Ahmad, Members of DPR, as well as high-level officials of BPK.

Meanwhile, the Summary of Audit Reports (IHPS) II for fiscal year of 2022 comprises of 388 audit reports. They are 1 financial audit report, 177 performance audit reports, and 210 special-purposed audit reports. The IHPS contains audit findings of Rp25.85 trillion in total. These audit findings include uneconomic, inefficient, and ineffective (3E) management amounting to Rp11.20 trillion and non-compliance with laws and regulations equals to Rp14.65 trillion.

" Following these audit findings, some entities have made follow ups by making deposits/transferring assets amounting to Rp577.69 while the audits are ongoing," Chairperson said.

"The IHPS also includes audit results of national priorities. They are strengthening infrastructure and enhancing stability of political, legal, and security affairs (pulhukam), and public service transformation. The audits were conducted in 29 central government agencies, 90 regional governments, and 4 State-Owned Enterprises (BUMN)," she added.

The IHPS II for fiscal year of 2022 also shows monitoring result of the follow up to audit recommendations provided by BPK from 2005 to 2022. As many as 77% of audit recommendations have been fully followed up, 17% of them have been in progress of being followed up, 5% of them have not been followed up yet, and 1% of audit recommendations has been unable to be followed up.

"Accumulatively, up to 31 December 2022, Rp136.03 trillion assets have been deposited/transferred to state/regional/enterprise treasurer by the entities for making the follow up to audit recommendations provided by BPK," she closed her remarks.