HEADLINES

SURABAYA, BPK Public Relations – The Audit Board of the Republic of Indonesia (BPK) submitted the Audit Report on Financial Statements of East Java Provincial Government for fiscal year 2023 to Regional House of Representatives (DPRD) of East Java Province and the East Java Provincial Government.

Board Member V of BPK RI, Ahmadi Noor Supit, handed the audit report in person to Acting Governor of East Java, Adhy Karyono, and Speaker of the DPRD of East Java Province, Kusnadi, at the plenary session of the DPRD of East Java Province in Surabaya, (2/5).

In his speech, Board Member V of BPK mentioned that BPK gave an Unqualified Opinion with an emphasis on one matter for the Financial Statements of Regional Government (LKPD) fiscal year 2023. This emphasis was related to inadequate internal control over monitoring and evaluating grant expenditure accountability in order to mitigate the risk of misuse.

Despite obtaining a unqualified opinion, BPK identified several issues requiring attention, including:

1. The implementation and regulation of accounting policies pertaining to recognition of social assistance expense by the East Java Provincial government was not in accordance with Government Accounting Standards (SAP).
2. There are budget irregularities and misallocation for both goods and services expenditures and capital expenditure in 5 regional working units (SKPD).
3. The management of reclamation and post-mining guarantees was not complied with provisions.

BPK recommended several actions to address these issues, including enhancing the Head of Financial and Regional Revenue Management Agency (BPKAD)'s understanding of SAP in terms of social assistance expense recognition. BPK also advised head of the relevant SKPD to process the excess payments for unperformed works and a shortfall in work volume of Rp1.2 billion that did not in comply with the provisions.

Furthermore, Board Member V of BPK emphasized the importance of effectively and efficiently utilizing the Regional State Budget (APBD). The East Java Provincial Government is required to not only focus on achieving the unqualified opinion, but also to foster a culture of transparent and accountable financial management.

"Every rupiah allocated through the APBD is not just a number in a financial report, but also represents public trust and people's hopes for improving their quality of life," said Board Member V of BPK.

Board Member V of BPK added that the latest figures in the East Java region show a comparatively decent scenario when compared to the national average. However, indices like poverty and unemployment rates require continued attention.

"Continuous improvement is key to ensuring that all communities benefit from the use of every rupiah from the APBD," he stressed.

The handover was attended by Vice Speaker of the DPRD of East Java Province, Anik Maslachah, Members of the DPRD of East Java Province, Director General of Audit V of BPK Slamet Kurniawan, Head of BPK Regional Office in East Java Province Karyadi, members of the East Java Province Regional Leadership Communication Forum (Forkopimda), and officials of BPK Regional Office in East Java Province.