Despite Reaching WTP, BPK Gives 3 Recommendations Notes To LKPD Kaltara Provincial Government

JAKARTA - The Supreme Audit Agency (BPK) Representative of North Kalimantan (Kaltara) provided three notes of recommendations for the 2021 Provincial Government Financial Report (LKPD Pemprov) Kaltara.

This was revealed during the submission of the BPK inspection report (LHP) on the LKPD of the Kaltara Province for the 2021 Fiscal Year (TA) in the Meeting Room of the Regional House of Representatives (DPRD) of Kaltara Province some time ago.

In the submission of the LHP, the Kaltara Provincial Government won the Unqualified Predicate (WTP) for the Kaltara Provincial Government's financial report, with three notes of recommendation.

The BPK audit of LKPD 2021 concerns governance or regulations related to Regional Original Income (PAD) which are not yet fully adequate.

Then there is the overpayment of capital expenditures and goods expenditures, as well as in terms of asset management.

Regarding the results of the LHP audit of the government LKPD, the Governor of Kaltara Zainal A Paliwang said that currently this deficiency is being addressed.

One of them concerns the administration of fixed assets which is completely inadequate.

He said the Kaltara Provincial Government was adjusting the Governor's Regulation (Pergub) accounting policy for the capitalization limit value according to the Regulation of the Minister of Home Affairs (Permendagri) Number 108 concerning Classification and Codefication of Regional Property.

In addition, Zainal instructed all relevant officials to follow the applicable provisions in the selection of regional property codes, as well as discipline in completing asset information on SIMDA-BMD (Regional Property Management System).

"From the report of the Head of the Regional Finance and Assets Agency (BKAD), one by one the BPK notes on LHP-LKPD FY 2021 we are fixing, so that the WTP predicate can be maintained again," said Zainal in a written statement, Monday 27 June.

The head of the Kaltara BKAD, Denny Harianto, explained that the examination of the financial statements is part of the BPK's constitutional duties.

Examination by BPK is carried out using a comprehensive Risk Based Audit (RBA) method based on the principles of integrity, independence, and professionalism.

Based on the examination carried out by BPK, the LKPD of Kaltara Province in 2021 is in accordance with Government Accounting Standards (SAP), adequate disclosure, no non-compliance with laws and regulations that have material value or have a direct effect on financial statements, and an effective internal control system .

Furthermore, Denny explained, the results of the BPK audit were not only to the LHP of the Kaltara Provincial Government LKPD, but also to the performance audit of the Effectiveness of Poverty Reduction Efforts.

"So it concerns the recommendation notes by the BPK, not only the LHP on LKPD. There are also other notes on the LHP for the performance of the Kaltara Provincial Government," explained Denny.

To note, the BPK has submitted data on the results of follow-up monitoring until the second semester of 2021, based on the results of the monitoring, the Provincial Government of Kaltara has followed up on 93.97 percent of the recommendations on the results of the BPK examination.