Submit LKPP To President Jokowi, BPK Urges The Government To Follow Up On A Number Of Recommendations

BPK conveys LKPP to President Jokowi/Photo: Antara

JAKARTA - The Supreme Audit Agency (BPK) encourages the government to implement a number of recommendations from the results of the examination conducted by the BPK on the 2021 Central Government Financial Statements (LKPP). recommendations for BPK examination results," said BPK Chairman Isma Yatun when submitting the 2021 LKPP Examination Report at the Bogor Presidential Palace, Thursday 23 June. Government Accounting Standards. The WTP's opinion on the 2021 LKPP is in accordance with the results of the BPK's examination of the LKPP, the Financial Statements of State Ministries/Institutions (LKKL), and the 2021 State General Treasurer Financial Report (LKBUN). LKBUN," said Isma Yatun. From 2005 to 2021, according to Isma Yatun, BPK has submitted 19,802 findings of the LKP, LKKL and LKBUN examinations with 42,553 recommendations to the audited entities. with recommendations, 19 percent have been followed up but not in accordance with the recommendations, 5 percent have not been followed up, and 1 percent cannot be followed up," added Isma Yatun. effective and inclusive and to realize the welfare of the nation We hope that Mr. President can continue to encourage all ministers and institutional leaders to immediately follow up on BPK's recommendations. One of the indicators that can be seen is the achievement of the realization of tax revenues in 2021, which exceeds the target of the 2021 APBN Law," added Isma Yatun.

In his report, Isma Yatun said that there were four LKKLs, namely the Financial Statements of the Ministry of Trade, the Ministry of Manpower, the National Research and Innovation Agency, and the Indonesian Institute of Sciences in 2021 which obtained a Fair With Exception (WDP) opinion. However, overall, the exception to the LKKL does not have a material impact on the fairness of the 2021 LKPP. The results of the BPK examination also reveal eight recommendations regarding the findings of weaknesses in the Internal Control System (SPI) and non-compliance with the provisions of laws and regulations. First, regarding the management of incentives and facilities tax year 2021 amounting to Rp15.31 trillion is not yet fully adequate. BPK recommends that the government re-examine the correctness of the submission of tax incentives and facilities that have been approved by taxpayers and collect tax underpayments and sanctions for providing inappropriate incentives and facilities. adequate. BPK recommends that the government take an inventory of bad debts that have not expired for collection as of June 30, 2002 and take active collection actions in accordance with the provisions. Third, the remaining government investment funds for the national economic recovery in 2020 and 2031 are still around Rp7.5 trillion, which cannot be channeled to PT Garuda Indonesia and to PT Krakatau Steel in the amount of Rp800 billion. BPK recommends that the government return the remaining government investment funds in the context of national economic recovery to PT Garuda Indonesia in the amount of Rp7.5 trillion to the state general treasury account. Fourth, treatment of housing financing liquidity facility funds or FLPP as other long-term non-permanent investments in LKPP in 2021 has not been supported by regulatory alignment, clarity of fund management schemes, and presentation in BP-Tapera's financial reports. BPK recommends that the government establish accounting policies for the presentation of other non-permanent long-term investments related to the management of housing financing liquidity facility funds at BP-Tapera as another legal entity appointed as a government investment operator or OIP. Fifth, implementation budgeting and accountability for non-PC program expenditures. PEN at 80 ministries/agencies of at least Rp12.52 trillion is not fully in accordance with the provisions. BPK recommends the government to improve the mechanism for budgeting, implementation and accountability for spending. Sixth, the remaining regular School Operational Assistance Funds (BOS) for 2020 and 2021 at least amounting to IDR 1.25 trillion cannot be presented as transfer receivables to the regions (TKD). BPK recommends that the government conduct an inventory and reconciliation of the remaining regular BOS funds in 2020 and 2021. Seventh, there are long-term obligations for the pension program which have been disclosed in the notes to the financial statements. BPK recommends that the government instruct the "task force" team to support the acceleration of completion of government accounting standard statements or PSAP regarding employee benefits, including setting a transition period during the process of changing laws and regulations related to pensions. ) so that the potential rights and obligations of the government as a whole cannot be known. BPK recommends that the government establish a monitoring and administrative mechanism for inkraht legal decisions that may result in rights and obligations or the disposal of government assets as the basis for central government financial reporting.