Duties of the Supreme Audit Agency – The Supreme Audit Agency or BPK is a high state institution in the Indonesian state administration system that has the authority to manage and be responsible for state finances.
The Audit Board of the Republic of Indonesia as an institution formed to examine the management and responsibility of state finances which was formed based on the Third Amendment to the 1945 Constitution of the Republic of Indonesia. Article 23E states that to examine the management and responsibility of state finances, an Audit Board is held. Free and independent finance.
BPK members are elected by the DPR while still considering the DPD and then inaugurated by the President. To support its duties, BPK RI is supported by a set of laws in the field of State Finance, namely:
- UU no. 17 of 2003 concerning State Finance;
- UU no. 1 of 2004 concerning the State Treasury;
- UU no. 15 of 2004 concerning Examination of State Financial Management and Responsibility.
CPC history
In Article 23 Paragraph (5) of 1945 it has been stipulated that in order to examine responsibilities related to State Finances, an Audit Board of Finance is held where the rules are determined by law. Then, the results of the financial audit are submitted to the DPR.
Based on the mandate contained in the 1945 Constitution, a Government Decree No. 11/OEM dated December 28, 1946 which contains the establishment of the Financial Audit Board.
At first, the BPK began working on January 1, 1947, at the time of its formation, the BPK had 9 employees chaired by 1 chairman who also served as a member, deputy chairman and 7 members of the BPK. The term of office of BPK members is 5 years and can be elected for 1 term of office. BPK is domiciled in the national capital and has representatives in every province.
Vision and Mission of the Audit Board of Indonesia
Vision:
Become a driving force for managing state finances to achieve state goals through quality and useful audits.
Mission:
- Examine the management and accountability of state finances freely and independently;
- Carry out organizational governance with integrity, independence and professionalism.
Duties of the Audit Board of the Republic of Indonesia
The duties of the Audit Board of the Republic of Indonesia (BPK) are regulated in the Law of the Republic of Indonesia Number 15 of 2006. The duties are as follows:
- The BPK has the task of examining the management and accountability of state finances carried out by the Central Government, Regional Governments, other State Institutions, Bank Indonesia, State-Owned Enterprises, Public Service Agencies, Regional-Owned Enterprises and other institutions or agencies that manage state finances.
- The implementation of the BPK audit was carried out on the basis of the Law on auditing the management and accountability of state finances.
- Audits carried out by the BPK include performance, financial and audits with a specific purpose.
- In carrying out audits of state financial management and responsibility, the BPK conducts discussions on audit findings with the objects examined in accordance with state financial audit standards.
- In the event that an audit is carried out by a public accountant based on the provisions of the Law, the report on the results of the audit must be submitted to BPK and published.
- The results of audits on the management and accountability of state finances are submitted to the DPD, DPR and DPRD. And also submit the results of the examination in writing to the President, Governor and Regents/Mayors.
- For the purposes of following up on audit results, BPK also submits written audit results to the President, Governor, Regent or Mayor in accordance with their authority.
- If during the examination a criminal element is found, the BPK reports this matter to the competent authority in accordance with the provisions of laws and regulations no later than 1 (one) month after the existence of the criminal element is discovered.
Authority of the Supreme Audit Agency
The authority of the BPK is based on Law Number 15 of 2006. The BPK’s authority is as follows:
- In carrying out its duties, BPK has the authority to determine the object of audit, plan and carry out audits. Determining the time and method of auditing as well as compiling and presenting reports is also under the authority of the BPK.
- Request information and/or documents that must be provided by everyone, organizational units of the Central Government, Regional Governments, other State Institutions, Bank Indonesia, State-Owned Enterprises, Public Service Agencies, Regional-Owned Enterprises and other institutions or agencies that manage state finances .
- Carry out inspections at places where money and goods are kept by the state, at places where activities are carried out, books and administration of state finances as well as examination of calculations, letters, evidence, bank statements, accounts and other lists related to the management of state finances .
- Determine the types of documents, data and information regarding the management and accountability of state finances that must be submitted to BPK.
- Establish standards for auditing state finances after consultation with the Central Government or Regional Governments that must be used in auditing the management and accountability of state finances.
- Establish a code of ethics for auditing the management and accountability of state finances.
- Using experts or auditors outside the BPK who work for and on behalf of the BPK.
- Fostering the examiner’s functional position.
- Give consideration to government accounting standards.
- Give consideration to the design of the internal control system for the Central Government/Regional Government prior to being stipulated by the Central Government/Regional Government.
Duties and Authorities of the Chairman of the Audit Board of the Republic of Indonesia
The duties of the chairman of the BPK as well as members are:
- Carry out audits of state financial management and responsibility in general together with the Vice Chair.
- Carry out duties and authorities related to BPK institutions.
- Carry out domestic and foreign institutional relations.
- Carry out fostering the duties of the Secretariat General, Main Directorate of Planning, Evaluation and Development of State Financial Audit, Main Directorate of Legal Development and Development of State Financial Audit, Main Inspectorate, and State Financial Audit Education and Training Agency together with Deputy Chair.
- Provides investigative audit briefings. The objects of their duties and authorities are BPK executors and stakeholders.
Duties and Authorities of Deputy Chairman of BPK
The duties of the deputy chairman of the BPK (concurrently as a member) are:
- Carry out audits of state financial management and responsibility in general together with the Chairman.
- Carry out Treasury Claims Council proposals.
- Carry out the duties of the Secretariat General, Main Directorate of Planning, Evaluation and Development of State Financial Audit, Main Directorate of Legal Development and Development of Financial Audit
- Provides investigative inspection briefings. The objects of their duties and authorities are BPK executors and stakeholders.
Duties and Authorities of Members of the Audit Board of Indonesia
Duties and Authorities of Members I
The task of BPK member I is to carry out audits of state financial management and accountability. The objects of duty and authority are the Coordinating Ministry for Political, Legal and Security Affairs, Ministry of Foreign Affairs, Ministry of Law and Human Rights, Ministry of Defense, Ministry of Transportation, Indonesian Attorney General’s Office, National Police, BIN, BNN, BMKG, National Defense Institute, Wantanas, National Cyber and Crypto Agency, National Commission on Human Rights, KPK, KPU, Basarnas, BNPT, Bawaslu , Bakamla and the institutions formed and related within the entity.
Duties and Authorities of Members II
The task of member II of the BPK is to carry out audits of the management and accountability of state finances. The objects of duties and authorities are the Coordinating Ministry for Economic Affairs, Ministry of Finance, Ministry of Trade, Ministry of Industry, Ministry of PPN/BAPPENAS, Ministry of Cooperatives and SMEs, BKPM, BPS, BI, OJK, PPATK, PT PPA, LPS, BSN, LKPP, KPPU and the institutions formed and related to the entity’s environment.
Duties and Authorities of Members III
The task of member III of the BPK is to carry out audits of the management and accountability of state finances. The objects of their duties and authorities are the MPR, DPR, DPD, MA, BPK, MK, KY, Coordinating Ministry for PMK, Ministry of State Secretariat, Setkab, Ministry of Social Affairs, Ministry of Tourism, Ministry of Manpower, Ministry of Communication and Information, Ministry of Administrative and Bureaucratic Reform, KPPA, Ministry of Youth and Sports, Ministry of Research and Technology-BRN, Ministry of ATR, Kemendesa PDTT, Bapeten, BATAN, BPPT, LIPI, LAPAN, National Library of Indonesia, BNPB, Bapertarum, BKKBN, BKN, BPKP, LAN, ANRI, PPK GBK, PPK Kemayoran, BNP2TKI, LPP RRI, LPP TVRI, TMII, BIG, ORI, BPN, Bekraf, Employment BPJS and the institutions formed and related within these entities.
Duties and Authorities of Members IV
The task of member IV of the BPK is to carry out audits of the management and accountability of state finances. The objects of duty and authority are the Coordinating Ministry for Maritime Affairs, Ministry of Agriculture, KKP, Ministry of Energy and Mineral Resources, Ministry of PUPR, KLHK, BPH Migas, Peat Restoration Agency and institutions formed and related within these entities.
Duties and Authorities of Members V
The task of BPK member V is to carry out audits of state financial management and accountability. The objects of duty and authority are the Ministry of Home Affairs, Ministry of Religion, BPKS, BP Batam, BPWS, BNPP, regional financial management and responsibility in Provincial, Regency, City Governments and Regional Owned Enterprises in Region I (Sumatra and Java) as well as the institutions formed and related to the entity’s environment.
Duties and Authorities of Members VI
The task of member VI of the BPK is to carry out audits of the management and accountability of state finances. The objects of duty and authority are the Ministry of Health, Ministry of Education and Culture BPJS Health, BPOM, regional financial management and responsibility in Provincial, Regency, City Governments and Regional Owned Enterprises in Region II (Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku and Papua) and institution formed and related in the environment of the entity.
Duties and Authorities of Members VII
The task of BPK VII members is to carry out audits of state financial management and accountability. The objects of duty and authority are the Ministry of SOEs, SKK Migas, SOEs and subsidiaries as well as institutions formed and related to these entities.
Functions of the Audit Board of the Republic of Indonesia
There are three functions of the Audit Board of the Republic of Indonesia, as follows:
1. Operative Functions
BPK’s operative function is in the form of inspection, supervision of investigations on the control, management and management of state assets.
2. Judicial function
The judicial function explains the authority to sue the treasury and claim compensation for the treasury and non-treasurer civil servants. The judicial function of the BPK is to authorize acts of violating the law or neglecting obligations to the detriment of state finances and assets.
3. Advisory function
The advisory function gives consideration to the government regarding the management and management of state finances.
CPC Core Values
In its implementation, BPK employees are guided by several basic values. This basic value must of course reflect the integrity of an institution that can be trusted by the community. The following are the basic values held by the BPK institution:
1. The value of integrity
The value of integrity which includes being honest, objective and firm in the application of principles, values and decisions.
2. The value of independence
Uphold independence both institutionally, organizationally, and individually. That way, in carrying out BPK audit activities, it must be from the attitude of personal and organizational disturbances that can affect the independence of the BPK.
3. The value of professionalism
The value of professionalism that applies the principles of prudence, thoroughness, accuracy and is guided by applicable standards.
Types of Examinations Performed by the Financial Audit Agency
There are three types of BPK-RI audits as stipulated in Law Number 15 of 2006 concerning the Audit Board of the Republic of Indonesia article 4, namely financial audits, performance audits and audits with a specific purpose.
1. Financial Audit
Financial audit as an examination of government financial reports (Central, regional, BUMN and BUMD) with the objective of the audit is to provide a statement of opinion/opinion about the level of fairness of the information presented in the financial reports of the central/regional government. The fairness of the financial information presented in the financial statements is based on four criteria:
- Compliance with Government Accounting Standards.
- Adequacy of disclosure.
- Compliance with laws and regulations
- Internal control system effectiveness.
The statement of opinion or opinion as a result of the audit referred to consists of an “Unqualified” opinion. “Unreasonable” Opinion, “Not Giving Opinion” Opinion and “Unfair” Opinion.
2. Performance Check
Performance inspection as an examination of state financial management consisting of examination of economic and efficiency aspects as well as examination of effectiveness aspects. In conducting performance audits, auditors also test compliance with statutory provisions and internal controls.
Performance checks are carried out objectively and systematically on various types of evidence/documents to be able to make an objective assessment of the performance of the organization or program/activity being examined.
As for examples of the purpose of examining results and program effectiveness as well as examining economy and efficiency are assessments of:
- The extent to which the objectives of legislation and organization can be achieved.
- Other possible alternatives that can improve program performance or eliminate factors that impede program effectiveness.
- Comparison between costs and benefits or cost effectiveness of a program.
- The extent to which a program achieves the expected results or causes unexpected impacts.
3. Examination with a specific purpose
Examination with a purpose is an inspection carried out with a special purpose, outside of financial audits and performance audits. Included in the inspection for this particular purpose is an examination of other matters related to finance, investigative examination and examination of the government’s internal control system.
This examination is intended to provide conclusions on a matter being examined. This examination is in the nature of examination, review or agreed upon procedures, covering the fields of finance, investigative examination and examination of the internal control system.
The purpose of auditing state finances is to assess whether the implementation of an activity and its financial management have been carried out in accordance with the applicable regulations and in accordance with the predetermined objectives. In this case, the inspection is carried out by the Internal Supervisory Apparatus (APIP) and the Financial Supervisory Agency.
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