BEA REJEKI TIRTADEWI - AGIA...BATIK JAWA GUDEG YOGYA GUNUNG BROMO. INDONESIA a brief introduction...
Transcript of BEA REJEKI TIRTADEWI - AGIA...BATIK JAWA GUDEG YOGYA GUNUNG BROMO. INDONESIA a brief introduction...
BEST PRACTICES IN INTERNAL AUDITING
Cebu City, October 8-11, 2019
BEA REJEKI TIRTADEWI
ExampleS FROM THE IndonesiaN Public Sector
CURRICULUM VITAE
Dra. Bea Rejeki Tirtadewi, Ak, MM, CRMP, CA, CFrA,
QIA
• Born in Surabaya, May 30, 1962
• Current Position: Director of Local Government
Governance Supervisory of Financial and Development
Supervisory Board (BPKP)
• Current Rank: Pembina Utama Madya / IV d
• Have 32 years experience in BPKP
ASSIGNMENTS
• 1986-1988 – first posting as a Team Leader in South
Central Kalimantan Representative Office
• 1988 - 2000 – Became Team Leader then Section Head in
Deputy of State-Owned-Enterprise Supervisory
• 2000 - 2010 – Became Technical Controller then Sub
Directorate Head in Deputy for Economics and Maritime
Supervisory
• 2010 - 2017 – Became Sub-Directorate Head then
Director in Deputy for Politics, Law, Security, and Human
Development and Culture Supervisory
• 2017 – now - Director of Local Government Governance
Supervisory in Deputy for Local Government Supervisory
SHORT COURSES
• 2007 - Factory Inspection Suramadu Bridge, Shanghai and
Beijing, China
• 2010 - COSO Training in IIA Global Head Quarter Altamonte
Springs Orlando, Florida, USA
• 2010 – Toll Road Equipment Benchmark of Cikopo Palimanan
Toll Road in PT PLUS Kualalumpur Malaysia
• 2011 - GICS Implementation in Indonesian Representative
Office in Melbourne, Australia
• 2012 - HLC (High Level Commitee) Participants in Airbus
Military Spain, GROB Jerman Training Aircraft, and Nexter
(Caesar) Perancis
• 2012 - BPKP Customized Risk and Controls Training,
Washington DC, USA
• 2013 – GICS Implementation in Indonesian Consulate General
in Jeddah and in South Korean Embassy in Seoul
SHORT COURSES
• 2013 - HLC (High Level Commitee) Participant to Bell
Helicopter Textron Inc and Pratt & Whitney Montreal Canada
• 2014 - HLC (High Level Commitee) Participant in Missile
Inspection to Sao Paolo, Rio De Jainero, Brasilia, Brazil
• 2014 - GICS Implementation in Indonesian Representative
Office in Cape Town and Praetoria, South Africa
• 2015 - Benchmarking Innovation in Manila, Philippines
• 2015 – Broadcaster Factory Inspection in Paris
• 2016 - GICS Implementation in Indonesian Representative
Office in Tashkent, Usbekiztan
• 2015 – Antenna Factory Inspection in Melbourne
• 2018 - Organizational Integrity Overseas Training, The
Hague, Holland
AGENDA
• INTRODUCTION• BEST PRACTICES• ACHIEVEMENT
INTRODUCTION
Population (2018)
267 million
GDP (2018)
USD1,040.50 billion
Economic Growth
(average 2014-2018)
5.03%
National Budget (2019)
USD 170.91 billion
Subnational Budget
(2018)
USD 86.11 billion
Total SOEs (2018)
115
Total asset of SOEs
(2018)
USD 603.88 billion
Government Agencies
86 Ministries & Agencies
34 Provinces
508 municipalities and cities
INDONESIAa brief introduction
INDONESIAa brief introduction
SUMATERA
KAIN TAPIS LAMPUNG
NASIPADANG
DANAUTOBA
INDONESIAa brief introduction
JAVA
BATIK JAWA
GUDEGYOGYA
GUNUNGBROMO
INDONESIAa brief introduction
KALIMANTAN
BATIK KALIMANTAN
SOTOBANJAR
ISTANAKADRIAH
PONTIANAK
INDONESIAa brief introduction
SULAWESI
BATIKTORAJA
TINUTUANPORRIDGE
PANTAI LOSARI
INDONESIAa brief introduction
PAPUA
BATIKPAPUA
PAPEDA
RAJA AMPAT
LegislatureSupreme Audit
BoardPresident
Ministries Agencies
Ministry/Agency Inspectorates
Governors
Provincial
InspectoratesHeads of
MunicipalityMayors
Municipal/City
Inspectorates
Audit Reporting Lines
SUBNATIONALGOVERNMENTS
INTERNAL AUDITAGENCIES
• Cross Sectoral
Programs and
Activities
• Activities
Directly Funded
by The State
Treasury
• Other Activities
by Assignment
from The
President
Sectoral Program
and Activities
funded by The
National Budget
Sectoral Program
and Activities
funded by The
National Budget
86 UNITS
34 UNITS
508 UNITS
AUDIT AGENCIES IN INDONESIAN PUBLIC SECTOR
THREE PHASES OF
Assurance Phase
1983-2000
Strategic Business
Partner Phase
2001-2013
Trusted Advisor Phase
2014 - Now
Audit activities as the
main assignment. An
independent position
enables the practice of
objective and effective
assurance
Supervisory activities
were focused on
preventive and assistive
approach including
Government Internal
Control System (GICS)
assistance
Strategic role in
safeguarding finance
and development
accountability.
Demanded to provide
faster, relevant, on time,
excellent,
comprehensive, and
reliable supervisory
report for decision
making
STRUCTURE
Chairman
Deputy for Economics and Maritime Supervisory
Deputy for Politics, Law, Security, and Human
Development and Culture Supervisory
Deputy for Local Government Supervisory
Deputy for State Owned Enterprises Supervisory
Deputy for Investigation
Prime Secretary
Inspectorate Training Centre Research CentreIT and Information
Centre
Govt. Internal Auditor
Development Centre
34 Representative Offices
ROLES
• Formulate National Supervisory Policy
• Conduct Audit, Review, Evaluation, Monitoring , and Other
Supervision of Planning , Implementing, and Accountability
of Financial and Development
• Internal Audit of Government Asset Planning and
Utilization
• Provide Consulting Services on Risk Management, GICS,
and Good Governance
• Perform Escalation, Claim, and Investigative Audit
• Coordinate Implementation of Government Internal Audit
• Review Government Financial and Performance Report
• Perform Special Assignments based on Government
Request
• Develop Competency, Career, and Performance of
Government Internal Auditor
BESTPRACTICES
FRAMEWORK
SPIP APIP
Risk Management Risk Based Internal
AuditRisk Culture
POLICY OF GOVERNMENT CYCLE PROCESSPlanning, Budgeting, Implementing, Reporting, and
Monitoring
GOVERNMENT ACCOUNTABILITYFinancial and Performance
PEOPLE WELFARE
GOVERNMENT INTERNAL
CONTROL SYSTEM (GICS)
GOVERNMENT
INTERNALAUDITOR
(GIA)
STRENGTHEN
SUPPORT
Maturity Level 3 Capability Level 3
SAFEGUARDING
GIA TRAINING CENTRE
GIA DEVELOPMENT
CENTRE
Involvement in cabinet meetings
Integrated FinancialManagement System
(Simda)
Village FinancialManagement System
(Siskeudes)
Village Fund Review
Soe Merger Review
Monitoring Of Budget Absorption And
Procurement
Poverty Eradication Program Audit
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GIA TRAINING CENTRE
• Vision (To be a pioneer and accountable Internal Auditor Training
Centre) → GIA CORPU
• Mission (To Improve Professionalism & to enhance Human Resource
Capability)
• Roles & Services (Implementing, Coaching, & Coordinating)
• Infrastructure (Classroom, Green Park, Meeting Room, e-Learning, etc.)
• Accreditation & Quality Assurance (LAN, ISO 9001:2015, Procurement
Acc, & Corruption Free Area)
GIA DEVELOPMENT CENTRE
• Mandate (BPKP should develop competency, career, and performance of GIA
to be professional Civil Servant)
• Vision (Professional government internal auditors to improve government
internal audit capabilities)
• Mission (To Improve Professionalism & to provide Excellent Services)
• Roles & Services (Competency Development, Performance Development, &
Career Development)
• IT – Based Service by Developing Information System - SIBIJAK
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
Involvement in cabinet meetings
• President instructs the attendance of the Chairman in Cabinet
Meetings.
• Strategic National Issues: infrastructure projects, poverty
eradication programs, food security program, state-owned
enterprises, etc.
• Emphasis on prevention mechanism, to mitigate risks, prevent
fraud, and ensure program/policy effectiveness.
• Implications: wider involvement of BPKP in national policy
cycle and better contextual understanding of BPKP to
improve the quality of internal audit activities.
• Results: recommendation on strategic national issues.
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GICS MATURITY
Internal control maturity level
indicates the ability to perform
and achieve targeted outcomes
with transparency and
accountability
Elements of GICS
1. Monitoring and Evaluation2. Information and Communication3. Control Activities4. Risk Assessment5. Control Environment
Maturity
Level
LEVEL 1 - INITIALAdhoc, unorganized, uninstitutionalized
LEVEL 2 - DEVELOPINGUndocumented and depended on individuals. Non-existent
internal control effectiveness evaluation
LEVEL 3 - DEFINED
Documented, effectiveness evaluation is done
but undocumented
LEVEL 0 No Policies and Procedures
LEVEL 4 - MANAGEDEffective, effectiveness evaluation
is done, documented and
conducted regularly
LEVEL 5 -OPTIMUMContinuous,
integrated, and
utilize IT
Based on Government Regulation 60/2008 on GICS
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GIA CAPABILITY
Adapted from Internal Audit Capability Model from IIA
Elements of GIA Capability
1. Governance Structures2. Organizational Relationship and Culture3. Performance Management and
Accountability4. Professional Practices5. People Management6. Services And Roles
Capability Level
LEVEL 2 - INFRASTRUCTURE
Ability to provide assurance on compliance. Regular activities
LEVEL 3 - integrated
Ability to provide advisory services and assurance on
performance. Activities conform to professional framework
LEVEL 4 -MANAGEDAbility to provide complete assurance on governance,
risk management and internal control. Activities use
integrated information across organization
LEVEL 1 - INITIALUnstructured activities, dependent on individuals, uninstitutionalized
LEVEL 5 - OPTIMIZINGAgent of change. Activities utilized
learning from inside and outside
organization
SIMDA
Refining Business Processes
• Embedding internal control into financial management information
system
• Simpler business process
Reaching more than 80% subnational government units
• Implemented in provinces, municipalities, and cities
• Processes involve financial planning, budgeting, treasury, and
reporting
Enhancing the quality of financial management
• Information system helps subnational governments to enhance the
quality of their financial reporting
SISKEUDES
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
VILLAGE FUND REVIEW
New collaborative approach
• Involving more than 400 internal audit agencies at subnational level
Nation wide implementation
• Provision of guidance to work in national context
Evidence for future funding policy
• Provide analysis on village fund disbursement in 74.954 villages.
SOE MERGER REVIEW
Analysing value creation
• Using financial ratios and estimates, and potential value for development
programs
Implemented before Merger
• Providing assurance for value creation after Merger
Accounting and development perspectives
• Wider consideration regarding Merger of SOEs; linking to national
priorities
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
MONITORING OF BUDGET ABSORPTION AND PROCUREMENT
Collaborative engagement to provide national view
• Opportunities to identify bottlenecks and structural problems in the procurement
system
• Continuous monitoring of budget absorption
Continuous update to enable timely response
• Implemented by internal audit agencies across different levels
Provide evidence for debottlenecking and policy updates
• Enable analysis of policy that influence speed of budget absorption
• Identify weakness in the business process
POVERTY ERRADICATION PROGRAM AUDIT
Critically analyse poverty eradication program
• Involving different business processes in different ministries and agencies
Implemented in the intervention period
• Providing assurance in the effectiveness of business processes
Finding inclusion and exclusion errors
• Providing evidence in different poverty eradication activities and their
complementarities
ACHIEVEMENT
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GICS MATURITY
No Institutions Population Target Real. Percentage
Of Target Of
Population
1 Ministries and
Agencies
86 74 47 63.51% 54.65%
2 Provincial
Government
34 29 23 79.31% 67.65%
3 Municipal/City
Government
508 356 207 58.15% 40.75%
Total 628 459 277 60.35% 44.11%
*by September 13, 2019
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GICS MATURITY MAP
Sumut4 of 34
Sumbar14 of 20
Lampung10 of 16
Jabar12 of 28
Jateng25 of 30
Jatim27 of 39
Kalbar9 of 15
Kalteng6 of 15
Sulut8 of 16Gorontalo
5 of 7
Sulsel9 of 25
Sulbar6 of 7
Sultra3 of 18
Bali10 of 10 NTB
7 of 11NTT
0 of 23
Papbar0 of 14
Aceh1 of 24
Riau7 of 13
Kep. Riau5 of 8
Jambi0 of 12
Bengkulu1 of 11
Sumsel10 of 18
Banten8 of 9
DKI1 of 1
DIY11 of 12
Kalsel12 of 14
Kaltim9 of 11
Kaltara2 of 6
Sulteng3 of 14
Maluku3 of 12
Malut0 of 11
Papua0 of 30
Babel2 of 8
4,17%
62,50%71,43%
33,33%
62,5%
53,85%
11,76%
60%
9,09%
25%
0%
70%
83,33%
88,89%
100%
55,56%
36%
16,67%85,71%
21,43%
50%
100%
85,71%
42,86%69,23%
91,66%
0%
25%
0%
0%
63,64%
81,82%
40,00%
0%
Zero Level 3
Level 3 <50%
50%>Level 3<80%
Level 3>80%
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GIA CAPABILITY
No Institutions Population Target Real. Percentage
2+ 3 Total Of
Target
Of
Population
1 Ministries and
Agencies
86 73 27 17 44 60.27% 51.16%
2 Provincial
Government
34 29 13 8 21 72.41% 61.76%
3 Municipal/City
Government
508 356 206 22 228 63.76% 44.69%
628 458 246 47 293 63.97% 46.50%
*by September 13, 2019
Vision (To be a pioneer and accountable Internal Auditor Training Centre) → GIA CORPU
GIA CAPABILITY MAP
Zero Level 2+ and 3
Level 2+ and 3 <25%
25%>Level 2+ and 3<50%
50%>Level 2+ and 3<75%
Level 2+ and 3 >80%
Level 3
Sumut13 L2+of 34
Sumbar18 L 2+of 20
Lampung
7 L2+of 16
Jabar10 L2+of 28
Jateng
12 L2+of 30
Jatim11 L2+of 39
Kalbar
11 L2+of 15
Kalteng
10 L2+of 15
Sulut6 L2+of 16
Gorontalo
5 L2+of 7
Sulsel
4 L2+of 25
Sulbar
5 L2+of 7
Sultra0 of 18
Bali10 L2+of 10
NTB
5 L2+of 11
NTT6 L2+of 23
Papbar2 L2+of 14
Aceh9 L 2+of 24
Riau8 L 2+of 13
Kep. Riau8 L2+of 8
Jambi
4 L 2+of 12
Bengkulu3 L2+of 11
Sumsel
7 L2+of 18
Banten8 L2+of 9
DKI1 L2+of 1
DIY
5 L2+of 12
Kalsel
3 L2+of 14
Kaltim
7 L2+of 11
Kaltara
1 L2+of 6
Sulteng3 L2+of 14
Maluku6 L2+of 12
Malut9 L2+of 11
Papua0 of 30
Babel
2 L2+of 8
SIMDA MAP (by September 2019)
Under National Average
Above National Average
but Below 100%
100% Implementation
Aceh19 of 24
(16 of 19)Sumut
29 of 34(6 of 29)
Sumbar11 of 20(8 of 11)
Riau 3 of 13(2 of 3)
Kepri6 of 8
(4 of 6)
Jambi6 of 12(5 of 6)
Bengkulu 11 of 11
(10 of 11)
Babel 7 of 8
(7 of 7)
Lampung 14 of 16(7 of 14)
Banten0 of 9
(0 of 0)
Jabar15 of 28(7 of 15)
Jateng19 of 30(8 of 19)
DIY 7 of 12(2 of 7)
Jatim20 of 39
(16 of 20)
Bali7 of 10(5 of 7)
NTB 11 of 11(9 of 11)
NTT 20 of 23
(13 of 20)
Kalbar6 of 15(6 of 6)
Kaltara6 of 6
(3 of 6)
Kaltim8 of 11(6 of 8)
Kalsel12 of 14(8 of 12)
Kalteng13 of 15
(10 of 13)
Sulut16 of 16
(10 of 16)
Gorontalo 7 of 7
(3 of 7)
Sulteng13 of 14(8 of 13)
Sultra18 of 18
(18 of 18)
Sulbar7 of 7
(6 of 7)
Sulsel13 of 25(7 of 13)
Malut10 of 11(8 of 10)
Maluku12 of 12(4 of 12)
Pabar14 of 14(8 of 14)
Papua 15 of 30(8 of 15)
Sumsel18 of 18
(11 of 18)
DKI0 of 1
(0 of 0)
National Implementation Total:• All SIMDA 444 of 542 (81,92%)• SIMDA Finance 393 of 542 Local
Government (72,51%)
National Implementation Total :• SIMDA Planning 253 of 542 Local
Government (46,68%) • SIMDA Planning Implementation on
Institution that Implemented SIMDA Finance: 253 dari 393pemda (64,38%)
32
SISKEUDES MAP
Under National Average
Above National Average
but Below 100%
100% Implementation
Aceh
90,09%
(100,00%)
Sumut
95,18%
(100,00%)
Sumbar
100,00%
(100,00%)
Riau
100,00%
(100,00%)
Kepri
100,00%
(100,00%)
Jambi
100,00%
(100,00%
)
Bengkulu
99,48%
(99,70%)
Babel
100,00%
(100,00%)
Lampung
95,52%
(100,00%
)
Banten
100,00%
(100,00%)Jabar
97,67%
(100,00%
)
Jateng
93,91%
(95,98%
)
DIY
100,00%
(100,00%
)
Jatim
97,55%
(98,07%
)
Bali
100,00%
(100,00%)
NTB
97,79%
(100,00%
)
NTT
98,02%
(100,00%)
Kalbar
100,00%
(100,00%)
Kaltara
78,97%
(84,56%
)
Kaltim
100,00%
(100,00%
)
Kalsel
99,89%
(100,00%
)
Kalteng
100,00%
(100,00%)
Sulut
100,00
%
(90,51%
)Gorontalo
100,00%
(100,00%)
Sulteng
99,57%
(99,95%
)
Sultra
97,02%
(97,02%
)
Sulbar
100,00%
(100,00%)
Sulsel
100,00%
(100,00%)
Maluku
100,00%
(100,00%)
Pabar
69,63%
(100,00%
)
Papua
33,60%
(85,94%
)
Sumsel
99,96%
(100,00%
)
Malut
98,87%
(100,00%
)
National Total:
• Assistance 73.534 of 74.954
Villages (98,11%)
• Implementation 68.88% of 74.954
Villages (91,90%)
• Opportunities for evolving the role of GIAbasically driven from top management (i.e.President).
• Head of GIA should continuously develops GIAcapabilities to face with more challenging role.
• Innovations can gain more traction if they arealigned with the problems/issues encounteredboth at policy making and operational level.
• Community of Practice is needed to exchange bestpractices of GIA.
Lessons Learned
Jalan Pramuka No. 33,
North Utan Kayu, Matraman, East Jakarta. 13120
Phone. +622185910031
Fax. +622185907990
Mail: [email protected]
Phone: +6281908257289