BEA REJEKI TIRTADEWI - AGIA Auditing in... · 2019. 10. 15. · • 2011 - GICS Implementation in...

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


Office in Cape Town and Praetoria, South Africa

• 2015 - Benchmarking Innovation in Manila, Philippines

• 2015 – Broadcaster Factory Inspection in Paris


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


SUMATERA

KAIN TAPIS LAMPUNG

NASIPADANG

DANAUTOBA


JAVA

BATIK JAWA

GUDEGYOGYA

GUNUNGBROMO


KALIMANTAN

BATIK KALIMANTAN

SOTOBANJAR

ISTANAKADRIAH

PONTIANAK


SULAWESI

BATIKTORAJA

TINUTUANPORRIDGE

PANTAI LOSARI


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


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.


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


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


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


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


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


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 Level 380%


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


GIA CAPABILITY MAP

Zero Level 2+ and 3

Level 2+ and 3 Level 2+ and 3Level 2+ and 380%

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

BEA REJEKI TIRTADEWI - AGIA Auditing in... · 2019. 10. 15. · • 2011 - GICS Implementation in...

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