The Financial and Development Supervisory Agency (BPKP) together with other Government Internal Supervisory Apparatus (APIP) consisting of the Inspectorate of Ministries/Institutions/Regional Governments have reaffirmed their determination to oversee village finances so that the village development process is more accountable in accordance with the mandate of Law No. 6 of 2014 concerning Villages.
The affirmation is related to the plan to implement the 2017 National Coordination Meeting of Government Internal Supervision which will be held in Jakarta on May 18, 2017. The event will be attended by the President of the Republic of Indonesia with participants from APIP Ministries/Institutions and Regional Governments, as well as representatives of provincial/district/city governments and village governments.
A survey conducted by BPKP at the end of 2014 showed that village conditions vary from village governments with minimal infrastructure due to electricity supply constraints, to village governments that are already advanced because they are technology-based (web/internet). The quality of human resources is generally inadequate (they do not understand financial management), because their education levels vary.
In addition, there are still villages that have not prepared a Village Government Work Plan (RKP), do not have the procedures needed to ensure orderly administration and management of village finances and assets, and have not prepared reports in accordance with the provisions.
The evaluation of the Village Budget has also not been supported by the readiness of sub-district officials and supervision has not been supported by adequate human resources at the Regency/City APIP level.
BPKP synergizes with ministries/institutions and local governments to strengthen the internal control system for village financial management through the development of village financial management system applications and increasing APIP capabilities in overseeing village finances.
Together with the Ministry of Home Affairs, BPKP has encouraged accountability in village financial management by developing a village financial management application through the Village Financial System (SISKEUDES). To date, the implementation rate of SISKEUDES has reached 33,17% or 24.863 out of 74.954 villages throughout Indonesia and it is expected that by 2019 all villages will be using the application.
In order to encourage the full implementation of SISKEUDES, BPKP coordinates with the Ministry of Home Affairs cq Directorate General of Village Government Development to facilitate the gradual implementation of the SISKEUDES application. In addition, BPKP also coordinates with the KPK to appeal to all village heads to implement the SISKEUDES application.
The dissemination of the application was carried out by BPKP in collaboration with several universities and the Indonesian Accountants Association (IAI). For regions that have implemented SISKEUDES, BPKP together with The World Bank has given awards as a form of appreciation.
Currently, there are tens of thousands of villages that have formed Village-Owned Enterprises/BUM Desa. In addition to SISKEUDES, BPKP together with the Ministry of Villages, Development of Disadvantaged Regions and Transmigration also developed the Village-Owned Enterprise Accounting Information System (SIA BUM Desa) application at the end of 2016.
SIA BUM Desa was developed to assist BUM Desa operational managers in managing accounting transactions, preparing financial reports, and BUM Desa performance reports. In the early stages of development, SIA BUM Desa has been implemented in 15 BUM Desa in Bali Province.
The features in both systems are made simple and user friendly to address the varying village conditions and facilitate their implementation. With a single input process according to existing transactions, SISKEUDES and SIA BUM Desa can produce output in the form of administrative documents and reports in accordance with statutory provisions.
In addition to the convenience, both are also equipped with an Internal Control System (Built-in Internal Control) and supported by Implementation Instructions and Application Manuals. BPKP encourages APIP to participate in the Regional Government Task Force in the implementation of SISKEUDES.
As a real effort to improve APIP capabilities, BPKP is synergizing with ministries/institutions and local governments to improve village financial supervision through the implementation of technical guidance and Focus Group Discussions (FGD) as well as joint monitoring of the distribution and use of village funds every quarter.
In addition, BPKP also collaborates with the Ministry of Home Affairs and the Corruption Eradication Committee in conducting workshops to improve the capabilities of APIP and Procurement Service Units and assisting the Ministry of Finance in identifying problems in the distribution and use of village funds.
Financial and village development monitoring is a task that must be carried out by all APIPs as well as possible. In the future, the amount of funds disbursed to villages will be even greater. APIPs as the guardians of the strategic policies of the President, Ministers and Regional Heads are required to provide strategic recommendations so that the implementation of this Village Law can run well.
Village supervision requires harmonious integration of all potentials in APIP and other stakeholders, because there are many aspects in the village that need to be monitored together. (Public Relations and HAL Division, Legal and Public Relations Bureau of BPKP and Government Communication Team of the Ministry of Communication and Information)
