INDONESIAN EXPERIENCE IN USING KNI: A PERFORMANCE AUDIT CASE ON BASIC EDUCATION

1. INDONESIAN EXPERIENCE IN USING KNI: A PERFORMANCE AUDIT CASE ON BASIC EDUCATION The Audit Board of the Republic of Indonesia (BPK) April 2011

2. Agenda • Background • Objectives • Indonesian KNI • BPK’s Experience in using KNI • Lessons Learned 5th KNIWG Meeting

3. Background (1) • Mandate of Indonesian SAI: auditing management and accountability of public funds • Government launched its a medium-term development plan (2010 – 2014), consisting of national indicators. • Use of KNI by auditing projects/programs within the development plan with their indicators 5th KNIWG Meeting

4. Objectives Sharing experience in using KNI through audits on a program or project. 5th KNIWG Meeting

5. Indonesian KNI • Derived from the Government Medium Term Development Plan: • Vision & Mission • Agenda • Priorities (“eleven priorities”) • National Indicators • Components of National Indicators 5th KNIWG Meeting.

6. GOVERNMENT MEDIUM-TERM PLAN VISION Welfare, Democratic, and Justice Indonesia MISSION • Continuing sustainable development into welfare Indonesia • Strenghtening democratic pillars • Strenghtening justice dimension in all areas AGENDA • Economic development and people welfare improvement • Good governance improvement • Democratic pillars establishment • Law enforcement and corruption prevention • Inclusive and justice development 5th KNIWG Meeting

7. NATIONAL PRIORITIES Buraucratic Reform & Governance 1 Education 2 Health 3 Poverty Aleviation 4 Basic Commodity Sustainability 5 11 National Priorities 2009-2014 Infrastructures 6 Investment & Business Climate 7 Energy 8 Environment & Disaster Management 9 Less Developed, Boarder, and Post Conflict Areas 10 Culture, Craetivity, and Technology Innovation 11 5th KNIWG Meeting

8. National indicators • Core National Priorities: 11 • National Indicators: 60 • Components of National Indicators: 409 11 National Priorities 60 National Indicators 409 Components of National Indicators 4th KNIWG Meeting, Helsinki, Findland, 13-14 March 2011

9. BPK’S experiencein using KNI A Case: Audit on education BPK’s Performance Audit on A Basic Education Program • Education is the second nationalpriority • National Indicator: Access to Basic Education  Promote better access to the qualified, affordable, relevance, and efficient basic education • Components of National Indicators • Net Enrollment Ratio (NER) on elementary school • NER on middle-school • Gross Enrollment Ration (GER) on high-school • Audit Strategy • Audit Results 5th KNIWG Meeting,

10. The definitions of components • GER. This index describes the total enrollment within a country in a specific level of education, regardless of age, expressed as a percentage of the population in the official age group corresponding to this level of education. • NER. This index describes the total enrollment of the official age-group for a given level of education expressed as a percentage of the corresponding population. A Case: Audit on education 5th KNIWG Meeting,

11. Govt’s Efforts • Distributing subsidies for school operational purposes • Providing text books/library • Renovating class-rooms • Expanding new class-room in existing school • Constructing one-roof building for elementary and middle school level • Providing special class services in elementary level • Improving other school facilities and infrastructure • Giving scholarship A Case: Audit on education 5th KNIWG Meeting,

12. Audit strategy • Background • Audit Objectives and Scopes • Audit Methodology A Case: Audit on education 5th KNIWG Meeting,

13. Audit Strategy: Background • Basic education has become public concerns • Education is the 2nd national priority. • 20% of Indonesia’s budget was allocated in this sector. • KNI for education sector is clearly identified. • Audit policy: assessment of effectiveness of basic education program . A Case: Audit on education 5th KNIWG Meeting,

14. Audit strategy: AUDIT objectives & scope • Audit Objectives To asses the effectiveness of management in executing the program to support the basic education. • Audit scopes • Reliability of Data management  in associated with the NER and GER • Teacher/educators management • Facilities and infrastructure management A Case: Audit on education 5th KNIWG Meeting,

15. Audit strategy: AUDIT METHODOLOGY #1 • Planning Stage • Understanding entities involved in basic education programs: Ministry of Education (central government) and education agencies in regional government • Identifying key areas: enrollment, teaching management, and infrastructures • Identifying criteria (indicators): NER and GER • Determining audit samples • Developing audit program • Field-work Stage • Assessing data and information • Obtaining evidence • Identifying audit findings • Reporting Stage A Case: Audit on education 5th KNIWG Meeting,

16. Audit strategy: AUDIT METHODOLOGY #2 • Reporting Stage • Developing a draft of audit report disclosing: • Fact/condition • Criteria • Impact/effects and Causes • Recommendation • Discussing the draft of audit report with heads of audit entitites • Finalizing the audit report, including audit entitites’ comments A Case: Audit on education 5th KNIWG Meeting,

17. AUDIT RESULTS • Basic Education programs was achieved: • Indicators of child enrollment (NER and GER) were achieved (above the target), although BPK found some unreliable data of NER & GER. • Passing grade on basic education has increased. • Child involvement on further education program has increased. • Teaching Management and Infrastructures for basic education program need to be improved A Case: Audit on education 5th KNIWG Meeting,

18. LESSONS LEARNED • KNI can be used as the basis in determining the criteria in conducting performance audits. • KNI helps SAIs in assessing achievement of government programs. • Involvement of SAIs on KNI can be in line with SAIs’ mandate by conduncting audit: • Disclosing fact findings against used criteria (KNI) • Proposing recommendations e.g improvement of KNI A Case: Audit on education 5th KNIWG Meeting,

19. THANK YOU The Audit Board of the Republic of Indonesia (BPK) Jl. Gatot Suborot 31 Jakarta Indonesia 10210 Website: www.bpk.go.id Telephone: +62-21-570-4395 Ext. 1181 Facsimile: +62-21-57953198 E-mail: hasan.b@bpk.go.id bahtiar.arif@bpk.go.id 5th KNIWG Meeting,