Training and EducationCentre

6.3.3 Training and EducationCentre

In 2002, the former Chairman of BPK argued that BPK should improve its auditor‘s training and education in accounting and auditing to improve their professional qualifications in financial auditing as mandated by Constitution (Auditor Magazine 2002:12-15). BPK tried to improve the quality of auditors not only in financial and compliance audits, but also in performance, environment and other specific purpose audits. The Centre of Education and Training runs programs and trainings both locally and internationally for BPK auditors, technical staff, managers and prospective managers. Members of the International Organization of Supreme Audit Institutions (INTOSAI) support the education and training that is carried out abroad.

Currently, BPK has a centre for training and education in Kalibata (Jakarta) and three other education and training units. One is in Medan, North Sumatera (for auditors from the western part of Indonesia), Yogyakarta, Central Java (for auditors from the central region), and in Makassar, South Sulawesi (for auditors from the eastern part of Indonesia) (BPK RI 2007a). The regional training units hold courses to improve the quality and capacity of auditors at representative offices. For instance, the representative office of BPK in Medan held an in- service training course on the ‗Regional Financial Accounting System‘

on 16 92 23 March 2007 . The opening of three BPK education and training units in different parts of Indonesia was a strategic effort to facilitate auditors be more intensive in

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participating in education and training programs by placing the programs closer to their domicile.

92 http://medan.bpk.go.id/ , accessed on 07/05/2007.

Table 6.6(below) shows the education programs for auditors and managers delivered by the training centres from 2004 to 2006. The data indicates the extensive expansion of education and training delivered by these centres in line with the increasing number of auditors as well as levels of manager as a result of opening new offices. Moreover, BPK also increased the numberof personnel pursuing formal education through post-graduate degrees and overseas short courses (non-degrees).

Table 6-6 Number of Participants in BPK Training and Education (2004-06) Education/Training

Training of Managers 26 47 60 Training of Auditors

1472 Training of Technical Staff

1642 Overseas Short Courses (Non-Degree)

28 49 10 Formal Education for Post-Graduate Degrees

28 6 36 Source: BPK RI, BPK RI Dalam Angka (BPK Statistics) 2006, pp. 46 and 49 (BPK RI 2007b)

BPK has cooperated with Members of INTOSAI and ASOSAI to conduct a number of education and training programs on formulating policy, exchanging information, and experience cooperation. For example, auditors were sent, accompanied by supervisors from the UN, to audit in countries involved in conflict, such as Congo, Ethiopia, and Eritrea to gain new knowledge and experience through international practice. Other instances include an international auditor fellowship cooperation program held in the United States and a secondment programs undertaken with the Audit New Zealand Office (ANZO) for planning

reporting and developing audit strategies 93 .Also, BPK and the Australian National Audit Office (ANAO), through the Australia Indonesia Partnership for Reconstruction and Development-Government Partnership Fund (AIPRD-GPF), engaged in a partnership framework concerning knowledge and information related to financial and performance

93 BPK has sent approximately 30 auditors on this program according to a former participant who was spoken 93 BPK has sent approximately 30 auditors on this program according to a former participant who was spoken

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July 2007 to July 2009, six BPK auditors joined the ANAO secondment program on performance and financial audits (INTOSAI 2007b: 5).

BPK also cooperated with USAID through the Financial Crime Prevention Project (FCPP) to develop an ‗investigative special unit‘ from 2006 to 2008, and the Swedish National Audit Office (SNAO) to help facilitating tutoring and monitoringfor auditing the

Central Bank of Indonesia since 2007. BPK cooperated with ASEAN countries, particularly Thailand, Malaysia and Brunei Darussalam, for environmental auditing, including for cases on forest fires, avian flu, and shipping safety in the Malaka Straits. BPK cooperated with countries affected by tsunamis (such as Sri Lanka, the Maldives, India, Bangladesh, Thailand, Malaysia) and donors (from the US, Netherlands, France, Germany, Japan the UN, the World Bank, and the International Red Cross) audited for the accountability in managing funds, and institutions (BPK January 2007: 20). Moreover the World Bank provides donations to BPK to carry out a Strengthening Investigative Audit Capacity (SIAC).

BPK formed on Advisory Audit Board (AAB) with 10 SAIs from donor states (America, Australia, the Netherlands, Denmark, England, Japan, Norway, France, Sweden and the European Community) to assist BPK in auditing management and accountability of funds in emergency, rehabilitation and reconstruction of Nanggroe Aceh Darussalam and Nias. Regarding cooperation in auditing tsunami funding, BPK held an International

Conference with the theme ‗Promoting Financial Accountability in Managing Funds Related to Tsunami Conflict and Other Disasters‘, in Jakarta, from25-27 April 2005. The

participants agreed to emphasise the importance of ensuring that management of aid funds participants agreed to emphasise the importance of ensuring that management of aid funds

appreciation and trust in BPK‘s ability to handle the management and accountability of disaster funds. In 2006, BPK conducted audits of the management and channeling of relief funds to the rehabilitation and reconstruction phase (R2) and held ‗The 1st Meeting of The Advisory Board on Tsu nami to Audit‘ from 24-25 April 2006.

However, this study found criticisms from auditors on the lack of opportunity for BPK auditors to proceed to further education and to participate in training (15/3/2007). Auditees from public works department (20/08/2009) and regional government (21/3/2007) argued that the educational background of BPK auditors is limited to financial or accounting and that they lack knowledge beyond that, such as knowledge of engineering or public administration. These statements indicate that the growing number of auditees and the expanding scope of auditing from financial to performance mean those auditorsneed to improve their knowledge not only in accounting and finance, but also in a variety of educational backgrounds. This will enable auditors to better perform in auditing the different roles and functions of agencies in the public sector.

However, this study found complaints from auditors about the quality of the training centre, as follows:

 “Prior to audit, auditors have to attend in-house training, however, we found

unqualified instructors ” (Interview B19, an auditor of AKN II).  “BPK trainings were unqualified” (Interview B22, an auditor of AKN IV).  “Training materials that were given not applicable for the audit works” (Interview

B11, an auditor of AKN III). These comments indicate dissatisfaction by auditors about the quality of the content,

materials and trainers provided at the BPK centre of education and training. Ineffectiveness materials and trainers provided at the BPK centre of education and training. Ineffectiveness