The Audit Board of the Republic of Indonesia (BPK) April 2011

1.Background 2.Objectives 3.Indonesian KNI 4.BPK’s Experience in using KNI 5.Lessons Learned 2 5th KNIWG Meeting

 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 3 5th KNIWG Meeting

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

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

6 VISION MISSION AGENDA 5th KNIWG Meeting

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

 Core National Priorities: 11  National Indicators: 60  Components of National Indicators: National Priorities 60 National Indicators 409 Components of National Indicators 8 4th KNIWG Meeting, Helsinki, Findland, March 2011

BPK’s Performance Audit on A Basic Education Program 1.Education is the second national priority 2.National Indicator: Access to Basic Education  Promote better access to the qualified, affordable, relevance, and efficient basic education 3.Components of National Indicators Net Enrollment Ratio (NER) on elementary school NER on middle-school Gross Enrollment Ration (GER) on high-school 4.Audit Strategy 5.Audit Results 5th KNIWG Meeting, 9

 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. 5th KNIWG Meeting, 10 Indicator NER on Elementary school 95.5%95.3%95.7%95.8%96.0% NER on Middle school 74.0%74.7%75.4%75.7%76.0% GER on High school 73.0%76.0%79.0%82.0%85.0%

1.Distributing subsidies for school operational purposes 2.Providing text books/library 3.Renovating class-rooms 4.Expanding new class-room in existing school 5.Constructing one-roof building for elementary and middle school level 6.Providing special class services in elementary level 7.Improving other school facilities and infrastructure 8.Giving scholarship 5th KNIWG Meeting, 11

1.Background 2.Audit Objectives and Scopes 3.Audit Methodology 5th KNIWG Meeting, 12

1.Basic education has become public concerns 2.Education is the 2nd national priority. 3.20% of Indonesia’s budget was allocated in this sector. 4.KNI for education sector is clearly identified. 5.Audit policy: assessment of effectiveness of basic education program. 5th KNIWG Meeting, 13

1.Audit Objectives To asses the effectiveness of management in executing the program to support the basic education. 2.Audit scopes Reliability of Data management  in associated with the NER and GER Teacher/educators management Facilities and infrastructure management 5th KNIWG Meeting, 14

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 2.Field-work Stage Assessing data and information Obtaining evidence Identifying audit findings 3.Reporting Stage 5th KNIWG Meeting, 15

3.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 5th KNIWG Meeting, 16

1.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. 2.Teaching Management and Infrastructures for basic education program need to be improved 5th KNIWG Meeting, 17

1.KNI can be used as the basis in determining the criteria in conducting performance audits. 2.KNI helps SAIs in assessing achievement of government programs. 3.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 5th KNIWG Meeting, 18

The Audit Board of the Republic of Indonesia (BPK) Jl. Gatot Suborot 31 Jakarta Indonesia Website: Telephone: Ext Facsimile: th KNIWG Meeting,