Presentation on theme: "DISASTER AUDIT TSUNAMI AND OTHER DISASTER CASES LESSON LEARNED."— Presentation transcript:
DISASTER AUDIT TSUNAMI AND OTHER DISASTER CASES LESSON LEARNED
AGENDA DISASTER MAGNITUDE PHASES OF RESPONSE THE ROLE OF BPK RI LESSON LEARNED … coordination and cooperation LESSON LEARNED … disaster management Audit Area DISASTER PRIORITY AND AUDIT DESIGN Q AND A
DISASTER MAGNITUDE TSUNAMY – The natural disasters of Earthquake and Tsunami in NAD and North Sumatera Province in December 2004 and March 2005, have caused huge damage and losses. 129,738 deaths 37,090 Missing 513,278 People Displaced An estimated total loss of US$4.45 billion Spread in 17 Cities/Districts in NAD Province and in 2 Districts on Nias Islands. Source : Audit Report on Performance of the 2005 Housing and Land Rehabilitation and Reconstruction Program at BRR and Concerned Working Units
Financial Assistance During The Emergency Phase NATIONAL COMPILATION FINANCIAL REPORT BY BAKORNAS PB as of April 30, 2006 (Source : BPK Audit Report) National Budget (total Actual Disbursements) Rp 1.747.397.151.216,00 Foreign Aid (1 US$ = Rp 9,570.00) Rp 1.044.996.150,00 Total Rp 1.748.442.147.366,00 Via Government Donation Centers (funds and Goods) 1. Domestic Aid : a. Funds Rp 584.504.370.050,66 b. Goods Rp 414.440.208.300,61 Total Domestic Aid Rp 998.944.578.351,27 2. Foreign Aid : a. Funds Rp 758.832.999.505,56 b. Goods Rp 4.705.708.590.847,00 Total Foreign Aid Rp 4.880.037.220.301,90 TOTAL Rp 7.627.423.946.019,17
FINANCIAL ASSISTANCE DURING THE REHABILITATION AND RECONSTRUCTION PHASE NoDonor CategoryUSD 1.Government of Indonesia 3.209.031.720 2.ADB 124.659.203 3.Multi Donor Trust Fund 121.652.076 4.KFW Germany 31.833.333 5.Foreign Government 1.069.696.423 6.Multilateral Organizations 436.701.561 7.NGOs 1.688.216.684 8.Companies and Communities 208.963.282 Total 6.890.754.282
Flow of Tsunami Related Aid in Indonesia Gov of Indonesia Foreign Gov Multilateral Organization NGOs CompaniesCommunities Donors Multi donor fund/Multilateral Org Compa nies NGOs Intermediate Agencies Recipients Relief, Rehabilitation and Reconstruction Activities in NAD and Nias Government of RI Central GOI Ministries Aceh Local Gov BRR NGOs Sumber : Indonesia : Indonesia Country INTOSAI Task Force 12 34657 89 10 11 12 13 14 15 1617 18 19 2122 23 26 20 24 25
PHASES OF RESPONSE The Emergency Phase – Between December 26, 2004 and April 30, 2005 – Established The Emergency Relief Agency. – Focus on saving lives and providing services to evacuees, removing corpses, clearing debris and rebuilding basic infrastructure. Rehabilitation and Reconstruction Phase – From May 1, 2005 to June 30, 2009 – The Government issued a master plan for rehabilitation and reconstruction in 2004 and established BRR (the rehabilitation and reconstruction Agency for Nanggroe Aceh Darussalam and Nias) to coordinate actvities during period.
THE ROLE OF BPK RI Audit on the Accountability of funds management during the relief phases. Audit on national budget expenditures during the relief phase. A series of performance audit on infrastructure, health and other programs. Audit of the financial statements of BRR for the fiscal years of 2005, 2006, and 2007.
LESSON LEARNED … coordination and cooperation Audit Gap – Not all audit institution has the same mandate, not all the audit results are published and not all organizations use the same criteria. – Need to share audit information among audit institutions and third parties. – An Agreement among SAIs and third parties needs to be formalized for all funding. Lack of standardized financial and performance accountability information. Lack of coordination among Audit Institutions – Duplication of audit activities and increase administrative burden on aid organizations and recipient country (institutions).
LESSON LEARNED … Disaster Management Audit Area In planning the audit on disaster management : Early walkthrough into the affected area by the auditors will improve the audit approach. Holistic Approach : should include the policy prepared by the government in disaster management with the integration with the national development policies. In country that is prone to disasters, the whole cycle of disaster should be subjected to audit (post and prior disaster phase). The governments constitutional obligation is to protect the lives of the people and state assets.
Conclusion : DISASTER PRIORITY AND AUDIT DESIGN EMERGENCY RELIEF REHABILITATION RECONSTRUCTION Large quantities of Materials to be delivered to the affected area, finding missing and identification and burial of those who didnt survive. Focus on treating the sick, injured and preventing the outbreak of diseases. The provision of health care supplies, health care, provision of safe drinking water, cooking oil etc, establishment of temporary sanitation facilities and re- establishment of reliable access and communication between the affected areas and the chain of supply and support. Focus on rebuilding the physical infrastructure- roads, bridges, water, sewage and sanitation system, housing, school, clinics and hospitals and re-establishing human capacity of doctors, nurses, teachers, administrators. Delay Risk Unintended receiver. Undistributed fund/material Embezzlement Fraud Delay Risk Unintended Receiver Undistributed fund and material Embezzlement Fraud -Un intended receiver Embezzlement Fraud In economy and efficiency risk Policy Matters (disaster mitigation program, public policies related to disaster and infrastructure built-in disaster management of the country) Early Walk Through into Affected Area by Auditors Internal Control System (emergency and normal) Audit Approach and Strategy Regular Basis (ensuring continuous improvement of disaster management as a whole) ComplianceCompliance PerformancePerformance FinancialFinancial