GOVERNMENT INTERNAL AUDITOR ASSOCIATION (AAIPI) Independent Auditor’s Report On Budget Realization Statements Internal Auditor Improvement Project Period January 1, 2018 – April 30, 2019 Content Page Management Representation Letter Independent Auditor's Report i Activity Statements ............................................. ....................................................................................... 1 Budget Realization Statements ................................................... ......................................................... 2 Notes to Financial Statements .................................................................. ......................................... 3-16 Attachment - Grant Reconciliation Report On Special Accounts FINANCIAL STATEMENTS GOVERNMENT INTERNAL AUDITOR ASSOCIATION (AAIPI) Internal Auditor Improvement Project ACTIVITY STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) Notes FUND RECEIPTS Grant Receipts for the years 2018 dan 2019 2c, 3 6.074.221.500 Balance budget for the previous period 1.968.986.530 Total 8.043.208.030 DISBURSEMENT Training and Workshops Disbursement: Goverment Internal Audit Workshop 2018 2c, 5 1.257.216.500 Goverment Internal Audit Workshop 2019 2c, 5 1.955.740.060 Consultant Services Disbursement: Consultant Services Disbursement 2018 2c, 5 3.427.683.617 Consultant Services Disbursement 2019 2c, 5 1.297.785.225 Total Disbursement 7.938.425.402 Surplus/(Deficit) before Others Receipt (Disbursement) 104.782.628 OTHERS RECEIPT (DISBURSEMENT) Bank Interest 2018 2c, 4 2.728.456,39 Bank Interest 2019 2c, 4 874.237,92 Bank Administration 2018 2c, 6 (1.733.780,00) Bank Administration 2019 2c, 6 (4.091.925,00) Tax of Bank Interest 2018 2c, 6 (544.890,36) Tax of Bank Interest 2019 2c, 6 (174.593,52) Total Others Receipt (disbursement) (2.942.495) Surplus/(Deficit) after Others Receipt (Disbursement) 101.840.134 The accompanying notes to the financial statements as an integral part of these financial statements GOVERNMENT INTERNAL AUDITOR ASSOCIATION (AAIPI) Internal Auditor Improvement Project BUDGET REALIZATION STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) Expenditure Budget Balance Code Project Name Contract Number Realization (IDR) (IDR) (IDR) % A Training and Workshops A.1 Goverment Internal Audit Workshop 2018 1.257.216.500 1.257.216.500 - 0,00% Government Internal Control System (SPIP) PRJ-006/AAIPI/DirEks/2018 Tgl. A.1.1 271.290.250 271.290.250 - 0,00% Workshop 6 Des 2018 Government Internal Control System (SPIP) PRJ-006/AAIPI/DirEks/2018 Tgl. A.1.2 506.327.250 506.327.250 - 0,00% Workshop 6 Des 2018 Training of Trainers of Internal Audit Capability PRJ-007/AAIPI/DirEks/2018 Tgl. A.1.3 211.395.000 211.395.000 - 0,00% Model (IA-CM) Assessor 14 Des 2018 Training of Trainers of Internal Audit Capability PRJ-007/AAIPI/DirEks/2018 Tgl. A.1.4 268.204.000 268.204.000 - 0,00% Model (IA-CM) Assessor 14 Des 2018 A.2 Goverment Internal Audit Workshop 2019 1.955.740.060 1.955.740.060 - 0,00% Training of trainers of Quality Assurance PRJ-01/AAIPI/DIReks/2019. Tgl. A.2.1 381.981.600 381.981.600 - 0,00% Improvement Program (QAIP) 4 January 2019 Training of trainers of Quality Assurance PRJ-01/AAIPI/DIReks/2019. Tgl. A.2.2 207.167.100 207.167.100 - 0,00% Improvement Program (QAIP) 4 January 2019 Accomodation and full-board meeting packages SPK-01/AAIPI/DIREKS/2019 Tgl. A.2.3 work for the Government Internal Control 136.000.000 136.000.000 - 0,00% 11 Januari 2019 System (SPIP) Workshop Accomodation and full-board meeting packages SPK-02/AAIPI/DIREKS/2019 Tgl. A.2.4 work for Training of Trainers of Internal Audit 145.000.000 145.000.000 - 0,00% 11 Januari 2019 Capability Model (IA-CM) Assessor Accomodation and full-board meeting packages SPK-02/AAIPI/DIREKS/2019 Tgl. A.2.5 work for Training of Trainers of Internal Audit 423.400.000 423.400.000 - 0,00% 11 Januari 2019 Capability Model (IA-CM) Assessor Accomodation and full-board meeting packages SPK-03/AAIPI/DIREKS/2019 Tgl. A.2.6 work for Training of trainers of Quality 109.550.000 109.550.000 - 0,00% 15 Januari 2019 Assurance Improvement Program (QAIP) Accomodation and full-board meeting packages SPK-03/AAIPI/DIREKS/2019 Tgl. A.2.7 work for Training of trainers of Quality 325.450.000 325.450.000 - 0,00% 15 Januari 2019 Assurance Improvement Program (QAIP) A.2.8 Costs of supporting IA-CM assessors - 26.395.000 26.395.000 - 0,00% A.2.9 Costs of supporting IA-CM assessors - 3.000.000 3.000.000 - 0,00% A.2.10 Costs of supporting IA-CM assessors - 11.000.000 11.000.000 - 0,00% A.2.11 Costs of supporting IA-CM assessors INVOICE 51527028&51643947 26.883.360 26.883.360 - 0,00% A.2.12 Costs of supporting IA-CM assessors - 1.800.000 1.800.000 - 0,00% Translator services for activities Government SPK-04/AAIPI/DIREKS/2019 Tgl. A.2.13 22.200.000 22.200.000 - 0,00% Internal Control System (SPIP) Workshop 15 Januari 2019 Translator services for activities Training of SPK-05/AAIPI/DIREKS/2019 Tgl. A.2.14 Trainers of Internal Audit Capability Model (IA- 75.000.000 75.000.000 - 0,00% 15 Januari 2019 CM) Assessor Translator services for activities Training of SPK-06/AAIPI/DIREKS/2019 Tgl. A.2.15 60.000.000 60.000.000 - 0,00% Quality Assurance Improvement Program (QAIP) 15 Januari 2019 A.2.16 Costs of supporting IA-CM assessors - 913.000 913.000 - 0,00% Total Training and Workshops 3.212.956.560 3.212.956.560 - 0,00% 2 GOVERNMENT INTERNAL AUDITOR ASSOCIATION (AAIPI) Internal Auditor Improvement Project BUDGET REALIZATION STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) Expenditure Budget Balance Code Project Name Contract Number Realization (IDR) (IDR) (IDR) % B CONSULTAN SERVICES B.1 CONSULTAN SERVICES PERIOD 2018 3.427.683.617 3.427.683.617 - 0,00% PRJ-001/AAIPI/DirEks/2018 Tgl. B.1.1 Comprehensive External Audit 65.340.000 65.340.000 - 0,00% 8 Juni 2018 Consultancy Services for Visioning and Internal PRJ-001/AAIPI/DirEks/2017 Tgl. B.1.2 272.320.000 272.320.000 - 0,00% Audit Project 8 Sept 2017 Consultancy Services for Visioning and Internal PRJ-001/AAIPI/DirEks/2017 Tgl. B.1.3 150.795.318 150.795.318 - 0,00% Audit Project 8 Sept 2017 PRJ-002/AAIPI/DirEks/2017 Tgl. B.1.4 Enterprise Learning Management System 654.555.000 654.555.000 - 0,00% 13 Okt 2017 PRJ-002/AAIPI/DirEks/2017 Tgl. B.1.5 Enterprise Learning Management System 261.822.000 261.822.000 - 0,00% 13 Okt 2017 Indepent Assesment of BPKP's Progress in PRJ-002/AAIPI/DirEks/2018 Tgl. B.1.6 Achieving a Fully Sustainable IA-CM Level 3 - 228.555.000 228.555.000 - 0,00% 6 Agustus 2018 Integrated Indepent Assesment of BPKP's Progress in PRJ-002/AAIPI/DirEks/2018 Tgl. B.1.7 Achieving a Fully Sustainable IA-CM Level 3 - 275.120.000 275.120.000 - 0,00% 6 Agustus 2018 Integrated Technical Assistance on Audit Universe and PRJ-003/AAIPI/DirEks/2017 Tgl. B.1.8 270.822.750 270.822.750 - 0,00% Risk Based Audit Planning 3 Nov 2017 Technical Assistance on Audit Universe and PRJ-003/AAIPI/DirEks/2017 Tgl. B.1.9 270.822.750 270.822.750 - 0,00% Risk Based Audit Planning 3 Nov 2017 Technical Assistance on Audit Universe and PRJ-003/AAIPI/DirEks/2017 Tgl. B.1.10 310.842.774 310.842.774 - 0,00% Risk Based Audit Planning 3 Nov 2017 Implementation Support on Government Internal Control System (SPIP) and Internal Auditors PRJ-003/AAIPI/DirEks/2018 Tgl. B.1.11 347.974.000 347.974.000 - 0,00% Capability base on IA-CM model at ministry and 1 Oktober 2018 local government level Technical Assistance on Development PRJ-004/AAIPI/DirEks/2018 Tgl. B.1.12 94.774.900 94.774.900 - 0,00% Performance Audit Guidelines 12 Oktober 2018 Translator Service on the activities of the Independent Assessment of BPKP'S Progress in SPK-02/AAIPI/DIREKS/2018 Tgl. B.1.13 13.500.000 13.500.000 - 0,00% Achieving a Fully Sustainable IA-CM Level 3 3 Desember 2018 Integrated Translator Service on the activities of the Independent Assessment of BPKP'S Progress in SPK-01/AAIPI/DIREKS/2018 Tgl. B.1.14 6.000.000 6.000.000 - 0,00% Achieving a Fully Sustainable IA-CM Level 3 3 Desember 2018 Integrated Consultancy Service for Development of AAIPI PRJ-005/AAIPI/DirEks/2018 Tgl. B.1.15 204.439.125 204.439.125 - 0,00% Website and Membership Database 26 October 2018 B.2 CONSULTAN SERVICES PERIOD 2019 1.402.567.853 1.297.785.225 104.782.628 7,47% Implementation Support on Government Internal Control System (SPIP) and Internal Auditors PRJ-003/AAIPI/DirEks/2018 Tgl. B.2.1 260.980.500 260.980.500 - 0,00% Capability base on IA-CM model at ministry and 1 October 2018 local government level Implementation Support on Government Internal Control System (SPIP) and Internal Auditors PRJ-003/AAIPI/DirEks/2018 Tgl. B.2.2 180.680.500 180.680.500 - 0,00% Capability base on IA-CM model at ministry and 1 October 2018 local government level 3 GOVERNMENT INTERNAL AUDITOR ASSOCIATION (AAIPI) Internal Auditor Improvement Project BUDGET REALIZATION STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) Expenditure Budget Balance Code Project Name Contract Number Realization (IDR) (IDR) (IDR) % Implementation Support on Government Internal Control System (SPIP) and Internal Auditors PRJ-003/AAIPI/DirEks/2018 Tgl. B.2.3 104.782.628 - 104.782.628 100,00% Capability base on IA-CM model at ministry and 1 October 2018 local government level Technical Assistance on Development PRJ-04/AAIPI/DirEks/2018 Tgl. B.2.4 379.099.600 379.099.600 - 0,00% Performance Audit Guidelines 12 October 2018 Development of AAIPI Website and Membership PRJ-005/AAIPI/DirEks/2018 Tgl. B.2.5 340.731.875 340.731.875 - 0,00% Database 26 October 2018 Development of AAIPI Website and Membership PRJ-005/AAIPI/DirEks/2018 Tgl. B.2.6 136.292.750 136.292.750 - 0,00% Database 26 October 2018 Total Consultant Services 4.830.251.470 4.725.468.842 104.782.628 2,17% TOTAL 8.043.208.030 7.938.425.402 104.782.628 1,30% 4 NOTES TO FINANCIAL STATEMENTS GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 1. Activities and General Information a. General information The Indonesian Government Internal Auditors Association (AAIPI) was established on 30 November 2012 as a professional organization that embraces the Central and Regional Government's Internal Control Apparatus (APIP). This is in line with the mandate of Government Regulation Number 60 Year 2008 regarding Government Internal Control System, and in the framework of efforts to encourage quality improvement of government internal control results. The Association of Indonesian Government Internal Auditors (AAIPI) was established under Notarial Deed. 2 dated August 12, 2013 made by Sunjoto, SH, Notary in Jakarta. This Notarial Deed has been approved by the Ministry of Justice and Human Rights of the Republic of Indonesia with approval number AHU-0068758.AH.01.07.TAHUN 2016. In accordance with Project Public Financial Management and Revenue Administration in Indonesia (PFM MDTF) - Grant No. TF0A3211, then on September 22, 2016, the Indonesian Government Auditor Association (AAIPI) entered into an agreement with the International Bank for Reconstruction and Development (World Bank) in the implementation of the Strengthening Internal Audit Project (Strengthening Internal Audit Project), under the agreement no. CD-197/WB/IC/2016 on grant funding to AAIPI amounting to USD 655,350, amended by agreement No. No. CD-057/WB/PFM-MDTF/IV/2018 dated April 26, 2016 regarding the extension of the term of the grant agreement until March 27, 2019 with the addition of a grant of funds to AAIPI of USD 344,650. The main objective of grant recipient of the TF0A3211 grant Trust Fund is to contribute to the Government's efforts to improve the capacity of internal audit institutions in Indonesia to achieve the target level 3 Internal Audit Capability Model (IA-CM) requirement. The Indonesian Government Auditor Association (AAIPI) is active in responding to the request of President Joko Widodo to create an internaonal audit practice in world-class Indonesia by 2019. The Financial and Development Supervisory Board (BPKP) as the President's auditor has further issued a grand design for improve APIP capability. This grand design includes the following: (i) preparing policies to strengthen APIP, (ii) activities to increase awareness among government officials, (iii) a self-assessment tool in line with IA-CM, (iv) mechanisms for quality assurance, (v) guidelines for improving the capabilities of APIP independently, and (vi) facilities e-Learning. The Government through BPKP has requested technical assistance from the World Bank to achieve the above targets and appoint AAIPI as grant recipient and as the implementing entity. 5 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 1. Activities and General Information (Continued) a. General information (Continued) Financial Statements Strengthening Internal Audit Project Public Financial Management and Revenue Administration in Indonesia Multi Donor Trust Fund (PFM MDTF) - Grant No. TF0A3211 includes information: (i) Annual Project Sources and Uses of Funds (by project category and component); (ii) Cumulative Project Sources and Uses of Funds; (iii) Deposits and replenishments received from the Bank; (iv) Withdrawals from the bank account; (v) Reconciliation report between the project expenditures made from the special account and the withdrawals from the special account, and (vi) The remaining balances of the Special Account at the end of the fiscal year. Financing activities of the Strengthening Internal Audit Project (P159448) - PFM MDTF is Grant TF0A3211, with the Association of Indonesian Government Internal Auditors (AAIPI) as Executing Agency. The implementation of the Trust Fund in its daily life is handled by the AAIPI Secretariat headed by the Executive Director who is held ex-officio by the Head of the Functional Auditor's Development Center (Pusbin JFA) Badan Pengawasan Keuangan dan Pembangunan (BPKP). The specifications of the PFM MDTF Foreign Grants resources are as follows: - Number PHLN : TF0A3211 - Date NPHLN : 23 September 2016 - Effective date NPHLN : September 23, 2016 - Closing Date : March 27, 2019 - Total HLN : US $ 1.000.000 - Foreign Currency Account Number: 1148-02-000001-30-8 (USD) - Rupiah Account Number: 1148-01-000144-30-4 (IDR) The Strengthening Internal Audit Project Report PFM MDTF-Grant TF0A3211 is structured as a form of accountability from the AAIPI National Executive Board (DPN) on the organization's financial management. The financial realization for period January 1, 2018 – April 30, 2019 is Rp 7,938,425,402, Rp 4,684,900,117 each for 2018 and Rp 3,253,525,285 for 2019 from the budget of Rp 8,043,208,030, which is the 2017 budget of Rp 2,191,980,592, the budget in 2018 amounting Rp 3,895,487,378 and the budget in 2019 amounting to Rp 1,955,740,060 with the achievement of absorption performance of 98,70%. Cumulative uptake of grant TF0A3211 up to April 30, 2019 amounted to Rp 13,263,564,602. Activities that have been and are being implemented in this period are: 1) Strategic plan of AAIPI, 2) Internal audit online learning module, 3) Audit universe and risk based audit planning workshop, 4) RETF annual audit, 6 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 1. Activities and General Information (Continued) a. General information (Continued) 1) Independent validation of BPKP IA-CM self-assesment, 2) Implementation support on government internal control system (SPIP) and internal auditors capability base on IA_CM at ministry and local government level, 3) Development of performance audit guidelines, 4) Development of AAIPI website and development AAIPI membership database, 5) Government Internal Control System (SPIP) Workshop, 6) Training of trainers of internal audit capability model (IA-CM) assessor, and 7) Training of trainers of quality assurance improvement program (QAIP). b. Board of Management Based on Decision Number KEP-010/AAIPI/DPN/2019 dated February 27, 2019 the composition of the National Executive Board (DPN) Association of Indonesian Government Internal Auditors (AAIPI) for period 2018 until 2019 are as follows: National Board of Directors Chairman : Inspector General of the Ministry of Finance Vice Chairman I : Chief Inspector of the Ministry of National Development Planning/Ministry of National Development Planning Vice Chairman II : Inspector General of the Ministry of Home Affairs Executive Director : Head of Development Center JFA BPKP Deputy Director : Inspector II Inspectorate General of the Ministry of Home Eksekutif Affairs Committee of the Code of Conduct Chairman : Deputy Head of BPKP in the Field of PIP for Politics, Law, Security and Human Development and Culture Vice Chairman I : Deputy of BKN Personnel Management Development Division Vice Chairman II : Inspector of Jombang Regency Audit Standards Committee Chairman : Inspector General of the State Minister of Public Works and Public Housing Vice Chairman I : Inspector General of the Ministry of Agrarian and Spatial Planning/National Land Agency Vice Chairman II : Inspector of Palembang City 7 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 1. Activities and General Information (Continued) c. Board of Management Peer Review Committee Chairman : Inspector General of the Ministry of Health Vice Chairman I : Inspector of DKI Jakarta Province Vice Chairman II : Main Inspector of the Central Statistics Agency Professional Development Committee Chairman : Inspector General of the Ministry of Transportation Vice Chairman I : Deputy of Bureaucratic Reform Program, Apparatus Accountability and Supervision of the Ministry of PAN-RB Vice Chairman II : Inspector General of the Ministry of Foreign Affairs ;; d. Organization Goals The Strengthening Internal Audit Project aims to contribute to the government's efforts to improve the capability of the government internal audit institutions in Indonesia in order to achieve the target level 3 of the Internal Audit Capability Model (IA-CM). e. Activity Implementation The Activity Strengthening Internal Audit Project for the year 2018 and 2019 contains three components with supporting activities in achieving the following project objectives: Component 1. Internal Audit Capacity Enhancement The purpose of this component is to improve the internal audit capacity in Indonesian with the following activities: (i) Performance audit guidelines (ii) Distance learning modules (iii) Training for trainers program fo IA-CM assessors certification (iv) Training for trainers program for quality assurance improvement program (QAIP) (v) Capacity building to implement audit universe and risk based planning (vi) Implementation support on COSO and IA-CM at local government level (vii) Internal control workshop (viii) Independent validation of BPKP IA-CM self-assesment and QAIP (ix) Stakeholder learning workshop 8 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 1. Activities and General Information (Continued) e. Activity Implementation (Continued) Component 2. Piloting Use Of Technology In Conducting Internal Audit Component 3. Institutional Support And Project Management (i) Facilitating the development of AAIPI strategic plan (ii) Institutional support to AAIPI (iii) Development AAIPI membership database f. Activity Location The Strengthening Internal Audit Project PFM MDTF grant TF0A3211 is implemented by the Indonesian Government Auditor Association (AAIPI). 2. Accounting Policies a. Basis of Presentation of Financial Statements The financial statements have been prepared in accordance with the agreement between the Indonesian Government Internal Auditors Association (AAIPI) and the International Bank for Reconstruction and Development (World Bank) CD-198/WB/IC/2016 dated September 22, 2016, on the World Bank Disbursement Guidelines for Project, amended by agreement No. No. CD-057/WB/PFM-MDTF/IV/2018 dated April 26, 2016. The financial statements are presented on a modified basis of cash accounting and present all revenues and expenditures. Under the terms of the agreement, AAIPI agrees to maintain separate and accurate financial records in accordance with generally accepted accounting principles and procedures so that payments are received and expenditures made under the Project Agreement can be easily identified. b. Currency In Reporting The Company's financial statements are presented in Rupiah (IDR) which is the functional currency, unless otherwise stated. c. Revenue and Expense Recognition Grant receipts from GOI/APBN are recorded based on receipt of funds received in AAIPI rupiah account, while their expenses are recorded in accordance with the payment receipts grouped by their categories/components. Overseas Grant receipts are realized through Special Account financing procedures and recorded in a manner: 9 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 2. Accounting Policies (Continued) c. Revenue and Expense Recognition (Continued) - Financing receipts from special accounts are recorded based on receipt of funds received on AAPI foreign exchange accounts. - Based on the planned expenditure of funds, foreign currencies held in AAIPI foreign exchange accounts are transferred to AAIPI rupiah account. Conversion of foreign currency at the exchange rate upon transfer of funds from AAIPI foreign exchange account to AAIPI rupiah account. - Expenses are recorded in accordance with the payment receipts grouped by category/component. d. Surplus/Deficit There is a surplus when total revenue exceeds total spending. The cash balance from the surplus is returned to the International Bank for Reconstruction and Development (World Bank) after the project ends. 3. Acceptance This account consists of: Rupiah (IDR) Fund Receipts In 2018 3.822.888.000,00 Fund Receipts In 2019 2.251.333.500,00 Total 6.074.221.500,00 Financing activities of the Strengthening Internal Audit Project (P159448) - PFM MDTF is Grant TF0A3211, with the Association of Indonesian Government Internal Auditors (AAIPI) as Executing Agency. Actual receipts of funds in 2018 and 2019 consist of several receipts as: USD ($) Rupiah (IDR) Fund Receipts In 2018: 1st Reception 23,500.00 341.713.500,00 2nd Reception 100,000.00 1.486.500.000,00 1rd Reception 136,500.00 1.994.674.500,00 Total Year 2018 260,000.00 3.822.888.000,00 10 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 3. Acceptance (Continued) USD ($) Rupiah (IDR) Fund Receipts In 2019: 1st Reception 160,500.00 2.251.333.500,00 Total Year 2019 160,500.00 2.251.333.500,00 Total Reception 420,500.00 6.074.221.500,00 Financing activities of the Strengthening Internal Audit Project (P159448) - PFM MDTF is Grant TF0A3211, with the Association of Indonesian Government Internal Auditors (AAIPI) as Executing Agency. The implementation of the Trust Fund in its daily life is handled by the AAIPI Secretariat headed by the Executive Director who is held ex-officio by the Head of the Functional Auditor's Development Center (Pusbin JFA) Badan Pengawasan Keuangan dan Pembangunan (BPKP). The specifications of the PFM MDTF Foreign Grants resources are as follows: - Number PHLN : TF0A3211 - Date NPHLN : 23 September 2016 - Effective date NPHLN : 23 September 2016 - Closing Date : March 27, 2019 - Total HLN : US $ 1.000.000 - Foreign Currency Account Number: 1148-02-000001-30-8 (USD) - Rupiah Account Number: 1148-01-000144-30-4 (IDR) 4. Other Receipts This account consists of: Rupiah (IDR) Interest Receivables from Current Account 3.602.694,31 Total 3.602.694,31 11 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 5. Budget Realization This account consists of: Rupiah (IDR) Consultant Services: Strategic Plan of AAIPI 423.115.318,00 Internal Audit Online Learning Module 916.377.000,00 Audit universe and risk based audit planning workshop 852.488.274,00 RETF annual audit 65.340.000,00 Independent validation of BPKP IA-CM Self-Assesment 523.175.000,00 Implementation Support on Government Internal Control System 789.635.000,00 (SPIP) and Internal Auditors Capability baseon IA-CM at Ministry and Local Government Level Development of Performance Audit Guidelines 473.874.500,00 Development of AAIPI Website and Development AAIPI 681.463.750,00 Memebership Database Total Consultant Services 4.725.468.842,00 Training and Workshops: Government Internal Control System (SPIP) Workshop 636.657.350,00 Training of Trainers of Internal Audit Capability Model (IA-CM) 1.192.990.360,00 Assessor Training of Trainers of Quality Assurance Improvement Program 1.383.308.850,00 (QAIP) Jumlah Training and Workshops 3.212.956.560,00 Total Realisasi Anggaran 7.938.425.402,00 The Strengthening Internal Audit Project Report PFM MDTF-Grant TF0A3211 is structured as a form of accountability from the AAIPI National Executive Board (DPN) on the organization's financial management. The financial realization for period January 1, 2018 – April 30, 2019 is Rp 7,938,425,402, Rp 4,684,900,117 each for 2018 and Rp 3,253,525,285 for 2019 from the budget of Rp 8,043,208,030, which is the 2017 budget of Rp 2,191,980,592, the budget in 2018 amounting Rp 3,895,487,378 and the budget in 2019 amounting to Rp 1,955,740,060 with the achievement of absorption performance of 98,70%. Cumulative uptake of grant TF0A3211 up to April 30, 2019 amounted to Rp 13,263,564,602. 12 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 5. Budget Realization (Continued) A. Explanation of Project Consultant Services 1) Project Strategic Plan of AAIPI The Consultancy Services Project for Visioning and Strategic Planning is a Consultancy project to determine the Vision and Strategic Planning, which the Consultant must produce: - AAIPI Strategic Planning. - AAIPI Strategic Action Plan. - Activities to be undertaken for each committee. - Terms of Reference (ToR) for AAIPI Institutional Support. - Implementation review tool. The Consultancy Services Project for Visioning and Strategic Planning is implemented under Contract Agreement Number: PRJ-001/AAIPI/Direksi/2017 dated September 8, 2017 with the executing consultant of PT. Synergy of Pakarya Sejahtera; with a contract value of Rp 680,800,000. 2) Project Internal Audit Online Learning Module The Development of Internal Audit Online Learning Modules project is a development project of a company's learning management system, which the Consultant must produce: - Need of ELMS software document. - ELMS software design document. - Document material for content development. - Document storyboard (mockup) as many as 4 modules. - Final SCORM of 4 modules. - UAT document. - AAIPI Modules Data (Uploaded ELMS). - Technical workshop for AAIPI. - Design Workshop E-Learning for SME and designer. The Development of Internal Audit Online Learning Modules project is implemented under Contract Agreement Number: PRJ-002/AAIPI/Direksi/2017 dated October 13, 2017 with the executing consultant of PT. Lutan Edukasi; with a contract value of Rp 1,309,110,000. 3) Project RETF annual audit The proposed activity is to express the independent opinions of professionals on financial statements, to assess compliance with the law, to disclose management statements, to allow auditors to verify financial management information. The expected results for this activity are: 13 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 5. Budget Realization (Continued) A. Explanation of Project Consultant Services (Continued) 3) Project RETF annual audit (Continued) 1. Audit Report 2. Management Representation Letter The annual RETF audit project is carried out based on the Contract Agreement: PRJ- 001/AAIPI/DIRECTOR/2018 dated June 4, 2018 with KAP executive consultant Suganda Akna Suhri & Rekan; with IDR 65,340,000. 4) Project Independent validation of BPKP IA-CM Self-Assesment The proposed activity is part of strengthening the Internal Audit project. This project is consistent with the Ministry of Finance's mid-term strategy, which aims to strengthen the government's capacity to prepare budgets, implement budgets, accounting, financial reporting and auditing, public procurement, ICT integration, tax administration, change management and government-to-government fiscal relations. The expected results for this activity are: 1. Comprehensive report that updates the progress of the BPKP. 2. Detailed strategies and action plans in the way forward for the BPKP. 3. The consultant will provide recommendations. 4. The consultant will deliver a presentation on "IACM refresher seminar". The strengthening internal audit project is implemented based on the Contract Agreement: PRJ-002/AAIPI/DIRECTOR/2018 dated August 6, 2018 with implementing consultant Elizabeth Mac Rae; with the amount of USD 34,000. 5) Project Implementation Support on Government Internal Control System (SPIP) and Internal Auditors Capability Base On IA-CM at Ministry and Local Government Level The purpose of this activity is to support efforts to accelerate the implementation of the Government Internal Control System (SPIP) framework at the local government level and efforts to achieve Level 3 Internal Auditor Capabilities for internal audit units through production books on good practices in the Internal Government System Implementation Framework Control (SPIP) and Implementation of Internal Level 3 Auditor Capabilities and their implications for local governments. Consultation Services for Implementation Support in the Government's Internal Control System (SPIP) and Internal Auditor Capability based on the IA-CM model at the Ministry and Regional Government Levels are carried out based on Contract Agreement Number: PRJ-03/AAIPI/DirEks/2018 dated October 1, 2018 with implementing consultants PT. KMPlus Optima International; with a contract value of Rp. 869,935,000. 14 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 5. Budget Realization (Continued) A. Explanation of Project Consultant Services (Continued) 6) Project Development of Performance Audit Guidelines The purpose of this activity is that the Consultants will work under the supervision of the AAIPI Audit Standards Committee. Reports as described in the shipment will be reviewed and prepared for AAIPI. The consultant will develop a performance audit guideline for AAIPI members for implementation. Technical Assistance on the Construction of Performance Audit Guidelines carried out based on the Contract Agreement Number: PRJ-004/AAIPI/DirEks/2018 dated 12 October 2018 with the executive consultant of PT Bina Audit Indonesia; with a contract value of Rp. 473,874,500. 7) Project Development of AAIPI Website and Development AAIPI Memebership Database The purpose of this activity is that the Consultants will work under the supervision of the Ministry of Finance. Reports as described in the shipment will be reviewed and prepared for AAIPI. Consultation Service for Website Development of AAIPI and Database Membership is carried out based on the Contract Agreement Number: PRJ-05/AAIPI/DirEks/2018 dated 26 October 2018 with the executive consultant of PT Wahana Mandiri Sydratama; with a contract value of Rp. 681,463,750. B. Explanation Training and Workshops 1) Government Internal Control System (SPIP) Workshop The purpose of this activity is that the Consultant will work under the supervision of the Deputy of Regional Financial Management Supervision, if applicable. Educate appropriate personnel about the elements of risk assessment through Consultant Services. Consultant Services for the Government's Internal Control System (SPIP) are implemented based on the Contract Agreement Number: PRJ-06/AAIPI/DirEks/2018 dated December 6, 2018 with the implementing consultant of Menes Consulting Group, LLC; with a contract value of USD 55,000. Implementation date: 16 to 18 January 2019. 15 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project NOTES TO FINANCIAL STATEMENTS For Period January 1, 2018 – April 30, 2019 (Presented in Rupiah, unless otherwise stated) 5. Budget Realization (Continued) B. Explanation Training and Workshops (Continued) 2) Training of Trainers of Internal Audit Capability Model (IA-CM) Assessor The purpose of this activity is to improve the ability of Internal Audit (IA-CM) to build a framework that identifies the basics needed for effective internal audits in the public sector. The expected results for this activity are: 1. Training Modules/Materials 2. Delivery Training 3. A brief report summarizing the results achieved as a consequence of the training workshop and the technical / consulting services provided. The Training of Trainers of Internal Audit Capability Model (IA-CM) assessor is carried out based on the Contract Agreement: PRJ-007/AAIPI/DIRECTOR/2018 dated December 14, 2018 with implementing consultant Elizabeth Mac Rae; with the amount of USD 34,000. Implementation date: 21 to 25 January 2019 and 28 January to 1 February 2019. 3) Training of Trainers of Quality Assurance Improvement Program (QAIP) The proposed activity is to develop a Quality Assurance Improvement Program (QAIP) training for selected personnel in internal audit institutions in Indonesia. The expected results for this activity are: 1. Develop a comprehensive training module / material 2. Training Materials The strengthening internal audit project is carried out based on the Contract Agreement: PRJ- 001/AAIPI/DIREKSI/2019 dated January 4, 2019 with the implementing consultant of Menes Consulting Group; with the amount of USD 42,000. Implementation date: January 28 to January 31, 2019 and February 4 to February 7, 2019. 6. Other Expenses This account consists of: Rupiah (IDR) Bank Administration fee 4.667.805,00 Bank Interest Tax 719.483,88 Total 5.387.288,88 16 GOVERNMENT INTERNAL AUDITORS ASSOCIATION (AAIPI) Internal Auditor Improvement Project GRANT RECONCILIATION SPECIAL ACCOUNTS Period January 1, 2018 - April 30, 2019 US $ Special Account No: 1148-02-000001-30-8 (US$) RECEIPTS Opening balance - January 1, 2018 155.955,04 Grant Received Advances from the World Bank during period January 1, 2018 - December 31, 2018 260.000,00 Advances from the World Bank during period January 1, 2019 - April 30, 2019 160.500,00 Bank Interest Period January 1, 2018 - December 31, 2018 192,03 Period January 1, 2019 - April 30, 2019 61,84 Total Receipts 576.708,91 EXPENDITURE Expenditure Expenditures during period January 1, 2018 - December 31, 2018 243.115,00 Expenditures during period January 1, 2019 - April 30, 2019 325.730,00 Bank Administration Period January 1, 2018 - December 31, 2018 120,00 Period January 1, 2019 - April 30, 2019 290,00 Tax for Bank Interest Period January 1, 2018 - December 31, 2018 38,52 Period January 1, 2019 - April 30, 2019 12,35 Total Expenditure 569.305,87 Bank balance as of April 30, 2019 7.403,04