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

FINANCIAL ASSISTANCE DURING THE REHABILITATION AND RECONSTRUCTION PHASE

No Donor Category USD

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

OrganizationNGOs Companies Communities

Don

ors

Multi donor fund/Multilateral

Org

Companies

NGOs

Inte

rmed

iate

Ag

encie

sRe

cipie

nts

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

1 2

3 4 65 7 8 9 10 11

12 13 14 15 16 17 18 19

21 22

2326

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 government’s 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 didn’t 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

InternalControlSystem

(emergency and normal)

Audit Approach

and Strategy

Regular Basis (ensuring continuous

improvement of disaster management as a whole)

Compliance

Performance

Financial

• Q and A