Fixed Assets Management: The Efforts to Increase Audit Report Toward Unqualified Opinion

Abstract

Managing fixed assets in Local Government has crucial problems concerning administration, reporting and their accountability. Even though Indonesian Government has already a set of rules on governing asset management at both the central and at regional levels, but they have not yet been properly implemented. There are still many regions that have not received unqualified opinion as a result of the weakness of asset management in accordance with the prevailing standards. This study is aimed to explore the efforts to improve the opinionof local goverments associated with management of fixed assets at the Local Goverments in Province of Southeast Sulawesi. The descriptive and interpretative analyses are used as the research method. The results of this study indicates that there are several ways to achieve the unqualified opinion at the Local Goverments in Province of Southeast Sulawesi are as follows: 1) Carry out remedial efforts of several problematic fixed asset management cycles, that is a)  planning and budgeting; b) Administration and revaluation of fixed assets. 2) The implementation of full fixed asset accounting pursuant to Government Regulation No. 71 of 2010 which is regarding to the Government Accounting Standard and the Regulation of the Minister of Home Affairs No. 17 of 2007 on the Technical Guidelines of Local-Owned Assets Management.