Government’s Regulation No 66 Year 2010 on Management and Implementation of Education obligates that a number of universities with State Legal Entities status, including UGM, to change their status to a university with a pattern of financial management of Public Service Board (BLU). Various preparations are still made by UGM to deal with the change, one of which is by organizing Socialization of BLU Financial Management from 10-11 February 2012 at Puri Asri Magelang. Besides, the UGM Directorate of Finance also provides technical training on on-line definitive SIMKEU to staff dealing with advance payment in the central office of UGM.
"This activity is intended to change the mindset of financial management staff related to the change in status from BHMN to BLU which will be enacted fully soon," UGM Finance Director, Drs.Haryono, Ak., M.Com., said.
Haryono said one of the efforts made by Directorate of Finance is developing a web-based Financial Management Information System application (SIMKEU) for on-line advance payment management and accountability of funds. This system has been implemented at UGM Central Office since 2010. In 2012 this SIMKEU has been developed with Definitive on-line accountability report feature to process direct expenditure (definitive) payments in the form of employee’s expenditure. The system is integrated with employee data of Directorate of Human Resources as well as expenditures for goods and services that are integrated with the transaction in Assets Management and Maintenance Directorate.
Upgrade of SIMKEU application was put into effect on February 13, 2012 with the patterns of assistance and will be evaluated in April 2012. In addition, in the near future virtual accounts system will be implemented for integrated fund receipt accounts and implementation of corporate Internet banking in the disbursement process. In the next phase, SIMKEU will be socialized and implemented at Faculties and Units at UGM.
"The development of SIMKEU application is expected to realize the goal of the university to improve financial management which is transparent and accountable. UGM Directorate of Finance is also expected to further increase the speed and accuracy of financial services," Haryono explained.
Haryono added the change of status to BLU would automatically change the treatment of receiving and management of funds obtained by UGM academic community (outside of the state budget). In PT BHMN status, public funds can be managed autonomously by the universities, but with BLU system, public funds shall be treated as Non-Tax Revenues, which become an integral part of state budget funds. Because of this, public funds should comply with the provisions of the state finance law, including the tariff setting, planning cycles, use and reporting and these should be endorsed by the Parliament before use.
Haryono mentioned that BLU-style financial management is difficult to be evaded by UGM because though the transition is until December 31, 2012, in reality, at the end of 2011, UGM has been "treated" as a PT BLU where UGM is obligated to approve mandatory realization of revenues and expenditures budget year 2011 and deliver the final cash balance. Similarly, in fiscal year 2012, according to Director General of Treasury Regulation No.PER-30/PB/2011 on Revenue Expenditure Certification Mechanism of BLU Units, at least every quarter, UGM has the obligation to report all receipts and non-tax revenues to KPPN (Treasury), accompanied with an attachment of bank accounts listing to give evidence of the amount of cash balances.
"There is a change in treatment based on the Public Fund to non-tax revenues, UGM should seriously implement the concept of Administration Centralization and Academic Decentralization for the management of finance, not the opposite. A finding by the BPK mentioned that the receiving of public funds which are not deposited to the account of the Rector is a sample of the Decentralization of Administration and Academic Decentralization," he explained.