Methodology of Selection on the Use of KNI

Prepared by SAI of Indonesia

Agenda

Background

UsingSelected

KNI in PA

UsingSelected

KNI in PA

Recommending KNI improvement

Recommending KNI improvement

Selecting Key National

Indicator

Selecting Key National

Indicator

Determining Selection Criteria

Determining Selection Criteria

1. Planning

2. Selecting

3. Utilizing

4. Evaluating

SelectionCriteria

Audit Report

Selected K

NIKNI

Stakeholder’s Needs and Expectations

SAI Policy

Best

Practice

SAI Roles in the Use and Development of KNI

Determining Selection Criteria

• Studying source of KNI: Government Development Plan• Identifying relevant factors

for selection of KNI:• Stakeholder’s needs and

expectation• Legal framework: mandate

and regulation• SAI Policy: Strategic Plan

and Audit Capacity • Best Practices

• Studying source of KNI: Government Development Plan• Identifying relevant factors

for selection of KNI:• Stakeholder’s needs and

expectation• Legal framework: mandate

and regulation• SAI Policy: Strategic Plan

and Audit Capacity • Best Practices

• Determining the most important priority/ area/vision to be assessed• Identifying the link between

availbale indicators and the selected priority/area/vision• Considering stakeholders

interests• Identifying quality of

indicators to be assessed: measurability & applicability/ • Identifying auditable factors:

SAI resources-auditors, infrastructure, organisation, guidelines etc

• Determining the most important priority/ area/vision to be assessed• Identifying the link between

availbale indicators and the selected priority/area/vision• Considering stakeholders

interests• Identifying quality of

indicators to be assessed: measurability & applicability/ • Identifying auditable factors:

SAI resources-auditors, infrastructure, organisation, guidelines etc

• Criteria1 referring to the quality of indicator• Criteria2 referring to the

stakeholder perspective• Criteria3 referring to the

SAI perspective

• Criteria1 referring to the quality of indicator• Criteria2 referring to the

stakeholder perspective• Criteria3 referring to the

SAI perspective

Criteria Criteria

Selecting Key National IndicatorDeveloping measurement for selection criteria

• Identifying methods to measure/assess indicators based on the selected criteria• Subjective-perception

method• Objective-clear definition

& measures of indicators• Designing measures• Degree/numbers (Low-

Medium-High or 1 – 3)• Range (scale)

• Identifying methods to measure/assess indicators based on the selected criteria• Subjective-perception

method• Objective-clear definition

& measures of indicators• Designing measures• Degree/numbers (Low-

Medium-High or 1 – 3)• Range (scale)

• Applying measurement to each KNI

• Ranking indicators based on criteria & the method of measurement

• Adjusting the rank, if necessary (changes in weight of measures)

• Determining KNI to be used

• Applying measurement to each KNI

• Ranking indicators based on criteria & the method of measurement

• Adjusting the rank, if necessary (changes in weight of measures)

• Determining KNI to be used

•Target (Impact)•Program (Outcomes)•Activities (Output)

SelectedKNI

Selected KNI

• Determining KNI to be used

• Detailing down into several sub indicators when necessary

• Determining KNI to be used

• Detailing down into several sub indicators when necessary

Understanding National Development Indicators

National Current

Condition

Identifying Problems and

Threats

Stakeholder Feedback

Prior Period Evaluation

Unrealized Prior Mission

Determining Medium Term Development

Target

Considering Long Term Develop-

ment Plan

Considering International/Global Commitment

Considering Presidential

Vision, Mission Program, Priority

National Priority

Impact Indicator

Impact Indicator

OutcomeIndicatorOutcomeIndicator

Prioritized Activities

OutputIndicator

OutputIndicator

Resources Input Indicator

Input Indicator

Priority Focus-Cross

Sectoral

Pro-gram

Medium Term Plan ofNational Development

INPUT PROCESS OUTPUT

National Development Plan 2010-2014 Welfare, Democratic, and Justice

IndonesiaVision

• Continuing sustainable development into welfare Indonesia• Strenghtening democratic pillars• Strenghtening justice dimension in all areas

Mission

•Economic development and people welfare improvement•Good governance improvement•Democratic pillars establishment•Law enforcement and corruption prevention•Inclusive and justice development

Agenda

•Bureaucratic Reform & Governance•Education•Health•Poverty Alleviation•Basic Commodity Sustainability•Infrastructures•Investment & Business Climate•Energy•Environment & Disaster Management•Less Developed, Border, and Post Conflict Areas•Culture, Creativity, and Technology Innovation

Priorities

• 60 National Indicators

• 409 Components of National Indicators

Indicators

• # National Indicators

• # Components of National Indicators

Selected Indicators

Selection Criteria

• Benefits for public• High Risk or Critical

Success Factor• Number of Inter-

related Entities

• Audit Impact• Supported by audit

capacities• Reflect the SAI’s

mandate

• Significant (financial, social, political)• Clear & measurable• Alignment with vision,

mission, and other indicators• Data availability Stakeholders’

PerspectiveIndonesian SAI’s Perspective

Quality of Indicators

Measurement

Selecting Key National IndicatorDeveloping measurement for selection criteria

• Objective-clear definition & measures of indicators

• Degree/numbers (Low-Medium-High or 1 – 3)

• Objective-clear definition & measures of indicators

• Degree/numbers (Low-Medium-High or 1 – 3)

• Applying measurement to each KNI

• Ranking indicators• Adjusting the rank, if

necessary • Determining KNI to be

used

• Applying measurement to each KNI

• Ranking indicators• Adjusting the rank, if

necessary • Determining KNI to be

used

•Education•Poverty Alleviation•Health•Infrastructures•Bureaucracy Reform

SelectedKNI

• Basic education subsidies • Access and quality of basic

education • Qualified teachers for basic

education

Education

• Credit facility for SMEs • Rural agri-business

development • Health services for the poor

Poverty Alleviation

• Health Service Insurance • Health Environment • Drugs and Medical Services

Availability for People

Health

• Road and Bridge Capacities Preservation

• City high ways + Train Rail • Airport Devlp & Maintnce

Infrastructures

•Public Services Reform Progr•Corruption Mitigation Database •Regional Budget Management

Bureaucracy Reform

End Notes

THANK YOU

The Audit Board of the Republic of Indonesia (BPK)The Audit Board of the Republic of Indonesia (BPK)Jl. Gatot SubJl. Gatot Subrrototoo 31 31,, Jakarta Jakarta,, Indonesia 10210 Indonesia 10210

Website: Website: www.bpk.go.id

Telephone: +62-21-570-4395 Ext. 1181Telephone: +62-21-570-4395 Ext. 1181

Facsimile: +62-21-57953198Facsimile: +62-21-57953198

E-mail:E-mail:

hasan.b@bpk.go.id

daeng.nazier@bpk.go.id

bahtiar.arif@bpk.go.id

144th KNIWG Meeting, Helsinki, Findland,

13-14 March 2011