In the transformation effort, one of things that has been highlighted and paid attention to is the use of organizational budgets and expenditures. In carrying out its activities, the organization depends on its financial capabilities. This was conveyed by the USU Rector in the Socialization of the Preparation of the Terms of Reference (TOR) and the Draft Budget and Expenditures (RAB) which was held online on Friday (8/13/2021).

“USU is currently trying to make fundamental changes. We need to make adjustments on all fronts to keep up with developments in the external world that are running so rapidly. We must be able to adapt to these changes,” the USU Rector said.

He emphasized that all head of work units at USU must understand the administration in the preparation of TOR and RAB. According to him, several leaders who come from a lecturer background must adapt and be familiar with administrative matters.

“Our shortcomings in the preparation of TOR and RAB are often because we don’t really understand administrative matters. I understand that because many of us have original background as lecturers. However when the mandate has been given to lead a unit, administrative matters must be understood thoroughly,” the USU Rector said.

The Director of Finance of Airlangga University, Dr. Ardianto, SE., M.Si., Ak, CMA, CA who was present as a speaker in the activity explained several problems in the preparation of TOR and RAB that often occur. Immature analysis is one of the causes of this failure.

“I can describe some of the causes of failure in the preparation of TOR and RAB is due to incorrect SWOT analysis. This error is often caused by failure to identify the root of the problem,” Ardianto said.

He also mentioned that the inaccuracy in looking at the role of the budget also affected the failure. The budget is only considered as a formality to justify expenditure. Budget is not considered as a crucial part in the success of planning.

“There is no alignment between the vision and mission, strategy formulation, setting strategic targets, preparing work programs, and preparing budgets that affect the ineffectiveness of the budget used,” he said.

The USU Rector emphasized that the TOR and RAB must be in line with the Main Work Indicators, accreditation programs, and rating programs that are being worked on by USU. He mentioned that in preparing activities, they may be the same or continues, but the outputs of these activities must have different impacts.

“TOR and RAB are not only activity outputs oriented, but also are based on outcomes that have positive and good impact on us. The impact must be measurable both quantitatively and qualitatively,” the USU Rector said.

In his closing, Muryanto Amin said that TOR and RAB should be evaluated periodically. The evaluation is required to review the impact of the activities carried out and the effectiveness and efficiency of the budget used.

Attending the meeting were the USU Vice Rectors, the Rector’s Expert Staff, the Deans at USU, Head of work units within USU attended the meeting. (©ULC).

Author: Roni Hikmah Ramadhan - PR

Interviewee: - - -

Photographer: Rizki Hakim Lubis - PR