3.1.  U   = Main quality              3.12. t    = Thickness   

3.2.  I   = First quality             3.13. TGA  = Medium A

3.3.  II  = Second quality            3.14. TAB  = Medium AB

3.4.  III = Third quality             3.15. TGC  = Medium C

3.5.  IV  = Fourth quality            3.16. TK 1 = Medium Kedangan 

3.6.  V   = Fifth quality             3.17. SB 1 = Sabah 1           

3.7.  VI  = Sixth quality             3.18. M 1  = Kemedangan 1

3.8.  VII = Seventh quality           3.19. M 2  = Kemedangan 2

3.9.  -   = Not required              3.20. M 3  = Kemedangan 3

3.10. p   = Length                    3.21. kg   = kilogram

3.11. l   = Width                     3.22. gr   = gram

4.    Glossary

4.1. Eaglewood ash is an Eaglewood powder produced from the milling process or the destruction of rubbing and cleaning remains of the Eaglewood.

4.2. Eaglewood Resin is a kind of solid and soft resin, which comes from trees or parts of Eaglewood-producing trees, with a strong scent, and is characterized by its brownish black.
4.3. Eaglewood cambium is wood from trees or parts of Eaglewood-producing trees, that contains mastic with a rather strong scent, which is characterized by its black or in turn blackish brown.
4.4. Kemedangan is wood from trees or parts of eaglewood-producing trees, which contain mastic with the weak scent, which is characterized by its grayish white to brown, coarse grained, and its soft wood.
5. Specifications
Eaglewood is grouped into 3 (three) sorts, they are  Eaglewood Cambium , Kemedangan, and Eaglewood Ash

6. Classification
6.1. Eaglewood Cambium is divided into quality mark, they are:

1. The main quality, with a mark of quality U, equal to super quality
2. The first quality, with a mark of quality I, equal to AB quality
3. Second quality, with a mark of quality II, equal to super Sabah

6.2.    Kemedangan is grouped into 7 (seven) quality classes, they are;

1. First Quality, with a mark of quality I, equal to TGA or TK I.

1. Second quality, with a mark of quality II, equal to the quality of SB I.
2. Third quality, with a mark of quality III, equal to the quality of TAB.
3. Fourth quality, with a mark of quality IV, equl to the quality of TGC.
4. Fifh quality, with a mark of quality V, equal to the quality of M 1.
5. Sixth quality, with a mark of quality VI, equal to the quality of M 2.
6. Seventh quality, with a mark of quality VII, equal to the quality of M 3.

6.3.    Eaglewood Ash is grouped into 3 (three) quality classes, they are:

1. Main quality, with a mark of quality U.
2. First quality, with a mark of quality I.
3. Second quality, with a mark of quality II.

7. How to Harvest

7.1. Eaglewood Cambium and kemedangan are obtained by felling trees that produce the eaglewood that has died, as a result of the mastic accumulation caused by infection in the tree.

7.2. Trees that have been harvested and cleaned and cut into pieces or split apart, then the wood parts that contain an accumulation of mastic are selected, and later they are called as eaglewood.

7.3. Pieces of eaglewood are sorted according to the content mastic, color and shape.

7.4. In order that the color of the pieces of eaglewood can be more visible, the eaglewood pieces are cleaned by rubbing.                                                                           

7.5. The eaglewood splinters of the remaining of cutting and cleansing or rubbing, are re-collected to be made as raw materials of the eaglewood making..

8. Quality requirements

8.1. General Requirements

Both Eaglewood Cambium and Kemedangan are not allowed to have flaws of being decayed and rottened.
8.2. Specific Requirements
Specific requirements of eaglewood quality can be seen in a row in Table 1, 2 and 3. 

 
Table 1. Quality Requirements of lEaglewood Cambium

 Table 2. Quality Requirements of Kemedangan

 Table 3. Quality Requirements of Eaglewood Ash

9. Sampling
Sampling for eaglewood or eaglewood ash for the purpose of inspection is conducted randomly, with the number of test samples as listed in Table 4.
Table 4. Eagle Number of Test Sample

10. Test Methods

10.1. Principle: Tests are conducted visually with the priority color impression and the scent impression (smell) when it is burnt.

10.2. The equipment used includes tape measure, knives, fire, magnifying glass (loupe) of the magnifying of ≥ 10 (ten) times, and scales.
10.3. Testing requirements
10.3.1. Eaglewood to be tested should be grouped according to the same sorts. Especially for eaglewood ashes are grouped according to the same color.
10.3.2. The testing is carried out in a bright place (with adequate lighting), so that they can observe all the abnormalities found in eaglewood or eaglewood ash.
10.4. Testing Implementation
10.4.1. Determination of wood species
Determination of eaglewood species can be carried out by examining the general characteristics of eaglewood.
10.4.2. Determination of the size
Determination of the length, width and thickness of eaglewood is only valid for the type of cambium eaglewood.
10.4.3. Weight determination
Weight determination is done by weighing, using the unit of kilograms (kg).
10.4.4. Determination of the quality

Determination of eaglewood quality is by the assessment of the size, color, shape, state of fiber, the weight of wood, and the scent of tested eagle wood. While for the eaglewood ashes, it is done by assessing the color and scent.
a. Assessment of the size of eaglewood is by measuring the length, width and thickness, in accordance with quality requirements in Table 2.

b. Assessment of the color wood and eaglewood ash is by assessing the maturity of color, older color of the wood, indicating that resin content is higher.

c. Assessment of the content of the mastic and the scent is by cutting a small portion of the eaglewood or by taking a pinch of eaglewood ashes, then burnings it. The contents of high mastic can be seen from the result of combustion, that is the eaglewood or its ash are melting and pulling out a strong and fragrant scent.

d. Assessment of eaglewood fiber is by assessing the tightness and the density of wood fiber. Tight, dense, smooth and soft wood fibers have higher quality than rare or rude fibers.

10.4.5. Determination of the finishing quality

The determination of the finishing quality is based on the lowest quality according to one of quality requirements based on the characteristics of eaglewood.

11. Passing Test Requirements

eaglewood or eaglewood ash that has been tested or inspected, is declared to have passed the test if it meets the quality requirements set.
12. Labeling requirements
On the packaging of the eaglewood or eaglewood ash that has completed testing should printed:
- Number of packaging
- Weight of packaging
- Sorting
- Quality
- Number SNI
- Corporate Identification Signs (TPP)

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 Value for money auditing is a recent expansion in the scope of auditing. In the public sector, State Auditors were traditionally concerned with regularity of expenditure and compliance with laws, rules and regulations. They also reported to Parliament on the deficiencies in revenue collections and any wastage of public funds.

In the early 1970s, the role of state auditors began to change dramatically. Changes began in USA, Canada and in several European countries. The elected representatives of the people started demanding information on the efficacy and the effectiveness of public expenditure. They expressed dissatisfaction with the traditional role of audit which focussed merely on regularity and compliance aspects. They wanted to know value for money being achieved from the expenditure of public funds. They expected greater accountability from public officials in the management of public funds. The state auditors tried to respond to this challenge and started value for money auditing. The value for money auditing is also referred to as performance auditing, comprehensive auditing, management auditing, efficiency auditing, etc.

 2) Definition of Value for Money Auditing

 There is no universally accepted definition of value for money audit. The Canadian Comprehensive Auditing Foundation defines VFM auditing as

“A comprehensive audit is an examination that provides an objective and constructive assessment of the extent to which:

 • Financial, human and physical resources are managed with due regard to economy, efficiency and effectiveness; and

 • Accountability relationships are served.”

 The United States General Accounting Office Auditing Standard defines VFM as, “performance audits include economy and efficiency and program audits.

 (a) Economy and efficiency audits include determining;

 i. whether the entity is acquiring, protecting and using its resources (such as personnel, property and space) economically and efficiently,

 ii. the causes of inefficiencies or uneconomical practices, and

 iii. Whether the entity has complied with laws and regulations concerning matters of economy and efficiency.

 (b) Program audits include determining;

 i. The extent to which the desired results or benefits established by the legislature or other authorizing body are being achieved,

 ii. The effectiveness of the organization, programs, activities or function, and

 iii. Whether the entity has complied with laws and regulations applicable to the program.”

 The definition used by the Auditor General of Pakistan is “an independent appraisal of an audit entity to determine the extent to which resources were managed with due regard to economy, efficiency and effectiveness and in conformity with applicable regulations, rules and procedures.

While there are some differences in the definition of VFM auditing, it is clear from the above definitions that the core of value for money auditing is the framework of economy, efficiency and effectiveness.

 2.1 Economy

 Economy may be defined as “minimizing the cost of resources used for an activity having regard to the appropriate quality”.

Economy relates to all types of resources such as physical, financial, human and information. The question of economy is relevant to the acquisition of resources. Auditors try to determine whether the resources have been acquired in the right amount, at the right place, and the right time, of right kind and at the right cost. This by itself is not very easy. It presumes that there are standards available to judge whether considerations of economy were kept in view in acquiring resources. One example of a standard for economy is to accept the lowest open bid for buying an asset. But it is not so simple. It is common knowledge that this is not a fool-proof method. Bid-rigging is a practice known in almost all countries. The bidders join hands to suppress genuine competition and thus fool the system of open bidding. Therefore, the crude standard of accepting the lowest bid may not be sufficient. In this situation when we seek economy in relation to quantity, quality, place, time and cost, more comprehensive standards are required to assess weather economy was observed in acquiring the resources.

 2.2 Efficiency

 Efficiency refers to the relationship of inputs and outputs. It is relevant to the use of resources. Examples of efficiency are: teacher-pupil ratio in a school and machine-hours to output ratio in a factory. An increase in output without a corresponding increase in input or getting the same output as before with a reduced input indicates an increase in efficiency.

Efficiency is usually a matter internal to the organization. Efficiency does not directly affect the activities of organization’s environment, external to it. For example, in the case of a hospital, efficiency measures may measure the utilization of hospital beds, operation theatres or use of drugs, etc. However, such measures may not directly affect the quality of care or the state of disease or health in the community which the hospital is serving.

Measuring efficiency presumes the existence of acceptable standards/criteria. It is often necessary for auditors to develop such standards/criteria if they do not exist. Therefore, auditors often have to work with the auditee management and other specialists to identify or develop efficiency standard/criteria. Even where standards/criteria exist auditors need to satisfy them that these standards/criteria continue to be relevant. Sometimes efficiency standards/criteria become outdated in changed circumstances but remain in use. For example, the standard of efficiency in an accounts office for processing payment claims may have been devised when computers were not in use. With the advent of computers, the time needed to process a payment claim may have undergone a change. The auditors need to remain vigilant to such changes before accepting the existing standards.

It is relatively easier to measure efficiency in cases where the inputs and outputs are of a repetitive or mechanical nature. We can devise standards for measuring efficiency in such situations. As compared to this, it is quite difficult to measure efficiency where the inputs and outputs are non-repetitive. For example, it is easier to determine the efficiency of a power house in producing electricity as compared to measuring the efficiency of a doctor who is examining patients, each of whom may be unique.

2.3 Effectiveness

Effectiveness has been defined as an ends oriented concept that measures the degree to which predetermined goals and objectives for a particular activity or program are achieved (the attainment of the right results from the usage of resources and organizational operations).

Of all the meanings attached to the word effectiveness, probably the most common is related to the achievement of goals. Different authors, with different value systems have their own conceptions of effectiveness, but what brings them near one another is goal accomplishment or performance in meeting objectives. This is how legislative auditors have generally viewed effectiveness for their own work. Although, making goal accomplishment central to effectiveness gives it a clear focus, the problems and implications remain very substantial. The literature on effectiveness contains many studies that raise issues surrounding this particular perspective. Among the observations on this aspect are the following:-

Goals are often ill-defined, complex, changing, and contradictory;

 • It is often unclear at what level or with respect to what units the attainment of goals should be measured;

 • More than one technology or strategy produces the same outcome;

 • Goal-based perspectives usually take into consideration the preferences of managers, not all constituencies; and

 • Goal-based definitions have failed to clarify distinctions between organizational effectiveness, managerial effectiveness and manager and subordinate behaviour and attitudes.

 The assessment of effectiveness is by far the most important contributor of an accountability regime and at the same time the most elusive. One reason may be that there is no single, high level, generally agreed- upon definition of effectiveness.

In daily conversation, being effective describes the capacity or the ability to achieve results. Often, it goes beyond this capacity and being effective means having reached one’s goals, to be successful. The word may also be used to emphasize the impact of one’s efforts or actions. Frequently, it merely describes that capability is actually in use, or that a law or a rule is in force.

In practice, when discussing organizations, the word effectiveness is typically modified by one of three terms: Program, operational and organizational.

 • Program effectiveness relates to the continuing relevance of a program, the attainment of its intended objectives, its impact, and its cost-effectiveness;

 • Operational effectiveness relates to the achievement of output targets, to the delivery systems for the goods and services produced and the cost-effectiveness of these systems;

 • Organizational effectiveness relates to the overall capability of the organization and the interactions among strategic planning, management structures and processes and human and financial resources all in relation to the mission and goals of the organization and the external environment.

 Some writers have refined the notion of effectiveness by making explicit the consideration of cost effectiveness, which is the attainment of the objectives at the least cost, at a lesser cost, or at least at a reasonable cost in relation to the value of the outcome. Some have also included intended and unintended results or outcome of a program as factors in the measurement of effectiveness. Others still, particularly program evaluators have included the assessment of the continued need for the program in their conception of effectiveness. They ask the question: are the reasons that gave rise to the program in the first place still valid today?

How effectiveness is viewed will depend on who is looking for it. Different views may be taken by the electorate, specific constituencies, customers, governing bodies, managers and so on. Each view has validity in its own context.

 2.3.1 Public Sector Reform

The public sector reform is moving towards results that matters to the citizens. In many countries progress have been made in moving in this direction.

In the case of managing for results and particular outcomes, a public officer’s control and supervision vary considerably in different situations. In some cases, a public officer may have significant control over outcomes. In other cases several officers may be given responsibility and authority for the management of resources to influence the achievement of intended outcomes.

The programs and projects managed by the Government are intended to provide certain outcomes.

 • Employment creation

• Healthier public

• Better standard of living

• Poverty alleviation

 Effective program/projects are those that make a difference in meeting these objectives. We can ascertain with some difficulties whether or not the above outcomes are occurring. But, it is more difficult to determine to what extent the specific program/project in question has made to the outcome.

How much of the success or failure can be attributed to the program/project. What has been the contribution made by the program/project? Despite measurement difficulty, attribution is a problem that cannot be ignored when trying to assess Government programs/projects. There are many other factors at play in addition to the impact of particular programs.

There are other Government actions or programs, social trends and economic factors can have impact on the outcomes. The Government and the public would like to know contribution to outcomes from a particular program. Without solving the measurement problem, it is difficult to demonstrate that a particular program is making a difference.

3) Selection of Projects/ Topics for VFM Audit

Governments spend money on several program and projects. It is important that the money is spent to achieve the desired objectives with emphasis on 3 E’s. (economy, efficiency and effectiveness). Public Officers are responsible for ensuring, programs and projects are managed in a proper manner. Auditors are responsible for providing independent assistance to Parliament whether value for money has been received. Auditors, due to limitations on resources cannot afford to audit all programs and projects. Therefore, selection of individual projects for audit is a key judgement that an auditor must make. The auditors should focus on those audits with maximum value added in terms of improved accountability, economy, efficiency and effectiveness.

It is useful to rank VFM Projects/Topics subjectively against the following selection factors.

 • Overall estimated audit impact

 • Financial materiality

 • Risk to good management

 • Significance of program to the activities of the entity

 • Previous audit coverage

 • Auditability

 The factors to be considered for selection of a VFM audit alone will not enable us to select a project. Source from which we can obtain information and data on different projects /topics with respect to the various factors are given below.

 • Budget speech of the Finance Minister

 • Accounts and Reports of Government Ministries and Departments

 • Media Reports

 • Earlier evaluation reports

 • Agreements with Donor Agencies

 • Reports of Parliamentary Committees

 4) Audit Objective and Scope

 The first step in planning of VFM audit is to define carefully the audit objectives. The statement of audit objectives should articulate what the audit is to accomplish.

The objective of VFM audit may be to express an opinion on economy, efficiency and effectiveness of management.

The auditor may set an objective of only reporting exceptions.

Audit objectives are generally expressed in terms of what questions the auditor is expected to answer.

Example – Results achieved

Report on exceptions

Focus on systems and procedures

Focus on results

 5) Audit Criteria

 Audit criteria are reasonable and attainable standards of performance against which economy, efficiency and effectiveness of activities can be assessed.

If audit criteria are not set, there will be no basis for comparison and consequently no basis for arriving audit findings, conclusions and recommendations.

In financial auditing, the auditors usually apply generally accepted auditing practices which evolve through practice and academic work.

VFM auditing attempts to evaluate vast varieties of activities and functions and therefore, there are no generally accepted criteria. VFM auditors, therefore, operate in more difficult terrain than the financial auditors.

 5.1 Types of audit criteria

 i.General criteria

 ii.Specific criteria

 General criteria

General criteria are broad statement of acceptable and reasonable performance. For example the procedures in an organization may be cumbersome to be effective. In this case generally accepted management practices can be adopted as audit criteria.

Specific criteria

Specific criteria are more closely related to an entity’s objectives, programs, systems and controls.

In highly specialized technical areas, auditors may require the assistance of technical experts. For technical projects this competence can be achieved through a team of auditors consisting of auditors and technical experts from different discipline.

In VFM auditing auditors access the performance of a Program/Project against pre-determined expectations of performance or criteria. In order to be acceptable criteria must have certain characteristics as reliability, objectivity, usefulness, understandability, comparability, appropriate and acceptable.

6) Audit Evidence

Audit evidence can be defined as information collected and used to support audit findings.

INTOSAI Auditing Standards and ASOSAI Performance Auditing Guidelines state that evidence should be:-

“Competent, relevant and sufficient to support the auditor’s judgement and the conclusions regarding the organization’s program, activity or function under audit”.

Competent Conforms to facts

Evidence from personal observation

Documentary evidence

Original documents

Relevance Relationship to the audit objectives

Sufficient Adequacy of evidence

The quality of evidence

The level of materiality

Audit evidences usually fall into four types.

 -Physical Evidence

-Testimonial Evidence

-Documentary Evidence

-Analytical Evidence.

 author : Mr. V.Kandasmy

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NET WORTH METHOD

This method is an indirect method. The formula of this method uses the entire income tax payers as a means of proof. The formula of this method can be described as follows.
Suppose that net worth in the first year is X, then the net worth in the year X is the entire assets minus debts. The same is done for the second year. Further net worth the first year compared to the second year. This comparison will result in an increase in net worth, which should be equal to the taxable income for the second year. See examples of the following calculation:

First Year

Assets                                                  1. 000
Liabilities                                                200
Net worth                                               800

Second year

Assets                                                            3000
liabilities                                                         250
net worth                                                      2750
net worth first year                                     800
net worth increase in                                1950
plus nondeductible ekspenses             1000
minus nontaxable income                        400
Taxable income corrected                     2550
Taxable income reduced corrected   1250
Taxable unreported income in             1300

EXPENDITURE METHOD

as well as net worth method, expenditure method is also used to determine taxable income not reported. See examples of the following calculation:

Expenditure                                                       10.000
Total Nontaxable income                                    750
Adjusted Gross Income                                    9.250
Minus standard deduction                                  750
Minus exemptions                                                  500
Corrected taxable income                              8.000
Reported taxable income                                 3.000
Unreported taxable income                            5.000

Expenditure method is usually used for tax cases:
1. Taxpayers did not make the accounting
2. Taxpayers making bookkeeping but not perfect
3. Hide taxpayer accounts.
4. Taxpayers have no visible assets

author :theodorus

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reference: trubus news

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MARKET CHALLENGES
Although Indonesia forestry industry began using natural raw materials and plant forests in a balanced way, many other countries provide tariff barriers for products not accused of using indonesia.Indonesia cheaper raw materials because the use of timber land clearing results in the process of land preparation. Tougher enforcement along with the Lacey Act by act provides USA.Lacey severe sanctions against prakktek destruction. They are proven to be violating the law arrested and processed in the USA.

for that, the government was expected to draw on economic policy with the forest policy.lobying with other countries needs to be done.
until now, the new prince charles of English who take an active role to build Indonesia forests through forest restoration projects in jambi expectations. Prince charles drafting a formula to calculate the value of natural forests in jambi for later sold in the form of prince charles bond.company or emissions-producing countries in category of Annex I, like Japan and the USA are expected to buy securities as they contribute in reducing emissions production. Proceeds from sale of securities is then used to restore natural forests with natural vegetation so that the return becomes sustainable.
Prince charles promote efforts to support the restoration of the International world of natural forests in Jambi and South Sumatra are clear evidence of international alignments. they realized, the future of the world now in Indonesia.

refence : kompas

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“We’re not giving anything to the Malaysia cooperation is only normal. There’s nothing to worry about,” he said.

“Eaglewood/gaharu has great potential and is very easy-to-market. The price of a kilogram of the crop began to USD 5 million Eaglewood-Rp30 million, depending on its quality. It’s just a long harvest period of nine years,” he said.

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author : Ashari and Saptana

see complete at :pse.litbang.deptan.go.id.com

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Aquilaria malaccensis, A. microcarpa and A. crassna is producing pig species of aloes with the smell of a very unpopular Middle Eastern societies, which have the highest prices.
Planting locations.
Eaglewood/gaharu be planted starting from the lowlands to the mountains with an altitude of 750 m above sea level.
Planting Pattern
Monoculture or mixed systems (intercropping or agroforestry)
Planting Distance
Spacing of 3 x 3 m (1000 trees / ha.), But can also be 2.5 x 3 m to 2.5 x 5 m. If aloe plants are planted on land that was overgrown with other plants, then the minimum distance of aloe plants 3 m from the plant.
Planting hole
Planting hole size is 40 x 40 x 40 cm. Holes had been dug up at least 1 week left, so that the air hole outside beraerasi. Then enter basic fertilizer, decayed sawdust mixture and compost in the ratio 3: 1 to reach the ¾ size of the hole. Then after a few weeks gaharu trees, ready for planting.
Planting
Planting seeds of aloes should be done at the beginning of the rainy season in the morning until 11:00 hours, and can proceed to the 4-hour evening.
Maintenance
Fertilization can be done at 3 months, but may also every 6 months to compost as much as 3 kg through under the canopy. The use of chemical fertilizers such as NPK and compound can also be added every 3 months with a low dose (5 g / plant) after 1-year-old plant, then the dose is increased according to the size of the plant stem. Aloe plant pests to note is the white louse which lives under the leaf surface, when the humid environmental conditions. Prevention is done by trimming and pruning shade trees to get sunlight followed by spraying of pesticides such as Tiodane, Decis, Reagent., Etc. Cleaning up weeds can be done once in 3 months or when deemed necessary.
Tree trimming done at age 3 to 5 years, by cutting the bottom branches and leaves 4 to 10 branches above. Crop tops trimmed and maintained enough about 5 m, making it easier for job gaharu inoculation.

source : gaharuman.com

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