Abstract

This study is purposed to (1) determine the financial management performance of Keerom district, (2) effective and efficient in the financing the needs of the region. This research is a descriptive study describing and analyzing the data obtained. The object of this study is to measure the performance of financial management in Keerom district in terms of the ratio of financial independence area, Regional Financial Dependency Ratio, the ratio of fiscal decentralization, the effectiveness and efficiency ratios. Results of the analysis of the financial performance ratio in Keerom district in 2009-2013 shows that (1) the financial performance is not optimal yet in the implementation of regional autonomy, this is indicated by the indicator of financial performance, they are; Regional independence of Keerom district reached 3.22%, Regional Financial Dependence is very high towards the central government, it is reached 53.91%, and the Fiscal Decentralization is less, considering the financial dependence on the central government is very high at 16.44%. (2) effectiveness in managing local finance in Keerom district is Highly Effective since it reaches 95.11% and it needs to be maintained and improved, but the efficiency of financial management in this district shows the results of inefficient, it reaches 100.41%, then it needs special attention in order to avoid wastage in the use of finance to fund the development and the activity of other areas.

Highlights

  • Giving broadly autonomy and decentralization pave the way for the government to conduct local financial management oriented to public interest

  • The object of this study is to measure the performance of financial management in Keerom district in terms of the ratio of financial independence area, Regional Financial Dependency Ratio, the ratio of fiscal decentralization, the effectiveness and efficiency ratios

  • Regional financial problem is one key element in the implementation of regional autonomy even though it is recognized that other various variables affect the regional financial, such as variables of human resources, organization, management, infrastructure and other supporting variables

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Summary

Introduction

Giving broadly autonomy and decentralization pave the way for the government to conduct local financial management oriented to public interest. The ability to manage the financial area outlined in the regional budget that directly or indirectly reflects the ability of local governments to finance the implementation of the tasks of government, development and social services. The evaluation of the financial management performance of local and regional financial will largely determine the position of a government in the framework of carrying out the local government. Regional financial problem is one key element in the implementation of regional autonomy even though it is recognized that other various variables affect the regional financial, such as variables of human resources, organization, management, infrastructure and other supporting variables. The importance of local financial variables related to the fact that the mobilization of the financial resources of the region in view as the most crucial part in the administration of local government

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