Budget Knowledge and Board Performance in Regional Financial Supervision: Professional Commitment as Moderating

Abstract

The Regional People's Representative Council (DPRD) of Riau Province plays a crucial role in supervising regional finances, necessitating comprehensive competencies among its members. This study examines the impact of budget knowledge on DPRD's performance in financial oversight, with professional commitment as a moderating factor. Quantitative methods and PLS Structural Equation Modeling (SEM) are employed for analysis, based on data collected from 65 respondents within the Riau Province DPRD. Findings reveal a positive relationship between budget knowledge and performance of regional financial supervision, indicating that enhanced budget literacy among council members correlates with improved oversight effectiveness. Additionally, professional commitment positively influences supervision performance, highlighting the significance of individual dedication to the council's responsibilities. However, professional commitment as a moderating variable does not significantly affect the relationship between budget knowledge and supervision performance. This suggests that while individual commitment is vital, it does not substantially alter the impact of budget knowledge on oversight performance. The study underscores the importance of equipping DPRD members with adequate budget knowledge to enhance financial oversight efficacy, emphasizing the need for distinct professional commitment to council duties over partisan affiliations.