Abstract
This present study intends to analyze the factors affecting the performance of the local government of North Sulawesi. The population of this study includes the members of the Regional People’s Representative Assembly and the leaders of Regional Apparatus Organizations managing the Regional Revenue and Expenditure Budget (APBD). Those Regional Apparatus Organizations include Education and Culture Office, Health Office, Regional Revenue Service, Tourism Office, Public Works Office, and Auditor Inspectorate of North Sulawesi Province. The sampling technique used is the saturated sampling technique. Data collection techniques employed consist of an interview, documentation study, and questionnaire dissemination. The analysis is conducted using Partial Least Square (PLS). Based on the analysis, we found that public participation has a significant effect on the transparency of financial management; the internal control system has a significant effect on local government performance; the internal control system has a significant effect on public accountability; the internal control system has a significant effect on the quality of financial reports, and public accountability has a significant effect on the performance of local governments. However, public participation has no significant effect on local government performance; public participation has no significant effect on public accountability; public participation has no significant effect on the quality of financial reports; the internal control system has no significant effect on financial management transparency; financial management transparency has no significant effect on local government performance, and the quality of financial reports has no significant effect on local government performance. This study also reveals that public accountability is the mediating variable between the internal control system and local government performance.
Highlights
All local governments in Indonesia are responsible for conducting good governance (Good Government Governance) in every activity
We found that public participation has a significant effect on the transparency of financial management; the internal control system has a significant effect on local government performance; the internal control system has a significant effect on public accountability; the internal control system has a significant effect on the quality of financial reports, and public accountability has a significant effect on the performance of local governments
This study reveals that public accountability is the mediating variable between the internal control system and local government performance
Summary
All local governments in Indonesia are responsible for conducting good governance (Good Government Governance) in every activity. Every program they run is expected to result in optimum results. The Indonesian Ombudsman survey in public service standards from May to July 2017 has placed North Sulawesi Province in the red zone category. That mismatch between the opinion of fair without exception and the below-standard implementation of the Government Agency Performance Accountability (AKIP) is an exciting problem to research. The non-financial factors include public participation (public), internal control system (internal control), transparency of local government management, public accountability, and quality of financial reports
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
