The Effect of Local Expenditure, Local Wealth Level, Audit Opinion, and Audit Findings on the Performance of Indonesian Local Governments

Luna Nur Amalina,Mahendro Sumardjo

doi:10.22610/imbr.v12i2(i).3062

Abstract

This study aims to determine the effect of local expenditure, local wealth level, audit opinion, and audit findings on the performance of local governments. This study uses the quantitative method, the hypothesis testing with multiple linear regression analysis was used, using SPSS version 23. The population is the local governments of Districts/Cities in Indonesia. The sample is 489 data samples were collected. Results obtained from testing showed that local expenditure, local wealth level, and audit opinion significantly affect the performance of local governments. Meanwhile, audit findings do not have a significant effect towards the Performance of Local Governments. Future studies are expected to be able to add more variables that have not been used in this study, such as government size, local standing, and intergovernmental standing.

Highlights

In the implementation of region autonomy according to relevant laws that apply, the central government delegates authority and responsibility towards local governments in managing and promoting the welfare of the people (Noviyanti & Kiswanto, 2016)
The implementation of EKPPD is done to evaluate the performance of local government execution to increase performance based on the principle of good governance
H4: Audit Findings has an effect towards the Performance of Local Governments in Indonesia

Summary

Introduction

In the implementation of region autonomy according to relevant laws that apply, the central government delegates authority and responsibility towards local governments in managing and promoting the welfare of the people (Noviyanti & Kiswanto, 2016). With the goal towards good governance, performance measurement becomes one of the fundamental factors This must be supported by the operational characteristic of an entity, as well as assessment towards the various indicators of performance in each local government. This function comprises of the rate of efficiency and effectivity of the operational execution of activities which aim to reach the goals and targets that have been set. The implementation of EKPPD is done to evaluate the performance of local government execution to increase performance based on the principle of good governance. The total of the index is the addition of assessment results that cover work performance, and index of material relevance

Objectives

Methods

Results

Conclusion