Local Government Financial Management Research Articles

Efektivitas dan Efisiensi Pengelolaan Keuangan Dana Desa pada Dalu Sepuluh A Tanjung Morawa

Purpose: To evaluate the effectiveness and efficiency of financial management of village funds in Dalu Sepuluh A Village, Tanjung Morawa. Research Methodology: Comparative analysis using effectiveness and efficiency formulas. Document analysis of financial reports and budget plans. Interviews with village officials. Results: Village fund budget management in Dalu Sepuluh A Village did not meet efficiency standards. The effectiveness ratio is 100%. Improvements include better budget planning and increased transparency in financial reporting. Limitations: The study focused on a single village for one fiscal year, limiting its generalizability. Reliance on self-reported data from village officials. Contribution: The findings will contribute to local government financial management, rural development studies, and public administration. This study provides insights for policymakers on village fund management in Indonesia.

Analisis Akuntabilitas dan Transparansi Laporan Keuangan pada Kelurahan Gundaling II Kecamatan Berastagi Kabupaten KARO

This research aims to analyze the level of accountability and transparency in the financial reports of Gundaling II Subdistrict and identify practices that influence community involvement in the supervision and use of public funds. Qualitative research methods are used by collecting data through analysis of financial reports, interviews with related parties, and direct observation of the financial management process. The results of the analysis show that although financial reports have generally been prepared well, there are still several areas where aspects of accountability and transparency need to be improved. These findings highlight the need to improve financial management procedures, use technology to improve transparency, and expand public participation in financial oversight. The implication of this research is the importance of implementing more transparent and accountable practices in local government financial management in order to increase community involvement and trust in the use of public funds.

Determinants of Factors that Affect Accounting Fraud in Local Government Financial Management

This study aims to determine the effect of internal control systems, compliance with human resource regulations and competencies on accounting fraud in the regional financial management of the Gianyar Regency in Indonesia. The research method uses quantitative and data analysis techniques, including multiple regression and analysis of a questionnaire answered by the staff of the regional work unit in Gianyar Regency. Sampling in this study uses Non-Probability sampling with a Purposive Sampling technique, while the number of research samples is 144 questionnaires. The results of the study suggest that the internal control system has a negative effect on accounting fraud, regulatory compliance also negatively affects accounting fraud, and human resource competence has a negative effect on accounting fraud in the Regional Work Unit in Gianyar Regency.

Management of local finances in crisis conditions on the example of voivodeship governments in 2019-2021

The management of local finances is an intricate process consisting of decisions made by authorized bodies, which, as a result, after taking into account the established goals, both current and strategic, should result in the maximization of socio-economic effects. Indicator analysis is considered one of the important instruments of local government financial management. In the article, based on the data published by the Ministry of Finance, the National Council of Regional Chambers of Accounts and the Central Statistical Office, the financial management of the provincial cross-section of Poland in 2019-2021 was reviewed. The idea of the study was to assess the management of local finances during the crisis caused by the COVID-19 pandemic in synthetic terms, based on the TOPSIS multi-criteria linear ordering method and benchmarking, and to try to identify the factors determining this process. The research was carried out by means of financial analysis of 21 indicators, which were compiled for 16 local government provinces in Poland. The results of the research made it possible to determine the classes of financial condition of the analyzed units. The COVID-19 pandemic caused that in 2020, none of the studied local government provinces ranked in the first class characterizing a very high level of financial condition according to the TOPSIS method, although as many as 9 units were assigned to the second class characterizing a high level of financial condition. Local government provinces in 2019-2021 were characterized by very high development and investment potential, as well as the self-financing rate, they accumulated budget surpluses at the expense of an apparent slowdown in investment activity.

지방자치단체 예산의 방만운영과 낭비 예방을 위한 입법적 해결방안

Among the writings on local government operation published since the 1970s until recently in the UK, which can be said to be the suzerain of local autonomy the representative characteristic is the focus of research on the logic that threatens the traditional status of local autonomy which has been understood as a sound symbol of democracy in the past. Korea has been experiencing incomplete local autonomy with insufficient decentralization for over 30 years but it is not much different in that local autonomy is rapidly being absorbed into turbid central politics as in the UK and Western Europe. In addition to the influence of central politics lacking national trust local election officials bandwagon of popularism drives unit local governments to serious budget waste. The problems arising from the continuous budget waste and lax financial management of local governments can be limited to a unit area in a microscopic view but expand as a side effect of the nation's overall financial management in a macroscopic view. In particular, such a side effect is that it promotes distrust between social classes, while eventually causing serious obstacles in the operation of local autonomy, which is the basis of democracy. The patterns of budget waste in the budget management process of local governments typically show behaviors such as hasty decisions, exhibitionism, patronage and sharing. The main background of this problem is the selfish judgment of the political party that does not properly accept the voters' demands. In other words, rather than managing their finances soundly, they focused only on spending their budgets by pandering to popularity. It has also encouraged a waste of budget due to the private use of public powers. Therefore, we urge the introduction of a local government bankruptcy system and a taxpayer lawsuit system as a way to solve the problem. At the same time, the improvement and strengthening of the ordinance legislative power which has been continuously requested from the local government field and that is an urgent issue. Along with improvement of the current self-audit function of local governments. In the future I would like to suggest that it is necessary to establish a 'Local Board of Audit and Inspection' gradually divide the country into regions.

Assessing the interaction between internal control and financial management in local government

A well-designed internal control (IC) system should reveal how well the government manages its finances and how effectively they employ its resources. This study studied the interaction between the local government's effectiveness in IC and its financial management. Some issues with IC practice include insufficient accountability, when everyday interactions are not reported for, and inefficient mechanisms are taken into action to catch perpetrators who interfere with the money. The method used in the study depends on a survey research strategy. The research's statistical data were gathered by distributing 250 questionnaires to employees of the ten (10) local governments that were taken into consideration. Selective sampling was used to choose these respondents, and regression analysis was used to examine the questionnaire's results. The analysis's findings demonstrate that IC and financial management are significantly correlated, with a . Because of this conclusion, the research recommends that the management of local governments develop more robust ways for internal control. These approaches will ensure that IC is practical and efficient, allowing for the successful management of financial problems.

Eliminating the effects of external environmental factors to improve the analysis of local government financial condition: a study in Indonesia

ABSTRACT This article proposes an approach to the assessment of the financial condition of local governments by eliminating uncontrollable external environmental factors using cluster analysis. The author found seven clusters of provincial government, 13 clusters of regency government, and seven clusters of city government in Indonesia. The article provides evidence that clustering local government increases the effectiveness of analysis of financial conditions. The academic contribution of this article is generating cluster variables that are more comprehensive and relevant than those presented in previous studies. In addition, findings of this study can be used by authorities to develop local government financial management policies that are fairer.

ANALISIS PENGARUH PENGAWASAN INTERN, KUALITAS SUMBER DAYA MANUSIA, DAN PENERAPAN AKRUAL BASIS TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH PROVINSI PAPUA

The purpose of this research is to; 1) Analyzing the influence of internal control, the quality of human resources and the application of the accrual basis simultaneously on the quality of the Papuan Provincial Government's financial reports. 2) Analyzing the influence of internal control, the quality of human resources and the application of the accrual basis partially on the quality of the Papuan Provincial Government's financial reports, 3) Analyzing the influence of variables that have a dominant influence on the quality of the Papuan Provincial Government's financial reports.The method used in this research is multiple regression analysis. Where this analysis method is a statistical method used to test the relationship between several independent variables to one dependent variable.The results of the analysis show that, internal control, quality of human resources and the application of the accrual basis simultaneously affect the quality of regional financial reports in Papua Province. This means that the higher the internal control, the quality of human resources and the application of the accrual basis can be understood and implemented properly, the quality of the local government financial reports produced will be better. On the other hand, if the internal control, quality of human resources and the application of the accrual basis do not meet accounting policies, it can lead to poor quality of local government financial reports. Internal control, quality of human resources and the application of the accrual basis partially affect the quality of regional financial reports in Papua Province. This means that, if internal control is carried out properly, the quality of the financial reports produced will increase, as well as the quality of human resources and the application of the accrual basis. The variable quality of human resources has a dominant influence on the quality of regional financial reports in Papua Province. With the existence of human resources who have competence, especially in the field of accounting or finance, it will be able to encourage the realization of the presentation of quality government financial reports so as to increase the accuracy and accountability of local government financial management.

Transparency and Accountability in Local Government Financial Management in Ghana: A Case of Sunyani West Municipal Assembly

The research aims at the financial management practices of Ghana’s local governments for transparency and accountability. Since a lack of transparency can result in a lack of confidence in the government and its employees, it seeks to evaluate the degree of accountability and transparency in these practices. The management of resources, which is essential for effective governance, is the responsibility of local councils working with the state government. An online survey and quantitative research methods were employed in the study of the Sunyani West Municipal Assembly. A 150-person sample was taken from a population of 241. SPSS, the T-Test, and ANOVA were used to analyze the data. The assembly displays significant financial statements, promptly prepares annual accounts, and makes procurement plan completion data available to the public, according to the results. Respondents, however, disapproved of the real-time procurement data shown on e-procurement platforms. The gathering encourages financial management accountability and establishes performance standards, ensuring financial management accountability. The study discovered that the assembly’s activities do not promote value for money or whistleblower protection. While respondents have different opinions on financial management practices’ transparency, they do have similar views on responsibility. Although the assembly is transparent, it is not accountable. The study suggests that budget execution reports be made public that stakeholders be invited to provide input during budget preparation, and that value for money be taken into account during the procurement process. In the assembly, this would support accountability and transparency.

Electronic participatory budgeting, budget emphasis, and job tension: Implications for managerial performance

The paradigm shift in local government financial management necessitates a change in the perspective of government officials, viewing them as financial managers. This study explores the intriguing aspect of assessing managerial performance, particularly in government organizations. The uniformity in reward structures, such as salary and benefits, irrespective of different workloads, adds to the interest in this investigation. To analyze these factors, a quantitative approach with Partial Least Squares (PLS) as an analytical tool and path analysis for mediation examination is employed. The target population for this study comprises employees from the planning division of the Central Sulawesi Government. A saturated sample is used as the sampling technique. Data collection involves distributing 180 questionnaires to gather relevant information. The results of this study reveal several important findings. Firstly, it tests the hypothesis that electronic participatory budgeting does not have a direct effect on work tension. Secondly, it demonstrates that budget emphasis has a direct effect on work tension. Thirdly, it concludes that work tension does not have a direct effect on managerial performance. Additionally, the study indicates that job tension does not mediate the effect of electronic participatory budgeting on managerial performance. However, work tensions are found to mediate the influence of budgetary emphasis on managerial performance.

CHALLENGES AND PROSPECTS OF FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT COUNCILS IN NIGERIA

Globally, government pursued various form of public Financial Management (FM) reforms to
 enhance Local Government (LG) performance. A poor FM has contributed to the failure and inefficiency of LG in achieving substantial development, while most LG faces the problems of wide gap between citizens’ needs and the financial resources. It is against this background that the study examined FM in LG with a view to determining its contribution to the economy, efficiency and effectiveness of LG administration. The study employed an exploratory research design with focus on relevant literatures. The study concluded that LG administrators should act in the same manner as their counterparts in the private sectors based on modern FM practices, this will increase efficiency, financial capability, transparency and accountability in goods and services delivery. In addition, a sound internal control system should be put in place to minimise the level of fraud, corruptions and wastages affecting LG. Besides, LG should always prepare accurate and reliable annual budget, while financial planning and control should be seen as an important aspect of an effective FM.

PENGARUH PENERAPAN VALUE FOR MONEY DALAM PENGELOLAAN KEUANGAN PEMERINTAH DAERAH (STUDI PADA KANTOR BPKD KABUPATEN BIREUEN)

This study aims to see and analyze how Value for Money influences the financial management of the Bireuen district government. The population to be studied in this study are all employees at the BPKD office in Bireuen district and for sampling to be used is probability sampling which is a random sampling method. The data analysis method used is multiple linear regression with the help of using the SPSS Version 26 application. Based on the results of the research and discussion that has been carried out, the authors can conclude that Economy, Efficiency, and Effectiveness, simultaneously affect government financial management at the BPKD office in Bireuen Regency. The importance of increasing Value for Money (economy, efficiency, and effectiveness) in order to create quality local government financial management.

Which Local Government Financial Management is More Qualified, Jakarta or Surabaya?

This study aims to describe and analyze descriptively with a regional financial statement analysis approach. The outline of the purpose of this study is to determine and compare the superiority of regional financial management performance of DKI Jakarta Provincial Government and City Government in terms of 1) regional financial independence ratio, 2) effectiveness ratio, 3) efficiency ratio, 4) harmony ratio and 5) growth ratio. The results of the analysis show that the financial performance for Independence shows a score of 22 while the Regional Government of Surabaya is only 13. The activity ratio shows that the Regional Government of Surabaya is better than the Regional Government of DKI Jakarta with a score of 29 versus 19. For efficiency in using finance, the Regional Government of DKI Jakarta is better than Surabaya with a ratio of 17. comparison 9. Meanwhile, the compatibility ratio shows that the local government of Surabaya is much better than DKI Jakarta with a comparison of 25:13 and from a growth perspective, it shows that the growth in five years of the local government of Surabaya is far above the regional government of DKI Jakarta

The impact of political and non-political officials on the financial management of local governments

This paper investigates the impact of non-political administrators on the financial management of local governments. The activity of prefectorial officials is compared with the activity of elected mayors exploiting data extracted from a panel of 7826 Italian municipalities from 2007 to 2018. To address the potential confounding effects and selection biases, we combine a Difference in Difference strategy with machine learning methods for counterfactual analysis. Results show that non-political administrators bring higher financial autonomy and higher collection capacity, raising more revenues at local level. This is consistent with the hypothesis that, since they do not respond to electoral incentives, non-political administrators have lower motivations to behave strategically, not taking their own interests about electoral successes into account when they must choose the proportion of local versus external revenues for financing local expenditure.

REFORMASI BIROKRASI DAN AKUNTABILITAS PENGELOLAAN KEUANGAN PEMERINTAH DAERAH

This study was conducted to analyze the bureaucratic reform and accountability of local government financial management. This study aims to analyze the role of bureaucratic reform and the impact of the practice of following up on audit recommendations by local governments in improving the accountability of local government financial management. The research sample is the report on the results of the audit (LHA) of LKPD in Indonesia for the period 2016 and 2017 and the results of the audit of the LKPD in 2015 to obtain data in the form of total state losses found by BPK as the basis for recommendations for improvement that must be carried out in the following year (and is the basis for measuring actions taken by the State Audit Board). further carried out by each local government). This study also collected IRB data for 2016 and 2017. For the first hypothesis, which examines the effect of IRB on audit findings, only the 2nd and 3rd models are supported, namely the model with the dependent variable being the number of findings of SPI weaknesses (JT2) and the number of findings of SPI weaknesses related to fixed assets (ICWAsset), while the first model with the dependent variable of the natural logarithm of the rupiah value of audit findings (LnHA) is not supported. For the second hypothesis, which examines the effect of the percentage of follow-up recommendations (TL) on audit findings, both models 1, 2, and 3 are not supported.

The influence of Smart City development in Romania on the financial management of local authorities

"Smart City's role is to improve urban life through sustainable integrated solutions and address city-specific challenges in various policy areas, such as energy, mobility and transport, and ICT, which must also be effectively implemented. Smart City relies on the use of information and communication technology (ICT) to sustainably develop urban spaces and limit the negative effects of urbanization. Globally, there is a trend to promote the concept of Smart City as a solution for urban areas in efficient and sustainable development, without affecting the environment. In Romania, Smart City has become a concern for local, urban and rural administrations, in the context in which at European level there are non-reimbursable funds for such projects. In Romania, Smart City and the projects that have the role of making an administration to be Smart are in their infancy. The purpose of this article is to highlight the advantages of Smart City development in urban administrations in Romania and the influence on the financial management of local authorities. Urban spaces in Romania face certain difficulties, both in terms of development (economic, infrastructure), but also pollution. The paper will highlight the stage of development of Smart City and how it influences the financial management of local governments, where such projects are implemented. The paper is descriptive, by correlating the information highlighted in the literature and data on projects submitted for Smart City by urban areas in Romania. The study analyzes the projects submitted by the main urban areas in Romania in 2020 for their development as Smart City, according to the website https://steinbeis-romania.com, thus highlighting the concern of local governments for their development as Smart City. "

Non-Cash Transaction Policy: The Steps for Cashless Management in Central Java Province

Purpose - This study aims to understand the implementation steps of the non-cash transaction policy in the Central Java Provincial Government, with Edward III's (1980) "Policy Implementation Theory" as a tool for analyzing the supporting and inhibiting factors of implementation. Design/methodology/approach—This research uses a qualitative approach. Data was collected through in-depth interviews and document collection regarding the application of non-cash transactions. The informants in this study involved 2 participants from the Regional Financial and Asset Management Agency of Central Java Province. These participants are policymakers and technical implementers who apply non-cash transactions to the research object. Findings - Result Research shows that implementing the non-cash transaction policy has been going well from the perspective of the executor's understanding of non-cash management. The Central Java Provincial Government takes steps in policy implementation: preparation, implementation, and control. Supporting factors in implementation come from communication and financial resources. Meanwhile, human resources, physical resources, disposition and bureaucracy need to be evaluated because they can potentially hinder implementation in the Central Java Provincial Government. Practical implications—The implementation of the non-cash transaction policy found supporting factors and obstacles. This is useful in improving the quality of local government financial management so that implementation is not limited to fulfilling obligations but also has uses. Originality/value - Implementing non-cash transactions is necessary for Regional Governments because it brings many benefits in the context of realizing good governance. This study seeks to analyze the application of non-cash transactions and identify the causes of the low application of non-cash transactions. This study reveals the facts related to implementing the non-cash transaction policy so that it can provide input to the government in implementing regional financial management. Keywords- Cashless, Public Policy; Financial Administration; Edwards III Theory Paper type- Case study

Study of non-cash transactions, integrity and competence effect on the financial management performance of west sulawesi local government

This research aims to study the effect of the implementation of non-cash transactions, integrity and competence simultaneously and partially on financial management performance in the West Sulawesi Provincial Government. This research used survey research. The research was conducted in the West Sulawesi Provincial Government. The research time was conducted from July 2021 to August 2021. The research population is all employees in the West Sulawesi Provincial Government spread across 42 Regional work unit (Satuan kerja perangkat daerah, SKPD). Determination of samples in this study by purposive sampling with the criteria of the Financial Management Officer (Pejabat Penatausaha Keuangan, PPK) and the Treasurer. The test results showed that partially the variable application of non-cash transactions, integrity and competence had a significant positive effect on financial management performance in the West Sulawesi Provincial Government. The simultaneous variable application of non-cash transactions, integrity and competence has a significant positive effect on the performance of financial management in the West Sulawesi Provincial Government. Variabel competence has the most dominant influence on financial management performance in the West Sulawesi Provincial Government. The research implies that increasing knowledge, skill, and attitude of civil servant are able to enhance the efficient of financial management of local government.

Improving Regional Financial Management through Administration of Regional Property and Financial Reporting on Regional Assets

Local government financial management mechanisms have continued to undergo significant changes in recent years. This article seeks to reveal the process and analysis of academic activities to support the performance of the regional financial and asset management office as a form of assistance and understanding of regional financial and asset management as a form of knowledge. This activity was carried out at the Regional Financial and Asset Management Agency of Central Sulawesi Province, starting with the provision of a pre-test before socialization or presentation of material then interactive discussions between the service team and service participants. Participants were given a post-test afterwards. The ultimate goal of this activity is the transfer of knowledge possessed by the service team in the field of accounting, especially accounting for fixed assets in the field of government accounting, to managers of regional property and regional assets of Central Sulawesi Province. It is hoped that the government team can carry out better administration, bookkeeping and preparation of financial reports. Empirical analysis is also presented in this research.

Management of Assets and Follow-Up the Findings of the Audit Board to Increase Financial Performance of Local Governments

The dependence of most local governments on the central government in funding regional spending is still a problem in Indonesia. Although the regional autonomy system has been implemented, including in terms of regional financial management, local governments still have difficulty in implementing efficient regional spending. This effort is done so that the financial management of local governments can be implemented efficiently. This research aims to find out the impact of the size of local governments, audit findings and follow-up of the recommendations of The Audit Board of the Republic of Indonesia on the financial performance of local governments This study uses a quantitative approach by testing hypotheses using multiple regression analysis methods in cross sectional data. The study used data from local government performance reports in 2019. The study analyses 406 district/city governments report in Indonesia. The results showed that: 1) There is a positive and significant influence on the size of local governments on the financial performance of local governments in Indonesia; 2) There are negative and significant influences on the findings of examination of the financial performance of local governments in Indonesia; 3) There is a positive and significant influence on follow-up recommendations of examination results on the financial performance of local governments in Indonesia. The results implication is that efficiency of local government asset and follow-up of audit findings of the Audit Board Republic of Indonesia can improve the financial performance of local governments.