Local Government Financial Performance Research Articles

Pendapatan Asli Daerah dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah

This study aims to determine the effect of PAD and Balancing Funds on the financial performance of local governments. This research method is descriptive quantitative. This research utilizes the Non-Probability Sampling method as well as the saturated sampling technique. The type of data used is secondary data obtained from the 2016-2020 Kediri City Government Budget Realization Report. The data were analyzed using multiple linear regression analysis with the help of SPSS 25 software. The results showed that PAD had a positive effect on local government financial performance. Meanwhile, the Balancing Fund has no effect. However, PAD and the Balancing Fund together have a significant effect on the local government's financial performance. In conclusion, the higher the PAD, the better the local government's financial performance, and the amount of balancing funds does not affect the regional government's financial performance. However, on the other hand, PAD and the Balancing Fund together have a significant impact on the local government's financial performance.
 Keywords: Balancing Fund, Regional Financial Performance, Regional Original Income

Factors that Affect the Local Government Financial Performance (Study on District/City Governments in Jambi Province)

Factors that Affect the Local Government Financial Performance (Study on District/City Governments in Jambi Province)

PAD, Dana Perimbangan, Belanja Modal, SILPA dan Kinerja Keuangan Pemerintah Daerah di Jawa Timur

The purpose of the study was to examine the effect of local revenue, balancing funds, capital expenditures and SILPA on the financial performance of local governments as proxied through financial ratios in the form of efficiency ratios. A quantitative approach is used as an approach in this study. Saturated sample for sampling technique. The data analysis technique in this study was a panel data regression test. Based on the results of the T-test, financial performance cannot be affected by local revenue but financial performance can be significantly affected negatively by balancing funds and SILPA, and financial performance can be significantly affected positively by capital expenditures. 
 Keywords: PAD; Balancing Fund; Capital Expenditures; SILPA; Local Government Financial Performance.

Analisis Pengukuran Kinerja Berbasis Konsep Value For Money Pada Pemerintah Daerah Kabupaten Pekalongan

This study aims to determine the performance of the Pekalongan Regency Government in period 2017-2019 with value for money approach in economics, efficiency and effectiveness ratio. Based on the existing characteristics, this research included in descriptive quantitative research. The data analysis technique in this study uses the concept of value for money, namely assessing performance in terms of economics, efficiency, and effectiveness ratio based on local government financial performance each period. The results of the study stated that the performance of the Pekalongan Regency Government during the 2017-2019 period was categorized as economical because it produced a ratio of less than 100%. In terms of efficiency, the performance of the Pekalongan Regency Government for the 2017 is efficient, meanwhile in the 2018 and 2019 periods the performance has not been efficient because the ratio is above 100%. In terms of effectiveness, the performance of the Pekalongan Regency Government during the 2017-2019 period tends to be not optimal but has been quite effective with an annual ratio that is above the ratio of 90%.

Analisis Kinerja Keuangan Pemerintahan Dinas Lingkungan Hidup Berdasarkan Anggaran

This study aims into analyzing the financial performance of Local Governments it the environmental Service of import Sumatera Utara. A case study of employee operational expenditures by using independent ratio analysis. effectiveness ratio of Local revenue, efficiency ratio, and harmony ratio. based on the financial report of the government of the environment Office analysis techniques. the result of this study indicates that the financial performance of the North Sumatra environmental Service Government its into optimal.

Linking Computerized Accounting Information System adoption to Financial Performance in the Public Sector: The influence of Internal Control Systems

This study examines the how the adoption of computerised accounting information systems influence the financial performance of the public sector and then explore the mediating role of internal control system in the linkage between the drivers of CAIS adoption and financial performance of the public sector. Data was collected from the operators and controllers of CAIS of 227 local governments across the sixteen regions of Ghana using questionnaire as the main instrument. The structural equation modelling was employed to analyse the hypothesized relationships between the drivers of CAIS adoption and financial performance and the mediating role of internal control. The initial model specification considered sixteen measurement variables, but through the data reduction technique, factor analysis, four factors were identified as being the main determinants of CAIS adoption. Using these factors as exogenous constructs, it was found that, whiles cost of adopting CAIS and readiness to adopt CAIS significantly influence the financial performance of local government, CAIS complexities and data security cost and threat have no significant direct influence on financial performance. Also, internal control system mediates the relationship between CAIS complexities and financial performance, and then data security threat and cost, but internal control system does not mediate the relationship between cost of adopting CAIS and financial performance and then readiness to adopt CAIS and financial performance. On this basis, the study recommended interventions by government to improving technology adoption among local government such as ICT education, training, emphasis on strengthen internal controls and awareness creation programs among key controllers of the local government. Also, local government should consider CAIS technology on the basis of Software-as-a-service (SaaS), also known as cloud accounting in an attempt to deal with the cost of managing accounting information systems.

Analisis Laporan Ikhtisar Realisasi Anggaran Untuk Menilai Pencapaian Kinerja Keuangan Pada Kantor Pemerintahan Dinas Lingkungan Hidup Provinsi Sumatera Utara

Budget Realization Report is a report that describes the realization of income, expenditure and financing for a period. Financial performance is a performance measure that uses financial indicators. This study aims to assess the financial performance of the North Sumatra Province Environmental Service Government Office for the 2018-2021 period by using the analysis of the Revenue Budget Variance Analysis, the Decentralization Degree Ratio, the Effectiveness Ratio of Regional Original Revenue, the Regional Expenditure Efficiency Ratio, and the Regional Expenditure Harmony Ratio. This research method uses a quantitative descriptive approach. The analysis method is carried out by assessing or measuring local government financial performance which is measured based on: Income Variance Analysis, Decentralization Degree Ratio, Regional Expenditure Efficiency Ratio, Effectiveness Ratio of Regional Original Revenue, Regional Expenditure Harmony Ratio. The results of research on financial performance at the North Sumatra Province Environmental Service show that 1) Realization of the revenue budget in 2021 is unfavorable but is good if viewed from the whole during the 2018-2021 period. 2) from the Decentralization Degree, showing a ratio of 100%, it can be concluded that the ratio is classified as very good. 3) Regional Expenditure Financial Performance with an average percentage ratio of 90.15% which is on a less efficient interval scale. 4) The PAD Effectiveness Ratio is said to be effective with an average percentage ratio of 120.43% which is included in the very Effective criteria. 5) Shopping Harmony can be concluded that the average percentage ratio is 83,02%.

The Influence of the Age of Local Government on the Characteristics of Local Governments on the Financial Performance of Local Governments in North Maluku Province

The purpose of the study was to find out and obtain empirical evidence about the size of local governments, the level of wealth of local governments, the level of dependence on the central government, the age of local governments, capital expenditures, and the findings of BPK influence the financial performance of local governments. This study uses quantitative research methods with 11 research objects. The data analysis method used in this study was multiple linear regression analysis with purposive sampling as the sampling technique. The data analysis method used in this study is SPSS software version 22. The results show that the size of the local government, the level of local government wealth, the level of dependence on the central government, the age of the local government, capital expenditure, and BPK findings affect the financial performance of local governments.

FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA KEUANGAN PEMERINTAH DI PROVINSI ACEH

This research aims to analyze the factors that influence financial performance in Aceh Province. The data used in this study was sourced from the APBD budget realization report in 23 regency/cities in Aceh Province with period of 2010-2017, so that it has a balance panel data with a total of 184 observations. This research used static panel data by used the assumption is multiple regression analysis. The results of this research indicade that capital expenditure has positive and significant effect on financial permormance, general allocation fund have positive and significant effect on financial permormance, special allocation fund have negative and significant effect on financial permormance, economic growth has no effect significant and negative on financial permormance. And special autonomy fund has negative and significant effect on the financial performance of local government regency/cities in Aceh Province. The government should prioritize capital expenditure budget for the public interest, so that a more independent region is created

Local government financial performance: the effects of capital expenditure and intergovernmental revenue (The case of South Sumatra Province, Indonesia)

The main purpose of this study is to examine the effects of capital expenditure and intergovernmental revenue on local government financial performance in South Sumatra Province, Indonesia. The result is expected to extend the knowledge about local government financial performance and different relevance of financial performance factors. Data on seventeen districts/cities in South Sumatra Province during 2014-2018 were used to test the research model. The data is sourced from the financial reports of the district/city government of South Sumatra province and the Central Statistics Agency. The analytical results showed that capital expenditure is statistically positive and has a significant effect on the financial performance of local governments. Meanwhile, the intergovernmental revenue is negative and significantly affects local government financial performance. Future studies should consider various variables that may influence the financial performance of local governments. Future studies could also use different methodologies such as focus groups and interviews.

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.

DETERMINANTS OF LOCAL GOVERNMENT FINANCIAL PERFORMANCE IN CENTRAL JAVA 2019-2020

Local governments are required to be able to produce good financial performance so that the public is able to assess the performance of the government. This study aims to analyze the effect of the level of regional wealth, regional expenditure, and intergovernmental revenue on regional financial performance. This research data uses secondary data, namely the financial reports of local/municipal governments in Central Java for 2019-2020 which have been published at www.djpk.kemenkeu.go.id. The sampling method was carried out using purposive sampling technique. The sample in this study is 35 districts/cities in 2019-2020. The analytical model used is multiple linear regression analysis. The results of this study indicate that regional spending is a factor that affects the financial performance of local governments, while the level of regional wealth and intergovernmental revenue does not affect the financial performance of local governments.

The Impact of Digital and Green Innovation Strategy on Citizen Trust Towards Sustainable Financial Performance of Local Government

The unit of analysis in this study is local government data from Indonesia. The goal of this research is to identify the impact of fiscal stress and citizen trust on digital and green innovation strategies. This study also seeks to as certain the impact of digital and green innovation strategies on the impact of fiscal stress and citizen trust on sustainable financial performance. This research uses a descriptive verification method in conjunction with a quantitative approach. Path analysis is an analytical method used in the processing of statistical data. The research samples in this study are 148 Regional Apparatus Organizations (OPD) from East Java Province. The tests showed that fiscal pressure and citizen trust have a significant impact on digital and green innovation strategies. The test results also show that fiscal stress and digital and green innovation strategies have a significant effect on sustainable financial performance, whereas citizen trust has no significant effect on sustainable financial performance. Simultaneously, digital and green innovation strategy are critical for mitigating the impact of fiscal stress and increasing citizens' trust sustainable financial performance.

Financial Performance and Human Development with Control of Regional Characteristics

Regional autonomy is a policy given by the central government to local governments. The granting of this right to autonomy will encourage the acceleration of economic development in the community. Local governments begin to regulate all affairs in their regions independently so that they will be faster in overcoming all existing problems, including problems of community welfare. The implementation of regional autonomy also gives full rights to regional governments, including in financial management in the regions. Effective, efficient, transparent and responsible financial management is an important basis for improving the community's welfare. Of course, increasing the financial performance of local governments will also increase the human development index. The performance of the local government needs to be assessed as a form of our supervision to the government. This government performance assessment can be measured through the ratio of regional independence, effectiveness and efficiency. In addition, proper management of existing resources in the area will be able to improve the welfare of the community. The purpose of this study is to empirically test the ratio of independence, effectiveness, efficiency to the human development index by controlling regional characteristics in the form of capital expenditures, operational expenditures, government size, regional original income, and population. The amount of data in this study were 29 districts and 6 cities in Central Java during 2015-2019. The results of this study state that the independence ratio, effectiveness ratio, and efficiency ratio can have a significant effect on the human development index. In addition, the control variables for regional characteristics in the form of capital expenditures, operational expenditures, government size, and population are able to influence the human development index. Meanwhile, local revenue has no effect on the human development index.

Determinants of Government Characteristics and Audit Findings on Local Government Financial Performance

This study is based on the low success of local governments' financial performance in West Java Province, as evidenced by the fact that financial reports of local governments that receive unqualified opinions are still being found. The detection of numerous frauds in local governments is responsible for the majority of incidents of poor financial performance in local governments. Local government financial performance is related to local government size, dependence on central government, local spending, and audit findings. The purpose of this study was to examine the influence of local government characteristics and audit findings on the financial performance of local governments. Techniques analyzing data used regression model selection test with STATA version 16. This study builds on agency theory to develop a conceptual framework that connects local government size, dependence on central government, local expenditure, audit findings, and financial performance. The results of this study show that the size of local government, local spending has a significant effect on local government financial performance based on independence ratio and operating expenditure activity ratio, local government financial performance is unaffected by the dependence of central government or audit findings. Contributions to the West Java Provincial Government are required to be taken into account when making decisions and policies for the improved financial performance of local government.

Kinerja Keuangan Pemerintah Daerah: Pengukuran dan Manfaatnya

Abstract This paper describes the measurement of Local Government Financial Performance which is an important influence for the community in good government performance. The government is asked to report the results of financial reporting whether the government is working efficiently, effectively and openly. Keywords : Pengukuran Kinerja,Kinerja Keuangan Pemerintah

ANALISIS GROWTH RATIO, RASIO EFEKTIVITAS DAN EFISIENSI PADA BADAN PENGELOLA PAJAK DAN RETRIBUSI DAERAH KOTA MEDAN

The definition of the financial performance of a region is the level of achievement of a work result in the regional financial sector. Measurement of the financial performance of local governments is carried out by examining the regional financial performance ratios as seen through the Medan City Regional Budget Realization Report. The ratios to assess the financial performance of local governments used in this study include: Growth Ratios, Effectiveness and Efficiency Ratios. This study aims to analyze the level of growth ratios, effectiveness and efficiency during the 2016-2019 period to see the financial performance of the Medan City Government. In writing this thesis using quantitative descriptive analysis method. The results of this study indicate that the financial performance of the Medan City Government by using a Growth Ratio is still not optimal because there was a significant decrease in 2018 due to a decrease in regional income in Medan City. The financial performance of Medan City as measured by the 2016 Effectiveness Ratio is categorized as quite effective, namely 84.82%. In 2017, 2018, and 2019 were categorized as effective because they had a value above 90%, namely 2017 amounting to 99.15%, 2018 amounting to 92.88%, and in 2019 amounting to 90.56%. The financial performance of Medan City Government as measured by the Efficiency Ratio is categorized as very efficient because all results have a value below 60%. 2016 10.35%, 2017 8.55%, 2018 7.35%, 2019 9.61%.

Impact of Pandemic COVID-19 on Local Government’s Financial Performance in Indonesia

This research aims to know the impact of covid-19 on the performance of local government in Indonesia. This study uses qualitative approaches — sampling techniques with Stratified Random Sampling, based on the level of worst exposure to COVID-19. The results showed that the COVID-19 outbreak had no significant effect on the financial performance of local governments in Indonesia. The COVID-19 outbreak affects economic activity and people’s lives. The increase in growth was mainly driven by optimism and improvement from the health side. Although economic growth is expected to improve, public activity will not recover due to the limited availability of vaccines. Nevertheless, central and local governments are optimistic about future economic growth after mass and comprehensive vaccination, especially those affected by COVID-19.

The exploration of effect of financial performance to the public welfare

PurposeThe purpose of this paper is to test the effects of the financial performance of local governments to the level of welfare in 25 city/regency in South Sulawesi during 2009–2014.Design/methodology/approachThe financial performance is measured by the rate of local autonomy, the effectiveness of local own-source revenue, budget harmony and budget absorption, while the welfare society measured by the Human Development Index (HDI), unemployment and poverty level.FindingsThe regression analysis showed that the performance of region autonomy proved to increase the HDI over the next year and to reduce the poverty rate in two and three years ahead, however, has no correlation with the unemployment. The effectiveness of local own-source revenue can lower unemployment at two and three years ahead but failed to increase the HDI and to reduce poverty. Harmony of spending also neglected to raise the HDI and to reduce the level of unemployment although it can alleviate poverty. The level of budget absorption can improve HDI and reduce the unemployment at two and three years ahead, but failed to lower poverty. Expenditure harmony and budget absorption failed to moderate the relationship between local autonomy, the effectiveness of local own-source revenue and all measurement of welfare, while the expenditure harmony able to moderate the relationship between the effectiveness of local own-source revenue and HDI.Originality/valueTo the best of authors’ knowledge, no previous study has comprehensively studied the effects of level of regionality autonomy and effectivity of local own-source revenue to public welfare, and the moderation effect of Expenditure harmony, budget absorption in relationship between financial performance of local government to public welfare, especially in Indonesia.

Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum dan Belanja Daerah terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten/Kota di Provinsi Sumatera Barat

This study aims to examine the effect of local revenue, general allocation funds and regional spending on the financial performance of local governments. The sample used in this study were districts / cities of West Sumatra Province with 12 districts and 7 cities in West Sumatra. The data used in this study is the data on the realization of the District / City APBD in West Sumatra Province for the 2015-2018 fiscal year. This research uses descriptive statistical data analysis techniques, classical assumption test, multiple linear regression analysis, hypothesis testing and determination coefficient test. The results showed that the Regional Original Revenue, DAU and Regional Expenditures together had a significant positive effect on Regional Government Financial Performance. The test results are in accordance with the previous theory and hypothesis which states that PAD, DAU and Regional Expenditures have a significant positive effect on the financial performance of local governments.