Government Internal Control System and Local Government Administration Performance: Evidence from Indonesian Local Governments

Winarna, Jaka; Muhtar, Muhtar; Sutaryo, Sutaryo; Amidjaya, Prihatnolo Gandhi

doi:10.35551/pfq_2021_s_2_5

Cited by 10 publications

(14 citation statements)

References 11 publications

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“…From accounting perspective, local governments have the authority to manage the allocation of the budget for the sake of human development (Prabowo, Leung & Guthrie, 2017). Further, the governance factor specifically the role of government supervision agencies is also very crucial (Winarna et al, 2021). This factor matters in determining local government accountability (Nurdiono & Gamayuni, 2018).…”

Section: Introductionmentioning

confidence: 99%

Local Government Capital Expenditure, Internal Supervision, Wealth and Human Development: Evidence from Indonesia

Saragih

2022

Journal of Accounting and Business Dynamics

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This study examines the influence of local government capital expenditures, internal supervision, and wealth on human development in Indonesian local governments. Using secondary data from the authorized government institutions from 2017 to 2019, a set of unbalanced panel data with total 1,437 observations was generated. Using panel data regression analysis, this study discovers that local governments in Java, Bali and Sumatra have a better human development achievement, followed by Kalimantan, Sulawesi, and Eastern Indonesia. City local governments also have a higher average of human development index achievement than regency local governments. Further, we find that local government capital expenditures and internal supervision positively affect human development, while local government wealth has insignificant effect on human development. Our findings imply that local governments are suggested to increase the amount of capital expenditures for infrastructure development, especially for local governments that are relatively underdeveloped in Indonesia.

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Section: Introductionmentioning

confidence: 99%

Local Government Capital Expenditure, Internal Supervision, Wealth and Human Development: Evidence from Indonesia

Saragih

2022

Journal of Accounting and Business Dynamics

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“…The quality of a local government public service can be measured by how well the organizers of government agencies carry out their duties and authority to the community and the level of community satisfaction with services provided by local and central governments. Service quality is also essential in implementing a public service in Indonesia (Hadian, 2017;Martani et al, 2014) A poor public service reputation is permanently attached to the reputation of the Indonesian government's public service providers; it can be concluded that local government public services are vital for the community, so measurement is needed to measure the quality of public services (McLaren et al, 2019;Winarna et al, 2021a). The practice of maladministration in government public services does not only lead to corruption and bribery, but this practice can hinder government investment and development, especially in the area of local government.…”

Section: Introductionmentioning

confidence: 99%

“…to be much more leverage(Dba et al, 2021;Steven DeSimone & Sarens, 2019)If the maturity level is high, it can be said that the government can conduct a more comprehensive and more accurate study(Hamid, 2013;Winarna et al, 2021a). In conclusion, if the SPIP maturity level is an internal audit of the Makassar local government, it can be a success for the local government to implement accrual-based Government Accounting Standards (ASP) so that the output is expected to have a positive impact on public services (Dba et al, 2021;Winarna et al, 2021a)…”

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confidence: 99%

“…2021; Kolawole, 2020; Lamba et al, 2020; Okolo et al, 2018; Rinaldi et al, 2020; Saragih, 2022; Shafuda & De, 2020).SPIP maturity is based on the results of the individual parameter significant test (t test) of 0.002, which explains that the SPIP maturity variable affects the Minimum Service System (SPM) with a significant error of 1% (*** p < .01) with the high score of the SPIP maturity level can indicate the ability of local governments to manage financial resources used to meet public needs (Mukhlis et al, 2021; Siburian, 2020; Sucitra & Supriatna, 2020; Sutaryo & Sinaga, 2018). Internal control is possible to achieve optimal performance improvement and become accountable(Kiabel, 2012;Lestari et al, 2019;Winarna et al, 2021b). The role of SPIP in creating better national development lies in how reliable SPIP is, its compliance with regulations, conformity to SAP so that the government can manage people's financial resources, and the programs outlined in the budget are running as expected.…”

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confidence: 99%

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Quality of Public Services in Local Governments in Indonesia : A Study of Capital Expenditures and Government Internal Control Systems

2022

JEFMS

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Regional autonomy is a policy the central government gives to local governments to regulate their regions. One of these authority policies is public service. Public services are a series of activities in the form of services following the law's mandate in the form of goods and services to fulfill general needs for the welfare of society. Public services for the community come from the realization of local government budgets with an internal control mechanism to regulate the fulfillment of public services. Increased budget realization can support regional infrastructure to provide better public services. Capital expenditure is not a service; if it is used as a service, it is necessary to have a supervisory mechanism such as an internal supervisor of the local government to support the fulfillment of better public services and improve the welfare of the community. The increase in capital expenditure, where the output is assets, is the most tangible thing that is felt by the community; it is necessary to have internal control within the local government, namely the maturity of the SPIP to run effectively and efficiently. This study examines the effect of capital expenditure and SPIP maturity on public services. The sample and population used in this study were 514 local governments with up to 1887 all local governments in Indonesia during 2016 – 2019. The results of this study are that capital expenditure variables have a positive effect on public services, and SPIP maturity has a positive effect on public services.

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“…These systems start from introducing concepts and guidelines to measuring the implementation success with methodologies that measure the government's internal control system's role in supporting public finance administration's accountability. Winarna, Muhtar, Sutaryo, and Amidjaya (2021) examined the influence of the local government's internal control system on the performance of government administration. They proved that the control environment, risk assessment, information, and communication positively affect the performance of local government administration.…”

Section: Introductionmentioning

confidence: 99%

Maturity of Internal Control System, the Capability of Internal Auditors, and Performance Accountability in Local Governments

Rahmasari¹,

Setiawan

2022

JTAKEN

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While research on the accountability of local government performance has grown significantly, little attention has been paid to the critical success factors, particularly the role of the maturity of the government's internal control system and the capability of the government's internal auditors. This study examines the effect of the maturity of the government's internal control system and the capability of the government's internal auditors on the accountability of local government performance, with control variables, namely audit opinion, local own-source revenues, and proliferation status. It aims to fill the gap using the Indonesian case. This study uses secondary data with sample selection using the purposive sampling method. Local governments in Indonesia from 2017 to 2019 are used as samples. The results of this study indicate that the government's internal control system's maturity, internal auditors' capability, and audit opinions positively affect local governments' performance accountability. In contrast, local own-source revenues and proliferation status negatively impact local governments' performance accountability. The implication of this study is to increase the accountability of local government's performance and continue to improve the maturity of the government's internal control system to achieve at least level 3 (Integrated). The capability of internal government auditors needs to achieve at least level 3 (Defined); thereby, the internal control function of local governments can be optimal.

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Government Internal Control System and Local Government Administration Performance: Evidence from Indonesian Local Governments

Cited by 10 publications

References 11 publications

Local Government Capital Expenditure, Internal Supervision, Wealth and Human Development: Evidence from Indonesia

Local Government Capital Expenditure, Internal Supervision, Wealth and Human Development: Evidence from Indonesia

Quality of Public Services in Local Governments in Indonesia : A Study of Capital Expenditures and Government Internal Control Systems

Maturity of Internal Control System, the Capability of Internal Auditors, and Performance Accountability in Local Governments

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