Enhancing Value For Money Performance In Local Government Organizations: The Role Of Public Financial Accountability And Internal Control

Authors

  • Bambang Jatmiko Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia
  • Berliana Sofia Haya Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia
  • Tiyas Puji Utami Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

DOI:

https://doi.org/10.22219/jrak.v12i2.22143

Keywords:

Internal Control, Local Government Organizations, Public Financial Accountability, Value for Money Performance

Abstract

This study examines the role of public financial accountability and internal control implementation on the performance of value for money of Local Government Organizations (LGOs). This study also investigates the role of internal control on public financial accountability and the intervening role of public financial accountability. This study was conducted at the Yogyakarta City Government from October 1 to November 15, 2021, using a survey method. Questionnaire responses obtained were 121, coming from 30 LGOs. The partial least square (PLS) technique was then employed to test the hypotheses. The results revealed that the public financial accountability and internal control implementation were directly associated with the value for money performance of LGOs. Additionally, the internal control implementation was positively associated with public financial accountability, while the public financial accountability played a role as a partial intervening variable (p-value = 0.012). It was also found that the variable with the greatest significant effect on value for money performance was an internal control (p-value = 0.00). The results of this study provide critical practical implications to be considered by local governments to improve their value for money performance through strengthening accounting policy aspects.

Downloads

Download data is not yet available.

References

Abdillah, W., & Hartono, J. (2015). Partial Least Square (PLS): Alternatif structural equation modeling (SEM) dalam penelitian bisnis. Yogyakarta: Penerbit Andi.

Abdullah, A., & Arisanti, H. (2010). Pengaruh budaya organisasi, komitmen organisasi dan akuntabilitas publik terhadap kinerja organisasi pada Kantor Wilayah Direktorat Jenderal Perbendaharaan Bengkulu. Jurnal Ekonomi dan Bisnis, 9(2), 1-16.

Abdullah, S. (2004). Akuntansi sektor publik akuntansi keuangan daerah. KINERJA, 8(2), 209-210. https://doi.org/10.24002/kinerja.v8i2.898

Abdullahi, M. H., Abdullahi, M., & Muturi, W. (2016). Effect of internal control systems on financial performance of higher education institutions in Puntland. International Journal of Economics, Commerce and Management, 4(12), 762-780. https://doi.org/10.24002/kinerja.v8i2.898

Adeyemi, F. K., & Olarewaju, O. M. (2018). Internal control system and financial accountability: An investigation Of Nigerian South-Western public sector. Acta Universitatis Danubius. Œconomica, 15(1), 134-150.

Adi, I. W. A., Suardikha, I. M. S., & Putri, I. (2017). Pengaruh komitmen organisasi, budaya organisasi dan kepuasan pengguna SIMDA pada kinerja Satuan Kerja Perangkat Daerah. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 6(6), 2587-2616.

Ahyaruddin, M., & Akbar, R. (2018). Indonesian Local Government’s Accountability and Performance: The Isomorphism Institutional Perspective. Journal of Accounting and Investment, 1(2), 1-11. https://doi.org/10.18196/jai.190187

Akbar, R., Pilcher, R., & Perrin, B. (2012). Performance measurement in Indonesia: the case of local government. Pacific Accounting Review, 24(3), 262-291. https://doi.org/10.1108/01140581211283878

Akparep, J. Y., Jengre, E., & Mogre, A. A. (2019). The influence of leadership style on organizational performance at TumaKavi Development Association. Tamale: Northern Region of Ghana. https://doi.org/10.4236/ojl.2019.81001

Al Khajeh, E. H. (2018). Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 2018, 1-10. https://doi.org/10.5171/2018.687849

Al-Thuneibat, A. A., Al-Rehaily, A. S., & Basodan, Y. A. (2015). The impact of internal control requirements on profitability of Saudi shareholding companies. International Journal of Commerce and Management, 25(2), 196-217. https://doi.org/10.1108/IJCOMA-04-2013-0033

Altrichter, H., & Kemethofer, D. (2015). Does accountability pressure through school inspections promote school improvement? School effectiveness and school improvement, 26(1), 32-56. https://doi.org/10.1080/09243453.2014.927369

Amelia, I., Desmiyawati, & Azlina, N. (2014). Pengaruh Good Governance, Pengendalian Intern, Dan Budaya Organisasi terhadap Kinerja Pemerintah Daerah. JOM FEKON, 1(2), 1-15.

Ansori, R. (2020). Kecewa Kinerja OPD Pemkot Yogyakarta Masih Rendah. Retrieved from Kecewa Kinerja OPD Pemkot Yogyakarta Masih Rendah. Retrieved from https://www.tagar.id/kecewa-kinerja-opd-pemkot-yogyakarta-masih-rendah.

Aprilia N., Nur DP, E., & Rofika. (2016). Pengaruh Good Corporate Governance, Budaya Organisasi dan Pengedalian Intern Terhadap Kinerja Organisasi Dengan Akuntabilitas Publik sebagai Variabel Intervening (Survey Terhadap Rumah Sakit Di Kota Padang). (Doctoral Dissertation). Universitas Riau, Retrieved from https://media.neliti.com/media/publications/127717-ID-pengaruh-good-corporate-governance-buday.pdf

Arifah, D. A. (2012). Praktek Teori Agensi pada Entitas Publik dan Non Publik. Jurnal Prestasi, 9(1), 85-95.

Atarwaman, R. J. (2019). Pengaruh Budaya Organisasi, Komitmen Organisasi, Dan Akuntabilitas Publik Terhadap Kinerja Satuan Kerja Perangkat Daerah (SKPD) Kota Ambon. Soso-Q: Jurnal Manajemen, 5(2), 20-31.

Bastian, I. (2016). Akuntansi Kecamatan dan Desa. Jakarta: Erlangga.

Chen, H., Yang, D., Zhang, J. H., & Zhou, H. (2020). Internal controls, risk management, and cash holdings. Journal of Corporate Finance, 64, 101695. https://doi.org/10.1016/j.jcorpfin.2020.101695

Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information systems research, 14(2), 189-217. https://doi.org/10.1287/isre.14.2.189.16018

COSO (Committee of Sponsoring Organisations of the Treadway Commission). (2013). Internal Control-Integrated Framework. Durham: American Institute of Certified Public Accountants (AICPA).

Dahlan, F., & Madjodjo, F. (2020). Pengaruh komitmen organisasi dan budaya organisasi terhadap kinerja Organisasi Perangkat Daerah Kota Tidore Kepulauan. Indonesia Accounting Journal, 2(2), 196-203. https://doi.org/10.32400/iaj.31212

Dewi, Y. A., Nasfi, N., & Yuliza, M. (2021). Internal Control System, Utilization of Accounting Information Technology, on Village Fund Management Accountability. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(1), 384-397. https://doi.org/10.29040/ijebar.v5i1.2040

Duh, R.-R., Chen, K.-T., Lin, R.-C., & Kuo, L.-C. (2014). Do internal controls improve operating efficiency of universities? Annals of Operations Research, 221(1), 173-195.

Erawati, T., & Winangsit, W. (2019). Pengaruh Pemanfaatan Teknologi Informasi, Pengendalian Internal dan Komitmen Organisasi Terhadap Kinerja Organisasi (Studi Empiris Satuan Kerja Perangkat Daerah Kabupaten Gunungkidul). Jurnal Akuntansi Dewantara, 1(1), 93-102. doi:10.24964/japd.v1i1.803

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis. New Jersey: Upper Saddle River, NJ: Pearson Prentice Hall.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications. https://doi.org/10.1007/978-3-030-80519-7

Halim, A., & Abdullah, S. (2006). Hubungan dan masalah keagenan di pemerintahan daerah: sebuah peluang penelitian anggaran dan akuntansi. Jurnal Akuntansi Pemerintah, 2(1), 53-64.

Harun, A., & Shariyani. (2019). Pemanfaatan Google Drive Dalam Penilaian Mandiri Pelaksanaan Reformasi Birokrasi (PMPRB) di Pemerintah Provinsi Kepulauan Riau. Jurnal Trias Politika, 3(1), 22-34. https://doi.org/10.33373/jtp.v3i1.2408

Haryono, S. (2016). Metode SEM untuk penelitian manajemen dengan AMOS 22.00, LISREL 8.80 dan Smart PLS 3.0. Jakarta: Badan Penerbit PT. Intermedia Personalia Utama.

Kusumayanti, K., Ratnasari, S. L., & Hakim, L. (2020). Pengaruh Motivasi Kerja, Disiplin Kerja, Lingkungan Kerja, Dan Gaya Kepemimpinan Terhadap Kinerja Pegawai Negeri Sipil Dinas Perindustrian Dan Perdagangan Daerah Pemerintah Kota Batam. BENING, 7(2), 178-192. https://doi.org/10.51877/mnjm.v2i2.121

Laras, T., Santana, R. M., Jatmiko, B., & Utami, T. P. (2021). Testing the Mediating Role of Career Development in Affecting Intellectual Capital and Organizational Culture on Employee Performance: Evidence of Local Banks in Yogyakarta, Indonesia. Journal of Accounting and Investment, 23(1), 16-32. doi:10.18196/jai.v23i1.12694

Manggis, I. W., Yuesti, A., & Sapta, I. K. S. (2018). The Effect of Career Development and Organizational Culture to Employee Performance with Motivation of Work as Intervening Variable in Cooperation in Denpasar Village. International Journal of Contemporary Research and Review, 9(07), 20901-20916. doi:10.15520/ijcrr/2018/9/07/553

Mardiasmo. (2016). Akuntansi Sektor Publik. Yogyakarta: Penerbit Andi.

Maria, E., & Halim, A. (2021). E-government dan korupsi: studi di pemerintah daerah, indonesia dari perspektif teori keagenan. EKUITAS (Jurnal Ekonomi dan Keuangan), 5(1), 40-58.

Nawawi, A., & Salin, A. S. A. P. (2018). Internal control and employees’ occupational fraud on expenditure claims. Journal of Financial Crime, 25(3), 891-906. https://doi.org/10.1108/jfc-07-2017-0067

Novatiani, A., Kusumah, R. W. R., & Vabiani, D. P. (2019). Pengaruh Transparansi dan Akuntabilitas Terhadap Kinerja Instansi Pemerintah. Jurnal Ilmu Manajemen dan Bisnis, 10(1), 51-62. https://doi.org/10.17509/jimb.v10i1.15983

Noviyana, R. A., & Pratolo, S. (2018). Pengaruh Sistem Pengendalian Intern dan Motivasi Kerja Terhadap Kinerja Instansi Pemerintah dengan Akuntabilitas Publik Sebagai Variabel Intervening: Studi pada Organisasi Perangkat Daerah Kabupaten Klaten. Reviu Akuntansi Dan Bisnis Indonesia, 2(2), 129-143. https://doi.org/10.18196/rab.020227

Pratolo, S. (2022). Akuntansi di Organisasi Sektor Publik. Yogyakarta: LP3M UMY.

Pratolo, S., Sofyani, H., & Anwar, M. (2020). Performance-based budgeting implementation in higher education institutions: Determinants and impact on quality. Cogent Business & Management, 7(1), 1786315. https://doi.org/10.1080/23311975.2020.1786315

Putra, D. (2013). Pengaruh akuntabilitas publik dan kejelasan sasaran anggaran terhadap kinerja manajerial Satuan kerja perangkat daerah (Studi Empiris pada Satuan Kerja Perangkat Daerah Kota Padang). Jurnal Akuntansi, 1(1), 1-23.

Putri, G. Y. (2013). Pengaruh Komitmen Organisasi Dan Sistem Pengendalian Intren Pemerintah (SPIP) Terhadap Kinerja Manajerial SKPD (Studi Empiris pada Satuan Kerja Perangkat Daerah Kota Padang). Jurnal Akuntansi, 1(1)1,23.

Ritonga, I. T. (2020). Public accounting and business accounting: two different upstream. Journal of Accounting and Investment, 21(3), 401-416. https://doi.org/10.18196/jai.2103156

Sayuti, S., Majid, J., & Juardi, S. S. (2018). Perwujudan Nilai Transparansi, Akuntabilitas dan Konsep Value for Money dalam Pengelolaan Akuntansi Keuangan Sektor Publik. ATESTASI: Jurnal Ilmiah Akuntansi, 1(1), 16-28. https://doi.org/10.33096/atestasi.v1i1.39

Setiawan, H. E., & Safri, M. (2016). Analisis pengaruh akuntabilitas publik, transparansi publik dan pengawasan terhadap kinerja satuan kerja perangkat daerah di Kabupaten Bungo. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 4(1), 51-72. https://doi.org/10.22437/ppd.v4i1.3533

Sofyani, H., & Ardiyanto, I. (2022). Determinan Kinerja Manajerial Pemerintah Desa Di Kabupaten Bantul. Jurnal Akademi Akuntansi, 5(2), 149-165. https://doi.org/10.22219/jaa.v5i2.18424

Sofyani, H., Abu Hasan, H., & Saleh, Z. (2022). Internal control implementation in higher education institutions: determinants, obstacles and contributions toward governance practices and fraud mitigation. Journal of Financial Crime, 29(1), 141–158. https://doi.org/10.1108/JFC-12-2020-0246

Sofyani, H., Akbar, R., & Ferrer, R. C. (2018). 20 years of performance measurement system (PMS) implementation in Indonesian local governments: Why is their performance still poor? Asian Journal of Business and Accounting, 11(1), 151-184. https://doi.org/10.22452/ajba.vol11no1.6

Sofyani, H., Pratolo, S., & Saleh, Z. (2022). Do accountability and transparency promote community trust? Evidence from village government in Indonesia. Journal of Accounting & Organizational Change, 18(3), 397-418. https://doi.org/10.1108/JAOC-06-2020-0070

Susanti, I. (2014). Pengaruh good governance, pemanfaatan teknologi informasi dan pengendalian intern terhadap kinerja organisasi (studi pada skpd kabupaten siak). Riau University.

Ulum, I., & Sofyani, H. (2016). Akuntansi (Sektor) Publik. Yogyakarta: Aditya Media.

Utami, F., & Ganika, G. (2021). The effect of government internal control system on regional financial accountability. Economic Education Analysis Journal, 10(2), 326-335.

Yudhasena, I. G. I., & Putri, I. G. A. D. (2019). Pengaruh Good Government Governance, Pengendalian Intern, dan Budaya Organisasi Terhadap Kinerja Organisasi Perangkat Daerah (OPD). E-Jurnal Akuntansi, 28(1), 434-464. https://doi.org/10.24843/EJA.2019.v28.i01.p17

Downloads

Published

2022-08-20