Effectiveness Level Analysis and Budget Efficiencyat the Regional Financial and Asset Management Agency (BPKAD) Surakarta City in 2019-2021

1Ivanna Zerlinda, 2Suyatmin Waksito

Universitas Muhammadiyah Surakarta,

Abstract: Regional Government Financial Reports (LKPD) are media for local governments to account for their financial performance to the public. The Regional Government Financial Report (LKPD) is examined annually and receives an assessment in the form of an Opinion from the Financial Supervisory Agency (BPK), when the BPK provides Unqualified Opinion (WTP) on Regional Government Financial Reports. Regional financial management is carried out through a system that is integrated in the cycle of the Regional Revenue and Expenditure Budget (APBD). The efficiency and effectiveness of the Surakarta city government's financial performance can be calculated and analyzed using ratios and data obtained from the Surakarta city government's Budget Realization Report (LRA), regarding the calculation of the level of effectiveness and efficiency of the 2019-2021 budget realization report. the Surakarta City government for the 2019 and 2021 fiscal years have not yet reached the target but are included in the effective category because they are at the 90%-100 rating, while the efficient level of the Surakarta City government for the 20192020 fiscal year is considered capable of saving the spending budget quite well because there are no significant figures. exceed budget

Keywords: Effectiveness, Efficiency, Regional Revenue and Expenditure Budget

I. INTRODUCTION

In carrying out Regional Autonomy, Regional Governments are required to run the wheels of government in an effective and efficient manner, so as to be able to encourage the community to play a role in carrying out development and increase equity so that they can develop all the potential possessed by each region. This high demand for performance and accountability for regional performance leads to the need for measuring the performance of local governments so that they are able to build good performance measures [1]

Regional Government Financial Reports (LKPD) are media for local governments to account for their financial performance to the public. The Regional Government Financial Report (LKPD) is examined annually and receives an assessment in the form of an Opinion from the Financial Supervisory Agency (BPK), when the BPK provides Unqualified Opinion (WTP) on Regional Government Financial Statements, it can be said that the financial statements of a local government entity presented and disclosed in a fair and quality manner.

Based on observations by the Surakarta City Government in managing its regional finances, it always gets Unqualified Opinion (WTP) results from the Ministry of Finance (Kemenkeu) for the 11th (eleventh) time in a row since 2010. It is still a record of researchers that even though the Surakarta City Government has received WTP opinion, however, there are still a number of notes that need to be considered by the ranks of the Surakarta City Government, this was conveyed by the BPK of Central Java Province Ayub Amali at the time of handing over the LHP for the Surakarta City LKPD for the 2018 Fiscal Year [2]

Some of these notes relate to Intangible Assets on the Balance Sheet which have not yet been capitalized and the management of Social Assistance Expenditures which, although they have been delivered to beneficiaries, have not been able to be absorbed because they have only been disbursed near the end of the fiscal year. The BPK also found noncompliance with laws and regulations related to the management of BOS funds. This will be studied further related to budget efficiency in the Surakarta City Government for the management of existing funds from the Surakarta City Government.