scholarly journals Effectiveness, Efficiency and Growth Ratios on Financial Performance on Medan City Government

2018 ◽  
Author(s):  
Andysah Putera Utama Siahaan
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Local Governments ◽  
Municipal Government ◽  
City Government ◽  
Performance Ratio ◽  
Coefficient Of Determination ◽  
Efficiency Ratio ◽  
Growth Ratio ◽  
Effect Ratio

Regional autonomy (decentralization) is the regional authority to regulate and manage the interests of society at its initiative based on community aspiration and according to laws and regulation. One aspect of local government that must be regulated carefully is the financial management area. To analyze the performance of local governments in managing local finances can be done with the financial ratio analysis. The financial ratios used include the effectiveness ratios, efficiency ratio, growth ratio and the ratio of independence. The purpose of this study is to determine the financial performance of Medan. Government significant effect on the ratio of independence. The population in this study is Medan Realization Report Government Budget in which samples are taken four years (2010/2013 in months January to December). The variables studied include the ratio of effectiveness, efficiency ratio and growth ratio as independent variables as well as the ratio of independence as a dependent variable. The results of the regression analysis showed that the ratio of effectiveness, effectiveness ratio, and growth ratio is evident from the 0,000 probability value of <0.05. Partial, effectiveness ratio has significantly influenced the ratio of independence. However, efficiency ratio and growth rate do not significantly influence the ratio of independence (budget financial field municipal government). Analysis of the coefficient of determination (R2) shows the number of 0.452 or equal to 45.2% which changes the city government performance ratio by the effect ratio, efficiency ratio and growth ratio, while the remaining 54.8% are likely influenced by other variables not examined in this study there are activity ratio, debt service cover ratio.

scholarly journals Analisis Rasio Kinerja Keuangan Pemerintah Kota Medan Tahun 2014-2018

2021 ◽  
Vol 5 (2) ◽  
pp. 385
Author(s):  
Listya Devi Junaidi ◽  
Malesa Anan
Keyword(s):  
Financial Performance ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Capital Expenditure ◽  
City Government ◽  
Efficiency Ratio ◽  
Financial Independence ◽  
Regional Income ◽  
Growth Ratio ◽  
Public Money

It is very important to measure financial performance to assess the accountability of local governments in managing regional finances. Accountability is not just the ability to show how public money is spent but includes the ability to show how public money is spent efficiently, effectively and economically. The problem that is currently being faced by the Medan City Government is the fluctuating percentage of PAD achievement of the Medan City Government from 2014 – 2018. This study aims to determine the financial performance of Medan City measured based on the Regional Financial Independence Ratio Analysis, PAD Effectiveness Ratio, PAD Efficiency Ratio, Ratio Degree of Fiscal Decentralization, Growth Ratio and Harmony Ratio for the period 2014-2018. This study uses a quantitative descriptive method that is doing calculations on the financial data obtained to solve problems that occur by analyzing the ratio of regional financial independence, PAD effectiveness ratio, PAD efficiency ratio, fiscal decentralization degree ratio, growth ratio and compatibility ratio. The results of this study indicate that the financial performance of the Medan City Government is quite good from the aspect of independence with the "participatory" category, then from the aspect of the effectiveness ratio and efficiency ratio, it is still necessary to pay attention again because the average ratio results show the category of being less effective and less efficient. On the aspect of the degree of decentralization, the results show a "medium" category where the amount of PAD contributes quite well to regional income in Pemko Medan. The resulting compatibility ratio shows that the percentage of the use of APBD for operational expenditure is higher at 76.7% compared to capital expenditure, which is 23.2%. The results of the regional income and expenditure growth ratio in the Medan City Government have decreased and increased every year.

scholarly journals PERBANDINGAN KINERJA KEUANGAN PEMERINTAH KOTA LANGSA DENGAN PEMERINTAH KABUPATEN ACEH TIMUR

2021 ◽  
Vol 5 (1) ◽  
pp. 31-44
Author(s):  
Tuti Meutia
Keyword(s):  
Financial Performance ◽  
City Government ◽  
Efficiency Ratio ◽  
Growth Ratio ◽  
Regional Autonomy ◽  
Operating Expenditure ◽  
Expenditure Growth ◽  
Operating Expenditures ◽  
Lower Ratio ◽  
Observation Period

The purpose of this study was to analyze the comparison of the financial performance of the Langsa City government and East Aceh Regency. Financial performance is measured using five indicators, namely efficiency ratios, effectiveness ratios, compatibility ratios, growth ratios and radiant ratios. The results of the study stated that the financial efficiency ratio of Langsa City during the observation period was more efficient than that of East Aceh Regency. The financial effectiveness ratio of East Aceh Regency during the observation period was more effective than that of Langsa City. The Conformity Ratio measured by the value of the ratio of operating expenditures shows that Langsa City is high when compared to East Aceh District, the APBD and PAD growth ratios of the two regions are both in positive values. The operating expenditure growth ratio of Langsa City is better because it shows a lower ratio value compared to East Aceh District and the operating expenditure growth ratio of East Aceh Regency during the observation period is on average higher. This is evidenced by the value of the ratio of operating expenditures in East Aceh Regency on average each year above 10%. East Aceh District is more capable of self-financing government activities than Langsa City. The pattern of self-reliance is in the consultative and participatory categories. The value of the regional financial independence ratio of Langsa City is in the Instructive relationship pattern (Langsa City is not able to implement regional autonomy financially).

scholarly journals ANALYSIS OF VALUE FOR MONEY INCOME BUDGETS GOVERNMENT OF THE CITY OF MEDAN

2020 ◽  
Vol 4 (02) ◽  
pp. 115
Author(s):  
Hendra Hermain ◽  
Aqwa Naser Daulay ◽  
Debby Tamara Enre
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Local Governments ◽  
City Government ◽  
Research Approach ◽  
Regional Government ◽  
Value For Money ◽  
Regional Income ◽  
Analysis Technique ◽  
The City

Problems that often arise in the implementation of the Revenue Budget and Regional Expenditure is a waste of budget use done and not on target which should be felt by the community general. This study aims to determine the financial performance of the City Government The terrain is measured using the Value for Money method which consists of economical, efficiency, and effectiveness, and to find out whether financial performance calculated using the Value for Money method in accordance with the Ministry of Home Affairs No. 600,900-327 of 1996. This research was conducted at the Financial Management Agency and Regional Assets of Medan City. This research approach is in the form of an approach descriptive research that is conducted by collecting and presenting data received from the Medan City Government in the form of data on the amount of the Budget Regional Government Revenue and Expenditures Medan City Government thus provides the writerss to analyze and compare with existing theory. The data analysis technique used is descriptive analysis technique qualitative. The results showed that, the performance of Local Government Medan City regency during 2014-2018 has not been economical because it has an average economic ratio of 79% and included in the category of less economical. In terms of efficiency it is less efficient because it has an average efficiency ratio 99.71%. And in terms of effectiveness, the average effectiveness ratio is 82.49% which is in the quite effective category. The economic ratio of the Medan City Government has decreased, the ratio of regional spending efficiency has increased, the ratio the effectiveness of regional income has decreased, and the performance of the City Government The terrain measured using Value for Money has decreased. This happens due to the lack of maximum regional income, as evidenced by regional income that is not able to reach the target, and increased spending Regional Government of Medan City. Then it can be said that the Value for Money Ratio the Medan City Government has not met the standards based on the Minister of Home Affairs. No. 600,900-327 of 1996. Factors causing Value for Money have not been fulfilled standard because of the amount of realization of regional expenditure incurred, and also local governments are not able to achieve the revenue targets that have been determined by the Regional Government

scholarly journals Unraveling Authority of Coal Mining Management by the Regional Government and Its Implications for Regional Autonomy

2020 ◽  
Vol 1 (2) ◽  
pp. 223-242
Author(s):  
Dolot Alhasni Bakung
Keyword(s):  
Natural Resources ◽  
Coal Mining ◽  
Financial Management ◽  
Local Governments ◽  
Municipal Government ◽  
Provincial Government ◽  
City Government ◽  
Regional Government ◽  
Regional Autonomy ◽  
Regional Governments

The region has the authority to manage and regulate its territory independently based on the mandate of Article 18 paragraph (2) of the 1945 Constitution. One such authority is to manage natural resources in this case conducting coal mining. The management of coal mining under the Minerba Act places the district/city government in authority in its management. Meanwhile, the Local Government Law places the provincial government also in possession of this management authority. This gave birth to the dualism of regulation in terms of the authority to manage coal, giving rise to a contradiction between one rule and another. The problem in this study is First, how is the condition of coal mining management by local governments in the perspective of regional autonomy? Second, what are the implications of the current coal mining arrangements by the regional government? The results of the study showed that coal mining authority from the district/municipal government under the Minerba Act then was transferred to the provincial government based on the Regional Government Law was reasonable because of various problems that arose from the authority of the district/city government. However, this fact puts the authority of coal mining management in dualism and disharmony in its regulation. This dualism has implications for the disruption of the pattern of authority relations between the central and regional governments, financial management between the central and regional governments, and the division of supervisory authorities between the central and regional governments.

scholarly journals PERBANDINGAN KINERJA PEMERINTAH DAERAH DI INDONESIA

InFestasi ◽  
2019 ◽  
Vol 15 (1) ◽  
pp. 67
Author(s):  
Netty Nurhayati ◽  
Fahmi Rizani ◽  
Kadir
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Management ◽  
Sampling Technique ◽  
Nonparametric Test ◽  
City Government ◽  
City Governments ◽  
Growth Ratio ◽  
Government Administration ◽  
And Performance

<p><em>This study aims to compare the performance of  district / city governments  in Indonesia that obtain WTP and Non-WTP opinion from BPK RI for 2014-2016 period. The financial performance variables are measured by financial ratios (decentralization degree ratio, independence ratio, effectiveness ratio , growth ratio) and performance of local government administration are measured by performance evaluation score of local government administration (EKPPD score). Sampling method using purposive sampling with judgment sampling technique. The sample in this study 216 districts / cities, consisting of 108 districts / cities that obtain WTP opinion and 108 districts / cities that obtain Non-WTP opinion. Hypothesis testing using nonparametric test ‘Mann-Whitney U Test’. The results of this study, state that the financial performance of local government and performance of local government administration on district / city governments in Indonesia that obtain WTP opinion is significantly different and better than district / city governments in Indonesia that obtained Non-WTP opinion</em>. <em>This difference shows that district / city  government that obtain WTP opinion has proven to be better in terms of financial management and local government administration compared to those who obtain Non WTP opinions.</em><em></em></p>

scholarly journals Pengaruh Karakteristik Pemerintah Daerah dan Hasil Pemeriksaan Audit BPK Terhadap Kinerja Keuangan

2018 ◽  
Vol 1 (2) ◽  
pp. 51-55
Author(s):  
Annas L Mappiasse
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Management ◽  
Local Governments ◽  
Efficiency Ratio ◽  
Financial Report ◽  
Regional Autonomy ◽  
Public Financial Management ◽  
Dependence Level ◽  
Financial Management System

This research is related to the issue performance of local government in Indonesia, which needs to beimproved after the introduction of regional autonomy. Each of local governments need to establish and manage their own public financial management system. Many factors may affect the financial performance of local government. This study aimed to examine whether the characteristics of the local governments and the results of the audit can improve the financial performance of local government, as measured by the efficiency ratio. By using multiple regression analysis on 94 samples of local government financial report for year 2011, the study was able to prove that the dependence level and government expenditures have positive significant effect on financial performance. Legislative and the audit findings have negative significant effect on financial performance. While the size, wealth, and audit opinions do not affect the financial performance of thegovernment in the island of Java.

scholarly journals Poverty Reduction through Local Financial Performance: Case Study in East Nusa Tenggara Province, Indonesia

2020 ◽  
Vol 15 (2) ◽  
pp. 151
Author(s):  
Endang Mahpudin
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Local Governments ◽  
Poverty Reduction ◽  
Poverty Rate ◽  
Macroeconomic Performance ◽  
Panel Data Regression ◽  
Data Regression ◽  
High Level

The high level of poverty in East Nusa Tenggara Province, Indonesia, requires effort to be alleviated. For instance, there is a need to enhance the financial management performance of the locals. Therefore this study analyzes the contribution of local financial performance to the poverty rate. It uses panel data regression analysis involving 22 regencies and municipalities from 2015 to 2018. The results of the study showed that the local financial independency ratio in various regencies and municipalities has fewer contributions to the poverty rate. Local governments need to increase regional fiscal capacity integrated with efforts to improve regional macroeconomic performance. Moreover, they should increase alignments toward poverty alleviation programs as well as the capacity of regional apparatus.

scholarly journals Analisis Keuangan Pemerintah Daerah Kota Padang Tahun 2014-2018 untuk Mengukur Kinerja Keuangan Daerah

JURNAL PUNDI ◽  
2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Arnaldi Arnaldi ◽  
Irdha Yusra
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Fiscal Decentralization ◽  
Financial Analysis ◽  
City Government ◽  
Fiscal Year ◽  
Regional Finance ◽  
Management Board ◽  
Study Approach ◽  
Regional Budget

This study aims to assess the financial performance of Padang City Government using Financial Ratio Analysis of Regional Budget for the Fiscal Year 2014 – 2018. Type of research is descriptive qualitative with case study approach. The processed data is the budget  Report of Padang City Government for Fiscal Year 2014 – 2018 were obtained from the internet publication on the official website of the financial management board and regional property of Padang City. The analysis used to analyze the regional financial performance is financial analysis by calculating the ratio of independence, Degree of Fiscal Decentralization,  Ratio of Efficiency and Ratio of Expenditure Congruence. While the analysis used to analyze the Ability of Regional Finance is to calculate the Share and Growth, Map of Regional Finance Capability and,  Based on the calculation and analysis of the Regional Financial Performance can be concluded that the pattern of the region’s autonomy level relationships in Padang City is instructive criteria. Degree of Fiscal Decentralization is still lacking, but the Ratio of Efficiency is also not efficient. The ratio of Expenditure Congruence shows the balance between expenditures is not balanced. Based on the calculation and analysis of the Regional Financial Capability can be concluded, that the condition of the financial ability of Padang City is still not ideal. Share and Growth calculation results, the position of Padang City in quadrant III

scholarly journals Financial Distress, Regional Independence and Corruption: An Empirical Study in Indonesian Local Governments

2021 ◽  
Vol 4 (1) ◽  
pp. 54-70
Author(s):  
Evi Maria ◽  
Abdul Halim ◽  
Eko Suwardi
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Local Governments ◽  
Performance Ratio ◽  
Additional Test ◽  
Financial Efficiency ◽  
Funding Sources ◽  
Study Results ◽  
Solvency Ratio ◽  
Positive Effect

This study aims to determine the effect of financial distress and regional independence on the probability of corruption in the local governments, Indonesia. This study used panel data of local governments in Indonesia in 2012 and 2013 with a total of 785 local governments. Data were analyzed using logistic regression analysis. The study results found that financial distress had no effect on the probability of corruption, while regional independence had a positive effect on the probability of corruption in the local governments, Indonesia. This means that if the regional independence is high then the probability of corruption in the local government is also high, vice versa. The study findings were also robust in a separated analysis, when additional test was carried out. This study found empirical evidence that the independence of funding sources, independence ratios to meet regional needs, and the amount of regional income could be used to detect corruption in local governments, Indonesia, while the budget solvency ratio, financial performance ratio of budget, financial performance ratio of fund equity and regional financial efficiency could not.

scholarly journals ANALISIS PENGUKURAN KINERJA KEUANGAN PADA PEMERINTAH KOTA TOMOHON

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Christian D. Sumual ◽  
Lintje Kalangi ◽  
Natalia Y. T. Gerungai
Keyword(s):  
Performance Measurement ◽  
Financial Performance ◽  
Financial Management ◽  
Financial Statements ◽  
Financial Ratios ◽  
Efficiency Ratio ◽  
The Government

Information generated from financial statements will be useful if the information is understood and used by users in analyzing a report and management of local finances. For that we need to measure the financial performance of the government, how far the progress achieved by the government of Tomohon. The research was conducted in the financial management, revenue and assets of Tomohon. The data used is quantitative in the form of Budget Realization Report (LRA), the method used is quantitative to measure financial performance with Financial ratios. The results show that the financial performance of Tomohon is not good, where the financial performance in 2013-2016, for the effectiveness ratio is above 90% -100%. While the efficiency ratio and the independence ratio per year are not running well. Keywords: Influence of  financial performance measurement

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