Local Financial Management

The aims of this paper is to examine the effects of government internal control system (SPIP), accessibility financial report (ALK), local financial management transparency (TPKD), and local financial management accountability (APKD) toward local government performance (KPD) of Central Lombok Local Government of Indonesia. Type of this paper was causative research. The population in this study are internal and external stakeholders, with purposive sampling technique, and involving 150 respondents. The result of this test using SPSS 20 shows that Government internal control system has negative and not significant effect to local government performance, while Financial report accessibility, transparency, and accountability have positive and significant effect to local government performance. The results of this study can contribute to knowledge and development of accountancy literature especially public sector accountancy associated with local financial management and their implication to local government performance.

Proposed own methodical approach to the assessment of the risks of local budgets (including budgets of united territorial communities (UTC) in the conditions of reforming the system of local self-government and decentralization of power. Тhe approach takes into account the following steps: 1) identification of indicators of the state of local budgets – expenditures of general and special funds of local budgets without intergovernmental transfers; general and special fund revenues of local budgets without intergovernmental transfers; 2) the establishment of statistical characteristics of the distribution of selected indicators of the state of local budgets; 3) identification of functions of distribution of indices of local budgets and determination of the value of budgetary risks for their evaluation;4) determining the degree of riskiness of local budgets of Ukraine by calculating the values ​​of the probability of large deviations from the mathematical expectation of the values ​​of the selected indicators.On the basis of a specific methodology, an assessment of budgetary risks was carried out using reliable empirical data for each type of risk, such as a sharp decline in local budget revenues and rapid growth, and a drop in local budget expenditures for general and special funds. Attention is drawn to the fact that the indicators obtained as a result of assessing the probability of a risk of local budgets of Ukraine on incomes and expenditures testify to the empirical objectivity of the existence of high budgetary risk. the main manifestation of which will be the failure of local budgets. In this context, the necessity of introducing models and tools of risk-oriented financial management at the local level for the long-term perspective is substantiated.The proposed approach is the basis for the formation of risk-oriented decision-making tools in the budget process at the local level. It enables to improve decision-making tools in the management of local finance and UTC finances. The conducted research outlined the actual scientific and practical task, which requires a separate solution, – assessment of the risks of local budgets of Ukraine in the regional aspect.

The management of local finances is an intricate process consisting of decisions made by authorized bodies, which, as a result, after taking into account the established goals, both current and strategic, should result in the maximization of socio-economic effects. Indicator analysis is considered one of the important instruments of local government financial management. In the article, based on the data published by the Ministry of Finance, the National Council of Regional Chambers of Accounts and the Central Statistical Office, the financial management of the provincial cross-section of Poland in 2019-2021 was reviewed. The idea of the study was to assess the management of local finances during the crisis caused by the COVID-19 pandemic in synthetic terms, based on the TOPSIS multi-criteria linear ordering method and benchmarking, and to try to identify the factors determining this process. The research was carried out by means of financial analysis of 21 indicators, which were compiled for 16 local government provinces in Poland. The results of the research made it possible to determine the classes of financial condition of the analyzed units. The COVID-19 pandemic caused that in 2020, none of the studied local government provinces ranked in the first class characterizing a very high level of financial condition according to the TOPSIS method, although as many as 9 units were assigned to the second class characterizing a high level of financial condition. Local government provinces in 2019-2021 were characterized by very high development and investment potential, as well as the self-financing rate, they accumulated budget surpluses at the expense of an apparent slowdown in investment activity.

This paper aims to examine the implementation of the Government Resource Management System (GRMS) in order to address problems in local government and local financial management from the Smart Governance point of view. It is based on a qualitative descriptive research involving interviews with various stakeholders, observation and analysis of relevant document. In line with its focus, this research uses smart city theory focusing on one of the dimensions that is relevant to this research problem, namely, smart governance. This research finds that the City Government of Surabaya has implemented the concept of Smart Governance in the management of regional finance through the GRMS system. The implementation of Smart Governance is evidence from five criteria, which include: 1) Participation in decision making: manifested in E-Planning process; 2) Public and social services: materialized in E-Procurement process; 3) Transparent Governance: manifested in e-Planning and e-Procurement processes in which in E-Planning the community is involved in the formulation of development planning through E-Musrenbang, and the auction process in E-Procurement; 4) Political strategies and perspectives: materialized in all GRMS processes because the whole system of GRMS is a strategy that integrates bureaucratic activities from upstream (the top or decision making level) to the downstream (to the community or citizen) so that it represents good local government and especially local financial management. By using GRMS, the overall local government and regional financial management process in the City of Surabaya can be done easily, effectively, efficiently, participatory and accountably.

This study aims to measure the transparency of local financial management in Indonesia by focusing on three main stages (aspects) of local financial management, namely the aspects of planning, implementation, and reporting and accountability of the budget. In addition, this study also aimed to cover up the limitations of previous studies that measure the transparency of local financial management. This research was conducted in 34 provincial governments in Indonesia. The data used is the local financial management of the fiscal year 2016. Observations and data collection commenced on November 1 to 31, 2016 for the first period and the second period began in 1-10 January 2017. The second period carried out to check the availability of the data on the provincial government's official website. Based on observations, it was found that the average level of local transparency management is still very small (low), which is equal to 16.84%. The highest-ranking provincial government is a Provincial Government of Central Java with an index of 50% and the lowest is the Provincial Government of Southeast Sulawesi, Provincial Government of West Sulawesi, Provincial Government of North Maluku, and Provincial Government of West Papua with the index transparency of local financial management respectively of 3.45%.

This study aimed to analyze the effect of human resource competencies, information technology and internal control systems on good governance and local government financial management performance in the Indonesian local government (Pangkep South Sulawesi). Research conducted on civil servants working on 49 local work units (SKPD) by setting a sample of 245 respondents. Data were analyzed using Structural Equation Model (SEM) supporting through Analysis of Moment Structures (AMOS) Ver. 21. The results showed that the human resources competencies and internal control system have a positive and a significant effect on good governance. Information technology has positive but not significant effect on good governance. A human resources competency, internal control system and good governance have<strong> </strong>positive and significant effect on the financial management performance. Information technology has insignificant effect on financial management performance: The Mediating role of good governance.

The article investigates the institutional framework for managing the finances of territorial communities in the context of transformational changes caused by military challenges, economic instability and the need for post-war reconstruction of the country. Attention is focused on the evolution of management approaches in the field of local finance, the role of public policy in shaping a favorable institutional environment, and the main trends and contradictions affecting the financial capacity of communities are identified. The author analyzes the current state of regulatory and legal support for local finance management, outlines the problems of coordination between central and local authorities, the level of efficiency of intergovernmental fiscal equalization mechanisms, the lack of fiscal decentralization and the risks of fragmentation of the budget system under martial law. The author determines that the key threats to institutional stability are the weakening of community autonomy, uneven resource provision, and inconsistency of strategic development goals with the financial capabilities of local budgets. Particular attention is paid to the imperatives of public policy in the field of local finance management. The author proposes conceptual guidelines for institutional reform: strengthening the fiscal autonomy of communities, introducing medium-term budget planning with due regard for local development strategies, increasing the transparency and accountability of local governments, and strengthening the role of public participation in financial decision-making. The author concludes that it is necessary to systematically update the institutional architecture of financial management of territorial communities as a prerequisite for the effective implementation of the State regional policy and sustainable socio-economic recovery of the country.

<p>In regional autonomy context, value for money is a bridge to deliver local government to achieve good governance. Value for money must be operated in local finance management and local budgeting. To support it, the management of public money with value for money concept, it needs regional budgeting and good local finance management. This research aims to set factors that influence performance accountability of local government organizations in Palembang. Factors that include are the influence of performance based budgeting and local financial accounting system to performance accountability as partial and simultan<strong>t</strong>. This research using purposive sampling which part of nonprobability sampling of research instrument by 129 questionnaires that directly spread to 43 local government organizations in Palembang to the head of finance department revenue treasurer, and expenditure treasurer. Data of this research was analize<strong>d</strong> by multiple regression using software SPSS 20.0. The result of this research show both as partial and simultan<strong>t</strong> performance based budgeting and local financial accounting system have positive influence and significant to performance accountability in local government organization<strong></strong></p>

Local government financial performance is managed through local financial management. Regional financial management is the organization and management of existing resources or wealth in an area to achieve the desired goals of the area. The ability of the regions to achieve these goals is called the performance of local governments. In connection with the effectiveness of regional autonomy, the performance of regional governments in regional finance is highly required to finance regional activities through extracting regional original wealth. The problem is the low level of local taxes and regional levies, causing fluctuations in the financial performance of local governments which have an impact on the welfare of the people in North Sumatra Province. Analysis method This research is a simple regression analysis model using the eviews data processing tool. The use of regression analysis method in testing the hypothesis, first tested whether the model meets the classical assumptions or not. Classical assumption test consists of normality test, heteroscedasticity test, multicollinearity test and autocorrelation test, with panel data analysis, namely Ordinary Least Square (OLS), Fixed Effect Model (FEM) and Random Effect Model (REM).The results of the study have a significant influenceregional taxes and regional levies on the financial performance of local governments in order to improve the welfare of the people in the province of Sumatra North.

The ultimate benefits from decentralization (both in the quality of local government services as well as in the overall improved efficiency of the public sector) are greatly influenced by the manner in which decentralization reforms are actually implemented. In fact, it is not unusual for the implementation of decentralization reforms to differ significantly from its original conception. It is possible, for example, that a local expenditure program designed to be accessible by all households and to be progressive in its incidence becomes highly regressive in practice due to the failure of local governments to implement or administer the program as intended. As such, the political decision-making processes as well as the local administrative dimension (encompassing both local financial management as well as the actual delivery of services) are crucial to the sound functioning of the local government finance system.

This study aims to analyze the implementation of the Regional Financial Information System (Sistem Informasi Keuangan Daerah, SIKD) in enhancing financial transparency in local governments during the digital era. Additionally, it explores the impact of digital advancements on accountability and financial reporting, including their effects on efficiency and report quality. The study also identifies various challenges faced by local governments in achieving financial transparency and provides strategic recommendations to address these obstacles. The research employs a qualitative approach using a literature review method. Data were collected from scientific journals, research reports, and relevant articles discussing the role of information technology in enhancing transparency, the challenges of its implementation, and strategies for optimization. The data were categorized into three main themes: the contribution of information technology to transparency, barriers to its adoption, and strategic steps for optimization. The findings indicate that the implementation of SIKD, as mandated by Government Regulation No. 56 of 2005, significantly supports transparency and accountability in local financial management by facilitating structured and systematic documentation, management, and reporting of financial data. Digital transformation positively impacts efficiency, accuracy, and the openness of local financial information. However, several challenges persist, such as resistance to transparency, a lack of technological expertise, and limited infrastructure. To overcome these obstacles, collaboration between governments and communities, improving human resource competencies, and developing technological infrastructure are strategic steps to ensure better transparency.

The recent public and academic debate in Europe about the extent to which fiscal austerity can successfully reduce deficits and public debt, while not inhibiting economic growth, has primarily taken place at the level of national governments. In contrast, differences in the implementation of EU debt and deficit rules at the local level and their social and political consequences within member states have received much less attention. In this paper, we use the case of Italy to reveal the potential impact of EU fiscal austerity at the local level. To achieve this goal, the resource dependence theory is helpful both to understand intergovernmental relations and to explain much of the local impact of fiscal austerity. Our analysis shows that balancing the budget at the central level cannot neglect how a balanced budget affects local governments' financial management. In Italy, this process has led to a severe reduction in public investments at the local level and to a lack of political accountability. In terms of policy implications, this paper suggests that the EU's policy makers should consider local issues within the domestic settings more seriously and that they should not neglect critical situations.

State and local government financial management has passed through at least two major and distinct phases over the past decade: acute financial distress brought on by tax base siege and then a combination of federal and state tax reform and intergovernmental aid contraction. Both have swept away certainty and left scarcity and volatility in their wake. The response, coping strategies, have followed the prediction of administrative theories: in striving for greater fiscal independence, local finance officers and decision makers may have created even more dependency. This survey of developments traces trends which have emerged over the past decade to determine what alternative futures might lie ahead for government financial management.

This study aims to determine moderating effect of local finance supervision, local finance management accountability and local finance manajemen transparency on local government performance on Magelang Regency. The population in this study chairman, secretary the accounting/financial administration departemen staff (SKPD) in Magelang Regency, such as 31 Regional Work Unit with criteria have a minimum term of one year. This study used 98 people as respondents. The data were collected by using questionnairies. The analitycal method used in this research is descriptive quatitative analysis method. The data analysis was done by using multiple linear regression tests with testing t at a significance level of 5%. The results showed that, simultaneously at variabel the local finance supervision, accountability and transparency in the finance management have a signifinact effect on the Local Government of Magelang Regency performance. From the result simultaneous test (F Test). Partially showed the results of the supervision of the local fiancé has a significant effect on the Local Government of Magelang Regency performance. Accountability in the finance management and transparency in the finance management not has a significant effect on the Local Government of Magelang Regency performance. As evidenced from the result partial test (t Test).

The power of accounting: a field study of local financial management in a police force