Rabu, 14 Agustus 2013


By: Stephen Kwamena Aikins

Stephen Kwamena Aikins, Ph.D., is an Assistant Professor, Public
Administration Program, Department of Government and International
Affairs, University of South Florida. His research interests include public
financial management and governmental auditing.

ABSTRACT. This research determines the impact of local government's
internal audit process on the audit client management's adoption of audit
recommendations. Publicity of financial and operational problems in
government in recent years has led to concerns about the quality of
government audits, the extent of public managers' adoption of audit
recommendations, as well as citizen demand for accountability in
government. In spite of this, the importance of the government audit process
in ensuring accountability has gained little attention in public management
research. A survey of local government audit executives was conducted to
determine various aspects of the local government internal audit process
and their relationships with audit client management's adoption of audit
recommendations. Results show that client management's adoption of audit
recommendation is a function of auditor professional designation, due
diligence, client relations, documentation and tracking of audit
recommendations, as well as of follow-up audits to verify implementation of
agreed-upon action plans.

The problem of government's operational and financial control
weaknesses has been plaguing many local governments for decades.
Highly publicized financial problems in large city governments in the
mid 1970s brought wide spread attention to the issue of government
accountability. The attention was fueled by the then General

Accounting Office study (GAO 1986), which revealed that 34 percent
of the 120 audits examined were substandard. This finding raised
concern as to the quality of government audits and the extent of
management's implementation of audit recommendations. Although
subsequent studies show improvement iri the quality of government
audits (Lowensohn & Reck, 2004; General Accounting Office, 1989),
there remain concerns about audit processes and their impact on
public managers' implementation of corrective actions to address the
issues identified. For example, recent allegations of misappropriation
of $12 million of funds in the Roslyn, New York district (Hevesi, 2005)
resulted in the New York State comptroller's requesting a substantial
increase in his audit budget as a proactive approach toward
preventing further misappropriations of school funds.

The financial problems in government in recent years have also
motivated citizens to place intense pressure for accountability on
governments, government-owned entities and their elected officials.
Legislative bodies, on behalf of citizens and other stakeholders, act
as principals that impose standards and procedures on managers of
public organizations that act as their agents. Where principals believe
agents may be acting in their own self-interests, the principals may
require monitoring techniques and more credible audit reports as a
means of justifying their actions (Rainey, 1983) and ensuring
accountability. As noted by Sinason (2000), if the cost of such
monitoring is less than the cost of punitive actions taken by principals
when uncertainty exists regarding the validity of t;he agents'
assertions, then agents will select monitoring as a means of
maximizing their overall compensation.

The worthiness of monitoring, such as an internal audit, to the
principals depends not only on the quality of the audit process but
also on the extent to which client management adopts the audit
recommendations to improve the adequacy and effectiveness of
internal controls over governmental operations. Therefore, the
purpose of this research is to determine, from internal auditors'
perspectives, the impact of the local government audit process on
audit client management's adoption of audit recommendations. For
the purpose of this research, the audit process is broadly defined
here to include dimensions of auditor due professional care (e.g.
performing risk assessment of areas audited), independence (e.g.
auditor reporting to a body outside of area audited), quality contro
l(e.g. supervision and review of staff auditor's work) and client
relations (e.g. reporting audit findings to ciient management before
finai decision), internal controls refer to the measures designed and
implemented by the pubiic sector manager to heip accomplish the
entity's goais and objectives, and to mitigate operational and
financial risks. Audit client management refers to the pubiic
management team whose areas or programs are audited (auditee)
and to whom audit recommendations are issued.


Research on auditing in the pubiic sector has little noted the audit
process from the perspective of internal audit. Various scholars have
studied comparative accounting and auditing for local governments
([Giroux, Jones, & Pendlebury, 2002), compliance reporting decisions
in municipal audits (Kidwell 1999), the timeliness of school district
audit (Carslaw, Mason, & Mills, 2007), and the emergence of
performance auditing as the activist auditor (Wheat, 1991). Others
have investigated the determinants of audit quality in the public
sector (Deis & Giroux, 1992), ethical implications of independent
quality auditing (Walters & Dangol, 2006), and the determinants of
perceived audit quality and auditee satisfaction in local government
(Samelson, Lowensohn & Johnson, 2006). These studies on audit
quality have concentrated on the work of external auditing firms,
have used proxies to measure audit quality and have considered
quality to be related to attributes such as firm size (Shockey &Holt,
1983), extent of litigation (Palmrose, 1988), premium fees (Copley,
1991), and investment in firm reputation. 

In their research of private sector audit quality, Schroeder,
Solomon and Vickrey (1986) surveyed audit committee chairs and
audit partners to determine their perceptions of audit quality.
Carcello, Hermanson and McGrath (1992) also surveyed Big 6
auditors. Fortune 1000 controllers and sophisticated financial
statement users regarding attributes of audit quality. Both studies
found that factors associated with audit teams have greater influence
on perceived audit quality. Behn, Carcello, Hermanson and
Hermanson (1997) examined the effects of audit quality factors on
auditee (audit client) satisfaction in the private sector. More recently,
Samelson, Lowensohn and Johnson (2006) extended these studies
to the external governmental audit by examining audit attributes that
influence government finance officers' perceived audit quality and
auditee satisfaction.

A common thread that runs through the above-mentioned
studies is that perceived audit quality is significantly influenced by
auditor characteristics such as industry expertise, responsiveness to
client needs, exercise of professional due care, conduct of field work,
exercise of professional skepticism (Carcelio, Hermanson & iVIcGrath,
1992; Sameison, Lowensohn & Johnson, 2006). Additionally, auditor
industry expertise, auditor responsiveness to client needs, audit
manager involvement and conduct of fieldwork do significantly
influence auditee satisfaction (Behn, Carcelio, Hermanson &
Hermanson, 1997; Sameison, Lowensohn & Johnson, 2006).
Although these studies make significant contributions to the literature
on perceived audit quality, none of them focuses on the internal audit
regarding the effect of the audit process on auditee adoption of audit

This research seeks to expand existing knowledge on the
influence of perceived audit quality on auditee satisfaction by
focusing on the government's internal audit process, and by
investigating the determinants of auditee adoption of audit
recommendations from internal auditors' perspective. This research
focus is important because an internal audit provides more insightful
information and recommendations about operational efficiency which
could lead to savings and cost-effectiveness. Additionally, unlike in
the private sector, the multiplicity of stakeholders in government
agencies makes accountability an overriding issue. In fact, in a
governmental setting, while perceptions of audit quality and auditee
satisfaction are important, the translation of satisfaction and
perceptions into auditee implementation of audit recommendations
to improve internal controls is more significant given the need for
public managers to be accountable to stakeholders and the general

Given government internal auditors' expertise in audit
methodology, their insight into the internal control structure of the
areas they audit, and their accumulated experience in dealing with
their audit clients, an investigation of their perception of the audit
process and its relation to audit client management behavior will
help provide insight as to whether the internal auditors' perceived
factors that drive client adoption of recommendations are similar to
the determinants of auditees' perceived quality and satisfaction
found by prior researchers. As concluded by Carcello, Hermanson and
McGrath (1992), factors associated with audit teams have greater
influence on perceived audit quality. In the following sections, I dwell
on the literature on principal-agent relationship and the audit
framework provided by Government Auditing Standards, to establish
a theoretical foundation regarding the importance of audit process
variables pertaining to independence, due professional care, quality
control and client relations in influencing management adoption of
audit recommendations.


Agency theory postulates that an organization consists of a nexus
of contracts between the owners of economic resources (the
principals) and managers (the agents) who are charged with using
and controlling those resources (Jensen & Meckling, 1976, p. 308).
The theory is based on the premise that agents have more
information than principals and that this information asymmetry
adversely results in moral hazard, and affects the principals' ability to
monitor effectively whether their interests are being properly served
by agents. It also assumes that principals and agents act rationally
and that they will use the contracting process to maximize their
wealth. Managers of public resources are agents who are charged
with using and controlling the public resources, and are accountable
to their principals for the resources provided to carry out government
programs and services. These principals are both the citizens and
other government officials, such as elected officials. This principalagent
relationship may significantly impact decisions of local, elected
public officials to have internal audit departments to help monitor
operations, ensure regulatory compliance and minimize misappropriation

Public administration theory indicates that indirect benefits and
lack of control over investments compel taxpayers to demand more
accountability for their funding, and also directs auditors to require
additional assurance regarding efficiency of operations, regulatory
and procedural compliance, integrity of financial records, safeguarding
of assets and achievement of programmatic objectives.
From agency- theory perspective, the citizens of a governmental
jurisdiction usually find it more difficult than shareholders of private
organizations to monitor and control t he activities of public managers
effectively because citizens are less cohesive and heterogeneous
owners of resources than shareholders. Therefore, to counter the
possibility of loss of confidence that stems from a loose ownershipcontrol
structure in t he public management process, public managers
may be more inclined to employ internal monitoring mechanism such
as internal auditing and to use t he services of an audit committee or
some other monitoring body (Adams, 1994).
A government audit that objectively evaluates evidence could
help minimize moral hazard by public managers, thereby providing
credibility to t he information reported by or obtained from the agent.
In fact, the work of t he government internal auditors in safeguarding
the interest of t he citizens or legislature is strengthened if t he audit
process is based on adherence to applicable standards. The
Government Auditing Standards (1999) place responsibility on
auditors to ensure that (a) audits are conducted by personnel who
collectively have the necessary skills, (b) independence is
maintained, (c) due diligence is maintained by following applicable
standards in planning, conducting and reporting the audit, (d) the
audit entity has an appropriate internal quality control system in
place, and (e) the audit entity undergoes periodic internal quality
control reviews.

Government internal auditors will better be able to prevent public
managers from taking advantage of the incohesive ownership-control
structure of public organizations if those auditors have the requisite
skills to perform their duties. The skills requirements by the auditing
standards (e.g. Government Auditing Standards, 1999 Section 3.3-
3.6) imply that staff assigned to conduct audits should collectively
possess adequate professional proficiency for the tasks required.
Such proficiency includes knowledge obtained through formal
education, professional certification, continuing professional
education and training as well as experience on the job. The
implication here is that possession of requisite qualifications will
enable auditors to be competent. Bonner and Lewis (1990)
differentiated four types of knowledge as germane to auditing tasks:
general domain knowledge, subspecialty knowledge, world knowledge
and general problem solving ability. Ashton (1991) surveyed auditors
with subspecialty knowledge for error frequency in their industries
and found a strong relationship between subspecialty experience and
accuracy. In a review of audit quality assessments made by the
united States Regional Inspectors General, Aldhizer, Miller and
Morgalio (1995) found that industry specialization was associated
with fewer violations of Generally Accepted Government Auditing
(GAGAS ) reporting standards. O'Keefe, King and Gaver (1994) also
found fewer compliance reporting violations among governmental
specialists in audits of Oalifornia school districts.

Meixner and Welker (1988) conducted an experiment to
investigate Which type of experience led to expertise, as measured by
judgment consensus. The researchers found that total audit
experience did not result in higher consensus. In contrast, a
significant consensus was found to be associated with increased
organizational experience. Knowledge about governmental audits,
coupled with formal education and professional training enables the
audit team to better understand the internal control structure, and
perform quality fieldwork by designing and performing appropriate
audit test, and by providing value-added recommendations, thereby
facilitating acceptance and implementation of those
recommendations. This will then help the agent/public manager
demonstrate to the principal that the public resources are being
judiciously utilized. Therefore, I hypothesize that there is a positive
relationship between governmental audit experience, as well as
auditor qualifications such as professional designation and college
degree, and a public manager's acceptance and implementation of
audit recommendations.

Agency theory predicts that an organization with a loose
ownership-control structure may put in place control mechanisms to
prevent agents from adversely influencing monitoring mechanisms to
suit their self-interests (Adams, 1994). For example, a government
legislature may try to prevent public managers from curtailing the
scope of the internal audit function or rejecting internal auditors'
recommendations by ensuring that the role and responsibilities of the
internal audit are mandated in an audit charter, and that the head of
the internal audit maintains independence by reporting directly to the
legislature or audit committee. Auditor independence also includes
the auditors being organizationally located outside of the staff or the
line management function under audit, and refraining from making
management decisions in the areas they audit (Government Auditing
Standards, 1999). Auditors who are independent in all matters
relating to their audit work are more likely to draw objective
conclusions from audit evidence and have their recommendations
adopted by audit client management. Based on this reasoning, a
positive relationship between governmental auditors' independence
attributes, such as reporting structure, and audit client
management's adoption of audit recommendations can be expected.
Agency theory postulates that there is an information asymmetry
problem in the public bureau which hinders principals from effectively
monitoring the opportunistic behavior of agents. Government internal
auditors can minimize the afore-mentioned problem through the
exercise of due professional care in the audit process. This includes
understanding the risks in the client's operations by interviewing
management and personnel, reviewing policies and procedures,
using sound judgment to select the audit methodology, using the
acquired information to analyze the risks inherent in the client's
operations, and developing risk-based audit programs for audit tests.
Deficiencies found during audit tests are brought to the attention of
the audit client manager to ensure the audit team has been provided
with all relevant facts. At the end of the field work, the audit team
reviews audit findings with the audit client manager prior to issuing
the audit report at the exit conference. The above processes
pertaining to due diligence, if followed, minimize the risk of the audit
client rejecting the audit findings and recommendations. Therefore,
one would expect a positive relationship between auditor risk
assessment for each audit project, client relations activities such as
learning of the client management risk perspective, briefing client
management in the course of the audit, discussing findings with
client management prior to issue of the final report, and audit client
management's adoption of audit recommendations.

Quality audits can potentially aid the public manager in fulfilling
his or her obligation through enhanced accountability and the
safeguard of public assets. Government Auditing Standards require
auditors to have appropriate quality control systems in place, and to
undergo external quality control review. The essence of quality control
is that it helps to solidify the due professional care of auditors
through assurance that appropriate policies and procedures are
followed in minimizing opportunistic behavior. Therefore, an internal
quality control system should provide reasonable assurance that the
audit entity has adopted and is following applicable auditing
Standards, and has established and is following adequate internal
audit policies and procedures.

Internal quality control is implemented by ensuring that there is
supervision of audit work through review of work papers, that auditors
are appropriately trained, and that there is periodic independent
review of completed work papers for compliance with standards,
policies and procedures. External quality control is achieved through
periodic external peer review, and correction of any deficiencies
noted by the external reviewer. Properly implemented and enforced,
an audit quality control system helps to minimize audit errors,
enhance impartial conclusions from audit evidence and ensure
issuance of accurate audit reports, thereby facilitating audit client
management adoption of audit recommendations. Therefore, we
should expect a positive relationship between review of audit staff
work for accuracy, external peer review and the audit client
management's adoption of audit recommendations.


This research is in the form of survey research. A survey was sent
to 387 audit department heads of the Association of Local
Government Auditors (ALGA) and 46% of them returned the survey. It
was conducted in the period June 2008 through October 2008. Audit
department heads were chosen as the unit of analysis because by
virtue of their chosen profession, auditors have responsibility for
exercising due professional care, independence and quality audit
work. Additionally, they are in a better position to provide objective
assessment of the risks inherent in their clients' operations and to
understand client management's motivations to accept and
implement audit recommendations. Among those who participated in
the study, 89% were audit directors and managers and the rest had
other titles. Fifty percent had staffing level of up to 5 auditors, 32%
had from 6 to 10 auditors and 18% had more than 10 auditors. Of
the returned surveys, 75% were from municipalities, 23% from
counties and 2% from other local governments. Jurisdictions of all
sizes were represented, with 50% of the cities having population of
less than 100,000 and 80% of the counties having population of
more than 500,000. The survey questionnaires were designed to
measure variables in each of the following broadly defined audit
process categories: auditor qualifications, independence, exercise of
due professionai care, quality control and audit client relations; as
well as the relationships of those variables with audit client
management adoption of audit recommendations. The survey
consisted of several sections which measured several variables in
each of the audit process categories. Table 1 provides a summary of
the variables.

The variable name column shows the variables measured in each
category and the operational definition column contains statements
regarding how each variable was operationalized. For example.
Educational Background was operationalized by the percentage of
audit staff with college degrees. This variable was measured by
asking respondents to select from a list of ranges, the percentage of
their audit staff that possess college degrees. Professional
Designation was measured by asking respondents to choose from a
list of certifications that their auditors possess, and Audit Experience
was measured by asking respondents to select the range of years of
government auditing experience that best matches their audit staff's
experience. Frequency distribution was used to analyze the data in
the auditor qualifications category.

In the independence category. Reporting Structure was measured
by asking respondents to select from a list of oversight bodies to
whom their audit departments report. Consulting Services and auditor
involvement in client management's decisions were measured by
asking respondents to indicate on a seven point scale their
agreement or disagreement with the statements that auditors provide
consulting services to the areas they audit; and auditors make
management decisions in the areas they audit. Frequency distribution
was used to analyze the data in the independence category.

The variables in the due professional care category were
measured by asking respondents to indicate their agreement or
disagreement on a seven-point scale to the operational definition
statements for each variable. The variables in quality control
categories were measured using the same measurement scale and
criteria. Descriptive statistics showing the mean scores were used to
analyze the professional due care and quality control data. In the
audit client relations category. Client Risk Perspective, Audit Olient
Briefings, and Olient Review of Draft Report were measured on a
seven point scale by asking respondents to state their agreements
and disagreements to the operational definition statements
respectively. These variables also reflect the exercise of professional
due care. Descriptive statistics showing the mean scores were used
to analyze the client relations data.

The variables in the mandate category were added as control
variables. They were measured on a seven point scale by asking
respondents to indicate their agreements and disagreements with the
operational definition statements for each variable. Details about the
control variables are provided in data analysis in the audit findings
section. The dependent variable of interest - Audit Olient
Management's Adoption of Audit Recommendations - was
operationalized by management's buy-in for all audit
recommendations, client management documentation of action plans
for all audit findings, and also implementation of the action plans
within deadlines. The variable was measured on a seven-point scale
by asking respondents to indicate their agreement and disagreement
to the operational definition statements. Linear regression was used
to analyze the relationship between the dependent variable and the
independent variables shown in Table 1. The model coefficients,
showing the proportion of the dependent variable explained by each
independent variable, were discerned from the regression results.


Reliability analysis was performed to determine the extent to
which the variables measured were free from error and therefore
yield internal consistency. Nunnally (1978) and Churchill (1979)
suggest that constructs with a coefficient alpha equal to or greater
than 0.70 have adequate internal consistency. The Cronbach
coefficient for all the variables measured had an alpha coefficient
above 0.768.

Auditor Qualifications
Table 2 shows the percentage of respondents who indicated the
percentage ranges of their audit staff with college degrees. The key
information from this table is that almost all respondents said their
staff members have college degrees. Indeed, 88% of respondents
indicated between 81% and 100% of their staff have college degrees,
and therefore possess basic qualifications for audit work.

The key finding shown in Table 3 is that 97% of respondents
indicated their audit staff members have professional designations,
with 71% saying their staff members have two or more professional
designations. The possession of professional designation in
accountancy and/or auditing demonstrates one's preparedness in
terms of the knowledge, training and skills needed for audit work.
Other analysis performed revealed that on average, the survey
respondents' auditors have 10 to 15 years of audit experience in a
governmental setting. Together with audit experience, professional
designation could enable an auditor to command respect in the eyes
of the audit client, and could facilitate discussions with the client
during the audit process.

Auditor Independence
The reporting structure shown in Table 4 details the oversight
bodies to whom respondents' audit departments report. An important
finding indicated by the table is that almost all the oversight bodies to
whom the respondents' department report are either heads of
governmental entities or the legislature.
According to Table 4, 28% of respondents said their departments
report to the audit committee, 28% report to the city council, 15% to
The county commission and 16% to the city manager/chief
administrative officer. Together, these represent 87% of the audit
departments out of the 178 whose executives responded to the
The findings mean an overwhelming majority of the audit
departments comply with the independent reporting structure
required by the auditing standards. Additional analysis also revealed
that while the audit executives who responded to the survey
Soniewhat Agreed that their departments provide consulting services
to their audit clients (mean score - 4.66 out of a possible highest
score of 7), they also strongly disagreed that that their auditors make
management decisions in the areas they audit (mean score = 1.81),
suggesting minimal conflict of interest from auditors' perspective.
Due Professional Care and Quality Control
Table 5 details the mean scores of respondents' degree of
agreements to the statements pertaining to due professional care
and quality control on a 7 point scale. For due professional care, the
table shows the survey respondents Strongly Agree that their auditors
perform risk assessments of all areas audited (means score = 6.03)
and consider operational risk in audit program development (mean
score = 6.15). The exercise of audit due diligence is partly dependent
on the quality of audit performed and external peer quality reviews.
Table 5 shows that respondents strongly agree that their staff
auditors' work is reviewed for accuracy and compliance with audit
procedural requirements and applicable standards (mean score =
6.19). Another research finding not indicated in Table 5 revealed that
43% of respondents' audit departments have gone through external
peer quality review within the last five years as of the date of the
survey. Given these results, it can be argued that in general, the local
government auditors who responded to the survey believe the degree
of professional due care and quality control exercised by local
government auditors is strong. However, the findings also suggest
that the auditors are not too keen on maintaining an issue tracker to
enable them to document control weaknesses identified in their
audits (mean score = 4.92) and to follow-up on recommendations.
Furthermore, while they perform follow-up audits to ensure audit
recommendations are being implemented (mean score = 5.83), they
seem indifferent regarding the timeliness of follow-up audits (mean
score = 4.81).
Client Reiations
Table 5 shows the auditors learn of audit client managers' risk
perspectives prior to audit (mean score = 6.17); the auditors
communicate findings to audit clients prior to final decision (mean
score = 6.36); and have their audit client management review draft
reports prior to finalization (mean score - 6.65). These results
suggest that in general, the auditors follow prudent methodology to
understand the clients' operations and the risks inherent in those
operations to determine the appropriate types of audit tests to be
performed. Additionally they ensure the validity of the audit evidence
gathered through communication with client management, thereby
minimizing potential disagreements. However, Table 5 also shows
that despite the auditors' efforts and the apparent good working
relations described above, the degree of enthusiasm with which audit
client management adopts audit recommendations is low. While the
audit executives Agree that their auditors enjoy client management's
buy-in for all audit recommendations issued (mean score = 5.94),
they only Somewhat Agree that their audit clients provide
documented action plans to address audit control weaknesses
communicated in their audit reports (mean score = 5.48), and are
basically Neutral, implying they neither agree nor disagree, as to
whether their audit client management implements ail action plans
within agreed-upon deadlines (mean score = 4.53).

Audit Process and Ciient Management's Adoption of Recommendations

Based on the above findings, the question that comes to mind is
what dimensions of the audit process influence client management's
adoption of audit recommendations issued by the local government's
internal auditors? In order to answer this question, it was appropriate,
to determine through regression analysis, whether there is a
statistically significant relationship between the dependent variable
of interest - Client Management's Adoption of Audit
Recommendations - and the dimensions of due professional care,
independence, quality control and client relations. Given the
possibility of a codified span of the internal audit's authority, audit's
roles and responsibilities, and audit charter to influence the audit
client management's adoption of audit recommendations (Adams
1994), and thus confound the results, these variables (Mandated
Audit Charter, Audit Roles Passed Into Law, Span of Audit Authority)
were included as exogenous, extraneous variables.

Another issue that potentially could explain client management's
implementation of audit recommendations is auditor qualifications.
For example, as noted by Aldhizer, Miller and Morgalio (1995), the
auditors' knowledge of government operations enhances compliance
with GAGAS reporting standards. For this reason, the dimensions of
auditor qualifications were also included as independent extraneous
variables. Kerlinger (1986) noted that a potential extraneous variable
can be controlled by including it as another attribute, an observed
variable, in the study. By considering the extraneous variables in
their own right, I was able to determine how they interact with the
independent variables of interest and the extent to which they
influence Client Management's Adoption of Audit Recommendations,
either individually or in combination with the independent variables of

Table 6 and Table 7 show the overall significance of the model.
As illustrated in Table 6, the probability of F statistic (P>F) is 0.000
and the R Square is 0.632. This implies that there is a statistically
significant relationship between Client Management's Adoption of
Audit Recommendations and the overall linear combination of the
eighteen independent variables. A closer review of Table 7 reveals
that Client Management's Adoption of Audit Recommendation is a
function of variables such as Professional Designations (P = 0.041),
Project Risk assessment (P = 0.006), Client Risk Perspective (P =
0.011), Issue Tracker (P = 0.001), and Follow-Up Audits (P = 0.031).
These findings support the hypothesis that there is a positive
relationship between the dependent variable and the five
independent variables - auditor professional designations, auditor
assessment of inherent risk in client operations for the areas audited,
auditor understanding and consideration of client management's risk
perspective in the audit process, the maintenance of issue tracker for
documenting audit findings and tracking resolution of
recommendations, and follow-up audits to ensure the control
weaknesses identified have been addressed. Thus the R Square
value of 0.632 indicates that 63% of the variation in client
management adoption of audit recommendations is affected by these
five variables.


The research findings reveal that in general, local government
auditors whose executives responded to the survey possess the
necessary skills and knowledge required for their work. An important
finding is that although there are associations between client
management adoption of audit recommendations and audit
experience, college degree, as well as professional designation, only
the association with professional designation translates into a
statistically significant relationship (P = 0.041). This implies that
although audit experience and college degree are important in
facilitating audit client agreement with auditors on recommendations,
client management's adoption of the recommendations is not as
severely constrained or enhanced by audit experience and a college
degree as it is by the possession of professional certification. The
above findings seem to confirm the work of Bonner and Lewis (1990)
that in addition to general domain knowledge, subspecialty
knowledge is germane to audit work. This is because as the research
result implies, total government auditing experience does not
necessarily equate the knowledge gained from auditing specific
operations of government such as accounting or budgeting. The
results also imply that agent/public managers whose areas are
audited appear comfortable accepting and implementing
recommendations to fulfill obligations to their principals if those
recommendations are issued by auditors who are known to have
successfully completed professional training. Perhaps, this is the
case because the agent/public managers are better able to convince
their principals about the value of recommendations to be
implemented in safeguarding public resources if those recommenddations
have the fingerprints of credible and professionally trained
The research results also reveal client management's adoption of
audit recommendations is strongly influenced by professional due
diligence such as the auditor's assessment of risks inherent in the
client' operations to determine the areas of appropriate audit tests (p
= 0.006 for Project Risk Assessment), as well as the client relations
activity such as learning and taking into account the client
management's perception of risks in their operations (p = 0.011 for
Client Risk Perspective). These results are not surprising, as the audit
client manager and his or her team who are involved in the daily
operations of the area have more insights of those operations.
Additionally, no meaningful audit could be performed without an
understanding of the area to be audited, and without working with
those manning the operations. These findings also appear consistent
With the results of prior studies (Carcello, Hermanson & McGrath,
1992; Samelson, Lowensohn & Johnson, 2006) that perceived audit
quality is significantly influenced by auditor characteristics such as
due professional care, and responsiveness to client needs. Thus,
government's internal auditors' perceived factors that drive client
adoption of recommendations appear the same as the two
determinants of auditee's perceived quality found by prior research
on external audits. In exercising due professional care through
understanding of the risks inherent in the agent/public manager's
operations, government auditors play a key role in the principal-agent
relationship by not only monitoring opportunistic behavior of the
agent, but also by minimizing information asymmetry between the
two parties through the issuance of reports to the principals.
According to the research results, government auditors'
documentation and tracking of audit findings and recommendations,
as well as follow-up audits performed to ensure agreed-upon action
plans are implemented, are significantly related to client
management's adoption of audit recommendations (p = 0.001 for
Issue Tracker; and p = 0.031 for Follow-Up Audits). The findings
support and extend the arguments of Adams (1994) regarding the
internal audit as a monitoring mechanism in relation to principalagency
theory. As argued by Adams, the heterogeneous ownership of
government resources and information asymmetry make control of
the agent/manager's activities difficult. Therefore, a monitoring
mechanism like an internal audit helps to counter loss of confidence
in the public management process. The research findings suggest the
significance of the internal audit monitoring role lies in the fact that
agent/public managers are more inclined to implement audit
recommendations to address weaknesses identified in the course of
the audit, and enhance public accountability, as long as government
auditors document, track and follow-up to verify management's
actions on those recommendations.

The research findings also reveal that local government auditors
generally maintain independent reporting structure and exercise
quality control over their audit work. These findings are also
consistent with the arguments by Adams (1994) in that although they
do not significantly influence client management's decision to adopt
audit recommendations, they do help minimize the possibility of the
agent/public manager's influence on the internal audit monitoring
activities for individual self-interest.

This study did not include the audit client management's
perception of governmental internal audit quality, as well as the
relationship between the nature of recommendations and audit client
management adoption of audit recommendations. Additionally, it
does not include the influence of the size of the audit function and
audit budget on the quality of the audit performed and the degree of
due diligence maintained in the audit process. Furthermore, the
effect of audit frequency on client management's adoption of audit
recommendations was not included in this study. Further study is
required to determine whether audit size and audit budget impact the
governmental internal audit's quality and due diligence, and whether
audit frequency impacts client management's acceptance and
implementation of audit recommendations. Additionally, a future
review of auditee perception of the quality of government's internal
audit process, as well as the relationship between the nature of
recommendations and client management adoption of
recommendations will be appropriate.


Overall, the findings from this research suggest that many of the
government's internal auditors' perceived factors that drive client
adoption of recommendations are the same as the determinants of
auditee perceived quality found by prior research on external audits.
Additionally, the findings suggest that in general, when government
internal auditors take the time to understand the risks in the areas
they audit, use the knowledge of the risk as a guide in their audit
tests, and also communicate with client management to obtain their
perspectives on operational risks, the latter tends to appreciate such
gestures and respond favorably to audit recommendations.
Furthermore, to help fulfill their agency obligations and be
accountable to their principals, audit public managers tend generally
to act on recommendations issued by auditors known to have
recognized professional qualifications, as well as those
recommendations documented, tracked and followed-up by auditors.

The findings from this research have theoretical and practical
implications for public management. From a theoretical perspective,
the findings suggest that through documentation and monitoring of
control weaknesses and related recommendations, and reporting of
audit findings to oversight bodies, government internal auditors could
play a key role in the principal-agent relationship by minimizing
information asymmetry and moral hazard, thereby helping public
managers to fulfill their obligations to citizens and elected officials.
From a practical perspective, client management adoption of audit
recommendations as a result of auditors' tracking and monitoring
those recommendations will help to enhance public accountability in
the public management process. Therefore, local government's
internal auditors should improve the documentation, monitoring and
follow-up of client resolution of audit findings and recommendations
in order to strengthen public accountability.

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Managerial Auditing Journal, 9(8): 8-12.
Aldhizer, G. R., Miller, J. R., & Moraglio, J. F. (1995). "Common
Attributes of Quality Audits." Journal of Accountancy, 17(1): 61-
Ashton, A. H. (1991). "Experience and Error Frequency Knowledge as
Potential Determinants of Audit Expertise." The Accounting
Review, 66: 218-239.
Behn, B. K., Carcello, J. V., Hermanson, D. R., & Hermanson, R. H.
(1997). "The Determinants of Audit Client Satisfaction among
Clients of Big 6 Firms." Accounting Horizons, 11(1): 7-24.
Bonner, S. E., & Lewis, B. L. (1990). Determinants of auditor
expertise. Journai of Accounting Research, 28 (Supplement): 1-
Carcello, J. V., Hermanson, R. H., & McGrath, N. T. (1992). "Audit
Quality Attributes: The Perceptions of Audit Partners, Preparers
and Financial Statement Users." Auditing: A Journai of Practice
and Theory, 11(1): 1-15.
Carslaw, C, Mason, R., & Mills, J. R. (2007). "Audit Timeliness of
School District Audits." Journai of Pubiic Budgeting, Accounting
and Financial iVIanagement, 19(3): 290-316.
Churchill, N.C. (1979). Computer-Based Information Systems for
Management. Englewood Cliffs, NJ: Prentice Hall.
Copley, P. A. (1991). "The Association between Municipal Disclosure
Practices and Audit Quality." Journal of Accounting and Public
Policy, 10: 245-266.
Deis, D. R., & Giroux, G. A. (1992). "Determinants of Audit Quality in
the Public Sector." The Accounting Review, 67(3): 462-479.
Giroux, G., Jones, R., & Pendlebury, M. (2002). "Accounting and
Auditing for Local Governments in the U.S. and the U.K." Journal
of Budgeting, Accounting and Financial Management, 14(1): 1-
Government Auditing Standards (1999). Government Accounting
Standrads. [Online]. Available at
n&rlz=lT4ADBR_enUS268US270&sa=2. (Retrieved, April 3,
Hevesi, A. (2005). Roslyn Union Free School District Anatomy of a
Scandal: Report of Examination. [Online]. Available at
(Retrieved March 17, 2009).
Jensen, M. C, & Meckling, W. H. (1976). "Theory of the Firm;
Management Behavior, Agency Costs and Ownership Structure."
Journal of Financial Economics, 3(3): 305-360.
Kerlinger, F. N. (1986). Foundations of Behavioral Research (3rd ed.).
New York: CBS.
Kidwell, L A. (1999). "Compliance Reporting Decisions in Municipal
Audits: The Impact of Budget Variance and Employment Sector."
Journal of Public Budgeting, Accounting and Financial
Management, 11(3): 325-356.
Lowensohn, S., & Reck, J. (2004). "Longitudinal Analysis of Local
Government Audit Quality." Research in Governmental and
Nonprofit Accounting, 11: 213-228.
Meixner, W., & Welker, R. (1988). Judgment Consensus and Auditor
Experience: An Examination of Organizational Relations." The
Accounting Review, 63: 505-513.

KEMANDIRIAN KEUANGAN DAERAH (Analisis Rasio Kinerja Keuangan Daerah Kota Palangkaraya Sebelum OTDA, Sesudah OTDA dan Pasca OTDA Sumber APBD Tahun 1997 s/d 2012)

Dalam rangka menyelenggarakan pemerintah daerah sesuai dengan yang diamanatkan dalam Undang-undang Dasar Negara Republik Indonesia tahun 1945, pemerintah daerah yang mengatur dan mengurus urusan pemerintah menurut asas otonomi dan tugas pembantuan. Melalui otonomi daerah dan desentralisasi fiskal, pemerintahan daerah memiliki wewenang untuk menggali pendapatan dan melakukan peran alokasi secara mandiri dalam menetapkan prioritas pembangunan.
Sistem akuntansi keuangan daerah menggunakan stelsel kameral (tata buku anggaran).  Menurut sistem pembukuan ini, dasar pemilihan tata buku, yaitu stelsel kameral dan bukannya stelsel komersiil (tata buku kembar/berpasangan), merupakan tujuan pembukuan.  Karena tujuan pembukuan keuangan daerah di era pra reformasi adalah pembukuan pendapatan, maka tata buku yang lebih tepat untuk digunakan adalah stelsel kameral. Jika tujuan pembukuan keuangan daerah adalah pembukuan harta, maka tata buku yang tepat untuk digunakan adalah stelsel komersiil.  Pada stelsel kameral, diperolehnya pendapatan adalah pada saat penerimaan, sedangkan pembiayaan terjadi pada saat dilakukan pembayaran.  Oleh karena itu, stelsel kameral ini juga disebut tata buku kas.
Di era (pasca) reformasi, bentuk APBD mengalami perubahan yang cukup mendasar.  Bentuk APBD yang pertama didasari oleh Keputusan Menteri Dalam Negeri (Kepmendagri) Nomor 29 Tahun 2002 tentang Pedoman Pengurusan, Pertanggungjawaban, Dan Pengawasan Keuangan Daerah, Serta Tata Cara Penyusunan Anggaran Pendapatan dan Belanja Daerah, Pelaksanaan Tata Usaha Keuangan Daerah, dan Penyusunan Perhitungan Anggaran Pendapatan dan Belanja Daerah.  Sejalan dengan perubahan yang terjadi, bentuk APBD sekarang ini didasari pada Peraturan Menteri Dalam Negeri (Permendagri) Nomor 13 tahun 2006 tentang Pedoman Pengelolaan Keuangan Daerah. 

Peraturan-peraturan di era reformasi keuangan daerah mengisyaratkan agar laporan keuangan semakin informatif.  Untuk itu, dalam bentuk yang baru, APBD terdiri atas tiga bagian, yaitu pendapatan, belanja, dan pembiayaan.  Pembiayaan merupakan kategori baru yang belum ada pada APBD di era prareformasi.  Adanya pos pembiayaan merupakan upaya agar APBD semaki informatif, yaitu memisahkan pinjaman dari pendapatan daerah.  Hal ini sesuai dengan definisi pendapatan sebagai hak Pemda, sedangkan pinjaman belum tentu menjadi hak Pemda.  Selain itu, dalam APBD meungkin terdapat surplus atau defisit.  Pos pembiayaan ini merupakan alokasi surplus atau sumber penutupan defisit anggaran.

Adapun tujuan pelaksanaan otonomi daerah dan desentralisasi fiskal menurut UU No. 32 Tahun 2005 adalah untuk meningkatkan kemandirian dan mengurangi ketergantungan fiskal pemerintah daerah terhadap pemerintah pusat. Dalam otonomi daerah terdapat dua aspek kinerja keuangan yang dituntut agar lebih baik dibandingkan sebelum otonomi daerah. Aspek pertama adalah bahwa daerah diberi kewenangan mengurus pembiayaan daerah dengan kekuatan utama pada kemampuan Pendapatan Asli Daerah (Desentralisasi Fiskal). Aspek kedua yaitu di sisi manajemen pengeluaran daerah, bahwa pengelolaan keuangan daerah harus lebih akuntabel dan transparan tentunya menuntut daerah agar lebih efisien dan efektif dalam pengeluaran daerah. Kedua aspek tersebut dapat disebut sebagai reformasi pembiayaan atau Financing Reform. Maka untuk mencapai pembangunan suatu negara diperlukan adanya pembiayaan dengan sistem pembagian keuangan yang adil, proporsional, demokratis, transparan, dan efisien. Pembiayaan suatu daerah diperoleh dari Anggaran Pendapatan Belanja Daerah (APBD) yang disusun setiap Tahun oleh pemerintah daerah beserta satuan kerjanya guna memenuhi pelayanan publik. Berdasarkan PP No. 105 tahun 2000 menyatakan bahwa APBD disusun berdasarkan pendekatan kinerja.
Sehingga penting bagi pemerintah daerah untuk menaruh perhatian yang lebih besar terhadap kinerja pengelolaan keuangan daerah. Pengelolaan keuangan daerah yang dilakukan secara ekonomis, efisien, dan efektif atau memenuhi prinsip value for money serta partisipatif, transparansi, akuntabilitas dan keadilan akan dapat mendorong pertumbuhan ekonomi serta kemandirian suatu daerah. Dengan demikian maka suatu daerah yang kinerja keuangannya dinyatakan baik berarti daerah tersebut memiliki kemampuan keuangan untuk membiayai pelaksanaan otonomi daerah. Makalah ini bertujuan untuk mengetahui kinerja pengelolaan keuangan daerah dan tingkat kemandirian Pemerintah Daerah Kota Palangkaraya berdasarkan analisis Rasio Keuangan mulai dari pra OTDA, OTDA, pasca OTDA.
Kemampuan keuangan suatu daerah dapat dilihat dari besar kecilnya Pendapatan Asli Daerah (PAD) yang diperoleh daerah yang bersangkutan. Dalam kaitannya dengan pemberian otonomi daerah yang lebih besar kepada daerah. PAD selalu dipandang sebagai salah satu indikator atau kriteria untuk mengukur ketergantungan suatu daerah kepada pusat. Pada prinsipnya semakin besar sumbangan PAD kepada APBD maka akan menunjukkan semakin kecil ketergantungan daerah kepada pusat sebagai konsekuensi pelaksanaan otonomi daerah dari prinsip secara nyata dan bertanggung jawab.
Analisis keuangan adalah usaha mengidentifikasi ciri-ciri keuangan berdasarkan laporan keuangan yang tersedia. Dan Analisis rasio keuangan pemerintah terdiri dari:
  1. Rasio kemandirian keuangan daerah;
  2. Rasio Efektivitas dan Efisiensi PAD
  3. Debt Service Coverage Ratio (DSCR)
  4. Rasio Aktivitas
  5. Rasio Pertumbuhan
  6. Rasio Kontribusi

 Adapun pihak yang berkepentingan dengan rasio keuangan pada APBD adalah:
  1. DPRD sebagai wakil dari pemilik daerah (masyarakat).
  2. Pihak eksekutif sebagai landasan dalam menyusun APBD periode selanjutnya
  3. Pemerintah pusat/provinsi sebagai bahan input (masukan) dalam membina pelaksanaan pengelolaan keuangan daerah.
  4. Masyarakat dan kreditur, sebagai pihak yg akan turut memiliki saham pemda, bersedia memberikan pinjaman atau membeli obligasi.

Rasio Kemandirian Keuangan Daerah
                                PENDAPATAN ASLI DAERAH
RASIO KEMANDIRIAN =              
                                                           BANTUAN PEM PUSAT/ PROVINSI  DAN PINJAMAN
Rasio kemandirian menggambarkan ketergantungan daerah terhadap sumber dana eksternal. Semakin tinggi rasio kemandirian mengandung arti bahwa tingkat ketergantungan daerah terhadap bantuan pihak eksternal (terutama pemerintah pusat dan provinsi) semakin rendah dan demikian pula sebaiknya. Rasio kemandirian juga menggambarkan tingkat partisipasi masyarakat dalam pembangunan daerah. Semakin tinggi rasio kemandirian, semakin tinggi partisipasi masyarakat dalam membayar pajak dan retribusi daerah akan menggambarkan tingkat kesejahteraan masyarakat yang tinggi.


Tabel 1 Analisis Rasio Kemandirian Keuangan Daerah Kota Palangkaraya
Bantuan Pemerintah Pusat/ Provinsi  dan pinjaman
Rasio Kemandirian
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)
Semakin tinggi rasio kemandirian berarti tingkat ketergantungan pemerintah daerah terhadap bantuan pihak eksternal semakin rendah, semakin tinggi ratio kemandirian, semakin tinggi partisipasi masyarakat dlm membayar pajak dan retribusi daerah, yang merupakan komponen utama pendapatan asli daerah.
Berdasarkan rasio kemandirian keuangan diatas kemampuan pemerintah daerah dalam dalam membiayai sendiri kegiatan pemerintahan, pembangunan dan pelayanan kepada masyarakat pada era sebelum atau pra OTDA mengalami penurunan sebesar 58% dari tahun sebelumnya, hal ini menunjukan kemampuan kemandirian pemerintah daerah saat itu masih rendah dan disebabkan pemerintah kota Palangkaraya masih bertumpu pada dana transfer dari pemerintah seperti pos dana bagi hasil pajak pendapatan, pos bagian sumbangan, pos bagian penerimaan pembangunan saat itu sangat besar. Pada era OTDA rasio kemandirian mengalami peningkatan, hal positifnya  transfer pemerintah pusat dan provinsi berkurang lebih dari 50% dari era sebelum OTDA namun tidak diimbangi dengan realisasi PAD yang mengalami peningkatan meskipun kemudian pada tahun 2000 rasio kemandirian mengalami penurunan namun tidak signifikan. Pasca OTDA dari tahun 2001 sampai 2012 kenaikan dan penurunan masih tidak terlalu menunjukan hal yang signifikan meskipun dari tahun ke tahun realisasi PAD mengalami peningkatan serta bantuan pemerintah pusat dan provinsi juga semakin besar, partisipasi masyarakat dalam membayar pajak dan retribusi daerah namun masih belum bisa menutupi dana transfer dari pusat dan provinsi.
Rasio Efektivitas
Rasio Efektivitas menggambarkan kemampuan pemerintah daerah dalam merealisasikan pendapatan asli daerah yang direncanakan dibandingkan dengan target yang ditetapkan berdasarkan potensi riil daerah. Semakin tinggi rasio efektivitas, menggambarkan kemampuan daerah yang semakin baik.

Tabel 2 Analisis Rasio Efektivitas APBD Kota Palangkaraya
Rasio Efektivitas
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)
Kemampuan daerah dikategorikan efektif jika ratio efektifitas yang  dicapai minimal 100 %, semakin tinggi semakin baik.

Berdasarkan rasio efektivitas diatas pengelolaan keuangan daerah pada era sebelum OTDA naik cukup signifikan lebih dari 28%  hal ini cukup baik artinya berjalan dengan efektif, realisasi PAD lebih besar dari target PAD. Pada masa OTDA  rasio efektivitas turun kembali ke tingkat rasio semula yaitu 110,05% dan semakin turun hingga ke tingkat rasio 102,56% namun masih relatif efektif. Pada era pasca OTDA pengelolaan keuangan daerah berjalan tidak efektif selama beberapa tahun, rata-rata penurunannya pada tingkat rasio 97,84% artinya realisasi PAD tidak mencapai target ada penurunan realisasi pada beberapa pos-pos PAD seperti pajak dan retribusi daerah, Realisasi PAD yang positif efektif ada di kisaran tahun 2005 sampai dengan 2007.

Rasio Aktivitas
Rasio ini menggambarkan bagaimana pemerintah daerah memprioritaskan alokasi dananya pada belanja rutin dan belanja pembangunan secara optimal. Semakin tinggi persentase dana yang dialokasikan untuk belanja rutin berarti persentase belanja investasi (belanja pembangunan) yang digunakan untuk sarana prasarana ekonomi masyarakat cenderung semakin kecil. Rasio aktivitas ini menggambarkan atau mengukur aktivitas dan yang digunakan dalam kegiatan di daerah.Debt Service Coverage Ratio (DSCR) merupakan perbandingan antara jumlah PAD, bagian Daerah (BD) dari pajak bumi dan bangunan, Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB), penerimaan sumber daya alam, dan bagian daerah lainnya serta Dana Alokasi Umum (DAU) setelah dikurangi Belanja Wajib (BW), dengan pemjumlahan angsuran pokok, bunga, biaya pinjaman lainnya yang jatuh tempo.


Tabel 4 Analisis Rasio Aktivitas APBD Kota Palangkaraya
Belanja Wajib
Pembayaran Bunga dan Pokok Pinjaman
Debt Service Covarege Ratio
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)
  1. Ketentuan yang menyangkut persyaratan
a.       Jumlah kumulatif pinjaman daerah yang wajib dibayar maksimal 75% dari penerimaan pad tahun sebelumnya
b.      Debt service coperage ratio (DSCR) minimal 2,5

  1. Ketentuan yang menyangkut penggunaan pinjaman
a.       Pinjaman jangka panjang digunakan untuk membiayai pembangunan yang  dapat menghasilkan penerimaan kembali untuk pembayaran pinjaman dan pelayanan masyarakat
b.      Pinjaman jangka pendek untuk pengaturan arus kas

  1. Ketentuan yang menyangkut prosedur
a.       Mendapat persetujuan dari dprd
b.      Dituangkan dalam kontrak

Berdasarkan DSCR diatas pada masa pra OTDA berada diatas 2,5x yaitu 5,31 artinya bisa dikatakan kinerja keuangan daerah saat itu bisa dikatakan baik, meskipun tidak ada DAU namun besarnya penerimaan bagi hasil pajak bumi dan bangunan, Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB), penerimaan sumber daya alam, dan bagian daerah lainnya bisa menutupi. Kenaikan yang sangat signifikan Bagian Daerah (BD) mencapai 83% dan Belanja Wajib mencapai 85%  namun tidak didukung oleh ketiadaan pembayaran bunga dan pokok pinjaman. Pada masa OTDA, kinerja keuangan kondisinya kurang baik karena hasilnya dibawah 2,5x yaitu -56,11 dan -45,81 hal ini dikarenakan penurunan realisasi BD dari tahun sebelumnya serta terlalu besar biaya yang digunakan untuk belanja pegawai serta tidak adanya DAU akibatnya pemerintah daerah tidak dapat mengoptimalkan alokasi dananya pada belanja rutin dan belanja pembangunan. Pada masa pasca OTDA baru mulai diperkenalkan dalam dana perimbangan yaitu Dana Alokasi Umum (DAU) yang bersumber dari APBN sehingga DSCRnya bisa tertutupi dan kinerja keuangan berjalan dengan baik. Pada tahun 2001 ke 2002 DSCR naik menjadi 53,46, tidak dibarengi dengan tahun 2003-2006 karena tidak mempunyai pembayaran bunga dan pokok pinjaman, namun kenaikan yang cukup signifikan pada tahun 2007 yaitu nilai rasio DSCR sebesar 444 dikarenakan besarnya jumlah realisasi BD sebesar Rp 333.165.081.547,00 yang merupakan bagi hasil pajak dan bagi hasil bukan pajak. Hingga pada tahun 2008 s/d 2012 mengalami penurunan nilai rasio DSCR dan penurunan yang cukup signifikan yaitu terjadi pada tahun 2011 penurunan sebanyak 93% dari tahun sebelumnya menjadi 15,27 meskipun naik kembali 45.14 hal ini disebabkan membengkaknya belanja bunga dan pokok pinjaman sehingga kondisi ini dikhawatirkan dapat mengganggu kinerja keuangan daerah.
Rasio Pertumbuhan
Rasio pertumbuhan (growth ratio) mengukur seberapa besar kemampuan pemerintah daerah dalam mempertahankan dan meningkatkan keberhasilannya yang telah dicapai dari periode ke periode berikutnya. Dengan diketahuinya pertumbuhan untuk masing-masing komponen sumber pendapatan dan pengeluaran, dapat digunakan untuk mengevaluasi potensi-potensi mana yang perlu mendapat perhatian.

Tabel 5 Analisis Rasio Pertumbuhan APBD Kota Palangkaraya
RPPAD Xn – X n-1
Rasio Pertumbuhan
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)
Rasio ini mengukur seberapa besar kemampuan pemda dalam mempertahankan dan meningkatkan keberhasilan yang telah dicapainya dari periode ke periode berikutnya dilihat dari realisasi pendapatan daerah.
Berdasarkan rasio pertumbuhan PAD diatas pertumbuhan APBD kota Palangkaraya pada era pra OTDA mengalami pertumbuhan yang sangat signifikan hal ini terlihat dari kenaikan sebesar 85% dari realisasi PAD tahun sebelumnya menunjukan bahwa ada kenaikan dan meningkatnya minat masyarakat akan membayar pajak dan retribusi daerah sehingga membantu meningkatkan laju perekonomian daerah dan kinerja keuangan daerah berjalan positif. Namun hal ini tidak didukung realisasi PAD pada masa OTDA, penurunan drastis disebabkan pos pajak dan retribusi daerah dan pos lain termasuk dalam PAD tidak mengalami peningkatan sehingga rasio pertumbuhan keuangan daerah menjadi negatif, pada tahun 2000 tingkat pertumbuhan mulai merangkak positif naik ke tingkai nilai rasio pertumbuhan 5%. Pada masa pasca OTDA dari tahun 2001 sampai dengan tahun 2007 trend tingkat rasio pertumbuhan mulai stabil, kenaikan yang cukup signifikan terjadi pada tahun 2002 hampir 40% pendapatan terserap melalui pajak dan retribusi daerah dan hal ini sangat menguntung kan pemda Palangkaraya untuk meningkatkan kinerja keuangannya. Tingkat pertumbuhan realisasi PAD dengan nilai negatif ada pada tahun 2008 dan 2009, namun ditahun 2009 terlihat usaha pemda kota Palangkaraya untuk menurunkan nilai rasio pertumbuhan menjadi dari -11% menjadi -2%, hingga 2010 dan2011 realisasi PAD meningkat meskipun ditahun 2012 penurunan PAD  namun tidak terlalu signifikan.
Rasio Kontribusi
Rasio kontribusi ini untuk mengetahui seberapa besar kontribusi penerimaan komponen dalam PAD terhadap pendapatan asli daerah setiap tahunnya dalam persentase, dapat dihitung dari realisasi jumlah pajak / retribusi daerah dibandingkan dengan jumlah PAD pada tahun anggaran yang sama.

Tabel 6 Analisis Rasio Kontribusi APBD Kota Palangkaraya
Pajak Daerah
Retribusi daerah
Rasio Kontribusi
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)
Hasil rasio keuangan tersebut selanjutnya akan digunakan untuk tolak ukur dalam:
  1. Mengukur efektifitas dalam merealisasikan pendapatan daerah.
  2. Melihat pertumbuhan / perkembangan perolehan pendapatan yang terjadi selama periode waktu tertentu.
  3. Mengukur kontribusi masing-masing sumber pendapatan dalam pembentukan pendapatan daerah.

Rasio kontribusi diatas menunjukan bahwa pada masa pra OTDA kenaikan realisasi PAD, pajak dan retribusi daerah tidak diimbangi oleh nilai rasio kontribusi hal ini dikarenakan kenaikan pajak dan retribusi daerah masing-masing kenaikannya hanya 28% dari tahun sebelumnya, sehingga dapat dikatakan pada saat itu pajak dan retribusi daerah kontribusinya masih kurang dalam meningkatkan PAD. Pada era OTDA rasio kontribusi mengalami peningkatan cukup signifikan 88.37% namun kontribusi retribusi sangat kurang turun 43% dari tahun sebelum OTDA kemudian mengalami penurunan kembali ditahun 2000 turun 10% dan kontibusi pajak daerah juga megalami penurunan ditahun 2000 namun tidak terlalu signifikan. Pasca OTDA trendnya rasio kontribusi fluktuatif meskipun PAD  relatif mengalami peningkatan, sektor pajak dan retribusi daerah juga mengalami peningkatan. Pada tahun 2007 s/d 2008 nilai rasio kontribusi kurang optimal meskipun kenaikan dari pajak dan retribusi daerah signifikan. Pada tahun 2001 dan 2011 rasio kontribusi menunjukan nilai yang optimal 91,42% dan 91,68% bisa dikatakan pada tahun tersebut kontribusi pajak dan retribusi daerah sangat besar. Rata-rata nilai rasio kontribusi 81% hal ini menunjukan bahwa pada era pasca OTDA kinerja keuangan daerah relatif stabil peningkatan PAD diimbangi dengan kontribusi pajak dan retribusi daerah.
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)

Grafik 2
Sumber: Data didapat dari Dinas Pendapatan, Pengelolaan Keuangan, dan Aset Kota Palangkaraya (diolah)

Kinerja Keuangan Daerah Pra OTDA (1997/1998)
Rasio kemandirian pada masa pra OTDA relatif  kecil seperti pajak daerah, retribusi daerah laba badan usaha milik daerah pos penerimaan dari dinas-dinas, karena pendapatan PAD belum dapat dinikmati sepenuhnya oleh daerah karena masih tersedot kepusat,  rasio efektivitas mengalami peningkatan karena masih diatas 100% dan realisasi PAD lebih besar dibandingkan target yang direncanakan daerah.  Rasio aktivitas dimana alokasi dananya pada belanja rutin dan belanja pembangunan belum optimal karena konteksnya pada saat itu tidak ada DAU bantuan pemerintah saat itu masih dalam bentuk pos Bagian Sumbangan dan Bantuan serta Bagian Penerimaan Pembangunan. Rasio pertumbuhan mengalami peningkatan yang signifikan kontribusi pajak dan retribusi daerah besar dan keberhasilan kinerjanya masih bisa dipertahankan. Rasio kontribusi masih stabil tapi tidak dapat mengimbangi kenaikan rasio pajak dan retribusi daerah yang menopang realisasi PAD
Penyelenggaraan pemerintah daerah saat itu mengacu pada UU No.5 tahun 1974 dan UU No.5 tahun 1979 yang sifatnya masih otonomi yang diharapkan pemerintah pusat kepada daerah, saat tahun tersebut era pemerintahan Orde Baru yang menuju masa transisi yang sistem pemerintahannya terpusat atau sentralisasi dan belum ada pemerataan perekonomian ke semua wilayah. Meskipun dalam peraturan terdapat asas pembantuan, asas dekonsentrasi dan asas desentralisasi dimana urusan yang diserahkan sebagai pelaksanaan asas desentralisasi akan tetapi tanggung jawab terakhir terhadap urusan tersebut tetap berada ditangan pemerintah pusat dan ADRT daerah tetap diatur oleh pemerintah. Hal ini menunjukan bahwa selama itu pemerintah pusat tidak berani melepaskan secara sifat daerah yang dikatakan otonom dan memberikan bukti bahwa kinerja keuangan daerah saat itu kondisinya labil meskipun masih berjalan tapi tetap pengelolaan terakhir dipegang pemerintah pusat sehingga semua kekayaan daerah lebih banyak dinikmati pusat.
Kinerja Keuangan Daerah OTDA (1999/2000)
Rasio kemandirian pada masa OTDA mengalami penurunan begitu juga dengan realisasi PAD dan bantuan pemerintah dan provinsi dari tahun sebelum OTDA penyerapan dana ini memunculkan pos baru seperti Pos Subsidi Daerah Otonom dan beberapa pos yang berganti nama. Rasio efektivitas meskipun mengalami penurunan setelah tahun sebelum OTDA namun realisasi PAD lebih besar dibandingkan target PAD diatas 100% kinerja keuangan daerah saat itu sangat efektif. Rasio aktivitas kinerja keuangan negatif artinya masih dalam kondisi ketimpangan kemampuan keuangan daerah karena pada saat masih belum ada DAU karena saat itu yang penyerapan dana di pos Subsidi Daerah Otonom  yang nantinya digantikan oleh Dana Alokasi Umum (DAU) hal ini menunjukan bahwa prioritas alokasi dananya pada belanja rutin dan belanja pembangunan belum optimal. Rasio pertumbuhan menunjukan bahwa realisasi PAD berkurang dari tahun sebelumnya sehingga menyebakan nilai rasio pertumbuhannya negatif artinya pemda tidak mampu menunjukan kinerja keuangan yang berdampak baik karena tidak bisa mempertahankan dan tidak mampu melanjutkan keberhasilan realisasi PAD dari tahun sebelumnya. Rasio kontribusi menunjukan kontribusi dari retribusi daerah masih minim karena tidak mampu menembus diatas 1 M, namun melalui rasio kontribusi kinerja keuangan daerah masih relatif stabil.
Pada tahun 1999 merupakan masa peralihan dari orde baru ke era reformasi pembenahan diberbagai bidang mulai dilakukan, masing-masing diberikan otonomi yang seluasnya untuk mengelola kekayaan daerahnya masing-masing. Pergantiaan peraturan yaitu diberlakukannya UU no.22 tahun 1999 pemberian kewenangan otonomi kepada daerah kabupaten dan kota desentralisasi dalam wujud otonomi yang luas nyata dan bertanggung jawab dalam kewenangan yang luas selain dibidang politik luar negeri, pertahanan, keamanan peradilan,moneter, agama, fiskal dan kewenangan bidang lain yang tidak termasuk bagian kewenangan daerah yang diatur undang-undang. Pada saat itu kondisi perekonomian Indonesia menunjukan adanya perbaikan laju PDB mulai merangkak positif  dengan laju pertumbuhan hampir mencapai 5%. Selain pertumbuhan PDB, laju inflasi dan tingkat suku bunga (SBI) juga rendah, mencerminkan bahwa kondisi moneter di dalam mengerti sudah mulai stabil. Meskipun skala nasional stabilitas moneter mulai berjalan namun kinerja keuangan daerah kota Palangkaraya masih belum stabil karena banyak pembenahan secara reformasi didareah-daerah memperkuat otonominya masing.

Kinerja Keuangan Daerah Pasca OTDA (2001/2012)
Rasio kemandirian daerah pasca OTDA fluktuasi berjalan relatif stabil dalam artian dari tahun ke tahun daerah sudah bisa meningkatkan realisasi PAD hal tersebut diimbangi dengan pemberian bantuan dari pemerintah pusat/provinsi tingkat rasio kemandirian fluktuatif.dan perubahannya pun tidak signifikan. Rasio efektivitas berfluktuatif terhadap realisasi PAD, nilai rasio menunjukan tahun 2001 dan 2002 cukup efektif, tahun 2003 nilai rasio tidak efektif  karena < dari 75%, sebaliknya nilai rasio tahun 2005-2007 sangat efektif, namun secara keseluruhan kinerja keuangan dilihat dari rasio efektivitas cukup efektif. Rasio Aktivitas didukung oleh adanya Dana Alokasi Umum sehingga kontribusinya signifikan selama beberapa periode, jika pembiayaan kondisi defisit maka daya dukung realisasi PAD dan dana pemberian pemerintah bisa menutupi belanja wajib dan kesanggupan pemda untuk tidak memakai hutang jangka panjang untuk membiayai belanja daerah.Meskipun di dukung DAU namun selama tahun 2003-2006 tidak ada pembayaran bunga dan pokok pinjaman, sedangkan pada tahun 2007-2010 nilai rasio DSCR sangat tinggi berarti priorotas dana ditujukan untuk belanja pembangunan Pinjaman jangka panjang digunakan untuk membiayai pembangunan yang  dapat menghasilkan penerimaan kembali untuk pembayaran pinjaman dan pelayanan masyarakat. Namun pada tahun 2011 dan 2012 nilai DSCR turun drastis prioritas dana kembali ditujukan untuk belanja rutin dibandingkan dengan belanja pembangunan. Rasio pertumbuhan menunjukan hasil yang fluktuatif, sempat beberapa kali nilai rasio pertumbuhannya negatif seperti ditahun 2008, 2009 dan 2012 pemda masih belum dapat meningkatkan kemampuan dalam mempertahankan dan meningkatkan keberhasilan yang telah dicapainya selama beberpa periode, meskipun begitu kenaikan realisasi PAD stabil. Rasio kontribusi cenderung fluktuatif dan selama beberapa periode menujukan bahwa kontribusi pajak dan retribusi cukup efektif.

UU No.22 Tahun 1999 tentang pemerintah daerah dan UU No.25 Tahun 1999 tentang perimbangan keuangan pusat lalu disusul dengan PP No.25 Tahun 2000 tentang kewenangan pemerintah dan kewenangan propinsi sebagai daerah otonom menjadi tolak ukur bagi pemda kota Palangkaraya untuk melaksanakan kinerja keuangan daerah secara transparan dan akuntabilitas sehingga pemda diberi kesempatan untuk melaksanakan kewenangan untuk menggali potensi alam dan menggali sumber keuangan maupun PAD. Meskipun PAD secara umum meningkat, namun persentasenya terhadap total penerimaan masih di bawah 10%. Proyeksi Keberhasilan Terwujudnya akuntabilitas publik dalam penyelenggaraan pemerintahan yang bebas dari KKN. Aparatur pemerintah yang profesional, bertanggung jawab dan memiliki kopetensi yang sesuai dengan bidang tugasnya. Meningkatnya sumbangan PAD dalam total penerimaan APBD dan tercapai/terlampauinya target yang ditetapkan dalam RPJM. Pemerintah kota Palangkaraya mampu menunjukkan kinerja yang sesuai dengan harapan ditetapkannya sebagai salah- satu daerah percontohan penerapan good governance. Maka Kinerja Keuangan pemda kota Palangkaraya relatif stabil.

Daftar Pustaka