* Corresponding author.
E-mail address: frida.sumual@gmail.com (F. M. Sumual)
© 2021 by the authors; licensee Growing Science, Canada
doi: 10.5267/j.ac.2021.4.022
Accounting 7 (2021) 1751–1756
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Accounting
homepage: www.GrowingScience.com/ac/ac.html
Revisiting the determinants of local government performance
Frida Magda Sumual
a,b*
, David Paul Elia Saerang
a
, Herman Karamoy
a
and Hendra N. Tawas
a
a
Faculty of Economics and Business, Universitas Sam Ratulangi, Indonesia
b
Faculty of Economics and Business, Universitas Negeri Manado, Indonesia
C H R O N I C L E A B S T R A C T
Article history:
Received: January 12, 2021
Received in revised format:
April 8 2021
Accepted: April 22, 2021
Available online:
April 22, 2021
This present study intends to analyze the factors affecting the performance of the local government
of North Sulawesi. The population of this study includes the members of the Regional People’s
Representative Assembly and the leaders of Regional Apparatus Organizations managing the
Regional Revenue and Expenditure Budget (APBD). Those Regional Apparatus Organizations
include Education and Culture Office, Health Office, Regional Revenue Service, Tourism Office,
Public Works Office, and Auditor Inspectorate of North Sulawesi Province. The sampling technique
used is the saturated sampling technique. Data collection techniques employed consist of an
interview, documentation study, and questionnaire dissemination. The analysis is conducted using
Partial Least Square (PLS). Based on the analysis, we found that public participation has a significant
effect on the transparency of financial management; the internal control system has a significant
effect on local government performance; the internal control system has a significant effect on public
accountability; the internal control system has a significant effect on the quality of financial reports,
and public accountability has a significant effect on the performance of local governments. However,
public participation has no significant effect on local government performance; public participation
has no significant effect on public accountability; public participation has no significant effect on the
quality of financial reports; the internal control system has no significant effect on financial
management transparency; financial management transparency has no significant effect on local
government performance, and the quality of financial reports has no significant effect on local
government performance. This study also reveals that public accountability is the mediating variable
between the internal control system and local government performance.
© 2021 by the authors; licensee Growing Science, Canada
Keywords:
Public participation
Internal control system
Financial management transparency
Public accountability
Quality of financial reports
Local government performance
1. Introduction
All local governments in Indonesia are responsible for conducting good governance (Good Government Governance) in every
activity. Every program they run is expected to result in optimum results. A local government is said to have a good performance
if it can create social welfare. The local government’s performance must be measured, so the public will know how the
government carries out its responsibilities. Performance measurement is a systematic process for assessing the planned activity
programs, whether they have been appropriately implemented, and whether the government has achieved the set targets. In
North Sulawesi (Sulut) Province, which is the object of this study, Manado Municipal Government was the only local
government granted a “BB” rating for its Government Agency Performance Accountability System (SAKIP) in 2019. That