Analysis of the Financial Report of Pegunungan Bintang, Papua Province

Aims: This study aims to examine Financial Audit Agency's (BPK) opinion in the Audit Results Report on the accountability of Local Government Financial Reports (LKPD) in Pegunungan Bintang for solutions to regional governments to develop regional Vision & Mission.

Study Design: This study uses quantitative data. Quantitative data, namely data that can be measured in the form of numbers. This study analyzes and make observation in the field about findings violations against the Pegunungan Bintang District Governments.

Place and Duration of Study: This research was conducted in Pegunungan Bintang, Papua Province, namely during the 2011 – 2014 LHP (Inspection report) period. This research was carried out from September 2016 to January 2016. The choice of research location was in Pegunungan Bintang District because until 2015 there had never been an unqualified audit opinion and the availability of sources data.

Methodology: Analytical method is used to see the impact of the Weaknesses of the Internal Control System and the influence of Compliance with Laws, this study uses descriptive statistical analysis tools. Quantitative data used in this study are; cases of weaknesses in the accounting control system, weaknesses in the budget control system; structural control system weaknesses; regional loss; regional loss potential; lack of acceptance; inefficiency; administration; ineffectiveness; and inefficiency.

Results: Based on results BPK audit is available a number of findings violation to Statement Standard Accountancy Governance (PSAP), ineffectiveness System Internal Control (SPI) and non-compliance to legislation exists things to be reason discrepancy with SAP, ineffectiveness System Internal Control (SPI) and non-compliance to applicable laws.

Conclusion: Non-compliance with SPI is measured using 3 (three) key indicators: Weaknesses in the accounting and reporting control system; Weaknesses in the control system for the implementation of the revenue and expenditure budget; and Weaknesses in the internal control structure. The number of cases of non-compliance with SPI has an increasing trend every year. These increasing changes occurred starting in 2011, namely as many as 104 cases, and continued to increase until 2016, reaching 261 cases. This means that the findings from the BPK are of less concern to the government in following up on these results. Another indication of the results of the graph above reflects that the management of BPK findings by the Pegunung Bintang District Government was not optimal in improving Opinions on LKPD.