Analysis the Effectiveness of Local Government Financial Management (Study at Local Government in Riau Province)

Abstract

The purpose of this study is to  examine the effect of the implementation of financial accounting system, government internal control system, human resources competence and organizational commitment of the effectiveness of local government financial management in Riau Province. The probability sampling method is used for this study. The respondent are head of department, chief financial officer, and treasurer of department. The  sample used of this study were 354 respondents. Data analyzed in this study is multiple linear regression analysis with SPSS. The result shows that the implementation of local government financial accounting system, government internal control system, human resources competence, and organizational commitment have positive effect on the effectiveness of local government financial management. The test results obtained R2 values of 0,756 which means 75,6% of variables that affect the effectiveness of local government financial management could be explained by the independent variables in this study, while the remaining 39,8% is explained by variables outside the model.

Keywords: system, commitment, human resources, financial management, government, and effectiveness