E-Government, Audit Opinion, and Performance of Local Government Administration in Indonesia

Abstract

Local governments (LGs) have an important role in providing services to the community. Nevertheless, some local governments still show relatively low performance. Scores of e-government implementation and audit opinions obtained by some local governments are also relatively low. This study examines whether there are relationships between e-government, the dimensions of e-government, and audit opinion and the performance of the local government administration. There are five dimensions of the e-government i.e. policy, institutions, infrastructure, applications, and planning. The sample used in this study includes 246 local governments from 2012 to 2014. Using regression analysis, the results of this study show that e-government has a positive association with the performance of the local government administration. This is supported by the positive association of e-government's dimensions with performance. The audit opinion is also positively associated with performance as expected. These results suggest that e-government and audit opinion can be used as indicators of the performance of local government administration. AbstractLocal governments (LGs) have an important role in providing services to the community. Nevertheless, some local governments still show relatively low performance. Scores of egovernment implementation and audit opinions obtained by some local governments are also relatively low. This study examines whether there are relationships between e-government, the dimensions of e-government, and audit opinion and the performance of the local government administration. There are five dimensions of the e-government i.e. policy, institutions, infrastructure, applications, and planning. The sample used in this study includes 246 local governments from 2012 to 2014. Using regression analysis, the results of this study show that egovernment has a positive association with the performance of the local government administration. This is supported by the positive association of e-government's dimensions with performance. The audit opinion is also positively associated with performance as expected. These results suggest that e-government and audit opinion can be used as indicators of the performance of local government administration. JEL Classification: M48Keywords: e-government, audit opinion, the performance of local government administration INTRODUCTIONLocal governments (LGs) have the duty to perform the task of providing high-quality services to the communities in their respective regions. In order for these tasks to be carried out, high-quality local government administration is required. To find out the results of the implementation of these tasks, the evaluation of local governmental performance is done annually through the Decree of the Minister of Home Affairs on the Determination of Rating and Performance Status of Local Government Administration. The overall performance score ranges from 0 to 4. Local governments are expected to provide the high-quality of services to community indicated...

The Effects of Local Government Characteristics and Audit Opinion on the Performance of District and City Governments in Indonesia

“…Audit opinion had relevance to district and city financial performance meant that the audit opinion of a good district and city was perceived as an indicating of a good financial performance too. The results of this study were in line with Sutopo, Wulandari, Adiati, & Saputra (2017) which shows the audit opinion has a positive effect on the performance of local government implementation and means audit opinion can be used as an indicator of the performance of local government, but the results of this study was not in line with the results of research conducted by Ilmiyyah et al 2017and Marfiana & Kurniasih (2013) that audit opinion did not affect the financial performance of district and city. Table 4 shows the F value of 17.182 > F table value of 2.01.…”

Key elements of local government transparency in new public governance

“…Based on the results of this study, it is natural that the audit opinion obtained by the government does not have a significant positive effect on the implementation of the Internet Financial Local Government Reporting in Indonesia. This study is not in line with Junaidi and Hartono (2010) and Sutopo et al (2017).…”

“…Some considerations for expressing audit opinions are deficiencies in the internal control system, non-compliance with regulations and laws, and non-compliance with Government Accounting Standards (Pamungkas et al, 2018). Suwanda (2015), Dewata et al (2018), and Sutopo et al (2017) show that an audit opinion is positively related to the performance of local government administration. Local governments that get a fair opinion will tend to publish financial reports via the Internet to inform about good and accountable financial management quality.…”

Performance Audit: Importance and Prospects within the Public Financial Control System

“…В международной практике аудит эффективности выступает неотъемлемой частью осуществления внешнего государственного финансового контроля. В Канаде государственный аудит осуществляется Управлением генерального ревизора (Office of the Auditor General of Canada) 4 , который является членом парламента. Деятельность данного института основана на законе о генеральном ревизоре, в котором указываются права и обязанности, порядок поступления на должность и другие положения, и на законе о финансовом управлении.…”

“…Аудит эффективности использования государственных ресурсов -это современная форма финансового контроля [4]. Она позволяет пересматривать обоснованность и рациональность использования бюджетных средств.…”