Determination of the Performance of Local Governments with Audit Opinions as Moderation Variables in South Sumatra

Abstract

With a case study on the Regency / City Government in South Sumatra, this study tries to establish the factors that influence local government performance using Audit Opinion as a moderating variable. The Regional Financial Independence Ratio is used to assess local government performance (RKKD). This study focuses on the districts and cities of South Sumatra, which include 14 districts and three cities. The research period is from 2016 to 2020, and the data used is secondary data. The study's findings show that regional original income and transfer funds have a positive and significant effect on local government performance, with audit opinion as a moderating variable. According to the findings of this study, the bigger the influence of PAD and Transfer Funds on the RKKD, the higher the audit opinion score. This is due to the fact that the BPK has conducted an audit in the area. This is due to the existence of an audit by the BPK in the form of an audit opinion so that transparency and accountability of state finances can be realized. In addition, the audit opinion is also a form of assessment of whether the government has worked economically, effectively and efficiently.