2007年-世界发展银行全球_Public_Financial_Managment_in_Aceh___Measuring_Financial_Management__Performance_in_Acehs_Local_Governments_94页_780kb

Summary of Public Financial Management in Aceh's Local Governments

Core Content

This report evaluates the financial management capacity of local governments in Aceh, Indonesia, using a Public Financial Management (PFM) framework developed by the World Bank in collaboration with the Ministry of Home Affairs. The survey was conducted between May and November 2006, covering all 21 local governments and the provincial government. The findings reveal significant variation in financial management performance across Aceh's districts, highlighting areas of strength and weakness.

Main Points

• Financial Management Capacity: There is a wide variation in the capacity of local governments to manage finances effectively. Some governments perform well, while others are significantly underperforming.
• PFM Framework: The framework assesses financial management in nine strategic areas: regulatory framework, planning and budgeting, cash management, procurement, accounting and reporting, internal audit, public debt and investment, asset management, and external audit and oversight.
• Scoring System: Each strategic area is evaluated using a set of indicators, with responses rated as 'yes' or 'no'. The overall score for each local government is an average of these nine areas, with a percentage score indicating performance levels.
• Performance Outcomes: The average PFM score across all 21 local governments is 41%. Aceh Utara scores the highest at 69%, while Aceh Jaya scores the lowest at 15%. Only one local government (Aceh Utara) scores above 60%, and nine score below 40%.
• Key Weaknesses: The report identifies particular weaknesses in accounting and reporting, cash management, and external audit. These areas require focused improvement efforts.
• Factors Affecting Performance: Poor financial management outcomes are attributed to various factors including the presence of acting bupatis, staff quality in remote areas, historical conflict, tsunami impact, and previous mismanagement.

Key Strategic Areas and Indicators

The PFM framework includes nine strategic areas, each with one to five outcomes and corresponding indicators:

1. Regulatory Framework
2. Planning and Budgeting
3. Cash Management
4. Procurement
5. Accounting and Reporting
6. Internal Audit
7. Public Debt and Investment
8. Asset Management
9. External Audit and Oversight

Each area is scored based on the number of 'yes' responses to its indicators. The overall score is calculated as an average of these nine areas.

Survey Methodology

• Survey Stages: The survey was conducted in three stages, involving 21 local governments and the provincial government.
• Participating Entities: Researchers from four Indonesian universities (UNSYIAH, USU, UNHAS, Andalas) and contracted Aceh NGOs conducted the surveys.
• Data Collection: Data was gathered through interviews and focus group discussions with local government representatives. Responses were verified with documentation or cross-checked with other respondents.
• Scoring Guide: Scores are categorized as follows:
  • 81-100%: Excellent/Fully acceptable
  • 61-80%: Good/Substantially acceptable
  • 41-60%: Moderate/Partially acceptable
  • 21-40%: Poor/Substantially unacceptable
  • 0-20%: Very poor/Unacceptable

Detailed Results

• Aceh Utara scores the highest at 69%.
• Aceh Jaya scores the lowest at 15%.
• The average score for all local governments is 41%, with most performing poorly.
• Procurement and Internal Audit show the highest average scores (60% and 52%, respectively).
• Public Debt and Investment and Cash Management have the lowest average scores (28% and 35%, respectively).

Key Issues and Policy Implications

• Need for Institutionalization: Policies and procedures must be not only established but also institutionalized and effectively implemented.
• Capacity Building: Technical assistance and training are essential for improving financial management in local governments.
• Provincial Leadership: The provincial government should take a leading role in developing a province-wide strategy for financial management capacity improvement.
• Incentives for Improvement: Linking financial support (e.g., dana otsus) to performance improvements can encourage better financial management practices.
• Monitoring and Evaluation: Tracking changes in financial management capacity over time will help assess the impact of decentralization and inform policy adjustments.

Conclusion

The PFM survey provides a comprehensive assessment of financial management capacity in Aceh's local governments, revealing that while some perform well, many remain weak. The framework highlights the importance of policy implementation, institutionalization, and external support in improving financial management. It serves as a foundation for future capacity-building efforts and policy interventions aimed at enhancing the effectiveness of local governance in Aceh.