You are on page 1of 9


The purpose of this study is to determine the effectiveness of budget realization at the Department
Musi Banyuasin Regency Plantation from 2013 to 2015. The data are secondary data budget realization
reports administered by local governments that illustrate the comparison between budget and
realization in one reporting period. The method of analysis used is descriptive method qualitative where
the research is conducted by collecting data, and analyzing the data collected as well as a clear picture in
accordance with the actual situation. Based on the results of analysis and discussion can be it was
concluded that based on the analysis of budget variance in 2013 and 2014 duty musi banyuasin district
plantation can be said to be quite effective. It's just for 2015 percentage achievement only reached
81.51% which automatically can be said to be less effective. Based on the results the calculation of the
effectiveness ratio of spending in 2013 and 2014 is considered quite effective in doing budget
management is 91.17% and 94.71%. This is due to the realization of the budget already reach the set
target. While for the year 2015 considered less effective in melaakukan budget management because it
only reached 81.51%. This is due to the realization of the budget less than the budget target. Keywords:
budget, budget, effectiveness.


A.1 Background Title Selection Accounting

standards are an inner reference preparation of financial statements, on the system governance using
Accounting Standards Government to provide ease in preparation of financial statements. Then every
do the drafting should refer to Statement of Government Accounting Standards (PSAP). Implementation
of PSAP must be implemented so there is uniformity in all governments in Indonesia, be it central
government and local government. Institute the government is generally formed to run service activities
to the wider community and as an organization that has no purpose for profit but for providing services
and improving quality public services to be more efficient and responsive to the needs, potential or
characteristics in their respective areas. Preparation of reports finance based on accounting standards
real government is in order increase the quantity of financial statements, so that the financial
statements in question can increase its credibility and in turn will be able to realize transparency and
accountability of government financial management so good governance can be achieved. A budget is a
written plan about the activities of an organization expressed quantitatively for a period of time
particular and generally expressed in units money, but can also be expressed in units goods. Broadly
speaking the budget is a tool management to achieve goals. So that in the process of drafting required
data and information, both controlled and which is uncontrollable to be material estimate. Budget
Realization Report (LRA) is a very important part in a company / agency, where its function for know the
financial state of a Journal ACSY Polytechnic Sekayu Vol VI, No 2, July - December 2017 2 company /
agency. Budget realization report is the end result of an accounting process, ie data collection and
management activities finance to be presented in report form or other overviews that may be used to
help the wearer in making or make a decision. Financial management also becomes one a very
important thing to do in the Office Perkebunan Kabupaten Musi Banyuasin agar budget set to finance all
needs of the program being run as well the realization can fit that budget set. From the observations of
researchers on Budget Realization Report 2015 at the Service Musi Banyuasin Regency Plantation was
discovered that most of the budget is not reached or exceeding the budget already set. Not achieving
the realization of the budget affect the effectiveness of the realization an analysis is needed to find out
the effectiveness and efficiency of the budget and performance management. Such an analysis can used
as a basis for introspection pengelolah to know which factors affect ineffectiveness and efficiency and
can anticipate in the preparation budget and its realization in the period next.

A.2 Problem Formulation Based

on the description above then the problem which is raised in this study is whether budget realization at
the Plantation Office Musi Banyuasin Regency has been running effectively?

A.3 Scope Issues The scope

of the problem in the study this is the effectiveness of budget realization at the Department of

A.4 Research Objectives and Benefits

A.4.1 Research Objective

Discussion in this study done in order to know how the effectiveness of budget realization at the Musi
Regency Plantation Office Banyuasin.

A.4.2 Research Benefits

This research is expected to be provides benefits:

1. For Researchers, this research can be knowledge and useful in understanding the
effectiveness of budget realization.

2. As input for the Researcher further to refine the research a kind of future.

3. The results of this study are expected to be discourse and references for those who need.


B.1 Definition of Governmental Accounting

According to Halim and Kusufi (2014: 3) states that "Public sector accounting is a process of identifying,
measurement, recording and reporting of transactions economy of an organization or public entity such
as government, NGOs, and others made in order to retrieve information economic decisions by parties

" According Nordiawan (2010: 125) state that: Local Government Accounting System is a series of
procedures ranging from process of data collection, recording, pengikhtisaran, up to reporting finance in
order accountability of APBD implementation which can be done manually or using computer

Based on the above definition, it can be it was concluded that government accounting is one of the
areas of public sector accounting has a series of procedures started from data collection to financial
reporting which can be done manually or computerization.

B.2 Budget

B.2.1 Definition of Budget According

to Halim and Kusufi (2014: 48) "Budget is a document that contains estimates performance, both in the
form of revenue and expenditure, which is presented in monetary size to be achieved at a certain time
period and include past data as a form control and performance appraisal. " According to Republican
government regulations Indonesia No 71 of 2010 on Standards Government Accounting (SAP). (PSAP 01
Budget : attachment 1.02) is "budget represents action guidelines to be implemented government
includes revenue plans, spending, transfers, and financing measured in units rupiah, which are arranged
according to certain classifications systematically for one period.

" According to Bastian (2010: 191) says that, budgets can be interpreted as a package of related
statements estimated revenues and expenses which is expected to happen in one or some future
period. In budget always included data acceptance and expenses incurred in the past. Most
organizations the public sector distinguishes between additional capital and receipts, as well as
additional income and expenses. Based on the above definition, it can be concluded that the definition
of the budget is a plan that has been systematically arranged, which covers all applicable activities for a
period or period of time which will come.

B.2.2 Function of
the Budget Function of budget according to Halim and Kusufi (2014: 48) that is:
1. Planning Tool Public sector budget made to plan the action what will be done
government, how much it costs needed, and how many results obtained from government
spending the. Budget as a tool planning, used for: a. Formulate goals and objectives
policies to fit the vision and defined mission; b. Plan various programs and activities to
achieve organizational goals and alternatives its financing; c. Allocate funds on programs
and activities which have been prepared; and d. Find performance indicators and level of
strategy achievement.
2. Control Tools Budget as an instrument control is used for avoid expenses which is too big
(overspending), too underspending, misappropriation, or the use of which is not should be
(misspending). Budget is a tool to keep an eye on financial condition and implementation
operational programs or activities government. As a tool managerial control, budget the
public sector is used for assure that the government have enough money to fulfill its
obligations. Public sector budget control can be done in four ways that is: a. Compare the
accrual performance with that performance budgeted; b. Calculates the budget gap
(favourable and unfavorable variances); c. Find the cause can be controllable and can not be
controlled (uncontrollable) or a variance; d. Revise the cost standard or target budget for the
year next.
3. Fiscal Policy Tool Through organizational budget the public sector can determine
direction on certain policies. as a tool of fiscal policy government, used for stabilize the
economy and encourage economic growth. Through public sector budget can be seen the
direction of fiscal policy government, so it can made predictions and estimates economy.

4. Political Tools In the public sector, the budget is a political document as form of executive
commitment and top legislative agreement use of public funds for interests. Budget used to
decide priorities and needs finance to a particular priority. Budget is not just a problem
technique, but necessary political skills (political skills), building coalitions, expertise
negotiate, and understanding about sector financial management public by the people public
managers. Therefore, failure to implement the budget will be able to drop leadership and
credibility government.

5. Coordination and Communication Tools Through a budget document comprehensive, a

section or work unit or department is a sub-organization can know what to do by part / other
work units. By therefore, the budget can be done as a means of coordination and
communication between and all part of government.

6. Performance Appraisal Tool Executives performance is assessed based on the achievement

of the target budget, effectiveness and efficiency budget execution. Performance public
managers are judged by some results achieved linked to a budget has been established.
Budget is an effective tool for control and performance appraisal.

7. Motivation tools Budget can be used as a tool to motivate managers and staff to be able
work economically, effectively, and efficient in achieving the target and defined
organizational goals. In order to motivate employees, budget should be challenging but
attainable or demanding but achieveable. The point is the budget target should not be too
high so that can not be fulfilled, but not too low so it is too easy to achieved.

8. Tool Creating Public Space This function only applies to private organizations is a secret
document closed to the public. Society and other non community elements government, such
as NGOs, universities High, Religious Organization, and other community organizations,
should involved in the budgeting process public. Their involvement can be is direct and not
directly. Direct involvement society in prosses budgeting can begin from the planning
process development and plans performance of government (region), while engagement is
not directly through a representative they are in the legislature (DPR / DPRD).

B.2.3 Budget Objectives and Characteristics

Budget Objectives According to Halim and Kusufi (2014: 50) "The budget is a tool to achieve purpose in
order to provide services to the people / people whose purpose is to improve public services and public

" Characteristics of the Budget According to Halim and Kusufi (2014: 50) as following:

1. expressed in financial units

2. Budget generally includes term certain time, one or more year, short-term, or medium term long.

3. Budget contains commitments or the ability of management to achieve the set goals.

4. The budget proposal is reviewed and approved by more authorities high from budgeting.

5. Once compiled, the budget can only be changed under certain conditions.

B.3 Budget Realization Report

B.3.1 Definition of Budget Realization

Report According to Hasanah and Fauzi (2016: 17) "The Budget Realization Report (LRA) presents
resource overview, resource allocation and usage financial power managed by the government center /
region, within a reporting period. The Budget Realization Report consists of LRA revenue, shopping,
transfers, and financing.

" According to Siregar (2015: 82) "Report Budget Realization is a report presents resource overview,
resource allocation and usage cash power managed by the government within a period.

" According to Republican Government regulations Indonesia No. 71 Year 2010 on Standards
Government Accounting (SAP) "Realization Report Budget presents an overview of sources, allocations
and use of managed financial resources by a central / local government illustrates the comparison
between budget and its realization in one reporting period. " Based on the above definition is concluded
that the Budget Realization Report is a report which illustrates the comparison between budget and
realization in one period reporting.

B.3.2 The Benefits of the Budget Realization Report According

to Republican government regulations Indonesia No 71 of 2010 on Standards Government Accounting

(SAP) (PSAP 02 Benefits Budget Realization Report: attachment 1.03) are as follows:

Budget Realization Report provide information about LRA's revenue realization, spending,
transfers, surplus / deficit-LRA, and financing of a reporting entity each comparable with its budget.
Such information useful for users of the report in evaluating the decision on the allocation of resources
economy, accountability and obedience reporting entity to the budget with:

a. provide information about source, allocation, and usage economic resources;

b. provide information about overall budget realization which is useful in evaluating performance of the
government in terms of efficiency and the effectiveness of budget use.

B.3.3 Component of Budget Realization Report Budget Realization

Report is a report that presents an overview of sources, allocations, and the use of economic resources
managed by a central or inner-city government one reporting period. According to Halim and Kusufi
(2014: 273), the LRA discloses activities central or regional government finances shows obedience to
APBN / APBD. LRA, at least include:

1. Revenue-LRA;

2. Shopping;

3. Transfer;

4. Surplus / deficit-LRA;

5. Financing;

6. Time spent / less budget financing.

The element of budgeting within Government financial statements are a factor which distinguishes
between public sector accounting and private sector accounting. On sector accounting private,
budgeting is included in the section management accounting where the realization report only become
the consumption of management alone. While in the public sector, budgeting be part of the element to
report to outsiders (public) due to demands accountability and transparency to the government
including in allocating resources the economy they manage and how realization. Therefore, the LRA
illustrates the comparison between budgets with its realization in one reporting period.

B.4 Local Financial Report

B.4.1 Definition of Regional Financial Statements

According to the Minister of Home Affairs Regulation Number 13 of 2006 Article 1, paragraph 6 which is
referred to "regional finances are all rights and regional obligations in the framework of implementation
local government that can be assessed with money includes all forms of wealth which relates to rights
and obligations the area. "

B.4.2 Principles of Accounting and Reporting Finance Government

Regulation no. 71 Year 2010 on Government Accounting Standards, principles accounting and financial
reporting of the Government as follows:

1. Basis of Accounting

2. The Principle of Historical Value

3. Principles of Realization 4

. The principle of Substance is superior in form formal

5. Principle of Periodicity 6. Principle of Consistency

7. Complete Disclosure
8. Fair Presentation

B.4.3 Definition of Effectiveness

Halim and Kusufi (2014: 130) states: Effectiveness is size success or failure of an organization achieve its
goal. When a organizations successfully achieve goals, then the organization has run effectively.
Effectiveness only see if a program or activities have reached that activity has been established.
Measurement of effectiveness measure the end result of a service is associated with its output (cost of
outcome). According Nordiawan (2010: 161) states that "Effectiveness is a relationship between output
and destination. The greater it is the contribution of output to the achievement of the goal, then the
more effective an organization, program, or activities. "According to Mahmudi (2016: 141) the level of
effectiveness can be measured in a way compare revenue realizations original area with target
acceptance PAD (budgeted), formulated as follows.

C. Research Methodology

C.1 Data Types

According to Sugiyono (2015: 223) the type of data can be divided into:

1. Primary Data

Primary data is the Source of data directly provide data to data collector.

2. Secondary Data

Secondary data is the source of which not directly provide data to the data collector, for example
through others or through documents.

Data used by Researchers in this research is in the form of primary data that is data obtained from
interviews (interviews) and data secondary form of Budget Realization Report.

C.2 Data Collection Techniques

According Sugiyono (2015: 194) there are three the way used in collecting data, that is:

1. Observation Observation is the way of collection data by holding direct observation of spaciousness
with respect to human behavior, work processes, natural phenomena.

2. Documentation Documentation is a technique done with the collection, selection, processing, and
information storage, books, related literature and support research.

3. Interview Interviews are techniques data collection, if researchers want to do preliminary study to
find the problem which should be examined, and also if researchers want to know things of the more in-
depth respondents and the number of respondents little / small.
The data collection method used Researcher is method interview (interview) with employees and Head
of Service Musi Banyuasin Regency Plantation, documentation in the form of Budget Realization Report
and other data related to budgeting.

C.3 Data Analysis Technique

According to Sugiono (2015: 426) there are two the way used to analyze data, that is:

1. Qualitative Analysis Qualitative analysis is data in the form of words, sentences, motion body, facial
expressions, charts, pictures and photos

2. Quantitative Analysis Quantitative analysis is the analysis data in the form of numbers or data
qualitative that is perceived (scoring)

In this study type of data analysis used is descriptive qualitative analysis where the research was
conducted with collect, and analyze that data collected as well as a clear picture accordingly with the
actual circumstances.


E.1 Conclusions

Based on the results of the analysis and discussion through comparison and measurement at the Musi
Regency Plantation Office Banyuasin can be summarized as follows:

1. Generally if measured by analysis variance, it can be concluded shopping performance Plantation

Service of Musi Banyuasin Regency from 2013 to 2015 can be said to be quite effective, because of
achievement the realization of expenditure is nearing the target budget that has been set to average
earnings 89.13%. Nevertheless, it happens decrease in achievement in 2015 ie decreased by 13.2%
(achievement 81.51%). As for shopping

2. Similar to measurement with variance, measurement with effectiveness ratio also shows that
management performance Plantation Service of Musi Banyuasin Regency is already quite effective in
2013 and 2014 with achievement of 91.17% and 94.71%. But in 2015 decreased realization so that in the
year it can be is said to be less effective as it is only reached 81.51% of the budget set.

Based on the two conclusions above then it can it is known that, although by 2015 the target the budget
has decreased significantly but the realization achieved also experienced decline that resulted in not
achieving it target. It indicates that performance the management in 2015 experienced significant

E.2 Suggestions

Suggestions that can be given by researchers in this study are as follows:

1. The Plantation Office of Musi Regency Banyuasin should pay attention to the budget. Capacity-
appropriate budgeting management can be achieved through election activities that really
should be implemented and provide good feedback for both the entity and the receiving
community service. Nevertheless, parties the authority holder shall not establish budget is too
low as it can resulting in a decline in management performance because it felt to achieve those
targets no need to work hard.

Decrease in the achievement of budgetary effectiveness by 2015 should be evaluated more in yet
another contributing factor for control in the coming period so hopefully not it happens again in the