




































58 

 

Finance, Accounting and Business Analysis 
Volume 2 Issue 1, 2020 

http://faba.bg 

 

The Effectiveness   Budget Control  Government of Ogan Ilir 

Regency: The Impact on Supervision and Competence 

 
Periansya1, Sopiyan AR2, Tria Ajeng Pratiwi3 

  
Politeknik Negeri Sriwijaya, Indonesia 

Info Articles  
 

Abstract 

History Article: 
Submitted 23 January 2020 
Revised 4 March 2020 
Accepted 17 May 2020 

 
Purpose: This study carried out to examine and analyze the impact of supervision 
and Competence on the effectiveness of Ogan Ilir district budget control. 
Methodology Approach: The population of this study was 26 regional apparatus 
organizations (OPD). Determination of the sample used by purposive sampling 
technique. After the questionnaire distributed to respondents, 102 samples met the 
criteria. The analysis used in this study is a multiple linear regression model. 
Finding: The findings of this study note that preventive, defective supervision and 
Competence of human resources both partially and simultaneously have a positive 
and significant relationship to the effectiveness of budget control with a coefficient 
of determination of 62.5%. Practical Implications: For the effectiveness of budget 
control to run effectively and efficiently, policymakers must focus 37.5% of other 
factors that can influence other than the variables in this study. 

Keywords:  
Supervision, Budget Control, 
Effectiveness, Competence 

 

  

   

Address Correspondence:   
E-mail : periansya@polsri.ac.id 
 
 

 

  



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

59 

 

INTRODUCTION 
 

Since autonomy came into force in 1999, there have been several changes that have governed the 

running of the regional government. The current regulation is UU No.23/ 2014 with the consideration 

that the regional government directed to accelerate the realization of community welfare through 

improved services, empowerment, and community participation. The regional government in this law is 

encouraged to increase local and global competitiveness. Besides, the principles of democracy, equity, 

justice,  uniqueness of an area efficiency, the effectiveness of its administration are the responsibility of 

regional governments in the unity of the system of governance of the state. 

Although the regulations on local government have changed, the regulations on regional finances still 

use UUNo.33/2004. These rules are still relevant in the effective and efficient management of regional 

finances to achieve the targets set.  The government issued Regulation PP No.58/2005 on regional 

financial management, in addition to that it was also supported by the guidance and supervision of state 

administration PP No.17/2017 and PP No. 13/ 2019 regarding reports and evaluations of regional 

government implementation with the aim the creation of good governance. (Egbide and Agbude 2018) 

Furthermore, the World Bank in (Mardiasmo 2009) stated that good governance requires management of 

government that can bring democratic principles, accountability, transparency, accountability, 
effectiveness and efficiency in governance. Referring to the theory of regulation (Baldwin et al, 2012), it is 

necessary to have a competent supervisory apparatus to carry out compliance with the rules besides 

guiding regional financial managers. 

Supervision (Mocanu, 2014 ; Fajri, 2018) was intending as a guide in helping the implementation of 

the work program so that it can run according to the goals set. Oversight of the budget ( Puadi, 2013 ; 

Suharyono, 2019 ) is the work program implementation activities that have been prepare to run effectively, 

efficiently and on target. Supervision of this budget in practice is carried out by the state civil apparatus 

referred to as a form of accountability and transparency in ensuring that there is no deviation in the use of 

state funds. ( Fajri, 2018 ) divides two supervision namely preventive and defective, where preventive 

supervision is carried out before the implementation of the activity while detective supervision after the 

implementation of the activity to oversee the running of the budget.  

The results of the BPK examination in 2017 found that there were weaknesses in the Internal Control 

System in the Ogan Ilir local government. In 2018 the Regional Development Work Plan (RKPD) that 

one of the significant challenges faced by Ogan Ilir District was "not an optimal performance of 

government apparatus services". In addition to the above problems also felt by the Ogan Ilir community 

such as slow service, less timely completion of development and limited human resources in compiling 

more effective budgets and the state civil apparatus is considered to be of poor performance. 

Based on the identification of the problems above, this research focused on knowing whether supervision, 

the competence of the state civil apparatus has a beneficial effect on budget control in Ogan Ilir Regency. 

 

Preventive and defective supervision 
According to (Horvath, 2006 ;Baldwin et al., 2112; Mocanu, 2014)  provides a definition that control 

as a subsystem that supports company management starts from planning, coordinating and controlling and 

providing information under the objectives. While the purpose of supervision is as an effort to implement a 

plan that has been prepared previously, supervision according to Baswir in (Fajri 2018) can be grouped 

into two, such as Preventive Supervision, namely supervision carried out before the start of the 

implementation of an activity. Then defective supervision is supervision activities carried out after the 

occurrence of state financial expenditure by examining and assessing accountability for financial 

performance. To anticipate collusion between executors and supervisors, are needed accountability and 

transparency in financial management. 

 

Competence 
According to (Dessler, 2015 ; Sopian et al, 2020) competence is a human resource that has the ability 

of knowledge, skills and character. While the Regulation of the National Civil Service Agency (BKN)No. 

8/2019 regarding Guidelines and Procedures and Implementation of the Measurement of the State Civil 

Service Professionalism Index (ASN) there are standards and dimensions for measuring the ASN 

professionalism index, namely Qualification, Competency, Performance and Discipline.  
Another opinion of Chapman 1999 in ( Roeleejanto et al,2015) states that Competency is a set of 

knowledge, skills and attitudes that must be possessed by a person in carrying out his work without leaving 

aspects of personality and ability of social skills in carrying out his duties. 

 

Effectiveness of Budget Control 

The budget according to (Bastian, 2017; Surianti & Dalimunthe, 2017) is a statement of estimated 



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

60 

 

Y = a + β₁ X1 + β2X2 + β2X3 + e 

future income and expenditure in the future or in a certain period, which is realized in financial form and 

used by the organization as a controller and appraiser of performance. (Mardiasmo 2009) states that 

budgeting can be declared valid if the work program of a budget is running according to the goals and 

objectives of the program. So the effectiveness of a budget can be said to be useful if the costs incurred by 

the organization to achieve goals without looking at the number of costs incurred. 

Control, according to (Alim 2008) is an effort aimed at the implementation of the budget does not 

deviate from the goals and objectives set. Whereas supervision according to (Fajri 2018) divides 

supervision into 2 (two), namely preventive and defective, where preventive supervision is carried out 

before the implementation of activities while defective supervision carried out after the implementation of 

activities to oversee the running of the previously prepared budget. 

 

METHODS 

 

In this study, there are 3 (three) independent variables consisting of Preventive Supervision (X1), 

Detective Supervision (X2), and Competency (X3) and 1 (one) dependent variable namely Budget Control 

Effectiveness (Y). 

 

Population and Sample 
(Fauzi et al,  2019) states that a population is a group of people or individuals that are the objectives of 

the study, while (Sugiono 2012) states that the sample is an element or characteristic that belongs to that 

population. The population and sample in this study are regional government organizations (OPD) where 

from the number of questionnaires that have been distributed based on criteria, only 102 samples meet the 

standards for further testing. 

 

Multiple Linear Regression Analysis 

To find the relationship between two or more independent variables with one dependent variable, the 

multiple linear regression equation with the following formula: 

 

 

 

 

Information : 

Y = Effectiveness of Budget Control 

a = constant 

β1, β2, β3 = Regression coefficients X1, X2, X3 

X1 = Preventive Monitoring 

X2 = Detective Oversight 

X3 = Competency 

e = error 

After obtaining the results of multiple linear regression equations then look for the value of the coefficient 

of determination (R2), Partial Test (t-test) and Simultaneous test (Test F) 

 

RESULTS AND DISCUSSION  

 

Results of Multiple Linear Regression Analysis 
The results of the analysis using multiple linear regression models using the help of the Statistical Product 

and Service Solution version 24 program appear in the following table: 

 

Table 1. Results of Multiple Linear Regression 

Coefficientsa 

Model 

Unstandardized Coefficients 

Standardized 

Coefficients 

t Sig. B Std. Error Beta 

1 (Constant) ,177 2,110  ,084 ,933 

X1 ,107 ,051 ,129 2,089 ,039 

X2 ,524 ,052 ,629 10,151 ,000 

X3 ,397 ,070 ,353 5,654 ,000 

a. Dependent Variable: Y 

Source: Data processed (2019) 



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

61 

 

The results of data management in table 1 in the column Unstandardized Coefficient section B where 

the multiple linear regression equation model is as follows: 

Y = a + b1X1 + b2X2 + b3X3 + b4X4 + e 

Y = 0.177 + 0.129X1 + 0.629X2 + 0.353X3 + e 
Information: 

Y: Effectiveness of Budget Control 

X1: Preventive Monitoring 

X2: Detective Oversight 

X3: Competence 

The regression equation obtained can be explained that the constant value is 0.177, which means that 

if the value of preventive supervision and detective supervision and competence is assumed to be equal to 

0, then the Effectiveness of Budget Control will constantly be worth 0.177. Furthermore, the regression 

coefficient value for the Preventive Controls variable (X1) of 0.129 means that Preventive Control has a 

positive effect on the Effectiveness of Budget Control. 

 Furthermore, the regression coefficient level for the Detective Oversight variable (X2) is 0.629. Means 

Detective Supervision has a positive effect on the Effectiveness of Budget Control. Then the regression 

coefficient level for the HR Competency variable (X3) is 0.353. It means that competence has a positive 

effect on the effectiveness of budget control and standard errors indicating the level of confounding errors. 

 

Hypothesis Test Results 

 

Determination Coefficient Test (R 2) 
The Coefficient of Determination (R2) test is performing to determine the value of the correlation of the 

independent variable (X) with the dependent variable (Y). The higher the coefficient of determination, the 

better the ability of the independent variable in explaining the dependent variable. 

 

Table 2. Determination Coefficient Test Results (R 2) 

Model Summaryb 

Model R R Square Adjusted R Square 

Std. Error of the 

Estimate Durbin-Watson 

1 ,797a ,636 ,625 1,366 2,397 

a. Predictors: (Constant), X3, X1, X2 

b. Dependent Variable: Y 

Source: Data processed (2019) 

 

Based on the multiple regression test results obtained R of 0.797, which means that the 

correlation/relationship between Preventive Control, Detective Supervision, and Competence has a 

relatively stable relationship of 79.7%. While the value of R Square or the value of the coefficient of 

determination obtained by 0.636. It means that variable X has the effect of a contribution of 63.6% on the 

Y variable. While the rest (100% - 63.6% = 36.4%) is explain by other independent variables not included 

in this study. The adjusted R Square value of 0.625 or 62.5% shows the size of the contribution of the 

influence of the independent variable on the dependent variable. 

 

Test Results of Partial Significance (t-Test) 
Partial test (t-test) of the independent variables conducted to determine the value of each independent 

variable, whether or not it significantly affected the dependent variable. Following are the results of the 

partial Significance test (t-test): 

 

Table 3. Results of Partial Significance Tests (t Test) 

Coefficientsa 

Model 

Unstandardized Coefficients 

Standardized 

Coefficients 

t Sig. B Std. Error Beta 

1 (Constant) ,177 2,110  ,084 ,933 

X1 ,107 ,051 ,129 2,089 ,039 

X2 ,524 ,052 ,629 10,151 ,000 

X3 ,397 ,070 ,353 5,654 ,000 

a. Dependent Variable: Y 

Source: Data processed (2019) 



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

62 

 

 

T-test results show the value of t count and the significance of each independent variable, among 

others, Preventive Control Variable (X1) t value of 2.089> t table 1.984 with a significance level of 0.039 

<0.05, then Ha is accepted, and Ho rejected. So it was concluded that the variable X1 partially had a 

positive and significant effect on the variable Y. Then the Detective Oversight Variable (X2) t count 

10.151> t table 1.984 with a significance level of 0.000 <0.05 then Ha was accepted, and Ho rejected. So it 

was concluded that the variable X2 partially had a positive and significant effect on the variable Y. 

Competence Variable (X3) t count value of 5.654> t table 1.984 with a significance level of 0.000 <0.05 

then Ha was accepted, and Ho rejected. It concluded that the X3 variable partially had a positive and 

significant effect on the Y variable. 

 

Simultaneous Significance Test Results (Test F) 

Simultaneous testing (F test) is a test on all independent variables in this study, as shown in the table 

below: 

Table 4. Simultaneous Significance Test Results (F test) 

ANOVAa 

Model Sum of Squares df Mean Square F Sig. 

1 Regression 319,011 3 106,337 57,007 ,000b 

Residual 182,803 98 1,865   

Total 501,814 101    

a. Dependent Variable: Y 

b. Predictors: (Constant), X3, X1, X2 

Source: Data processed (2019) 

 

F test results show that the value of F count is 57,007, and the significance is 0,000. Means that F 

count 57.007> F table 2.70, so it concluded that together or simultaneously variables X1, X2, and X3 

affect the variable Y. The significance value of 0,000 <0.05 or 5%, so it can conclude that overall 

independent variables namely preventive supervision (X1), detective supervision (X2), and competence 

(X3) have a significant influence on the dependent variable namely the effectiveness of budget control (Y). 

 

Effect of Preventive Supervision on the Effectiveness of Budget Control 

Based on hypothesis testing, the value of t for the Preventive Controls variable is 2.089> the value of 

the table is 1.984, and the significance value is 0.039 <0.05. So it can be concluded that the Preventive 

Oversight variable has a positive or significant effect on the Budget Control Effectiveness. As the 

implementation of preventive supervision increases the effectiveness of budget control will also increase. 

Means that Ha was accepted or Ho rejected. 

The results of this study are in line with this theory in line with the theory (Baswir 1999) that the 

existence of both preventive supervisions can prevent budget misuse. Besides, oversight of the use of the 

budget can lead to the effective and efficient implementation of the work program.  This study is in line 

with the results of previous studies conducted by ( Puadi, 2013;Fajri, 2018; Rigian & Sari, 2019) that 

preventive supervision has a positive influence on the effectiveness of budget control. On the contrary, 

(Peuranda and Herdi 2014) stated in his research that there was no correlation between preventive 

supervision and the effectiveness of budget control. 

 

Effects of Detective Oversight on the Effectiveness of Budget Control 

Based on the results of hypothesis testing, the t count for the Detective Oversight variable was 10.151> 

the t table value was 1.984 and the significance value was 0.000 <0.05. Then it can be concluded that the 

Detective Oversight variable has a relationship or a positive and significant effect on the Effectiveness of 

Budget Control. The detective supervision carried out, the effectiveness of budget control will also 

increase. Means that Ha was accepted or Ho rejected. 

The results of this study are in line with the opinion (Baswir 1999) that the existence of both defective 

supervisions, the supervisor can evaluate the accountability report documents. Supervision and inspection 

are not only carried out by superiors on subordinates, preferably, and evaluations carried out to prevent 

budget misuse for the effectiveness of local government budgets. 

This research is in line with the results of previous research conducted by (Puadi 2013) and (Fajri 

2018) which states that detective supervision has a positive effect on the effectiveness of budget control, 

thus meaning that increasing detective supervision will also increase the effectiveness of budget control. 

 

 



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

63 

 

Effect of Competence of Human Resources on the Effectiveness of Budget Control 
Based on the results of hypothesis testing, the t count on the Human Resources Competency variable 

was 5.654> the table value was 1.984, and the significance value was 0.000 <0.05. So that the Competency 

variable has a positive or significant relationship or influence on the Effectiveness of Budget Control, if the 

quality of human resource competencies is good, the control of the budget will be more effective. Means 

that Ha was accepted or Ho rejected. 
According to (Dessler, 2015; Bulan et al, 2017) that the importance of human resource competence in 

a government so that it can carry out the main tasks that have been arranging. Besides, in the financial 

management of state government apartments, the state must have competence following their fields so that 

the budget can adequately documented according to the principles of government accounting. 

This study is in line with the results of previous studies conducted ( Arsyiati, Darwanis, & Djalil, 2008 

; Arsyiati et al., 2008 ) which states that the quality of financial managers has a positive effect on the 

effectiveness of financial management, meaning that the quality of financial managers / human resources 

is increasing. Will be more effective financial management in terms of budget control. 

 

Effects of Preventive Oversight, Detective Oversight and Human   Resources Competence on the 

Effectiveness of Budget Control 

Based on the results of hypothesis testing, the calculated value for the variables Preventive Oversight, 

Detective Oversight and Competence was 57.007> the f table value was 2.70, and the significance value 

was 0,000 <0.05. Then it can be concluded that the variables Preventive Supervision, Detective 

Supervision and HR Competence have a relationship or a positive and significant effect on the 

Effectiveness of Budget Control. Means that Ha was accepted or Ho rejected. 

The results of the analysis of the strength the relationship simultaneously to find out how much the 

independent variable explains the dependent variable, can be determined through the coefficient of 

determination R2 that is Adjusted R Square of 0.625 or 62.5%. In comparison, the remaining 37.5% is 

influenced by other variables that the researcher did not include in the study this is like the application of 

SPI, implementation of performance-based budgeting and others. 

This study is in line with the results of previous studies conducted by ( Puadi, 2013 ; Fajri, 2018) but 

then researchers added the competency variable of human resources as an extension of previous 

researchers because of the presence of preventive supervision and proper detective supervision and 

supported by human resources than the budget control in Ogan Ilir district becomes more effective and 

efficient. 

 

CONCLUSION  
 

Based on the results of data analysis and testing of hypotheses that have been describing in the 

previous chapter, it can conclude that supervision, both preventive and defective, can improve the 

effectiveness of budget control.  

Then human resource competence has a positive and significant influence on the effectiveness of 

budget control, this shows the existence of preventive supervision and detective supervision, and the more 

qualified and competent human resources, the effectiveness of budget control will also increase. 

 

REFERENCES 

 

Alim, M. Nizarul. 2008. “Efektivitas Perpaduan Komponen Anggaran Dalam Prosedur Anggaran: 
Pengujian Kontinjensi Matching.” Jurnal Akuntansi Dan Keuangan 10 (2): 69–76. 

https://doi.org/10.9744/jak.10.2.PP.69-76. 

Arsyiati, Darwanis, and Muslim A. Djalil. 2008. “Pengaruh Kualitas Sumber Daya Manusia Dalam 

Pengelolaan Keuangan Terhadap Kualitas Pertanggungjawaban Keuangan PNBP Upaya 
Meningkatkan Kinerja Instansi Pada Universitas Syiah Kuala.” Jurnal Telaah & Riset Akuntansi 1 (1): 

29–49. 
Baldwin, Robert, Martin Cave, and Martin Lodge. 2112. Understanding Regulation_Theory,Strategy, and 

Practice. New York: Oxford University Press. 

Bastian, Indra. 2017. Akuntansi Manajemen Sektor Publik. Jakarta: Salemba Empat. 

Baswir, Revrisond. 1999. Akuntansi Pemerintahan Indonesia. Jogyakarta: BPFE. 

Bulan, Sinambow Gloria Injilita, Jantje Tinangon, and Lidia Mawikere. 2017. “Pengaruh Kualitas 

Pengelola Keuangan Dan Sistem Pengendalian Intern Pemerintah(SPIP) Terhadap Efektivitas 

Pengelolaan Keuangan Daerah EFEKTIVITAS PENGELOLAAN Pada Inspektorat Pemerintah Kota 

Manado PEMERINTAH KOTA MANADO” 12 (58): 263–71. https://doi.org/10.1021/jp064029m. 

Dessler, Garry. 2015. Manajemen Sumber Daya Manusia. Edited by Diana Angelica. Edisi 14. Jakarta: 



Periansya et al. / Finance, Accounting and Business Analysis 2 (1) 2020 

64 

 

Salemba Empat. 

Egbide, Ben-Caleb, and Godwyns Agbude. 2018. “Good Budgeting and Good Governance: A 
Comparative Discourse.” SSRN Electronic Journal, no. 2002: 49–59. 

https://doi.org/10.2139/ssrn.2478725. 

Fajri, Arif. 2018. “Pengaruh Pengawasan Preventif Dan Pengawasan Detektif Terhadap Efektivitas 

Pengendalian Anggaran.” Menar Ilmu xii (6): 1–9. 

Fauzi, Fitriya, Abdul Basyith Dencik, and Diah Isnaini Asiati. 2019. Metodologi Penelitian Untuk 

Manajemen Dan AKuntansi. Jakarta: Salemba Empat. 

Horvath, P. 2006. Controlling. 10 th. Muchen: Vahlen. 

Mardiasmo. 2009. Akuntansi Sektor Publik. Jogyakarta: CV.Andi Offset. 

Mocanu, Mihaela. 2014. “Towards a Definition of Controlling.” Studies and Scientific Researches. Economics 

Edition, no. 20: 62–66. https://doi.org/10.29358/sceco.v0i20.295. 

Peraturan Badan Kepegawaian Negara (BKN) Nomor 8 Tahun 2019. n.d. Tentang Pedoman Tata Cara Dan 

Pelaksanaan Pengukuran Indeks Profesionalitas Aparatur Sipil Negara (ASN). 

Peraturan Pemerintah No.58. 2005. Tentang Pengelolan Keuangan Daearah. 

Peraturan Pemerintah NO 13 Tahun 2019. n.d. Laporan Dan Evaluasi Penyelenggaraan Pemerintahan Daerah. 

Peraturan Pemerintah Republik Indonesia. 2017. “Nomor 12 Tahun 2017 Tentang Pembinaan Dan 

Pengawasan Penyelenggaraan Pemerintahan Daerah.” 

Peuranda, and Julio Herdi. 2014. “Pengaruh Pengawasan Preventif Dan Pengawasan Detektif Terhadap 
Efektivitas Pengendalian Anggaran (Studi Empiris Pada SKPD Di Kabupaten Kampar.” Jurnal. 

Fakultas Ekonomi, Universitas Negeri Riau 1 (2). 

Puadi, Arif. 2013. “Pengaruh Pengawasan Preventif Dan Pengawasan Detektif Terhadap Efektivitas 

Pengendalian Anggaran.” Padang. 

Rigian, Detasya, and Ratna Purnama Sari. 2019. “Pengaruh Akuntabilitas, Transparansi, Dan Partisipasi 

Terhadap Kinerja Anggaran Berbasis Value for Money.” Journal of Business and Information Systems (e-

ISSN: 2685-2543) 1 (1): 38–47. https://doi.org/10.36067/jbis.v1i1.11. 

Roeleejanto, Catherine, Nurdin Brasit, Otto R Payangan, and Cepi Pahlevi. 2015. “Effects of Leadership , 

Competency , and Work Discipline on the Application of Total Quality Management and Employees ’ 

Performance for the Accreditation Status Achievement of Government Hospitals in Jakarta , 
Indonesia.” Scientific Research Journal III (44): 14–24. https://doi.org/ISSN 2201-2796. 

Sopian, A.R, Ardiyan Natoen, Indra Satriawan, and Periansya. 2020. “The Influence of Commitment on 

State Civil Apparatus in the Governor Office of South Sumatera” 431 (First 2019): 88–95. 

https://doi.org/10.2991/assehr.k.200407.016. 
Sugiono. 2012. Satatistik Untuk Penelitian. Jogyakarta: BPFE. 

Suharyono, Suharyono. 2019. “The Effect Of Accountability, Transparency, And Supervision On Budget 

Performance By Using The Concept Of Value For Money In Regional Business Enterprises (Bumd) Of 

Riau Province.” International Journal of Public Finance 4 (2): 236–49. 

https://doi.org/10.30927/ijpf.584834. 

Surianti, Meily, and Abdul Rahman Dalimunthe. 2017. “The Implementation of Performance Based 
Budgeting in Public Sector (Indonesia Case: A Literature Review).” International Journal of Developing 

and Emerging Economies 5 (2): 52–67. www.transparency.org. 

Undang Undang No.23 Tahun 2014. n.d. Tetang Pemerintah Daerah. 

Undang Undang No.33. 2004. Tentang Perimbangan Keuangan. 

 
 


