PENDAHULUAN THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 17 Jurnal Akuntansi DOI: https://doi.org/10.33369/j.akuntansi.9.1.17-32 Vol. 9, No.1 2019 Hal. 17- 32 THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid Department of Commerce, Politeknik Negeri Lhokseumawe, Indonesia. ABSTRACT This study aims to empirically examine the effect of participatory budgeting, clarity of budget targets both simultaneously and partially on the managerial performance of government officials in North Aceh District. The analytical tool used is multiple regression analysis technique with the consideration that the pattern of relationships between variables in the study are correlative and causal. This model will be able to answer the exact form of problems that have occurred so far so that the objectives can be achieved, namely measuring how much influence participatory budgeting, simultaneous clarity of budget targets and partially on managerial performance in North Aceh District Government.The intended respondents were people who were involved in the middle to upper management level of each SKPD which numbered 32 respondents, because it was believed that they had wide access to the budget process. The data sources used in this study are primary and secondary data. The source of primary data comes from respondents obtained by using data collection techniques through questionnaires and interviews.The results of this study indicate that simultaneous participatory budgeting and clarity of budget targets influence managerial performance, and partially participatory budgeting and clarity of budget targets have a positive effect on the managerial performance of the North Aceh district government work unit. The results of this study are expected to be a reference and consideration for local governments, especially the district of North Aceh so that participatory budgeting and clarity of budget targets can be applied in the budgeting process. Keywords: Budgeting, Managerial Performance Kata Kunci: Penganggaran ,Kinerja Manajerial Corresponding author: Mukhlisul Muzahid Email addresses for corresponding author: soel_mz23@yahoo.com First submission received: 7th Mei 2019 Revised submission received: 11th Juni 2019 Accepted : 21th Juni 2019 INTRODUCTION Reform has encouraged the creation of changes in central and regional government management, one aspect of the reform is the development in the field of accounting and budgeting, especially for the public sector. The change in the paradigm of government management in both the central government and regional governments is based on the existence of a new paradigm in public administration, this has inspired that public organizations must operate like business organizations, efficiently, effectively and put the community as stakeholders as well as possible. The corruption ranking in Indonesia is still high, which still ranks 110th with a corruption perception index (CPI) of 2.8 indicating the weak internal control applied in the government so that it opens up huge opportunities for the occurrence of irregularities in the budget (APBN / APBD) use of public funds. The medium term development plan (RPJM) targets Indonesia's CPI score in 2015 to be 5.0. To achieve better governance, the Indonesian government has https://doi.org/10.33369/j.akuntansi.9.1.17-32 mailto:soel_mz23@yahoo.com Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 18 reformed state financial management in both the central government and regional governments with the enactment of a package of state finance laws, namely Law 1 of 2004 concerning State Treasury which is then regulated in Article 25 of Government Regulation Number 8 of 2006 and Law Number 32 of 2004 concerning Regional Government, and Law Number 33 of 2004 concerning financial balance between the center and the regions. Both of these laws have changed the accountability or accountability of local government from vertical accountability (to the central government) to horizontal accountability (to the public through DRPD) where it requires the government to fulfill accountability by paying attention to several things, including budgets, internal control and reporting systems. The budget has various other aspects such as the characteristics of the budget target, budget feedback, budget evaluation, and budget difficulty. Research related to the clarity of budget targets and their impact has been carried out by many researchers, such as research on the effect of budget target characteristics on managerial attitudes and performance. The results showed that the clarity of budget targets tended to have a positive and significant effect on managerial performance. The clearer the budget target, the better managerial performance. Public sector budgeting is always a warm conversation, because public sector budgets are used to serve three purposes, namely: (1) tools of accountability (2) tools of management, (3) instrument of economic policy). The managerial performance of local government can be reflected in the financial statements of the local government. As for the development of the opinion of the financial statements of the local government, it can be seen as in table 1 below. Table 1: Development of 2011-2014 LKPD Opinions LKPD Opinion Total WTP % WDP % TW % TMP % 2011 13 3% 323 67% 31 6% 118 24% 485 2012 125 23% 331 61% 5 1% 81 15% 542 2013 162 30% 320 59% 11 2% 49 9% 542 2014 251 49% 230 46% 4 0.7% 19 4% 504 Source: Republic of Indonesia Supreme Audit Agency (2015) The table above presents the development of LKPD opinion from 2010 to 2013, for 2014 which was publicized as the semester I examination index (IHPS) in 2015, the results showed that WTP and WDP opinion increased compared to the previous year. From the table, it can be seen that the 2013 LKPD opinion showed an increase in the number of local governments that received unqualified opinion (WTP) and reasonable exceptions (WDP) compared to 2011 and 2012. Meanwhile, the number of those who received an opinion was not fair shows an increase compared to 2012 and a decline compared to 2011, and opinion not giving opinion (TMP) shows a decline compared to 2011 and 2012. This generally illustrates the improvement in the quality of financial reports presented by local governments even though these improvements have not been significant. Opinion does not provide unreasonable opinions and opinions given by the BPK largely due to the weakness of the internal control system (SPI) on the financial statements of local governments. This weakness is reflected in inadequate physical control of assets, weaknesses in cash management, recording of transactions that are not accurate and timely and budget discipline problems. The phenomenon in the North Aceh district government is the lack of understanding of the substance of changes in budgeting in the public sector which can affect the level of THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 19 participation in budgeting, for example participation is low. Low participation rates can lead to clarity of budget targets not understood by implementers, because the lack of involvement in the preparation of programs, activities and budget allocations is associated with the goals and objectives to be achieved by organizational units and this condition has implications for low performance. In addition to the above phenomenon, which needs to be considered also based on the results of the BPK examination of the 2015 APBD budget calculation report, it turns out that it has not fully followed the applicable provisions, so there are still weaknesses. Among the officials who carry out the functions of the Regional General Treasurer have not been established, review and test the evidence in the context of issuing a payment order (SPM) as the basis for inadequate payments, review and approval of the recording of inadequate transactions, less adequate, and negligence in controlling over regional revenue procedures. The BPK recommends that the Heads of Work Units improve supervision and control of the use of the budget in each work unit. This research was conducted to be able to find various problems related to the lack of managerial performance of local governments, both caused by budgeting factors and other factors, so the results of this study provide useful information for local governments in improving managerial performance by formulating related policies with managerial performance and performance-based budgeting. Formulation of the problem. Based on the background of the research stated earlier, the problem can be formulated in the research as follows: 1. How much influence does participatory budgeting, simultaneous clarity of budget goals on managerial performance. 2. How much influence does participatory budgeting, partial budget clarity on managerial performance. Research purposes. The objectives to be achieved from this study are: 1. To find out how much influence participatory budgeting has, the clarity of budget targets is simultaneous to managerial performance in the North Aceh district work unit. 2. To find out how much influence participatory budgeting has, the clarity of the budget target is partially on managerial performance in the North Aceh district work unit. Benefits of research 1. This research is expected to be able to add to the scientific insights of the author and at the same time increase critical and reasoning power so as to increase the ability to understand theories and at the same time understand the reality that occurs. 2. As an empirical input material to add information to the development of accounting science, especially public sector accounting in relation to budgeting so that it can improve the managerial performance of the apparatus in the local government work unit. THEORETICAL FRAMEWORK Participatory Budgeting, Budget Target Clarity, and Managerial Performance. Participatory budgeting in government organizations involves the role of government officials in the budgeting process. Participation in the budgeting process will motivate the Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 20 individuals involved to share information in making decisions to give the best to the organization so that it impacts on their performance in carrying out their duties. The involvement and role of officials in the government can clarify the targets to be achieved where the clarity of the target of government organizational budgeting is very important in achieving the success of the regional work unit. Control is a benchmark that can be used to see to what extent the work unit is able to carry out its main tasks and functions. Performance benchmarks are set in the form of service standards by each region. The determination of budget targets will clearly encourage employees to show their best performance. The involvement of government officials is followed by clarity on the goals that are the objectives and the implementation of good internal control, organizational resources are used effectively and efficiently can improve the achievement of organizational goals. Achieving high performance can be due to the effective application of the control system. Organizational failure in achieving goals that have been set can occur because of weaknesses in one or several stages in the internal control process. The relationship between the variables of participatory budgeting, the clarity of the budget target, is that high participation in budgeting provides an opportunity for managers to participate in determining how the budget will be arranged in accordance with the budget goals in their respective sections or divisions. The officials are involved in the budgeting process because they have sufficient information to predict the future appropriately, so that their involvement or participation in budgeting will clarify the goals to be achieved in each of their respective work units. Then with the existence of clear targets it will be easier for individuals to set budget targets, where the budget target can be achieved if it runs in accordance with established internal control principles, so that overall organizational performance can be achieved. From this description, the framework can be described as follows: Figure 1. Description of Framework Research Hypothesis On the formulation of the problem and the outlined framework, the research hypothesis can be formulated as follows: Hypothesis 1: Participatory budgeting, clarity of budget targets simultaneously have a positive effect on managerial performance. Hypothesis 2: Participatory budgeting, clarity of budget targets partially has a positive effect on managerial performance. Participatory budgeting Clarity, goal budget Managerial performance THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 21 RESEARCH METHODS Research methods. Descriptive research aims to describe or describe thoroughly and clearly the characteristics of the problem or phenomenon being faced. While the research is verificative, it is a type of research that aims to find out the relationship between variables through a hypothesis test. For this reason the method used is explanatory survey, namely research with use population to explain the relationship between variables in that population. The time period used is cross sectional, which is a momentary fact in the form of data that is only once collected in a period of observation in order to answer research questions. The unit of analysis in this research is the government apparatus in the North Aceh district work unit. Research Variables and Variable Operation "A variable is anything that can take on differing or varying values. The various times for different objects or persons are the same for different objects or persons. Variables are anything that can distinguish or bring variation to values. Values can be different at various times for objects or people or at the same time for different objects or people. Table 2. Operationalization of variables. Variable Dimension Indicator Scale Participatory budgeting (X1)[8] Clarity of budget goals (X2) [8] [9] Level of involvement Benefits of involvement The budget targets are clearly defined The targets set are communicated to achieve the best results - Engagement when programs and activities are organized - Engagement when the budget for programs and activities is organized - Proposals / opinions on the budget - The amount of influence reflected in the final budget - Engagement can clarify the goals / objectives to be achieved - Influence on performance - Budget targets setin detail and clearly - Target priority - Target according to function - Communication of superiors and subordinates - Clarity of goals motivates to work better - Achievement of the responsible party Ordinal Ordinal Variable Dimension Indicator Scale Managerial Performance (Y) [8] [9] [10] Planning Organizing - Guided by the draft and not deviant, leadership involvement and planning period ordinal Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 22 Variable Dimension Indicator Scale Leadership Control - Good organizational structure and delegation of authority in accordance with its functions - Motivating and paying attention to the harmonization between individual goals and organizational goals and coordinating activities and problem solving in the organization - Identify symptoms of irregularities, check subordinate duties and check and evaluate plans and programs. Research Population and Samples. Referring to the opinion expressed by Suharsimi that polulation is the overall subject of research, while the sample is part of the population that has certain characteristics or conditions possessed. [10] Population in this study is the regional work unit (SKPD) in North Aceh Regency there are 35 SKPD and all of them are used as research samples. Table 3. Number of SKPD North Aceh District Government No Name SKPD 1 The Regional Secretariat 2 DPRK Secretariat 3 Inspectorate 4 Regional Financial and Wealth Management Agency (DPKKD) 5 Youth and Sports Education Service 6 Public health Office 7 Bina Marga Office 8 Department of Irrigation and Energy of Mineral Resources 9 Cipta Karya Office 10 Office of Tourism and Culture Transportation 11 Department of Market, Hygiene and Planting 12 Department of Population and Civil Registration 13 Office of Social Workforce and Population Mobility 14 Office of Cooperatives and Small and Medium Enterprises 15 Islamic Sharia Office 16 Office of Food Crops and Animal Husbandry 17 Forestry and Plantation Service 18 Marine and Fisheries Service 19 Department of Industry and Commerce 20 Cut Meutia General Hospital 21 Regional Disaster Management Agency 22 Development Planning Agency at Sub-National Level 23 Agency for Food Security and Extension 24 National Unity Agency, Politics and Community Protection 25 Regional Personnel Agency, Education and Training 26 Community Empowerment Agency and Prosperous Family 27 Women's Empowerment and Child Protection Agency THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 23 28 Office of the Environment 29 Satpol Office PP and WH 30 Integrated Licensing Service Office 31 Regional Library and Archives Office 32 Baitul Mal Agency 33 Aceh Customary Assembly 34 Regional Education Council 35 Ulama Consultative Assembly Data Testing Reliability or validity of a study is determined by the measuring instrument used. If the measuring instrument used is invalid and / or cannot be trusted, then the results of the research carried out will not describe the real situation. In connection with this, the honesty of the respondents in answering the questions posed in the questionnaire is important. For this reason, two types of testing are needed, namely the validity test and test of reliability. Data Analysis Method To measure how much influence participatory budgeting has, clarity of budget targets, on SKPD managerial performance in government, testing is done using multiple regression analysis techniques. The reason for using multiple regression analysis in this study is because there are more than one independent variable, there are two variables. Based on the research paradigm stated earlier, the multiple regression equation model for this study can be formulated as follows: Y = 0 + 1X1 + 2X2 +  . Note : Y = Managerial Performance 0 = the intercept coefficient (constant) of the Y value if the other is zero 1 = Variable regression coefficient 2 = Variable regression coefficient X1 = Participatory Budgeting X2 = Clarity of Budget Objectives  = Error term from other variables Hypothesis testing. Based on the research hypothesis that was stated earlier, the statistical hypothesis can be formulated as follows: First Hypothesis: Ho1i = 0, (i = 1,2): Participatory budgeting (X1) and budget target clarity (X2) together do not have a positive effect on managerial performance (Y). Ha 1 0, At least there is one i i (i = 1,2): Participatory budgeting (X1) and budget target clarity (X2) together have a positive effect on managerial performance (Y). The hypothesis is tested using the F Statistical Test, with the calculation procedure as follows: JK redual = ( ) 2 − ˆY Y Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 24 JK total = ( ) 2 − Y Y JK regression = JK total - JK residual RJK = JK / db F-count = RJK regression / residual RJK .... (*) Note : JK = Number of squares, RJK = Average number of squares, k = number of independent variables, n = number of samples and db = free degree. Furthermore, for testing the hypothesis used a variance analysis tool, for more details we can see through the Analysis of Variance table (ANOVA) as shown in Table 4. Table 4: Analysis of Varians (ANOVA) Varians Free degree (db) JK RJK F Regresi k JK regresi RJK regresi (*) Residu n –k –1 JK sisa RJK residu Total n –1 JK total RJK total Coefficient of Determination (R2) The coefficient of determination shows the magnitude of the influence of independent variables together or simultaneously on the dependent variable. The coefficient of determination is obtained from the ANOVA table using the formula: 𝑅2 = 𝐽𝐾𝑟𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝐽𝐾𝑡𝑜𝑡𝑎𝑙 The Second Hypothesis: Ho2 :i 0, (i = 1,2) Participatory budgeting (X1) and budget target clarity (X2) partially have no positive effect on managerial performance (Y). HA2 :i > 0, (i = 1,2) Participatory budgeting (X1) and budget target clarity (X2) partially have no positive effect on managerial performance (Y). The hypothesis is tested using the t test statistic, that is by comparing t count with t table at a 95% confidence level. • If t count t table: H01accepted or HA1 rejected • If t count> t table : HA1accepted or H01 rejected RESULTS AND DISCUSSION Data of Respondents Respondents in this study were the head of the regional work unit or secretary or other positions that were closely related to the preparation of the budget in each North Aceh District Government SKPD. The questionnaire distributed to respondents was 35 copies with a return rate of 32 copies or 91.4 percent. Based on the data from the questionnaire processing, the THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 25 profile of the respondents with the categories of sex, age, level of education, duration of occupation, with the Table 5. On table 5, it can be seen that the employees who work in the planning and budget section are dominated by men rather than women, namely 24 men or 75% and 8 female respondents or 25%. From the age of the respondents showed that the age range of 20-30 years is only 5 people or 16%, the age range is 31-40 years as many as 11 people or 34% and the age range 41-50 years as many as 16 people or 50%, this indicates that employees related to budget decisions are very senior. Respondents' data from the position can be seen that the position as head of SKPD is as many as 6 people or 19%, positions as 9 SKPD secretaries or 28% and other positions that play a role in budgeting are 17 people or 53%. Data on respondents from the education level, respondents with a master's level of education (S2) as many as 13 people or 41% and the level of undergraduate education (S1) as many as 19 people or 59%. Education of respondents (S2) that have reached 41% means that the competence of human resources in the government environment, especially the head of the North Aceh district work unit has been able to be relied on from the level of education and can support the responsibilities given. Judging from the tenure in office as many as 18 people or 56% occupy positions under 4 years, as many as 11 people or 34% occupy positions between 4 to 6 years and only 3 people occupy positions more than 6 years or 10%. Table 5. Characteristics of Respondents. No Number of Respondents Percentage Frequency 1 Gender Man 24 75% Women 8 25% Total 32 100% 2 Age 20-30 years 5 16% 31-40 years old 11 34% 41-50 years 16 50% Total 32 100% 3 Level of education S2 13 41% S1 19 59% Total 32 100% 4 Position Head of SKPD 6 19% SKPD Secretary 9 28% Other positions 17 53% Total 32 100% 5 Long Occupied Position 0-4 years old 18 56% 4-6 years 11 34% > 6 years 3 10% Total 32 100% Source: Results of the Research Data, 2015 Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 26 On table 5, it can be seen that employees who work in the planning and budget section are dominated by men rather than women, namely 24 men or 75% and 8 female respondents or 25%. From the age of the respondents indicated that the age range of 20-30 years is only 5 people or 16%, the age range is 31-40 years as many as 11 people or 34% and the age range 41-50 years as many as 16 people or 50%, this indicates that employees related to budget decisions are very senior. Respondents' data from the position can be seen that the position as head of SKPD is as many as 6 people or 19%, positions as 9 SKPD secretaries or 28% and other positions that play a role in budgeting are 17 people or 53%. Data on respondents from the education level, respondents with a master's level of education (S2) as many as 13 people or 41% and the level of undergraduate education (S1) as many as 19 people or 59%. Education of the respondents (S2) who have reached 41% means that the competence of human resources within the government, especially the head of the North Aceh district work unit has been able to be relied on from the level of education and can support the responsibilities given. Judging from the tenure in office as many as 18 people or 56% occupy positions under 4 years, as many as 11 people or 34% occupy positions between 4 to 6 years and only 3 people occupy positions more than 6 years or 10% Research Instrument Test Result The measuring instrument used in this study to obtain data is a questionnaire. To find out whether the measuring instrument (instrument) used in the form of items statement item questionnaire has measured carefully and precisely what was measured in this study, research data was first tested for validity and reliability before being used in data analysis. Research instruments are said to be good if they fulfill the three requirements the main ones are: 1) valid or valid; 2) reliable or reliable; 3) practical. Test the validity of the research measuring instrument using a statistical approach, namely through the value of the score correlation coefficient statement item with a variable total score. Validity test results of all variables declared valid both participatory budgeting varables, clarity of budget goals and managerial performance are declared valid because the value of the item score correlation statement with a total variable score> 0.30. After obtaining valid questionnaire items, another measure that must be met by a measuring instrument is having a high level of reliability or reliability. A measuring instrument is said to be reliable if the measuring instrument is used repeatedly will give relatively the same results (not much different). The statistical approach that can be used to see whether or not a measuring instrument is reliable is the reliability coefficient. As for the suggested size as the basis for the overall statement stated reliably (reliable) is if the reliability coefficient is greater 0.70. Based on the results of processing using the Cronbach's Alpha method obtained the results of reliability testing for research data used as follows: Table 6: Reliability Test Results: Number Variabel Koefisien Reliabilitas Info 1 Participatory Budgeting (X1) 0,829 Reliabel 2 Clarity of Budget Objectives (X2) 0,875 Reliabel 3 Managerial Performance (Y) 0,897 Reliabel Source: Results of the Research Data, 2015 THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 27 Results of Testing Statistical Hypotheses. Before being used as the basis for conclusions, the regression equation obtained and fulfilling the regression assumptions through the above tests need to be tested for the regression coefficient both overall (simultaneously) and individually (partial) to see whether the model is obtained and the regression coefficient can be said to be statistically significant so that general conclusions can be drawn about the effect of government share ownership and foreign share ownership, as well as control variables of company size and profitability on corporate social responsibility disclosures for this research sample. . Table 6. Reliability Test Results No Variable Coefficient Reliability of Information 1 Participatory Budgeting (X1) 0,829 Reliable 2 Clarity of Budget Objectives (X2) 0,875 Reliable 3 Managerial Performance (Y) 0,897 Reliable Source: Results of the Research Data, 2015 Simultaneous Hypothesis Testing (F-Statistic Test). The F-statistic test basically shows whether all the independent variables included in the model together (simultaneous) have a significant effect on the dependent variable. The F value is derived from the ANOVA table (analysis of variance). The results of calculating the F-count for the regression model studied can be seen in Table 7. Table 7. F-Test Results ANOVAb Model Sum of Squares Df Mean Square F Sig. 1 Regression 34873.409 3 11624.470 48.570 .000a Residual 12180.207 51 238.828 Total 47053.616 54 a. Predictors: (Constant), (X2) Clarity of Budget Objectives, (X1) Participatory Budgeting b. Dependent Variable: (Z) Managerial performance From the results of data processing shown in table 7 it can be seen that the F-count value is 48,570 with a p-value of 0,000. Because p-value (0,000) is smaller than the specified α value (0.05), it can be concluded that the independent variable (participatory budgeting, budget target clarity) simultaneously has a significant effect on non-independent variables (managerial performance) at the level 95% confidence. Partial Testing of Hypotheses (t-Statistic Test) To find out whether or not a significant influence of the independent variables partially on an independent variable is used the statistical t-test. Partial testing of hypotheses is done by comparing the calculated values with the t-table value. The t-table value for the error rate of 5% and the degree of freedom (db) = n-k-1 = 32-2-1 = 29 is 1.6674. Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 28 The results of the calculation of the calculated value for each independent variable in the regression model studied and the results of the partial test decision are presented in Table 8. Table 8. Partial Hypothesis Testing (t-Test) Variable t-count t-table P- value(Sig) Decision Test Information X1(Participatory budgeting) 3,284 1,6674 0,002 H0 ditolak signifikan pada α = 0,05 X2 (Clarity of budget goals) 3,162 1,6674 0,015 H0 ditolak signifikan pada α = 0,05 Description: If t count ≤ t table: H0 is accepted or Ha is rejected If thitung>table: Ha is accepted or H0 is rejected The effect of participatory budgeting on company performance. From the results of the calculation, the calculated value for the participatory budgeting variable (X1) is 3.284 with a p-value of 0.002. Because p-value (0.002) is smaller than the predetermined α (0.05), it can be concluded that partially participatory budgeting has a significant positive effect on firm performance at a 95% confidence level. This means that the results of this study successfully rejected H0. The effect of budget target clarity on managerial performance. From the calculation results, the calculated value for the budget target clarity variable (X2) is 3.162 with a p-value of 0.015. Because the p-value (0.015) is smaller than the predetermined α (0.05), it can be concluded that partially the clarity of the budget target also has a significant effect on firm performance at a 95% confidence level. This means that the results of this study managed to reject H0. Regression Equation Model. To see the effect of participatory budgeting (X1) and budget goal clarity (X2), on managerial performance (Y), multiple linear regression analysis is used. Calculation of regression coefficients using SPSS 20.0 software for multiple regression analysis is presented in the following table 9. Table 9. Results of Calculation of Multiple Regression Coefficients Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 10,562 11.679 .872 .387 (X1) PP 1.729 .568 .582 3.284 .002 (X2) KSA 1.681 .680 .284 3.162 .015 Dependent Variable: (Y) Managerial Performance Based on the calculation results in table 9 above, the following forms of multiple linear regression equations are obtained: THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 29 Y = 10,562+ 1,729 X1 + 1,681 X2 + ε The regression coefficient value in the independent variables illustrates if it is estimated that the independent variable increases by one unit and the value of the other independent variables is estimated to be constant or equal to zero, then the value of the dependent variable is expected to rise or can decrease according to the independent variable regression coefficient sign. From the multiple linear regression equation above obtained a constant value of 10.184 means that with variable assumptions of participatory budgeting and clarity of budget targets, the average managerial performance index will be worth 10, 562. The regression coefficient for the X1 variable is positive, indicating the existence of a unidirectional relationship between participatory budgeting (X1) and managerial performance (Y). Positive X1 variable regression coefficient means that the implementation of participatory budgeting will improve managerial performance (Y). The regression coefficient for the X2 variable is positive, indicating the existence of a unidirectional relationship between the clarity of the budget target (X2) and managerial performance (Y). The variable X2 regression coefficient implies that the implementation of clarity of budget targets carried out by the company will improve managerial performance. Determinant Coefficient (R2) The magnitude of the influence of participatory budgeting and the clarity of target objectives on managerial performance is shown by the coefficient of determination for the regression model obtained. The calculation of the determination coefficient (R2) can be seen in table 10. Table 10: Results of the Determination Coefficient (R2) Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate Dimension 1 ,860a ,739 ,726 15,454048 a. Predictors: (Constant), (X2) Clarity of budget goals, (X1) participatory budgeting. b. Dependent Variable: (Y) managerial performance The table above shows the value of the determination coefficient (R Square) of 0.739, meaning that 73.9% of managerial performance can be influenced by participatory budgeting and clarity of budget goals. While the rest of (100% - 73.9%) = 26.1% can be influenced by other variables not examined in this study. From the results of the study obtained the coefficient of determination (R-Square) of 73.9%, while other factors that affect is equal to 26.1%. This means that the variables of participatory budgeting and clarity of budget targets simultaneously influence managerial performance. While the influence of other variables not examined amounted to 26.1% such as budget gaps, organizational commitment, decentralization, and other factors. The results of the study show that participatory budgeting and clarity of budget targets influence the managerial performance of the heads of the North Aceh district government regional work units both simultaneously and partially. The magnitude of the coefficient of determination of participatory budgeting and the clarity of budget targets indicate the extent of the influence on managerial performance. meaning that the higher the involvement of government officials, the more managerial performance will be improved and the more participatory budgeting and clarity of budget targets implemented and implemented will improve the managerial performance of the government. Jurnal Akuntansi ISSN 2303-0356 Vol. 9, No.1 2019 Hal. 17-32 30 The results of the study show that participatory budgeting and clarity of budget targets influence the managerial performance of the heads of the North Aceh district government regional work unit (SKPD). This means that the higher the level of their involvement, it will improve managerial performance. The results of this study are in line with Ahmed's research which states that participatory budgeting has an influence on managerial performance. The results of this study also support Indriantoro's research which states that there is a positive and significant relationship between participatory budgeting and clarity of budget targets with managerial performance. The Effect of Participatory Budgeting on Managerial Performance. Participatory budgeting has a significant influence on managerial performance. The beta coefficient of the participatory budgeting variable on managerial performance is 1,729. Furthermore, the value of the regression coefficient of the participatory budgeting variable on managerial performance is 3.384. Because the tcount is greater than ttable, it is concluded that participatory budgeting has a significant effect on managerial performance. The results of the study showed that participatory budgeting had an effect on managerial performance of the heads of the North Aceh district government regional work unit (SKPD). This means that the higher the level of their involvement, it will improve managerial performance. Referring to the level of beta coefficient between variables, the effect of participatory budgeting on managerial performance is in the moderate category. It is suspected that the basic essence of performance budgeting has not been understood in depth by the authorities in the area with measurable work indicators based on the principle of value for money known as economical, efficient and effective. Effect of Budget Target Clarity on Managerial Performance. Clarity of budget goals has a significant influence on managerial performance. The magnitude of the beta coefficient of the budget target clarity variable on managerial performance is 1.687. The positive path coefficient value indicates the clearer budget target will make managerial performance higher. Furthermore, the value of the regression coefficient of the budget target clarity variable on managerial performance is 3.162. Because the tcount is greater than table, it can be concluded that the clarity of the budget target has a significant effect on managerial performance. The results of the study showed that the clarity of the budget target affected the managerial performance of the heads of the North Aceh district government regional work unit (SKPD). This means that the more clear and specific the budget goals to be achieved and understood by those responsible for achieving budget targets, it will improve managerial performance. Referring to the level of the beta coefficient between variables, the effect of budget target clarity is in the medium category. This indicates that the apparatus' understanding of the budget targets to be achieved still needs to be improved. The results of this study are in line with the results of research obtained by Darma and Halim, as well as the results of Cecilia L Kewo's research. THE EFFECT OF PARTICIPATORY BUDGETING, CLARITY OF BUDGET OBJECTIVES ON MANAGERIAL PERFORMANCE IN NORTH ACEH DISTRICT Mukhlisul Muzahid 31 CONCLUSION Based on the results of the analysis and discussion as well as the findings of the research results, Simultaneously participatory budgeting and clarity of budget targets have a positive and significant effect on the managerial performance of regional work units in the North Aceh district government. Partially participatory budgeting and clarity of budget targets have a positive and significant effect on managerial performance. This can be interpreted that with the involvement in the budgeting process, the budget target is clearer and can be understood by the implementers. The involvement of these structural officials in the budgeting process, the determination of budget targets more clearly and well understood by structural officials as implementing officers will improve the managerial performance of the organization. The application of participatory budgeting and the adequacy of budget targets effectively, effectively and efficiently have a significant impact on the managerial performance of an organization. Suggestion A better understanding of participatory budgeting and clarity of budget goals needs to be improved, given that understanding is not maximized at the subordinate level. For researchers and other parties interested in conducting research on budgeting, it is advisable to explore other factors that influence managerial performance such as budget gaps, organizational commitment, organizational culture, work motivation, and decentralization. REFERENCES Mardiasmo. (2010). Public Sector Accounting, Regional Financial Accounting. Revised Edition. Jakarta: Salemba Empat. Supreme Audit Agency of the Republic of Indonesia.( 2015). Results of Examination of Local Government Financial Reports. Via http: //www.bpk go.id Awio, Godwin. (2010). 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