Financial System

Legislation in the field of state finances

1. Law No. 17 of 2003
2. Law No. 1 of 2004
3. Law No. 15 of 2004
4. PP 58 Year 2005
5. Regulation No. 13 of 2006
6. Regulation No. 59 Year 2007
7. Regulation No. 58 Year 2008
The financial system
1. Accounting
A system consisting of subsystems that are interconnected and have a specific
purpose. Accounting system consists of:
Input: evidence of transactions in the form of documents
Process: registration in the general journal, general ledger and subsidiary
ledgers.
Output: financial statements
The criteria that must be met accounting system:
a. Relevant
b. Complete
c. Can be compared
An important component of the government accounting system:
a. Procedures transaction
b. A standard chart of accounts
c. Institutional arrangements
d. Hardware and software
e. Skilled personnel
Financial accounting area is a process of identification, measurement, recording,
and reporting of economic transactions of an area that is used as information in
the context of economic decision making by those in need.
Accounting system SKPD
Accounting procedures at SKPD include:
a. The process of recording and summarizing

b. Financial reporting in the context of accountability of the budget

2. APBN and APBD

Budget is directly managed state finances
Budgets are directly managed the financial area
The elements APBN / APBD:
a. Details of planned activities
b. Source of revenue
c. Expenses
d. Types of activities in the form of figures
e. Budget period
Local Government budget system
A budget is a statement about the estimated performance will be achieved
during certain periods set forth in the financial measures.
Aspects of the Budget the Government:
a. Aspects of planning
b. Aspects of control
c. Transparency and public accountability
Principles of Government Budget:
a. By legislative authorities
- The budget must obtain authority from the legislative
b. Comprehensive
- The budget must contain the entire government revenue and expenditure
c. Wholeness Budget
- All government revenues and expenditure must be gathered in a common fund.
d. Nondiscretionary appropriation
- Total budget approved by the legislature must be used economically, efficiently,
and effectively
e. Periodic
- The budget must be prepared for a certain period
f. Accurate
- Budget receipts and expenditure must be prepared accurately
g. Clear

- The budget must be clear, sderhana and easily understood by the public
h. Transparent
- The budget can be seen easily by the public
Regional Financial Management System (Subsystem reception)
Two types of reception areas:
1. Revenues area
2. Acceptance of local financing
Government Accounting System
Standard accounting and government accounting systems
Efforts to achieve transparency and accountability of state finances:
a. Delivery of government financial accountability report that meets the
principles of timely
b. Compiled by following the Government Accounting Standards (SAP)
SAP
- Yag accounting principles applied in preparing and presenting the financial
statements of the government.
- Stated in the form of Government Accounting Standards (PSAP)
- Implemented in scope pemrintahan (central government, local government,
and organizational units that according to the laws and regulations that must be
present financial statements.

FINANCIAL STATEMENTS
The report is structured on the financial position and transactions carried out by
an enitas reporting.
Work Units (SKPD) and the Regional Finance Management Task Unit (SKPKD)
must submit a report that includes:
a. Budget realization report
b. Balance sheet area
c. Cash flow statement
d. Notes to the financial statements
Regional Income
Recognized the right of local governments sebgaia adding net worth in the
period concerned.
Local income consists of:

a. Local Revenue (PAD)

- An enhanced representation of regional capabilities in tapping its potential.
b. Fund Balance
- Funds sourced from APBN allocated to the regions to finance the needs of the
region in the context of decentralization.
c. Other PAD legitimate
1. Proceeds from sales of regional assets
2. Services giro
3. Interest income
4. Acceptance of compensation
5. Acceptance sales commission
6. Acceptance advantage of currency exchange rate differences
7. Income penalty for late work
8. Income tax penalty
9. Revenue assurance execution results
10. Pengdap atan of refund
11. The public and social facilities
12. Revenue from the provision of education
13. Revenue from installment sales
Regional Finance
Article 156 (1) of Law No. 32 2004 was "all the rights and obligations of areas
that can be valued in money and everything in the form of money and goods
that can be owned areas that relate to the implementation of rights and
obligations."

The elements of local finance that can be valued in money, as follows.

a. Rights area
b. Obligations area
c. Wealth associated with the exercise of rights and obligations
1. The financial management
Public finance management is the overall state of financial management officer
activities in accordance with the position and kewenanganny, which includes
planning, implementation, oversight, and accountability.
finance local business

1. Holders of financial management powers is the head area

2. Coordinating the financial management area (regional secretary) has a role
and function in helping to draw up the regional head of policy and coordinating
the implementation of local government affairs
3. Officials of local finance manager is the head of the working unit of regional
finance managers who have a duty to implement the budget management of
revenue and expenditure (budget) as well as acting as local treasurer.
4. Users are official budget authorizes the use of budget holders
5. Officials penatausaan SKPD finance officials who are carrying out the functions
of financial administration at SKPD
6. Officials technical implementation is an official activity at SKPD work units that
carry out one or more activities of the program
7. Treasurer receipts are functional officials designated to receive, store, pay,
administer, and account for the money for the purpose of shopping areas
The principles of financial management
According to Law No. 32 of 2004 article 23 paragraph (2), "financial management
is done in an efficient, effective, transparent, accountable, orderly, fair,
appropriate, and obey the laws and regulations."
According to Law No. 3 2004 Article 66 paragraph (1), "local finance is managed
in an orderly, obedient to laws and regulations, efficient, economical, effective,
transparent and accountable with regard to fairness, decency, and the benefits
to society."
The concept of economical, efficient, effective (value for money), transparency,
and accountability (responsibility) is a characteristic of public good governance
(good governance) version of the UNDP