ANALISIS KINERJA KEUANGAN DAERAH DAN PETA KEMAMPUAN KEUANGAN PEMERINTAHAN KABUPATEN DAN KOTA DI PROVINSI RIAU TAHUN 2011-2013

This study aimed to know the local financial performance and financial capability map of the districts and cities in Riau Province. This study used a descriptive research. Population of this research is all the governments of districts and cities in Riau Province that consists of 10 districts and 2 cities. Data analysis methods that used are regional financial independence ratio, PAD effectiveness ratio, PAD growth ratio, and PAD share ratio. The results of this study showed that the regional financial independe nce, PAD growth, and PAD share of the cities area are better than districts area of Riau Province, while the PAD effectiveness of districts area are better than cities area. Financial capability of each region is diverse, from the most ideal conditions up to the worst conditions that described based on the average ratio of PAD growth and PAD share of each region to the overall average in Riau Province. This indicates that the local governments of Riau Province need to make the improvement of their financial’s management. Keywords: Local Financial Performance, Financial Capability, Local Financial Independence, PAD Effectiveness, PAD Growth, PAD Shar