The Effect of Local Government Characteristics And Audit Findings on Financial Performance With Responsibility Level Moderation

Purpose : to examine the effect of local governments characteristics and the findings of the investigation on financial performance moderated by the level of responsiveness of local governments.. Methodology: population and sample as many as 180 districts and cities. Secondary data sourced from the report on the results of the examination of the financial statements audited by the Audit Board of Republic of Indonesia from 2017 to 2019. The analysis technique of panel data regression analysis was data processing software eviews with a random effect model. Results: The results showed the size of the legislative, the weakness of the SPI and non-compliance with laws and regulations had no effect on financial performance. Meanwhile, the size of the government, and the level of wealth had a significant effect on financial performance. The level of responsiveness cannot strengthen the influence of size of legislative , weaknesses of SPI and non-compliance with laws and regulations on financial performance, while the level of responsiveness can strengthen the influence of government size and the level of wealth of local governments on financial performance.Limitation: the number of samples was only 12%, the results cannot be generalized. Contribution: local governments must realize recommendations on the findings of BPK RI and manage the assets effectively and efficiently. Ministry of Home Affairs, the provisions on the number of members of the legislative need to be reviewed