19 Juli 2018

Non-Compliance in Public Financial Management: A Case Study of a Local Government in Indonesia

Budi Cahyono
Curtin University

Abstract

Utilising content analysis of external audit reports published between 2009 and 2014, this study identified systemic problems resulting from non-compliance in public financial management (PFM) operations of local governments in Indonesia. Further, a single case study was conducted to investigate factors for non-compliance and how they influence the PFM actors to be involved in non-compliance practices. Findings of this study suggested that employees’ motives and dysfunctional bureaucratic structures have contributed to the emergence of non-compliance.

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