State Financial Management Guide
State financial management is part of the government's instrument to achieve the aspired state goal of realizing a just and prosperous society. To realize these ideals, regulations and provisions regarding state financial management are prepared both for its business processes and the preparation of Human Resources capacity related to state financial management.
Human Resources play an important role in the management of state finances, both within the scope of the State Budget and the Regional Revenue and Expenditure Budget.
The important role is reflected in the involvement of these Human Resources in the functions of planning, implementing, and financial accountability.
Human Resources Aspects in the context of managing the State Budget are regulated in Chapter II of Law Number 1 of 2004 concerning the State Treasury which specifically regulates State Treasury Officials.
Under the regulation, the State Treasury Officer consists of the Budget User, the State or Local Treasurer General, and the Revenue/Expenditure Treasurer. Furthermore, Government Regulation Number 45 of 2013 concerning Procedures for implementing the State Budget, describes in more detail the scope of State Treasury Officials who are classified as Budget Users, including Budget Users themselves, Budget User Powers, Commitment Making Officers, Warrant Signing Officers, and Treasurer of Receipts/Expenditures.
In the organizational structure of the financial management of the Task Force, a task force has a State Treasury Officer consisting of 1 Budget User Power of Attorney, 1 or more Commitment Making Officers, 1 Warrant Signing Officer, and 1 Expenditure Treasurer and Revenue Treasurer (for work units that have Non-Functional Tax State Revenue).
As a continuation of the Digital Technical Guide Series of State Treasury Officials, as well as in order to provide a medium for increasing the capacity of State Treasury Officials in carrying out their duties and authorities in managing the finances of the State Budget in all work units, the Directorate General of Treasury initiated to publish digital publications that can be used by one of the State Treasury Officials, namely the Treasurer of Expenditure. In this chapter, various preliminary information is presented for readers, ranging from the background, purpose, to the scope of writing.
Background
As a reflection of the application of good rules in state financial management, the management of the State Budget should be carried out based on the principles of professionalism, transparency, and accountability, and result-oriented, as reflected in Law Number 17 of 2003 concerning State Finance. For this reason, it is necessary to strengthen the Human Resources element of financial management, which at the technical level is realized, among others, through various capacity building programs for State Treasury Officials. Based on data owned by the Directorate General of Treasury until the end of March 2017, there were 95,659 State Treasury Officials spread across 23,653 Work Units throughout Indonesia.
The number is spread geographically from big cities to remote regencies/cities throughout Indonesia.
With a large number and a very wide geographical scope, capacity building through the implementation of training alone is not enough with various considerations, including efficiency and effectiveness.
One of the solutions initiated by the Directorate General of Treasury in providing capacity building support for State Treasury Officials is to compile an electronically published Expenditure Treasurer Technical Guide. This electronic publication is expected to address the problem of wide geographical coverage and the sheer number of Treasury Officers. With the spirit of going green, the use of digital book technology is expected to increase the efficiency and effectiveness of the capacity building program of State Treasury Officials.
This technical guide was compiled as the fifth volume of the State Treasury Officers' Digital Technical Guide Series.
Apart from the importance of the role of the Treasurer of Expenditures in the management of the finances of the Task Force as an "extension" of the Minister of Finance as the General Treasurer of the State who is in the Task Force and is responsible for state expenditures from the money he manages, the Treasurer of Expenditures is also a topic chosen in order to enrich the Digital Technical Guide Series of State Treasury Officials who have previously published Technical Guidelines for Warrant Signing Officers Pay and Commitment Making Officer on previous volumes. At the technical level, the Treasurer of Expenditures is tasked with receiving, storing, paying, administering, and accounting for money for state expenditure purposes in the context of implementing the State Budget. What deserves attention is that the Treasurer of Expenditures is personally responsible for the money he manages.
Apart from the important role of the Treasurer of Expenditure in the management of the State Budget, several problems related to budget implementation obtained from the results of the evaluation of work unit performance indicators by the Directorate of Budget Implementation of the Directorate General of Treasury also show that the performance of budget implementation at the Work Unit level still needs to be improved. Based on the evaluation of the performance of the implementation of the 2016 fiscal year budget in all Ministries of State / Institutions, implemented by the Directorate General of Treasury, there are several facts, including the following:
1. There was a delay in submitting SPM GUP to KPPN (more than 30 days) amounting to 52,454 SPM GUP or 17%.
2. There was a delay in submitting the LPJ Treasurer of Expenditure to KPPN which reached more than one-third.
The above conditions indicate that further strategies are needed in order to improve the performance of budget implementation at the Work Unit level. One of the strategies that needs to be taken seriously is to increase the capacity of State Treasury Officials who are elements of Human Resources in the management of work force finances. With a very large number of State Treasury Officials spread throughout the Work Units in Indonesia, an alternative capacity building media is needed apart from education and training which has been the main capital in increasing the capacity of Human Resources.
By issuing the Technical Guidelines for the Treasurer of Expenditure digitally, it is hoped that the Directorate General of Treasury, in this case the Directorate of Treasury Systems can provide an alternative in the form of capacity building media that can be easily accessed by all State Treasury Officials throughout Indonesia. By utilizing digital publication technology, it is also hoped that the cost of producing this capacity-building media can be reduced by minimizing conventional printing that uses paper and requires large costs, so that the effectiveness and efficiency of increasing the capacity of State Treasury Officials can be increased.