Effectiveness of Budget Absorption from a Public Financial Management Perspective at the Tourism Office of North Bolaang Mongondow Regency

Abstract

This study examines the effectiveness of budget absorption at the Tourism Office of North Bolaang Mongondow Regency from a Public Financial Management (PFM) perspective. It focuses on four interconnected financial management cycles: planning, implementation, reporting, and accountability. A descriptive qualitative approach was employed. Data were collected through observation, in-depth interviews with six purposively selected informants consisting of five internal agency personnel and one regional inspectorate auditor, and documentation of planning, budget execution, financial reporting, and audit follow-up for 2022–2024. Data were analyzed through the interactive model of Miles and Huberman and validated using source, technique, and theoretical triangulation. The findings show that budget absorption has not been fully effective. Financial planning complies procedurally with regional planning documents, but budget credibility remains weak, as absorption reached only 80–85%, program achievement lagged 13–14 percentage points behind absorption, and four programs were not implemented each year. Budget execution is constrained by internal delays, incomplete administrative documents, weak monitoring, procurement issues, and SIPD limitations, while year-end budget balances remained above IDR 800 million annually. Financial reporting improved, with publication time reduced from six months to three months, although disclosure quality and public feedback remain limited. Accountability improved in audit recommendation follow-up from 60% to 80%, but the absence of a formal follow-up SOP and weak outcome accountability remain challenges. The study proposes an integrated, context-specific PFM improvement model based on outcome-oriented indicators, early-year administrative readiness, periodic monitoring, informative reporting, and institutionalized audit follow-up procedures.