CaLK DISCLOSURE LEVEL RESULT AND REVIEW

1854 Sample number for CaLK component was 267 PEMDA or 50.6 of PEMDA population. Unlike Balance Sheet, LAK and LAR, CaLK disclosure level was low at 47. This showed that the information presented in CaLK had not included most of the information required by PP SAP. Standard deviation was low at 9 and showed that the CaLK disclosure levels tend to be consistent. The highest score of 68 was West Sumatera, while the lowest at 11 was North Kolaka. The top 5 province based on average score were NTB, Bali, DIY, NTT and East Kalimantan average score above 54. This composition differed greatly from the result of Balance Sheet, LAK and LRA. Although those 5 provinces were not at the top 5 of Balance Sheet, LAK and LRA, but their disclosure levels were above 80. Further analysis showed the top 3 provinces, NTB, Bali and DIY had the highest ratio of the number of PEMDA with CaLK that had been reviewed by BPK to total number of PEMDA in that province. NTB had the highest CaLK score of 56 and the number of PEMDA with CaLK in 2007 that had been audited by BPK were 9 out of 11 PEMDA. Besides that, consistent with the results of Balance Sheet, LAK and LRA, the ratio of number of PEMDA with issued FS to number of PEMDA in a province showed DIY, Bali, East Java, West Java and Gorontalo at the top 5 with a high ratio at above 83. Meanwhile the analysis result of CaLK information component showed low disclosure level. Of 286 checklists, more than 55 scored below 50 or nearly 75 scored below 70. Based on an in-depth analysis of CaLK presentation it was discovered that although several information component had been presented, the contents were merely details of posts included in Balance Sheet, LAK and LRA, without other economical explanation this research was not designed to provide substance over disclosure quality, merely to quantify the number of disclosures. Moreover, several information component of CaLK especially the part about the general policy of the disclosed information, had not illustrate the fiscalfinancial policy and macro economy related to APBD Local Revenue and Expenditure 1855 Budget and APBD accomplishments. This happened also on the information about performance.

3.5 OVERALL DISCLOSURE LEVEL

Overall this research analyzed the 2007 FS disclosure of 277 PEMDA 55.7 of total PEεDA in Indonesia. This number is improved compared to BAKD‘s data that stated that there were 212 PEMDA with FS in 2006. However not all PEMDA issued a completed and BPK-audited FS. The composition of sampled PEMDA based on FS components issued are as such: 1. 255 PEMDA issued all 4 FS components in 2007 and were audited by BPK 92.1 of total sample or 51.3 of total PEMDA population; 2. 10 PEMDA issued 3 FS components in 2007 and were audited by BPK 3.6 of total sample or 2 of total PEMDA population; 3. 7 PEMDA issued 2 FS components in 2007 and were audited by BPK 2.5 of total sample or 1.4 of total PEMDA population; and 4. 5 PEMDA issued 1 FS component in 2007 and were audited by BPK 1.8 of total sample or 1 of total PEMDA population. The number and composition of this research sample is credible enough so that the result will be representative of the financial reporting condition of all PEMDA in Indonesia in 2007. To see the overall disclosure level is to calculate the average score unweighted for the 4 components of FS in 2007. Result shows that the top 5 PEMDA are Pekanbaru Riau, Dumai Riau, Natuna Riau, Malinau Kaltim and Nunukan Kaltim. All 5 PEMDA consistently have high scores for Balance Sheet, LAK and LRA disclosure at above 90 and CaLK disclosure score at above 50. Whereas the lowest 5 PEMDA are Lubuk Linggau Sumsel, Bangka Barat Babel, Pulang Pisau Kalteng, Gorontalo Gorontalo, South Minahasa Sulut. These 5 PEMDA consistently have Balance Sheet, LAK and LRA disclosure score below 80 and CaLK disclosure level below 37. 1856 Evaluation based on average score of disclosure level for all FS components of PEMDA in each province showed the top 5 are West Sulawesi, North Maluku, Riau, East Kalimantan and Riau. However just like FS components analysis, the number of PEMDA in each province must be calculated to interpret those rankings. For Riau and East Kalimantan, disclosure score were obtained from the average of 6 and 8 PEMDA, so they are valid enough as the provinces with the highest disclosure level. Meanwhile 3 other provinces, West Sulawesi, North Maluku ad Riau, precautions must be taken when concluding that these provinces have the highest score, considering each were affected by less than 3 PEMDA.

3.6 FS DISCLOSURE LEVEL DETERMINANTS

This section will analyze the determinants or factors influencing the disparity of FS disclosure level among PEMDA and the difference among FS components. The analysis is based on the aforementioned disclosure level scores, literature studies and in-depth discussion with regulators, reviewers, standard formulators, consultants and PEMDA staff discussion participants were invited as individuals and were not acting on behalf of any institutions, however opinions were assumed to reflect the institutions where they work. Disclosure score for each component Balance Sheet, LAK, LRA and CaLK tend to be consistent among PEMDA. This is noticeable from the standard deviation of below 5. The same applies for the standard deviation of all FS disclosure at 4. Therefore this research concludes that the influencing factor of PEεDA‘s FS disclosure do not come from the unique characteristics of each PEMDA. In other words this research estimates that the factors influencing PEεDA‘s FS disclosure level are common and experienced by all PEεDA in Indonesia. Moreover, because the disclosure level of Balance Sheet, LAK and LRA are high and consistent enough, then the determinants analysis of disclosure level will be focused on CaLK.