Evaluation of Public Sector Financial Performance Using Value For Money in Denpasar City Environmental Service

Abstract

This study aims to analyze the financial performance of the Denpasar Environmental Agency (DLH) using the Value for Money (VFM) approach. In an effort to improve accountability and transparency of budget management, DLH Denpasar needs to evaluate the effectiveness, efficiency, and economy of the use of the received budget. The method used in this study is quantitative descriptive with data collection through financial report documentation and the Government Agency Performance Accountability Report (LAKIP). The analysis was carried out by calculating three main VFM ratios, namely the Economic Ratio, the Efficiency Ratio, and the Effectiveness Ratio. The results show that DLH Denpasar has succeeded in managing its budget well, with the economic ratio consistently being in the "Economical" to "Very Economical" category throughout the 2019-2023 period. The efficiency ratio shows efficient and increasing performance, with the "Efficient" to "Very Efficient" category. Meanwhile, the effectiveness ratio shows excellent results, with the achievement of more than 100% of the revenue budget target. This study provides an overview of DLH's success in implementing VFM principles for optimal budget management. The suggestion from this research is that DLH continues to improve supervision and evaluation of budget implementation in order to maintain and improve the performance that has been achieved.