| Summary: | Local Government assets is one important element in local governance and
community service. Local Government assets should be managed based on functional principles, rule of law, transparency, efficiency, accountability and
value certainty. It is intended to accomplish the efficiency, transparency and
accountability in the management of Regional Revenue and Expenditure Budget
(APBD). In Local Government assets management, there are some critical points such as those in the planning, procurement, maintenance and removal stages. In
practice, however, those things received less attention from the local government. This can be seen from Semester Examination Results Summary (IHPS) II of 2010
indicating the relatively many Local Government Finance Reports that generate
qualified opinion, adverse opinion and Disclaimer in which the asset management plays a role. The Supreme Audit Board of Republic Indonesia (BPK RI) audit of Local Government Finance Reports 2009 found also 1.460 cases of Internal
Control System (ICS) weaknesses. Weaknesses common to ICS are inadequate asset control issues such as improper fixed asset capitalization, discrepancy
between the recording of balance of fixed asset with those in source document,
and fixed asset recordings that are not correspond to the amount and actual
condition of the asset. The study aims to evaluate the effectiveness of Internal Control System of
Local Government assets management at the Inspectorate of Kulon Progo Regencial Government. The study is qualitative in nature that employs a case
study in Inspectorate of Kulon Progo Regency. Data collection was conducted by interviews and observations. The research data were also obtained from written
sources in the form of documents on the management of Local Government assets available in the Inspectorate of Kulon Progo Regency. The method of analysis employed in this study is component testing of Internal Control System by comparing the criteria for adequate Internal Control System with data on the implementation of Internal Control System of Local Government Assets at the
Inspectorate of Kulon Progo Regency obtained in the data collection phase. The results indicated that the implementation of the Internal Control System of the Local Government Assets management at the Inspectorate of Kulon
Progo Regency remains inadequate. This can be seen by a number of weaknesses
in each component of the Internal Control System of the Local Government Asset
Management at the Inspectorate of Kulon Progo Regencial Office.
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