Analysis of Fixed Asset Management and Administration in Klaten Regency COVER

(1)

Analysis of Fixed Asset Management and Administration in Klaten Regency

COVER

THESIS

Submitted to the Faculty of Economics and Business To Meet a Part of the Requirements

For Achieving a Bachelor of Economics

By:

Kareza Rorimpandey 232013508

FACULTY OF ECONOMICS AND BUSINESS SATYA WACANA CHRISTIAN UNIVERSITY

SALATIGA 2017

(2)

i

PERNYATAAN TIDAK PLAGIAT

(3)

ii

PERNYATAAN AKSES

(4)

iii

STATEMENT OF THESIS AUTHENTICITY

(5)

iv

APPROVAL SHEET

(6)

v

LIFE MOTTO

“Let us never negotiate out of fear, but let us never fear to negotiate.”

John F. Kennedy

“You look back and you remember the good, the bad and the ugly.”

Jenson Button

“It’s second place and it does take something away from it.”

Nicky Hayden

(7)

vi

ABSTRACT

Government financial openness, presentation, and disclosure are some of the important aspects in governmental organization practice in Indonesia. Indonesian people and community keep an eye on government bureaucrats in every level from the central government down to the regional level government. Every financial aspect from planning until execution phase should be reported to public. Accounting function to give financial information is also involved in the government financial aspect. In accounting reporting, fixed asset contributes bigger value than the others. The government needs fixed asset to support its public serving operation that needs big amount of asset.

With bigger value and amount meaning, there is a bigger risk and manipulation change which can cause miss record and loss in the future in the fixed asset management process, although some kinds of mistake were not intentionally happen. Human error or procedure misunderstanding was the main problem in this intentional mistake beside the inappropriate management act. In Indonesia, the regulation change was very common. It makes the practice and regulation become unsynchronized. There are many aspects in the government accounting practices which can be researched. Fixed asset was only one out of many financial and accounting activities in the government organization. This research only focuses on government’s tangible asset. There are so many other kinds of asset and process behind the government accounting practices that can be researched and investigated later.

Keyword: Public Sector Accounting, Fixed Asset, Asset Management

(8)

vii

SARIPATI

Keterbukaan, penyajian dan pengungkapan keuangan Pemerintah adalah salah satu aspek yang sangat penting didalam praktik organisasi pemerintahan di Indonesia. Publik dan masyarakat Indonesia akan selalu memperhatikan pejabat pemerintah dalam semua level baik dari Pemerintah Pusat hingga ke Daerah. Setiap proses finansial dari perencanaan hingga eksekusi program harus dapat dilaporkan kepada masyarakat luas. Fungsi Akuntansi untuk menyajikan informasi juga termasuk dalam aspek finansial Pemerintah. Dalam pelaporan akuntansi, Aset Tetap memiliki sumbangsih nilai yang besar dibandingkan yang lainnya. Pemerintah membutuhkan Aset Tetap untuk menjalankan pelayanan kepada masyarakat yang pasti memerlukan jumlah aset yang cukup besar.

Dengan nilai dan jumlah yang besar, pasti akan muncul resiko dan kesempatan penyalahgunaan yang dapat menimbulkan salah catat dan kerugian di masa mendatang, meskipun kesalahan yang tidak disengaja juga dapat terjadi. Human Error ataupun kesalahan memahami prosedur adalah salah satu masalah ketidaksengajaan disamping tindakan penyelewengan yang disengaja. Di Indonesia, perubahan peraturan adalah hal yang biasa. Ini menimbulkan praktik dan regulasi kerap kali tidak sejalan. Banyak aspek dalam praktik akuntansi pemerintah yang dapat diteliti. Aset Tetap hanyalah salah satu dari banyak praktik akuntansi dan keuangan dalam organisasi Pemerintahan. Penelitian ini hanya berfokus pada Aset yang dapat terlihat (Tangible) milik pemerintah. Banyak aspek dan proses dibalik praktik akuntansi aset tetap pemerintah yang akan diteliti dalam penelitian ini.

Kata Kunci: Akuntansi Sektor Publik, Aset Tetap, Manajemen Aset

(9)

viii

PREFACE

Asset management is one of the most important things in all organizations and companies while running the business. Whether in service or goods business, organization should have an asset to maintain and support their operation. Many organizations or companies maintain their business profit. Unfortunately, many of their operations ignore their asset management.

Government accounting practices also include fixed asset management. That is because in governmental level, every aspect is reported to higher level and government auditor. As time goes by, government operation and practices have become more complex and complicated. As it has been ruled by the central government, regional government autonomy has been applied to decentralize and support the role of the central government in the regional level development program. Regional government has the authority to perform, operate, and maintain their household activities.

Fixed asset was one of the government wealth to execute public servicing program. With the biggest value and most tangible amount in financial report, fixed asset should be well managed and maintained. In the practice, many companies and organizations including governmental organizations overrule their fixed asset management practices.

Government’s fixed asset management will be discussed in this research, including the research problem and question which is started in introduction, theoretical framework and definition about fixed asset, as well as the methodology to obtain the data. Observation and interview result, conclusion, suggestion and research limitation hopefully could be used as the basis for future fixed asset researches. Expectantly, this thesis can bring developments and improvisations of DPPKAD Kabupaten Klaten and students who take public sector accounting, especially in fixed asset management.

Salatiga, June 22^nd 2017

Kareza Rorimpandey

(10)

ix

ACKNOWLEDGEMENTS

All praises to Jesus Christ for all the countless blessing, strength, and peace of my mind and health that has been given to me. A big thanks to my family for their love and spiritual support throughout my life especially supporting to finish this thesis.

Foremost, I would like to express my special gratitude toward my research advisor Priyo Hari Adi S.E, M.Si. Akt. for giving opinion and suggestion about the topic of this thesis, for impating his knowledge and expertise in this research, for the continuous support of my bachelor study and research, and his kind supervision. It was a pleasure for me to work under his supervision.

I am highly indebted to Dinas Pendapatan, Pengelolaan Keuangan dan Aset Daerah Kabupaten Klaten for their readiness, openness and supervision as well as for providing important information for data collection process. Special thank you to Mr. Sunarna, the head of DPPKAD Kabupaten Klaten who gave me permission and access to do the data collection process at DPPKAD Kabupaten Klaten. It was a pleasure to have a relation with DPPKAD Kabupaten Klaten.

I would like to express my gratitude to my colleagues and friends in the Economic and Business Faculty: Yusuf, Sintong, Andre, Angga, Silvi, Fernanda and the others FEB UKSW friends for their support, suggestion, teasing, inspiring and harsh comments. My thanks and appreciation also go to my friends: Ege, Reza and Mas Fajar Eko who have willingly helped me out with their skills and abilities.

Last, I also express my thanks and appreciation for Satya Wacana Christian University, expecially the Economic and Business Faculty and International Class of Management and Accounting Program lecturer and staff, for giving their expertise, advice and support during my study.

Salatiga,June 22^nd 2017 Kareza Rorimpandey

(11)

x

TABLE OF CONTENT

PERNYATAAN TIDAK PLAGIAT ... i

PERNYATAAN AKSES ... ii

STATEMENT OF THESIS AUTHENTICITY ... iii

APPROVAL SHEET ... iv

LIFE MOTTO... v

ABSTRACT ... vi

SARIPATI ... vii

PREFACE ... viii

ACKNOWLEDGEMENTS ... ix

TABLE OF CONTENT ... x

INTRODUCTION ... 1

Background of the Study ... 1

Research Problem ... 4

Research Purpose ... 4

Contribution of the Study... 5

LITERATURE STUDIES ... 5

Definition ... 5

Classification... 6

Land ... 6

Buildings ... 6

Equipment and Machinery ... 6

Road, Irrigation, and Networking ... 7

Other Fixed Assets ... 7

(12)

xi

Construction in Progress ... 7

Fixed Asset Accounting ... 7

Recognition ... 7

Measurement ... 8

Valuation ... 9

Depreciation ... 9

Revaluation... 10

Fixed Asset Management ... 10

Previous Studies ... 10

METHODOLOGY ... 11

Type of Research ... 11

Time and Research Location ... 11

Research Information ... 12

Data Collection Process ... 13

Observation ... 13

Interview... 13

Documentation ... 13

Data Analysis ... 14

Operational Definition ... 14

FINDING ... 15

Fixed Asset Verification ... 15

Fixed Asset Inventory ... 16

Fixed Asset Validation: SIMDA BMD Inputting ... 17

Fixed Asset Valuation ... 18

(13)

xii

Labeling ... 19

SIMDA BMD Implementation ... 20

Fixed Asset Measurement Aspect ... 20

Fixed Asset Valuation Aspect ... 21

Fixed Asset Depreciation Aspect ... 21

ANALYSIS ... 22

PROBLEMS ... 22

Fixed Asset Beginning Balance ... 22

Human Resource ... 24

CONCLUSION & SUGGESTION ... 24

Conclusion ... 24

Research Limitation ... 25

Suggestion ... 25

REFERENCES ... 27

INTERVIEW SCRIPT 1: DPPKAD Kab.Klaten Accounting Department Staff ... 28

INTERVIEW SCRIPT 2: DPPKAD Kab.Klaten Asset Department Staff ... 38

INTERVIEW SCRIPT 3: Head of DPPKAD Kab.Klaten ... 51

CYCLE OF FIXED ASSET ADMINISTRATION ... 57

ORGANIZATION STRUCTURE ... 58

APPENDIX 1... 59

(14)

xiii

APPENDIX 10... 68

APPENDIX 11... 69

APPENDIX 12... 70