Performance - Based Budgeting as Surveillance for the Accountability

Performance accountability of local government presents budget allocation and realization to carry out the main tasks in achieving performance indicators. The achievement of these performance indicators can be accounted for and realized through performance-based budgeting (Young, 2003). However, in the implementation of performance - based budgeting required surveillance, control, responsibility, and accountability of the performance of government agencies (SOX 2002, Iman (2005). Internal control system helps to conduct surveillance against the course of governance and financial management are clean and responsible (IIA Standards, 2002). The purpose of this research is to find out whether performance-based Budgets and the Internal Control System effect on performance accountability of local government. The study proposed nine hypothesis and The results showed that the implementation of the budget, the budget reporting, control and monitoring activities (supervision) has an influence on performance accountability of government agencies.