Law No.17/2003 on State Finances and the pattern has changed the system of state financial management. Brought in a legal system that is performance-based budgeting system (performance budgeting system) which make the performance as a focus so that the potential of all should be directed to support the desired performance can be achieved. Simply explained, announced that the performance achieved with the allocated funds efficiently and effectively. In line with the provisions stipulated in the Act No.17 of 2003, the Minister of Finance as an assistant to the President in the financial sector is basically the Chief Financial Officer (CFO) The Government of Indonesia while each Minister / Head of the Institution is Operacional Chief Officer (COO) for field statu government duties.
From observations of the state budget for 2005 through the first quarter of 2006 showed the transfer of administrative authority previously held by the finance ministry to ministry / institution showing a portion of the mind set of the KPA is still principled yardstick of success is measured by the level of achievement melting (absorption) without too much attention to the quality of its performance . Based on the above problems then at the regional office of DJPBN Radin Sumatra in Medan, Padang Region III Office DJPBN feel the need to raise the issue on the transfer of administrative authority of the Department / Institution particularly in terms of efficient and effective execution of payment
Objectives In order to carry out missions in the field of public finance reforms that create a clean government (clean governance), the Minister of Finance as General Treasurer of State (BUN) and other officials appointed as the Authority BUN is not just a cashier who only carry out state revenues and expenditures without the right to assess the truth of state revenues and expenditures, but the Minister of Finance as a finance manager in the sense that the entire function as well as cashier, the comptroller and financial managers. Since implementation in 2005 through the first quarter of 2006 show has not changed the mind set of the KPA and the implementation mechanism of the payment budget KPPN concrete steps necessary to control the financial management functions of the state finance ministry said in a sense entirely: cashier, the comptroller and financial managers to create cost efficiencies and effectiveness in the implementation of the budget (costs and oper effektiveness