Financial Performance Analysis in Serengan District Surakarta City Based on Fiscal Year 2021-2025

Abstract

This study aims to analyze the influence of budget planning, the percentage of cash budget in accordance with regulations, the level of budget absorption, agency performance assessment, and the level of budget return on financial performance in Serengan District, Surakarta City in the 2021–2025 fiscal year. The background of this study is based on the condition of sub-district financial management that has not shown optimal effectiveness and efficiency, which is characterized by a mismatch between activity plans and budget allocations, delays in activity realization, and the inconsistent use of financial performance indicators. This study uses a quantitative approach with secondary data sourced from the Budget Implementation Document (DPA) and the financial reports of Serengan District for the 2021–2025 period. The analytical method used is multiple linear regression, supplemented by classical assumption tests including residual normality tests, multicollinearity tests, heteroscedasticity tests, and autocorrelation tests. The results of theresearch shows thatBudget planning has a significant negative effect on financial performancen,Cash budget has a significant positive effect on financial performancean,The level of budget absorption has a significant positive effect on financial performance.an,Agency performance assessment does not have a significant effect on financial performancedreams andThe budget return rate (SiLPA) has a significant positive effect on performancefinanceThis study concludes that optimizing the cash budget and increasing budget absorption evenly throughout the year are key factors in improving the sub-district's financial performance. It is recommended that Serengan Sub-district strengthen the quality of cash budget preparation, improve the competence of human resources in financial management, and integrate performance assessment results more substantively into the next budget planning cycle.