An Exploratory of Performance-Based Budgeting Practices in Indonesian Private School Agus Wahyudin, Agung Yulianto, and Badingatus Solikhah
Accounting Department,Universitas Negeri Semarang, Semarang, Central Java, Indonesia
Abstract
Due to the demands of good corporate governance, both public and private sector management must be professional, transparent and accountable. The emergence of these reform demands is a challenge and prospect for educational institutions. The education management in private schools has very different implications because this school has a high financial dependence on the foundation that oversees and the environment of parents and community as stakeholders. Prior research provides empirical evidence that implementation of planning and budgeting in schools has not been well managing and has many obstacles. The purpose of this paper is to explore the budgeting process, stakeholder participation level, constraints emerging in the budgeting process, and implementation of performance-based budgets in vocational high schools. The research was conducted in three private schools around Semarang City Indonesia. Respondents in this research are principals, treasurers, foundation boards, committees, teachers, students, staff, and parents. The results show that the budget in private schools has not been entirely based on vision, mission and school goals, the funds mostly used to finance the monotonous activities in teaching and learning. The most dominant role in determining the budget post is the treasurer and the board of the foundation because of the weakness of human resources. The education budget in the autonomy era is expected to be formulated with a performance approach that prioritizes the achievement of goals.
Keywords: Budgeting, Privat School, Performance Based Budgeting
