The Effect of Internal Control on Performance Accountability in the Main Secretariat of Indonesian Institute of Science

Planning and budgeting reform began in 2005 with Law No. 17 of 2003 concerning State Finance, having implications for the paradigm in the management of state finances, namely that all the state finance must be accompanied by the achievement of output. The purpose of this research was to analyze the influence of internal control on performance accountability in the Main Secretariat LIPI consisting of the control environment, risk assessment and monitoring of the accountability of the performance. The population in this research were all employers at Settama LIPI. Sampling using the Proportionate Stratified Random Sampling technique obtained 132 respondents. The research using Structural Equation Model (SEM) analysis. Based on the results of the research that has been done, the results show that all variables (control environment, risk assessment and monitoring) influence and positively relate to performance accountability. Besides being able to see the influence between variables, from the SEM results it can also see the influence between indicators. The research suggests several things, such as: 1) the application of a policy, should be through a process by involving staff representatives, 2) managing risk while planning, and during and after policy changes, to see whether the policy has a negative or positive impact on performance accountability, and 3) carry out continuous monitoring of performance. Keywords—internal control, control environment, risk assessment, monitoring, performance accountability