Indonesian Journal of Business Finance and Accounting. Determinants of Budget Effectiveness and Implications on Internal Stakeholder Trust

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1 Indonesian Journal of Business Finance and Accounting (2018), 1 (1), Indonesian Journal of Business Finance and Accounting Journal homepage: Determinants of Budget Effectiveness and Implications on Internal Stakeholder Trust Baiq Yeni Sulistiana 1, A. Akram 2, and Thatok Asmony 3 1 Department of Accounting, Universitas Mataram, Indonesia 2 Department of Accounting, Universitas Mataram, Indonesia 3 Department of Accounting, Universitas Mataram, Indonesia Submission Info Received 23 December 2017 Revised 25 January 2018 Accepted 16 February 2018 Keywords apparatus discretion organizational culture budget effectiveness internal stakeholder trust Abstract This paper aimed to test and evince from some previous researches: influence of apparatus discretion to budget effectiveness, influence of organizational culture to budget effectiveness, and influence of budget effectivity to trust of internal stakeholders in Organization of Region of East Lombok Regency. The analytical tool used is Partial Least Square (PLS) with the determination of the sample of Head and Treasurer at each Organization of Regional Devices (OPD) in East Lombok Regency. The results of this study indicate that the apparatus discretion has a positive effect on budget effectiveness, organizational culture has a positive effect on the effectiveness of budget, and the effectiveness of the budget has a positive effect on the trust of internal stakeholders. With this research is expected government officials can use discretion in accordance with established channels and can apply a good organizational culture patterns that will impact on the achievement of budget effectiveness. The existence of effective budget management can realize the trust of internal stakeholders which is the greatest strength to maintain the sustainability of the organization. The trust of internal stakeholders will affect the work of the organization in completing various programs that have been poured on the Regional Budget (APBD) Thomson Journals. All rights reserved. 1. Introduction A budget is a tool for achieving goals for the organization. The central and local governments will plan and manage the budget for the next year. The regional budget (APBD) is the basis for local financial management within a budget year, therefore APBD is the basis of financial management in the region, the APBD is also the basis for the activities of control, audit and supervision of regional finances. Law No. 33 of 2004 on Financial Balance of the Central and Local Governments requires the government to improve its performance in order to provide services to the Corresponding author, A. Akram akram.sukma@unram.ac.id. Department of Accounting, Universitas Mataram, Jalan Pendidikan No. 36 Mataram Nusa Tenggara Barat, Indonesia. Suggested Citation: Sulistiana, B. Y., Akram, A., & Asmony, T. (2018). Determinants of Budget Effectiveness and Implications on Internal Stakeholder Trust. Indonesian Journal of Business Finance and Accounting, 1(1), ISSN , eissn / 2018 Thomson Journals. All rights reserved.

2 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), public. Good government management is accountable, inseparable from local government budgets, which are conducted economically, efficiently, effectively, equitably and equitably to achieve public accountability (Mardiasmo, 2009). Mardiasmo (2009) states that the budget is a statement about the estimated performance to be achieved over a given period expressed in financial size. While effectiveness comes from the English language is effective which means successful or something done successfully. Mahmudi (2010) defines effectiveness as the relationship between output and objectives, the greater the contribution (contribution) of output to the achievement of the goal, the more effective the organization, program or activity. In line with Mardiasmo's statement, in Regulation of The Minister of Finance of The Republic Indonesia Number 249/PMK.02/2011 stated that budget absorption is one of the indicators of performance evaluation on the implementation aspect. Budget absorption is also one of the elements of financial accountability in the Performance Accountability Report of Government Agencies (LAKIP). Regulation of The Minister of Finance of The Republic Indonesia Number 158/PMK.02/2014 states that if the local government has fulfilled the budget realization of 95 percent and above, then the local government gets priority in receiving incentives for the next fiscal year, because with the absorption of 95 percent of the budget above the government institution is considered to have a good performance. In the last three years, the effectiveness of local government budget in East Lombok regency tend to change that in 2014 the effectiveness of local government budget of East Lombok Regency reach percent, 2015 budget effectiveness reach percent, and 2016 budget effectiveness reach percent. Failure of budget absorption targets will result in loss of spending benefits because the allocated funds are not all that can be utilized which means there are idle funds. While on the one hand the government has limited sources of state revenues that require the government to set priorities for activities and budget allocations that are effective and efficient. Therefore, when budget absorption fails to meet the target, it means that there has been an infusion and ineffectiveness of budget allocation. APBD should accommodate the interests of all elements, namely the interests of society and internal interests of the government itself. Optimal work results are supported by stakeholder trust in the organizations in which they work. Trust is very important for good governance. Trust is an interpersonal relationship and complex organizational concept (Nye Jr. et al., 1997). Kramer & Tyler (1996) describes the beliefs that occur when parties have certain perceptions that benefit each other that allow relationships to achieve the expected results. When employees have high confidence in their organization they will be concerned about the future and success of the company and understand their role in the organization and try to do the best of their role (Boe, 2002). Based on the Supreme Audit Agency (BPK), Audit Report (LKP), it is found that local financial management leaves many black records. The findings of the auditor's agency also indicate that a lot of state money is in vain because of mismanagement and violation of procedures. The 2016 financial statements include Rp22 billion of budget spent to immediately be returned to the state treasury. The findings were spread across all local/district/municipal governments, including the West Nusa Tenggara Provincial Government with the highest findings being East Lombok Regency with a recommendation of return of Rp9.1 billion. This illustrates that the apparatus has not worked optimally in achieving the best results for the sustainability of the organization.

3 58 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), As a key stakeholder of the public interest authority, public officials have broad authority in running the government. Not every problem faced and the action to be taken has been available in the legislation, so the discretionary term or bureaucratic apparatus arises to determine the decision outside of the existing standard rules. In addition to discretionary factors, factors of organizational culture is one of the things that contribute to achieving the effectiveness of the budget as it will affect the way the organization works. Culture is a set of attitudes, perspectives, habits in response to environmental stress, can be used as a driver of employee commitment (Maharani & Ardiana, 2015). Organizational culture has a significant impact on how employees view their organizations, social responsibility and commitment. Leaders influence their subordinates both directly through interaction and also through organizational culture (Chen, 2004). Based on this background, the researchers wanted to test some of the factors that influence the effectiveness of the budget as a matter of government responsibility on the management of public funds and its implications for internal stakeholder confidence as the spearhead in carrying out the functions of government in order to achieve the welfare of society. This study was conducted to test empirically: 1) Effect of discretion apparatus of the effectiveness of the budget at the regional organization of East Lombok, 2) The influence of organizational culture on the effectiveness of the budget at the regional organization of East Lombok and 3) Effects of the effectiveness of the budget to trust internal stakeholders on organization of region of East Lombok. The differences of this study with previous research are: 1) discretion in previous research is limited to qualitative approach 2) Organizational culture variable on budget effectiveness is still limited, 3) Effect of budget effectiveness on trust of internal stakeholders is limited to qualitative approach. 2. Methods This research is quantitative research that emphasizes the theory test through the measurement of research variables with numbers and perform statistical data analysis procedures. This research will be conducted at Regional Device Organization (OPD) in East Lombok Regency Government. The population used in the study is the apparatus that has the authority and play an active role in the management of APBD at OPD in East Lombok Regional Government. While the sampling technique used in this research is purposive sampling. The consideration of the researcher in determining the sample is: the official who is considered authorized in the management of the regional organization budget (OPD), the employees who play an active role in the expenditure of the budget and directly feel the impact of the budget spending policy, and the employee who has been sampled has at least experience in the field financial management over one year, because it indicates that financial managers have been through each stage of financial management. The independent variables in this study are the discretionary apparatus and organizational culture, while the dependent variable in this study is the effectiveness of budget and trust of internal stakeholders as seen in the conceptual framework image (Figure 1).

4 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), Discretion Apparatus Budget Effectiveness Internal Stakeholder Confidence Organizational Culture Figure 1 Conceptual Research Framework The analytical tool used is Partial Least Square with the aim to determine the effect of the relationship between latent variables. The analytical tool used is Partial Least Square with the aim to determine the effect of the relationship between latent variables. In this study we want to know the influence of organizational culture of discretion and the effectiveness of the budget. Then to know the implications of budget effectiveness to the trust of internal stakeholders OPD Government of East Lombok regency. The analytical tool used is Partial Least Square with the aim to determine the effect of the relationship between latent variables. In this study we want to know the influence of organizational culture of discretion and the effectiveness of the budget. Then to know the implications of budget effectiveness to the trust of internal stakeholders OPD Government of East Lombok regency. 3. Results and Discussion Based on the Figure 2 we can see that the indicator value is more than 0.5. This indicates that convergent validity has been met. Indicators are considered valid if the correlation values above 0.7 but loading factor value range 0.4 to 0.7 is acceptable. Based on the Figure 2 can be seen that the discretion of the apparatus has four indicators of the Figure 2 shows that there are two indicators that must be removed from the model (DA1) and (DA2) which do not meet the convergent validity because it has a loading factor < DA3 and DA4 while indicators have met the loading value factor. Organizational Culture Variables (BO) consists of ten indicators, namely BO1, BO2, BO3, BO4, BO5, BO6, BO7, BO8, BO9, and BO10. Based on Figure 2 seen that BO2 and BO7 not meet the convergent validity because it has a loading factor value <0.40 therefore should be excluded from the model so that the indicators that meet the convergent validity is eight indicators of BO1, BO3, BO4, BO5, BO6, BO8, BO9, and BO10. Variable Budget effectiveness consists of four indicators that are EA1, EA2, EA3, EA4. In the Figure 2 shown that these four indicators meet the convergent validity because it has a loading factor > 0.40 so that no overall indicator is removed from the model. Furthermore, internal stakeholder trust consists of eight indicators consisting of KSI1, KSI2, KS3, KSI4, KSI5, KSI6, KSI7, KSI8. In the image shown that indicator that meet the convergent validity is KSI3, KSI4, KSI5, KSI6, KSI7, while the Figure 2 looks

5 60 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), that KSI, KSI2, and KSI8 not meet the convergent validity because it has a loading factor value < 0.40 and should be removed. Figure 2 Convergent Validity Discriminant validity is used to prove that latent constructs predict the size of the construct is better than the size of the other constructs. Discriminant validity is used to prove that latent constructs predict the size of the construct is better than the size of the other constructs. Discriminant validity was tested by analyzing the cross loading value for each variable in which the construct being measured is greater than the other constructs. For discriminant validity can be seen through the value of cross loading as in the Table 1. From the Table 1 shows that the indicator of each variable has resulted discriminant validity. This can be seen from the value of the discretionary indicator of the apparatus (DA), organizational culture (BO), budget effectiveness (EA), and internal stakeholder trust has cross load values greater than other cross loading values, meaning that all variables have met the discriminant validity. To test the reliability of the variables/constructs in Smart PLS 3.0 with analyze the value of composite reliability, to test the accuracy of indicators in measure variable/construct. Variables declared reliable if the value of the composite reliability above The result of composite reliability value analysis can be seen on the Table 2. Based on the Table 2 shows that the value of Composite Reliability has a value above 0.70 and is declared good. Thus, all the variables namely DA, BO, EA and KSI have been reliable and appropriate use in this research.

6 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), The Coefficient Determination Test (R²) is performed to predict the strength of the structural model. Changes in R-Square (R²) values can be used to explain the effect of particular exogenous latent variables on endogenous latent variables whether they have substantive effects. The values of R-Square 0.67, 0.33, and 0.19 can be concluded that the model is good, moderate and weak (Chin, 1998), while Guilford (1950) gives an interpretation of R 2 < 0.20 value of almost meaningless; moderate; high, is very high. The following shows the results of the R-Square analysis in the Table 3. Table 1 Discriminant Validity Indicators Discretion Apparatus Organizational Culture Budget Effectiveness Internal Stakeholder Confidence DA DA BO BO BO BO BO BO BO BO EA EA EA EA KSI KSI KSI KSI KSI From the Table 3 can be seen that R-Square shows that the value of R-Square (R²) for construct The budget effectiveness (EA) of or 63% belongs to moderate model based on opinion Chin (1998) where the R 2 value range is is included in moderate category, meaning that variable of Apparatus Discretion (DA), Organizational Culture (BO) is able to explain variance of Budget Effectivity (EA) equal to 63% while 37% is explained by other variables. Table 2 Composite Reliability Variable Composite Reliability Discretion Apparatus (DA) Organizational Culture (BO) Budget Effectiveness (EA) Internal Stakeholder Confidence (KSI) Table 3 R-Square Analysis Variable R-Square Budget Effectiveness (EA) Internal Stakeholder confidence (KSI) 0.618

7 62 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), Constructs Internal Stakeholder Trust (NLT) has a value of R-Square (R²) of or 61.8% is included in the model moderate based on the opinions Chin (1998) wherein R² value range of included in the category of moderate, meaning that Budget Effectiveness variables are able to explain the variance of Internal Stakeholder Trust (KSI) of 61.8% while 38.9% is explained by other variables. Hypothesis testing can be done by analyzing the value of path coefficients after the bootstrapping process. To see hypothesis testing done by comparing t-statistic value with t-table value. The hypothesis is accepted if the value of t-statistic > t-table (1.64), but if the value of t-statistic < t-table (1.64) then the hypothesis be rejected. In addition, to test the hypothesis can be done by analyzing the significance of p-value compared with the error rate set in this research is one-tailed test with alpha 5% (0.05). If the p-values < 0.05 then the hypothesis is accepted, however, if p-values > 0.05, then the hypothesis be rejected. The results of path coefficients analysis are presented in the following Table 4. Table 4 The Results of Path Coefficients Analysis Variable Original Sample t- Statistics p- Values Discretion Apparatus Budget Effectiveness Organizational Culture Budget Effectiveness Budget Effectiveness Internal Stakeholder Confidence Based on the Table 4 described analysis research hypothesis testing the hypothesis in which the three, namely: H1 : Apparatus Discretion (DA) has a positive effect on Budget Effectiveness (EA) at the Regional Device Organization of East Lombok Regency. H2 : Organizational Culture (BO) has a positive effect on Budget Effectiveness (EA) at the Regional Device Organization of East Lombok Regency. H3 : Budget Effectiveness (EA) has a positive effect on Internal Stakeholder Trust in Organization of Region of East Lombok. The explanation of the results of hypothesis testing based on the Table 4 are described as follows. First Hypothesis states that variable Discretion Apparatus (DA) has a positive effect on the effectiveness of the Budget (EA) on the regional organizations of East Lombok. The Table 4 shows that DA testing with EA has a t-statistic value of greater than the value of t-table at alpha 5% of Thus, it can be said that the hypothesis is accepted. The value of p-values between DA and EA of indicates a significant level at alpha 0.05 (5%), meaning that Apparatus Discretion (DA) has a significant effect on Budget Effectiveness (EA). Meanwhile, to analyze the direction of the relationship variable by looking at the path coefficient value (original samples) between the variables of Administrative Discretion (DA) with the effectiveness of the Budget (EA) of with a positive direction. Thus it can be concluded that the variables of the Apparatus Discretion have a significant positive effect on Budget Effectiveness, it means that the first hypothesis is accepted this is in line with qualitative research by Coviello et al. (2018) which qualitatively examines the apparatus discretion in the auction process and states that discretion is needed in selecting the winning bidder qualified so that a given job delivering quality results and can be completed on time, so that the effectiveness of the budget can be achieved. While in qualitative research conducted by Pradana (2016) states that discretion

8 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), is not required if every government apparatus holds strong professional norms and holds firm human values. Government Officials have the right to use the Authority in taking Decisions and/or actions one of which is to use discretion in accordance with its objectives. Discretion is a decision and/or action is determined and/or carried out by government officials to address the issue of the concrete facing in governance in terms of legislation that gives the option, not regulate, incomplete or unclear, and/or stagnation of government. However, its use should be by authorized officers and in accordance with its objectives so it can be concluded that discretion also contributes to the achievement of budget effectiveness. Second hypothesis states that the Variable Culture Organization (BO) have a positive effect on Budget Effectiveness (EA) at the Regional Device Organizations East Lombok. The Table 4 shows that the test BO with EA has a value of t-statistic greater than t-table at alpha 5% by Thus, it can be said that the hypothesis is accepted. The value of p-values between BO and EA of 0,000 indicates a significant level in alpha 0.05 (5%), which means Organizational Culture (BO) has a significant effect on Budget Effectiveness (EA). While to analyze the direction of the relationship of variables by looking at the value of path coefficient (original sample) between organizational culture variable (BO) with Budget Effectiveness (EA) of with positive direction. Thus, it can be concluded that the organizational culture variable has a significant positive effect on Budget Effectiveness, it means that the first hypothesis accepted this is in line with research conducted by Wati et al. (2017) which states that organizational culture affects the budget. In contrast to research conducted by Maharani & Ardiana (2015) which stated that with the spirit of mutual cooperation and solidarity that already exist and deeply rooted in a person make the apparatus work in an organization to set a budget that is reasonable without degrading revenue and elevate the cost according to the actual circumstances that contribute to the achievement of budgetary effectiveness. Between the success of organizational culture on a budget and have relevance managerial performance, which will affect the organizational culture of managerial performance so it will also affect the success of the budget. Organizational culture by Tika (2014) is a pattern of assumptions of those created, discovered or developed by a particular group as learning to address the problem of external adaptation and internal integration that is official and well-executed and therefore taught/new members as the appropriate means to understand, to think, and feel associated with these problems. Organizational culture socializes and internalizes the members of the organization. A strong organizational culture supports organizational goals, otherwise a weak organizational culture can preclude organizational goals. Organizations that have a strong organizational culture, the value of togetherness is understood in depth, embraced, and championed by members of the organization (government apparatus). The third Hypothesis states that the Budget Effectiveness Variables (EA) have a positive effect on Internal Stakeholder Trust (KSI) at the Regional Devices Organization of East Lombok Regency. The Table 4 shows that the test of EA with KSI has a t-statistic value of greater than the value of t-table at alpha 5% of Thus, it can be said that the hypothesis is accepted. The value of P values between EA and KSI of indicates significant level at alpha 0.05 (5%), meaning that Budget Effectiveness (EA) has significant effect on Internal Stakeholder Trust (KSI). While to analyze the direction of the relationship of variables by looking at the value of the coefficient of the path (original

9 64 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), sample) between the Effectiveness of Budget (EA) with Trust Stakeholder Internal (KSI) of with a positive direction. Thus, it can be concluded that the variable effectiveness of the Budget significant positive effect on confidence Stakeholders Internal, meaning that the first hypothesis is accepted, it is in line with research conducted by Nurrizkiana et al. (2017) which states that the management of the financial statements a positive influence on the confidence of stakeholders, different with research conducted by Krisnayanti (2014) which states that there is a difference in perception between internal stakeholders and external stakeholders the transparency and accountability of financial statements that are managed, it is due to the internal stakeholders more had less access to financial information, and engage directly in the financial management while external stakeholders have limitations in the receipt of financial information and not directly involved in the financial management. Stakeholders are all parties, internal or external who can influence or be influenced by the company either directly or indirectly (Hadi, 2011). Internal stakeholders are the most influential part of the organization's continuity because it has a high enough power over the availability of the organization's resources. Ghozali & Chariri (2007) states that when the controlling stakeholder important economic resource for the company, then the company will react in ways that satisfy the desires of stakeholders. While trust is very important for good governance. Trust is an interpersonal relationship and the concept of a complex organization. Kramer & Tyler (1996) describes trust occurs when parties have certain perceptions that benefit each other that enable relationships to achieve the expected results. Increased trust of internal stakeholders will have a positive impact on the sustainability of the government. Stakeholder theory assumes that organizational existence is determined by stakeholders (Prasetyono, 2011) Influence of Administrative Discretion of the Effectiveness of Budget at the Regional Organization of East Lombok As a government apparatus it is undeniable that there are things that are contrary to oneself but must be done. On the one hand, power is limited by law while on the other hand power is attached to the individual. If in the exercise of the authority position is tightened, it is certain that the bureaucracy will not work because an official will be difficult to make decisions, with the limited choice of acting so that sometimes an official becomes a rigid robot confined to existing rules, and if the rules do not exist then officials will not decided to work. Conversely, if discretion is released or loose there is the potential for excessive action which will lead to illegal acts (corruption). Discretion when applied in providing public services, it can be a variety of adjustments can be made so that the existing rules can still answer the demands, aspirations, and community dynamics, but this discretion must meets the requirements, the discretion that do remain in the corridor of vision, mission, and the objectives to be reached by the government, carried out in the public interest, performed within their area of authority, and does not violate the general principles of good governance. The first hypothesis in this study where Competence Apparatus has a positive effect on Village Fund Management, based on the results of hypothesis testing and data analysis, shows that the hypothesis accepted where the t-statistics value is greater than the value of t-table is the value of t-statistics greater than the value of t-table at a 5% alpha of The value of P values between DA and EA of indicates a significant level at alpha 0.05 (5%), meaning that Apparatus Discretion (DA) has a significant effect on

10 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), Budget Effectiveness (EA). While to analyze the direction of the relationship of variables by looking at the coefficient value of the path (original sample) between variable Apparatus Dispute (DA) with Budget Effectiveness (EA) of with a positive direction. The results of this test proves that the variable of Apparatus Discretion (H1) has a positive and significant effect on the Effectiveness of Budget (EA) or in other words the Apparatus Discretion is directly proportional to Budget Effectiveness, it means that the better the discretion used by the government apparatus, the higher the level of budget achievement has been established. Several previous studies related to discretion in budget execution have been investigated by Coviello et al. (2018) who examine qualitatively about the effects of discretion in budget management. The results of the study found that discretion has an important role in budget effectiveness. Unlike the case with research conducted by (Pradana, 2016) proves that discretion is not needed in budget management The Effect of Organizational Culture on Budget Effectiveness in Organization of Region of East Lombok Culture is a reflection of the attitude of a group of people or of a society (Suryanto & Thalassinos, 2017). Organizational culture is a set of assumptions or belief systems, values and norms developed within the organization that serve as a behavioral guideline for its members to address external adaptation issues and internal integration (Mangkunegara, 2005). Organizational culture is able to perform a number of functions that can overcome the problems of members of the organization to adapt to its external environment by strengthening organizational understanding and ability to realize the vision, mission and organizational strategy, so that culture can be impregnated and applied by the apparatus in the organization, and the internalization process to instill and cultivate an organizational culture values or become part of the apparatus in question. Attribution theory can explain the relationship between variable discretion and budget effectiveness. Attribution is a cognitive process in which people draw conclusions about factors that affect or make sense of the behavior of others. In observing one's behavior, judging by whether it is generated internally or externally (Robbins, 1996). Internally caused behavior is behavior that is believed to be under the personal control of the individual concerned. Externally visible behavior as a result of external causes. Empirical research related to organizational culture is examined by Wati et al. (2017) states that organizational culture affects budget absorption. Unlike the case with research conducted by Maharani & Ardiana (2015) proved that the organizational culture variables did not affect the budget absorption Influence Effectiveness of Budget on Internal Stakeholder Confidence in the Regional Organizations of East Lombok At the basic level, an individual would trust anyone else who cared about him. To believe in another person or organization, everyone feels that another person or organization is willing to listen and respond to his or her interests. In the concept of stewardship theory, Podrug (2011) states that the government will act wisely in the public interest and sustainability of the organization. The programs are organized in budget revenues and expenditures (budget) would not have thought only of external stakeholders but also the interests of internal stakeholders.

11 66 Sulistiana et al./indonesian Journal of Business Finance and Accounting (2018), 1 (1), Previous research related to stakeholder trust was conducted by Nurrizkiana et al. (2017) stating that management of financial statements has a positive effect on stakeholder trust. While Krisnayanti (2014) states that there are differences in perceptions between internal and external stakeholders on the transparency and accountability of managed financial statements. 4. Conclusion From the analysis of the data described above from this study, it can be concluded as follows: 1) Discretion apparatus has a positive influence on the effectiveness of the budget at the regional Organization of East Lombok, 2) Cultural organizations have a positive influence on the effectiveness of the budget. Organizations that have good organizational culture will also affect the effectiveness of the budget both at the regional Organization of East Lombok, 3) Effectiveness of the budget affect the internal stakeholder confidence in the regional organizations of East Lombok. If the trust of internal stakeholders grows in an organization then they will provide optimal results for the organization's work. This study has limitations that can be considered for the next researchers to produce better research, namely: 1) This study only observes two variables and the number of indicators are limited, 2) The scope of this study is limited to one district with limited sample size, 3) Stakeholders observed are limited to internal stakeholders. Based on the results of the analysis of the discussion and some conclusions and limitations in this study, as for suggestions that can be given through the results of this research in order to get better results, namely: 1) The limited number of variables and indicators, is expected to the next researcher to add the number of variables studied and add indicators in the measurement of variables, 2) The scope of research focusing on only one district to be limited this study and is expected to further researchers to expand the area research so that between one local government to another can be compared, 3) Limited observation on internal stakeholders can be developed again to external stakeholders so that the effect of budget effectiveness can be seen more broadly, 4) The results showed that the apparatus discretion has a positive effect on the effectiveness of the budget can be taken into consideration for the Regional Device Organization of East Lombok Regency in using the authority given and attached to the position of the apparatus, so the proper use of discretion can help the organization of the device (5) The results of research showing that organizational culture affect the effectiveness of the budget can be used as a consideration for the Regional Device Organizations of East Lombok Regency in implementing organizational culture that can help achieve the effectiveness of the budget, 6) The results show that the effectiveness of the budget affect the trust of internal stakeholders can be taken into consideration for the Regional Device Organizations of East Lombok Regency in making the right decision on program selection and budget determination so as to generate trust in internal stakeholders which is the biggest strength in maintaining the sustainability of the organization.

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