Good Governance and Risk Management as Drivers of Performance Accountability Systems: Implications for Budget Fraud Prevention

This study aims to analyze the impact of implementing Good Governance and Risk Management on the prevention of fraud in budget realization, as well as to examine the role of the Government Agency Performance Accountability System (SAKIP) as a mediating variable within the Prosecutor's Office work units in South Kalimantan Province. The study employs a quantitative approach using a survey method. Data were collected via questionnaires distributed to employees involved in budget management, execution, and oversight. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that Good Governance does not have a significant effect on the prevention of budget realization fraud. Similarly, Risk Management does not have a significant direct effect on fraud prevention. These findings suggest that the implementation of governance and risk management when primarily administrative in nature has not yet been effective in curbing potential fraud without the support of an integrated control system. However, both Good Governance and Risk Management were found to have positive and significant effects on SAKIP. Furthermore, SAKIP was proven to have a positive and significant impact on fraud prevention. Mediation analysis results demonstrate that SAKIP fully mediates the relationship between Good Governance and fraud prevention, as well as the relationship between Risk Management and fraud prevention. Thus, SAKIP serves as a key mechanism linking the implementation of governance and risk management to the effectiveness of preventing budget realization fraud. The study implies that strengthening SAKIP, integrating risk management into organizational processes, and consistently implementing Good Governance are essential to enhancing accountability and preventing fraud in public sector budget management.