Purpose: This study aims to analyze the effectiveness of the management of the Employee Performance Supplement (TPP) budget at the Youth and Sports Office of Papua Province, focusing on the achievement of output and outcome, and identifying the challenges in its implementation.

Research/methodology: This study uses a qualitative approach with data collection techniques through interviews, documentation, and budget and staffing document reviews.

Results: The results show that the administrative management of the TPP has been quite effective, as indicated by the availability of accountability documents and budget realization in line with the allocation. However, the effectiveness of the TPP as an incentive to improve employee performance is still low. The amount of TPP does not yet take into account actual attendance and performance, and it has not been integrated with a performance evaluation system based on results. As a result, the provision of TPP has not optimally encouraged discipline and productivity.

Conclusions: The management of the TPP budget at the Youth and Sports Office of Papua Province is administratively effective but lacks impact on improving employee performance. Incentives are not based on actual attendance or output, reducing their motivational effect. Delays in disbursement and weak performance evaluation systems further undermine the purpose of the TPP.

Limitations: This study is limited to a single institution, with a small sample size and no quantitative performance metrics, which restricts the generalizability and depth of the analysis.

Contribution: This study highlights the gap between budget compliance and performance outcomes, and offers recommendations for integrating attendance and performance data into the incentive system.