ABSTRACT The objective of this research is to investigate the application of environmental control system in the local government according to PP No. 60 Tahun 2008 about government internal control system. This research combined two analysis method are descriptive method and comparative method. The result of the quantitative research, analysis to local revenue that measured with the different between budgeting and realization of income, income growth, level of decentralization, financial dependence, financial independence, effectiveness ratio of real income and effectiveness ratio of tax, all of this measurement indicated that has a different realization with the budgeting, this analysis indicated the performance of Pidie Residence is too bad. Quantitatively concluded that financial condition effect the application of the internal control environment are good at administration. Enforcement of integrity and ethical values, commitment and competence, leadership is condusive, the establishment of organizational structure, delegation of authority and responsibility, the preparation and the implementation of sound policies on human resources development and awareness of control does not run as a good as it should, only the relationship between the instances that can be implemented well. Keywords : Internal Control System, Environment Control System, Budgeting.