Analysis Of Factors Affecting The Quality Of SKPD Financial Statements With Understanding The Government's Internal Control System As Moderating Variables (Case Study Of Serdang Bedagai Regency Government)

by ADMIN 206 views

Analysis of Factors Affecting the Quality of SKPD Financial Statements with Understanding the Government's Internal Control System as Moderating Variables (Case Study of Serdang Bedagai Regency Government)

Introduction

The quality of financial statements is a crucial aspect of government accounting, as it reflects the financial health and transparency of a government institution. In the context of the Serdang Bedagai Regency Government, understanding the factors that influence the quality of Regional Work Unit (SKPD) financial statements is essential for effective financial management. This study aims to analyze the effect of understanding of Government Accounting Standards (SAP), the quality of local government officials, and organizational commitment on the quality of SKPD financial statements, with the Government Internal Control System (SPIP) as a moderating variable.

Research Methodology

This study employed a causal research method, collecting primary data through the distribution of questionnaires to 46 employees of the Serdang Bedagai Regency Government. The census sampling technique was used, where all employees were included as samples. The results of this study provide valuable insights into the factors that influence the quality of SKPD financial statements.

Factors Affecting the Quality of SKPD Financial Statements

The study found that simultaneously, SAP understanding, quality of local government officials, and organizational commitment had a significant influence on the quality of SKPD financial statements. However, when analyzed partially, only SAP understanding and organizational commitment had a positive and significant influence, while the quality of local government officials did not show a significant effect.

Understanding of Government Accounting Standards (SAP)

A good understanding of SAP is a key factor that can increase the accuracy and transparency of financial statements. Appropriate accounting standards assist government officials in preparing reports that meet applicable rules and regulations, thereby increasing public confidence in budget management. The study found that SAP understanding had a significant influence on the quality of SKPD financial statements.

Quality of Local Government Officials

Although the quality of local government officials did not show a significant effect in this study, it remains an important element. The quality in question includes expertise, competencies, and employee work ethics, which should affect the quality of financial statements. The low quality of the authorities can hamper the implementation of duties and responsibilities in preparing good financial statements.

Organizational Commitment

A strong organizational commitment within government institutions is the main driver in improving the quality of financial statements. This commitment includes dedication to work with integrity and professionalism, so that the process of preparing financial statements is carried out in a timely manner and in accordance with established standards.

The Role of SPIP as a Moderating Variable

The study found that the Government Internal Control System (SPIP) plays a crucial role as a moderating variable in the relationship between SAP understanding, quality of local government officials, and organizational commitment to the quality of SKPD financial statements. Effective internal control systems can strengthen this relationship, minimizing the risk of error in presenting financial statements and increasing the trustworthiness of the report produced.

Conclusion

Overall, this research confirms the importance of understanding SAP and organizational commitment in improving the quality of SKPD financial statements in Serdang Bedagai Regency. In an effort to create quality financial statements, there needs to be more attention to strengthening SPIP and improving the quality of local government officials. With the right steps, the quality of accurate and transparent financial statements can be achieved, which in turn increases accountability and public trust in the government.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Strengthening SPIP: The government should prioritize the strengthening of SPIP to ensure effective internal control systems that can minimize the risk of error in presenting financial statements.
  2. Improving SAP Understanding: The government should provide training and education to government officials to improve their understanding of SAP, ensuring that they are equipped to prepare accurate and transparent financial statements.
  3. Enhancing Organizational Commitment: The government should foster a culture of organizational commitment within government institutions, emphasizing the importance of integrity, professionalism, and dedication to work.
  4. Improving the Quality of Local Government Officials: The government should prioritize the improvement of the quality of local government officials, focusing on expertise, competencies, and employee work ethics.

By implementing these recommendations, the government can improve the quality of SKPD financial statements, increasing accountability and public trust in the government.
Frequently Asked Questions (FAQs) on Analysis of Factors Affecting the Quality of SKPD Financial Statements

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of understanding of Government Accounting Standards (SAP), the quality of local government officials, and organizational commitment on the quality of Regional Work Unit (SKPD) financial statements, with the Government Internal Control System (SPIP) as a moderating variable.

Q: What is the significance of understanding SAP in improving the quality of SKPD financial statements?

A: A good understanding of SAP is a key factor that can increase the accuracy and transparency of financial statements. Appropriate accounting standards assist government officials in preparing reports that meet applicable rules and regulations, thereby increasing public confidence in budget management.

Q: Why is organizational commitment important in improving the quality of SKPD financial statements?

A: A strong organizational commitment within government institutions is the main driver in improving the quality of financial statements. This commitment includes dedication to work with integrity and professionalism, so that the process of preparing financial statements is carried out in a timely manner and in accordance with established standards.

Q: What is the role of SPIP as a moderating variable in the relationship between SAP understanding, quality of local government officials, and organizational commitment to the quality of SKPD financial statements?

A: The study found that SPIP plays a crucial role as a moderating variable in the relationship between SAP understanding, quality of local government officials, and organizational commitment to the quality of SKPD financial statements. Effective internal control systems can strengthen this relationship, minimizing the risk of error in presenting financial statements and increasing the trustworthiness of the report produced.

Q: What are the implications of this study for government institutions?

A: The findings of this study have significant implications for government institutions. They highlight the importance of understanding SAP, organizational commitment, and SPIP in improving the quality of SKPD financial statements. By prioritizing these factors, government institutions can improve the accuracy, transparency, and trustworthiness of their financial statements.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study was conducted in a single case, the Serdang Bedagai Regency Government, which may limit the generalizability of the findings. Secondly, the study relied on self-reported data from government officials, which may be subject to biases and errors.

Q: What are the future research directions based on this study?

A: Future research directions based on this study include:

  1. Replication studies: Replicating this study in other government institutions to test the generalizability of the findings.
  2. Qualitative studies: Conducting qualitative studies to gain a deeper understanding of the factors that influence the quality of SKPD financial statements.
  3. Experimental studies: Conducting experimental studies to test the effectiveness of interventions aimed at improving the quality of SKPD financial statements.

By addressing these limitations and future research directions, this study can contribute to a better understanding of the factors that influence the quality of SKPD financial statements and provide practical recommendations for government institutions.