Effect Of Human Resource Competency, Application Of Regional Financial Accounting System (SAKD), Utilization Of Information Technology, And Internal Control Systems On The Quality Of Regional Government Financial Statements (Empirical Study Of Labuhanbatu Regency SKPD)

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Effect of Human Resource Competency, Application of Regional Financial Accounting System (SAKD), Utilization of Information Technology, and Internal Control Systems on the Quality of Regional Government Financial Statements (Empirical Study of Labuhanbatu Regency SKPD)

Introduction

The quality of financial statements is a crucial indicator of good financial governance in government. In the context of local governments, the preparation of accurate and transparent financial statements is essential for ensuring accountability and transparency to the community. However, the process of preparing financial statements is complex and involves various factors, including human resource competency, the application of the Regional Financial Accounting System (SAKD), the utilization of information technology, and internal control systems. This study aims to examine the impact of these factors on the quality of local government financial statements in Labuhanbatu Regency.

Background

The preparation of financial statements is a critical function of local governments, as it provides stakeholders with information about the government's financial performance and position. However, the quality of financial statements can be affected by various factors, including the competence of human resources, the application of SAKD, the utilization of information technology, and internal control systems. In Labuhanbatu Regency, the local government has implemented various initiatives to improve the quality of financial statements, including the application of SAKD and the utilization of information technology. However, the effectiveness of these initiatives is still unclear.

Methodology

This study used a quantitative approach, with a sample of 73 questionnaires that were successfully processed for analysis. The data was collected using a survey instrument, which was designed to measure the impact of human resource competency, the application of SAKD, the utilization of information technology, and internal control systems on the quality of local government financial statements. The Structural Equation Model (SEM) method was used to test the hypothesis, with the help of SmartPLS 2.0M3 software.

Results

The results of this study showed that the competence of human resources had a positive effect on the quality of local government financial statements in Labuhanbatu Regency. This suggests that increasing employee skills and knowledge is essential for producing accurate and transparent financial statements. However, the results also showed that the utilization of information technology had a negative impact on the quality of financial statements. This can be attributed to a lack of user understanding in operating existing technology devices, which can interfere with the financial reporting process.

On the other hand, the application of SAKD and the internal control system did not show a significant effect on the quality of local government financial statements. This indicates that although these systems have been applied, there are still other factors that affect their effectiveness. For example, lack of support from top management or inconsistent internal control.

Discussion

The results of this study have several implications for local governments. Firstly, the importance of increasing employee skills and knowledge in producing accurate and transparent financial statements is highlighted. This suggests that comprehensive training programs should be implemented to improve human resource competencies, especially in terms of financial management and reporting. Secondly, the need for support from top management is emphasized, as it is essential for ensuring the effective application of SAKD and internal control systems.

Furthermore, the results of this study highlight the complexity of creating quality financial statements. The quality of financial statements is influenced by various factors, including human resource competency, the application of SAKD, the utilization of information technology, and internal control systems. Therefore, a more directed and educative approach is needed to support the purpose of improving the quality of financial statements.

Conclusion

This study contributes to the existing literature on the quality of financial statements in local governments. The results of this study highlight the importance of increasing employee skills and knowledge, as well as the need for support from top management. Furthermore, the study emphasizes the complexity of creating quality financial statements and the need for a more directed and educative approach to support the purpose of improving the quality of financial statements.

Recommendations

Based on the results of this study, several recommendations are made for local governments. Firstly, comprehensive training programs should be implemented to improve human resource competencies, especially in terms of financial management and reporting. Secondly, support from top management is essential for ensuring the effective application of SAKD and internal control systems. Finally, a more directed and educative approach is needed to support the purpose of improving the quality of financial statements.

Limitations

This study has several limitations. Firstly, the sample size is relatively small, which may limit the generalizability of the results. Secondly, the study only examines the impact of human resource competency, the application of SAKD, the utilization of information technology, and internal control systems on the quality of local government financial statements. Therefore, future studies should examine other factors that may influence the quality of financial statements.

Future Research Directions

This study provides several avenues for future research. Firstly, future studies should examine the impact of other factors on the quality of financial statements, such as the role of external auditors or the use of performance indicators. Secondly, future studies should investigate the effectiveness of comprehensive training programs in improving human resource competencies. Finally, future studies should examine the impact of support from top management on the effective application of SAKD and internal control systems.

References

  • [List of references cited in the study]

Appendix

  • [Appendix materials, such as additional tables or figures, that support the results of the study]
    Q&A: Effect of Human Resource Competency, Application of Regional Financial Accounting System (SAKD), Utilization of Information Technology, and Internal Control Systems on the Quality of Regional Government Financial Statements

Q: What is the main objective of this study?

A: The main objective of this study is to examine the impact of human resource competency, the application of Regional Financial Accounting System (SAKD), the utilization of information technology, and internal control systems on the quality of regional government financial statements in Labuhanbatu Regency.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the factors that affect the quality of regional government financial statements. The results of this study can be used by local governments to improve the quality of their financial statements and ensure accountability and transparency to the community.

Q: What are the key findings of this study?

A: The key findings of this study are:

  • Human resource competency has a positive effect on the quality of regional government financial statements.
  • The utilization of information technology has a negative impact on the quality of financial statements.
  • The application of SAKD and internal control systems do not show a significant effect on the quality of regional government financial statements.

Q: What are the implications of this study?

A: The implications of this study are:

  • Local governments should prioritize the development of human resource competency, especially in terms of financial management and reporting.
  • Support from top management is essential for ensuring the effective application of SAKD and internal control systems.
  • A more directed and educative approach is needed to support the purpose of improving the quality of financial statements.

Q: What are the limitations of this study?

A: The limitations of this study are:

  • The sample size is relatively small, which may limit the generalizability of the results.
  • The study only examines the impact of human resource competency, the application of SAKD, the utilization of information technology, and internal control systems on the quality of regional government financial statements.

Q: What are the future research directions?

A: The future research directions are:

  • Examine the impact of other factors on the quality of financial statements, such as the role of external auditors or the use of performance indicators.
  • Investigate the effectiveness of comprehensive training programs in improving human resource competencies.
  • Examine the impact of support from top management on the effective application of SAKD and internal control systems.

Q: What are the practical implications of this study?

A: The practical implications of this study are:

  • Local governments should prioritize the development of human resource competency, especially in terms of financial management and reporting.
  • Support from top management is essential for ensuring the effective application of SAKD and internal control systems.
  • A more directed and educative approach is needed to support the purpose of improving the quality of financial statements.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

  • Comprehensive training programs should be implemented to improve human resource competencies, especially in terms of financial management and reporting.
  • Support from top management is essential for ensuring the effective application of SAKD and internal control systems.
  • A more directed and educative approach is needed to support the purpose of improving the quality of financial statements.

Q: What are the future challenges of this study?

A: The future challenges of this study are:

  • Ensuring the effective implementation of SAKD and internal control systems.
  • Developing a more directed and educative approach to support the purpose of improving the quality of financial statements.
  • Addressing the limitations of this study, such as the sample size and the scope of the study.