Government Statements Research Articles

Determinants and Measurement Quality of the Financial Statement of Local Government in Indonesia

This research aim is to create the measurement index of the quality of FSLG, using data from APRGE, Notes to FSLG, and ICS. APRGE has many indicators, but the relevant ones are AIS, Competence, Performance, and GGG. The measurement index sourced from APRGE is calculated from the percentage of performance achievement of every indicators. 35 main and 7 conditional indicators are taken from the Notes to FSLG. The ICS has 101 indicators. Samples are 25 Local Governments of provinces, cities, and municipals since 2015 to 2018. Software E-Views 8 is used for statistical computation. The output of the measurement index is the FSLG quality assessment category. The index can be used to measure the quality of FSLG produced by Local Governments. The results of statistical testing show that Competence and GGG affect the Quality of FSLG. Meanwhile, AIS and Performance do not. However, AIS and Performance can still be used to measure the Quality of FSLG. AIS is a primary need that cannot be left out in the process of presenting FSLG. Likewise for Performance, each Local Government already has its own KPI which will make CSA work properly following the rules, including in the preparation of the FSLG. The implication is to facilitate the internal and external parties in assessing and improving the quality of FSLG.

The Politics of Differentiated Integration: What do Governments Want? Country Report - Portugal

This country report analyses the salience and position of differentiated integration (DI) in Portugal in the period between 2004-2020. Employing a quantitative and a qualitative analysis, it first examines the salience of DI models and mechanisms for the successive Portuguese governments using documents such as government programmes, Prime-Minister speeches, parliamentary debates, and statements by the Prime Minister in European Council meetings. Secondly, it reviews governments’ general positions on DI, while zooming in on four peaks of salience: the Lisbon Treaty, the debate on the Unitary Patent, the financial crisis and the discussions on the Financial Transaction Tax and the Fiscal Compact, and the White Paper on the Future of Europe. The results from the salience analysis demonstrate a low saliency of differentiated integration (DI) and, more generally, European integration in Portugal. DI models were more salient than DI mechanisms, while DI instances are the most salient. Salience was enhanced by an increasing intersection between domestic and European politics during the euro crisis period, politicising the debate especially around DI instances of an economic nature. The position of Portuguese governments regarding DI during the period analysed was overwhelmingly negative. In general, this stance was also shared by the opposition parties. Over the period of analysis, a wide consensus stood out among Portuguese political parties that DI models clearly go against both the European – by risking a disaggregation of the EU – and the national interest – by possibly pushing Portugal into an even more peripheral position. Notwithstanding this generally negative view of DI, mainstream parties – which alternated in government during the timeframe of the analysis – viewed the enhanced co-operation mechanism in a generally positive manner, recognising its potential to promote advances in European integration when the EU faced critical deadlocks.

The electoral cycle and the tax policy of gminas

Background: The subject of this study is the implemented tax policy of gminas and its factors. One of the popular concepts explaining changes in tax policy is the theory of the political (elec­toral) cycle, according to which electoral decisions are highly dependent on the perception of the economic situation. In election years, local authorities usually attempt to lower or avoid raising local taxes. Therefore, the author focuses mainly on recognising the “electoral” motivations of the adopted tax policy based on the example of gminas in the Małopolskie Voivodeship.
 Research purpose: The aim of the study is to analyse and evaluate the tax policy of gminas in the context of the impact of the electoral cycle on the level of local taxes and operating surplus, based on the example of gminas in Małopolskie Voivodeship. According to the author, the impact of the political business cycle on the tax policy of Polish gminas can be observed.
 Methods: Both quantitative and qualitative methods were applied in the study. The literature on local tax policy and its differentiating factors was reviewed. The methods of descriptive statistics (structure indicators) were used to analyse data from the budget reports of local government units and statements of the National Electoral Commission. An important source of information in terms of qualitative research were the results of the author’s own survey conducted among the treasurers of gminas in Małopolskie Voivodeship. They allowed for confrontation of the de­termined economic patterns with the opinions of entities having the most information about the financial management of local governments at the gmina level.
 Conclusions: The analysis of the data confirmed that the role of local taxes in the building of po­litical capital before local elections was practically insignificant. The research did not indicate that there was any connection between the level of local tax rates and the electoral cycle. Tax policy is perceived by the voters as a relatively insignificant aspect of local policy. In election years, lower budget performance of most gminas implies that the political business cycle affects investment expenditures rather than tax revenues.

Does political motives affect local government financial statement quality

This study aims to analyse the effect of political motives on the quality of local government financial statements (LGFS) in Indonesia. As a public institution, local governments need to increase transparency and accountability by producing high quality financial statements. The LGFS quality is measured using qualitative characteristics while political motives are measured by percentage of opposition member in the legislative, meanwhile, the election year and re-election chances are used as moderating variable. To test the hypothesis, two sample groups were used. The first group of all selected local governments between 2016 and 2017 while the second group are the local governments that have conducted an election. The results showed that political competition had positive effect on LGFS quality while election year together with re-election chances strengthened the positive effect.

Government Internal Control System and Local Government Administration Performance: Evidence from Indonesian Local Governments

This study investigates the effect of local government internal control systems on local government administration performance. We use secondary data from the Ministry of Internal Affairs, Financial and Development Supervisory Agency, Indonesian Statistics Bureau, and respective local government financial statements and websites. We generate a set of panel data from 508 local governments during 2017-2019 with 1524 observations analysed with panel data regression. We evidence that several local governments still have low and medium administration performance in 2017-2019 that has not met the expectation of the Ministry of Internal Affairs as stated in the strategic plan in 2015. Our analysis provides empirical evidence that control environment, risk assessment, and information and communication positively affect local government administration performance. Our result provides implications to the Financial and Development Supervisory Agency to continuously optimise internal control system development programs in Indonesian local governments and the Ministry of Internal Affairs to have higher enforcement of local government administration performance achievement.

Does political motives affect local government financial statement quality

Does political motives affect local government financial statement quality

The effectiveness of local government financial statement audit by public accounting firm

The effectiveness of local government financial statement audit by public accounting firm

Not So Respectful Consideration: The U.S. Supreme Court's Deference or Lack Thereof to Foreign Government Statements of Law

Not So Respectful Consideration: The U.S. Supreme Court's Deference or Lack Thereof to Foreign Government Statements of Law

THE EFFECT OF HUMAN RESOURCES AND INFORMATION TECHNOLOGY ON THE REVALUATION OF GOVERNMENT FIXED ASSETS

The central government has implemented a government fixed asset revaluation policy. The main objective of the policy is to present the fair value of fixed assets in the government's financial statements. However, the results of fixed asset revaluation are not accepted by the BPK and must be corrected and recorded in the government financial statements for the 2019 fiscal year. Competent human resources and the use of information technology are considered two factors needed to achieve the revaluation objectives. This study was conducted to determine the level of significance of these two factors by distributing questionnaires to BMN officers and assessors from 82 ministries/agencies throughout Indonesia. The research data were processed by path analysis method using the Structural Equation Model (SEM) partial least squares (PLS) through Smart PLS 3.3.2 software used to assess measurement models and research structural models. The results of data processing concluded that the competence of human resources and information technology has a significant effect on the revaluation of government fixed assets. However, information technology needs to be improved again because the significance value is only half that of the human resources competency value.

Analyzing the Role of Internal Control System in Maintaining Unqualified Opinion (WTP) in Local Government Financial Statements: Case Study in Jambi Province

This study analyzes the role of Internal Control System (SPI) in maintaining unqualified opinions on the Jambi Provincial Government Financial Statements. A descriptive comparative method is used with a qualitative approach. The object of the study is the Internal Control System in the Jambi Provincial Government Financial Statements of 2016-2018. Data is analysed using the selection technique before drawing conclusions. The results show that the Internal Control System in Jambi Provincial Government Financial Statements is very weak. The system has not been effective in its implementation because there are still findings related to SPI by the Supreme Audit Agency (BPK) every year. Therefore, it is necessary to follow up on the recommendations of BPK to build a better SPI in the future. This should be based on the elements of the internal control system contained in Government Regulation Number 60 of 2008, including control environment and activities, risk assessment, information and communication, and monitoring.

The Instagram Infodemic: Cobranding of Conspiracy Theories, Coronavirus Disease 2019 and Authority-Questioning Beliefs.

The novel coronavirus 2019 pandemic has brought about an overabundance of misinformation concerning the virus (SARS-CoV-2) and the coronavirus disease 2019 (COVID-19) it causes spreading rapidly on social media. While some more obviously untrustworthy sources may be easier for social media filters to identify and remove, an early feature was the cobranding of COVID-19 misinformation with other types of misinformation. To examine this, the top 10 Instagram posts (in English) were collected every day for 10 days (April 21-30th, 2020) for each of the hashtags #hoax, #governmentlies, and #plandemic. The #hoax was selected first as it is commonly used in conspiracy theory posts, and #governmentlies because it was the most commonly cotagged with #hoax. For comparison, we selected #plandemic as the most popular cotagged hashtag that was clearly COVID-19-related. This resulted in 300 Instagram posts available for our analysis. We conducted a content analysis by coding the themes contained in the posts, both for the images and the text caption shared by the Instagram users (including hashtags). The broad theme of general mistrust was the most common, including the idea that the government and/or media has fabricated or hidden information pertaining to COVID-19. Conspiracy theories were the second-most frequent theme among posts. Overall, COVID-19 was frequently presented in association with authority-questioning beliefs. Developing an understanding of how the public shares misinformation on COVID-19 alongside conspiracy theories and authority-questioning statements can aid public health officials and policymakers in limiting the spread of potentially life-threatening health misinformation.

Kingdom of Lesotho

In response to a request from the authorities and as part of the United Kingdom’s Department for International Development (DFID) Enhanced Data Dissemination Initiative (EDDI) 2 project, a government finance statistics (GFS) mission visited Maseru, Lesotho, during January 20–31, 2020. The mission was the last, in a series of five consecutive technical assistance (TA) missions to Lesotho, as part of the EDDI 2 project. The objective of the five-year project, that started in 2015 was to foster compilation and dissemination of GFS and public sector debt statistics (PSDS) consistent with international methodological standards. The work program under the project identified the enhancement of classification of transactions in fiscal accounts and the expansion of the institutional coverage of data to include all significant general government units as key milestones to achieve by the end of the project.

The Effect of Regional Government Size, Legislative Size, Number of Population, and Intergovernmental Revenue on The Financial Statements Disclosure

This study intends to discover the disclosure level of local government financial statements regarding the local government size, legislative size, population, and intergovernmental revenue. This study uses the Regency / City Regional Government in East Java Province in 2016-2018. Census sampling method which is 114 samples in the District / City Government in East Java Province is applied. The hypothesis testing in this study is multiple linear regression with SPSS. The results of this study are that the size of the regional government and the size of the legislature have no effect on the financial statements; the population has a significant effect on the financial statements, and the intergovernmental revenue has a significant effect on the financial statements of the local government. This study contributes to providing suggestions to improve the quality of local government financial reports.

PENGARUH SISTEM INFORMASI PENGELOLAAN KEUANGAN DAERAH DAN BIMBINGAN TEKNIS KEUANGAN TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH KABUPATEN LEBAK

<div><table cellspacing="0" cellpadding="0" align="left"><tbody><tr><td align="left" valign="top"><p><em>This This study aims to analyze the effect of the Regional Financial Management Information System and Financial Technical Guidance on the Quality of the Lebak Regency Regional Government Financial Statements for the period 2012-2016. Because of an increase in opinion from the Financial Supervisory Agency from the previous year. This is an interesting phenomenon that occurs in Lebak Regency.</em></p><p><em>The method of research conducted by the author is a quantitative method. Respondents in this study were all financial administration officials (PPK), expenditure treasurers, revenue treasurers and regional financial management information system operators in 30 regional organizations at the level of Agency / Service in Lebak Regency, amounting to 99 respondents. Data retrieval is done by using a sample non probability sampling in the form of purposive sampling. Data obtained 94 respondents from 99 questionnaires distributed. The data obtained were analyzed using the SPSS version 22.0 program. Data analysis techniques used to test the hypothesis using the Classic Assumption Test formula, Multiple Linear Regression Analysis, Correlation Coefficient, Determination, Regression Coefficient Test together (f test) and Partial Regression Coefficient Test (t test).</em></p><p><em>The results of data analysis obtained from 94 respondents, obtained values in the equation Y = 1.711 + 0.213X1 + 0.715X2 and adjusted R square (R2) of 0.843 or 84% of the variables X1 and X2.</em><em> </em><em>From the description above, it can be concluded that the Regional Financial Management Information System and Financial Technical Guidance influence and significantly affect the Quality of Local Government Financial Reports in Lebak Regency.</em><strong></strong></p></td></tr></tbody></table></div>

Domination of Regional Wealth as a Determining Factor of Financial Statement Disclosure

AbstractUsing Stewardship theory, this study examines the factors that influence the level of mandatory disclosure within financial statements of provincial governments in Indonesia, including size of government, regional wealth, number of Regional Working Units (SKPD), administrative age of government and audit findings. By applying the purposive sampling method, this study uses a sample of financial statements from 27 provinces in Indonesia during 2016 to 2018, therefore the total sample is 81 financial statements. The findings reveal that there is a moderate level of compliance with key mandatory disclosures (61,33%). In addition, the regression analysis shows that from the five potential predictor variables, regional wealth is the only predictor that is significantly positive towards the level of mandatory disclosure within financial statements of Indonesian provincial governments. Given overall non-compliance rate of over 38% there is a clear need for the Indonesian government especially the Supreme Audit Board (BPK) to better enforce provincial government's compliance combined with important financial reforms and regulations.

EVALUATING THE ROLE OF INTERNAL AUDIT AND ITS RELATION TO THE QUALITY OF FINANCIAL STATEMENT

Purpose — This research aimed to obtain empirical evidence about the effect of accounting understandability, human resource competency and the role of internal audit as moderating variable on the quality of financial statement.Design/methodology/approach — This research was conducted on all financial administration officials and treasurers of local government in Bangli Regency with the primary data was obtained from questionnaires which were distributed to respondents. Sample was determined through purposive sampling. The analysis technique used was the multiple linear regression analysis.Findings — The results suggested that accounting understandability and the human resouce competency had positive effect on the quality of financial statement. Meanwhile, the relation between accounting understandibility and the quality of financial statement, the role of internal audit was not the moderating variable. Whereas, the effect of the role of internal audit was proven to moderate the relation between human resource competency and the quality of financial statement, with negative direction.Practical Implications — The financial statement of local government is a form of accountability on the use of local finances as the implementation of regional autonomy and the operational of local government to provide useful information in decision making.Originality/value — The quality of the said financial statement is determined by qualitative characteristics which are relevant, reliable, comparable and understandable, based on PP No. 71 of 2010.Keywords Accounting Understandability, Human Resource Competency, Role of Internal Audit, Quality of Financial StatementPaper Type Research Paper

Government procurement and financial statement certification: Evidence from private firms in emerging economies

In this paper, we examine the monitoring role of government customers in emerging markets, a setting where public procurement is significant but the procurement institutions are weak. In these countries, financial statement certifications could be an important mechanism for a private firm to facilitate contracting with governments. Employing a sample of private firms across 98 emerging economies, we first document in-depth private-firm audit regulations for each country. We find that firms are more likely to have financial statements certified by an external auditor when they have government contracts. We further find that the association is less pronounced when governments have weaker monitoring incentives – when suppliers are subject to monitoring from tax authorities or creditors, when government contracting officials receive bribes, and when government spending is less transparent. We corroborate our inferences using the staggered adoption of an E-Procurement system to infer changes in governments’ monitoring incentives and several other robustness checks.

Efek Budget Ratcheting Pada Anggaran Pemerintah Kabupaten/Kota Provinsi Sumatera Barat

This research is aimed to know the effect of budget ratcheting in local revenue, balancing funds, and capital expenditures. This study also examines how the effects of budget ratcheting in the relationship between local revenue to regional expenditures. This research is categorized as causative research. The population in this study are all regencies / cities in the province of west sumatra, which are 12 districts and 7 cities. Sampling in this study was conducted using total sampling. The data in this study were sourced from the district / city local government financial statements in west sumatra province in 2014-2018. The data in this study were processed using spss 23. The results of this study indicate that there is a budget ratcheting effect in local revenue, balance funds and capital expenditures. the results of this study also show that local revenue influences regional expenditure and budget ratcheting to weaken the relationship between the two.

The Influence of Capital Expenditures, Government Size, and Audit Opinions on Disclosure of Government Financial Statements of Nusa Tenggara

This study is a quantitative study that aims to examine the effect of capital expenditure as measured by total expenditure transformed to Ln capital expenditure, Government Size measured by total asets transformed to Ln total asets and Number of SKPDs, and audit opinion measured by grading levels opinion obtained by the Regency / City in Nusa Tenggara. The population in this study were all districts / cities in Nusa Tenggara 2016-2018, the sample in this study used a saturated sample. Testing the hypothesis in this study using Multiple Regression Analysis with the SPSS program. Hypothesis testing results show that (1) capital expenditure has a significant effect on the disclosure of local government financial statements (2) government size on asets does not have a significant effect on the disclosure of local government financial statements (3) government size on the number of SKPD does not significantly influence the disclosure of government financial statements regional (4) audit opinion has a significant effect on the disclosure of local government financial statements

DIMENSI KARAKTERISTIK LAPORAN KEUANGAN PEMERINTAH

This research to prove the commitment of the leadership, the capacity of the financial apparatus, the implementation of the Regional Financial Accounting Standards, and the internal control function have an influence on the characteristics of government financial reports. This research is a quantitative study using primary data. The population in this study were senior auditors of the South Sulawesi Representative Audit Board using a purposive sampling technique so that the sample was sixty-eight auditors. The data were collected by using a questionnaire method. The analytical method used in testing the hypothesis is multiple linear regression analysis. The results of the study prove that the commitment of the leadership, the capacity of the financial apparatus, the application of the Regional Financial Accounting Standards, and the internal control function significantly influence the characteristics of government financial reports.Keywords: leadership commitment, the capacity of financial Apparatur, the implementation of government accounting standards, internal control, the quality of local government financial statements.