Government Financial Reports Research Articles

The fraud triangle: factors causing fraud in government financial reports

Fraud Terms in financial reports, it is an action or deed that can cause reporting errors in financial reports, where this action is an action carried out intentionally to gain personal benefit from the resources available in the company or certain field that is being undertaken. This action is often carried out by a person or management by manipulating financial reports or in Indonesia is often referred to as corruption. The aim of this research is to conduct a literature review regarding the factors that cause fraud in the preparation of financial reports. In examining these financial reports, the auditor is tasked with and is expected to be able to detect fraud before concluding whether a financial report is reasonable or unreasonable. There are several factors that can cause fraud based on literature studies that have been carried out by researchers, namely due to pressure, opportunities, and factors of rationalization or self-justification. This research was carried out using the literature study method or literature review of previous research related to the problem being researched, namely fraud. The results of the research obtained show that several factors that cause fraud in financial reports are mostly due to pressure, opportunity and individual factors.

Analysis of Motor Vehicle Tax, Motor Vehicle Title Transfer Tax, and Motor Vehicle Fuel Tax in 2018 - 2022 on Local Revenue in DKI Jakarta Province

This research aims to analyze the effectiveness and contribution of motor vehicle taxes, motor vehicle title transfer fees, motor vehicle fuel taxes to DKI Jakarta's PAD in 2018-2022. This research uses a qualitative descriptive method with secondary data obtained from local government financial reports via the official website of the Jakarta Information and Documentation Service. The data analysis technique used is the effectiveness analysis method with the effectiveness ratio and contribution analysis method. The results of this study show that there is effectiveness in the realization of motor vehicle tax with a very good level of effectiveness with an average of 100.81% and motor vehicle transfer fee tax with an average of 102.16% and motor vehicle fuel tax with an average of an average of 103.89% has a very good effectiveness level with a percentage that fluctuates from year to year. Motor vehicle tax contributes quite a bit and motor vehicle transfer fee tax has a low level of contribution to the PAD of DKI Jakarta Province, then motor vehicle fuel tax has a very low level of contribution to PAD of DKI Jakarta Province.

Logistic Regression to Predict BPK’s Audit Opinion

The auditor uses the audit results of the local government financial reports to provide a professional statement in the form of an opinion and recommendations in the audit report. These opinions and recommendations are important for the local government's policy because they contain guidelines for its improvement. Purpose. This study examines the effect of audit findings (Internal Control System, non-compliance with regulations, and audit recommendation follow-up) on BPK's audit opinion using a case study of the Regional Governments in Kalimantan Zone. Methodology/approach. The logistic regression was used to determine the effect of audit findings and follow up on the BPK's opinion of audit results. This study uses secondary data (BPK Semester Examination Results Summary or IHPS) collected from 2018 to 2023. Findings. The results showed that audit findings (the internal control system and non-compliance with regulations findings) significantly negatively affected the BPK audit opinion on the financial statements in the Kalimantan region. In addition, the follow-up examination results significantly positively impact the BPK audit opinion on the financial statements in the Kalimantan region. The result was that the lower findings of the internal control system and non-compliance with regulations resulted in a better audit opinion of BPK. In addition, the higher the index follow-up on audit results, the better the acquisition of BPK audit opinion is generated. Originality/value. This study extends and contributes to the extant BPK audit opinion literature by providing new insight into how audit findings affect BPK's audit opinion in the Kalimantan zone settings. Practical implications. This finding implies that local governments must improve the implementation of internal control systems and compliance with regulations and consistently undertake BPK recommendations to increase the quality of financial reporting. The findings offer vital evidence to improve the quality of financial reporting in driving local governments' service quality. Limitations. This study only uses data from the Kalimantan region, so the generalization of the study results does not apply nationally and may cause bias in the method. To minimize bias, the next researcher can use a larger sample of data, not just one area.

Determinants of Transparency of Local Government Financial Reports in Indonesia

Determinants of Transparency of Local Government Financial Reports in Indonesia

Analysis of Village Government Financial Reporting in Ratahan District, Southeast Minahasa Regency

This study aims to assess the financial reporting of village government based on transparency, accountability, and efficiency in Ratahan District (Southeast Minahasa Regency). We adopted a qualitative descriptive approach, and data were gathered from in-depth interviews with village officials, community leaders, and residents. The study highlights major hurdles, such as uneven implementation of fiscal rules in the villages and insufficient practical skills among local government leaders. Overall, the key findings also identify that financial reports are often unclear and do not provide enough detail which ultimately detracts from transparency and accountability. In addition, these specific numbers emphasize the importance of planning processes to address community mental health—as demonstrated by their financial planning and process in the Rasi Village Work Program. The study suggests that training should be increased for village officials, financial reports must be standardized and made accurate, and there should be participation of residents of the planned village finance. These measures are necessary to answer the challenges posed and hence improve financial reporters’ practice in village governments.

INTERNAL CONTROL IN THE PUBLIC SECTOR IN INDONESIA: A CASE STUDY OF STATE TAX RECEIVABLES MANAGEMENT

Abstract— This research focuses on the Internal Control System (SPI) in managing tax collection at the Directorate General of Taxes (DGT). This study is concerned with the effectiveness of internal control in the public sector, especially on the revenue administration of the central government, which is also stated in the Audit Agency (BPK) report. Internal control is vital to maintain the reliability of financial information in an organization. The method used is qualitative, using The DGT as a case study. The novelty of this research lies in its focus on the tax receivable from both internal and the auditor's points of view. Interviews were conducted with the DGT, the Financial Audit Agency (BPK), and the Inspectorate General (Inspektorat Jenderal/Itjen). Data comes from the Central Government Financial Statements (Laporan Keuangan Pemerintah Pusat/LKPP) and Audit Reports (Laporan Hasil Pemeriksaan/LHP). The results of this study show that the SPI in managing tax collection is good, but there is still room for improvement. It is expected that some recommendations for improving the SPI, such as improving the issuance of letters for the implementation of tax receivables to be entirely through the system, limiting the materiality of collecting tax receivables, maximizing tax collections, especially those that will expire, adding an early warning system to detect overdue collections, faster solving suspend data, and data integration, especially with the tax court for appeal decisions and commercial courts for registration of tax receivables to curators.
 Keywords: Audit Report; Central Government Financial Report (LKPP); Internal Control System; Tax Receivables.

THE AUDITOR’S RATIONAL CHOICE OF THE AUDITOR BOARD OF THE REPUBLIC OF INDONESIA IN EXAMINING GOVERNMENT FINANCIAL REPORTS

Abstract - This research aims to determine the dilemma of rational choice of auditors from the Audit Board of The Republic of Indonesia in examining government financial reports during the Covid-19 Pandemic. This research using phenomenological approach with interpretive paradigm. Methods of qualitative research were applied in this research. The method used in this research is the phenomenological approach. The subjects of this study serving as informants are those who hold functional positions as auditors within the Audit Board of the Republic of Indonesia. The findings of this study suggest that the challenge faced by the auditors of The Audit Board of The Republic of Indonesia during the Covid-19 outbreak is the auditor's dilemma when evaluating financial accounts. Limited engagement with other people is one of the challenges faced by auditors, making it challenging to gather information or data that ought to be simple. The practice of Working from Home (WFH) could frequently lead to misunderstandings with auditors. This is due to the fact that there is not any face-to-face direct communication between colleagues. Conclusion: The auditors of the Audit Board of The Republic of Indonesia always attempt to make decisions based on careful consideration and sensible choices in order to accomplish the audit objectives when performing their responsibilities. Additionally, there are concerns that emerge based on an auditor's feelings.
 Keywords: Auditor; Covid-19; Rational Choice Dilemma; The Auditor Board of the Republic of Indonesia

Financial Report Quality: The Role of Accrual-Based Government Accounting Standards and H.R. Competency

This study aims to analyze and obtain empirical evidence about the effect of accrual-based government accounting standards and human resource competencies on the quality of government financial reports. Respondents in this study were employees of the financial division of offices in DKI Jakarta. The financial employee research sample is 100 respondents. The analysis technique uses PLS-SEM with the SmartPLS 3.0 program. The results of this study indicate that the competence of human resources influences the application of P.P. No. 71 of 2010 based on accruals and the quality of financial reports. Meanwhile, the application of accrual-based government accounting standards has no effect on the quality of financial reports. The results of this research can be useful for the government as input and consideration in determining policies, especially related to improving the quality of local government financial reporting information and increasing human resource competence, as well as financial accountability.

Effect of regional original income and balanced funds on capital expenditures with economic growth as moderating

This study aims to examine the effect of Regional Original Income and Balanced Funds on Capital Expenditures with Economic Growth as Moderating Variables and their Review from an Islamic Perspective. This research method uses quantitative research using secondary data obtained from the PPID of the Supreme Audit Agency of the Republic of Indonesia (BPK RI) in the form of Regional Government Financial Reports (LKPD) regarding Budget Realization Reports in DKI Jakarta Province for Fiscal Year 2017-2021. The sampling technique in this study used a saturated sample, and the data obtained were 5. The analytical method used was multiple linear regression analysis with SPSS version 25.0 application. The results of this study indicate that Regional Original Income and Balancing Funds do not affect Capital Expenditures, Economic Growth does not moderate the influence of Regional Original Income and Balancing Funds on Capital Expenditures. and overall, from an Islamic perspective, all related variables have met Islamic law as stated in the Al-Quran and Hadith.

Determinants of the quality of financial reports in regional government: A literature review

Government financial reports act as an essential tool for accountability and transparency of financial performance to the public, but their quality is still a big concern in Indonesia. This research aims to dive deeper into these crucial factors and their impact on the quality of financial reports, providing in-depth insights into their relationships and providing guidance for further research in the context of financial management. The method used in this research is a systematic review of related articles from the SINTA database. The results show that implementing an effective internal control system is critical in minimizing errors in financial reports and increasing their credibility. Human Resource Competency, especially related to government accounting principles, is also a determining factor in ensuring the integrity and reliability of financial information. A high level of commitment from employees and management is essential to provide better accounting information. In addition, using information technology through government websites is crucial in strengthening the management process of regional government financial reports.

Measuring the Level of Regional Government Financial Efficiency in Aceh

This research aims to analyze the process and strategy of utilizing Regional Government expenditure inputs in producing public service outputs, and their influence on community welfare. Practically, it is hoped that the results of this research can provide input for improving management and strategies for optimizing the use of decentralization funds to increase efficiency in improving the quality of public services. Considering the many weaknesses and problems faced in managing APBD in the context of decentralization. This research uses a census method where the entire research population is observed . We collected secondary data in the form of audited Regional Government Financial Reports (LKPD) from 23 Regencies/Cities in Aceh from 2017 to 2021 and reports published by the Central Statistics Agency. The measurement uses the Data Envelopment Analysis (DEA) method which will show local governments with input or output inefficiencies. Results studies This find that only there are 4 of the 23 regional governments in Aceh that are relatively large efficient during 2017-2021 period. City Government Langsa is relatively the most efficient regional government compared to with Local Government others in Aceh. This research provides important information in the form of values that must be achieved so that regional governments can be efficient. If regional governments are able to increase their output, they will achieve efficiency, thus opening up the potential for efficient regional governments to be greater than inefficient regional governments.

Analysis of Regional Financial Report Disclosure Factors: A Literature Review

This research looks at various factors influencing regional government financial report disclosure in Indonesia. The method used is a literature review using the SINTA database with a publication period of ten years. The results show that good audit opinions, a high level of independence, and effective regional revenue management positively impact the disclosure of regional government financial reports. Other factors, such as political pressure, population size, and regional wealth, also play an important role in shaping transparency. Increasing openness of financial information at the regional level strengthens accountability and builds public trust in local government. Based on these findings, it is known that it is important for local governments to pay attention to factors such as audit opinion, level of independence, and revenue management to increase financial report disclosure. In addition, understanding political pressures, population size, and regional wealth is also needed to form effective transparency policies. Increasing the transparency of financial information at the regional level is expected to strengthen government accountability and build public trust, support good governance, and increase the efficiency of regional financial management

Incumbents’ re-election incentives and financial report disclosure in Indonesian local government

<p>This study investigates the relationship between incumbents' re-election incentives and financial reporting disclosure in the Indonesian local government. This study uses a sample of 351 local governments at the city or district level throughout 2015-2017 when they ran a local election. Content analysis is used to assign scores to the extent of disclosure. The incumbent mayor or regent who runs a second election is signaled by 1 and 0 otherwise as the proxy for the incumbent's re-election incentives. Cross-sectional multiple regressions will be conducted to examine the hypothesis that there is a significant relationship between an incumbent's re-election incentives and disclosure of financial statements in the local government. Our findings show that incumbent re-election incentives do not have a relationship with the disclosure of financial reports. The incumbent incentive to be re-elected does not necessarily drive an incumbent to disclose its financial statements. Regarding the control variables, significant negative relationships exist between dependencies and the size of the local government towards disclosure level. However, the complexity of the population was positively related to the disclosure level of financial reports. On the contrary, political competition, debt ratio, and type of local government were not related to the disclosure level of the local government's financial reports.</p>

Pengaruh Pendapatan Asli Daerah, Opini Audit, Dan Belanja Modal Terhadap Kinerja Keuangan Pemerintah Daerah

The research aims to determine and analyze the influence of local revenue, audit opinions and capital expenditure on regional financial performance in districts/cities in East Java province. The data processed is secondary data taken from the 2018-2021 District/City Regional Government Financial Reports (LKPD) of East Java Province with a sample size of 38 districts/cities using the documentation method. The method used in this research is the panel data regression analysis method using the IBM SPSS version 26 application. The research results found that local revenue has a positive and significant effect on local government financial performance, audit opinion has a positive but not significant effect on local government financial performance, and capital expenditure has no and no significant effect on local government financial performance.

Pengaruh Penerapan Standar Akuntansi Pemerintahan, Kualitas Sumber Daya Manusia, Sistem Pengendalian Intern Terhadap Kualitas Laporan Keuangan Pemerintah Daerah Kabupaten Bungo

This study aims to see the effect of implementing government accounting standards, the quality of human resources, internal control systems on the quality of local government financial reports. This type of research includes causal associative research (cause and effect). The population in this study is the OPD in Bungo Regency, namely a total of 23 OPD consisting of the Office, Agency, Regional Secretariat and District. The number of respondents each consisted of one PPK person and one expenditure treasurer, with a total of 46 respondents. The sample in this study used a saturated sampling technique. The type of data used is primary data. The analysis was performed using a multiple regression model. The results of this study indicate that the application of government accounting standards and internal control systems has a significant positive effect on the quality of local government financial reports (sig 0.000). The quality of human resources has no effect on the quality of local government financial reports.

Pengaruh Implementasi Sistem Informasi Manajemen Daerah, Kualitas Sumber Daya Manusia dan Penerapan Standar Akuntansi Pemerintah Terhadap Kualitas Laporan Keuangan Pemerintah

This study aims to determine the effect of SIMDA, HR quality and SAP implementation on the quality of government financial reports at the Regional Financial and Asset Management Agency of Merangin Regency. This study uses a quantitative approach with primary data in the form of observations, interviews and questionnaires. Sampling in this study used a purposive sampling technique with a sample of 40 people. In this study using multiple linear regression analysis and testing the hypothesis on the T test and F test and analysis of the coefficient of determination. The results of this study indicate that the implementation of regional management information systems and the quality of human resources have no significant effect on the quality of government financial reports, while the research results for the variable of application of government accounting standards show that they have a significant effect on the quality of financial reports. For simultaneous test results (F test), namely the implementation of regional management information systems, the quality of human resources and the application of government accounting standards have a joint effect on the quality of government financial reports. The results of the coefficient of determination (R2) show that the independent variables namely SIMDA implementation, HR quality and SAP implementation can explain the variable quality of government financial reports by 61%, the remaining 31% is influenced by other variables not examined in this study.

DETERMINAN AKUNTABILITAS KEUANGAN DENGAN KUALITAS INFORMASI LAPORAN KEUANGAN SEBAGAI VARIABEL INTERVENING PADA BADAN KEUANGAN DAERAH KOTA DEPOK

This paper aims to study how internal control system and human resource competence affect the information quality of local government financial statement and how its impact on financial accountability. The data collection method was a questionnaire distributed to 50 samples of the Badan Keuangan Daerah, Kota Depok. The collected data was processed using SPSS 27.00 with t test and Path Analysis. The research results show that the internal control system and human resource competency have a positive effect on the local government financial statement. The internal control system and human resource competency also have a positive effect on financial accountability, both directly and indirectly, mediated by the quality of local government financial report information. In addition, the quality of local government financial report information has a direct and positive effect on financial accountability. The results of this research can be useful for the government as input and consideration in determining policies, especially regarding improving the quality of information on government financial reports and financial accountability.

COMPREHENSIVE BUDGET MODEL AS A BUSINESS PLANNING TOOL

This study aims to create an accrual-based accounting model for the Nagari Government. The research method used in obtaining data is observation and interviews while analyzing data using qualitative analysis, namely analysis using an accrual-based accounting model based on Minister of Home Affairs Regulation Number 20 of 2018 concerning the Application of Accrual-Based Government Accounting Standards in village financial management. The analysis results show that since issuing Minister of Home Affairs Regulation Number 20 of 2018 concerning the Application of Accrual-Based Government Accounting Standards in Village Financial Management until the end of 2022, it has not been optimal in preparing accrual-based Nagari Government financial reports. This happens because the apparatus resources must still be ready to implement accrual-based accounting. In addition, the formats used as tools in accrual-based accounting records are more complete, so it is necessary to design a model that the village apparatus can understand.

Menilai Kualitas Laporan Keuangan Pemerintah Daerah dari Aspek Sistem Informasi dan Pengelolaan Aset Daerah

This research aims to determine whether the regional financial management information system and regional fixed asset management have an effect on the quality of regional government financial reports in the West Bandung Regency Regional Government. The independent variable consists of regional financial management information systems and regional fixed asset management, while the dependent variable is the quality of regional government financial reports. This type of research is included in quantitative research, while the research methods used are descriptive and verification methods. The population in this study were employees of the accounting and asset recording section at SKPD in the West Bandung Regency Government. The sampling technique is non-probability sampling using purposive sampling, so the total sample is 94 people. The data analysis used in this research is multiple linear regression analysis using SPSS software. Partial and simulated research results show that leadership and work discipline influence employee performance. This study shows that there is a significant impact from the implementation of the Regional Financial Management Information System and Regional Fixed Asset Management on improving the quality of regional government financial reports.

Determinan Kinerja Keuangan Pemerintah Kabupaten/Kota di Provinsi Sumatera Selatan

This study analyzes the determinants of financial performance in the District/City Governments of South Sumatra Province using panel data from 2017 to 2021. The independent variables examined are Regional Government Prosperity, Regional Government Size, Regional Government Dependency Level, and Capital Expenditure. The research applies the Common Effect Model (CEM) approach for panel data regression analysis. Data is sourced from local government financial reports and other statistical data. The findings reveal that Regional Government Prosperity and Regional Government Size have a significant positive impact on financial performance, while the Regional Government Dependency Level has a significant negative impact. However, Capital Expenditure does not significantly influence financial performance. Simultaneously, the variables of Regional Government Prosperity, Regional Government Size, Regional Government Dependency Level, and Capital Expenditure exert a significant influence on the financial performance of District/City Governments in South Sumatra Province.