State Local Government Research Articles

Quality of Financial Statements on Decision Usefulness Regional Financial Statements Using the Report Information System Regional Finance as Moderating Variable

This study examines and analyzes the influence of the quality of local government financial reports on the decision usefulness of local government financial statements. The use of regional financial report information systems can moderate the influence of the quality of local government financial reports on the decision usefulness of local government financial statements. This research method data analysis using validation and reliability tests and multiple linear regression analysis to determine the effect of the independent variables supervisor support, training, clarity of purpose, and performance expectations on the dependent variable benefits of accrual-based regional financial accounting systems. Moderating variables are variables that affect (strengthen or weaken the relationship) the independent variable and the dependent variable and test the effect of the moderating variable using the interaction test, namely Moderated Regression Analysis (MRA).

The Moderating Role of Financial Supervision toward Quality of Financial Reporting at Deli Serdang, Indonesia

This study aims to analyse the determinants of the quality of information on the financial statements of the Deli Serdang district government with supervision as a moderating variable. In this study, we use the variable of human resources competency, government accounting standards, internal control systems and quality of local government financial report information. The population in this study were 90 employees in the accounting department at the SKPD in the Deli Serdang district, Indonesia. The data were collected using a survey questionnaire and analysed using the Structural Equation Modeling (SEM) Partial Least Square (PLS). Also, it is assisted by SmartPLS-3. The result indicates that government accounting standards and internal control systems significantly affect the quality of local government financial statement information. In contrast, human resource competence does not significantly affect the quality of local government financial report information. Regional financial supervision cannot moderate the relationship between human resource competence, government accounting standards, and internal control systems on government financial report information quality.

Does Flypaper Effect Really Exist? Evidence From Government Budget in East Indonesia

Regional autonomy is one form of policy from the Indonesian central government to encourage independence from every existing local government, but at the same time, it also creates economic inequality. To make it balanced, the central government provides transfer funds for every local government that needs it. However, the dependence of the local government on the central government transfer funds has led to the phenomenon called the Flypaper Effect. This study aims to see the effect and the existence of a flypaper towards Local Own-Source Revenue (Pendapatan Asli Daerah), General Allocation Fund (Dana Alokasi Umum), Special Allocation Fund (Dana Alokasi Khusus), Revenue Sharing Fund (Dana Bagi Hasil) and Local Expenditure. This study relays on audited financial statements of local governments in 11 provincial governments located in Eastern Indonesia from 2012-2017. It uses E-views to test the hypothesis. The results show that only the Special Allocation Fund does not affect Local Expenditure. Furthermore, in Eastern Indonesia, there is an existing flypaper effect phenomenon. The regional autonomy policy implementation still needs to be improved. The central government needs to motivate the local government potencies to maximize their original revenue and consider for adjust the policy itself.

Designing a toolset for assessing the organizational and technological inertia of energy consumption processes at enterprises

The object of this study is the assessment of the organizational and technological inertia of energy consumption processes at enterprises. The task to design effective toolset for such an assessment was tackled. The indicators for assessing the organizational and technological inertia of energy consumption processes at enterprises have been determined and systematized. The factors that influence the level of this inertia were highlighted. A method for decomposing the relative level of organizational and technological inertia of energy consumption processes has been developed. The level of organizational and technological inertia of the processes of natural gas consumption was assessed on the basis of a sample of enterprises. It has been established that this level is quite high. In particular, the duration of lag in the reduction of natural gas consumption, averaged over 2016–2021, ranged from 1.3 to 1.8 years. At the same time, the relative level of organizational and technological inertia of the processes of consumption of natural gas in terms of its natural volumes ranged from 36.5 % to 47.9 %. The empirical results are explained by the presence of significant obstacles to the implementation of organizational and technological measures to save natural gas. A feature of the designed toolset for assessing the organizational and technological inertia of energy consumption processes is that its use makes it possible to obtain a comprehensive and accurate assessment of the specified inertia. This toolset can be used by enterprises of all types of economic activity in assessing the reserves for reducing the organizational and technological inertia of energy consumption. In addition, the designed tools can be used by state authorities and local governments in the formation of strategies for energy-saving economic development

ТЕОРЕТИЧНА МОДЕЛЬ СОЦІАЛЬНО-ПСИХОЛОГІЧНОГО КЛІМАТУ В ОРГАНІЗАЦІЇ В ПРОЦЕСІ ВПРОВАДЖЕННЯ ДЕЦЕНТРАЛІЗАЦІЇ В УКРАЇНІ

The article examines the concept of the socio-psychological climate of the organization, its meaningful characteristics and factors that influence the phenomenon under study. Approaches to determining the components of the socio-psychological climate of the organization are summarized. The main factors of the socio-psychological climate of state authorities and local self-government bodies are summarized as phenomena that represent complex dynamic systems, the elements of which, in connection with a significant number of special specific tasks, are endowed with certain features and traits that reflect their specificity. The special features of state administration are presented, which lead to special approaches for analyzing the state of the social and psychological climate in the collectives of state authorities and local governments, with the aim of making it possible to further evaluate its components and form an integral indicator for calculating a favorable SPK to achieve the goals set for the participants of these institution. The substantive, characterological features of the organization as a phenomenon, state authorities, and local self-government bodies, which reflect the collective of organization members, including management, job relationships, rules, duties, decision-making methods, technologies, capital, strategies for achieving goals, are substantiated. The refined concept of "social-psychological climate of the state authority, local self-government body" is presented as a set of multifaceted elements that are based on the personal characteristics of the members of the institution's team, the peculiarities of their mutual relations, working conditions that determine the productivity of management activities in the affairs of the state and society. The first developed theoretical model of the socio-psychological climate of organizations, namely state authorities and local self-government bodies in the process of implementing the reform of local self-government and territorial organization of power in Ukraine, is presented.

Workers' Participation in Decision Making and Performance of Public Sector Organization in Enugu State Local Governments, Nigeria

Workers' Participation in Decision Making and Performance of Public Sector Organization in Enugu State Local Governments, Nigeria

EFEKTIVITAS PENYELENGGARAAN DEKONSENTRASI SEBAGAI WEWENANG GUBERNUR DALAM KEDUDUKAN SEBAGAI WAKIL PEMERINTAH PUSAT DI DAERAH

Deconcentration is an important element in the administration of the state. Its existence is not only in administrative law order, but also in Constitutional law because - like decentralization - it concerns the foundations and organization of the state. If decentralization gave birth to local government (autonomous region), then deconcentration gave birth to local state government (administrative area). These administrative areas are headed by what is known theoretically as a Prefector. For the Indonesian context, the prefector is held by the governor in such a way that the governor has a dual position, namely as the head of the autonomous region of the province as well as the prefector. The laws governing local government in Indonesia use the term representative of the center in the regions for the designation of prefector. Since the reformation until now, the administration of government from the center to the regions seems to have marginalized deconcentration as the governance structure. There was a strong impression during the reform era that looked at deconcentration as if were the antithesis of democracy. The impression was so strong that deconcentration and administrative areas were no longer included in the post-amendment 1945 Constitution. The deconcentrative authority possessed by the governor to revoke Regency/City Regional Regulations (Perda) that are contrary to higher laws, public interests, and decency, was annulled by the constitutional court in its decision in 2016. Furthermore, budgeting and regulation and formation the apparatus that assists the governor as the central representative in the regions appears to be running slowly. In this way the question arises: is the implementation of deconcentration effective by the governor as the representative of the central government in the regions? To answer this question, research was carried out on the implementation of the deconcentration. The results of the research show that the implementation of the deconcentration has not been effective due to various limitations: limited tools, limited rules, and limited authority

SYSTEM OF COOPERATION BETWEEN STATE BODIES, LOCAL GOVERNMENT AND PUBLIC ORGANIZATIONS IN MODERN POLAND

The article analyzes the system of cooperation between state bodies, local government and public organizations in Poland. During investigation activity we came to the conclusion that the basic legal instrument of cooperation forms between the state administration and non-governmental organizations is the Act of Law on Public Benefit and Volunteer Work. These mechanisms define interaction practice and legal framework for subsidies in the whole range of performance from public activities to the civil society organizations.

An Analysis of Local Government Financial Statement Audit Outcomes in a Developing Economy Using Machine Learning

Good financial management provides economic stability and sustainability to an organization. It enables an organisation to make good use of its resources and plan effectively. South Africa’s public financial management has deteriorated over time, with only 16% of municipalities receiving a clean audit in the 2020-21 financial period as reported by the Auditor General of South Africa. This work aims to find an appropriate model for analysing and predicting audit outcomes for South African municipalities. The data used in the study include 1560 observations of which 55% were unqualified audit opinions. The features used are 13 financial ratios obtained from financial statements from years 2012 to 2018. Feature selection is performed using random forest, correlation analysis and stepwise regression analysis. The performances of three machine learning algorithms are compared; decision tree, artificial neural network (ANN) and logistic regression models. The findings indicate that ANN is the appropriate model for predicting audit opinions in South African municipalities with overall average area under the receiver operating characteristic curve of 0.6918 and overall average area under the Precision–Recall curve of 0.7074 across all feature selection methods. In addition, debt to operating ratio, current ratio and net operating surplus margin are found to be the common three important financial ratios across the various feature selection techniques.

The Effect Of Local Government Commitment And Audit Opinion On Disclosure Of Local Government Financial Reports In Indonesia

In this study, the authors are interested in examining how the influence of heads of local government commitment and audit opinions on the disclosure of local government financial statements in Indonesia with the level of public education as a moderating variable. This study used a population of all provinces in Indonesia from 2019 to 2021, totaling 34 samples, according to the criteria needed in this study. This study uses logistic regression analysis with the results of the study that heads of local government commitment has a positive effect on local government financial statement disclosures, and audit opinions have a positive effect on local government financial statement disclosures. The level of education moderation variable can only strengthen the positive influence of heads of local government commitment on local government financial statement disclosures and weaken the positive effect of audit opinions on local government financial statement disclosures.

THE EFFECTS OF STATE-LOCAL-GOVERNMENTS JOINT ACCOUNT ON LOCAL GOVERNMENTS’ IMPACT ON RURAL DEVELOPMENT IN NIGERIA

This paper examines how the operation of State-Local Government Joint Account affects the impact of local government, in executing rural development programmes at the grassroots. The intention of the constitution is to forge cooperation between the state and local governments in managing efficiently local government allocations from Federation Account for the benefit of local people, but reports and agitation of the people on nature of operation of the account proves otherwise. For the purpose of contributing towards the reform of the operation of the account, the paper examines the nature of the operation of the account in some selected states, evaluates the effects of the operation on the local government impacts on rural development, and identifies ways of improving the operation of the account to achieve its objectives. In the process, descriptive analysis method was adopted in examining the available secondary data. However, the findings indicate that the state governments manipulate the account to the disadvantage of local governments. Also, most local governments are unable to contribute significantly to rural development activities because of paucity of funds. Therefore, the paper recommends way out to improve the operation of the account, instead of abolishing it, through effective budgeting; compliance, monitoring, and enforcement by Community Development Associations (CDAs); and prevention of mismanagement and diversion of funds by Anti-corruption agencies.

Stakeholders' perspectives on internal accountability within a sub-national immunization program: A qualitative study in Enugu State, South-East Nigeria.

Weak accountability hinders the effectiveness of routine immunization (RI) systems in low- and middle-income countries, yet studies on accountability of immunization programs are scarce. Aim: The study explored stakeholders' perspectives on the functioning of internal accountability within the National Program on Immunization in Enugu State, southeast Nigeria. We used semi-structured in-depth interviews to collect data from RI officials at state government, local government, and health facility levels (n = 35) in Enugu State between June and July 2021. We adopted maximum variation sampling to purposively select individuals with roles in immunization. The interview guide was developed based on an accountability framework with three dimensions-the axes of power, ability, and justice. Data were analyzed thematically using NVivo software (version 11). The major themes were role clarity, performance standards, supervision, data use, human resources, funding, motivation, sanctions, political influence, and community engagement. Performance targets for immunization coverage and reporting timeline were not always met due to multiple accountability failures. Weaknesses in the formal rules that distribute roles among the immunization workforce comprise a lack of deployment letters, unavailability of job descriptions, and inadequate staff orientation. Local officials have a narrow decision space regarding staff posting, transfer, and discipline. Performance accountability was constrained by staff shortages, uneven staff distribution, absenteeism, infrequent supervision, weak data monitoring system, and underfunding. Despite being motivated by job recognition and accomplishments, low motivation from an insecure working environment and lack of financial incentives undermined the constructive agency of service delivery actors. The sanctions framework exists but is weakly enforced due to fear of victimization. Political commitment to the immunization program was low. Yet, political decision-makers interfered with staff recruitment, distribution, and discipline. Community engagement improved resource availability through paid volunteer health workers and maintenance of facilities. However, health facility committees were poorly resourced, non-functional, and lacked the power to sanction erring health workers. Immunization service delivery actors can be held accountable for program performance when there are sufficient formal instruments that provide roles and responsibilities, needed resources, motivated and supervised staff, an effective sanctions framework, genuine political participation, and strong community engagement.

The Role of Human Development in Improving Local Government Performance Through Good Government Governance

The quality of audit opinion results of local government financial statements in 2015–2020 has increased. Still, non-compliance with laws and corruption cases has increased, indicating that the implementation of Good Government Governance (GGG) has not gone well. This paper provides empirical evidence of the role of human development in realizing GGG and its effect on the performance of local governments in Indonesia. The research was designed as associative quantitative research, an organizational unit of analysis. The total population is the regency and city government in Indonesia, as many as 514 local governments, and the sampling technique is purposive sampling. The qualified samples were 268 local governments, with data observed from 2018 to 2020, or 3 years, so the number was 804. The data was sourced from the Regional Government Implementation Performance Evaluation report. The GGG variables were measured using indices and local government performance variables use scores. The main analysis uses SEM PLS and additional analysis with panel regression. The results showed that GGG had a significant effect on the performance of local governments. Novelty, the dimension of human development can strengthen the GGG variable so that its influence on the performance of local governments is even greater. This research has theoretical, managerial, policy, and practical implications. In addition, the completeness of the research data, which is still lacking in information, is a limitation of this study. Furthermore, recommendations for local governments so that human development receives special attention to increasing competitiveness by increasing the allocation of labor budgets.

Discontinuity in Auditing: A Study in Foucauldian Perspective

Purpose: This study aims to determine the form of discontinuity in auditing, related to the provision of an opinion on a financial report. Theoretical framework: Foucaldian perspective is used to examine the disclosure of the form of discontinuity as it is preconceived as an effort to uncover the 'other' truth that surrounds a subject, object and event in the auditing process. Meanwhile, the audit opinion is 'proxied' as a result of construction that has gone through a process of interaction between the auditor and the auditee in a social arena. Design/methodology/approach: This is done through critical reading of discursive events when the audit of the regional government financial statements is carried out by the auditors of the Supreme Audit Agency. Findings: The results showed that disclosure of discontinuity in auditing is possible. Foucault's concept of power/knowledge is able to touch the workings of the profession in producing a discontinuity. The tendency of asymmetry of knowledge of auditor vis a vis auditee, especially in the public sector – as exemplified by Foucault; doctors and their patients - can be a way to focus on forms of discontinuity in producing audit opinions on local government financial statements. Research, Practical & Social implications: A discursive event confronts the auditor vis a vis auditee when an audited local government financial report opinion is produced. The methodology used in this reading is Foucault's philosophy through his conception of discontinuity. Originality/value: The findings proposed the originality in which Foucaldian perspective can be useful to explore the link between local government financial report and discursive events.

Scientific approach to the formation of stakeholder interaction in the innovative economy

The relevance of involving stakeholders in the decision-making process is due to the need to identify, group and classify them based on their circumstances or views on potential business conditions that can be realised, which will allow predicting interaction with stakeholders in conditions of dynamic opportunities. The purpose of the study was to define stakeholder interaction as a normative concept with implementation practice that can stimulate the development of theory and provide practical application in practice. The basis of the formation of a scientific approach to the formation of the interaction of stakeholders in the innovative economy were such methods as structural and comparative analysis, the method of generalisation. A scientific approach to the formation of stakeholder interaction is proposed, which involves an integrated process of their interaction in an innovation network based on dynamic capabilities with elements of model variable analysis. This enables the adjustment of the elements of the innovation network, the nature of relations with stakeholders and promotes the evolution of commitment, relations and knowledge sharing between stakeholders, as well as the adjustment, reflection and adaptation of interaction with stakeholders and consists of: the formation of an information space to define the components of the innovation network and relationships in the process of stakeholder interaction; implementation of the process of interaction of stakeholders in conditions of dynamic opportunities; reasoned choice of management decisions regarding the impact on the interaction of stakeholders. The research findings reflect a stakeholder interaction framework based on a process of identification, organisation and transformation integrated into co-creation and value, innovation network and knowledge sharing. The obtained results can be applied in the practical activities of state authorities and local governments, higher educational institutions, state enterprises, organisations and institutions, private entrepreneurial structures in the formation of intellectual, scientific resources and information technologies, effective use and qualitative improvement of all factors of production, which will contribute development of a new quality of public-state relations

Transparency of local government financial statements: Analyzing citizens’ perceptions

AbstractWorldwide, open data initiatives aim at making information publicly available and transparent. Increasingly, local governments (LGs) are publishing financial statements in order to inform citizens, in their function as both service recipients and resource providers, about the LGs’ financial situation. However, it remains questionable as to whether LG financial statements are appropriate mechanisms of public accountability: it is debated, on the one hand, whether citizens are interested in accounting information, and on the other hand, if they are able to understand the information presented in financial statements. This study is the first of its kind applying the think aloud method to analyze citizens’ perceptions of LGs’ financial statements in a sample of 30 German citizens with diverse socio‐demographic characteristics. The paper explores citizens’ general interest in accounting information and their ability to extract basic financial information from these statements so that increased transparency can be assumed. This explorative study reveals that although citizens demand transparency and financial information, they find it challenging to understand financial statements. Citizens seem to be overwhelmed by the information and call for delegation of the tasks or simplified reporting formats.

Practices of Age-Friendly Cities in Turkey

It is predicted that the proportion of the elderly population in the total population will increase. Technological developments, social state development, and innovations in medical science have increased life expectancy. Central state institutions and local government organizations increase the services and expenditures for the elderly population as a requirement of the social state. The concept of an age-friendly city and its applications have gained importance since the 1980s. Municipalities closest to the public have to produce more services to create more suitable and less dangerous areas for elderly people. Municipalities should ensure the active participation of the elderly population in production and consumption activities. It is thus expected to provide services in the fields of education, infrastructure services, health, accessibility and sports. In recent years, the elderly population in developed countries is relatively higher compared to the total population. For this reason, it is usual for age-friendly cities to increase in number and services in developed countries. In this research, the concept of an age-friendly city will be explained in the context of the silver economy and active old age. The basic features of the age-friendly city will be explained. This paper analyses the services provided in selected cities in the world and Turkey in the context of an age-friendly city.

Formation of the Regional Political Elite of Vinnytsia Region

The article examines the process of regional political elite formation of Vinnytsia region in the context of Ukrainian state formation based on the analysis of the results of national and local elections held in the constituencies of Vinnytsia region, biographies of deputies from the region as well as deputies of Vinnytsia regional and city councils, heads of Vinnytsia regional state administration, heads of district state administrations and district councils of the region. The author provides the definition for the regional political elite and outlines the ways of its set up, offers the model of its modern structure for Vinnytsia region.Also, it was determined that at the beginning of the existence of an independent Ukraine, a key role in the formation of the new regional political elite was played by the people from the «nomenklatura» and former leaders of the Soviet enterprises. The obtained data confirms, that this social group was the main pool of recruitment of heads of Vinnytsia Regional State Administration and District State Administrations of Vinnytsia region until the mid-2000s, and the traditions they introduced into modern political culture influenced the formation of political and economic groups (clans) and the dominance of neopatrimonial relations in the interaction between different actors.As defined, people from different spheres of economic and socio-political life of the region participate in the formation of the modern regional political elite of Vinnytsia region. In particular, they are representatives of the economic elite (business owners, managers of private and state enterprises), party elite, elites of mass media and public organizations, and intellectual elite (heads and employees of science, education, medicine and culture). The tendency to increase the number of business representatives in these authorities while reducing the number of heads of state authorities, local governments and utilities was shown by the example of the Vinnytsia Regional Council of II, III, VII convocations and Vinnytsia City Council of VI and VII convocations; a consistently high level of the number of people from the intellectual elite in the regional and city councils was noted. Special attention is paid to the penetration of media and public sector figures into the power institutions as well as to their influence on the formation of the political agenda of the region.

Implementation of Accrual-Based Government Accounting Standard in Presenting the Government of Bekasi City Financial Statements in Year 2021

This study is aimed to analyze the implementation of Accrual-Based Government Accounting Standard which was regulated by Government Regulation No. 71 of 2010 at Bekasi City Regional Financial and Asset Management Agency in presenting local government financial statements. Primary and secondary data was used in this study. The data used in this study was analyzed with qualitative descriptive method, a suitable method that is also in line with the objective of the study to find out the implementation of Government Accounting Standards on Bekasi City Financial Statements of 2021. The result of this study indicates that Bekasi City Regional Financial and Asset Management Agency has implemented Government Accounting Standards) in presenting 2021 Bekasi City Government Financial Statements. Additionally, Bekasi City Regional Financial and Asset Management Agency also managed to face the challenges of implementing accrual-based government accounting, including accounting system & IT based system, leadership commitment, competent human resources, resistance to change, as well as environment.

Determinants of Mandatory Disclosure for Local Government Financial Statements

This study sought to objectively investigate the impact of local government financial disclosure levels on the amount of income in the municipality, general allocation fund, number of local parliaments, and human development index (LKPD). All financial accounts from local governments in Indonesia make up the study's population. 455 district/city administrations across the island of Sumatra were used as the purposive selection sample for this study from 2017 to 2019. In this work, multiple linear regression analysis with STATA version 16 is used for hypothesis testing. The level of disclosure of LKPD is unaffected by the income level of the municipality or general allocation funds, according to the examination of the data. While having an impact on the level of disclosure of local government financial statements (LKPD) are the number of local parliaments and the human development index. This study offers data on variables that will impact the amount of disclosure in financial statements for local governments. A higher level of disclosure will signify that local governments are managing their finances with a high degree of accountability and openness.