The Influence of Competency and Utilization of

Information System toward Government Financial

Report Quality in Bengkulu Province

Isma Coryanatam, and Aditya Sundawa

Bengkulu University, Bengkulu, Indonesia

Abstract. The purpose of this research was to prove the influence of competence

and the utilization of information systems to the quality of the financial report of

a work unit of the device area in Bengkulu Province. The research method used

is descriptive quantitative. The data used in this research is the primary data ob-

tained from the results of the questionnaire to the spread of financial managers in

36 units of work in the area of Bengkulu Province. The number of samples used

are 114 people. Sampling method used is the census. Methods of data analysis

used was multiple linear regression. From testing of hypothesis variables ob-

tained that competence and the utilization of information systems are effect to

the quality of the financial report of a work unit of the device area in Bengkulu

Province.

Keywords: Competence ꞏ Utilization of information accounting system ꞏ

Government financial report quality ꞏ Bengkulu Province

1 Introduction

Government Regulation (PP) No. 71/2010 concerning Government Accounting Stand-

ards section of the Government Accounting Conceptual Framework (KKAP, Appendix

I: par. 35-40) explains that in order to meet financial objectives, the characteristics of

the quality of financial statements are required, namely: relevant, reliable, comparable,

and understandable

The regional government as the manager of public funds must be able to provide the

necessary financial information that is accurate, relevant, timely, and trustworthy. Lo-

cal governments are required to have a reliable accounting information system, if the

accounting information system that is owned is still weak, then the quality of infor-

mation generated from the system is also less reliable (Mardiasmo, 2005: 31).

The quality of Local Government Financial Statements (LKPD) can be reflected in

the results of audits of the Supreme Audit Board (BPK). The results of the examination

of the reporting on the financial statements are stipulated in the Decree of the BPK No.

4 / K / IXIII.2 / 9/2012 paragraph 13. There are four types of opinions that can be given

by the examiner on the examination of the Regional Government Financial Report

(LKPD), namely: 1). Fair Without Exception (WTP) contains a statement that the fi-

nancial statements present fairly, in all material respects in accordance with Govern-

474

Coryanatam, I. and Sundawa, A.

The Inﬂuence of Competency and Utilization of Information System toward Government Financial Report Quality in Bengkulu Province.

DOI: 10.5220/0010436100002900

In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA 2019), pages 474-482

ISBN: 978-989-758-582-1; ISSN: 2655-9064

ment Accounting Standards (SAP). In accordance with the applicable Public Account-

ant Professional Standards (SPAP), the BPK can provide WTP opinion with explana-

tory paragraphs due to certain conditions so that the examiner must add an explanatory

paragraph in the Inspection Report as a modification of the WTP opinion, 2) Fair With

Exceptions (WDP) containing a a statement that the financial statements present fairly,

in all material respects in accordance with SAP, except for the impact of matters relat-

ing to those excluded, 3). Unreasonably includes a statement that the financial state-

ments do not present fairly in all material respects in accordance with SAP, and 4).

Statement of Refusing to Give Opinion or Not Giving Opinion (TMP) states that the

examiner does not express an opinion on the financial statements.

Government financial reports are public rights that must be given by the government,

both central and regional. Accountability can be interpreted as a form of obligation to

account for the success or failure of the implementation of the organization's mission

in achieving the goals and targets that have been previously determined, through a me-

dia of accountability that is carried out periodically (Stanbury, 2003 in Mardiasmo,

2006). This form of responsibility is stated in the government's financial statements.

To produce financial information that is useful for users, financial statements must

be prepared by financial managers who have competence in the area of regional finan-

cial management and accounting systems (Tuasikal in Desmiyawati, 2014: 164). Com-

petence can be seen from the background of education, training and from the skills

expressed in the implementation of the task. Employees who have no accounting edu-

cation background, do not attend accounting training and do not have adequate

knowledge about accounting will encounter many difficulties and obstacles in the pro-

cess of preparing financial statements (Desmiyawati, 2014).

Based on the background stated above, the problem can be formulated as follows:

1) Does the competence of financial managers affect the quality of OPD financial

statements in Bengkulu Province?

2) Does the use of information systems affect the quality of OPD financial statements

in Bengkulu Province?

1.1 Quality of Financial Statements

As explained earlier, the financial statements are a form of accountability for the allo-

cation of a series of budgets for all activities or programs carried out by regional insti-

tutions / agencies. The financial statements must be of quality in accordance with the

standards required in Government Regulation No. 71 of 2010 namely the fulfillment of

four qualitative characteristics of financial statements. The following four characteris-

tics are the normative measures needed to realize good accounting information on gov-

ernment financial statements. The four sizes are:

1. Relevant. The information contained in it can influence users' decisions by helping

them evaluate past or present events and predict the future, as well as correcting the

results of their evaluations in the past. Relevant information has the following ele-

ments:

a. Benefits of feedback (feedback value). The information presented can give users

the possibility to emphasize a tool to correct their expectations (expectations) in

the past.

The Inﬂuence of Competency and Utilization of Information System toward Government Financial Report Quality in Bengkulu Province

475

b. Predictive benefits (predictive value). The information presented can help users

to predict the future based on past results and current events.

c. Timely (timeliness). Information presented in a timely manner can be influential

and useful in decision making.

d. Complete. The information presented includes all accounting information that

can influence decision making. The information contained in the financial state-

ments is clearly disclosed so that mistakes in the use of the information can be

prevented.

2. Reliable. The nformation in financial statements is free from misleading notions and

material errors, honestly presents all facts, and can be verified. Reliable information

meets the following characteristics:

a. Honest presentation. Information honestly describes transactions and other events

that should be presented or can reasonably be expected to be presented.

b. Can be verified. The information presented in the financial statements can be

tested, and if the test is carried out more than once by different parties, the results

still show conclusions that are not much different.

c. Neutrality. Information is directed at general needs and does not favor the needs

of certain parties.

3. Can be compared. The information contained in the financial statements will be more

useful if it can be compared with the financial statements of the previous period or

the financial statements of other reporting entities in general.

4. Can be understood, namely the information presented in financial statements can be

understood by users and expressed in terms and forms that are tailored to the limits

of understanding of users.

1.2 Competence

In connection with the opinion above, the Head of BKN in Decree Number 46A of

2007 concerning Civil Service Competencies states that competency is the ability and

characteristics possessed by a Civil Servant in the form of knowledge, skills, and be-

havioral attitudes required in the implementation of his official duties, so that the Civil

Servant These civilians can carry out their duties professionally, effectively and effi-

ciently.

Furthermore, Spencer and Spencer (2003) suggested that competence can be meas-

ured from five characteristics, namely:

1. "Motives" is something where a person consistently thinks so that he takes action.

Motives are drives, direct and select behavior towards certain actions or goals and

from others. The indicators are: the desire to earn income, the desire to be respon-

sible, the desire to obtain social status, the desire to establish cooperative relation-

ships, the desire to achieve work performance, the desire to change fate, the desire

to get superiors' praise, the desire to obtain a position, the urge to work on time and

the drive to work with enthusiasm.

2. "Traits" are traits that make people to behave or how someone responds to some-

thing in a certain way, for example self-confidence, self-control, stress resistance,

or hardiness. The indicators are: employee care for others; employee honesty in

working; awareness of problems that occur; emotional attitude; humble; employee

friendliness; to be responsible; said the words and put the public interest first.

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476

3. "Self-Concept" is the attitude and values a person has. Attitudes and values are

measured through tests to respondents to find out how the value (value) that some-

one has, what is interesting for someone to do something. Someone who is consid-

ered to be a "leader" should have leadership behavior so there needs to be a test of

leadership abilities. The indicators: self appearance; diplomacy style; positive atti-

tude; confidence; trustworthiness; work ethics; humorous; ability to control emo-

tions; manners and leadership abilities.

4. "Knowladge" is information that is owned by someone for a particular field.

Knowledge (Knowladge) is a complex competency, scores on knowledge tests often

fail to predict HR performance because these scores fail to measure what knowledge

and expertise should be done at work. Knowledge tests measure the test taker's abil-

ity to have the most correct answers, but cannot see whether someone can do the

job based on the knowledge he has. The indicators: knowledge of administrative

work procedures; knowledge of technical procedures; knowledge of the ins and outs

of work; knowledge of the discipline; knowledge of laws and regulations;

knowledge of audits; knowledge of supervision; knowledge of work standards and

knowledge of sanctions.

5. "Skills" are the ability to carry out certain tasks both physically and mentally. The

indicators are: skills to do work / tasks; employee managerial skills; employee tech-

nical skills; employee social skills; diplomacy skills; Skills cooperation is skills in

using work equipment; decision making skills; administrative skills and the skills

to make work reports.

Hypothesis 1 : The competence of financial managers affect the quality of OPD

financial statements in Bengkulu Province

2 Utilization of Accounting Information Systems

Information technology has now become one of the key factors in the process of deter-

mining an organization's strategic policies (Koeswoyo, 2006). The use of information

technology is a means of supporting or encouraging the organization to achieve its ob-

jectives. The use of information technology can be done effectively if members in the

organization can use the technology properly. Effective use of technology can improve

performance (Harianto, 2011). The effective use of information technology is expected

to produce information in accordance with organizational needs.

One of the important information systems for organizations is the accounting infor-

mation system. Accounting information system is a process that processes financial

data and non-financial data through an information system into information that is used

for decision making (Hall, 2009). The main purpose of accounting is to provide infor-

mation for decision makers. Information system technology will make it easy for ac-

countants to produce financial information that is reliable, relevant, timely, understand-

able, and tested that helps the decision making process of users of financial information.

Through information systems that are supported by information technology in the form

of accounting software and computers, it is expected that accounting information pro-

duced by the organization will be of high quality information.

Hypothesis 2 : The use of information systems affect the quality of OPD financial

statements in Bengkulu Province

The Inﬂuence of Competency and Utilization of Information System toward Government Financial Report Quality in Bengkulu Province

477

3 Research Methods

This type of research is a survey research with a quantitative approach. Umar (2008:

45) mentioned that quantitative design is useful for analyzing how a set of variables

influences other variables and is also useful in experimental research, where the inde-

pendent variables are treated in a controlled manner by researchers to see their effects

on the dependent variable directly.

The population and sample in this study were financial management employees in

the Regional Apparatus Organization (OPD) in Bengkulu Province consisting of

Budget User Authorities (KPA), Financial Administration Officers (PPK), Treasurer of

Expenditures and SIMDA Operators totaling 144 people in 36 OPD ( Bengkulu Prov-

ince Regional Financial Management Agency, 2017). The sample selection in this study

uses the census method. Sugiyono (2016) defines the census as a sampling technique

when all members of the population are used as samples. So, in this study all 144 KPA,

PPK, Treasurers and SIMDA Operators in the OPD in Bengkulu Province were used

as samples.

The type of data used in this study is primary data obtained through questionnaires

(Cooper & Emory, 1995). Questionnaires are "collection techniques carried out by giv-

ing a set of questions or written statements to respondents to answer" (Sugiyono, 2016:

199). The questionnaire was delivered and taken by the researcher himself to the finan-

cial management staff in charge of carrying out the accounting / administration func-

tion, compiling and presenting financial reports to the Regional Organization of Organ-

izations (OPD) in Bengkulu Province. The number of copies of the questionnaire dis-

tributed to each OPD was in accordance with the number of research samples.

Data analysis that will be carried out in this research is multiple regression analysis.

Multiple regression analysis was performed to determine the effect of each independent

variable on the dependent variable (Ghozali, 2016). In line with this understanding,

Sugiyono (2016) states that multiple regression analysis is the pattern of influence of

two sets of independent variables on a set of dependent variables. The multiple regres-

sion equation in this study is as follows:

Y = α + b1KPT + b2PSI + ε

Where :

Y: Quality of financial statements

α: Constants

b1, b2, b3: Regression coefficient

KPT: Competence

PSI: Utilization of information systems

ε: Error term

4 Research Result

The results of the regression analysis are used to test the hypothesis. Hypothesis testing

is done on the effect of competence and the use of information systems on the quality

of financial statements. The results of the regression analysis are summarized in Table

1 below.

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478

Table 1. Regression Analysis Results.

Variable

Value

Coef

Koef (Standard-

ized

)

Standard

Error

t-test Sig.

Competence (X1)

Utilization of Information

stems

(

)

0,334

0,510

0,131

0,157

4,527

7,646

0,000

Correlation of Multiple (R) 0,876

Multiple Determination (R

) 0,768

Adjusted R

0,713

F-count 180,688 0,000

Significance: 0.05 (%)

Source: 2017 Research Results, processed.

Hypothesis testing conducted in this study includes the F test and t test. An expla-

nation of the two hypotheses testing is described below.

1. Test F

From the results of data analysis, the F-calculated value of 180.668 with a significance

value of 0.000 was obtained. If the probability value (

) 0,000 is compared with an

alpha value of 0.05, then the value of

< 0.05. These results indicate that the multiple

regression model obtained from the study is fit, so it is worth continuing on at a later

stage.

2. The Coefficient of Determination (R

)

From the results of data analysis, it is obtained the adjusted multiple coefficient value

(Adjusted R

) of 0.713, which means that variations in the increase or decrease in the

quality of OPD financial statements in the Government of Bengkulu Province are in-

fluenced by competence and information system utilization by 71.3%. While the re-

maining 28.7% is influenced by other factors outside the study.

3. Test t

a. First Hypothesis Testing (H1)

The partial effect test is also done by comparing the probability value (

) with alpha

0.05. If the value

< alpha 0.05, then the independent variable partially influences the

dependent variable. The results of the first hypothesis testing (H1) note that competence

has a significant effect on the quality of financial statements. This is evidenced by the

t-value of 4.527 with a probability value (

) of 0.000. Because the value (

) 0,000 <

alpha 0.05, it is concluded that the second hypothesis formulated in this study is ac-

cepted. The competency that must be possessed by financial managers is competence

in accounting and financial statement preparation, because these competencies support

the preparation of quality financial reports.

b. Second Hypothesis Testing (H2)

The results of testing the third hypothesis (H2) note that the use of information systems

has a significant effect on the quality of financial statements. This is evidenced by the

t-value of 7.646 with a probability value (

) of 0.000. Because the value (

) 0,000 <

alpha 0.05, it was concluded that the fourth hypothesis formulated in this study was

accepted. Effective utilization of SIMDA is able to help financial managers carry out

The Inﬂuence of Competency and Utilization of Information System toward Government Financial Report Quality in Bengkulu Province

479

their duties. Therefore, every financial manager must be able to operate SIMDA

properly and adequately.

5 Conclusion

Based on the results of research and discussion described in the previous chapter, con-

clusions can be summarized as follows:

1. Competence has a positive effect on the quality of regional financial reports. This

result means that, the better the competency of financial managers in their field of

work, the quality of financial reports in the regions will be easily achieved.

2. The use of information systems has a positive effect on the quality of regional finan-

cial reports. That is, the information system in regional financial management

(SIMDA) makes the implementation of regional financial administration faster,

more effective, efficient and able to encourage the creation of quality financial re-

ports.

Research Implications

The results of this study can be considered by the Bengkulu Provincial Government in

improving the quality of OPD financial reports through efforts to increase competence

and utilization of information systems. These efforts include:

1) Placement of financial management employees must be based on special expertise

competencies, such as accounting graduates, economics graduates so that in addition to

carrying out good financial management can also improve the quality of reports pre-

pared. In addition, if you place employees with other competencies, special training

(education and training) regarding regional financial management must be given in ac-

cordance with current standards, so that employees understand the tasks regarding re-

gional financial administration.

2) Information systems such as SIMDA-finance that are used by financial managers

now provide enormous benefits in preparing financial statements. Therefore, any

changes to the SIMDA-financial version must be accompanied by adequate SIMDA

training, so that financial managers can create financial reports in accordance with the

qualitative standards required in SAP.

Theoretically, the results of this study can be a reference for further researchers who

are interested in researching and studying the same problem, so that it enriches the

realm of science.

Research Limitations

The difficulty of meeting respondents is one of the limitations faced by researchers in

the field so that the time to distribute questionnaires is slow. When researchers distrib-

uted questionnaires, some financial managers were carrying out the preparation of quar-

terly reports, so researchers had to wait for respondents' spare time to be able to fill out

the questionnaire.

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A limitation of further research is that questionnaires are not distributed directly by

visiting the respondent's home address. This causes research time and data collection

tends to be long, so the research is not timely.

Suggestion

Based on the limitations of the study that the difficulty of meeting respondents is one

of the limitations faced by the authors in the field so that the time to distribute ques-

tionnaires is slow. Therefore, in subsequent studies for the collection of respondents

must be scheduled in advance, so that the field data collection does not experience dif-

ficulties.

Furthermore, the method for distributing questionnaires by direct delivery to the

home address of the financial manager can be done. This is to optimize the time the

questionnaire is distributed, so that the study is completed on time.

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