HR Competencies as a Key Factor

Oct 13, 2025 by wbrum.org 146 views

The Effect of Application of Government Accounting Standards (SAP), Human Resource Competencies (HR), Utilization of Information Technology and Government Internal Control Systems (SPIP) on the Quality of the Regional Government Financial Statements of Medan City with Organizational Commitment as Moderating Variables

Introduction

The quality of financial statements is a crucial aspect of any organization, including regional governments. In Indonesia, the Medan City Regional Government is no exception. The government's financial statements are a reflection of its financial health and accountability. However, the quality of these statements can be affected by various factors, including the application of Government Accounting Standards (SAP), Human Resource Competencies (HR), Utilization of Information Technology (IT), and Government Internal Control Systems (SPIP). This study aims to examine the effect of these factors on the quality of the Medan City Regional Government's financial statements, with organizational commitment as a moderating variable.

Background

The Medan City Regional Government is one of the largest regional governments in Indonesia, with a population of over 2 million people. The government's financial statements are prepared in accordance with the Government Accounting Standards (SAP) issued by the Ministry of Finance. However, the quality of these statements can be affected by various factors, including the competence of human resources, the utilization of IT, and the effectiveness of internal control systems.

Methodology

This study involved 78 respondents who were financial management officials (PPK) in the Medan City Regional Work Unit (SKPD). The saturated sampling method was applied, so that all respondents (48 people) were involved in the research. Primary data were obtained through questionnaires and analyzed using multiple linear regression methods, F tests, and T tests.

Results

The results of the study showed that the variable implementation of SAP, HR competencies, IT, and SPIP utilization simultaneously had a significant influence on the quality of the financial statements of the Medan City Government. However, partially, only HR competency variables had a significant effect on the quality of financial statements. The application of SAP, IT Utilization, and SPIP did not show a significant effect on the quality of financial statements.

Interestingly, organizational commitment as a moderating variable was only able to moderate the relationship between the effect of the application of SAP and the quality of the financial statements of the Medan City Government. This means that organizational commitment can strengthen or weaken the effect of the application of SAP on the quality of financial statements.

Deeper Analysis

HR Competencies as a Key Factor

The results of the study show that HR competencies are the most significant factor in improving the quality of financial statements. This shows that training and human resource development that focuses on accounting and finance is very important to achieve the quality of good financial statements.

Limited SAP Role

Although simultaneously affects, the application of SAP partially does not show a significant effect on the quality of financial statements. This may be caused by several factors, such as lack of understanding and optimal SAP implementation by PPK-SKPD, or lack of support from leaders in encouraging the application of SAP.

Utilization of IT and SPIP

Simultaneous Utilization of IT and SPIPs Affects, but not partially. This shows the great potential of the use of IT and SPIP in improving the quality of financial statements, but it still needs to be further examined regarding its optimal implementation and utilization.

Organizational Commitment

The role of organizational commitment as a moderating variable is only limited to the effect of the application of SAP. This shows that a strong organizational commitment can encourage the application of SAP which is more effective and has a positive impact on the quality of financial statements.

Practical Implications

Increasing HR Competencies

Medan City Government needs to prioritize training programs and human resource development that focuses on accounting and finance.

Increasing the Application of SAP

Medan City Government needs to evaluate and increase the implementation of SAP in the SKPD. This can be done by providing more comprehensive training, providing a better accounting information system, and involving leaders in encouraging the application of SAP.

Utilization of IT and SPIP

Medan City Government needs to develop a more effective use of IT and SPIP utilization strategies. This can be done by building adequate IT infrastructure, implementing a tighter internal control system, and involving internal auditors in overseeing the use of IT and SPIP.

Increasing Organizational Commitment

Medan City Government needs to build an organizational culture that supports financial accountability and transparency. This can be done by involving all stakeholders in the decision-making process, providing fair rewards and punishment, and creating an effective communication system.

Conclusion

This study shows that improving the quality of the financial statements of the Medan City Regional Government not only depends on the application of SAP, but also requires an active role from human resources, IT, and SPIP, as well as strong organizational commitment. Medan City Government needs to focus on developing human resources, optimizing the use of IT and SPIP, and building an organizational culture that supports financial accountability and transparency.

Recommendations

Based on the findings of this study, the following recommendations are made:

Medan City Government should prioritize training programs and human resource development that focuses on accounting and finance.
Medan City Government should evaluate and increase the implementation of SAP in the SKPD.
Medan City Government should develop a more effective use of IT and SPIP utilization strategies.
Medan City Government should build an organizational culture that supports financial accountability and transparency.

By implementing these recommendations, Medan City Government can improve the quality of its financial statements and achieve its financial goals.
Q&A: The Effect of Application of Government Accounting Standards (SAP), Human Resource Competencies (HR), Utilization of Information Technology and Government Internal Control Systems (SPIP) on the Quality of the Regional Government Financial Statements of Medan City with Organizational Commitment as Moderating Variables

Q: What is the main objective of this study?

A: The main objective of this study is to examine the effect of the application of Government Accounting Standards (SAP), Human Resource Competencies (HR), Utilization of Information Technology (IT), and Government Internal Control Systems (SPIP) on the quality of the Regional Government Financial Statements of Medan City, with organizational commitment as a moderating variable.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the factors that affect the quality of financial statements in regional governments. The findings of this study can be used to improve the quality of financial statements and achieve financial goals in regional governments.

Q: What are the key findings of this study?

A: The key findings of this study are:

The variable implementation of SAP, HR competencies, IT, and SPIP utilization simultaneously had a significant influence on the quality of the financial statements of the Medan City Government.
Partially, only HR competency variables had a significant effect on the quality of financial statements.
The application of SAP, IT Utilization, and SPIP did not show a significant effect on the quality of financial statements.
Organizational commitment as a moderating variable was only able to moderate the relationship between the effect of the application of SAP and the quality of the financial statements of the Medan City Government.

Q: What are the implications of this study?

A: The implications of this study are:

Medan City Government needs to prioritize training programs and human resource development that focuses on accounting and finance.
Medan City Government needs to evaluate and increase the implementation of SAP in the SKPD.
Medan City Government needs to develop a more effective use of IT and SPIP utilization strategies.
Medan City Government needs to build an organizational culture that supports financial accountability and transparency.

Q: What are the limitations of this study?

A: The limitations of this study are:

The study was conducted in a single case, Medan City Government.
The study only examined the effect of SAP, HR competencies, IT, and SPIP on the quality of financial statements.
The study did not examine the effect of other factors that may affect the quality of financial statements.

Q: What are the future research directions?

A: The future research directions are:

Conducting a study in multiple cases to examine the generalizability of the findings.
Examining the effect of other factors that may affect the quality of financial statements.
Conducting a study to examine the effect of SAP, HR competencies, IT, and SPIP on the quality of financial statements in other types of organizations.

Q: What are the practical implications of this study?

A: The practical implications of this study are:

Medan City Government can use the findings of this study to improve the quality of its financial statements.
Other regional governments can use the findings of this study to improve the quality of their financial statements.
The study provides insights into the factors that affect the quality of financial statements, which can be used to improve financial management in regional governments.

Q: What are the contributions of this study?

A: The contributions of this study are:

The study provides insights into the factors that affect the quality of financial statements in regional governments.
The study examines the effect of SAP, HR competencies, IT, and SPIP on the quality of financial statements.
The study provides practical implications for regional governments to improve the quality of their financial statements.