Improvement of financial reporting systems

Oct 13, 2025 by wbrum.org 121 views

The Influence of Local Government Size, Regional Government Wealth, Local Government Type, and Audit Opinion on the Availability of LKPD on Local Government Sites in Regencies/Cities in Sumatra

Introduction

The availability of local government financial statements (LKPD) on official regional government websites is a crucial aspect of transparency and accountability in regional finance management. In Indonesia, the local government financial statements (LKPD) are required to be published on the official website of each local government. However, the availability of LKPD on these websites varies greatly among local governments in Sumatra. This study aims to investigate the influence of the size of the regional government, regional government wealth, local government types, and audit opinion on the availability of LKPD on the official regional government website in districts/cities in Sumatra.

Literature Review

The availability of LKPD on the official website of each local government is a critical aspect of transparency and accountability in regional finance management. The size of the local government, measured based on total regional income, is one of the factors that can influence the availability of LKPD. A larger local government tends to have more resources and infrastructure, which can facilitate the publication of financial statements on the official website. On the other hand, regional government wealth, measured through Regional Original Revenue (PAD), may not necessarily guarantee the availability of LKPD online. Local government types, including districts or cities, may also have different attitudes towards transparency and publication of financial statements. Audit opinion, which can be in the form of Fair with Exceptions (WDP) or Fair without Exception (WTP), may also play a role in influencing the availability of LKPD online.

Methodology

This study uses the logistics regression method with a total sample of 153 data consisting of 119 districts and 34 cities in Sumatra. The dependent variable is the availability of LKPD on the official website of each local government, while the independent variables are the size of the local government, regional government wealth, local government types, and audit opinion.

Results

The results of this study show that the size of the local government, measured based on total regional income, has a positive and significant influence on the availability of LKPD on the official website of each local government. This means that the greater the size of the local government, the greater the possibility of LKPD available on their official website. However, other variables such as regional government wealth, local government types, and audit opinion do not show a significant influence on the availability of LKPD online.

Discussion

The results of this study suggest that the size of the local government is a critical factor in determining the availability of LKPD on the official website. Local governments with high income tend to be more open in presenting their financial statements, which reflect accountability and transparency in financial management. However, regional government wealth, local government types, and audit opinion do not necessarily guarantee the availability of LKPD online. This phenomenon can be explained by various factors, including cultural or bureaucratic factors that affect the attitude of the local government towards transparency and publication of financial statements.

Conclusion

In conclusion, this study finds that the size of the local government has a significant effect on the availability of LKPD on the official website, while other variables such as regional government wealth, local government types, and audit opinion do not show the same effect. Therefore, improvements in terms of transparency and financial reporting systems at the local government level must be the main focus to increase the availability of accurate and timely public information.

Recommendations

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

Improvement of financial reporting systems: Local governments must improve their financial reporting systems to ensure that financial statements are accurate, timely, and transparent.
Increase in information technology infrastructure: Local governments must increase their information technology infrastructure to support public transparency and accountability.
Cultural and bureaucratic changes: Local governments must undergo cultural and bureaucratic changes to adopt a more transparent and accountable attitude towards financial management.
Public participation and oversight: The community must be more active in overseeing and participating in regional finance management to create a more responsive and accountable government.

Limitations

This study has several limitations, including:

Sample size: The sample size of this study is limited to 153 data consisting of 119 districts and 34 cities in Sumatra.
Data collection: The data used in this study is based on secondary data, which may not be comprehensive or accurate.
Methodology: The logistics regression method used in this study may not be the most appropriate method for analyzing the data.

Future Research Directions

Future research directions include:

Investigation of other factors: Other factors that may influence the availability of LKPD on the official website, such as government policies and technological support, must be investigated.
Comparison with other regions: The availability of LKPD on the official website in other regions, such as Java or Bali, must be compared with Sumatra to identify any differences.
Longitudinal study: A longitudinal study must be conducted to investigate the changes in the availability of LKPD on the official website over time.
Frequently Asked Questions (FAQs) about the Influence of Local Government Size, Regional Government Wealth, Local Government Type, and Audit Opinion on the Availability of LKPD on Local Government Sites in Regencies/Cities in Sumatra

Q: What is LKPD and why is it important?

A: LKPD stands for Local Government Financial Statements, which are financial reports that provide information about the financial performance and position of local governments. The availability of LKPD on the official website of each local government is crucial for transparency and accountability in regional finance management.

Q: What are the factors that influence the availability of LKPD on the official website?

A: The size of the local government, regional government wealth, local government types, and audit opinion are the factors that influence the availability of LKPD on the official website.

Q: How does the size of the local government affect the availability of LKPD?

A: The size of the local government, measured based on total regional income, has a positive and significant influence on the availability of LKPD on the official website. Local governments with high income tend to be more open in presenting their financial statements.

Q: Does regional government wealth guarantee the availability of LKPD online?

A: No, regional government wealth does not guarantee the availability of LKPD online. Other factors, such as cultural or bureaucratic factors, may affect the attitude of the local government towards transparency and publication of financial statements.

Q: What is the role of audit opinion in influencing the availability of LKPD?

A: Audit opinion, which can be in the form of Fair with Exceptions (WDP) or Fair without Exception (WTP), may play a role in influencing the availability of LKPD online. However, the results of this study show that audit opinion does not have a significant influence on the availability of LKPD.

Q: What are the implications of this study for local governments?

A: The findings of this study suggest that local governments must improve their financial reporting systems and increase their information technology infrastructure to support public transparency and accountability.

Q: What are the recommendations for improving the availability of LKPD on the official website?

A: The recommendations for improving the availability of LKPD on the official website include:

Improvement of financial reporting systems: Local governments must improve their financial reporting systems to ensure that financial statements are accurate, timely, and transparent.
Increase in information technology infrastructure: Local governments must increase their information technology infrastructure to support public transparency and accountability.
Cultural and bureaucratic changes: Local governments must undergo cultural and bureaucratic changes to adopt a more transparent and accountable attitude towards financial management.
Public participation and oversight: The community must be more active in overseeing and participating in regional finance management to create a more responsive and accountable government.

Q: What are the limitations of this study?

A: The limitations of this study include:

Sample size: The sample size of this study is limited to 153 data consisting of 119 districts and 34 cities in Sumatra.
Data collection: The data used in this study is based on secondary data, which may not be comprehensive or accurate.
Methodology: The logistics regression method used in this study may not be the most appropriate method for analyzing the data.

Q: What are the future research directions?

A: The future research directions include:

Investigation of other factors: Other factors that may influence the availability of LKPD on the official website, such as government policies and technological support, must be investigated.
Comparison with other regions: The availability of LKPD on the official website in other regions, such as Java or Bali, must be compared with Sumatra to identify any differences.
Longitudinal study: A longitudinal study must be conducted to investigate the changes in the availability of LKPD on the official website over time.