Nico Hardiyanto, Nurmala Ahmar, Endang Etty Merawati
Universitas
Pancasila, Indonesia
E-mail: [email protected],
[email protected], [email protected]
|
KEYWORDS Human Resource Competence, Financial Accounting
Systems for Non-profit Organizations, Internal Control Systems |
ABSTRACT The purpose of this research was to assess the elements that influence
the quality of non-profit financial statements and the moderation of
voluntary disclosures on the Internet Financial Report. " Human Resource
Competence, Implementation of Financial Accounting Standards for Non-Profit
Organizations, Internal Control Systems, and Accounting Information
Technology Use on the Quality of Financial Reports of Non-Profit
Organizations with Voluntary Disclosure of Internet Financial Reports as
Moderating Variables,". The population in this research is all non-profit
organizations in the form of NGOs or NGOs in Indonesia. The research sample
is focused on NGOs and NGOs registered with the Ministry of Foreign Affairs
until 2021, as well as partners from donor agencies USAID and AUSAID. The
primary data sampling technique was convenience sampling, where respondents
who were willing to fill out the questionnaire were sampled. Distribution of
online questionnaires and surveys through private domains obtained 90
respondents from the financial staff of non-profit organizations that were
willing to participate in this research. The data was processed using a
multiple linear regression analysis. The results of this research indicate
that the influence of human resource competence, the implementation of
financial accounting systems for non-profit organizations, the implementation
of internal control systems, and the utilization of accounting information
technology affect the quality of financial reports of non-profit
organizations, while voluntary disclosure of internet financial reports
strengthens the relationship between the utilization of accounting
information technology and report�
quality. Finance for nonprofit organizations. |
INTRODUCTION
Non-profit
organizations or better known as non-profit organizations are defined as organizations
whose purpose is not to seek profit for their owners, which usually aims to
provide services to the community. There is a difference in purpose between a
for-profit organization and a Nonprofit organization. Profit organizations
focus on increasing profits for their business operations while Non-profit
organizations focus on improving services.
According to (Andreasen & Kotler, 2003), non-profit organizations can be classified
as follows : a. Governmental bodies established by Law and authorized to
provide services and collect taxes, b. Private or independent sector non-profit
organizations that typically operate as tax-exempt organizations, but are
organized outside the authority of the government and legislation. The
organization may be engaged in education, humanitarian services, commerce, or
professional societies, c. Quasi-governmental private organizations formed with
legislative authority and usually accompanied by limited monopolies to provide
services or provide certain necessities to groups of people.
Non-profit
organizations in Indonesia are growing rapidly. Many of them are Foundations
whose establishment is for the purpose of activities in the social, religious,
and humanitarian fields, Associations whose establishment objectives are
in accordance with the goals of members and Institutes
whose establishment objectives are in the social, cultural, educational and
humanities fields. Apart from that, it can also be classified from the source
of the organization's establishment, there are those from within the country
and those from abroad.
Non-profit
organizations, such as NGOs, act as entities that help the government, which
focuses on efficiency and in its performance serving the people in Indonesia.
The advantages of the Nonprofit sector have grown as a result of the phenomenon
of globalization of the 20th century. The growth of Nonprofit organizations has
attracted international attention to support most of the social, educational,
cultural, and well-being needs of the people. Nonprofit Organizations are civil
society groups that promote answers to these social problems. (Widiantara, 2020)
The Ministry of
Law and Human Rights (Kemenkumham) claims that
the number of non-governmental organizations (NGOs) in Indonesia is increasing
every year. The number of NGOs in Indonesia continues to grow, reaching 390,293
organizations. Meanwhile, according to the Ministry of Foreign Affairs (MFA)
there are 53 foreign NGOs registered until 2021.
In Indonesia, the
recording of accounting information in the public sector can be defined as a
technical and analytical mechanism implemented by the management of non-private
funds in higher institutions and ministries, central government work units
(SKPP), local government work units (SKPD), non-lab NGOs/NGOs, non-private and
private sector cooperation projects, social foundations, and NGOs, BUMDs, SOEs
and local governments.
Financial
statements are records of company financial information during an accounting
period that can be used to assess the performance of a SAK company (2012). The
purpose of financial statements according to the Financial Accounting Standards
of the Indonesian Institute of Accountants 2012 is to provide information about
the financial position, performance, and changes in the financial position of a
company that can be used by many people to make decisions. Financial
statements, on the other hand, may not necessarily include all the information
that a user may need to make economic decisions because they generally
represent financial impacts and previous events and are not forced to do so.
Financial
statements are designed to provide information about a company's financial
condition, performance, and cash flow that most consumers can use to make
economic decisions. Financial statements also serve to show the management of
the resources entrusted to them.
Government
Regulation (PP) number 71 (2010) states that to meet the quality standards of
the information contained in the financial statements, the financial statements
of the public sector organization must at least have characteristics:
relevant, reliable, comparable and understandable.
The development of
non-profit organizations NGOs/NGOs is marked by the emergence of the phenomenon
of increasing accountability demands, along with their role in helping the
government and society. As is the case today where the government cooperates
with NGOs and other non-profit organizations in overcoming the COVID 19
pandemic as shown by the circular letter of the Ministry of Home Affairs no.
440/5538/SJ of 2020 related to handling COVID 19 through the procurement of
type III self-managed goods and services whose objectives are; (1) Assist the
government in improving the quality, accountability, governance and range of
services, (2) increase community participation in the development process, (3)
improve the effectiveness and efficiency of NGO performance, (4) improve the
technical capabilities of NGO human resources.
�Accountability and transparency are important
in accounting for resources entrusted by stakeholders or funders / donors.
Public accountability can be interpreted by the obligation of the trustee to
observe, present, report, and disclose all activities and activities that are
his responsibility to the trustee who has the right to hold him accountable. (Mardiasmo, 2009) HR readiness in
non-profit NGOs/NGOs is important in aligning the demands of these needs. The
lack of human resources who have the required capacity is a challenge for
NGOs/NGOs to be able to manage the mandated funds and the work plans owned by
stakeholders can be carried out properly.
Another phenomenon
of the global development of non-profit NGOs/NGOs is the condition that NGOs
can be more vulnerable to fraud because they have fewer resources available to
help prevent and recover from losses due to fraud. The sector is particularly
vulnerable due to lack of oversight and lack of good internal control. (the ACFE, 2020)
ACFE� (2020) in its
report " Report To The Nations, 2020 Global Research On Occupational Fraud
and Abuse" released 191 cases of fraud in non-profit organizations with
the smallest face value of $ 75,000 and an average loss of $ 639,000.
Report To The Nations, 2020, Fraud in non-profit
The number of
cases of fraud that occur in Non-profit organizations, according to ACFE 2020
data in the Report to The Nations 2020 shows that
fraud cases were recorded as many as 191 cases with corruption cases as much as
40% and followed by billing cases and reimbursement cases. The losses incurred
are not as large as commercial organizations or companies, but this amount is
enough to make non-profit organizations collapse due to limited financial
resources.
Some weaknesses in
nonprofits make nonprofits vulnerable to the risk of fraud. Internal control is
the main causal factor mentioned in the report. Some nonprofits have limited
employee resources because most organizations accept employees from the
organization's corresponding interests and visions. Thus
internal control is carried out by employees who are not their field as well as
inexperienced.
The demands for
the fulfillment of financial accounting standards used, which are one of the
measures of accountability for Nonlaba financial
statements, are a phenomenon that must be answered coupled with the uneven
application of accounting standards for non-profit accounting standards in
accordance with non-profit accounting standards, namely ISAK 35. This is in
line with the previous research (Setiadi, 2021) which has the
results of research that not all non-profit organizations in Indonesia use ISAK
35 because of the lack of knowledge about financial statement standardization.
Nonlaba financial
statements previously regulated in PSAK 45 consisting of paragraphs 01 to 36
and have now been replaced with ISAK no. 35, where the content of this
statement is a special standard for Non-profit organizations.
PSAK 45 was first
published on December 23, 1997 by DSAK IAI, then revised on April 8, 2011. PSAK
45 is the main reference for non-profit organizations that are not
profit-oriented such as foundations or NGOs in the presentation of financial
statements. In PSAK 45 types of financial statements of Non-Profit
organizations consist of 4 types, namely Financial Position Statements (Balance
Sheet), Activity Reports, Cash Flow Statements, and Notes to Financial
Statements, and additional or alternative reports, namely the Net Asset Change
Report.
The process of
converting SAK to IFRS, resulted in industry-based Financial Accounting
Standards (SAK) having to be revoked because IFRS-based SAK regulates all
accounting standards based on the principle of "transaction based"
not "entity based". So the SAK governing the
entity must be revoked including PSAK 45. The revocation of PSAK 45 through
PPSK No. 13 which began with the issuance of the Exposure Draft (ED) dated
September 26, 2018. On April 11, 2019 DSAK - IAI officially endorsed PPSAK 13
and effective January 1, 2020 PSAK 45 may not be used again. The
application of ISAK 35 in place of PSAK 45 which is not yet comprehensive is a
phenomenon that must be answered in this study.
Empirically, the
quality of financial statements is influenced by the competence of human
resources, the application of a good accounting system, the application of
internal control and the use of information technology as a medium for
delivering accountability from the financial reports made. This is supported by
research conducted by Rohmah, Askandar,
and Kartika Sari (Rohmah et al., 2020), Agustina, Hartono
and Firdausi (Agustina� et al., 2020),
Tampubolon and Hasibuan (Tampubolon
& Hasibuan, 2019), Gustika Aramel (Gustika Armel, 2017) �conducted on several SKPDs in Indonesia. While empirically
it also proves that these variables do not affect the quality of financial
statements, this is evidenced by the research conducted by Sambuaga (Sambuaga, 2020), Wijayanti and Handayani (1.Wijayanti & 2.Handayani, 2017),
Alhajjriana, Nor, and Wijaya (Alhajjriana et al., 2018), Latjandu, Lintje, and J.Tinangon (Latjandu et al., 2016) � which was carried out on several SKPDs in
Indonesia.
Some of these
empirical studies underlie the research gap in this study, including those
conducted by Sambuaga (Sambuaga, 2020), in his research he
examined the internal control system of the quality of financial statements
with the competence of human resources as a coding variable. The study used a
survey method using a sample of civil servants in local government organizational
units. The sampling method in his research is purposive sampling. The results
showed that the internal control system in the elements of the control
environment had no effect and did not have a significant effect on the quality
of financial statements. However, the competence of human resources can
moderate the internal control environment of the quality of financial
statements. The reverse result was found that the competence of human resources
could not moderate internal control activities on the quality of financial
statements. The results showed that the internal control system in the elements
of the control environment had no effect and did not have a significant effect
on the quality of financial statements while the elements of control activities
had a positive and significant effect on financial statements. However, the
competence of human resources can moderate the internal control environment of
the quality of financial statements.
Wijayanti
and Handayani (2017) tested the effect
of human resource competence and the implementation of accrual-based accounting
on the quality of regional financial statements in the Madiun
Regency Government. The data used by researchers in this study is primary data.
The data source used is the results of filling out the questionnaire by the
respondents. The respondents in this study were the head of the office, the
head of the office and the head of the finance section at the SKPD of the Madiun Regency Government. Of the 39 questionnaires
distributed, only 30 returned and could be processed. The results showed that
the competence of human resources did not have a positive effect on the quality
of regional financial statements due to the significant level. Meanwhile, the
implementation of accrual-based accounting has a positive effect on the quality
of regional financial statements.
Alhajjriana, Nor, and Wijaya (2018) in
their research to determine the effect of local revenues, the number of
legislators, and the number of residents on the internet financial reporting of
local governments , and the
influence of internet financial reporting of local governments on the quality
of accountability of regional financial statements. The results of his research
show that regional expenditures affect the internet financial reporting of
local governments, while regional income, the number of legislators and
population have no effect on the internet financial reporting of local
governments, and the internet financial reporting of local governments does not
affect the quality of regional financial reports.
Latjandu, Lintje, and J.Tinangon (2016) conducted
a study that aimed to analyze the effect of organizational commitment, resource
competence, utilization of information technology, and the effectiveness of
internal control on the quality of government financial statements in the
Talaud Islands Regency Government. The sample in this study was the Chief and
Accounting Staff of the Talaud Islands Regency Government as many as 64
respondents. The results of this study show that organizational commitment, the
use of information technology, and the effectiveness of internal control have a
significant effect on the quality of government financial reports in the Talaud
Islands Regency Government and the competence of human resources has an effect
but not significantly on the quality of government financial reports in the
Talaud Island Regency Government.
Based on the
background description, the research submitted is
INTERNET FINANCIAL REPORT AND
DETERMINANTS OF THE QUALITY OF FINANCIAL STATEMENTS OF NON-PROFIT ORGANIZATIONS
This research
specializes in NGO Nonprofit organizations. The selection was carried out with
the consideration that research related to the quality of financial statements
at this time, was mostly carried out in central government institutions and
blood government. Meanwhile, the number of NGOs in Indonesia is increasing day
by day and the need for accountability from the quality of the NGO's financial
statements is the main issue for donors and stockholders who are interested.
The purpose of
this study is to describe the factors that affect the quality of financial
statements in Non-Profit NGOs / NGOs and to find out whether voluntary
disclosure of Internet Financial Reporting has a relationship with
improving the quality of financial statements of profit mom organizations.
Thus, the theoretical benefits of research can add scientific insight in the
field of financial reporting and human resources in the public sector and especially
to non-profit NGOs / NGOs in Indonesia and also increase the confidence or
trust of donor institutions in NGOs / NGOs in Indonesia.
RESEARCH METHODS
Research is a process of looking for something systematically for a long
time using the scientific method and the rules that apply to be able to produce
a good research. To be able to produce good research,
a research design is needed to support and provide systematic research results.
Research design is all the necessary processes in the planning and conduct of
research, which helps the research in the collection and analysis of data.
The research design according to Mc Millan in Ibn Hadjar is a plan and
structure of investigation used to obtain empirical evidence in answering
research questions. Another definition says that a research design is a plan or
design made by the researcher, as a target for the activities to be carried
out.
This research is a quantitative study, namely the relationship between
variable X and Y by conducting a hypothesis test. This type of research data is
primary data, namely research data obtained or collected through conviniance sampling techniques where respondents are
willing to fill out a questionnaire that is used as a sample. Sempel of this study are employees who work in the finance,
accounting, sub-award / grant departments of non-profit organizations NGOs /
NGOs. The proposed data analysis method is to use Moderated Regression
Analysis (MRA).
The type of data used in this study is primary data. Questionnaire survey
is a survey method using a research questionnaire. A questionnaire is a set of
questions that are systematically and standardly arranged so that the same
question can be asked to each respondent. Questionnaires are an effective data
collection tool because they can obtain standardized data that can be accounted
for for the purposes of a thorough analysis of the
characteristics of the population under study. (Suprapto, 2000)
Sampling is carried out using a convenience sampling technique where
respondents who are willing to fill out a questionnaire are used as samples.
The distribution of questionnaires online with online surveys through private
domains with
https://maksiup-26.com/ addresses considering that data collection was carried out during the COVID-19
pandemic in Indonesia. By using an online survey data base, questions can be
directly stored and generated based on variable categories and respondents'
answer results. For respondents who have difficulty in filling out the online
survey, assistance will be provided through virtual meetings such as zoom
meetings, google meet or webex.
The questionnaire in this study used a likert
scale with 5 (five) points in the criteria, namely 1 (STS = Strongly Disagree),
2 (TS = Disagree), 3 (N = Neutral), 4 (S = Agree), and 5 (SS = Strongly Agree).
The likert scale provides several answer choices that
are useful for measuring the attitudes, perceptions or opinions of respondents
or groups about their views on an event or social phenomenon (Pranatawijaya et al., 2019). The variables in the
questionnaire are described in the indicator items of the questions that will
be answered by the respondent by choosing one of the criteria on the likert scale that corresponds to the respondent's
perception.
The data source used in this study is primary data. This data is obtained
by filling out questionnaires directly by the staff of the financial and grant
administration department.
RESULTS AND DISCUSSION
This study used primary data conducted with convenience sampling
techniques where respondents who were willing to fill out the questionnaire
were used as samples. Dissemination of questionnaires online with online
surveys through private domains with https://maksiup-26.com addresses.
Respondents in this study were employees who carried out the functions of
Accounting, Finance, Treasurer, Budgeting, Accounts Receivable, Grants or Sub
Awards to non-profit organizations in Indonesia.
Researchers distributed questionnaires to the WhatApps
Group network
of international nongovernmental
organizations listed in the MFA as well as non-profit organizations partnering
with the American government international organizations USAID and Australia
AUSAID. The questionnaire was distributed to 56 non-profit organizations, which
were willing to fill out a questionnaire of 92 respondents, and the
questionnaire processed for data analysis was 90 questionnaires while the other
2 questionnaires were outlier data so that researchers did not use these data
so as not to cause bias in the research results. The characteristics of
respondents in this study are as follows:
Characteristics of
Respondents By
Gender
The gender of the respondents was used to determine gender involvement in
the financial management of non-profit organizations. A sample of the study for
90 respondents by gender can be seen in the following table:
Table�
1
Repondent Demographics By Gender
|
Gender |
Sum |
Presented |
|
Man |
32 |
36% |
|
Woman |
58 |
64% |
|
Total |
90 |
100% |
Source: Primary Data processed, 2021
The table shows that most of the respondents who participated in this
study were female, namely 58 respondents (64%), while respondents who were male
were 32 people (36%).
Characteristics of Respondents
Based on Respondent's Age
The age of the respondents is expected to describe the level of
experience. The study sample for 90 respondents by age can be shown in the
following table:
Table 2
Repondent Demographics By Age
|
Kind |
Sum |
Presented |
|
24 � 30 years old |
11 |
12% |
|
31 � 40 years old |
36 |
40% |
|
41 � 50 years old |
32 |
36% |
|
>50 years |
5 |
6% |
|
Not Giving an Answer |
6 |
7% |
|
Total |
90 |
100% |
Source: Primary Data processed, 2021
Based on Table 2, most of the respondents who participated in this study
were respondents aged 31 � 40 years, which is 40%.
Characteristics
of Respondents By
Education Level
The respondent's education level is expected to be used as an indicator
to determine the level of capacity of individuals participating in financial
management in non-profit organizations. The study sample of 81 respondents seen
from the level of education can be shown in the following table:
Table 3
�Repondent
Demographics By Education Level
|
Education |
Sum |
Presented |
|
High School / Vocational School |
5 |
6% |
|
Diploma |
4 |
4% |
|
S1 |
69 |
77% |
|
S2 |
12 |
13% |
|
Total |
90 |
100% |
Source: Primary Data processed, 2021
Judging from the level of education, the majority came from S1 graduates,
namely 69 people (77%). This means that the mindset and capacity of the
financial manager are sufficient to be able to carry out the task of being a
non-profit organization financial manager with the skills and abilities they
have in accordance with the level of education they have. Then 4 diploma
graduates (5%), 5 high school / vocational school graduates (6%) and the
remaining 12 people (13%) have the last S2 education.
Characteristics of
Respondents By
Field of Work
The description of the research sample of 90 respondents based on the
Field of Work can be seen in the table below:
Table 4
Repondent Demographics By Field of Education Level Employment
|
Field of Work |
Sum |
Presented |
|
Accounting, Finance and or Treasurer |
67 |
74% |
|
Pengangaran |
4 |
4% |
|
Grant / Sub Award |
19 |
21% |
|
Total |
90 |
100% |
Source: Primary Data processed, 2021
The fields of work of respondents who participated in this study, were
the Field of Work of Financial Accounting and or Treasurer as many as 67 people
(74%), Grant / Sub Award as many as 19 people (21%), and Disbursement as many
as 4 people (4%).
Characteristics of
Respondents Based on Length of Service
A person's length of work or experience is expected to be a consideration
for capacity assessment in completing work. From a sample of 90 respondents can
be described in the following table:
Table 5
Characteristics of
Respondents Based on Length of Service
|
Length of
Service |
Sum |
Presented |
|
0
- 5 years |
23 |
26% |
|
6
- 10 years |
11 |
12% |
|
>
10 years |
56 |
62% |
|
Total |
90 |
100% |
From the table, it can be seen that the majority of respondents have
experience working for more than 10 years, namely 56 people (62%), working for
0-5 years at the same age as 23 respondents (26%) and 6-10 years as many as 11
people (12%)
This study aims to test the Determinants of Financial Statement Quality
of non-profit organizations with the disclosure of Internet Financial Report as
a moderation variable.
The Effect of Human Resource
Competence on the Quality of Financial Statements of non-profit organizations
Competence can be described as a person's ability to produce something at
a satisfactory level according to established standards. A person who has
competence will work with his knowledge and skills, so that he can work
quickly, easily, take high initiative so that he can easily solve the problem
at hand and finally can provide the agreed benefits.
Human resources are vital in an organization because they are a key
component to the success of non-profit organizations' activities and
performance. Therefore, non-profit organizations need to improve the competence
of existing human resources to guarantee the profitability of their operations.
The competence of human resources is also assessed on a person's knowledge,
ability, and attitude in carrying out their responsibilities. The failure of
the organization's human resources to understand and apply accounting
principles can result in problems in the preparation of financial statements.
From the results of testing hypothesis 1 (H1) obtained a calculated t
value greater than t table with a significance value of less than 0.05.� This explains that Human Resource Competence
affects the Quality of Financial Statements. This study shows a positive
direction, so that the higher the value of Human Resource Competence, the
higher the Quality of Financial Statements of non-profit organizations.
The results of
this study are in line with previous research conducted by:
1. (Yosefrinaldi, 2013) �which states that Human Resource Capacity has a positive effect on the
Quality of Local Government Financial Statements.
2. In addition, the results of this study also support the research results
of (Ayu Enny
Kiranayanti & Made Adi Erawati. Ni, 2016) which states that Human Resource Competence has a positive effect on the
Quality of Financial Statements of the Regional Government of Badung Regency, Bali.
3. (Yendrawati, 2013) �which states that the capacity of
human resources has a positive effect on the quality of information on local
government financial statements in the Yogyakarta Special Region Social
Service.
4. (Wahyuni et al.,
2018) �which states that the competence
of human resources affects the quality of financial statements.
5. (Aprilia Safitri et
al., 2019) �which states that partially the
competence of human resources has a positive and significant effect on the
quality of financial statements.
Employees who have high Human Resource Competence will be able to
understand accounting logic well and then use their knowledge and understanding
in preparing financial statements in accordance with accounting principles and
established rules so that the resulting financial statements are free from
misrepresentation (reliable) and of high quality. In addition, experienced human
resources will be able to work quickly, so that the financial statements
produced can be timely (relevant) and of high quality.
Based on descriptive data showing that Human Resource Competence in
non-profit NGO organizations is high, most respondents' answers are on a scale
of 4 to 5. Based on respondents' assessment data, the average affirmative and
strongly agreeable answers are for indicators of behavior and experience. This
shows that the knowledge and ability of respondents in the field of accounting comes
from training and experience. With their knowledge and abilities and behaviors,
most respondents feel that they can carry out their duties and are responsible
in managing or compiling quality financial reports of non-profit organizations.
In this study, the number of respondents who had an S1 education
background was more than others, namely 69 respondents, this shows that the
majority of respondents have the ability to do good business processes, have
good accounting skills, are able to help and provide correct financial
information that is useful for management and external parties. This is also
supported by most respondents, working in the Accounting, Finance and Treasurer
departments which enriches the respondent's ability from the respondent's experience
factor, so that creating quality Financial Statements is not a difficult job.
Effect of Financial
Accounting System Implementation on the Quality of Financial Statements of
non-profit organizations
In the development of financial management of non-profit entities, it is
very necessary to have a clear financial accounting basis or standard as a
guide in financial reporting of non-profit entities. Financial accounting
standards on financial reporting of non-profit entities continue to improve.
Starting from the making of the Financial Accounting Standard Statement (PSAK)
No. 45 concerning Financial Reporting of Non-Profit Organizations which was
approved in a meeting of the Financial Accounting Standards Committee on
December 20, 1997 and was ratified by the Central Board of the Indonesian
Institute of Accountants on December 23, 1997. Then there is the Revision of
PSAK No. 45 which has been ratified by the Financial Accounting Standards Board
(DSAK) on April 8, 2011. Until now it has been changed to Interpretation of
Financial Accounting Standards (ISAK) No.35 concerning the Presentation of
Financial Statements of Non-Profit Oriented Entities authorized by the
Financial Accounting Standards Board on September 26, 2018 and entered into
force for the period of the financial year beginning on or after January 1,
2020.
The results of hypothesis testing 2 (H2) show that the application of the
Financial Accounting System affects the quality of financial statements of
non-profit organizations. This can be proved by a calculated t value greater
than t of the table with a significance value of less than 0.05. In this study,
it has a positive direction, indicating that the higher the application of the
Financial Accounting System, the higher the quality of financial statements of
non-profit organizations.
The results of this study
are in line with previous research conducted by:
1. (Darwanis et al.,
2016) �which states that the government
accounting system has a positive and weak effect on the quality of the Aceh
government's financial statements.
2. (Murpi, 2016) �which states that the
implementation of the Local Government Accounting System (SAKD) has a positive
effect on the quality of information on local government financial statements
in Central Lombok Regency
3. (Sanjaya, 2016) �which states that the regional
financial accounting system has a positive and significant effect on the
quality of local government financial statements in Kampar Regency.
4. (Farida et al., 2021)
�which is able to prove that the
non-profit financial accounting system has a positive and significant effect on
the quality of financial statements of non-profit organizations
5. Permadi (2013) which states
that the regional financial accounting system affects the quality of local
government financial statements produced.
With the financial accounting standards of non-profit organizations, the
use of grant funds can be optimized by carrying out good financial recording,
processing and reporting. The inter-achievement of financial accounting
standard 35 (ISAK 35) is a derivative of PSAK 01 paragraph 5 related to
non-profit oriented entities where ISAK 35 is a reference or standard in making
financial statements for non-profit organizations in Indonesia, one of which is
NGOs. In ISAK 35 there are 5 components, namely the financial position
statement, comprehensive income report, net asset change report, cash flow
statement, notes to financial statements.
In relation to the accounting standards of ISAK 35, based on the results
of respondents' answers and observations of the annual report of non-profit
organizations presented through the internal website, it shows that the
presentation of financial statements in the results of this study does not
refer to ISAK 35 but refers to other financial accounting standards depending
on the donor institution for each non-profit organization. For INGO affiliated
non-profit organizations, as many as 62 non-profit organizations use IAS or US
GAAP, while 28 local NGO non-profit organizations still use PSAK 45.
The presentation of financial statements based on applicable financial
accounting standards can provide good quality financial statements and can meet
the needs of users of these financial statements, especially for donor
institutions.
The voluntary disclosure of the Internet Financial Report provides significant value to the application
of SAK. IFR is one of the reporting activities that can be accounted for to
financial information users who expect information disclosure, information
accuracy, reliability of information and timely.
The Effect of SPI on the Quality of
Non-Profit Organizations' Financial Statements
Internal control is a process, influenced by the board of directors,
management entities and other personnel, designed to provide reasonable
certainty related to the achievement of the following category goals:
effectiveness and efficiency of operations, reliability of financial reporting,
and observance of applicable laws and regulations.
According to the Committee of Sponsoring organizations of the Treadway
Commission (COSO), the dimensions for measuring the internal control system
include (1) the control environment, (2) risk assessment, (3) control
activities, (4) information and communication, and (5) internal control
monitoring.
The results of hypothesis 3 (H3) testing show that SPI affects the
Quality of Financial Statements of non-profit organizations. This is indicated
by a calculated t value that is greater than t table and a significance value
of less than 0.05. This study has a positive direction that shows that the
higher the SPI, the higher the Quality of Financial Statements of non-profit
organizations. The coefficient of determination (r Square) of 0.639 indicates
that 63.9% of the quality of financial statements of non-profit organizations
is influenced by SPI, while the remaining 36.1% is influenced by other
variables outside this study.
The results of this study are in line with previous research conducted
by:
1. Neco Fransiska, Aris Eddy Sarwono, and
Dewi Saptantinah Puji Astuti (2016) who stated
that the existing part of the weaknesses of the internal control system such
as: weaknesses in the accounting and reporting control system, weak control
system for the implementation of budget and expenditure revenues, and
weaknesses in the internal control structure have a joint influence on the
quality of financial statements. The existence of this simultaneous influence
is shown in the results of statistically processed analysis, which shows a
significant value of 0.000
2. Yusniar, Darwanis, Syukriy Abdullah (2016)
who stated that internal control has a positive and weak effect on the quality
of the Aceh government's financial statements.
3. Imelda (Latjandu et al.,
2016), Lintje Kalangi, Jantje J. Tinangon (2016) Which states that on the
effectiveness of internal control, thitung = 2.605 > ttabel = 2.00100 so
that the effectiveness of internal control has a significant effect on the
quality of local government financial statements in the Talaud Islands
district.
4. Khoirina Kencana Ningrum
(2018) who stated that the internal control system has a significant effect on
the quality of local government financial reports in Kebumen
district.
5. Arlia Sari Artana (2016) Which states that the internal control system
has a significant effect on the quality of local government financial
statements.
The Internal Control System is a process designed by management to
provide adequate assurance or confidence in the achievement of organizational
goals through effective and efficient activities, reliability of financial
reporting, security of organizational assets, and compliance with laws and
regulations. An effective Internal Control System will protect the organization
from human weaknesses, reduce errors and irregularities that will occur, so
that the information generated in the financial statements can meet the
qualitative characteristics of financial statements and will increase the trust
of stakeholders.
Indicators for measuring SPI variables are based on the 2013 COSO, namely
the control environment, risk assessment, control activities, information and
communication and monitoring or monitoring. Based on respondent answer data,
the average respondent answered affirmatively and strongly agreed with each
assessment indicator, which means that the five elements of control have been
implemented properly and effectively. Meanwhile, based on the assessment of ifr voluntary presentation factors, it provides more value
to the accountability of the implementation of the Internal Control System.
Through public oversight, ensuring nonprofits can account for their work, the
goals of their organization and even more the funds entrusted to the
organization. With IFR, non-profit organizations can report accountability for
their financial performance, operational performance so that this can be
assured that Most of the non-profit organizations in this study already have a
good internal control system.
Effect of Utilization of
Accounting Information Technology on the Quality of Financial Statements of
non-profit organizations
Another factor that can affect the quality of financial statements is the
use of accounting information technology. As we know that the rapid progress
and development of information needs, especially technology in the era of
globalization, has had a significant influence on the application of accounting
information systems in an organization. Through speed, flexibility and
integrity the accuracy of information can be generated. An accounting
information system can be said to be effective if the system is able to produce
information that is acceptable and able to meet the expectations of information
in a timely, accurate,
and reliable manner.
The results of hypothesis 4a (H4a) testing show that the use of
accounting information technology can affect the quality of financial
statements of non-profit organizations. This can be proved by a calculated t
value greater than t table (8.963 < 1.988) with a significance value smaller
than 0.05 (0.000 < 0.05). The value of the regression coefficient of 0.694
which has a positive direction indicates that the higher the use of information
technology, the higher the Quality of Financial Statements of non-profit organizations.
The coefficient of determination (r Square) of 0.477 indicates that 47.7% of
the quality of financial statements of non-profit organizations is influenced
by the use of accounting information technology, while the remaining 52.3% is
influenced by other variables outside this study.
The results of this study are in line with previous research conducted
by:
1. (Yendrawati, 2013) �which states that the capacity of human resources has a positive effect
on the quality of information on local government financial statements in the
Yogyakarta Special Region Social Service.
2. Wahyuni, isti Fadah, and Diana Sulianti Tobing (Wahyuni et al.,
2018) who stated that the competence of human resources affects the quality of
financial statements.
3. Dela Aprilia Safitri, Maslichah, and Afifudin (Aprilia
Safitri et al., 2019) who stated that partially the competence of human resources has a
positive and significant effect on the quality of financial statements
The use of Accounting Information Technology is an important part of
helping the accounting recording and reporting process. Data processing using
accounting software is able to produce timely financial reports that are
accurate and can be ascertained to be correct. Based on descriptive data
showing that the use of accounting information technology in non-profit NGO
organizations is high, most of the respondents' answers are on a scale of 4 to
5. From the respondents' answers, 76 respondents used accounting software in
processing and reporting accounting data at non-profit organizations where
respondents worked, so that it can be ensured that the use of accounting information
technology in non-profit organizations can improve the quality of financial
statements better.
�
CONCLUSION
Based on the
results of the analysis and discussion of the research, it can be concluded as
follows:
Human Resources
(HR) competence affects the quality of non-profit organizations' financial
statements.
The application of
Financial Accounting Standards (SAK) affects the Quality of Financial
Statements of Non-Profit Organizations.
The Internal
Control System (SPI) affects the Quality of Financial Statements of Non-Profit
Organizations.
The use of
Accounting Information Technology (PTIA) affects the Quality of Financial
Statements of Non-Profit Organizations.
Internet Financial
Report can strengthen the influence (PTIA) on the Quality of Financial
Statements of non-profit organizations
Based on the above
conclusions, it can be drawn an outline that the variables of human resource
competence, the application of financial accounting standards, the internal
control system and the use of accounting information technology show results
that affect the quality of financial statements of non-profit organizations of
NGOs. For moderation variables, the Internet Financial Report can strengthen
the relationship between the Use of Accounting Information Technology and the
Quality of Financial Statements of non-profit organizations.
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Nico Hardiyanto, Nurmala Ahmar, Endang Etty Merawati (2023)
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