Enhancing Financial Reporting Quality in Local Government: The Mediating Effect of Local Financial Management Information System Implementation on Human Resource Competency and Organizational Commitment in Medan City

Abstract

This study was conducted due to weaknesses in financial reporting, such as inaccurate recording, incomplete accountability, and errors in the use of the Regional Financial Management Information System (SIPKD) in Medan City Government Agencies. The study aims to re-examine the influence of human resource competence and organizational commitment to financial reporting quality on the successful implementation of the regional financial management information system in Government Agencies in Medan City.

The research population consisted of 11 Regional Apparatus Organizations in Medan City. The research sample consisted of 72 civil servants using purposive sampling. The data used was primary data in the form of a questionnaire distribution. The analysis techniques used were descriptive statistical tests, measurement model tests (outer model), structural model tests (inner model), and hypothesis testing using SmartPLS 4.1 statistical testing software.

The results of the study indicate that human resource competency has no significant effect on financial statement quality, organizational commitment has a positive and significant effect on financial statement quality, the implementation of regional financial management information systems has not been able to mediate the effect of human resource competency on financial statement quality, and the implementation of

regional financial management information systems is able to mediate the effect of organizational commitment on financial statement quality.

Keywords: Human Resource Competence, Organizational Commitment, Financial Statement Quality, Information System Implementation, Regional Financial Management