Qualitative analysis of it reliability and security in local government financial reporting

  • Dailibas Dailibas 
    Universitas Singaperbangsa
    Indonesia
  • R Nasution
    Universitas Singaperbangsa
    Indonesia
  • Chaerudin Chaerudin
    Universitas Singaperbangsa
    Indonesia
  • Muhammad Nasim Harahap
    Universitas Singaperbangsa
    Indonesia

Abstract

The study aims to explore and analyze the reliability and security of information technology (IT) in local government financial reporting in Indonesia. IT reliability and security are important factors in financial management, as reliable and secure information supports decision-making, attracts investment and builds public trust. However, threats to IT reliability and security can lead to negative consequences, such as data inaccuracies or the risk of information leakage. This research uses a qualitative approach with case studies on two local governments that have adopted IT in the financial reporting process. Data were obtained through in-depth interviews, observations and document reviews. The analysis focused on the impact of IT reliability and security on financial administration performance. The results show that improving IT reliability and security has a significant positive impact on local government financial management. Concrete impacts include increased public trust, operational efficiency and financial accountability. IT system reliability enables fast and accurate data processing, while IT security protects sensitive information from cyber threats. This research makes an important contribution by supporting previous research and expanding the discussion on the relationship between IT security and public trust, which has previously been less explored. The practical implications include recommendations for strengthening regulations and budget allocations for better IT infrastructure, as well as guidance on effective IT implementation strategies. The findings confirm that IT reliability and security are key elements in building a transparent and efficient local government administration system.
Keywords
  • Financial statements
  • Local government
  • Information technology
  • IT Reliability
  • IT Security
References
  1. Alfani, D., & Nasution, J. (2022). Implementasi Sistem Informasi Pemerintahan Daerah (SIPD) pada Dinas Perindustrian dan Perdagangan Provinsi Sumatera Utara. Jurnal Pendidikan Tambusai, 6(1), 4036–4043.
  2. Avgerou, C., Ciborra, C., Cordella, A., Kallinikos, J., & Smith, M. (2005). The role of information and communication technology in building trust in governance: Towards effectiveness and results. Inter-American Development Bank.
  3. Bandy, G. (2023). Financial management and accounting in the public sector. Routledge.
  4. Beshi, T. D., & Kaur, R. (2020). Public trust in local government: Explaining the role of good governance practices. Public Organization Review, 20(2), 337–350.
  5. Beynon-Davies, P., & Lederman, R. (2019). Understanding the tangible in information systems.
  6. Butler, B. S., & Gray, P. H. (2006). Reliability, mindfulness, and information systems. MIS Quarterly, 211–224.
  7. Carvalho, C., & Marques, E. (2019). Adapting ISO 27001 to a public institution. 2019 14th Iberian Conference on Information Systems and Technologies (CISTI), 1–6.
  8. Direktorat Jenderal Perimbangan Kementerian Keuangan. (2023). Pengaruh Penerapan Teknologi Informasi terhadap Keandalan dan Keamanan Informasi Keuangan Pemerintah Daerah.
  9. Djanegara, H. M. S., SE, A., & MM, C. A. (2017a). Laporan Keuangan Pemerintah Daerah: Teori, Praktik, dan Permasalahan. Kesatuan Press.
  10. Djanegara, H. M. S., SE, A., & MM, C. A. (2017b). Laporan Keuangan Pemerintah Daerah: Teori, Praktik, dan Permasalahan. Kesatuan Press.
  11. Djawang, R. R. P., Made, A., & Sari, A. R. (2019). Analisis faktor-faktor yang mempengaruhi nilai informasi pelaporan keuangan pemerintah daerah. Jurnal Riset Mahasiswa Akuntansi, 7(2).
  12. Fauzi, A. A., Kom, S., Kom, M., Budi Harto, S. E., Mm, P. I. A., Mulyanto, M. E., Dulame, I. M., Pramuditha, P., Sudipa, I. G. I., & Kom, S. (2023). Utilization of information technology in various sectors during Society 5.0. PT. Sonpedia Publishing Indonesia.
  13. Gelinas, U. J., Dull, R. B., & Wheeler, P. (2018). Accounting information systems. Cengage AU.
  14. Harris, K. (2022). The transformative role of information technology in local government financial reporting: Changing the way we see and manage public finances. Public Administration Review, 82(6), 1015–1024.
  15. Haustein, E., & C. Lorson, P. (2023). Transparency of local government financial statements: Analyzing citizens’ perceptions. Financial Accountability & Management, 39(2), 375–393.
  16. Iskharimah, I., Harmono, H., & Sihwahjoeni, S. (2021). Pengaruh Tingkat Kompetensi Sumber Daya Manusia, Teknologi Informasi, Pengendalian Intern Dan Pengawasan Keuangan Terhadap Keandalan Pelaporan Keuangan Kepolisian Resort Provinsi Jawa Timur. Jurnal Akuntansi Trisakti, 8(2), 287-308.
  17. Iqbal, J., Masoodi, F., Ahmad Malik, I., Khurshid, S., Saraf, I., & Bamhdi, A. (2023). System Reliability and Security. System Reliability and Security. https://doi.org/10.1201/9781032624983
  18. Jauhari, H., Sari, Y., & Dewata, E. (2019). Implementation of Good Governance, Utilization of Information Technology, and Reliability of Government Financial Statements. JASF: Journal of Accounting and Strategic Finance, 2(2), 117–126.
  19. Jones, N. (2020). he impact of information technology on local government financial reporting. The Impact of Information Technology on Local Government Financial Reporting. Journal of Public Budgeting, Accounting & Financial Management, 187–212.
  20. Kim, S., Lee, J., & Lee, J. (2018). Citizen participation and public trust in local government: The Republic of Korea case. OECD Journal on Budgeting, 18(2), 73–92.
  21. Laudon, K. C., & Laudon, J. P. (2017). Essentials of management information systems. Pearson.
  22. Limaye, R. S. (2013). The importance of information integrity, security, networking and data protection. International Journal of Innovations in Engineering and Technology, 2(3), 274–281.
  23. Masombuka, M., Grobler, M., & Duvenage, P. (2021). Cybersecurity and local government: Imperative, challenges and priorities. ECCWS 2021 20th European Conference on Cyber Warfare and Security, 285.
  24. Moehrle, S. R., & Reynolds-Moehrle, J. (2013). Understanding accounting academic research: Before and after Sarbanes-Oxley. Emerald Group Publishing.
  25. Moon, M. J. (2003). Can IT help government to restore public trust? Declining public trust and potential prospects of IT in the public sector. 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of The, 8-pp.
  26. Nasution, M. I., & Si, N. M. (2021). Analisis Penerapan Sistem Informasi Pemerintah Daerah (SIPD) pada Badan Pengelola Keuangan Dan Aset Daerah (BPKAD) Kota Medan. Jurnal Akuntansi Dan Keuangan, 9(2), 109–116.
  27. Ngala, B. M., & Musau, S. (2022). Integrated financial management information system and quality of financial reporting in Nairobi city county government, Kenya. International Academic Journal of Economics and Finance, 3 (7), 453, 473, 2.
  28. Peltier, T. R. (2005). Information security risk analysis. Auerbach publications.
  29. Prastika, W. A., & Marlina, E. (2023). Analisis Keamanan Dan Integritas Data Dalam Sistem Pembuatan Invoice Secara Elektronik. Innovative: Journal Of Social Science Research, 3(4), 2483–2489.
  30. Puspitawati, L. (2023). User Competence And Business Digitalization For The Successful Performance Of The Financial Statements. Jurnal Akuntansi.
  31. Putra, F. D., & Simangunsong, F. (2022). Implementation of the Minister of Home Affairs Regulation Number 70 of 2019 regarding the Regional Government Information System in Pangkalpinang City, Bangka Belitung Province. Journal of Research in Social Science and Humanities, 2(2), 65–74.
  32. Schwalbe, K. (2016). Information technology project management. Cengage Learning.
  33. Smith, P. (2021). Technology Adoption in Government Financial Management: Challenges and Opportunities. Public Finance and Management, 21(3), 267–283.
  34. Srinivas, J., Das, A. K., & Kumar, N. (2019). Government regulations in cyber security: Framework, standards and recommendations. Future Generation Computer Systems, 92, 178–188.
  35. Stallings, W. (2017). Security for the Internet of Things. In Computer and Information Security Handbook (pp. 339–348). Elsevier.
  36. Taylor, J. (2023). The importance of democracy, justice, and accountability in local government financial reporting: The role of information technology. Journal of Public Administration Research and Theory, 33(2), 339–356.
  37. Teo, T. S. H., Srivastava, S. C., & Jiang, L. I. (2008). Trust and electronic government success: An empirical study. Journal of Management Information Systems, 25(3), 99–132.
  38. Tumija, T., Hendra, A., & Sinurat, M. (2023). Penerapan Sistem Informasi Pemerintahan Daerah (SIPD) dalam Pengelolaan Keuangan Daerah pada Badan Pengelola Keuangan dan Aset Daerah (BPKAD) Kota Semarang Provinsi Jawa Tengah. Jurnal Media Birokrasi, 79–91.
  39. White, J. (2022). Transparency in local government financial reporting: The role of information technology. Public Administration Review, 82(1), 160–169.
  40. Whitman, M. E., & Mattord, H. J. (2019). Management of information security. Cengage Learning.
  41. Widarsono, T. (2019). The influence of human resources and the use of information technology on the reliability and timeliness of local government financial reporting. Journal of Accounting and Finance, 21(1), 1–17.
  42. Winarno, P. M., Kusnadi, A., & Afriliana, N. (2019). Implementasi Sistem Informasi Pembangunan Daerah Di Kabupaten Tangerang. Prosiding Konferensi Nasional Pengabdian Kepada Masyarakat Dan Corporate Social Responsibility (PKM-CSR), 2, 117–123.
  43. Wolff, J., & Lehr, W. (2018). When cyber threats loom, what can state and local governments do? Georgetown Journal of International Affairs, 19, 67–75.
  44. Yuan, Y.-P., Dwivedi, Y. K., Tan, G. W.-H., Cham, T.-H., Ooi, K.-B., Aw, E. C.-X., & Currie, W. (2023). Government digital transformation: understanding the role of government social media. Government Information Quarterly, 40(1), 101775.
  45. Yudatama, U., Dianto, I. A., ST, S., Kom, S., Ak, M., Fergina, A., Kom, S., Kom, M., Tisnawati, R., & Kom, S. (2023). Sistem Enterprise di Era Digital: Inovasi, Transformasi, dan Keberlanjutan. Kaizen Media Publishing.

Downloads

PDF

Statistic

Abstract Views
: 274 times
PDF
: 6 times