Human Resources Competence As A Bridge Of Transparency, Accountability And Internal Control In Improving The Quality Of Regional Financial Reports

Abstract

Background: Sukabumi Regency has received an Unqualified Opinion (WTP) for its Regional
Financial Report (LKPD) for the 2023 Fiscal Year. This is the 11th consecutive year. This demonstrates
a commitment to transparency and accountability in regional financial management. Following the WTP
opinion, the Supreme Audit Agency (BPK) provided several findings and recommendations for further
improvement, including those related to policies and mechanisms for measuring the performance of
Public Service Providers (PPJU), processing overpayments, and improving the inventory and
verification of infrastructure, facilities, and Public Service Providers (PSU) assets from housing
developments. (https://www.google.com/search?q=hasil+audit+bpk+2024+kabupaten+sukabumi.)
Purpose: This study aims to determine whether human resource competency can enhance
transparency, accountability, and internal control in improving the quality of financial reports.
Methodology: According to (Sugiyono, 2020), the research method is a series of activity processes
starting from collecting, analyzing to interpreting data from research results. This research is a survey
study with an associative approach to data analysis. The instrument used for data collection was a
questionnaire, while the data analysis tool used was multiple linear regression. The subjects of this
study were 30 employees of regional government agencies (OPD) involved in regional financial
management in Sukabumi Regency. The sampling technique used purposive sampling with 120
employees.
Findings – The test results show that transparency has a partial influence in improving the quality of
financial reports. This means that the greater the transparency, the better the quality of financial
reports. Conversely, the lower the transparency, the lower the quality of financial reports in Sukabumi
Regency. Accountability has a partial influence in improving the quality of financial reports. This means
that the greater the accountability of OPD employees, the better the quality of financial reports.
Conversely, the lower the accountability, the worse the quality of financial reports in Sukabumi
Regency. Internal Control has a partial influence in improving the quality of financial reports. This
means that the greater the Internal Control of OPD employees, the better the quality of financial reports.
Conversely, the lower the Internal Control in OPD, the worse the quality of financial reports in Sukabumi
Regency. Human Resource Competence has a partial influence in improving the quality of financial
reports. This means that the greater the Competence of OPD employees, the better the quality of
financial reports. Conversely, the lower the Competence of OPD employees, the worse the quality of
financial reports in Sukabumi Regency. Human Resource Competence can bridge the influence of
transparency, accountability, and Internal Control in improving the quality of financial reports in
Sukabumi Regency. This means that increasing the competency of OPD human resources in
Sukabumi Regency will further increase the influence of transparency, accountability, and internal
control in improving the quality of regional financial reports.
Research limitations – This study was conducted based on data obtained using a questionnaire
instrument and the perceptions of OPD employees in Sukabumi Regency. Therefore, these findings
cannot be generalized to public perceptions in general.
Originality/value – This study is relatively unique because human resource competency is rarely used
as a mediator between transparency, accountability, and internal control in improving the quality of
financial reports. This research can provide a new platform, as human resource competency has often
been used as a direct variable in research.
Keywords: Competence, Transparency, Accountability, Internal Control, Financial Reports