Determinant Factors Affecting Financial Reporting Quality of Regional Hospital Public Service Agency: Evidence from South Jakarta, Indonesia

This study aims to investigate the influence of government accounting standards, human resources competence, utilization of information technology toward financial reporting quality in regional government hospital in South Jakarta Province.This study applies explanotary research in which questionnaires and interviews serve as the primary data. The sample of this study is 36 respondents which consist of 7 regional general hospitals as a saturation sampling during the year 2007. The path analysis and using SPSS 23 version to test the hypothesis. The result indicate that government accounting standards, human resources competence and utilization of information technology has positive sign and significant to the financial reporting quality of regional government hospital in South Jakarta Province.

1 Introduction Good governance system mechanism is one of the benchmarks government succesfull in running a good government. Based on Law No 17 of 2003 concerning State Finances [1], actualizing transparency and accountability in government finances is preparing and presenting accountability reports in the form of financial reporting.Within DKI Jakarta province government area, there are many Regional Work Units (Satuan Kerja Perangkat Daerah/SKPD) and Regional Apparatus Work Units (Unit Kerja Perangkat Daerah/UKPD ) having status of Regional Public Service Agencies (Badan Layanan Umum Daerah/BLUD ). SKPD/UKPD which applied BLUD financial pattern is given flexibility in managing their finance by implementing sound business practices to improve sustainable services to public, without seeking benefits to advance general welfare and enrich the life of a nation. Sound business practices about BLUDs managerial flexibility are meaningful as PSYCHOLOGY AND EDUCATION (2021) 58 (1):504-511 ISSN: 00333077 505 www.psychologyandeducation.net an implementation of an organizational function based on good management principles in order to give providing quality, sustainable services, and competitive services.
There are several phenomena of irregularities in terms of financial reporting that have occurred in hospitals with BLUD status in Indonesia, including: i) administrative findings in developing of regional government hospitals. DKI Jakarta in 2016 where there were administrative findings that caused state losses amounting to Rp. 9.9 billion, causing the value of asset recording to be irrelevant and inaccurate [2].ii) Purchase of Sumber Waras Hospital land in 2014. There was a price difference purchased by the Provincial Government DKI Jakarta with the price of an agreement between the hospitals. Sumber Waras and PT CKU, which reached 191 billion rupiah. This can result in information and the price basis used to record the value of assets and cash management in financial reporting to be inaccurate, unreliable, and irrelevant [3].iii) Case of Embung Fatimah Hospital, Batam in 2016-2017. Audit Board Of Republic Of Indonesia (Badan Pemeriksa Keuangan /BPK ) found a number of violations including debt payments not recorded on the balance sheet, debt payments to employees that have not been paid, debt bills to third parties that are not recorded on the balance sheet, procurement of office stationery expenditures that are not in accordance with regulations, accompanying activities to prepare financial statements that are not appropriate, etc.
[4] Note from BPK in the 2017 DKI Jakarta Government Report On Government Finances (Laporan Keuangan Pemerintah Daerah / LKPD) audit sampling states that there were still findings related to the lack of optimal use of information technology for asset management and logistics/inventory management in regional public hospitals,therefore can ultimately affected quality of financial reporting.(Source: Internal Report on Audit Findings on Inventory and Assets Audit Sampling of RSUD in the 2017 DKI Jakarta Provincial Government.) [5] Regional ; Pujanira, Putriasri ,The influence of human resource competence, the application of government accounting standards, and the application of regional financial accounting systems on the quality of the DIY local government financial reports [8]where results of this study showed that the application of government accounting standards had a positive and significant effect on the quality of government financial statements area.
The purpose of this study is to analyze and describe application of governmental accounting standards, human resources competencies, and use of information technology effected to financial reporting quality status as a regional public services agency. This status applied BLUD financial pattern that given flexibility in managing their finance by implementing sound business practices to improve sustainable services to public, without seeking benefits to advance general welfare and enrich the life of a nation. Research Methodology The type of data used in this study is primary data. Primary data obtained by researchers directly from respondents were Head of Finance, Head of Accounting and Reporting, Treasurer of Expenditures, and staff at the financial units in hospitals that apply the BLUD financial management patterns in the South Jakarta area through distributing research questionnaires. The questionnaire was used to obtain data on the quality of financial reporting, the application of government accounting standards, human resource competencies and the use of information technology.
There were seven hospitals as a subject of this research; 1) Jagakarsa Regional Hospital, 2) Jatipadang Regional Hospital, 3) Pasar Minggu Regional Hospital, 4) Tebet Regional Hospital, 5) Mampang Prapatan Regional Hospital, 6) Pesanggarahan Regional Hospital, 7) Kebayoran Baru Regional Hospital.Population in this study were all employees of the Financial Section of RSUD who applied the BLUD financial management pattern in the South Jakarta area. The valid population was 36 people,and as a sampling technique in this study was carried out using saturated sampling.
According to explaination above, the model of this study can be drawn in figure 1.

Validity Test and Reliability Test
Resulate of validity tes showes all AGAS,HRC, UIT, and FRQ variables show significant results and show r count > r table, whrere all correlation coefisiens are more than R tabel 0,329 (R tabel is calulcated according to total samples) It can be concluded that all statement items are declared valid.
Anthoer test is reliability test. According to the SPSS proces of data, Cronbach's Alpha of AGAS is 0,769, HRC is 0,775, UIT is 0,838, and FRQ is 0,898, these means all variables is greater than 0.70 so that it can be concluded that data all declared to be reliable and can be trusted as a variable measurement tool.

Multicolinearity Test
Based on test results, VIF of AGAS is 1,722, HRC is 2,405, and UIT is 1,979. VIF of all variables in range > 0,10 and < 10, it means all

Heteroscadeticity Test
Scatterplot image shows that the points spread randomly, scattered both above and below zero on the Y axis and do not form a specific clear pattern. Therefore, the regression model is said not experience of heteroscedasticity. The scatterplot image is showed below:  which is equal to 0.016. These results indicate that the application of government accounting standards has a positive and significant effect on quality of financial reporting. Therefore, H1 is accepted, namely the application of government accounting standards and a significant positive effect on the quality of financial reporting.
2) Human resource competency variable (HRC) has t count value of 2.306 which means t count> t table (2.306> 2.036) and a significance level of HRC <0.05 that is equal to 0.028. These results indicate that human resource competence has positive and significant effect on quality of financial reporting. Therefore, H2 is accepted, that is, human resource competency has positive and significant effect on quality of financial reporting.
3) Variable utilization of information technology (UIT) has t count of 2.046 which means t count> t table (2.046> 2.036) and significance level of UIT <0.05 that is equal to 0.041. These results indicate that use of information technology has a positive and significant effect on quality of financial reporting. Therefore, H3 is accepted, namely use of information technology and has a significant positive effect on quality of financial reporting.

Conclusion
The limitations in this study are not all of information gathered from stakeholders who have interest in financial reporting in different way such as Health Office (Dinas Kesehatan), Regional Financial Management Board (Badan Pengelola Keuangan Daerah), Supervisory Board (Dewan Pengawas), Inspectorate (Inspektorat), and etc. In case of whether they assed quality of BLUD financial reports can be more objective and fairer. In addition, stakeholders from higher institutions have higher competence in examining, assessing and overseeing quality of financial statements.
Based on concept of agency theory [9], it was also explained that agent must be responsible to owner in the form of financial reporting with the result that quality of financial reporting better shows that financial governance is better too, so it can create a sense of public trust and can improve the performance of government. Application of government accounting standards has positive and significant effect on quality of financial reporting. Generally Accepted Government Accounting Principles has been applied even though there are still hospitals that are not yet optimal. As for results, implementation of government accounting standards that are not optimal in hospitals shows that BLUD financial management patterns due to lack of internal supervision conducted from direct high level ,differences in interpretation and understanding accounting techniques of applying government accounting standards due to HR placement (the right man on the right place) is not right, and also human resources rotation take place in a fast way, causes obstacles in optimizing applying government accounting standards. Financial Information Systems following implementing development process about good governance principle, it is required to develop and utilize advances in financial information technology to public services .The application must be able to integrate data and information beginning patient are registered until patient discharged from hospital. This matter result in financial transactions that occur from patient services can be presented accurately in a real time. During the industry 4.0 RSUD that implemented BLUD financial management pattern, that must be adjusted to technological developments in order to be able published quality financial information. Utilization of information technology in hospitals that implement BLUD financial management patterns has been well supported by good and sophisticated hardware and software facilities, by using integrated applications Regional Financial Management Information System (Sistem Informasi Pengelolaan Keuangan Daerah/SIPKD); Local Tax Information System (Sistem Informasi Pajak Daerah/SIMPAD); Asset Information Electronic System (Sistem Informasi Elektronik Informasi Asset/SIERA) that have been provided by Regional Financial Management Agency (Badan Pengelola Keuangan Daerah/BPKD) and the Office of Communication and Information (Diskominfo) DKI Jakarta Provincial Government. Use of information technology has a very positive effect on quality of financial reporting because it minimize human error, more accurate, reliable, relevant, trustworthy and able to present data in real time.
[14] (Santoso, 2016) In addition, by utilizing information technology, data of financial transaction can be stored in databases and servers with the result that data security is more secure. It helps management to be able to make decisions more quickly because financial