Implementation of Agency Level Financial Application Systems (Sakti), Hr Competency, Internal Control with Compliance With Financial Management Regulations as a Moderation Variable on the Quality of Government Financial Reports

Abstract

The accrual-based Government Accounting Standards (GASB) are the first step towards improving accountability and transparency in state financial management. To assist all work units in financial reporting, planning, and execution, the Indonesian government developed the Agency Level Financial Application System (SAKTI), an integrated system under the Ministry of Finance. The extensive implementation of SAKTI, initiated in 2022, will provide difficulties, particularly with internal control systems and human resource preparedness.       This study focuses on the following variables: The implementation of SAKTI, human resource expertise, internal controls, and adherence to financial management standards all impact the quality of governmental financial reporting. 232 participants from KPPN Magelang partner work units took part in the study, which used a quantitative methodology using the AMOS 24 program and structural equation modelling (SEM). According to research, internal control, HR knowledge, and SAKTI may all greatly raise the calibre of government financial reports. The findings of the study highlight the need of combining human resource skills, accounting information technology, and strong governance to guarantee accurate and accountable government financial reporting. Developing strategic plans for managing public finances in the digital age can be informed by these insights.