Accrual Accounting, Performance Budgeting, and Financial Reporting Quality as Determinants of Government Performance Accountability

Muhammad  Habil; Suhirman Madjid

doi:10.64463/am0xvy81

Authors

Muhammad Habil Faculty of Economics and Business, YARSI University, Jakarta Author
Suhirman Madjid Faculty of Economics and Business, YARSI University, Jakarta Author

DOI:

https://doi.org/10.64463/am0xvy81

Keywords:

Accrual Basis, Performance-Based Budgeting, Monitoring the Quality of Financial Reports and Accountability for Government Agency Performance

Abstract

Performance accountability of government agencies is essential because it reflects the obligation to report the success or failure of organizational missions in achieving established targets through periodic accountability mechanisms. This study examines the influence of the accrual basis, performance-based budgeting, and financial report quality monitoring on government agencies' performance accountability. The research uses a correlational design and relies on primary data collected from respondents in the East Jakarta administrative city government. Data was obtained through questionnaires distributed to fifteen finance department personnel. Multiple linear regression was employed to analyze the relationships between variables. The results show that the accrual basis has a positive and significant effect on performance accountability, indicating that accurate recognition and recording of financial transactions strengthen institutional responsibility. Performance-based budgeting also has a positive and significant effect, demonstrating that linking budget allocation to outputs and outcomes improves accountability. Additionally, financial report quality monitoring enhances accountability, underscoring the importance of strong internal controls and reliable reporting processes. Managerially, the findings imply that improving staff competence in accrual accounting, ensuring consistent application of performance-based budgeting, and reinforcing monitoring mechanisms are essential strategies for enhancing the performance accountability of government agencies.

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