The Effect of Good Governance and Accrual Accounting on

Apparatus Behavior with Supporting Devices as Moderators

Henny Yulsiati

, Sandrayati

, Susi Ardiani

, Sarikadarwati

Department of Accounting, State Polytechnic of Sriwijaya, Palembang, Indonesia

Keywords: Good Governance, Accrual Accounting, Administrative Behavior, and Device Support

Abstract: The purpose of this study was to determine the effect of good governance and to accrual accounting

behavior by device support apparatus as moderators. The population of Palembang government there are 23

department of state level, using saturation sampling technique. The data are processed in the form of

primary data collected from respondents' answers on questionnaires returned. The results showed that

partially variable accrual accounting significant positive effect on the behavior of the apparatus. Meanwhile,

the good governance and the device does not significantly influence the behavior of the apparatus.

Simultaneously, good governance, accrual accounting and supporting devices jointly significant effect on

the behavior of the apparatus. Furthermore, the device is capable of supporting moderate the relationship

between good governance and accrual accounting to the apparatus behavior. Third force independent

variable in explaining the behavior of the apparatus is 96.4%, meaning that the apparatus behavior is also

influenced by other factors by 3.6%, which is not included in this study.

1 INTRODUCTION

The issue regarding the behavior of government

employees is very much in the public spotlight at

this time, because it has not shown good results felt

by the people. The people demand that the

government can manage and carry out the duties of

the government well, so that it can have an impact

on the welfare of the community.

When highlighting the behavior of the apparatus

in Indonesia, the community paradigm is never

separated from the negative stigma of corruption,

including Palembang, the capital of South Sumatra

Province. Some of the rampant corruption cases

involving officials in the Palembang city

government include: Plastic Bag Corruption of the

City of Sanitation and Beauty Service

(palembang.tribunnews.com); Tax Corruption Rp

2.1 M by the Palembang City Dispenda

Investigation Section Head (https://m.detik.com);

Corruption of Financial Allocation Funds that

surrounds the Disdikpora of Palembang

(www.kabarrakyatsumsel.com)

One of the things that affects the behavior of the

apparatus is the application of the principles of good

governance in carrying out the duties of the

apparatus. The absence of transparency in budget

management will support indications of corruption.

Whereas in terms of financial management that are

closely related to the government accounting system,

the behavior of those who like corruption can be

influenced by the lack of transparency in the

operational picture of the government formed from

the accounting system.

The accounting system in Indonesia is currently

running from a cash basis to accruals. The lack of

transparency in the description of government

operations can occur because Palembang has not

fully implemented the principles of good governance

and accrual-based accounting systems. This is then

in line with the research of Khan and Mayes (2009)

which argues that accrual accounting can help

produce behavior changes for budget decision

makers and leaders. Thus, the application of full

accrual accounting in the city of Palembang is

expected to create government financial

transparency so that it can minimize the opportunity

for officials to commit acts of corruption.

Yulsiati, H., Sandrayati, ., Ardiani, S. and Sarikadarwati, .

The Effect of Good Governance and Accrual Accounting on Apparatus Behavior with Supporting Devices as Moderators.

DOI: 10.5220/0009152500002500

In Proceedings of the 2nd Forum in Research, Science, and Technology (FIRST 2018), pages 64-69

ISBN: 978-989-758-574-6; ISSN: 2461-0739

2 LITERATURE REVIEW AND

HYPOTHESIS DEVELOPMENT

2.1 Good Governance

The World Bank in (LAN & BPKP, 2000) provides

a definition of governance as: "the way state power

is used in managing economic and social resources

for development of society". The World Bank

defines good governance as a solid and accountable

development management in line with the principles

of democracy and efficient markets, avoidance of

misallocation of investment funds, and prevention of

corruption both politically and administratively,

running budget discipline and creating legal and

political framework for growth business activity

(Martini, Sari, & Wardhani, 2015).

2.2 Accrual Accounting

According to PP 71 of 2010 Accrual basis is the

accounting basis where economic transactions or

accounting events are recognized, recorded and

presented in the financial statements at the time of

the transaction, regardless of the time the cash was

received or paid.

Simanjuntak (2010) mentions constraints that

add to the dilemma of implementing public sector

accruals, namely: Accounting and IT Based System.

Seeing the complexity of the implementation of

accrual-based accounting, it can be ascertained that

the application of accrual-based accounting in the

government environment requires a more

complicated accounting system and IT based system.

2.3 Supporting Devices

Based on Government Regulation No. 71 Year 2010

concerning SAP, the Government Accounting

System is a series of manual and computerized

procedures ranging from data collection to

recording, summarizing and reporting financial

position and government financial operations. For

this reason, information technology is needed to help

the government accounting system to run smoothly.

2.4 Apparatus Behavior

Behavior is the accreditation and attitude of a State

Civil Apparatus (ASN) in the face of a condition that

is carried out in their duties. The apparatus must

obey the rules stipulated in the execution of work.

Responsibility is the ability of the apparatus to fulfill

the work that is given to him. The willingness to

create good governance must be the guideline of the

state apparatus.

3 RESEARCH METHODOLOGY

The thinking framework in this study can be

described as Figure 1.

Figure 1: The thinking framework

The research hypothesis are:

H1: Good governance affects the behavior of the

apparatus

H2: Accrual accounting affects the behavior of the

apparatus

H3: Supporting devices have an effect on apparatus

behavior

H4: Good governance, accrual accounting, and

supporting devices affect the apparatus

behavior simultaneously

H5: Supporting tools moderate the relationship

between good governance and apparatus

behavior

H6: Supporting devices moderate the relationship

between accrual auntansi on apparatus

behavior

3.1 Types and Objects of Research

The research was conducted in the Government of

Palembang city, South Sumatra Province. The

population in this study is the government of the city

of Palembang, South Sumatra Province, amounting

to 23 OPD. In this study the sample was determined

by saturated sampling technique given the relatively

small population.

3.2 Data Retrieval Techniques

Data collection techniques were carried out by

questionnaire (questionnaire) method, namely by

giving a set of questions or written statements to

The Effect of Good Governance and Accrual Accounting on Apparatus Behavior with Supporting Devices as Moderators

respondents. The questionnaire is given in the form

of a closed statement so that the respondent just

chooses the answer option that is considered the

most appropriate.

3.3 Variable Operational Definition

3.3.1 Good Governance

It is good governance that governs government and a

synergistic and constructive relationship between the

state, economy and politics that is carried out by

complying with the principles of good governance

and aims to create public welfare (Martini, Sari, &

Wardhani, 2015).

These variable indicators are participation, legal

certainty, transparency, responsiveness, consensus

orientation, equality, efficient and effective,

accountability, and strategic vision.

3.3.2 Accrual Accounting

Is the basis used in government, where economic

transactions or accounting events are recognized,

recorded and presented in the financial statements at

the time of the transaction regardless of time. The

indicator used is revenue recognition, cost

recognition, recognition of assets, recognition of

debt and equity recognition.

3.3.3 Supporting Devices

Is a component contained in a computer in the form

of hardware, software, as well as users (brainware)

as the compilers of local government financial

statements that become one entity that cannot be

separated and has a binding role, the indicator used

is hardware, software, and brainware.

3.3.4 Apparatus Behavior

Is the accreditation and attitude of a person in

dealing with a condition that is carried out in his

duties. The indicators used are discipline, integrity,

politeness, and exceptions.

3.4 Data Analysis Technique

The direct relations between independent and

dependent variables, there is a possibility that they

can be influenced by other variables that are not

included in the statistical model, namely the term

moderating or moderating variables. The equation

model used in this research is:

PA = α + β1 GG + β2 AA + β3 PP + β4 GG * PP +

β5 AA* PP + e

Where :

Α : Constants

β : Regression Coefficients

e : error

GG : Good governance

A A : Accrual Accounting

PP : Device Support

GG * PP : interaction with devices

supporting good governance

AA * PP : accrual accounting interaction with a

supporting device

4 RESULT AND DISCUSSION

4.1 Result

4.1.1 Multiple Linear Regression Analysis

The results of the regression analysis above then

obtained the following equation:

PA = 4.03 + 0.13GG + 0.31AA - 0.15PP - 0.01GG *

PP - 0.016 AA * PP + e

4.1.2 Hypothesis Testing

Simultaneous Test (F Test).

H4: the results of

the ANOVA test or F-test showed F-count of

265.609 with a significance level of 0.000, while F

table is 2.77 to 0.05 significancei level.

Based on these results it can be deduced that Ha

is acceptable and H0 is rejected in other words good

governance, accrual accounting and supporting

devices simultaneously influence the behavior of the

apparatus.

Partial Test. The magnitude of the variable t for

good governance is 1.358 with a significant level of

0181 while the value Ttable is 1.67 so that t < t-table

that is equal to 1.358 < 1.67 then partially good

governance does not affect the behavior of the

apparatus. As well as to a significant degree in this

study indicates the number of > 0.05 or 0.181 >

0.05, then H1 is rejected, meaning that good

governance does not significantly influence the

behavior of the apparatus.

The magnitude of the variable t to accrual

accounting is a significant level of 2.577 with 0.013

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

while ttable value is 1.67 so that t > t-table that is

equal to 2.577 > 1.67 then the partial accrual

accounting positive influence on the behavior of the

apparatus. as well as to a significant degree in this

study indicates the number < 0.05 or 0.013 < 0.05

then the H2 can be accepted, meaning that accrual

accounting significantly influence the behavior of

the apparatus.

The magnitude of the variable t to support device

is -1.401 with a significant level of 0.167 while

ttable value is 1.67 so that t < t table that is equal to -

1.401 < 1.67 then partially supporting devices not

negatively affect the behavior of the apparatus. As

well as to a significant degree indicates the number

of > 0.05 or 0.167 > 0.05 then the H3 is rejected,

meaning that the device does not support a

significant

The device can support moderate the relationship

between good governance of the behavior of the

apparatus, it can be seen from the value of t > t table

and has a negative value that is equal to -3.018 >

1.67, as well as to a significant degree in this study

indicates the number < 0.05 is 0.04 < 0.05 then the

H5 accepted, it means supporting devices able to

moderate the relationship between good governance

of the behavior of the apparatus.

The device can support moderate the relationship

between the accrual of the behavior of the apparatus,

it can be seen from the value of t > t table and has a

negative value that is equal to -2.379 > 1.67, as well

as to a significant degree in this study indicates the

number < 0.05 is equal to 0.021 < 0.05 then the H6

accepted, it means supporting devices able to

moderate the relationship between the accrual of the

behavior of the apparatus.

Test results show that the variables of good

governance, accrual accounting and supporting

devices can only explain the behavior variable of the

apparatus at 96.3%. While the remaining 3.7% is

explained by other factors not included in this

research model.

H5 is accepted, meaning that the supporting

device is able to moderate the relationship between

good governance on the behavior of the apparatus.

H6 is accepted, meaning that the supporting device

is able to moderate the relationship between accrual

accounting to the behavior of the apparatus.

4.2 Discussion

4.2.1 The Effect of Good Governance on the

Behavior of the Apparatus

This hypothesis is rejected because it is based on the

testing, the value of the variable t good governance

is smaller than t-table value that is equal to 1.358 <

1.67 significance level is greater than the value of α

= 5% (0.181 > 0.05). It can be concluded H0 and H1

rejected. In other words, good governance does not

affect the behavior of the apparatus.

According (Yanwariyanidwi, 2015), when seen

from the progress of reform that has been running

for 12 years, the application of good governance in

Indonesia can not be said to succeed fully in

accordance with the ideals of the previous reforms.

There are still many fraud and leakage of budget

management and accounting are the two main

products of good governance.

Palembang still heard cases of corruption

involving government employees who worked for

the city of Palembang. This indicates that the

Palembang city government has yet to implement

the principles of governance goof so they raised the

cases of corruption and showing good behavior of

the apparatus.

4.2.2 The Effect of Accrual Accounting on

the Behavior of the Apparatus

This hypothesis is accepted because it is based on

the testing, the value of the variable t accrual is

greater than the value that is equal to 2,577 t table >

1.67 with a significance level of less than the value

of α = 5% (0.013 < 0.05). Therefore we can

conclude H2 H0 rejected and accepted.

In other words, accrual accounting have an

influence on the behavior of the apparatus. The

higher understanding about accrual accounting

personnel, the better the behavior of personnel in

managing local government finances. The results are

consistent with research (Sarwenda and Dina, 2015)

which states that the accrual accounting effect on the

behavior of the apparatus.

4.2.3 The Effect of Supporting Devices on

the Behavior of the Apparatus

This hypothesis is rejected because it is based on the

testing, the value of the variable t support device is

smaller than ttable value that is equal to -1.401 <

1.67 significance level is greater than the value of α

= 5% (0.167 > 0.05). It can be concluded H0 and H3

The Effect of Good Governance and Accrual Accounting on Apparatus Behavior with Supporting Devices as Moderators

rejected. In other words, the supporting device has

no influence on the apparatus.

The device in the form of hardware and

software

support have an influence on the behavior of the

apparatus, just not directly. Supporting devices

requires a more

important component in order to

operate, such as brain-ware (users), the contribution

is very large in the supporting device utilization

4.2.4 the Effect of Good Governance,

Accrual Accounting and Supporting

Tools on the Behavior of the

Apparatus

In addition to seeing the effect of each variable

partially to the apparatus behavior, researchers also

tested the effect of good governance, accrual

accounting and supporting devices on the behavior

of the apparatus to the apparatus behavior

simultaneously.

Based on these results, good governance, accrual

accounting and supporting devices simultaneously

positive effect on the behavior of government

officials in the province of South Sumatra of

Palembang. This is evidenced by the value of F has a

value greater than F-tabel amounting to 265.609 >

2.77 with a significant level of less than 0.05 is

equal to 0.000.

Thus, it can be concluded that the H4 is

accepted. The results of this hypothesis illustrates

that the higher the implementation of good

governance, accrual accounting.

4.2.5 Supporting Devices Moderate the

Relation between Good Governance

and the Behavior of the Apparatus

This hypothesis is accepted because the device

supporting moderate the relationship between good

governance of the behavior of the apparatus has a

value of t negative and greater than the value that is

equal to -3.018 t-table > 1.67, and have a

significantly smaller value of 0.05 is 0.04 < 0.05.

It can be concluded that the support device is

able to moderate the relationship between good

governance of the behavior of the apparatus.

Collaboration between good governance and

supporting devices can affect the behavior of the

apparatus

4.2.6 The Supporting Tool Moderates the

Relation between Accrual Accounting

to the Behavior of the Apparatus

This hypothesis is accepted as a supporting device

moderating the relationship between the accrual of

the behavior of the apparatus has a value of t

negative and greater than the value that is equal to -

2.379 t-table > 1.67, and have a significantly smaller

value of 0.05 is 0.021 < 0.05.

It can be concluded that the support device is

able to moderate the relationship between the

accrual of the behavior of the apparatus.

Collaboration between accrual accounting and

supporting devices can affect the behavior of the

apparatus

5 CONCLUSION

Partially, the good governance does not affect the

apparatus behavior, the accrual accounting has a

significant positive effect on apparatus behavior and

the supporting device variable does not affect the

apparatus behavior. Simultaneously, the good

governance, accrual accounting, and supporting

devices have a significant positive effect on

apparatus behavior.

Supporting devices are able to moderate the

relationship between good governance and apparatus

behavior and are able to moderate the relationship

between accrual accounting on apparatus behavior.

ACKNOWLEDGEMENTS

This research is based on work supported by State

Polytechnic of Sriwijaya, Indonesia. The author

thankfully acknowledges scientific discussion with

our colleagues from State Polytechnic of Sriwijaya,

Indonesia. The authors would like to acknowledge

the anonymous reviewers at the IC FIRST 2018

for their feedback on an earlier version of the

paper, and also thank to the two anonymous

reviewers who provided feedback as part of this

journal's review process.

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The Effect of Good Governance and Accrual Accounting on Apparatus Behavior with Supporting Devices as Moderators