Analysis of Factors Influencing the Quality of Local Government Financial Reports

(1)

Analysis of Factors Influencing the Quality of Local Government Financial Reports

Yunus Tulak Tandirerung^a, La Ode Hasiara ^a,1*, Noor Fachman Tjete ^b, Mat Juri ^b

a Finance and Banking Study Program, Accounting Department, Politeknik Negeri Samarinda

b Accounting Study Program, Accounting Department, Politeknik Negeri Samarinda

1 hasiaral@gmail.com *

* corresponding author

I. Introduction

The authors identify problems affecting government financial reports' quality based on the title above. This opinion is made to facilitate the search for problems that arise in this research [1]. The results of problem identification are 4 (four) exogenous variables and 2 (two) endogenous variables, namely: (1) Organizational commitment (OC), (2) Information technology (IT), (3) Internal Control Techniques (ICT), (4) Government Accounting Standard (GAP), and endogenous variables, namely (1) Quality of Financial Reports/QFR, and (2) Good Government (GG).

Good government organizational commitment if there is a shared vision and mission between superiors and subordinates in one organization [2]. In addition, organizational goals can be achieved with a shared vision, and the mission becomes a common goal [3]. The purpose of government organizations related to the title above is the government's commitment to improving the quality of government financial reports. The quality of government financial reports can be achieved if the government has the overall organizational commitment, for example, has Human Resources (HR) competencies, has the knowledge, has the experience, has training and workshops following the skills required by the organization, discipline, and honesty.

Information technology plays a crucial role in organizations; study [4] indicates that technology implements all organizational strategies. Even in Thika, Kenya. This study is supported by the Dynamic Capabilities View of the Firm (DCV), an offshoot of the Resource-Based View of the Firm (RBV), which identifies technology as one of the most essential dynamic capabilities required for companies to retain exceptional performance and competitive advantage. Technology is a science that

ARTICLE INFO A B S T R A C T

Article history:

Received 30 Sep 2022 Revised 06 Nov 2022 Accepted 13 Dec 2022

This study intends to determine and analyze the influence and relationship:

between information technology, internal control system, Parameters of Government Accounting, Quality of financial reports, information technology, System internal control, direct implementation of Government Accounting Standards, the indirect relationship of information technology, System control indirect relationship, indirect effect on the implementation of Government Accounting Standard through indirect effect on information technology. This study employs a quantitative approach based on Partial Least Squares (PLS).

Examined from the perspective of the first equation, this study's findings reveal that organizational commitment, information technology, and internal control systems have direct and significant effects on the quality of financial reports.

Implementing government accounting standards concurrently enhances the quality of financial reports. In contrast to the second equation, which indicates that organizational commitment and technology have a significant effect on good governance, control has a positive and insignificant effect on good governance, whereas accounting parameter implementation has a negative and insignificant effect on good governance. In addition, organizational commitment, the use of technology, and internal control have a significant impact on the quality of financial reporting, an indicator of effective governance. In contrast, the use of accounting principles has a positive and insignificant effect on excellent governance management through the quality of financial reporting.

Keywords:

Good Governance, Government Finance, Influence,

Quality Report

(2)

dynamically follows the development of the times and modern science. Therefore, technology is the most critical driver in an organization's success, government, and company.

The internal control system is an essential and fundamental part of an organization. Several previous studies have shown whether the quality of internal government control financial reports is good [5][6]. The researchers explained that the quality of government financial reports is determined by several things, including the internal control system, the commitment of leaders and subordinates, experience, skills, knowledge, discipline, reliability, and honesty in managing government financial accounting.

Government accounting parameters [7] explain that the basis of good government is the quality of financial reports. Because quality financial reports are made based on Parameters [8]. Moreover, the quality of financial reports affects good government. The results of research [9] state that when the government makes financial reports and provides accountability based on parameters, the financial reports are guaranteed high quality.

II. Methods

This study uses quantitative research using the Partial Least Square (PLS) model. The data collection tool in this study is a questionnaire. After collecting the data, a research instrument was tested [27]. This opinion was used to determine data validity and reliability testing [28]. The purpose of this test was to evaluate the precision and dependability of the questionnaire as a data gathering instrument. The results of the research questionnaire's validity and reliability tests can be understood for all items with item correlation coefficient values exceeding the table correlation value and a total score (RIT) greater than the table correlation value (0.361). Consequently, the questionnaire items on each variable of organizational commitment, information technology, internal control systems, government accounting parameters, quality of financial reports, and good governance are stated to measure all existing differences and can be used to collect data for this study. So [25], [27]; Mohamud, 2013) states that if the test results are declared good, then it is feasible that the research can be continued.

The best way for the government to collect financial data is through the use of information technology, which encompasses (a) the electronic processing of data, information, management techniques, and work processes, and (b) the optimal use of computers, software, databases, networks, electronic commerce, and other types of information technology. Similarly, the results of the reliability testing are designed to assess the instrument's reliability and consistency as a tool for measuring the variables it monitors. Cronbach's Alpha approach is applied to reliability testing. According to the test criteria, if the coefficient of Cronbach's Alpha is less than or equal to 0.60, the questionnaire items are deemed to be reliable or consistent in evaluating the variables they measure Figure 2 depicts a study of a portion of a Least Square (PLS) path diagram

:

.

Fig. 1. Path Analysis direct influence and indirect influence Note: The symbol code above is as follows:

(3)

Yunus Tulak Tandirerung et al (Analysis of Factors Influencing the Quality of Local 1. Organizational commitment (OC/X1)

2. Technology utilization (TU/X2) 3. Internal control system (ICS/X3)

4. Government Accounting Standard (GAS/X4) 5. Qualified of Financial Reports (QFR/Y1) 6. Good Government (GG/Y2)

Models of measurement evaluation This study model consists of six latent variables, including organizational commitment to utilizing information technology, internal control systems, government accounting parameters, financial report quality, and good governance. The evaluation of the measurement model is a phase of validating a latent variable

III. Result and Discussion

Based on the tests, which have been carried out directly or indirectly, can be explained according to the proof of the hypothesis described earlier; the following is presented as the proof as shown in Figure 2. The results of the calculations show that there is an influence from each variable can be seen in Table 1:

Table 1. List of Hypothesis Test Results

No Proposed hypothesis statement Influence

H1 Organizational commitment has a direct effect on Good Government. Positive and Significant H2 Organizational commitment has an indirect effect on Good Government. Positive and Significant H3 Information technology has a direct effect on Good Government. Positive and Significant H4 Information technology has an indirect effect on Good Government. Positive and Significant H5 The internal control system has a direct effect on Good Government. Positive and Significant H6 The internal control system has an indirect effect on Good Government. Not significant H7 Government accounting parameters have a direct effect on good government. Positive and Significant H8 Government accounting standards have an indirect effect on good government. Positive and Significant H9 The quality of financial reports affects good Good Government Positive and Significant

a. Data source: processed

The research findings show the strong influence of exogenous variables (organizational commitment) on endogenous variables (good government management). This opinion is known from the results of the t-statistics test > t-table (1.64). This opinion positively and significantly impacts organizational commitment to the quality of financial reports. This study's findings are consistent with those of previous research, which found that organizational commitment influences the quality of financial reports. In addition, organizational commitment positively influences good governance via the quality of research financial reports, as indicated by a path analysis value of 0.11 and a t-statistic of 3.75. The test findings indicate that the route analysis has a positive value and that t-statistics are greater than t-table (1.64). This perspective indicates that organizational dedication to GG has a favorable and substantial impact. Consistent with other research [27], the findings of this study indicate that organizational commitment influences the quality of financial reports.

The impact of information technology on the quality of financial reporting is demonstrated by a path analysis value of 0.118 and t-statistics of 3.056. The test outcomes indicate that the route analysis is positive, and t-statistics are greater than t-table (1.64). This opinion shows that information technology has a direct and substantial impact on the caliber of financial reports. The route analysis value of 0.066 and the t-statistics value of 2.101 demonstrate that information technology has a positive and significant direct effect on good government. The test outcomes indicate that the route analysis is positive, and t-statistics are greater than t-table (1.64). This opinion indicates that information technology has a favorable and substantial impact on effective governance. According to previous research [29], information technology plays an important role since it has a direct and considerable positive impact on effective governance.

The internal control system influences the quality of financial reporting directly. The route analysis value of 0.056 and the t-count of 1.118 support this conclusion. The test findings indicate that the path

(4)

analysis is positive, as indicated by the t-statistics and t-table (1.64). This opinion indicates that the effect of the internal control system on the quality of financial reports is good but insignificant. This study does not follow the findings [16].

In addition, the internal control system has no effect on the quality of government, since the path analysis value is -0.046 and the t-statistic is 0.982. The findings of the test indicate that the path analysis is negative t-statistics t-table (1.64). This perspective indicates that the internal control system has a negligible and negative impact on Good Government.

Government accounting characteristics influence the quality of financial reports directly. This view has a t-statistic of 8.283 and a path analysis value of 0.422. The test findings indicate that the route analysis value is positive and that t-statistics are greater than t-table (1.64). According to earlier research [9], [30], government accounting characteristics have a favorable and statistically significant impact on the quality of financial reports. With a path analysis value of 0.028 and a t-statistic of 0.642, government accounting characteristics indirectly impact good government. The test findings indicate that the route analysis is positive and that t-statistics are greater than t-table (1.64). This assertion is consistent with the findings of [7] and Kidwell et al. (2019), which demonstrate that government accounting parameters have a positive and statistically significant effect on Good Government [21].

The quality of financial reporting has a direct bearing on the effectiveness of government. This view has a route analysis value of 0.714 and a t-statistic of 16,815 The test findings indicate that the route analysis value is positive and that t-statistics are greater than t-table (1.64). This perspective indicates that there is a positive and considerable direct influence, and that the quality of financial reports has a direct impact on the effectiveness of government. The findings of this study concur with those of Herath and Albarqi (2017) and Das and Kumar (2018), who found that the quality of financial disclosures promotes good governance. The purpose of proving the indirect effect hypothesis is to determine if exogenous variables have an indirect effect on endogenous variables via intervening variables. The path analysis value of 0.198 and the t-statistic of 5.891 indicate that organizational commitment influences good governance indirectly through the quality of financial reports. The test outcomes indicate that the route analysis is positive, and t-statistics are greater than t-table (1.64). The quality of financial reporting has a favorable and considerable indirect effect on an organization's commitment to good governance, according to the findings of this study. Consistent with previously completed research, this study demonstrates that organizational commitment promotes excellent government.

Through the quality of financial reports, information technology indirectly impacts good government. According to this opinion, route analysis yields a value of 0.085 and a t-statistic of 3.007.

The test findings indicate that the route analysis is positive and that t-statistics are greater than t-table (1.64). According to previous studies [18], [31], information technology has a favorable and considerable impact on good governance via the quality of financial reports.

A path analysis returns a value of 0.040 and a t-statistic of 1.115, demonstrating that the internal control system indirectly influences good governance through the quality of financial reporting. The route analysis test produces positive results, and the t statistics t-table is significant (1.64). This perspective indicates that the effect of the internal control system on good governance indirectly influences the quality of financial reporting.

Because route analysis reveals a value of 0.301 and t-statistics of 7.431, government accounting criteria indirectly affect good governance via the quality of financial reporting. Path analysis test findings indicate a positive value and t statistics > t-table (1.64). This analysis confirms previous findings [7], [9], [18] that the quality of financial reports has a positive and statistically significant effect on the government accounting criterion for good governance. The equation 1: Y1 = 0.277% X1 + 0.1187% X2 + 0.4227% X3 + 0.056% X4 corresponds to the structural model described by the preceding table. This is how these equations can be explained:

The direct impact of organizational commitment on financial report quality is 0.277*. These results indicate that organizational commitment has a significant impact on the quality of financial reports.

This opinion argues that the improvement in financial report quality is proportional to the degree of organizational commitment. Currently, the direct impact of information technology on the quality of financial reports is 0.118*. This viewpoint indicates that information technology has a significant influence on the quality of financial reports. According to earlier research [5], [32], the sophistication

(5)

Yunus Tulak Tandirerung et al (Analysis of Factors Influencing the Quality of Local of information technology increases the quality of financial reporting correspondingly. In addition, the internal control system has an indirect influence of 0.422%* on the quality of financial reporting.

This study demonstrates that the internal control system has a major effect on financial reporting quality. This opinion argues that the quality of the internal control system influences the quality of financial reporting. Government accounting standards have a direct influence of 0.56 on the quality of financial reports. This study found that government accounting characteristics had a positive and negligible effect on the quality of financial reporting. This perspective implies that, although the rise is not statistically significant, the higher the government's accounting standards, the higher the quality of its financial reporting. While Equation 2 : Y2 = 0.112 X1 + 0.066 X2 + 0.028 X3 - 0.046 X4 + 0.714 Y1, from the second parameter it is explained that:

The direct influence of organizational commitment to good government is 0.112*. This opinion shows that organizational commitment has a significant effect on good government. The higher the organizational commitment, tends to improve Good Government. Then the direct influence of information technology on Good Government is worth 0.066*. This judgment demonstrates that the usage of information technology has a substantial impact on effective government. This indicates that Good Government improves as information technology tends to advance.

Meanwhile, the internal control system has a direct effect of 0.028 on good governance. The results of the study demonstrate that the internal control system has a favorable and substantial impact on good government. This indicates that the better the internal control system, the more likely it is that good governance will improve, albeit the increase is not statistically significant. Then the direct influence of the implementation of government accounting parameters on good government is -0.046.

This opinion shows that implementing government accounting parameters has a negative and insignificant effect on good government. The results of this study follow the results of research conducted [9], [32], stating that the better the implementation of government accounting parameters, the tendency to reduce good governance, although the decrease is not significant. While the coefficient of the indirect effect of organizational commitment to good governance through the quality of financial reports. This opinion explains that the higher the quality of financial reports, the higher the organizational commitment, which improves good governance.

In addition, a 0.08 percent improvement in the quality of financial reports is an indirect benefit of information technology on good governance. This opinion indicates that the impact of information technology on good governance has a significant effect on the quality of financial reporting. This viewpoint indicates that financial report quality is proportional to the sophistication of information technology. This viewpoint tends to improve government administration.

Similarly, the indirect effect of the internal control system on good governance through the quality of financial reporting is 0.301*. This perspective indicates that the efficacy of the internal control system has a significant impact on the quality of financial reporting. This opinion implies that the quality of the financial reports is proportional to the effectiveness of the internal control system. This perspective tends to foster good governance. In addition, the quality of financial reporting has an indirect 0.04-value influence on the application of government accounting rules for good governance.

This view illustrates that adhering to government accounting laws has a positive and negligible impact on the quality of financial information and on good governance. The findings of this study are congruent with those of earlier research. [33] indicating that the improved adoption of government accounting guidelines resulted in higher quality financial reports. Knowing tends to promote excellent governance, albeit the improvement is not statistically significant.

Based on the preceding explanation, table 1 demonstrates that the exogenous factors exert a preponderant influence on the endogenous variables, which may be determined by the most significant overall effect regardless of the sign of the coefficient, positive or negative. In order to provide a clear picture of the effect of exogenous variables on endogenous variables, table 2 shows:

Table 2. Effect of exogenous variables on endogenous variables

Exogenous Endogenous Total Coefficient

Organizational Commitment Quality of Financial Reports 0.277 Organizational Commitment Good Governance 0.309

(6)

Technology Utilization Quality of Financial Reports 0.118 Technology Utilization Government Accounting Standard 0.150 Internal Control System Quality of Financial Reports 0.422 Internal Control System Government Accounting Standard 0.330 Government Accounting Standard Quality of Financial Reports 0.056 Government Accounting Standard Government Accounting Standard -0.006 Quality of Financial Reports Government Accounting Standard 0.714

b. Source: PLS calculation results

The findings of the investigation indicate that the internal control system has the greatest total effect on the quality of financial reports, with a total effect of 0.422%. Therefore, the internal control system has the most significant impact on the quality of financial reporting. In the meantime, the quality of financial reporting has the greatest influence on good governance, with a total effect of 0.714%. Consequently, the quality of financial reports becomes the variable with the greatest impact on good governance

IV. Conclusion

This study, when viewed from the first equation, shows that organizational commitment, information technology, and internal control systems significantly affect the quality of financial reports. In contrast, the implementation of government accounting parameters has a positive effect on the quality of financial reports. Then the second equation shows that organizational commitment, and information technology, have a significant effect on good governance, and the internal control system has a positive and insignificant effect on good governance. Implementing Government Accounting Standards has a negative effect and is not significant to good governance. Organizational commitment, technology, and internal control systems significantly affect good governance through the quality of financial reports. In contrast, implementing accounting parameters has a positive and insignificant effect on good governance through the Quality of Financial Reports.

References

[1] Y. Quan, S. Li, and S. Liang, “Chasing political resources by listed companies: a perspective on hiring non-local independent directors from Beijing,” China J.

Account. Stud., vol. 5, no. 3, pp. 361–378, Jul. 2017, doi:

10.1080/21697213.2017.1383056.

[2] N. Sangperm, “Factors affecting organizational commitment of employees of Autonomous University,” PSAKU Int. J. Interdiscip. Res., vol. 6, no. 1, 2017.

[3] C. B. Agyemang and S. B. Ofei, “Employee work engagement and organizational commitment: A comparative study of private and public sector organizations in Ghana,” Eur. J. Bus. Innov. Res., vol. 1, no. 4, pp. 20–33, 2013.

[4] P. Kihara, H. Bwisa, and J. Kihoro, “The role of technology in strategy

implementation and performance of manufacturing small and medium firms in Thika, Kenya,” Int. J. Bus. Soc. Sci., vol. 7, no. 7, pp. 156–165, 2016.

[5] O. N. Joseph, O. Albert, and J. Byaruhanga, “Effect of internal control on fraud detection and prevention in district treasuries of Kakamega County,” Int. J. Bus.

Manag. Invent., vol. 4, no. 1, pp. 47–57, 2015.

[6] M. M. Yusof, A. Papazafeiropoulou, R. J. Paul, and L. K. Stergioulas,

“Investigating evaluation frameworks for health information systems,” Int. J. Med.

Inform., vol. 77, no. 6, pp. 377–385, Jun. 2008, doi: 10.1016/j.ijmedinf.2007.08.004.

[7] R. Nado, M. Chams, J. Delisio, and W. Hamscher, “COMET: An application of model-based reasoning to accounting systems,” AI Mag., vol. 17, no. 4, p. 55, 1996.

[8] P. Spanos and K. Liapis, “International Accounting Standards, Budgeting and

Controlling in Private and Public Sector,” KnE Soc. Sci., pp. 107–130, 2018.

(7)

Yunus Tulak Tandirerung et al (Analysis of Factors Influencing the Quality of Local

[9] A. Florou, U. Kosi, and P. F. Pope, “Are international accounting standards more credit relevant than domestic standards?,” Account. Bus. Res., vol. 47, no. 1, pp. 1–

29, Jan. 2017, doi: 10.1080/00014788.2016.1224968.

[10] O. Hasiara and A. M. Diah, “REGIONAL GOVERNMENT MANAGEMEN STRATEGY IN ACHIEVING UNQUALIFIED OPINION (UQO) IN EAST KALIMANTAN PROVINCE, INDONESIA,” in PROCEEDING OF MEDAN INTERNATIONAL CONFERENCE ECONOMICS AND BUSINESS APPLIED, 2019, vol. 1, no. 1, p. 59.

[11] S. K. Herath and N. Albarqi, “Financial reporting quality: A literature review,” Int.

J. Bus. Manag. Commer., vol. 2, no. 2, pp. 1–14, 2017.

[12] J. F. Andry, “Perancangan Arsitektur Bisnis Pada Industri Aluminium Foil Menggunakan Togaf,” IT J. Res. Dev., vol. 5, no. 1, pp. 98–108, 2020, doi:

10.25299/itjrd.2020.vol5(1).4755.

[13] P. E. Juliana Jaya, M. S. Utama, I. G. W. Murjana Yasa, and N. N. Yuliarmi,

“Improving competitiveness and well-being through human resources quality, local culture, and product performance,” Cogent Bus. Manag., vol. 7, no. 1, p. 1831247, Jan. 2020, doi: 10.1080/23311975.2020.1831247.

[14] I. Literat and V. P. Glaveanu, “Distributed creativity on the internet: a theoretical foundation for online creative participation,” Int. J. Commun., vol. 12, p. 16, 2018.

[15] H. Tae and C. Kim, “Oscar Hemer and Thomas Tufte (Eds.), Voice + Matter:

Communication, Development and the Cultural Return, Göteborg, Sweden:

Nordicom, 2016, 266 pp., €32 (paperback).,” vol. 12, pp. 3784–3787, 2018.

[16] A. G. Koutoupis and E. Pappa, “Corporate governance and internal controls: a case study from Greece,” J. Gov. Regul., no. 7, Iss. 2, pp. 91–99, 2018.

[17] D. Palupi and B. H. Santoso, “An empirical study on the Theory of Planned Behavior: The effect of gender on entrepreneurship intention,” J. Econ. Business, Account. Ventur., vol. 20, no. 1, pp. 71–79, 2017.

[18] F. Kabuye, J. Kato, I. Akugizibwe, and N. Bugambiro, “Internal control systems, working capital management and financial performance of supermarkets,” Cogent Bus. Manag., vol. 6, no. 1, Jan. 2019, doi: 10.1080/23311975.2019.1573524.

[19] Z. Ahmed, E. Eryilmaz, and A. I. Alzahrani, “IS diffusion: A dynamic control and stakeholder perspective,” Inf. Manag., vol. 59, no. 1, p. 103572, Jan. 2022, doi:

10.1016/j.im.2021.103572.

[20] R. B. Sharma and N. A. Senan, “A study on effectiveness of internal control system in selected banks in saudi Arabia,” Asian J. Manag. Sci., vol. 8, no. 1, pp. 41–47, 2019.

[21] A. I. Morais and A. I. Morais, “Are changes in international accounting standards making them more complex ?,” Account. Forum, vol. 0, no. 0, pp. 1–29, 2019, doi:

10.1080/01559982.2019.1573781.

[22] I. Astuti, “The implementation of ADDIE model in developing career guidance program in senior high school,” J. Educ. Teach. Learn., vol. 4, no. 1, pp. 174–179, 2019.

[23] S. Soeharjoto, D. A. Tribudhi, and L. Nugroho, “Fiscal regency and city capacity in East Kalimantan in the era of regional autonomy,” Int. J. Econ. Bus. Account. Res., vol. 4, no. 02, 2020.

[24] A. Ong, “The failure of international accounting standards convergence: A brief history,” Rev. Integr. Bus. Econ. Res., vol. 7, no. 3, pp. 93–105, 2018.

[25] H. A. Mohamud, “Internal auditing practices and internal control system in Somali Remittance Firms,” Int. J. Bus. Soc. Sci., vol. 4, no. 4, 2013.

[26] H. Zhou, C. Zhou, W. Lin, and G. Li, “Corporate governance and credit spreads on

(8)

corporate bonds: an empirical study in the context of China,” China J. Account.

Stud., vol. 5, no. 1, pp. 50–72, Jan. 2017, doi: 10.1080/21697213.2017.1292722.

[27] L. O. Hasiara, Sudarlan, and A. M. Diah, “Regional government management strategy in achieving unqualified opinion (UQO) in east Kalimantan Province, Indonesia,” Int. J. Innov. Creat. Chang., vol. 12, no. 9, pp. 271–282, 2020.

[28] H. La Ode and A. M. Diah, “Sudarlan, Metode Penelitian Terapan Kualitatif dan Kuantitatif Untuk Pendidikan Vokasi Khusus Humaniora.” Malang, Jawa Timur Indonesia: CV IRDH, 2019.

[29] N. Sehwani, S. Rahman, and A. Harris, “QoS Parametric Inspection of Uniform and Assorted Trajectories for MANET Routing Protocols,” Int. J. Commun. Netw. Syst.

Sci., vol. 10, no. 10, 2017.

[30] G. Maier, “Grant Bollmer, Inhuman Networks: Social Media and the Archaeology of Connection,” Int. J. Commun., vol. 12, p. 4, 2018.

[31] R. Andika Thio Rahman, G. Irianto, and R. Rosidi, “Evaluation of E-Budgeting Implementation in Provincial Government of DKI Jakarta Using CIPP Model Approach,” J. Account. Invest., vol. 20, no. 1, 2019, doi: 10.18196/jai.2001110.

[32] O. Zedadra et al., “The Commissioner of Law,” Freni, G., La Loggia, G., Notaro, V., McGuire, TJ, Sjoquist, DL, Longley, P., Batty, M., Chin, N., McNulty, J., Tver.

KAA,… Thesis, A, pp. 1–14, 2019.

[33] K. A. Rahayu and D. Setiawan, “Apakah konvergensi International Financial Reporting Standards meningkatkan relevansi nilai informasi akuntansi?,” J. Ekon.

Analysis of Factors Influencing the Quality of Local Government Financial Reports