Title:
REGIONAL FINANCIAL MANAGEMENT IN THE GOVERNMENT OF KUTAI TIMUR REGENCY BASED ON LAW NUMBER 23 OF 2014

Authors:
Ratna Dewi Yanti, Titin Ruliana and Imam Nazarudin Latif

Abstract:
This study examines regional financial management in the government of Kutai Timur Regency based on Law Number 23 of 2014. Using Structural Equation Modeling (SEM) and a sample of 108 civil servants (ASN) from the local government, the research analyzes the impact of financial management, accountability, and transparency on the quality of financial statements and financial performance. The results show that regional financial management, accountability, and transparency each have a positive and significant influence on the quality of financial statements. These three variables also positively affect the financial performance of local governments. Additionally, the quality of financial statements significantly contributes to improving financial performance and acts as a partial mediator in the relationships among the studied variables. These findings underline the importance of strengthening internal financial governance, ensuring transparency, and enhancing reporting quality. Local governments are encouraged to optimize their financial information systems (such as SIPKD), improve internal oversight, and develop the capacity of their financial personnel through regular training.