Management of Financial Reporting and the Opinions of Executives and Stakeholders on the Problems and Development of Financial Reporting Quality in Health Region 12

Abstract

Abstract: This study aims to investigate the management of financial reporting and the opinions of executives and stakeholders regarding the problems and development of financial reporting quality in Health Region 12. The objective is to identify solutions and improve the quality of financial reporting in accordance with accounting standards and government accounting policies. This is a mixed-methods study, combining quantitative and qualitative approaches. Quantitative data was collected through questionnaires distributed to accounting and supply personnel in Provincial Public Health Offices (PPHO), Provincial Hospitals (PH), and Community Hospitals (CH). Qualitative data was gathered through interviews with executives and personnel from central agencies responsible for developing financial reporting quality, as well as executives and those in charge of controlling and supervising the quality of financial reporting in Health Region 12. Results: Quantitative findings revealed that the average length of service in accounting and supply functions was approximately 9 and 8 years, respectively. A significant proportion of accounting and supply personnel had received training in laws and regulations, with a strong demand for further training in related laws, regulations, and mentorship. Training was positively correlated with knowledge and experience at a statistically significant level of 0.01 (r = 0.409, p<0.01). Qualitative findings indicated that executives and agencies responsible for developing financial reporting quality, as well as executives and those in charge of controlling and supervising the quality of financial reporting in Health Region 12, agreed that there was a shortage of accounting and supply personnel. Other personnel had high turnover rates due to a lack of career advancement. Accounting and supply personnel were also found to lack knowledge and experience. Central agencies noted that regional units maintained two accounting systems (Government Financial Management Information System (GFMIS) and General Ledger (GL)), leading to inconsistencies in accounting data. Additionally, there was a lack of data sharing and inadequate oversight among finance, supply, and accounting functions to ensure compliance with accounting standards and government accounting policies. Executives in charge of controlling and supervising the quality of financial reporting in Health Region 12 suggested developing software to reduce workload, establishing a mentorship system at the provincial, regional, and national levels. Recommendations:  Central agencies should develop a national-level mentorship system, as well as regional and provincial mentorship programs. Establish an online knowledge management (KM) center for accounting, finance, and supply. Develop shared software for regional use, integrate the GL and GFMIS systems to enable single data entry.  Increase the number of accounting and supply personnel. Regional units should improve their work systems and establish a control and supervision system for accounting, finance, and supply functions to ensure compliance with accounting standards and government accounting policies. Develop a cross-checking system among provinces within the health region.

Keywords: management of financial reporting; Government Accounting Standards; government accounting policies