Evaluation of the Implementation of Internal Control of Financial Reporting (ICOFR) on Maintenance Expenditure: Case Study of State Institution “X”
DOI:
https://doi.org/10.59188/eduvest.v5i10.51353Keywords:
Internal Control over Financial Reporting (ICoFR), Government Financial Internal Control, Maintenance Expenditure, Public Sector AccountabilityAbstract
This study evaluates the implementation of Internal Control over Financial Reporting (ICoFR) in maintenance expenditures at Government Institution X in Indonesia from 2019 to 2023. The objective is to assess the effectiveness of ICoFR, identify weaknesses in financial control, and propose improvements. This research employs a case study strategy with a qualitative descriptive approach. Data collection methods include semi-structured interviews, document analysis, and a review of audit reports from the Indonesian Supreme Audit Board (BPK). The research framework is based on the Minister of Finance Regulation No. 17/PMK.09/2019, which incorporates the COSO Internal Control Framework as its core reference. The findings indicate that ICoFR implementation in Government Institution X is not yet fully effective, as recurring audit findings highlight overpayments, contract discrepancies, and weak monitoring mechanisms. This study contributes to the literature by evaluating ICoFR implementation in a central government institution—an area that remains underexplored in academic research compared to corporate or local government financial reporting. The study also emphasizes the complex interplay of political and bureaucratic factors affecting financial control practices. Strengthening risk assessment, control activities, and compliance monitoring is crucial to improving transparency and accountability in maintenance expenditure management.
References
Adhitya, A. R., & Jalaluddin, J. (2020). Analysis of the implementation of the Government Internal Control System (SPIP) in local government agencies. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 5(4), 492–496. https://doi.org/10.31258/jima.5.4.492-496
Adiputra, I. M. P., Utama, S., & Rossieta, H. (2018). Transparency of local government in Indonesia. Asian Journal of Accounting Research, 3(1), 123–138. https://doi.org/10.1108/AJAR-07-2018-0019
Amin, M., & Fauzi, A. (2013). A case study of two Indonesian PES schemes. Ecological Economics, 85, 1–10. https://doi.org/10.1016/j.ecolecon.2012.10.015
COSO. (2006). Internal control over financial reporting – Guidance for smaller public companies: Vol. III (Evaluation tools). The Committee of Sponsoring Organizations of the Treadway Commission.
COSO. (2017). Enterprise risk management: Integrating with strategy and performance (Vol. 1). The Committee of Sponsoring Organizations of the Treadway Commission.
Djamil, N., & Yudianto, I. (2019). The effect of internal control system and human resources quality on the quality of financial statements with the utilization of information technology as a moderating variable. In Proceedings of the 2nd International Conference on Accounting, Business, and Economics (ICABEC) (pp. 1–8). https://doi.org/10.1109/ICABEC.2019.8900534
Farradhi, M., & Hartanti, D. (2023). Efektivitas internal control over financial reporting (ICFR) pada project konstruksi perusahaan BUMN karya. Jurnal Ilmiah Akuntansi dan Keuangan, 5(7). https://journal.ikopin.ac.id/index.php/fairvalue
Kaldera, N. X., Aulia, M., & Faza, H. A. (2020). Peran Bpk Sebagai Lembaga Pengawas Eksternal Pengelolaan Keuangan Negara. Jurnal Fundamental Justice, 1(2), 13–26. https://doi.org/10.30812/fundamental.v1i2.898
Masdar, R., Furqan, A. C., Masruddin, M., & Meldawaty, L. (2021a). The role of transparency and professional assistance in regional financial management in the Indonesian regional governments. Journal of Public Affairs, 21(3), e2666.
Masdar, R., Furqan, A. C., Masruddin, M., & Meldawaty, L. (2021b). The role of transparency and professional assistance in regional financial management in the Indonesian regional governments. Journal of Public Affairs, 21(3). https://doi.org/10.1002/pa.2666
Nordiawan, D., Putra, I. S., & Rahmawati, M. (2007). Akuntansi pemerintahan. Penerbit Salemba Empat.
Paranata, A. (2022). The miracle of anti-corruption efforts and regional fiscal accountability. Journal of Public Affairs, 22(2), e2410. https://doi.org/10.1002/pa.2410
Rizaldi, A. (2015). Control environment analysis at government internal control systems. Procedia - Social and Behavioral Sciences, 211, 1081–1088. https://doi.org/10.1016/j.sbspro.2015.11.145
Sunarsih, U., & Nur, S. M. (2023). Disclosing the practice of internal control over financial reporting (PIPK) at the Supreme Court of the Republic of Indonesia. Jurnal Akuntansi dan Auditing Indonesia, 27(2), 157–172. https://doi.org/10.20885/jaai.vol27.iss2.art4
Virginia, E., & Hermawan, A. A. (2023). Contemporary accounting case studies (Vol. 8, Issue 1).
Yanuardi, Y., & Yulianto, A. (2021). Improving governance quality through global standard initiatives: Evidence from Indonesia. Journal of Public Affairs, 21(1), e2139. https://doi.org/10.1002/pa.2139
Yin, R. K. (2016). Qualitative research from start to finish (2nd ed.). The Guilford Press.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Fithriyyah Nur Afifah S, Dodik Siswantoro
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
