Assessing the Relationship Between IT Governance, System Success, and Financial Reporting Quality in Local Government

Abstract

              This study examines the relationship between information technology (IT) governance, information system success, and financial reporting quality in local government, focusing on the implementation of the Regional Asset Management Information System (SIMDA-BMD) in Deli Serdang Regency, Indonesia. The study integrates the COBIT 2019 framework to assess IT governance effectiveness, the DeLone and McLean Information Systems Success Model to evaluate system quality, information quality, service quality, system use, and user satisfaction, and the Analytical Hierarchy Process (AHP) to determine improvement priorities. Data are collected through questionnaires and interviews involving SIMDA-BMD operators, regional asset managers, and financial administration personnel. The analytical approach examines the relationships among governance effectiveness, information system success, net benefits, and financial reporting quality. The expected findings provide empirical insights into how effective IT governance and successful information systems contribute to more reliable, relevant, and accountable financial reporting. This study offers an integrated evaluation framework to support digital governance improvement and evidence-based decision-making in local government.