The Influence of Accountability, Transparency, and Oversight on Regional Financial Management (an Empirical Study of The Manado City Government)

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FORMOSA NEWS - Manado - Transparency and Oversight Drive Better Regional Financial Management in Manado, Study Finds. A 2026 study published in the Formosa Journal of Applied Sciences reveals that transparency and oversight play a decisive role in improving regional financial management in Manado, Indonesia. The research was conducted by Br Ginting, Jantje Tinangon, and Dianne Kindangen, academics specializing in public sector accounting and financial governance. Their findings highlight how governance mechanisms shape the effectiveness of public budgeting and financial accountability at the city level an issue increasingly relevant as local governments face growing demands for transparency and efficiency.

Why Regional Financial Governance Matters
Regional financial management has become a central concern for policymakers across Indonesia, particularly as decentralization policies give local governments greater control over budgets. Strong governance systems are expected to reduce corruption risks, improve public trust, and ensure that taxpayer funds are used effectively. In cities like Manado, challenges persist. Issues such as inconsistent tax management, suboptimal performance of local enterprises, and gaps in internal control systems have raised questions about how public funds are managed. Against this backdrop, the study by Br Ginting, Tinangon, and Kindangen provides timely evidence on which governance factors actually make a difference.

How the Study Was Conducted
The researchers used a quantitative research design, focusing on the Manado City Government. Data were collected through structured surveys and analyzed using multiple linear regression.
The study examined three key governance variables:

• Accountability (X1) – the extent to which government actions are reported and justified.
• Transparency (X2) – the openness of financial information to the public.
• Oversight (X3) – the effectiveness of internal and external supervision mechanisms.

These variables were tested against regional financial management performance (Y) to determine both individual and combined effects.

Key Findings at a Glance
The results reveal a nuanced picture of governance in practice:

• Transparency has a positive and significant impact on regional financial management.
• Oversight is the most dominant factor, showing the strongest influence on financial outcomes.
• Accountability does not show a significant direct effect when examined independently.
• All three variables combined significantly influence financial management, indicating a synergistic relationship.
• The model explains 44.5% of the variation in financial management performance, while 55.5% is influenced by other factors.

Statistical testing further confirmed that the combined influence of accountability, transparency, and oversight is significant, with an F-value of 15.450 exceeding the critical threshold.

Real-World Impact and Policy Implications
The findings carry important implications for local governments, policymakers, and public sector institutions:

• Strengthening transparency systems. Governments should expand public access to financial data, including real-time budget reporting through digital platforms.
• Enhancing oversight capacity. Investment in internal audit bodies and risk-based supervision can significantly improve financial outcomes.
• Reforming accountability practices. Shifting from procedural reporting to performance-based evaluation can make accountability more effective.
• Adopting an integrated governance approach. The study shows that no single factor is sufficient. Effective financial management requires coordination between transparency, oversight, and accountability systems.

Beyond policy, the research also highlights broader societal benefits. Improved financial governance can increase public trust, encourage taxpayer compliance, and ensure that development programs deliver tangible results.

Author Profiles
Br Ginting – Researcher in public sector accounting and regional financial management.
Jantje Tinangon – Professor of accounting, specializing in government finance and auditing.
Dianne Kindangen – Academic in financial management and public policy.

Source
Berlianta Br Ginting, Jantje J. Tinango, Wulan D. Kindangen (2026). The Influence of Accountability, Transparency, and Oversight on Regional Financial Management (an Empirical Study of The Manado City Government). Formosa Journal of Applied Sciences (FJAS). Vol. 5, No. 5 2026, Halaman 1299-1318
DOI: https://doi.org/10.55927/fjas.v5i5.61
URL: https://journalfjas.my.id/index.php/fjas