Leveraging the Dalan Ba Futuru system to enhance the relationship between financial accountability and institutional performance in Timor-Leste
DOI:
https://doi.org/10.33474/jisop.v8i2.25233Keywords:
financial accounting, public financial management, institutional performanceAbstract
In Timor-Leste, the shift to program-based budgeting requires robust accountability mechanisms to ensure public funds effectively enhance institutional performance. However, there is a lack of evidence regarding how accountability- specifically in planning, monitoring, and evaluating-relates to performance outcomes within the local context. Furthermore, the role of the Dalan Ba Futuru System (DBFTL), a web-based management tool, in moderating these processes remains under-researched. Objective: this study examines the influence of accountability in planning, monitoring and evaluation on the quality of state institution performance in Timor-Leste, and analyzes whether the DBFTL moderates theses relationship. Methodology: this study adopts a qualitative research design, utilizing primary data collected through questionnaires from 157 respondents, including government directors and technical staff involved in financial management. Data were analyzed using Partial Least Squares Equation Modeling (PLS-SEM). Findings: Empirical results indicate that accountability in monitoring has a significant positive effect on institutional performance (β= 0.346, p = 0.004), whereas planning and evaluation accountability show positive but insignificant effect. Notably, the DBFTL significantly moderates and strengthens the relationships between accountability practices and institutional performance ((β = 0.582, p < 0.001). Implications: The findings demonstrate that digital information system are critical for public sector reform, providing empirical support for the government to prioritize the integration of DBFTL System to enhance transparency and budget effectiveness.
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