Reconstruction of the Accounting System for the Bioposka Fertilizer Inventory: The Application of Soft Systems Methodology in the Botanic Garden of Indonesia

Abstract

The government must have an accounting system that contains the procedures for and requirements of managing resources owned, as a reliable accounting system is a reflection of the government's accountability for the public and is useful in designing policies to realize good governance. This study identifies several key issues related to the implementation of an accounting system for the bioposka fertilizer inventory, such as: inadequate recording of bioposka fertilizer, measurement of bioposka fertilizer based on selling price, inadequate presentation of the bioposka fertilizer inventory in the Balance Sheet and of expenses in the Operational Report, insufficient disclosure notes to financial statements, and supporting issues including a lack of employee competency and the less-than-optimal role of General Bureau as inventory manager. Using Soft Systems Methodology (SSM 1 ), this research performs a reconstruction of the accounting system through four stages, namely: identifying the problematical situations which are then depicted in a rich picture, creating a conceptual model, carrying out a discussion, and formulating recommendations. It is suggested that those problematical situations be resolved by the related actors and institutions undertaking the following actions: repairing the inventory accounting procedure of the bioposka fertilizer, improving employee competency, and optimizing the role of General Bureau as the inventory manager. This research can be used as the basis on which to design an accounting system consisting of procedures and policies related to the accounting treatment of the bioposka fertilizer in the Botanic Garden of Indonesia.