Digital Financial Management Systems in Public Elementary Schools: Enhancing Transparency and Stakeholder Trust

Abstract

This study aims to examine how digital financial management systems shape transparency, accountability, and stakeholder trust in public elementary schools. A qualitative single-case study design was employed. Data were collected through semi-structured in-depth interviews with six purposively selected informants (the principal, treasurer, system administrator, school committee chair, a parent representative, and the school supervisor) and through analysis of official documents generated by the school activity and budget plan application (ARKAS) and the school procurement information system (SIPLah). Data were analysed thematically and validated through source and technique triangulation. The results show that digitalisation operates through two complementary pathways. The process pathway reduces manual workload, prevents input errors and duplicate receipts through system validation, and supports data-based budget allocation. The disclosure pathway produces itemised reports, standardised budget codification, and procurement records with explicit tax components that committee members, parents, and supervisors can verify. Document analysis confirmed traceability between budget lines and purchase orders, as illustrated by a tarpaulin item recorded identically in ARKAS and SIPLah. Informants reported higher trust, stronger committee support, and simpler audits, while server downtime, power outages, and sudden application updates remained constraints. The study implies that digital systems strengthen trust when they are combined with active disclosure to stakeholders rather than treated as reporting tools for government alone; education offices should therefore invest in infrastructure resilience, operator capacity, and committee-facing reporting practices.