Good Village Governance: Internal Control Model of Village Funds Management
Abstract
This study aims to identify the activities and construct an internal control model of village funds management based on the Regulation of Ministry of Home Affairs No. 20 of 2018. The internal control model can be used to actualize good village governance. This study attempts to conduct in-depth interview to village officials and observation in Jambu District, Semarang. Based on the results of this study, the village funds management defines the activities as follows: (a) preparing the budget plan based on the programs set in Village Government Budget (APBDes) proposed as development, government, empowerment, and social activities; (b) carrying out the activities; (c) accountability; and (d) evaluation. Further, the fundamental components of internal control are control environment as the integrity and village officials’ ethics, the leadership of village chief, and the accountability. When village officials possess a strong integrity and ethics, frauds can be minimized. In the other hand, the financial statement is accountable. Besides, the democratic leadership of village chief can increase the accountability and communication so that the policy can be implemented properly as the objectives proposed. Furthermore, it is important to explore the role of society in internal control system of village funds management.
Keywords: internal control, village funds management, good village governance
References
[1] Bjork, P.G. and Johansson, H.S.H. (2001). Towards Governance Theory: In Search for a Common Ground. Bjork-Johnson 2001 pdf. IPSA.
[2] Undang-Undang Nomor 6 Tahun 2014 tentang Desa.
[3] Peraturan Pemerintah Nomor 60 Tahun 2014 tentang Dana Desa.
[4] Johan, Satriajaya., Handajani,Lilik., & I Nyoman Nugraha Ardana Putra. (2017). Turbulensi dan Legalilisasi Kleptokrasi Dalam Pengelolaan Keuangan Desa. Jurnal Akuntansi Multiparadigma. Vol 8, No 2
[5] Warikiba, Ngahu, and Wagoki. (2014). Effects of Financial Controls on Financial Management In Kenya’s Public Sector A Case of National Government Departments In Mirangine Sub County. Nyadarua County. IOSR Journal of Business and Management. Vol 16 Issue 10 Ver. III PP 105-115.
[6] Susilowati, N., Herdiani, A., and Widhiastuti, R. 2018. Village Community Participation Model in Village Funds Management to Exteriorize the Accountability. KnE Social Sciences / International Conference on Economics, Business and Economic Education 2018 (ICE-BEES 2018) /Pages 1024–1038
[7] Peraturan Menteri Dalam Negeri Republik Indonesia Nomor 20 Tahun 2018 Tentang Pengelolaan Keuangan Desa.
[8] Azfar, O., Kähkönen, S., Lanyi, A., Meagher, P. and Rutherford, D., (2004). Decentralization, Governance and Public Service: The Impact of Institutional Arrangements. In: Kimenyi, M.S. and Meagher, P., eds. Devolution and Development: Governance Prospects in Decentralizing States. Aldershot: Ashgate, pp. 19-62.
[9] Robinson. (2007). Does Decentralization Improve Equity and Efficiency in Public Service Delivery Provision?. IDS Bulletin. Volume 38 Number 1 January 2007. Pp. 7-17. [Online]Available at http://onlinelibrary.wiley.com/doi/10.1111/j.1759-5436.2007.tb00333.x/pdf [Accessed June 12, 2012]
[10] Muriu1, Abraham Rugo. (2014). How does Citizen Participation impact Decentralized Service Delivery? Lessons from the Kenya Local Authority Service Delivery Action Plan, (LASDAP, 2002-2010).
[11] Inten, Meutia, &Liliana.(2017). Pengelolaan Keuangan Dana Desa. Jurnal Akuntansi Multiparadigma. Vol 8, No 2.
[12] Santoso, U., dan Pambelum, Y.J. (2008). Pengaruh Penerapan Akuntansi Sektor Publik Terhadap Akuntabilitas Kinerja Instansi Pemerintah Dalam Mencegah Fraud. Jurnal Administrasi Bisnis. 4 (1):14-33.