Financial Management of Allocated Village Fund

摘要

This research focuses on the accountability of the monetary Allocated Village Fund and the factors which inhibit the good management of the Fund by village leaders. The main contribution of this research is to outline the process of the management of Allocated Village Fund by village leaders and to ensure that the management is both transparent and has accountability. This research used the qualitative approach. The data collection was done through interviews, observation of procedures and research of documentation collected by the regional government. The triangulation method was used to ensure the reliability of the research. The outcome of this research is expected to benefit the government of Kampar District in helping to improve the accountability and management of the Allocated Village Fund. This research was conducted in the villages of the Kampar District, Riau Province, Indonesia. Interviews were conducted with the leaders of the villages, the village secretaries and the village treasurers. The result of this research showed that the Funds were managed well by the villages who were obedient to government regulations, transparent, accountable, followed judicial processes, distributed Fund appropriately and benefited the villagers in Kampar District. However, there was one significant factor found that inhibited the implementation and management of the Allocated Village Fund and that was the inadequacy of human personnel (village leaders and government officials). Other factors that could also hinder the implementation and management of the Fund were the processing time for the disbursement of the Fund to the villages and the lack of training of village leaders.