DOES ADMINISTRATION AND ORGANIZING VILLAGE GOVERNMENTS IMPACT THE EFFECTIVENESS OF VILLAGE FINANCE MANAGEMENT? EVIDENCE FROM INDONESIA
The enforcement of law No. 6 of 2014 brings implications to the readiness of the village government in the effective governance of village financial management. “Dana Desa†is one of the Indonesia government program is granting of village funds with approximately value 1 billion Rupiah for each village, making the village government has a big responsibility. The ineffectiveness of Village fund management can lead to increased corruption cases. Indonesia Corruption Watch recorded a case of corruption at the village from 2015 to 2017 respectively, 17 cases, 41cases and 96 cases with a total case of findings of 154 cases. Therefore, effective village financial management is essential and a must to be implemented. The effectiveness financial management can be influenced by administration and government organizing. This research is a basic study with associative methods and analyzed with multiple linear regression. The data collected is the primary data of the questionnaire conducted with the direct survey and mail survey. The population in this research is all village officers in Indonesia that are involved in the village financial management cycle, include village chief and technical executor of village finance management consist of village secretary, village treasurer and head of section. The distributed questionnaire amounted to 250 consisting of 70 questionnaires with direct surveys and 180 questionnaires with a mail survey. The return of 90% (63 questionnaires) direct survey and Mail survey is 75% (135 questionnaires). The number of returning questionnaires was 198 questionnaires. The results of this study showed that administration and the government organizing could affect the effectiveness of village financial management. Thus, the village government must be able to administer and organize its governance to achieve effective village financial management. Therefore, it is expected to have implications for reduced corruption cases of village funds in Indonesia.