Accountability and perception of prosocial behavior in village fund management

Abstract

This study examines organizational commitment and competency in Indonesia as a moderator of prosocial behavior toward village fund management accountability. Transparency and accountability are essential in the village government’s role as the custodian of public funds (Taufiqi & Ariani, 2022). Central and local governments implemented public accountability to improve governance (Suwanda & Suryana, 2021). Prosocial conduct and accountability in the management of village funds are the focus of this study. The data were collected through the distribution of questionnaires to each and every village throughout Indonesia. The sample was obtained using a simple random sampling technique from all village officials throughout Indonesia, with a total of 689 people responding to the survey. The data for this analysis were analyzed using the SmartPLS. Prosocial behavior affects village fund management accountability, a study found. Organizational commitment has a moderating effect on the relationship between prosocial behaviour and accountability of village fund management, while village official’s competence does not. This study shows that the variable competence of the village official is feasible to be used as a moderating variable in the relationship between prosocial behavior and accountability, so the researchers recommend this variable be used to moderate it with other variables that may affect accountability.

The Village Fund Program and Indonesia’s 18th Sustainable Development Goal: A Bibliometric and Content Study

“…Good internal control systems and village governance affect the quality of financial reports and the occurrence of fraud [76,77]. Accountability depends on individuals or organizations and is the responsibility of all parties related to organizational interests [78]. The government's main focus is accountability for VF management through village-owned enterprises because it reflects good governance [79].…”

“…Fraud in managing village funds is generally caused by the dysfunctional role of village assistants in managing village funds [74,[99][100][101]. Accountability for managing village funds has become a demand for the village government [78,102]. Management and utilization of Village Fund Allocation (ADD) is used to finance Village Government programs in carrying out government activities and community empowerment.…”

Determinants of Performance of Village-Owned Enterprises in Improving Village Development Performance

“…In the era of globalization, competition between companies will increase, and one of the keys to success in winning the competition is the need for quality human resources (HR). (Diansari et al, 2023) The research shows that the competency variable of village officials is suitable to be used as a moderating variable in the relationship between prosocial behavior and accountability, so researchers suggest that this variable be used to moderate other variables that might influence accountability. Several studies conducted by (Darmaileny et al, 2022), (Adi Kurniawan Saputra et al, 2021), (Ekaningrum (2021), (Mulang, 2023), (Ningsih 2021), (Sika et al, 2022), (Sriyono 2020) and (Suzanti et al, 2021) stated that human resource competence has a positive influence on performance.…”

Village Government’s Risk Management and Village Fund Administration in Indonesia

“…The administration of village funds encounters a range of challenges, encompassing the potential ramifications of a lack of transparency, the risk of authority abuse, the potential for legal infractions, the possibility of fraudulent practices, and the potential for mismanagement resulting in the failure of fund administration. Acquiring a thorough comprehension of the potential hazards linked to the administration of village finances is an essential endeavor for village governments aiming to improve the effectiveness and efficiency of their practices in managing village funds [25,26]. The early identification and implementation of appropriate risk control procedures by village fund managers can successfully limit potential risks, so ensuring the prevention and resolution of any emerging concerns.…”

“…20/2018, which specifically focuses on Village Financial Management. By gaining an understanding of the potential risks involved in handling village finances, village governments, in their role as financial managers, can improve their ability to plan and develop appropriate strategies to prevent or reduce any negative outcomes that may occur [25,26]. In the event of the insufficient implementation of risk management strategies, administrators responsible for village funds may face unforeseen risks, such as the unauthorized diversion of funds, violations of legal regulations, and inadequacies in the management of village finances.…”