Factors that Affect Pengelolaan Dana Desa and Its Implications on
the Transparency of Financial Report
Sri Sartika, Endar Pituringsih and Lalu Hamdani Husnan
Magister Of Accounting, Faculty Of Economic and Bussines Mataram University, Mataram, West Nusa Tenggara,
Indonesia
Keywords: Apparatur Competence, System of Internal Controlling, Asset Inventory, Pengelolaan Dana Desa,
Transparency of Financial Report.
Abstract: This paper aimed to test and evince from some previous researches: the influence of Apparatus Competence,
System of Internal Controlling and Asset Inventory toward Pengelolaan Dana Desa and its implication to-
ward the Transparency of Financial Report. This was an explanatory research with purposive sampling
method of interpretation, with a sample of 50 respondents. Analyzed with SmartPLS 3.0, the result of this test
showed that apparatus competence as well as System of Internal Controlling had positive and significant
influence toward Pengelolaan Dana Desa. While different result showed that Asset Inventory did not
significantly influence the Pengelolaan Dana Desa. Furthermore, Pengelolaan Dana Desa had positive and
significant influence toward Transparency of Financial Report. The results of this test was retested on the next
re-search with larger sample and wider Determinants of Pengelolaan Dana Desa and its implications toward
the Transparency of Financial Report.
1 INTRODUCTION
Law number 6o year 2014 said that village was
tradition village that was unity of law societies which
had region border to manage and arrange government
affairs, social needs based on society initiation, rights
of derivation and traditional rights acknowledged and
respected in government system of Indonesian
republic therefore in 2016 a number of villages in
Indonesia were 74.754 villages. This number was big
enough number therefore government needs serious
efforts to give programs for village because village
was the most basic autonomy type in Indonesia. In
line with that, government in this time pours
programs for villages in priority agenda that was the
third NAWA CITA “Indonesian development in
fringe areas with consolidating areas and villages in
framework of unite state”.
This Government attention was implemented in
allocation of village fund, and poured in government
regulation number 60 year 2014, village fund was
explained as funding of a source of Indonesia budget
for villages which was transferred through region-al
government budget and used to finance government
realization, development realization, society
guidance and society empowerment. Village fund
was firstly given in 2015 in which government
budgeted 20.776,2 billion for all villages in Indonesia
Allocation of relative village fund surely had
innate risks that were skills of village officials in man-
aging funding allocation, worried about corruption in
village government and the affectivity in developing
process of villages. In Wasistito (2006:96) said that
weakness elements at village government generally
were: (1) quality of human resource at village
officials were still low, (2) Unperfection of regulation
policy about organization of village government.
The difference with previous researches, this test
was done to test and give empiric proof which
influenced management of village fund and its
implication in budgeting report transparency. Several
studies had researched several factors, researched by
Ismail, et all (2016). His researcher showed that the
main problem in this research was the lack of
knowledge of village leaders in management of
village fund. Safwan, et all (2014) in his empiric
study found that competency partially influenced the
performance of local finance
Sartika, S., Pituringsih, E. and Husnan, L.
Factors that Affect Pengelolaan Dana Desa and Its Implications on the Transparency of Financial Report.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 649-655
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
649
The weakness of management system of village
fund was coming from not complete internal control-
ling system. Study done by Santoso (2016) showed
that internal controlling system influenced positively
but not significant to the accountability of local fund.
This was different with Dewi (2016) who found that
internal controlling system did not influence
positively toward the village government fund.
The other factors that influenced village fund
management were asset inventories which became
the important parts of village responsibility reports.
Research of Permatasari (2015) concluded that
village asset management was done with arrangement
which was utilized for village asset inventory.
Simamora (2013) found that quality of financial re-
port was influenced by asset scoring in structural
contexts and asset note record.
Globally, Phenomena happened in village fund al-
location in 2014 based on the results found by com-
mission of corruption eradication that there were
several critical elements in management of regional
budget of village, those were: (1) program and
activities of RPJM Des, RKPDes, APBDes have not
been analogous with aspiration of village society; (2)
cycle of village budget management were managed
professionally; (3) lateness of report arrangement of
village government realization; (4) village asset
management was not efficient and effective.
Based on the explanation of problem in
pengelolaan dana desa and study of previous
researches, this test examined and gave empiric proof
(1) whether apparatus competency of internal control-
ling system, inventory of asset influenced pengel-
olaan dana desa; (2) the influence of pengelolaan
dana desa in budgeting report transparency. This test
was analyzed with Stepwarship Theory approach.
The result of this test was used as the foundation for
repeating test in thesis research with the bigger
sample and increasing the other variables which
influenced pengelolaan dana desa.
2 LITERATURE REVIEW
2.1 Theoretical Basis
Grand theory which based this pilot test was
Stepwardship Theory (Donaldson and Davis, 1991),
which described situation in which management was
not motivated by individual goals but about their
target of main goal for organization needs. This
theory assumed that there was a relationship between
satisfaction and organization success.
Village government as the mandate holder from
society with managing the big relative budget surely
must pay attention the society needs. Village
government as Stepward was motivated by
organization interests with not including individual
interests. In this problem, village government
maximized the use of fund gotten for principle
interest and satisfaction of society. This was created
by village government in programs that was held in
RAPBDes.
In this test, writer gave empiric proof of influence
of pengelolaan dana desa with using Stewardship
theory if this was looked from variable of apparatus
competency with analyzing the role of village
apparatus in budgeting performance with more
setting out the organization interests than individual
interests. Besides that, this theory was used by writer
to test variable of internal controlling system an asset
inventory with analyzing the role of village
government as the Steward in managing village fund
controlling management to create social prosperity.
Based on the study of theory and previous researches,
model of research built by writer can be seen from the
Figure 1 below:
Figure 1. Research method.
2.2 Research Hypothesis Formulation
Definition of competence according to Spencer in
Hermawan (2013) was expression of realization type
and representation, motif, knowledge, attitude, main
behavior therefore this was able to implement job so
well or differ between the average performance and
superior performance. Indicators ordered in this re-
search were belief, values, knowledge, talent,
character, motivation, intellectual skill, and
organization culture. Apparatus competency
influenced in management of village fund that had
been researched by Ismail (2016). The result of
research showed that the power of human resource in
village had significantly not done management of
village fund and apparatus competency was the basic
problem which was faced by village government. In
the other studies, Safwan (2014) showed that
competency together influenced toward performance
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
650
of fund management. Based on the explanation, the
first hypothesis in this test was:
H1: Apparatus competency influenced positively
toward pengelolaan dana desa.
System of internal controlling adhered along
activities and it was influenced by human resource
and only gave belief so that in its implementation had
been done comprehensively with paying attention to
justice aspect and loyalty of informative technology
development, complexity, and characteristic of job
and function of government instance.
In study of Stewardship Theory, internal control-
ling system of village government was a regulation
made by village government internal in
implementation duties and their functions as social
services. This was done to be more efficient in
managing funding administration, especially village
fund that gave contribution to the principles (society)
that was social justice.
Santoso (2016) in empiric study showed that
internal controlling system influenced positively not
significantly toward accountability of local fund. This
was different with research of Dewi (2016) founding
that system of internal controlling did not influence
positively toward performance of budgeting of
village government. Based on the theoretical
explanation and previous studies, the second
hypothesis was:
H2: System of internal controlling influenced
positively toward pengelolaan dana desa.
Regulation of Ministry of Home Affairs number 1
year 2016 about village asset said that village asset
was coming from properties of village itself, bought
or gotten from regional government budget of village
or from valid income. At the 27th point said that
inventory was an activity to do data collection,
registration, and reporting of result of village asset.
Asset inventory was so important to be done by
village government (Steward) to note and organize all
properties, permanent, fluent asset or bequest. All
records of village asset will poured in responsibility
report of village leader as budgeting holder and
property user and finally this was expressed to
principles (society). Permatasari (2015) in her study
concluded that management of village asset was done
with planning that was used and done with inventory
of village asset. Whereas Simamora (2013) found that
quality of funding report was influenced by as-set in
data collection context. The third hypothesis was:
H3: Asset inventory influenced positively to-ward
pengelolaan dana desa.
Pengelolaan dana desa covered: plan, realization,
report, and responsibility. In this case, village was
demanded to be able to create the appropriate
activities with social needs. Siagian (2016) in his
research, he found that a factor obstructing the
implementation of village funding management was
the lack of trenchancy of financial information. In
context of Stepwarship theory of village government
as the agent should deliver financial report as the type
of responsibility of pengelolaan dana desa. This will
prove that agent has been transparency in giving in-
formation of activity realization result and
responsibility of village fund management to society.
Based on the explanation above, the fourth hypothesis
is:
H4: Pengelolaan dana desa influenced positively
toward transpancy of funding report.
3 METHODS
3.1 Population and Sample
This test pilot used research object at government of
east Lombok regency because it had the biggest
population among the other regencies in West of
Nusa Tenggara with 239 villages.
Sample interpretation technique in this test with
probability sampling method was technique giving
the same opportunity or chance for every element of
population being member (Creswell: 220) such was
the case in this test using 50 respondents with criteria
of pengelolaan dana desa: leaders, secretaries, and
treasurers of village.
3.2 Method of Data Analysis
Data gotten from the result questioners was man-aged
with using SmartPLS 3.0. SmartPLS was chosen
because it was able to help writer to get score of latent
variables for prediction. Chin and Newsted (1999 in
Ghozali and Latan) explained that formal model in
PLS described latent variables explicitly with
aggregate linier from variable observation or its
indicators. Weight estimation to create component of
latent variable score was gotten from inner and outer
of model specifically. The result was residual
variance from variable endogen minimize.
Factors that Affect Pengelolaan Dana Desa and Its Implications on the Transparency of Financial Report
651
4 RESULTS AND DISCUSSION
4.1 Test of Outer Model (Evaluation of
Measurement Model)
Evaluation of measurement model or outer model
used to score validity and reliability construct. In
Ghozali & Latan said that testing of validity covered
convergent validity and discriminate. Convergent
validity was how far measurement correlated
positively with alternative steps from the same
construct. To measure the convergent validity was
able to be seen from loading factor for every construct
factor. In Hair and friends (2013), he said that score
of loading factor must be more than 0,7 because latent
variables minimally was able to explain 50 % variants
for every indicator. Loading factor in this test can be
seen at the figure below:
Figure 2: Loading factor.
Based on the loading factor above, this can be seen that
there was indicator scores less than 0, 70. This was caused
because village research was still minim so that questioners
used in this test were newly developed. In Hair and friends
said that loading among 0,40-0,70 must be considered to be
defend-ed. Therefore indicators of apparatus competency,
system of internal controlling, inventory asset, village fund
and transparency of financial report had fulfilled
convergent validity because all loading factors were upper
than 0,50.
Next from test of discriminate validity can be seen at
cross loading with comparing between its indicator
construct correlation and the other indicator correlations
such as at the table 1. below:
Table 1: Crossloading.
IA
KA
PDD
SPI
TLK
IA1
0,793
0,302
0,335
0,379
0,287
IA2
0,868
0,333
0,493
0,347
0,421
IA3
0,620
0,301
0,204
0,357
0,280
KA2
0,241
0,636
0,528
0,426
0,422
KA3
0,200
0,743
0,455
0,455
0,420
KA4
0,457
0,650
0,373
0,210
0,402
KA6
0,244
0,620
0,471
0,267
0,343
KA7
0,172
0,568
0,389
0,270
0,443
PDD1
0,002
0,289
0,580
0,346
0,449
PDD2
0,177
0,485
0,704
0,358
0,458
PDD3
0,339
0,237
0,509
0,276
0,227
PDD4
0,359
0,343
0,534
0,367
0,464
PDD5
0,422
0,423
0,507
0,372
0,505
PDD6
0,381
0,575
0,696
0,547
0,686
SPI5
0,457
0,500
0,592
0,861
0,579
SPI6
0,286
0,334
0,508
0,805
0,472
TLK1
0,527
0,599
0,621
0,526
0,715
TLK2
0,186
0,506
0,687
0,501
0,805
TLK3
0,343
0,366
0,522
0,398
0,664
Source: Output PLS; 2017
From this table, we can see that construct
correlation of apparatus competency with its
indicators has higher score compared with indicator
correlation of apparatus competency with the other
constructs. This showed that reflective indicator has
fulfilled discriminant validity.
Test of reliability aimed to prove accuracy,
consistency, and exactness of instrument in
measuring construct. To measure reliability can be
done with composite reliability with score more than
0,7 for confirmatory research. The result of reliability
can be seen at the table below:
Table 2: Result of validity and reliability test.
No
Variables
Explanation
1
KA
Valid and Reliable
2
SPI
Valid and Reliable
3
IA
Valid and Reliable
4
PDD
Valid and Reliable
5
TLK
Valid and Reliable
Source: Output PLS; 2017
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
652
From table above, this can be explained that
construct variable of apparatus competency, internal
controlling system, asset inventory and pengelolaan
dana desa and financial report transparency have
fulfilled reliability score more than 0,70 for every
variable Ghozali & Latan: 77.
4.2 Test of Inner Model (Evaluation of
Structural Model)
Test structural model with PLS can be seen from R-
Square for every latent variable off endogen as
predictive strength from structural model. R-Square
score in this research can be seen from table below:
Table 3: Score of R-Square (R²)
No
Variable
R²
1
PDD
0,629
2
TLK
0,687
Source: Output PLS, 2017
Based on the table above, R2 for PDD was 0,629
which showed strong model (Ghozali & Latan: 81)
Whereas R2 for TLK was 0,687 including strong
model category.
4.3 Hypothesis Test
The result of hypothesis test can be seen at table 4
below in which this result was gotten from boot-
strapping test with SmartPLS 3.0 software to see
hypothesis support.
Table 4: Path coefficient.
Original
Sample
(O)
Sample
Mean
(M)
Standard
Error
T
Statistics
P
Values
Conclusion
KAPDD
0,471
0,477
0,112
4,196
0,000
Accepted
SPIPDD
0,361
0,364
0,126
2,875
0,002
Accepted
IAPDD
0,106
0,130
0,116
0,919
0,179
Rejected
PDDTLK
0,831
0,838
0,040
20,575
0,000
Accepted
Source: Output PLS, 2017
Result of the first hypothesis test showed that
apparatus competency influenced positively toward
pengelolaan dana desa, this can be seen from table 4
in which T-Statistic of apparatus competency was
4,196 more than T- table (0,164) therefore this can be
concluded that hypothesis accepted. P value was
0,000 smaller than alpha 5% that means significant.
Result of the second hypothesis test showed that
internal controlling management influenced
positively toward pengelolaan dana desa in which T-
Statistic score of asset inventory was 0,919 less than
T-Table 1,64 therefore this can be concluded that the
second hypothesis was rejected. P-value was 0,002
smaller than alpha 5% that means significant.
Result of the third hypothesis test showed that
asset inventory did not influence toward pengelolaan
dana desa in which t-statistic was 0,919 less than t-
table 1,64 therefore this can be concluded that the
third hypothesis was rejected. P-value was 0,179
smaller than alpha 5% that means significant.
Result of the fourth hypothesis showed that
pengelolaan dana desa influenced in transparency of
funding report, in which t-statistic score of pengel-
olaan dana desa was 20,575 more than t-table 1,64
therefore this can be concluded that the fourth
hypothesis was accepted. P-value was 0,000 smaller
than alpha 5% that means significant.
4.4 Discussion
4.4.1 The Influence of Apparatus
Competency toward Management of
Village Fund
Based on the result of test, this gave empiric proof
that apparatus competency influenced toward
pengelolaan dana desa. This is analogous with Ismail
(2016) and Safwan (2014) which stated that strength
of human resource in village has not significantly
done pengelolaan dana desa.
Contribution of Stewardship Theory in management
of village fund where every individual was en-gaged
in pengelolaan dana desa worked with giving priority
of organization interest and did not see individual for
principle justice.
Result of statistical analysis proved that apparatus
competency influenced positively in pengelolaan
dana desa. This means that village apparatus must
have knowledge about regulation of village fund
management, talent, especially accounting skill, was
needed also motivation to work responsibly and also
culture implemented in village government. With
success of management of village fund, program
arranged by village government in regional
government budget of village has been in exact target
supported by competency of quality apparatus.
4.4.2 The Influence of Internal Controlling
System toward Village Fund
Result of analysis in system of internal controlling
influenced positively toward pengelolaan dana desa.
In village government, internal controlling
environment was implemented to build its internal
system; those were scoring of work risk, evaluation
Factors that Affect Pengelolaan Dana Desa and Its Implications on the Transparency of Financial Report
653
of work result, and needed information and
communication in effort of village government to
improve service to society. (Government Regulation
number 60 year 2008).
Village government in perspective of stewardship
theory was able to do mandate from principle with
strengthening its organization through internal sys-
tem of village to give maximal service to principle
(society) in this case, this looked clearly that village
government gave priority of its organization interest
to execute mandate from society.
4.4.3 The Influence of Asset inventory
toward Management of Village Fund
Result of statistical test did not prove that asset
inventory influenced positively toward pengelolaan
dana desa. This was not analogous with Permatasari’s
research (2015) concluded that pengelolaan dana desa
was done with management which was utilized and
done inventory of village asset. Research of
Simamora (2013 found that quality of funding report
was influenced by scoring of asset in taking data col-
lection but from analysis of statistical test was not
able to give empirical proof that asset inventory
influenced positively toward management of village
fund.
From phenomena, this happened that asset
inventory in government of village was done
maximally. Inventory in regional government
regulation number 1 year 2016 was a process of
taking data col-lection and code of village properties,
those are permanent asset, fluent donation therefore
stewardship was rejected.
4.4.4 The Influence of Village Fund
Management toward Funding Report
Transparancy
Based on results of statistical analysis, this can be
seen that pegelolaan dana desa influenced positively
and significantly in funding report transparency. In
concept of stewardship Theory, village government
as principle in doing mandate that managed village
fund had been done with more emphasizing
organization in which still engaged society in
realization of programs. Result of fund management
was delivered to principles (society) through village
parliament agency with funding responsibility report.
This indicated that village government has
transparently explored result of funding report to
society that will cause to improve social belief toward
government. This was analogous with Siagian’s
research (2016) in his research found that factors
obstructed implementation of village funding
management was the lack of funding information
transparency.
5 CONCLUSIONS
Based on the results of data analysis, this test showed
that apparatus competency influenced positively in
management of village fund. This means that
pengelolaan dana desa was needed knowledge about
regulation of village fund management to have skill
especially skill of accounting and needed also
motivation to be able to work responsibly and
implemented in village government.
System of internal controlling influenced
positively in pengelolaan dana desa. This means that
in village government environment of internal
controlling was implemented internal systems that
were scoring of work risk, evaluation of work result,
and needed information and communication in
village government to improve service in society.
Inventory of asset village from the result of
analysis did not have positive influence toward
pengel-olaan dana desa. This means that inventory of
village funds were asset data collection and asset
report which were done in one time in a year because:
1) human resource in village was still limited; 2)
village government has not done the entry more detail
including to give code or agglomeration of village
properties; 3) arrangement of report was often
ignored.
The results of this test was expected to be able to
be references for writers in writing of thesis with
adding bigger variables and samples and improving
higher data analysis (Ghozali & Latan) to get better
results and increasing the other factors deeply which
influenced pengelolaan dana desa.
Even though the implication from this test can be
used for local government in east Lombok especially
and government in Indonesia generally to be able to
improve quality of pengelolaan dana desa from
development factors of village apparatus
management, system of internal controlling of village
and more paid attention the inventory of village asset.
Restrictiveness from this test gave direction for
next researchers in thesis research to be able to test
the implication from pengelolaan dana desa as the
moderation of funding report transparency.
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
654
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