Analysis of Village Financial Management:

Case Study at Kenongomulyo Village Nguntoronadi Subdistrict

Magetan Regency

Yolanda Dhamayanti

, Puji Handayati

Graduated School of Universitas Negeri Malang

Universitas Negeri Malang

Keywords: Management, Village Finance, Good Governance

Abstract: This research focuses on village financial management, especially regarding village funds with the purpose

to determine the extent of understanding of village fund management carried out by Kenongomulyo Village.

This study uses a qualitative case study approach, the instrument used to collect data in the form of human

instruments, namely the researchers themselves. To maintain data validity, data triangulation is carried out.

Data analysis activities include data reduction, data presentation, and conclusion drawing. The results of this

study indicate (1) The planning process in Kenongomulyo Village is carried out by involving society

participation in village meetings, this is done to explore people's aspirations, (2) Village funds are used for

infrastructure and non-infrastructure development processes. The construction of infrastructure in

Kenongomulyo Village in 2016 prioritized the agricultural sector (3) Transparency of accountability reports to

village societies still not touched the general level of society. This is due to the lack of socialization of village

funds to the society as a whole due to the lack of skill in the village government in socializing it.

1 INTRODUCTION

The government's seriousness in paying attention to

villages can be seen by the society, it is evident that

in 2016 the temporary budget al.,location for village

funds amounted to Rp.46.9 trillion, up from the 2015

budget of Rp20.17 trillion. Village funds will be

channeled in two stages, namely March and August.

DJPK will channel village funds with a scheme of

60% in March and 40% in August which has

changed from the previous year. The two-stage

distribution was carried out in accordance with the

issuance of the Minister of Finance Regulation

(PMK) No. 49 / PMK.07 / 2016 concerning

procedures for allocating, distributing, using,

monitoring and evaluating village funds.

(www.kemendesa.go.id accessed on November 22,

2016).

In this study, the researchers chose the object of

research in the Kenongomulyo Village,

Nguntoronadi Subdistrict, Magetan Regency,

because the residents of Kenongomulyo Village

wanted to see how the village finances were

managed because so far researchers had not felt the

benefits of village funds. Based on a preliminary

survey conducted by researchers, Kenongomulyo

Village has received village funds starting in 2015

and has made financial reports based on

Permendagri Number 113 in 2014. The Village

Funds that are lowered by the central government

are not small and have increased in 2016. In

addition, there are obstacles to managing village

finances, which are not in accordance with the initial

plan in management.

The delay in disbursing funds from the center

made the village government in making the

accountability report seem hasty. In addition, there

are still many people who complain about

transparency because of the lack of skilled village

officials in submitting accountability reports as a

whole. Based on Permendagri Number 113 in 2014

the village government must submit its

accountability report through media information that

is easily accessible to the public.

Received the village funds, the village

government must be prepared and able to manage

village finance based on transparent, accountable,

participatory principles and carried out in an orderly

and disciplined manner in accordance with

Permendagri Number 37 of 2007 concerning

306

Dhamayanti, Y. and Handayati, P.

Analysis of Village Financial Management: Case Study at Kenongomulyo Village Nguntoronadi Subdistrict Magetan Regency.

DOI: 10.5220/0008787503060314

In Proceedings of the 2nd International Research Conference on Economics and Business (IRCEB 2018), pages 306-314

ISBN: 978-989-758-428-2

Guidelines for Village Financial Management.

Public Accountability is an obligation for agents as

trustees to account for, present, report and discloses

all kinds of activities to principals as trustees, where

principals certainly have the right and authority to

hold such accountability Mardiasmo (2002) in

Lestari (2014).

A good financial management and reporting

system will support the realization of public

transparency and accountability in order to produce

information that is relevant and easily understood by

stakeholders (Lestari, 2014). With the changes from

the central government regarding the budget for

village assistance, the government issued

Permendagri Regulation No. 113 of 2014 which is

specifically as a guide for village financial

management, besides that the regulation also

controls village financial management, because there

are still many village governments that are misused

by funds village assistance for personal gain.

Research on village financial management

accounting has been carried out several times,

including Firmansyah (2014), examining "Financial

Management in Pulau Lawas Village, Bangkinang

Sub-District across Kampar Regency in 2012". The

results of the study showed that village financial

management in Pulau Lawas Village, Bangkinang

Seberang District in 2012 was unfavorable due to

the lack of maximum management of village

finances due to limited human resource capacity,

lack of supervision from the BPD and lack of

community participation and less supportive

facilities.

Research on Nisa village funds (2016) on the

"Phenomenology Study of Accountability for

Village Fund Management in Tegalan Village,

Kandat District, Kediri Regency". The results of the

study said that the understanding of the village

government regarding planning was to invite society

representatives in a deliberation program and also

the community's understanding of planning was to

attend the invitation to the meeting. Implementation

is considered as a realization of the plan and the

absorption of all funds in development for one year.

With no funds remaining, it is considered that

village funds have been implemented well. While

accountability is understood by the village

government as the submission of the results of the

activity report to the center through the sub-district

and the society understands the responsibility in the

form of completion of development for one year and

can be enjoyed directly by all levels of society.

2 LITERATURE REVIEW

2.1 Good Governance

Governance can be interpreted as a way of managing

public affairs. World Bank (in Mardiasmo, 2002: 23)

defines governance as "the way state power is used

in managing economic and social resources for the

development of society". While the United Nation

Development Program (UNDP) defines governance

as "the exercise of political, economic, and

administrative authority to manage a nation's affair

at all levels". In this case, the World Bank places

more emphasis on the way the government manages

social and economic resources for the benefit of

social development, while UNDP places more

emphasis on political, economic and administrative

aspects in the management of the country. Political

governance refers to the policymaking process

(policy/strategy formulation). Economic governance

refers to the decision making process in the

economic field which has implications for the

problem of equity, reducing poverty, and improving

the quality of life. Administrative governance refers

to a system of policy implications.

According to UNDP (in Mardiasmo 2002: 24),

the characteristics of good governance include:

a. Participation, participation is the involvement of

the society in making decisions both directly and

indirectly through representative institutions that

can channel their aspirations.

b. Rule of law, a legal framework that is fair and

carried out indiscriminately.

c. Transparency, transparency is built on the basis

of freedom of information.

d. Responsiveness, public institutions must be fast

and responsive in serving stakeholders.

e. Consensus orientation, oriented to the interests of

the wider society.

f. Equity, every society has the same opportunity to

obtain prosperity and justice.

g. Efficiency and Effectiveness, management of

public resources is carried out in an efficient

(efficient) and effective (effective).

h. Accountability, accountability to the public for

every activity carried out.

i. Strategic vision, government organizers and the

public must have a far-reaching vision.

Of the nine characteristics, there are at least three

things that can be played by public sector

accounting, namely the creation of transparency,

public accountability, and the value of money

(economy, efficiency, and effectiveness).

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2.2 Village Fund

Village funds are funds sourced from the APBN

intended for villages that are transferred through the

district and city APBD which are used to finance

government administration, implementation of

development, social development

(www.kemendesa.go.id accessed 22 November

2016). Village funds are one of the crucial issues in

village law, the calculation of the budget is based on

the number of villages taking into account the

population, poverty rate, area size, and level of

geographical difficulties in order to improve welfare

and equitable distribution of village development.

Village funds are one of the sources of village

income that must be included in the Village Budget

(APBDesa) document (Kemendesa, 2016: 11).

Every year the village will get village funds from the

central government, which is channeled through

districts or cities. The priority of the use of village

funds every year is regulated by village minister

regulations, underdeveloped regional development,

and transmigration.

Village funds are prioritized to finance

development and society empowerment whose

implementation is prioritized in self-management

using local resources or raw materials and sought to

absorb more labor from the local village society

(www.djpk.depkeu.go.id accessed January 2, 2017).

The village government uses APBDesa funds to

finance the implementation of village authority in

the form of various development activities and

empowerment of village societies. In addition, the

village government is obliged to carry out financial

management in an orderly manner and in accordance

with the provisions. Therefore the village

government needs to develop various regulations,

both in the form of village regulations related to

allocation, use, and monitoring and evaluation of

funds allocated in the Village Budget.

2.3 Village Financial Resources

The source of village finance or village income

as stated in Government Regulation Number 72 of

2005 (Article 68: 1), states that the village income

source consists of:

a. Village Original Income which consists of the

results of village business, village wealth, self-

help and participation, mutual assistance, and

other legitimate village income;

b. Regency / City regional tax revenue sharing of at

least 10% (ten per hundred), for the village and

from the Regency / City retribution some of it is

for the village;

c. Central and regional financial balance funds

received by the Regency / City for the village at

least 10% (ten per hundred), which is

proportional to each village which is the Village

Fund Allocation;

d. Financial assistance from the Government,

namely assistance from the Provincial

Government, Regency / City Government in the

context of implementing government affairs;

e. Grants and donations from non-binding third

parties.

2.4 Village Financial Management

Principles

The principles of Village Financial Management as

stated in Permendagri Number 113 of 2014 are

transparent, accountable, participatory and carried

out in an orderly and budgetary discipline, with the

following description:

a. Transparent, namely the principle of openness

that allows the public to know and get access to

information as widely as possible about village

finance.

b. Accountable, namely the realization of the

obligation to account for the management and

control of resources and the implementation of

the policies entrusted in the framework of

achieving the stated objectives.

c. Participatory means that every action is carried

out by involving society involvement both

directly and indirectly through representative

institutions that can channel their aspirations.

d. Orderly and budgetary discipline means that the

budget must be carried out consistently with the

recording of its use in accordance with the

village financial accounting principles.

2.5 Village Financial Planning

Village Financial Planning is an activity to estimate

income and expenditure for a certain period of time

in the future organized by the Village Government

by laying down the BPD and community elements in

a participatory manner. (www.bbpk.kemenkeu.go.id

accessed November 22, 2016). In relation to Village

Financial Management, the intended planning is the

APBDesa process. The Village Government

prepares village development planning in

accordance with its authority by referring to

district/city development planning. Village

Development Planning includes Village RPJM and

Village RKP which are arranged in a timetable and

stipulated by Village Regulations. Village

development planning is prepared based on the

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results of the agreement in the village meeting which

is implemented no later than in June the current

budget year.

2.6 Budgeting Process

The process of preparing the Village Budget starts in

the following order:

a. The Implementing Activity submits a budget

proposal for activities to the Village Secretary

based on the established Village RKP;

b. The Village Secretary draws up a Village

Regulation concerning the APBDesa (Village

RAPB) and submits it to the Village Head;

c. The Village Head then submits to the BPD to be

discussed and agreed upon. The draft Village

Regulation on APBDesa is agreed upon at the

latest in October of the current year between the

Village Head and BPD;

d. Draft Village Regulations concerning APBDesa

which have been mutually agreed upon as

subsequently submitted by the Village Head to

the Regent / Mayor through the sub-district head

or other designation no later than 3 (three) days

from the time it is agreed to be evaluated;

e. Regents / Mayors determine the results of the

evaluation of the APBDesa design at the latest 20

(twenty) working days from the receipt of the

Village Regulation Draft on the Village Budget.

Village regulations on APBDesa are set no later

than December 31 of the current budget year.

2.7 Implementation of APBD

Based on the village financial management guide

(BPKP, 2016: 11) in the implementation of village

finance, there are several general principles that

must be adhered to that cover revenues and

expenditures. The principle includes that all village

revenues and expenditures are carried out through

the village cash account. Disbursement of funds in

the village cash account is signed by the Village

Head and the village treasurer. However, especially

for villages that do not have banking services in their

area, further arrangements will be made by the

district/city government. With this arrangement,

payments to third parties are normatively carried out

through transfers to third-party bank accounts.

2.8 Village Finance Administration

Village Finance Administration is a recording

activity specifically carried out by the Village

Treasurer. The village treasurer must record all

existing transactions in the form of receipts and

expenses. The village treasurer systematically and

chronologically records financial transactions that

occur. Village financial administration carried out by

the village treasurer is done in a simple way, namely

in the form of bookkeeping not yet using an

accounting journal. Administration of both cash

receipts and cash disbursements, the village treasurer

uses:

a. General Cash Book;

b. Tax Helper Cash Book; and

c. Bank Book.

2.9 Reporting and Accountability of

Village Finance

In carrying out their duties, authorities, rights, and

obligations in managing village finance, the village

head has an obligation to submit a report. The report

is semester and annual periodic, which is submitted

to the Regent / Mayor and some are submitted to the

BPD. Details of the report are as follows:

a. Report to Regents / Mayors:

a) Semester Report of the Implementation of

Village Budget Implementation;

b) Report on the Realization of APBDesa

Implementation to the Regents / Mayors at

the end of each fiscal year.

c) Report on Realization of Use of Village

Funds

b. Report to the BPD includes a Report on the

Responsibility for Realization of the

Implementation of the Village Budget consisting

of Income, Expenditures, and Financing.

3 RESULT and DISCUSSION

This study uses a qualitative case study approach by

taking the object of research in the Kenongomulyo

Village, Nguntoronadi Subdistrict, Magetan

Regency. The source of the data comes from the

results of interviews, documentation, and

observations on the subject of the study. Instruments

used to collect data in the form of human

instruments, namely researchers themselves. To

maintain data validity, data triangulation is carried

out. Data analysis activities include data reduction,

data presentation, and conclusion drawing.

Analysis of Village Financial Management: Case Study at Kenongomulyo Village Nguntoronadi Subdistrict Magetan Regency

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3.1 Results

3.1.1 Village Planning

The planning process of Kenongomulyo Village

involves deliberation to explore people's aspirations,

this is because village development itself is from the

society and for the society, so every development

plan for the social development of the

Konongomulyo Village is always involved. This is

in accordance with what was presented by Informant

“important and there must be society leaders in

this village development planning because

village development as a system in the

construction of the Village Law places the

society in a strategic position as the subject of

development ... "

In the development planning, the village

government must have a future development plan for

Kenongomulyo Village. With the development plan,

development can be well organized according to the

needs of the village society. Following is the

explanation from Informant 1.

"Yes, what is certain is that development can

prosper the people"

The same thing was explained by Informant 3.

"The plan is to continue the previous

development, especially for the agricultural

sector because most of the kenongomulyo

residents are farmers."

From the results of the presentation of the data

above, it can be interpreted that society leaders are

always involved in village planning. With the

existence of village meetings, village officials and

being able to find out what the society wants to

achieve future village development. The village

government itself has a future development plan

with the aim of the welfare of its people.

3.1.2 Implementation of Village Funds

Kenongomulyo Village runs the management of

village funds in accordance with established

regulations and 60% of village funds are focused on

infrastructure development to support agricultural

societies. This is in accordance with what was

conveyed by Informant 2.

"The development is in accordance with the

Village Budget, mostly in the agricultural

sector, because the people of Kenongomulyo

village have their livelihoods from rice fields, so

this is prioritized if it is fulfilled to replace the

others"

In line with management, it is certainly

inseparable from the constraints, considering that

this village fund is a new thing for the village

administration because there had never been a policy

of village funds. This is in accordance with what

was conveyed by Informant 2.

"The problem is that if it is not in

accordance with the original plan or it is not in

accordance with the pagoda, it will definitely

change from the start, the problem is if the

money is late in entering or the withdrawal is

late from the center"

Based on the results of the interview it was

found that there were still some complaints from the

society in managing village funds. One of them is

the village society empowerment program that has

not yet been seen. This is in accordance with what

was conveyed by Informant 6.

"If the construction is in physical means

such as roads, the results of the irrigation canal

are still evident. But for development that has

the character of social empowerment, it is still

not visible"

These village funds are used for village

governance, village development, and village

empowerment, therefore the existence of village

funds greatly helps the village in its objectives. In

addition, it is expected to be able to improve the

welfare of the village society. The existence of

village funds in the village administration is

expected to be able to manage village funds

according to their objectives. Following is the

presentation from Informant 3.

"Very helpful, because it can improve social

welfare and equitable distribution of rural

development through improving village public

services, advancing village economies,

overcoming development disparities between

villages and strengthening societies as subjects

of development"

From the results of the explanation above, it can

be interpreted that the presence of village funds is

very helpful for infrastructure and non-infrastructure

development. The development in 2016 is in

accordance with the plan stated in the RKP and in

the implementation of village funds, Kenongomulyo

Village has a companion who has been appointed by

the district.

3.1.3 Reporting and Accountability of

Village Finance

In carrying out their duties, authorities, rights, and

obligations in managing village finance, the village

head has an obligation to submit a report. The report

is semester and annual periodic, which is submitted

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to the Regent / Mayor. In addition to submitting

reports to the center, the village head must also

submit this accountability report to the village

society. Following is the explanation from Informant

"The plot is that this accountability report is

reported to the district level to the regent

through the first sub-district to be verified, so

every stage of the village fund disbursement

must have physical evidence."

In addition to accountability made to the central

government, the village government must also take

responsibility for the society. Because accountability

to society is very important. With the accountability

of the society, the society will feel more valued by

the village and the village government will be safe.

Following is the explanation from Informant 3.

"There must be, the reporting was done

together with society leaders, RT, RW, BPD

during the village meeting, so we convey all the

results."

The lack of socialization regarding the use of

village funds has resulted in the presence of

residents who have not yet felt the benefits of village

funds received by the Kenongomulyo Village. The

society also feels that there is a lack of transparency

in managing village finances. This is based on the

explanation by Informant 5.

"Know, but we as our people don't know

about village funds. There should be a budget

every year that the village receives and it must

be transparent so that the funds are clear on its

use, because I see the village of Kenongomulyo

has no progress at all, just a small road not on

asphalt, the money is from people's donations,

what do I not know not."

From the results of the explanation above, it can

be interpreted that the reporting and accountability

of village funds have been carried out in accordance

with procedures both at the central and society

levels. However, the lack of transparency in the

village society was experienced by the

Kenongomulyo Village, because of the lack of skill

in the village government in disseminating this

matter.

3.2 Discussion

3.2.1 Village Planning

The planning process in Kenongomulyo Village is

carried out by involving society participation in

village meetings to explore the aspirations of the

society, this is because village development itself is

from the society and for the society. The

Kenongomulyo Village Government always

provides an opportunity for the society to express

their aspirations by inviting the villagers in a

meeting to discuss any complaints experienced by

the society regarding the suggestions and

infrastructure in the village.

Village development planning consultation

(Musrenbangdes) in Kenongomulyo Village is

conducted every 3 months, but it does not rule out

the possibility that if there are interests that will be

held suddenly there will be a discussion at any time.

The Musrenbangdes was conducted with a number

of public figures, heads of RT / RW, BPD, Village

Officials, PKK, and LPM. In the village meeting, the

society was given the opportunity to convey their

aspirations. Society aspirations are needed in future

village development plans. During this time the

main development priorities that use village funds

are still focused on the agricultural sector which is

the main livelihood of Kenongomulyo Village

residents.

All planning processes in Kenongomulyo

Village have been included in the RKP for a period

of one year. The Village RKP is prepared by the

village government in accordance with information

from the district/city regional government relating to

the village indicative ceiling. In 2016 the

Kenongomulyo Village compiled infrastructure and

non-infrastructure development plans. The planned

infrastructure development is in the form of

development in the agricultural sector such as

irrigation channels, making taluds and making rice

field roads. For now, non-infrastructure development

in social empowerment is for PKK, such as special

training or skills, a village youth, and others. From

the development plans carried out by

Kenongomulyo Village, the purpose is to improve

the welfare of the society and reduce poverty in

Kenongomulyo Village. The Kenongomulyo Village

Government itself has a future development plan so

that the Kenongomulyo Village society is

prosperous, safe and peaceful.

3.2.2 Implementation of Village Funds

In its implementation, the Kenongomulyo Village

was in accordance with the regulations set by the

government. Kenongomulyo Village is guided by

Permendagri Number 113 of 2014 concerning

Village Financial Management. Kenongomulyo

Village runs village fund management in accordance

with established regulations and most or 60% of

village funds are focused on infrastructure

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development to support the agricultural society.

While the management of funds used for the

construction of non-infrastructure by the village is

managed to empower the society such as the PKK

mothers and others.

The existence of this village fund in

Kenongomulyo Village is very helpful because it

can advance infrastructure and non-infrastructure

development. Because Kenongomulyo Village only

depends on ADD and DD, the PAD is very small

because Kenongomulyo Village does not have

assets. In addition, the obstacles experienced by

Kenongomulyo Village, namely if there is a delay in

decreasing funds from the village center or the

village head must be able to bail out funds in

advance so that village development continues

properly.

This is in accordance with the function of

rolling out village funds based on Permendagri

Number 113 of 2014. Village funds allocated by the

government are expected to be able to enter the real

sector in rural development in accordance with the

potential that exists in the village and support the

village economy by building village infrastructure so

that the impact can be directly felt by the village

society. The village government must be able to

manage the village funds in accordance with the

rules from the center so that village development can

be organized neatly. With the maximum

development carried out by the village and in

accordance with the regulations from the center,

village funds can go down to the maximum. Because

basically, the central government wants this village

development to be organized and in accordance with

the rules that are passed down.

The central government always controls village

funds for villages that receive village funds.

Controlling carried out by the central government is

carried out every step, controlling this is expected

the village government can use the village funds to

the maximum and on target.

Implementation of government, development

and public services according to the paradigm of

good governance in the process is not only carried

out by the local government based on the ruling

government (legality) approach or only for the

benefit of local governments with centralized

regulations. The paradigm of good governance puts

forward processes and procedures. Where the

process includes the process of planning,

formulating and formulating a policy always

prioritizing togetherness and carried out by

involving all stakeholders, where the society is one

of the most important parts (Wibowo, 2009: 14).

The implementation of the Kenongomulyo

Village Fund is on target and in accordance with the

plan set forth in the RKP and APBDesa. The

management of Kenongomulyo Village which is

focused on infrastructure has been carried out. The

development is located in the agricultural sector,

namely the construction of talud, making irrigation

channels and road construction. All development in

2016 has been well realized, while the development

that has not been completed in 2016 will continue

with development in 2017. The village government

is always guided by the rules that have been

established in the village fund management. Non-

infrastructure development in Kenongomulyo

Village is only limited to empowering the society in

the PKK and village youth only. The village

government and BPD have non-infrastructure

development plans, namely the manufacture and sale

of plate products so that the sale of plate products

can be further.

In the implementation of the Kenongomulyo

Village, a companion is appointed directly from the

district. The implementation of village funds in

accordance with the regulations is accompanied by

the village facilitator who serves as the supervisor

and also the advisor if there are obstacles from the

village government in implementing it.

3.2.3 Village Financial Reporting and

Accountability

The Kenongomulyo Village Chief carried out his

accountability report to the district head through the

sub-district. This accountability report is carried out

at each stage of disbursement and every single

period runs, each stage must have physical evidence.

This accountability process is important to be carried

out because it functions to assess whether the

planning, implementation, to the end of the reporting

process is in accordance with the applicable rules.

The reporting and accountability carried out by

Kenongomulyo Village are in accordance with

Permendagri No. 113 of 2014. In carrying out its

duties, authority, rights, and obligations in village

financial management, the village head has an

obligation to submit reports. The report is periodic

and semi-annual, which is submitted to the Regent /

Mayor and some are submitted to the BPD.

Accountability is the highest goal of

government financial reporting. Accountability

involves providing financial information to the

public and other users so that it is possible for them

to assess government accountability for all activities

carried out, not just financial activities. Mardiasmo

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(2002: 29) states that accountability requires

decision making to behave in accordance with the

mandate received. It is stated that accountability

includes providing financial information to the

public and other users so that it is possible for them

to assess government accountability for all activities

carried out.

In reporting accountability the village head must

also submit a report on his accountability to the

society because accountability to the society is very

important. The Kenongomulyo village chief has

carried out an accountability report to the village

society, but the accountability report to the village

society is only done during the village discussion.

The village government submits its accountability

report to a public figure, heads of RT / RW, BPD,

village devices, PKK and LPM. In the meeting of

the village, all reports on the accountability of

village funds were conveyed by the village

government.

The Kenongomulyo village fund accountability

report is only limited to the time of the village

deliberations, transparency has not yet touched the

general public or overall. Lack of transparency in the

Kenongomulyo village society due to the lack of

socialization regarding village funds. This is due to

the lack of skill in the village government in

socializing village funds. The village government

must be able to socialize the village society with

media that is easily accessible to the village society

regarding village funds, so as not to arouse society

suspicion of the village government.

The lack of transparency regarding the use of

village funds resulted in several societies

complaining about the transparency of village fund

management. Some society does not even know the

allocation of village funds. They only know that

there are a number of funds allocated by the

government to build villages.

Transparency is the government's openness in

making regional financial policies so that they can

be known and monitored by the DPRD and the

community (Mardiasmo, 2002: 30). The issuance of

Law No.22 and 25 of 1999 concerning Public

Information Openness has given rise to a new

paradigm in regional financial management and

regional budgets. In regional financial management,

the new paradigm is a demand for regional financial

management oriented to the public interest (public-

oriented). For this reason, the regional government is

required to be able to make financial statements and

submit financial information transparently to the

public. The importance of transparency is intended

to ensure that everything that is done is in

accordance with existing regulations. To be a good

government, transparency must be done properly

and correctly.

4 CONCLUSION

1. The planning process in Kenongomulyo

Village is carried out by involving society

participation in village discussion, this is

done to explore the aspirations of the

society. Village development meetings

were also carried out with BPD,

Chairperson of RT / RW, LPM and a

number of other village officials.

2. In implementing village funds,

Kenongomulyo Village is guided by

Permendagri Number 113 of 2014 as a

form of implementation of the principle of

accountability. Village funds are used for

infrastructure and non-infrastructure

development processes. Infrastructure

development in Kenongomulyo Village in

2016 was prioritized in the agricultural

sector such as the name the construction of

talud, making irrigation channels and road

construction repairs in rice fields.

3. Transparency of accountability reports on

village society has not yet touched the

general public. This is due to the absence of

socialization regarding village funds to the

society as a whole due to the lack of skill in

the village government in socializing.

Village fund accountability according to

society’s understanding is the responsibility

of the village government is the completion

of the planned development.

5 SUGGESTION

1. To improve the success of the village fund

program in Kenongomulyo Village, training

is needed for all village governments as the

Village Implementation Team regarding the

village funds. In addition, there must be an

ongoing evaluation to improve the

performance of the village government

regarding technical, administrative and

others.

2. Increasing the socialization of village funds

so that people better understand the use of

Analysis of Village Financial Management: Case Study at Kenongomulyo Village Nguntoronadi Subdistrict Magetan Regency

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village funds to be more transparent and

accountable.

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