Volume 3, Number 14, December 2022 e-ISSN: 2797-6068 and p-ISSN: 2777-0915
IMPLEMENTATION
OF VILLAGE
FINANCIAL SYSTEM IN VILLAGE FINANCIAL MANAGEMENT
Peti Sri Rahayu, Liza Alvia
Universitas Lampung, Indonesia
Email: [email protected], [email protected]
|
KEYWORDS Village Financial System, Financial
Management |
ABSTRACT In the government financial system in Indonesia, according to Law no. 6
of 2014, namely article 1 paragraph 1 which explains that the village is a
legal community unit that has boundaries with the authorized area to regulate
and manage government affairs and the interests of the local community based
on community initiatives and rights and origins that are recognized and
respected in a government system The Unitary State of the Republic of
Indonesia. Villages are given such large financial resources by the central
government with the aim that villages are able to improve the economy and the
level of social welfare through these funds. To create clean, transparent,
accountable, effective and efficient financial governance, the Financial and
Development Supervisory Agency (BPKP) and the Directorate General of Village
Government Development, the Ministry of Home Affairs, collaborated to create
an application called the Village Financial System (Siskeudes). Human
resources, leadership commitment are factors that can influence village
financial management |
INTRODUCTION
According to
Law Number 6 of 2014 article 1 paragraph 1 namely About Villages, which
explains that villages carry out development for the welfare of the people. In
addition, the village government is also expected to be able to independently
carry out good governance, manage human resources and manage village finances.
In managing village finances, it is necessary to pay attention to the
principles of transparency, accountability, participation, and order and
discipline in budgeting knowledge. Villages are given such large financial
resources by the central government with the aim that villages are able to
improve the economy and the level of social welfare through these funds.
In
implementing village financial management by the village government, a
regulation was issued, namely Pemdagri Number 20 of 2018 concerning Village
Financial Management. The budget budgeted by the central government for
villages continues to increase every year with such a large amount, therefore
it is necessary to have good management of village funds. In regulating the
management of village funds, the Ministry of Finance issued a regulation,
namely Minister of Finance Regulation number 93 of 2015 concerning Procedures
for Allocation, Distribution, Use, Monitoring and Evaluation of Village Funds.
This regulation was issued with the aim that the budget given by the central
government to villages could be channeled according to the target and properly
regulated from allocation to evaluation.
The Central
Government has budgeted a large enough Village Fund to be given to Villages. In
2018, the central government provided village funds of IDR 60 trillion, the
realization of village funds that had been disbursed reached IDR 59.86 trillion
or 98.77%. In 2019, Village Funds increased to IDR 70 trillion, with the
realization of village funds that had been disbursed until August 2019 reaching
IDR 42.2 trillion or 60.29%, and in 2020 it increased again to IDR 72 trillion.
The village funds were transferred to 434 District/City Regional Governments in
33 provinces, with a total of 74 thousand villages. In 2018 each village
received an average village fund allocation of IDR 800.4 million, in 2019 it
was IDR 933.9 million, and in 2020 it was IDR 960.6 million. This large budget
can make village funds vulnerable to corruption. Data from Indonesia Corruption
Watch (ICW) for 2017-2019 there were around 277 cases of corruption at the
village level in the village fund budgeting sector, most of which were carried
out by village heads. In 2015 there were 15 cases of corruption, increasing to
61 cases in 2016, then there were 66 cases in 2017, and 89 cases in 2018 and in
2019 there were 46 corruption cases in the village. (Teguh Firmansyah, 2019).
Therefore a village financial management system is needed so that these funds
can be properly channeled for the welfare and prosperity of the village
community.
To support the
implementation of village financial governance by applying the principles of
accountability, clean and transparent, the government through the Financial and
Development Supervisory Agency (BPKP) together with the Ministry of Villages,
Development of Disadvantaged Regions and Transmigration (Kemendes-PDTT)
developed a novelty in financial governance in villages in the form of a
financial management system. information technology-based village finance in the
form of an application called the Village Financial System (SISKEUDES). And the
Financial and Development Supervisory Agency (BPKP) collaborates with the
Directorate General of Village Government Development at the Ministry of Home
Affairs in increasing accountability for village financial management by
developing village financial governance through the Village Financial System
(Siskeudes) application. In accordance with the Circular Letter of the Director
General of Village Government Development of the Ministry of Home Affairs
number 145/8350/BPD dated 27 November 2015 Concerning Village Financial
Management Applications, that the launch of SISKEUDES is with the aim of being
able to improve the quality of Village Financial Management by producing Accountable
financial reports.
THEORETICAL FRAMEWORK
Village Financial System
�� The
village financial system application (SISKEUDES) is an application developed by
the Financial and Development Supervisory Agency (BPK) with the aim of
improving the quality of village government financial governance (BPK, 206).
The village financial system is able to produce various reports needed, using
this application will also save costs, time and minimize errors and fraud. The
Village Financial System (SISKEUDES) is not only online based but also online,
this is due to the circumstances, conditions and capabilities of different
resources. Implementation of the village financial system (siskeudes) refers to
Minister of Home Affairs Regulation number 20 of 2018 concerning village
financial management.
The features in the system are made
simple and user friendly to address the varying village conditions. With one
input according to an existing transaction, SISKEUDES can produce output in the
form of administration documents and reports in accordance with statutory
provisions. Apart from convenience, both are also equipped with an Internal
Control System (Built-in Internal Control) and are supported by Implementation
Guidelines and Application Manuals.
Prior to the existence of the Village
Financial System (SISKEUDES) it was difficult for the district government to
evaluate the APBDes in village financial reports. Because the village is in the
process of making budgeting, administration and financial reports, it is still
manual with a format that is not in accordance with standards. So that a
village financial system is implemented with the aim of being able to help
village officials in managing village finances properly
Village
Financial Management
Law No. 23 of 2014 Regarding all village rights and
obligations measured by the value of money and all matters relating to the
implementation of village rights and obligations are measured by the value of
money or goods. of these rights and obligations raises elements of village
income, financing and spending so that they can be managed with an appropriate
management system. The village financial management cycle includes planning,
implementing, administering, reporting and accountability with a period of 1
fiscal year up to December 31.
planning accountability budgeting Reporting implementation administration Village Financial Management Cycle
Herlianto
2017 states that there are several principles in village finance, namely the
first is that the community plays a role in managing village finances, not only
the authority of village officials, but the community also plays an active
role. The second is in the field of government, namely being able to create
quality human resources, namely competent village officials. Third, the
community sector is made a priority of programs or activities in the village as
mandated by law and obtains sufficient budget allocations.
Village financial management is a
combination of a component of activities from planning, implementation,
reporting and financial accountability. In this process there are rules that
must be implemented and considered as well as a predetermined time limit.
In the planning process, village
financial management is prepared in a timely manner starting from the hamlet
head where each hamlet will hold a deliberation attended by the hamlet head,
RT, RW of the village with the aim of accommodating the aspirations of the
community regarding what activities will be carried out in the village program.
In the process of implementing financial management, the parties involved will
be formed to be responsible for each program based on the APBDes,
this party is called the Activity Implementation Team. The administration
process is carried out by the Village Treasurer. In addition, the treasurer
also acts as the operator of the Village Financial System and other village
officials, such as the Village Secretary. At this stage the village treasurer
will submit to the village head the accountability report of village revenues
and expenditures. The process of reporting village finances, in this process,
begins with the preparation of accountability reports on the APBDes of each activity by the Activity Implementation
Team. Then the report will be given to the treasurer to be input into the
SISKEUDES application, then it will be heard by the BDP, then the sub-district
head will submit it to the regent. The process of Accountability and Village
Financial Management, in the process of accountability for the realization of
the APBDes carried out by the village head will then
be submitted to the sub-district head and then the sub-district head will
convey it to the regent.
RESEARCH METHOD
�The approach used in this study is
qualitative research, the Prastowo method, (2011)
states that qualitative research is a systematic research method used to study
or research an object in a natural setting without any manipulation and without
hypothesis testing. Qualitative research is also interpreted as an inquiry strategy
that emphasizes the search for meaning, understanding, concepts,
characteristics, symptoms and descriptions of a phenomenon; phenomenal focus
and natural character that prioritizes quality and is presented in a narrative
manner
RESULTS AND DISCUSSION
According to Sartono (2011: 50),
the term financial management can be interpreted as good fund management
related to allocating funds in various forms of investment effectively as well
as efforts to collect funds for financing investments or spending efficiently. Agus, Sartono. 2011.
Financial Management Theory and Applications. Yogyakarta: BPFE. Venkateswaran (2014) states that there are 4 basic
components of public sector financial management, namely Budgeting, Accounting,
Financial Reporting and Auditing:
Budgeting is the annual financial plan
of the local government, which sets operational priorities and explains how the
plan will be financed. Some important things in budgeting are: First Budget
Preparation. There are several steps in the budgeting process including the
budget cycle, budget formulation, budget estimates, budget approval and
supplementary budgets to help governments maintain financial discipline and
accountability. Second Participatory Budgeting. Participatory budgeting is a
democratic process in which individuals or community members are directly
involved in decisions about how to spend and determine the priorities to be
implemented from the budget managed by the government. Public participation in
the budgeting process can be done directly or through representatives. Third
Budget Monitoring. Success in implementing finance is very dependent on
monitoring, supervision and control carried out by the government which aims to
find out weaknesses in financial implementation and immediately make decisions.
Accounting is the basis for
documenting, classifying, and systematically managing financial information.
The accounting system is used to provide complete, timely and accurate
information related to what is done by the government.
According to the Financial Accounting
Standards Board (FASB) the qualitative characteristics needed in good financial
reporting are: Relevance in financial reporting, the information presented can
be used for decision making. Faithful representation in financial reporting
must reflect economic phenomena that occur or are based on the conformity
between facts and information in financial reporting. Comparability in
financial reporting of the quality of information makes it possible to identify
similarities and differences to be used as a basis for decision making.
Understandability in financial reporting is made clear and concise so that it
is easy to learn and understand management activities and financial reports.
Materiality Financial reporting must include all material information, both the
nature and amount of goods, so that there are no misstatements that make
financial reports less useful in decision making. Benefits and costs The benefits of financial reporting information must justify
the availability of costs and their use in financial management. The auditing
process helps ensure that in financial management there are no errors, waste,
and misuse or errors in reporting.
The auditing process helps to ensure
that in financial management there will be no misuse or lapses in financial
reporting. In addition, public sector audits also help to ensure that entities
carry out financial management according to predetermined procedures. There are
several types of audits, namely A financial audit, A compliance audit, A
management audit,
Mardiasmo, 2004 states that financial management is an activity
in the form of administrative actions related to activities starting from the
process of budget planning, storage, use, recording and monitoring of the entry
and exit of money or agency funds. There are several principles that form the
basis of financial management, namely the first is the principle of
transparency, Article 4 paragraph (7) of the Regulation of the Minister of Home
Affairs of the Republic of Indonesia Number 13 of 2006, concerning Guidelines
for Regional Financial Management, it is said that transparency is the
principle of openness that allows the public to know and obtain wide access to
information about regional finance. The second principle of Accountability is
the obligation to provide accountability or answer and explain the performance
and actions of a legal entity leading an organization to parties who have the
right or have the authority to request information or accountability. The third
principle is value for money, which means that it must be based on the basic
principles of budgeting, namely economy, which means selecting and using
resources in a certain quantity and quality at a lower price.
The implementation of the Village
Financial System (SISKEUDES) in village financial management is influenced by
several factors, namely the lack of competence of village apparatus human
resources. This can result from initial recruitment to payroll. In addition,
facilities and infrastructure are still lacking, especially in underdeveloped
areas, even though in siskeudes they must be
supported with adequate facilities and infrastructure. And communication or
cooperation between stakeholders, be it the village government, village
officials or village community institutions.
From various literature, both from
books and previous research, it explains that village financial management is
influenced by several factors. Asegid (2015), states
that the factors of resources (resources) and communication (communications)
affect the implementation of financial management. Gatchair
(2018), states that leadership has an important role in implementing financial
management.
Resource factors, Asegid
(2015) states that the adequacy of resources greatly influences the
implementation of financial management. What is meant by resources are both
human resources and financial resources. Barney (1991), classifies resources
into 3 types: the first is physical resources in the form of technology and
supporting equipment, the second is human resources in the form of training and
education, experience and insight possessed and organizational resources
(formal structure).
On the leadership factor, Stanley
(2017), states that the leadership factor has a significant effect on financial
management. Gatchair (2018), that leadership factors
have a very important role in the implementation of financial management.
Commitment factor. Organizational
commitment is an important attitude that affects performance. So that
performance is affected by commitment in its implementation. Commitment factor.
Furtmueller, et.al. (2011), organizational commitment
is very relevant and influences financial management in both the public and
private sectors.
CONCLUSION
Implementation of the Village
Financial System (Siskeudes) in the territory of
Indonesia with the hope that there will be uniformity in management and the
resulting financial reports. With uniformity, it will be easier to assess the
quality of performance in each village and is a form of accountability by users
of financial reports. In addition, villages are expected to be able to manage
village finances starting from the process of budgeting, implementation,
accountability and reporting of village finances to run well. Then the factors
that influence the implementation of the Village Financial System (Siskeudes) such as human resources (HR) who do not
understand the siskeudes application, inadequate
facilities and infrastructure and applications when data input is used,
reported from www.bpkp.go.id. In addition there are
other factors such as human resources. village leadership and commitment must
also be a concern for the village so that with the implementation of the
village financial system (siskeudes) financial
management in the village can run well.
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�Copyright holders:
Peti Sri Rahayu
(2022)
First publication right:
Devotion - Journal of Research and Community Service
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