Development of a Quality Evaluation Model for Village Government Financial Reporting in Boyolali Regency, Center Java, Indonesia

Published: Jan 9, 2025

Abstract:

Purpose: This study aims to evaluate the quality of financial reporting in village administrations, which is crucial for effectively managing village funds in Indonesia.

Methodology: In 2020, this study involved 164 participants and employed a mixed-methods approach combining quantitative and qualitative techniques. The financial reporting quality model classifies data into three categories: Cluster A (audit-ready), Cluster B (needing oversight), and Cluster C (requiring intervention).

Results: The quality assessment model for village financial reporting can be categorized into three clusters: Cluster A, readiness for audit (51%); Cluster B, need for supervision (33%); and Cluster C, need for assistance (16%).

Limitations: This research was conducted during a period when standardized accounting principles for village finances have not yet been established, which represents a key limitation. High-quality financial statements are characterized by compliance with applicable accounting standards. The suboptimal quality observed in the financial statements of many villages is likely attributable to the absence of specific accounting standards governing village financial reporting.

Contribution: Theoretically, this study seeks to identify practical concepts for managing village finances. The proposed financial reporting quality model offers a framework for improving the quality of village financial reports while enhancing the understanding of financial reporting practices in village governments, particularly in Boyolali Regency. From a policy perspective, this research aims to assist the Ministry of Home Affairs and State Development Audit Agency of the Republic of Indonesia (BPKP RI) in formulating policies to strengthen village financial reporting practices.

Keywords:
1. accountability
2. accounting
3. reporting
4. finance
5. village
Authors:
1 . Muhammad Mahsun
2 . Junaidi Junaidi
3 . Sumiyana Sumiyana
4 . Nurdiono Nurdiono
5 . Suparmono Suparmono
How to Cite
Mahsun, M. ., Junaidi , J. ., Sumiyana, S., Nurdiono, N., & Suparmono, S. (2025). Development of a Quality Evaluation Model for Village Government Financial Reporting in Boyolali Regency, Center Java, Indonesia . Studi Akuntansi, Keuangan, Dan Manajemen, 4(2), 431–441. https://doi.org/10.35912/sakman.v4i2.3614

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References

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  2. Aulia, E., Tambunan, K., & Laila, N. (2024). Efektivitas dan Efisiensi Pengelolaan Keuangan Dana Desa pada Dalu Sepuluh A Tanjung Morawa. Studi Akuntansi, Keuangan, Dan Manajemen, 4(1), 59–68. https://doi.org/10.35912/sakman.v4i1.3224
  3. Bupati Boyolali. (2018). Peraturan Bupati Boyolali 94 tahun 2018 Tentang Pedoman Pengelolaan Keuangan Desa.
  4. Hendaris, B., & Romli, R. (2021). Effect of Village Apparatus Performance, Internal Control, Information Technology Utilization on Village Fund Accountability And Implications on Quality Village Financial Report. Dinasti International Journal of Management Science , 2(4). https://doi.org/10.31933/dijms.v2i1
  5. Herawaty, N., & Hernando, R. (2021). Analysis of Internal Control of Good Corporate Governance and Fraud Prevention (Study at the Regional Government of Jambi City). Sriwijaya International Journal of Dynamic Economics and Business, 4(2), 103. https://doi.org/10.29259/sijdeb.v4i2.103-118
  6. Imawan, A., Irianto, G., & Prihatiningtias, Y. W. (2019). Peran Akuntabilitas Pemerintah Desa Dalam Membangun Kepercayaan Publik. Jurnal Akuntansi Multiparadigma, 10(1). https://doi.org/10.18202/jamal.2019.04.10009
  7. Kompas. (2020). Diserahkan Secara Langsung, Tiap Desa Bakal Terima Rp 960 Juta. Kompas. https://nasional.kompas.com/read/2020/02/17/18001271/diserahkan-secara-langsung-tiap-desa-bakal-terima-rp-960-juta
  8. Kusumastuti, H., Jaeni, J., Badjuri, A., & Himmawan, A. (2023, December 20). Utilization of the Siskeudes Application as a Moderating Variable on the Effect of Accessibility of Financial Reports and Government’s Internal Control Systems on the Accountability of Village Financial Management (Empirical Study in Mranggen District, Demak Regency). https://doi.org/10.4108/eai.12-7-2023.2340949
  9. Lubis, N. W. (2022). Resource Based View (RBV) in Improving Company Strategic Capacity. In Research Horizon (Vol. 2, Issue 6).
  10. Menteri Dalam Negeri Republik Indonesia. (2018). Peraturan Menteri Dalam Negeri No 20 Tahun 2018 Tentang Pengelolaan Keuangan Desa. 72(10), 1–13. http://www.jdih.setjen.kemendagri.go.id/pm/Permendagri No.20 TH 2018+Lampiran.pdf
  11. Natariasari, R., Savitri, E., & Nasir, A. (2023). Pengelolaan Keuangan Desa Melalui Bimbingan Teknis Penyusunan Buku Kas dan Laporan Arus Kas di Desa Koto Inuman Kecamatan Inuman Kab. Kuantan Singingi Propinsi Riau. Jurnal Abdi Masyarakat Indonesia, 3(4), 1037–1042. https://doi.org/10.54082/jamsi.346
  12. O’Dwyer, B., & Unerman, J. (2017). From functional to social accountability: Transforming the accountability relationship between funders and non?governmental development organisations. Accounting, Auditing & Accountability Journal, 20(3), 446–471. https://doi.org/https://doi.org/10.1108/09513570710748580
  13. Saddam, S. Z., Nizar, N., Ariffin, N. A., & Abas, N. M. (2023). The Effects of Dynamic Capabilities on Firm’s Financial Performance. In Information Management and Business Review: Vol. XX (Issue X).
  14. Sari, R., Su’un, M., & Nurwanah, A. (2021). Effect of internal control, whistleblowing role and data asymmetry against fraud prevention. Point of View Research Accounting and Auditing, 2(1), 92–99.
  15. Setiawati, L., Simanjuntak, V., & Werimon, S. (2022). Pengaruh Kualitas Sumber Daya Manusia, Pendidikan Dan Pelatihan, Serta Peran Pendamping Desa Terhadap Efektivitas Penggunaan Sistem Keuangan Desa (Studi Pada Desa di Distrik Prafi Kabupaten Manokwari). Jurnal Analisa Akuntansi Dan Perpajakan, 6(1).
  16. Sofyani, H., Suryanto, R., Arie Wibowo, S., & Widiastuti, H. (2018). Praktik Pengelolaan dan Tata Kelola Pemerintahan Desa Dlingo di Kabupaten Bantul: Pembelajaran dari Desa Percontohan. Jurnal Akuntansi Terapan Indonesia, 1(1), 1–16. https://doi.org/10.18196/jati.010101
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  18. Tenriwaru, Suun, M., & Syahnur, H. (2023). PKM Bimtek Pelaporan Keuangan Digital dan Akuntansi Sederhana Untuk Aparat Desa. Jurnal JP2N, 1(1), 39–45.
  19. Toeweh, B. H. (2022). Literature Review: Akuntansi Forensik Untuk Deteksi Korupsi. Studi Akuntansi, Keuangan, Dan Manajemen, 2(2), 135–146. https://doi.org/10.35912/sakman.v2i2.1672
  20. Umar, R. (2020). Sejumlah Kepala Desa di Aceh Barat Diduga Korupsi hingga Rp 15 Miliar. Kompas.Com. https://regional.kompas.com/read/2021/01/18/19311271/sejumlah-kepala-desa-di-aceh-barat-diduga-korupsi-hingga-rp-15-miliar
  21. Zam, Ef. Z. (2021). Pengaruh Pemanfaatan Teknologi Informasi dan Kualitas Sumber Daya Manusia Terhadap Keandalan Pelaporan Keuangan Desa. In Management, & Accounting Journal (Vol. 1, Issue 1). http://www.ebisma.com