NAVIGATING VILLAGE FINANCIAL EFFECTIVENESS: THE ROLE OF COMPETENCE, PARTICIPATION, BUDGET CLARITY, AND LEADERSHIP COMMITMENT IN VILLAGE FINANCIAL MANAGEMENT
Ni Nyoman Selviana1, Nina Yusnita Yamin1, Haryono P.Kamase1, Latifah Sukmawati Yuniar1, Arif Gunarsa1

Department of Accounting, Faculty of Economics and Business, Tadulako University, Palu

Abstract

This study aims to analyze the determining factors of effective village financial management, namely the competence of apparatus, community participation, and budget clarity. Crucially, this study also examines the role of leadership commitment as a moderator of these relationships. Effective village financial management is a key pillar of successful village development and the achievement of public accountability. Using a quantitative approach, data was collected through questionnaires distributed to 200 village government apparatus in Sigi Regency, Central Sulawesi. The data was analyzed using the Structural Equation Modeling (SEM) method with the Partial Least Squares (PLS) technique. The results show that Apparatus Competence, Community Participation, and Budget Clarity partially have a positive and significant effect on the effectiveness of village financial management. This study also finds that Leadership Commitment significantly strengthens the effect of apparatus Competence, Community Participation and Budget Clarity on the effectiveness of village financial management. These findings indicate that the competence of officials ensures the accuracy and compliance of technical procedures, community involvement creates social control and legitimacy, and transparency in budgeting is important. The implications of this study suggest that human and ethical factors are more influential in optimizing social factors.

Keywords: Village Financial Management, Competence of Apparatus, Community Participation, Budget Clarity, Commitment.

Topic: Accounting and Auditing