The Effect of Internal Control Systems, Community Participation, and Village Financial System on the Accountability of Village Fund Management: Prosocial Behavior as Moderation

Abstract

Giving village funding to every village in Indonesia enables the government-designed development to be carried out through villages. The guiding concepts of openness, responsibility, and involvement should underpin every aspect of Village Fund Management (VFM). By improving the management of Villafe Funds (VF) and fostering the pace of village development, the pace of village development can be accelerated. Planning, carrying out, keeping books, reporting, and taking responsibility are all parts of managing VF. In this study, prosocial conduct will be used as a moderator to examine the effects of internal control mechanisms, community involvement, and village finances on the accountability of VFM. In Pelalawan Regency, Riau Province, the research was carried out by the Village Government. The study's 86 villages made up its population, and 258 people were polled for the sample. Structural Equation Modeling-Partial Least Square (SEM-PLS), a method of data analysis, was employed. The study's findings suggest that the village's financial system, internal control system, and participation in the community all have an impact on the management of the village's funds. Positive social behavior increases the control system's ability to hold the VFM accountable. Practicing good deeds makes the impact of neighborhood involvement on village financial management responsibility stronger. A village's financial system has a stronger impact on the responsibility of the fund management in the community when there is prosocial conduct.

Keywords: Internal Control System, Community Participation, Village Financial System, Accountability of VFM, Prosocial Behavior.