VILLAGE GOVERNMENT OFFICIALS' UNDERSTANDING OF THE VILLAGE FINANCIAL SYSTEM INDICATORS: A CONFIRMATORY FACTOR ANALYSIS

• Published in: Humanities & Social Sciences Reviews Vol. 8; no. 1; pp. 389 - 398
• Main Authors: Yulianti, Yulianti, Nirmala Arum Janie, Dyah
• Format: Journal Article
• Language: English
• Published: 28.01.2020
• ISSN: 2395-6518; 2395-6518
• DOI: 10.18510/hssr.2020.8150

Purpose of the study: The research inspiration is the implementation of the Village Law and the dispensing of Village Funds in Indonesia. The considerable measure of Village Funds requires progressively complex responsibility. With limited time and insufficient human resources, there is an inclination of the Village Fund to leak caused by errors and irregularities. Methodology: We utilize questionnaires, interviews, convenience sampling method, and the confirmatory factor as an analysis tool. There are 312 village officials from 83 villages in Central Java, Indonesia, who participated in this research. This examination scans to investigate the indicators that we can identify with town administration and comprehension of the Village Financial System or Sistem Keuangan Desa (Siskeudes). Principal Findings: The results of the confirmatory factor analysis indicate that all indicators are feasible to be used as indicators of measuring all variables. Besides, the Pearson correlation value of all indicators for the total indicators of each variable is significant. It means that the indicators of all constructs in this study are valid and highly correlated. Applications of this study: This examination is still all-around ahead of schedule. So far, there has been no exploration in Indonesia identified with village administration. Consequently, in this investigation, it was expected to incorporate variables that could conceivably have an association with village administration generally and Siskeudes explicitly, since the order of Law No. 6 of 2014. Novelty/Originality of this study: There are six original, perceptive variables, specifically: Siskeudes understanding, village financial management principles, village fund allocation, village financial administration, village financial reporting and accountability, and village assets report. There are 54 new indicators tested in this research. Further research can utilize the indicators to measures the village government officials' understanding of Siskeudes.