Based on the data of Ministry of Village, Development of Disadvantage Area and Transmigration delivered in Akuntan Indonesia Magazine issued on January- February 2015, it is stated that the human resources of village officials in Indonesia are not sufficient for carrying out a good management and report. Whereas based on Law No. 6 of 2014 on Villages, village funds derived from the state budget reached 10% of regional transfer funds or approximately Rp.68-70 billions. The village officials, as the power of budget users, will be audited by BPK. In the previous distribution of budget funds to village institutions, it was still found many deviations, which can be affected by legal consequences.
Irianto (2008) argued that accountability is basically one of the key factors in answering any claims against the government's performance. It can be interpreted that accountability should still be given and realized, whoever the recipient of the funds, because based on the mandate of Law No. 6 of 2014 the funds are intended for the care of the interests of village communities, especially to drive their economy. The large amount of funds allows the village to develop a variety of programs that are certainly expected to be able to solve various problems of the village community.
The birth of this law requires optimization of good governance in the village administration, where accountability is one of the constituents. A good system in the planning, implementation and accountability of the use of funds is necessary to realize and prove that the funds are used properly (Padmani, 2014). Village financial management is an effort to support the implementation of village government, village development, village community development and village community empowerment. Financial management is a cycle consisting of planning and budgeting, implementation, administration, reporting, accountability, guidance and supervision, reporting and monitoring and evaluation (Yabbar & Hamzah, 2015).
The above explanation led to various dimensions which will presumably affect the accountability of village financial management that is human resources must be competent in the management and reporting, the need for assistance for village community, especially in the financial management and the need for monitoring which in this context is guidance and supervision, especially in village financial management.
Based on the above problems, the main issue that becomes the concern of the study is: Does the human resource competencies, village assistant and monitoring influence the village financial management.
Local Government Accounting
Government accounting (including accounting for non-profit institutions) is the area of accounting related to government institutions and other institutions that are not for profit (Baswir, 1995). Government accounting is essentially part of micro accounting that functions to record and report the realization of the implementation of a state's budget. The implication of the emergence of the law on village is each village is expected to be able to manage their own finances professionally. Therefore, in terms of government accounting there will be a separation in terms of standards used in financial reporting. So far, there is central government accounting, local government accounting and now there will be village administration accounting.
Competence of Human Resources
Competence becomes the underlying characteristic of a person and is concerned with the effectiveness of individual performance in his work (Spencer & Spencer, 1993). Determining the required threshold of competence will certainly be the basis for the process of selection, succession, planning, performance of evaluation and human resource development. Joko (2005) stated that individual performance can be optimal if the individual has a competence that is reliable in their field. The reliability of human resource competence can be formed, in which the formation is strongly influenced by the organizational capability in managing human resources into several specifications of individual competence, among others: (1) competence of goal achievement, (2) competence of problem solving, (3) competence of interaction to others and (4) competence of teamwork.
The scopes of village assistance include (Yabbar & Hamzah, 2015) conducting village assistance in phases to empower and strengthen the village; 2) assistance in accordance with the needs of rural communities based on the geographical conditions of the region, the value of village budget and scope of the activities assisted and 3) the government, provincial government, regency/city government and village government who make efforts to empower rural communities through sustainable assistance including the provision of human resources and management.
Monitoring (Guidance and Supervision)
Supervision of the implementation of village government is a process of...