Financial Accountability Dilemma in Student Organizations: A Qualitative Study from a Public University

Financial accountability presents persistent challenges for student organizations within Indonesian public universities, particularly amid increasing pressures for transparency and efficiency. This study investigates the accountability dilemmas faced by Student Activity Units (SAUs) at the Faculty of Economics and Business, Brawijaya University, where budget compliance expectations often conflict with organizational capacity and ethical practice. Using a qualitative case study design, data were collected through in-depth interviews with SAU members and faculty advisors to explore the dynamics underlying financial reporting behavior. The findings reveal that while SAUs are required to submit accurate financial accountability reports (FARs), institutional incentives strongly encourage full budget absorption. To avoid future budget reductions, some SAUs engage in opportunistic practices such as inflating reports or fabricating expenses. Performance-based budgeting systems, information asymmetry, and weak participatory mechanisms shape these behaviors. The study reveals how agency problems and institutional decoupling can emerge in student-led organizations, even within educational environments. It contributes to understanding how formal accountability systems interact with grassroots financial practices. Practically, it underscores the need for more transparent, ethical, and participatory budgeting processes to align institutional expectations with the capabilities and realities of student actors.