The Role of the Kutai Kartanegara Regency Regional Inspectorate in Improving Accountability in Village Fund Management

Abstract : The goal of this study is to examine the role of the Inspectorate in enhancing the accountability of village fund management in Kutai Kartanegara Regency through the aspects of duties/functions, attitudes, perceptions, and participation. It also examines internal and external factors that become barriers to the Inspectorate’s ability to effectively supervise and provide guidance on village fund management. This research was carried out in Indonesia’s East Kalimantan Province’s Kutai Kartanegara Regency. A qualitative research design was employed in this study. Both primary and secondary data were gathered. A questionnaire was used to gather primary data from key informants. The study’s conclusions include that the Inspectorate has performed its responsibilities and tasks well. The inspectorate has effectively performed its participation duty, behaves well and professionally, and faces both internal and external challenges. The inspectorate’s role in overseeing village funds in the perception aspect exhibits a variation in assessments. Internal challenges include low-quality and scarce human resources (HR), inadequate accountability reports, and the newly formed village apparatus has low administrative and financial reporting skills. On the other hand, frequent regulatory changes, improper use of village funds, and inadequate internal and external monitoring systems are the external challenges. The following suggestions are available for submission: 1) For the government, via the Kutai Kertanegara Regency Regional Inspectorate, to expand the number of auditors and enhance their proficiency through risk-based audits and investigative audit training; 2) to create a digital monitoring system (e-audit or monitoring dashboard) to reduce potential inconsistencies and enable real-time tracking of village fund realisation; 3) to increase the proficiency of village apparatus by providing frequent training on the following topics: creating accountability reports (LPJ), managing village finances in accordance with regulations, and using village financial software; and 4) to provide new village authorities with rigorous mentoring.