Do Transparency and Accountability Improve Village Fund Management Performance? Examining the Moderating Role of Internal Control Systems
DOI:
https://doi.org/10.35334/7e596v80Keywords:
Transparency, Accountability, Village Fund Management Performance, Internal Control SystemAbstract
This research investigates how transparency and accountability shape the performance of village fund management, while also assessing the contingent role of internal control systems. Rather than treating governance mechanisms as isolated factors, this study positions internal control as a contextual variable that may alter the effectiveness of transparency and accountability practices. A quantitative explanatory design was adopted, involving 100 respondents consisting of village officials, members of the Village Consultative Body, and community representatives in Tana Tidung Regency. Empirical analysis was carried out using Partial Least Squares–Structural Equation Modeling (PLS-SEM) through SmartPLS 4 to evaluate both direct and interaction effects.The findings reveal that transparency does not exhibit a statistically meaningful contribution to performance outcomes, indicating that information openness alone may not guarantee effective fund management. In contrast, accountability demonstrates a significant positive influence, confirming its central role in ensuring responsible governance. Furthermore, the internal control system shows a dual function: it directly enhances performance and simultaneously moderates the relationships among variables. Interestingly, it reinforces the linkage between transparency and performance, yet attenuates the effect of accountability, suggesting the emergence of excessive control dynamics.These results indicate that governance mechanisms in village fund management do not always produce linear performance outcomes, particularly when control mechanisms interact differently with transparency and accountability. This study contributes to public sector accounting literature by highlighting the conditional and context-dependent role of internal control systems in local governance.
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Copyright (c) 2026 Riyans Ardiansyah, Herman Herman, Alamsa Alamsa, Olivia Pamilangan Andi’lolo (Author)
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