The Influence of Public Accountability and Transparency on the Effectiveness of Community Development Activity Budget Management: An Empirical Study in Sudirejo-I Urban Village, Medan City District, Indonesia

Renny Maisyarah; Agus Tripriyono; Muhammad Ricky gunawan

Authors

Renny Maisyarah Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia
Agus Tripriyono Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia
Muhammad Ricky gunawan Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia

Keywords:

Brand Image, Price, E-Service Quality, Purchase Decision

Abstract

This study aims to examine the effect of public accountability on the effectiveness of community activity budget management in Sudirejo-I Urban Village, Medan Kota District, Indonesia. Public accountability is a fundamental principle of good governance that promotes transparency, responsibility, and efficient utilization of public funds. This research employed a quantitative approach using an associative research design. Data were collected through questionnaires distributed to 109 respondents, including village officials, neighborhood heads, community leaders, and local residents. The collected data were analyzed using descriptive statistics, validity and reliability tests, simple linear regression, t-test, and coefficient of determination (R²) with SPSS Statistics. The findings reveal that public accountability was perceived to be at a good level (mean = 4.14), while the effectiveness of community activity budget management was categorized as effective (mean = 4.15). Regression analysis produced the equation Y = 12.318 + 0.731X, indicating a positive relationship between public accountability and budget management effectiveness. The hypothesis testing results showed a significant positive effect of public accountability on budget management effectiveness (t = 8.962, p < 0.001). Furthermore, the coefficient of determination (R² = 0.581) indicates that public accountability explains 58.1% of the variance in the effectiveness of community activity budget management. These findings suggest that strengthening transparency, compliance with regulations, information disclosure, and community participation can significantly improve financial governance and budget management effectiveness at the village government level.

References

Bovens, M. (2007). Analysing and assessing accountability: A conceptual framework. European Law Journal, 13(4), 447–468. https://doi.org/10.1111/j.1468-0386.2007.00378.x

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47. https://doi.org/10.5465/amr.1997.9707180258

Government Regulation of the Republic of Indonesia Number 12 of 2019 concerning Regional Financial Management

Hood, C. (2010). Accountability and transparency: Siamese twins, matching parts, awkward couple? West European Politics, 33(5), 1009. https://doi.org/10.1080/01402382.2010.486122

Hair, J.F., et al (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage Publications.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Law of the Republic of Indonesia Number 17 of 2003 concerning State Finance.

Law of the Republic of Indonesia Number 1 of 2004 concerning State Treasury.

Law of the Republic of Indonesia Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments.

Mahmudi. (2021). Manajemen kinerja sektor publik (4th ed.). UPP STIM YKPN.

Mahmudi. (2019). Analisis laporan keuangan pemerintah daerah (4th ed.). UPP STIM YKPN.

Mardiasmo. (2021). Akuntansi sektor publik (Edisi terbaru). Andi.

Organisation for Economic Co-operation and Development. (2020). OECD Public Integrity Handbook. OECD Publishing. https://doi.org/10.1787/ac8ed8e8-en

Pratiwi, R., & Nugroho, A. (2024). Public accountability and budget management effectiveness in local government institutions. Jurnal Akuntansi dan Audit Indonesia, 28(1), 45–58.

Rahmawati, D., & Hidayat, T. (2022). The influence of accountability and transparency on regional financial management performance. Jurnal Tata Kelola & Akuntabilitas Keuangan Negara, 8(2), 119–134.

Republik Indonesia. (2003). Undang-Undang Republik Indonesia Nomor 17 Tahun 2003 tentang Keuangan Negara. Sekretariat Negara Republik Indonesia.

Republik Indonesia. (2004). Undang-Undang Republik Indonesia Nomor 1 Tahun 2004 tentang Perbendaharaan Negara. Sekretariat Negara Republik Indonesia.

Republik Indonesia. (2019). Peraturan Pemerintah Republik Indonesia Nomor 12 Tahun 2019 tentang Pengelolaan Keuangan Daerah. Sekretariat Negara Republik Indonesia.

Republik Indonesia. (2022). Undang-Undang Republik Indonesia Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah. Sekretariat Negara Republik Indonesia.

Setyaningrum, D., & Syafitri, F. (2012). Analisis pengaruh karakteristik pemerintah daerah terhadap tingkat pengungkapan laporan keuangan pemerintah daerah. Jurnal Akuntansi dan Keuangan Indonesia, 9(2), 154–170.

Siregar, H., & Nasution, R. (2023). Public accountability and community participation in improving local government budget effectiveness. Jurnal Ilmu Administrasi Publik, 11(2), 156–170.

Sopanah, A., & Wahyudi, I. (2021). Public accountability and financial management performance in local government institutions. Journal of Accounting and Investment, 22(2), 245–260. https://doi.org/10.18196/jai.v22i2.11142

Sugiyono. (2023). Quantitative, Qualitative, and R&D Research Methods. Alfabeta.

United Nations Development Programme. (1997). Governance for sustainable human development. UNDP.