Before the enactment of Act Number 6 of 2014 concerning Villages based on the laws and regulations, the Village Head had the authority to manage the village finance. The budget policy requires that the central government directly transfer some amount of funds to the village. Due to it, the improvement of the capability and the professionalism of the village officials to manage the funds must be carried out. Beside that a village fund management system is strongly needed to prevent corruption. Act No. 72 of 2005 concerning villages in article 14 paragraph 2 explains that the village head in carrying out the tasks of administering the government affairs, development and community services has the authority to coordinate in a participatory manner. The enhancement of the professionalism and competency of the village officials in the field of law, concerning all atcs and regulations related to the management of the village fund and government finance, is obligatory to do through any assistance or coaching in planning, implementation and reporting of each funded program. In addition, it is also necessary for the village officials to increase their knowledge related to public service ethics. Thus it is highly expected that the village officials have adequate competence in managing the village funds so that corruption can be prevented as early as possible.
