Stronger HR and Internal Systems Key to Transparent Financial Management in Bintan Buyu Village

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FORMOSA NEWS

A 2026 study by Al Dzahabi Rachman, Rico Wijaya, and Sri Rahayu from Universitas Jambi reveals that the competence of village officials and robust internal control systems are the primary drivers of effective financial management in Bintan Buyu Village. The research underscores the critical necessity of skilled human resources in ensuring that village funds are managed transparently, accountably, and in full compliance with government regulations.

The Challenge of Village Governance

Effective village financial management is a cornerstone of good governance, essential for utilizing state funds to improve community welfare. Despite its importance, many regions face persistent challenges, including difficulties in navigating financial applications like Siskeudes, frequent administrative errors, and significant delays in financial reporting. These obstacles often stem from gaps in technical knowledge and a lack of rigorous oversight.

Research Approach

The researchers employed a quantitative approach, analyzing data gathered from 40 respondents, including village officials and community members involved in financial oversight in Bintan Buyu. By distributing structured questionnaires, the study measured key indicators such as employee knowledge, skills, work attitudes, and the strength of internal supervision mechanisms.

Key Findings

The data indicates a clear, positive relationship between operational competency and financial success. Key takeaways include:

• HR Competence Impact: Officials who possess a deep knowledge of financial regulations and demonstrate mastery over administrative software exhibit significantly higher efficiency in managing the village budget.
• Internal Control System: A well-implemented system of checks and balances—including consistent monitoring, risk assessment, and clear communication—is crucial for minimizing errors and ensuring financial transparency.
• Combined Effectiveness: The study concludes that the synergy between skilled personnel and strong internal controls explains approximately 60.8% of the variation in the effectiveness of village financial management.

Implications for Local Administration

These results serve as a blueprint for local governments across Indonesia. According to the research team, improving the technical skills of village staff is not merely an administrative upgrade but a prerequisite for maintaining public trust. When officials understand how to navigate financial reporting and apply rigorous internal controls, the resulting transparency directly benefits the community by ensuring that development projects and financial goals are delivered on time and within budget.

Author Profiles

• Al Dzahabi Rachman, Rico Wijaya, and Sri Rahayu are researchers affiliated with Universitas Jambi. Their collaborative work focuses on enhancing public sector financial accountability and human resource development within Indonesian village governance systems.

Source Information

• Research Title: The Influence of Human Resources Competencies and Internal Control Systems on the Effectiveness of Financial Management (Case Study of the Bintan Buyu Village Community)
• Journal: International Journal of Education and Life Sciences (IJELS), Vol. 4, No. 6, 2026
• DOI: https://doi.org/10.59890/ijels.v4i6.22