The Model of Effective Village Financial Management to Create an Independent and Prosperous Village

Abstract

The increasing number of government funding to the village/state, it should be that the village/state will be able to build its territory which ultimately increases the independence and welfare of its people. For that, the village as self-governing community and self-local government is encouraged to be able to do development planning and budgeting planning (or APBDes). APBDes is the next implemented and accounted for in the context of village financial management. In the country's financial management conditions which are not yet supported with competent human resources, regulations that have not been directed enough, and very limited facilities and infrastructures, the village has not been able to realize the ideals of government to become a village and improve the welfare of the village/State community. Therefore, a model of the village's financial management is effective in realizing the ideals. This study implements qualitative method on the phenomenon related to the effectiveness of village financial management in realizing independent villages and improving the welfare of the village/State community in Ambon City, Maluku province. Analysis was conducted on the dimension of effectiveness, dimension of village financial management, as well as the dimensions of community welfare in 5 (five) villages/countries in Ambon city. The analysis technique implements the Analytical Network Process (ANP) method and model development with Soft System Methodology (SSM) method. Application of ANP is done to produce identify the most dominant problems in the management of village finances. The priority of this problem will be the analysis that is then used to develop a new model of the village's financial management effective in improving the welfare of the village/State community.