The Influence of Accountability in the Management of Kepenghuluan Funds on Public Trust Mediated by Transparency in Pekaitan District

Abstract

The management of village funds (Kepenghuluan) plays a crucial role in the development and welfare of the Kepenghuluan community. However, the lack of accountability and transparency often leads to public distrust, particularly in the Pekaitan Sub-district, which has recorded several cases of misappropriation of village funds. This study aims to examine the influence of accountability on public trust, with transparency as a mediating variable. The results of this research are expected to provide theoretical insights and practical recommendations to enhance good governance of Kepenghuluan funds, thereby restoring public trust and encouraging community participation in village development. The population of this study consists of all members of the Village Consultative Body (Badan Permusyawaratan Kepenghuluan) in the Pekaitan Sub-district. The sample was selected using a saturated sampling technique. Data were collected through questionnaires distributed directly to respondents. The data analysis method employed in this study is Structural Equation Modeling (SEM), using SmartPLS 4.0 as the data processing tool. The results of the study indicate that accountability has a positive impact on public trust, transparency has a significant positive influence on public trust, and transparency positively affects the accountability of Kepenghuluan fund management. Moreover, transparency is also capable of mediating the effect of accountability on public trust.