BUMDesa Financial Accountability: What is The Role of BUMDesa Accounting and Implementation of SAK ETAP?

Abstract

The presence of BUMDesa can serve as a means to alleviate the country's economic crisis, as seen by the employment opportunities it provides in severalprovincesin Indonesia and the substantial revenue it generates for the community. Nevertheless, the viability of BUMDesa's activities is intrinsically linked to the substandard nature of BUMDesa's financial statements. Some BUMDesa still fail to produce financial reports due to a deficiency in their grasp of accounting literacy and management. NumerousBUMDesa frequently fail to achieve progress in their economic endeavors, and using BUMDesa development funding is inefficient. This study empirically examinesthe function of BUMDesa financial responsibility in accounting and the implementation of financial accounting standards for entities without public accountability (SAK-ETAP) by creating BUMDesa financial statements. How is financial accountability achieved in BUMDesa? What is the function of accounting in BUMDesa management, and are BUMDesa's financial statements presented according to SAK-ETAP? This research study will also be evaluated using entity theory, which highlights the importance of management taking responsibility, ensuring business continuity, and providing financial information to stakeholdersof the corporate entity. The qualitative research methodology uses a descriptive technique rooted in phenomenology. This study utilizes primary data from interviews with key informants, including the director and treasurer of BUMDesa "Pule Sejahtera."Thestudy's findings suggest that BUMDesa "Pule Sejahtera" financial statements lack full accountability. Accounting is crucial for BUMDesa's success in ensuring its financial accountability. SAK-ETAP is restricted to creating cash-in and cash-out records to calculate the ultimate balance of BUMDesa's assets. The leadership of BUMDesa "Pule Sejahtera" should promote the understanding of accounting and provide financial support.