The Influence Of The Whistleblowing System And Village Apparatus Competence On Fraud Prevention In The Management Of Village Funds And Original Income Of Tourism Villages And Village-Owned Enterprises (UMKM)
Abstract
Village financial management in Indonesia, particularly in tourism villages and Village-Owned Enterprises (BUMDes)-based Micro, Small, and Medium Enterprises (MSMEs), faces challenges of vulnerability to corruption and fraud. This study aims to analyze the effect of the implementation of the Whistleblowing System (WSS) and the competence of village officials on fraud prevention in the management of Village Funds and Village Original Income (PADes). The approach used in this study is an empirical quantitative approach with a survey instrument in the form of a questionnaire distributed to village officials, BUMDes managers, and MSME administrators of tourist villages. Data analysis was carried out using Structural Equation Modeling based on Partial Least Squares (PLS-SEM). Theoretical and empirical research results indicate that the Whistleblowing System has a positive and significant effect on fraud prevention because it provides a safe and credible reporting channel and minimizes the intention to commit budget irregularities. In addition, the competence of village officials, including accounting knowledge, regulatory understanding, and integrity, has proven to be a key pillar in closing the gap for manipulation and financial administration errors. The combination of a participatory oversight mechanism (Whistleblowing System) and competent human resource capacity, both partially and simultaneously, has been proven to strengthen the village's internal control system. The implications of this research emphasize the importance of digitizing the violation reporting system and training in sustainable financial governance to achieve transparency, accountability, and economic sustainability in tourism villages and Village-Owned Enterprises (BUMDes).
Keywords: Whistleblowing System, Village Official Competence, Fraud Prevention, Village Funds, Village Original Income, BUMDes, Tourism Village MSMEs.
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Copyright (c) 2026 Putri Ayu Permata Devi, Denara Akmal, Feby Evelina, Islawati Islawati, Fresa Dwi Juniar
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