This study uses qualitative methodology with the phenomenology and survey approach to reveal and deep understanding of the facts and phenomena related to the research topic. 412.6/1843/418.63/2015 about the technical details of the allocation of rural funds year of 2015. The most prominent problem within this research is due to missing of the accountability and the lack of the right system that explicitly written in the Technical Direction from the related governance No. The practice of the allocation of rural fund allocation (ADD) mostly suffered to its procedure. The Rural Fund Allocation (ADD) is one of the villages’ funds resource taken from the equalization funds received from the Regency holder Kediri. As a logical consequence of their powers and demands of the implementation of a village is the availability of sufficient funds. Based on their jurisprudence, villages in Indonesia have their autonomy rights to maintain their local governance and policy. Villages authorized to regulate and manage the affairs of the government, the interests of the local community based community initiatives, the right of the origin and/or customary rights recognized and respected in the administration system of the Republic of Indonesia (Undang-Undang Nomor 6 Tahun 2014 Tentang Peraturan Pelaksanaan Undang-Undang Nomor 6 Tahun 2014 tentang Desa). The existence of the villages in Indonesia recognized by law and they are expressed as a unit of community with specific boundaries.
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