Exploring the Role of Human Capital in Mediating the Impact of Fraud Prevention Planning and Development Planning on the Welfare of Society

Yusrizal; Sartiyah; Muhammad  Abrar

doi:10.56225/ijassh.v3i2.318

Authors

Yusrizal Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, Syiah Kuala, 23111 Banda Aceh, Aceh, Indonesia
Sartiyah Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, Syiah Kuala, 23111 Banda Aceh, Aceh, Indonesia
Muhammad Abrar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, Syiah Kuala, 23111 Banda Aceh, Aceh, Indonesia

DOI:

https://doi.org/10.56225/ijassh.v3i2.318

Keywords:

Development planning, Fraud prevention, Human capital, Community welfare

Abstract

Village funds play a crucial role in local development, especially in rural areas often marginalized in national development. However, a case study in South Aceh Regency highlights misuse of these funds through fictitious projects and price manipulation, harming public finances and hindering local economic growth. The study surveyed the entire population of 260 villages in South Aceh Regency. Using a formula considering 28 variable indicators and 4 research dimensions, a minimum sample size of 112 respondents was determined. The sample included Village Officials, Finance Section Heads, Development Section Heads, and Tuha Peut (village elders), and was increased to 120 respondents to ensure representativeness and reliability. Data analysis, conducted using Smart PLS software with the SEM model. The results indicate significant positive relationships between Fraud Prevention and The Welfare of Society p value 0.002, as well as between Development Planning and Human Resources p Value 0.006. These findings suggest that effective fraud prevention measures and robust development planning efforts contribute to enhancing overall well-being and human resource capacity in rural communities. They emphasize the importance of implementing strategies addressing financial integrity and socio-economic development concurrently to drive sustainable progress. Conversely, hypotheses H2, H3, and H5 are not supported by the analysis, indicating no significant relationships between Fraud Prevention and Human Resources p value 0.919, Development Planning and The Welfare of Society p value 0.458, as well as Human Resources and The Welfare of Society p value 0.637.

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