<p class="Abstract">This research is grounded by the enforcement of Village Law and disbursement of Village Fund. The substantial amount of Village Fund demands a more complex accountability. The limited time and inadequate human resources available, this village fund is susceptible to leakage which may be caused by either errors or irregularities.</p><p class="Abstract">Using literature study method, this research attempts to explore the factors potentially related to village administrative governance and understanding of Village Financial System or Sistem Keuangan Desa (Siskeudes).</p><p class="Abstract">The results indicate that there are five resultant variables, namely: understanding of Siskeudes, village financial management principles, special fund distribution or Village Fund Allocation (Alokasi Dana Desa/ADD), village financial administration, village financial reporting and accountability and understanding of village-owned property report. This research still needs to be developed further to test the validity of each variable generated in this research.</p>