The Murung Raya District Government made a policy of providing assistance of 1 billion IDR per village per year to increase development in rural areas. The policy is outlined in Local Regulation number 3 of 2013, so that since 2014 every village in Murung Raya district has received an APBD Fund allocation of IDR 1 billion to build facilities and infrastructure, in accordance with the conditions of each problem. The policy is local, and comes from APBD funds, made long before there is a Government policy on Village Funds. Practically every village in Murung Raya Regency has the potential to utilize funds of 2 billion IDR per year, when at the same time there was a Government policy to allocate Village Funds of 1 billion IDR per year. Based on the results of the preliminary survey, there are symptoms that the 1 billion IDR in aid for that rural development cannot be fully utilized by village officials. This research focuses on finding out the causes of why it happened. Using a positivistic approach with an evaluation method based on a case study, this study found the fact that among the factors that most determine the ineffectiveness of the use of the IDR 1 billion APBD funds that allocated to the development of each village in Murung Raya Regency was mainly due to low quality of aparatus village, and related to the capacity of the Headman as the person in charge of the program.