Oversight of village financial management is a crucial mechanism for ensuring accountability and compliance in the use of public resources, but the effectiveness of its implementation still faces various obstacles at the local government level. This study aims to analyze the implementation of village financial management oversight by subdistrict governments and to identify its supporting and hindering factors. The study employs a descriptive qualitative approach in Balerejo Subdistrict, Madiun Regency, Indonesia. Data were collected through interviews, observations, and documentation involving seven purposively selected informants, and were analyzed using the Miles, Huberman, and Saldaña interactive model. The results indicate that oversight has been carried out through evaluations of the village budget (APBDesa) draft, evaluations of village financial management, and evaluations of accountability documents. From the perspective of policy implementation, communication has been supported by various mechanisms for information dissemination and coordination; the disposition of implementers is reflected in oversight accompanied by guidance; and the bureaucratic structure demonstrates a clear division of responsibilities. However, limitations in human resources and budget continue to restrict the intensity of oversight. Implementation is also supported by clear regulations, standard operating procedures (SOPs), the use of information technology, and interagency coordination; however, it faces challenges related to the digital capacity of village officials, regulatory changes, and reporting compliance. The study concludes that there is a gap between regulatory compliance and implementation capacity; therefore, strengthening oversight requires improving civil servant capacity, providing resource support, promoting digital adaptation, and enhancing interagency coordination.