Analysis of Zakat Accounting and the Role of the Internal Control System based on Financial Accounting Standards Guidelines (PSAK 109) Zakat Agency in Indonesia

Hari Setiyawati

doi:10.5430/ijfr.v12n1p192

Abstract

This research was carried out because of the phenomenon of the large potential of zakat in Indonesia and the large number of zakat funds that were corrupted due to unaccountable financial reporting. Many payers of zakat (muzakki) still do not believe in National Zakat Agency (BAZNAS), so zakat payments are often not made through the official of BAZNAS. This research was carried out through a survey which was designed to examine the accountability of financial reporting at the amil zakat and amil zakat institutions in Jakarta and Banten, related to internal control competencies and financial reporting accountability. The expected results of this study are an increase in the accountability of financial reporting by conducting sharia accounting training for staff in amil zakat and amil zakat institutions in Jakarta and Banten. The goal of this study is to contribute scientifically to the science of sharia accounting, specifically accounting for zakat, and to assist accounting departments in preparing financial statements. The results of this study state that compliance with the application of zakat accounting with Financial Accounting Standards Guidelines (PSAK 109) had no significant effect on financial reporting accountability, while the role of the internal control system had a significant positive effect on financial reporting accountability.

Highlights

Accountability is a well-known term in the State Administration of the Republic of Indonesia
Zakat receipts have not reached their potential in Indonesia, and one factor is the decision of muzakki not to distribute zakat, issuing a portion of assets or income / income for an interest ruled by Islamic teachings, and practicing property in the way of Allah sincerely without expecting anything in return, and solely expecting His approval as proof of the truth of one's faith.(shodaqoh) to existing zakat management organizations
This study examines the effect of zakat accounting practises based on PSAK 109 and the role of the internal control system in financial reporting accountability

Summary

Introduction

Accountability is a well-known term in the State Administration of the Republic of Indonesia It was a driver of the establishment of Law Number 28 years of 1999 concerning the implementation of a country clean and free from corruption, collusion and nepotism. The muzakki's distrust factor in the management of funds by zakat management organizations, both the BAZNAS and the amil zakat institution (LAZ) in Indonesia, was due to lack of transparency in the financial reports and accountability of BAZ, LAZ and amil as assigned to implement the Collection to the level of distribution of zakat. Muzakki did not get greater benefits if the zakat funds were channelled through BAZ and LAZ compared to direct distribution

Objectives

Methods

Findings

Discussion

Conclusion