KECEKAPAN PENGURUSAN KEWANGAN DAN PENGURUSAN AGIHAN ZAKAT: KAJIAN TERHADAP MAJLIS AGAMA ISLAM JOHOR (EFFICIENCY OF FINANCIAL AND ZAKAT DISTRIBUTION MANAGEMENT: A STUDY AT JOHOR ISLAMIC RELIGIOUS COUNCIL)

Abstract

The current situation shows that there is still a negative perception among Muslim societies towards zakah institutions in Malaysia. Several previous studies have shown that the negative perception still exists due to the lack of confidence among the societies against the zakah institutions in term of the efficiency of financial management as well as zakah distribution management to asnaf. The response is likely to exist due to some of the negative issues that still occur, such as the efficiency of zakat distribution by the State Islamic Council (MAIN) including the issue of excess amount zakah that are not distributed annually and the distribution of zakat to eight groups of asnaf including the issue of asnaf priority that should be paid attention by zakat institutions. Thus, a study was conducted to measure the efficiency of financial management and the zakah distribution management by Majlis Agama Islam Negeri Johor (MAINJ), using cash flow ratio as a proxy for financial performance and categorizing the performance efficiency of the zakat distribution into two; namely financial efficiency (excess of zakat annually) and non-finance (asnaf priority). A simple regression model is also used to view MAINJ's zakat distribution pattern every year. This study uses the annual financial statement and the data of zakat collection and distribution by MAINJ for the year 2000 to 2013. The findings show that the performance of zakat distribution in financial aspect has increased from year to year indicating improvement of MAINJ's financial performance. While from the non-financial distribution aspect, the average score of zakat distribution was at the best value indicating the amount of zakat allocated following the priority of the asnaf as suggested by Imam As-Syafie. The results of the study can be used as a benchmark of performance efficiency of financial management and efficiency of the zakat distribution management for zakat institutions, especially MAINJ in order to improve the performance of zakat distribution in Johor and Malaysia in general.