Analysis of Internal Control System for Cash Receipts at the Assalam Mosque, East Surabaya: Referring to Definitions and Procedures

Abstract

Purpose: This study aims to examine how the internal control system (ICS) is implemented in the cash receipt process at the Assalam Purimas Mosque in Surabaya, and also to assess how effective the system is in achieving transparency and accountability in the management of mosque finances. Method:  This study uses a descriptive qualitative method with three main techniques in data collection, namely in-depth interviews, direct observation, and document analysis. Interviews were conducted with one source, namely the deputy chairman of the Assalam Mosque management who has access to financial information and decision making. Observations were made on the mosque's financial management activities, which include recording cash receipts and document management. Meanwhile, documentation analysis includes a review of the organizational structure, standard operating procedures, periodic financial reports, and evidence of transactions. The data collected was analyzed based on elements of organizational structure, authorization, documentation, and separation of duties. Findings: The results of the study show that Assalam Mosque has implemented several elements of ICS, such as the separation of duties between the treasurer and secretary which is running well, recording of Cash Receipts is also done digitally using applications such as Excel and Google Sheets, and has used digital payments via Qris. For expenses above IDR 1 million, there is a special authorization procedure. The main sources of cash receipts include regular donors, Friday infaq, and funds from study activities, recorded by the treasurer. However, the aspect of transaction documentation still needs to be strengthened, especially regarding the storage of physical evidence such as receipts and checks. Implication: The findings emphasize the need to improve the quality of human resources, standardize supporting documents, and implement a tiered supervision system to reduce the risk of errors or fraud. Good practices implemented at Assalam Mosque can serve as a benchmark for other mosques to enhance their internal control systems. Originality: This study's results offer a unique and practical contribution by applying ICS theory to mosque financial management, a topic that has rarely been explored before. It also provides strategic recommendations based on field findings that similar religious organizations can use.