INTERNAL CONTROL ANALYSIS OF CASH RECEIPTS AND DISBURSEMENTS AT A RELIGIOUS ORGANIZATION
Gede Adi Yuniarta, I Gusti Ayu Purnamawati, & Sunitha Devi

Universitas Pendidikan Ganesha

Abstract

Purposes: This study aims to evaluate the internal control system for cash receipts and disbursements within a religious nonprofit organization, focusing on its effectiveness in preventing fraud. The objective is to assess how well the system aligns with the COSO framework and to identify areas for improvement. Methods: The research uses a qualitative case study approach, collecting both primary and secondary data. Data collection methods include interviews with the congregation leader, treasurer, social fund coordinator, and a congregation member. Observations of cash management procedures were conducted, along with a review of monthly financial reports, budget plans, and the organization^s profile. The data were analyzed through data reduction, presentation, and conclusion drawing. Results: The findings reveal that while the internal control system meets COSO standards in some areas, such as the control environment, information and communication, and monitoring, there are significant weaknesses in risk assessment and control activities. These deficiencies pose potential vulnerabilities for fraud and mismanagement. Conclusion and suggestion: The study concludes that the internal control system requires improvement in the areas of risk assessment and control activities to strengthen fraud prevention. Enhancing these components would bring the system more in line with COSO criteria. Future research could examine how similar nonprofit organizations can overcome resource constraints to implement more effective internal controls.

Keywords: grief cash, internal control system, non-profit organization

Topic: Audit