The Influence of Financial Reporting Compliance and Internal Control Systems on Accountability of Zakat Fund Management

Abstract

Purpose:
This study aims to examine the effect of financial reporting compliance and internal control systems on the accountability of zakat fund management at the National Zakat Agency (BAZNAS) of Baubau City.

Design/methodology/approach:
This study employed a quantitative research approach using primary data collected through questionnaires distributed to 47 respondents consisting of BAZNAS and Zakat Collection Unit (UPZ) administrators in Baubau City. Secondary data were obtained from literature, regulations, and supporting documents related to zakat management. The data were analyzed using multiple linear regression analysis, including validity and reliability tests, classical assumption tests, partial tests (t-test), simultaneous tests (F-test), and coefficient of determination (R²).

Findings:
The results indicate that financial reporting compliance does not significantly affect the accountability of zakat fund management, as evidenced by a significance value of 0.990, which is greater than 0.05. Conversely, the internal control system has a significant positive effect on accountability, with a significance value of 0.000, which is lower than 0.05. Simultaneously, financial reporting compliance and internal control systems significantly influence accountability. The coefficient of determination shows that 67.1% of the variation in accountability can be explained by these variables, while the remaining 32.9% is influenced by other factors outside the research model.

Practical implications:

The findings suggest that BAZNAS should strengthen internal control mechanisms and improve financial governance practices to enhance accountability, transparency, and public trust in zakat management institutions.

Originality/value:
This study contributes empirical evidence regarding accountability in zakat institutions at the local government level by examining the simultaneous role of financial reporting compliance and internal control systems within BAZNAS Kota Baubau.

Paper type: Empirical paper.