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

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.

Another phenomenon that exists today is the lack of trust in the LAZ towards the management of zakat itself. Indonesian people in general have not distributed zakat to institutions that already have permission to manage zakat. The challenge for zakat management institutions is to foster trust in the community. Although LAZ is essentially an institution based on religious concepts, assigning to them a form of high accountability to Allah SWT, people still need information as a reference for evaluating the performance of LAZ. Transparency issues at LAZ should not be ignored (Dulkiah, 2017).
In carrying out its operational activities, the non-profit organization LAZ receives donations in the form of objects and money. To maintain the trust of the people who have donated part of their wealth, LAZ managers are expected to be able to present financial statements of zakat in accordance with Financial Accounting Standards Guidelines (PSAK 109). By preparing an accurate financial report, zakat accounting can be applied effectively (Nikmatuniayah & Marliyati, 2015).
From several existing studies, it can be concluded that at present there are still Amil Zakat institutions that have not implemented the accounting zakat according to PSAK 109. Their internal controls remain weak, resulting in deviations from zakat funds which reduce accountability of financial statements. Based on this background, the issue addressed in this study is whether the application of zakat accounting based on PSAK 109 and the role of the internal control system affects the accountability of financial reporting. This study aims to examine and analyse these effects.

Theoretical Study
Base on accountability theory by Vance et al. (2015) and the importance of internal control as stated by Committe of Sponsoring Organization of the Treadway Commission (2013), this study emphasizes the importance of internal control to the reliability of financial reports, effectiveness and efficiency of operations and compliance toward applicable laws and regulations. The goal is to prevent errors in explaining actions in managing the potential for positive or negative consequences.

Financial Reporting Accountability
Accountability is intended as the principle of regulating the roles and responsibilities of management so that company administration can be accountable and support efforts to guarantee the balance of management and shareholders' interests, as overseen by the board of directors (Effendi, 2016: p. 13).
The principle of Amanah (accountability) is also explained in the Qur'an, Surat al-Baqarah verse 283: "... the person who is believed to be obliged to fulfil his mandate, and devote to the God. Do not hide your testimony. And Allah knows all that you do." According to Mahmudi (2013: p. 9), public accountability is defined as: "Obligation of agents (government) to manage resources, report, and disclose, all activities and activities related to the use of public resources to the credentials." Public accountability, according to Bastian (2010 p. 385), is: "The obligation to convey accountability or to answer, explain performance, and the actions of a person or legal entity and collective leadership or organization to those who have rights or authority to ask for information or accountability." Mardiasmo (2018) states that public accountability is the obligation of the trustee (agent) to provide accountability, present, report, and disclose all activities and activities which are his responsibility to the trustee (principal) who has the right and authority to request responsibility (Setiyawati, 2013;Setiyawati & Doktoralina, 2019). Public accountability according to Mursyidi (2013: p. 44) is: "To account for the management of resources and the implementation of policies entrusted to reporting entities in achieving periodically set goals."

Zakat Accounting Based on PSAK 109
The accounting discussed here refers to PSAK 109, the scope of which is limited to amil zakat which receives and distributes zakat, infaq, and shodaqoh. Sharia accounting deals with the recognition and recording of transactions and the disclosure of rights and obligations fairly (Widiana, 2018

The Role of the Internal Control System
Internal control is a process that is designed, implemented, and maintained by management and other employees to provide adequate confidence in achieving the entity's goals regarding the reliability of effective financial statements, efficiency of operations and compliance with laws and regulatory provisions (Tuanakotta, 2015: p. 93). According to Susanto (2017: p. 95), "Internal Control can be defined as a process that is influenced by the board of directors, management and employees designed to provide assurance that organizational goals will be achieved through: efficiency and effectiveness of operations, presentation of financial statements that can trusted and obedience to the law.

Framework
There are amil zakat institutions that have applied zakat accounting to their financial statements, but there are still many that have implemented only partially or not at all. According to ; Hermawan & Astriana (2010), the financial report data of a amil zakat institution can be presented in a complete manner, revealed by the presentation of financial statements that are simple and accountable. Ritonga (2017) concluded that in presenting the financial statements of BAZNAS North Sumatra, it had applied accounting for zakat but was not fully in accordance with the standard. Lubis & Saragih (2018) concluded the same: that the North Sumatra amil zakat agency had not fully implemented PSAK 109 in accounting and financial reporting. Trisnawati & Megawati (2015) came to the different conclusion that the application of PSAK 109 concerning accounting for zakat at the BAZNAS in Pekanbaru is a proof of the commitment of the management in realizing transparency and accountability for the management of zakat, infaq, and shodaqoh. The results of Nikmatuniayah (2014) research on the internal control system at BAZNAS, found that there were weaknesses in complying with internal control. Aisyah (2013) also states that there are weaknesses in the application of the zakat fund internal control system at the amil zakat agency in Pare-pare.
Based on a review of theories and previous research, in this study a framework of thought was constructed as shown in Figure 1.

Research Design
This research is an exploratory study with a type of causal study where the researcher wants to find the cause of one or more problems (Sekaran & Bougie, 2016). 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. This study intends to explain the causal relationship between variables through testing hypotheses. Some of the things that will be discussed include: research objects; research methods; population and samples; types and sources; data collection techniques; testing data; and methods of data analysis.

Selection Methods and Data Collection
The target population as a whole unit of analysis in this study is all amil zakat agencies and the amil zakat institutions of the provincial, regency, city, and regional governments in the Jakarta and Banten regions, totalling 42 entities. All members of the population are sampled; therefore, the sampling method is called a saturated sample. The observation unit in this study is the accounting and finance section. The names of amil zakat agencies and amil zakat institutions in Jakarta and Banten that are members of the sample can be seen in Table 1 below.

Data Analysis Method
Data were analysed using multiple regression models and processed using SPSS. The analysis used in this research is descriptive statistics analysis, data quality test, classical assumption test, model suitability test, and hypothesis test.

Descriptive Statistics Analysis
The following is a table of compliance variables for the accounting application of zakat PSAK 109.  Table 2 shows that compliance of zakat accounting practice based on PSAK 109 is in the High category; thus, it can be concluded that compliance of accounting zakat practice based on PSAK 109 in the Jakarta and Banten provinces is already good.
The role of the internal control system variables have five dimensions: environmental control, integrity, values, and ethics; risk assessment; control activities; information and communication; and monitoring. Based on the range of values and categorization, each variable and indicator variable for the role of the internal control system can be seen in Table 3 below.  Table 3 illustrates that the role of the internal control system has an average score of 4.37 and is included in the very high category. The lowest score is 4.26 for monitoring, while the highest score is 4.55 for control environment, integrity, values, and ethics. It can be concluded that the role of the LAZ internal control system in Jakarta and Banten provinces has been very good.
The following is a table of Financial Reporting Accountability Variables.  Table 4 shows that the financial reporting accountability variable has an average score of 4.48 and is included in the very high category. Based on these results, it can be interpreted that the financial reporting accountability of LAZ in Jakarta and Banten provinces has been very good.

Validity and Reliability Test Results
Based on the results of the validity test, it can be seen that all variables consisting of compliance with the accounting application of zakat PSAK 109 and the role of the internal control system on financial reporting accountability are valid or can be maintained, as shown in the following table.

Valid
If muzakki determines the mustahik (the people that receives the distribution of zakat) through amil, then there is no part of amil for the zakat received, but amil can obtain the fee of charge for a service (ujrah) from muzakki, excluding zakat funds. Ujrah is recognized as an addition to the amil fund.

Valid
Decreasing the asset value of zakat is recognized: as a deduction from zakat funds if it is not caused by amil's negligence; loss and reduction of amil funds, if caused by amil negligence.

Valid
Zakat distributed to mustahik, including amil, is recognized as a deduction from zakat funds in the amount given or the carrying amount.

Compliance of Financial Statement Presentation
Amil presents zakat funds, infaq/charity funds, and amil funds separately in the statement of financial position.

Compliance of Zakat Transactions Disclosure by Amil
Amil funds are presented separately in the statement of financial position.

Valid
The zakat distribution policy, such as determining the priority scale of zakat distribution and non-amil mustahik.

Valid
The policy of distributing zakat for amil and non-amil mustahik, such as percentage sharing, reasons, and policy consistency.

Valid
Details of the amount of distribution and zakat for each mustahik. Source: Data processed (2019) The following is the result of Cronbach's alpha testing.  (2017) As evident from the data above, the compliance of zakat accounting practice PSAK 109 and the role of the internal control system has a cronbach's alpha value above 0.80, which is very reliable, and financial reporting accountability has an alpha cronbach's value >0.60 -0.80, which is reliable. It can be concluded that the construct has good reliability. Thus, the research instrument can be used to examine the same data in relatively the same conditions, with the probability of reliable research results.

Classic Assumption Test
Based on the Kolmogorov-Smirnov test results, the value of Z for all variables is 0.098, with a significant value (Sig2-Tailed) of 0.20>0.05. It can be concluded that the data is normally distributed. Likewise, it can be seen in the histogram image of residual distribution data (error) showing an image in the form of a bell, and in a normal probability plot picture there is an error (in the form of a dot) around a straight line. The regression model meets the normality assumption, considered normally distributed. Table 8 illustrates that the magnitude of the correlation between the independent variables has a fairly high correlation that is equal to 0.611 or around 61.1%, but still below 95%, so it can be said that there is no serious multicollinearity. The calculation results of the tolerance value indicate that there is no independent variable that has a tolerance value of <0.10, which means there is no correlation between independent variables whose value is more than 95%. The calculation result of VIF value also shows that there is no independent variable that has a VIF value >10. From these conditions, it can be concluded that there is no multicollinearity between independent variables in the regression model.  (2019) In Figure 2 below, it can be seen that the variance of the residue does not have a certain pattern or is scattered randomly, so the regression does not contain elements of heteroscedasticity.

Figure 2. Heteroscedasticity Test Results
Likewise, utilizing a glejser test, the significance value of the compliance of zakat accounting practice based on PSAK 109 is 0.611 or more than 0.05, while the internal control system role variable is 0.847 or more than 0.05. It can be concluded that the regression model does not contain any indication of heteroscedasticity.

Goodness of Fit
From the data shown in Table 9, the amount of adjusted R 2 is 0.208, meaning 20.8% of variables in financial reporting accountability can be explained by variations of independent variables in both compliance of zakat accounting practice PSAK 109 and the role of the internal control system. The remaining 79.2% is explained by other causes outside the model, such as transparency and effectiveness in the management of zakat.  (2019) Based on the F test table below, it can be seen that the significance of the test is 0.004. This means the research model of compliance of zakat accounting practise based on PSAK 109, the role of the internal control system, and the financial reporting accountability that is being tested has been fit.

Hypothesis Testing
The following is a table of test results for t statistical significance.  (2019) From Table 11 above, it can be seen that compliance of zakat accounting practice based on PSAK 109 has a significant value of 0.847, meaning that there is no significant effect of the compliance of zakat accounting practise based on PSAK 109 on financial reporting accountability at amil zakat institutions and amil zakat agencies in Jakarta and Banten provinces. On the other hand, the role of the internal control system has a significant value of 0.012, meaning that there is a significant effect of the role of the internal control system variable on financial reporting accountability at the amil zakat agencies and amil zakat institutions in Jakarta and Banten provinces.

Multiple Regression Test Results
The constant of 4.932 shows that if the independent variables compliance of zakat accounting practice based on PSAK 109 and the role of the internal control system are assumed not to be carried out (equal to 0), then the value of financial reporting accountability is very small at 4.932%. This shows the importance of compliance of zakat accounting practice based on PSAK 109 and the role of the internal control system towards the creation of financial reporting accountability.
The regression coefficient of the compliance of zakat accounting practice based on PSAK 109 is 0.011. The coefficient is positive, so it can be concluded that there is a unidirectional relationship between compliance of zakat accounting practice based on PSAK 109 with financial reporting accountability. But in this study, the test results show that there is no significant effect of compliance of zakat accounting practice based on PSAK 109 on financial reporting accountability.
The regression coefficient of the role of the internal control system is 0.131. The coefficient is positive, so it can be concluded that there is a unidirectional relationship between the roles of the internal control system with financial reporting accountability. In this case, if the role of the internal control system increases, financial reporting accountability will increase as well.

The Influence of Compliance of Zakat Accounting Practise Based on PSAK 109 on Financial Reporting Accountability
Establishing if compliance of zakat accounting PSAK 109 practice does not have a significant effect on financial reporting accountability could be determined by whether the respondent is an amil zakat institution that is licensed or not licensed. LAZ, who are not licensed, do not feel they have an obligation to follow the zakat accounting PSAK 109 in the practice of accounting in their institutions, and compliance of zakat accounting PSAK 109 practice did not have a significant impact in increasing zakat funds at amil zakat institutions, according to respondents. PSAK 109, concerning zakat and infaq/shodaqoh accounting is a guideline for its management institution. With the adoption of this PSAK, it is expected that the uniformity of reporting and the simplicity of records can be realized so that the public can read the amil zakat accounting reports and oversee their management. In addition, the application of PSAK 109 aims to ensure that LAZ has used sharia principles and is used to measure LAZ's level of compliance with its application. However, based on the results of this study, amil zakat institutions have not fully followed the accounting practices of zakat accordance PSAK 109. From the results of this study there are still many amil zakat institutions that have not implemented PSAK 109 for financial reporting. In addition, many of the financial statements of amil zakat institutions have not been audited by public accounting firms. This result is consistent with research conducted Alim (2015;P & Umah (2011;Restuningtyas, Marina, & Nuraini (2017;Ritonga (2017;Trisnawati & Megawati (2015) that compliance of zakat accounting PSAK 109 practice has no significant effect on financial reporting accountability.

The Influence of the Role of Internal Control Systems on the Financial Reporting Accountability
The role of the internal control system has a positive significant effect on financial reporting accountability. The results of the study prove that the environment of control, the value of integrity and ethics, risk assessment, activities of control, information, communication, and monitoring were considered important by the respondents, and under such internal control reporting accountability is favourable. The amil zakat institutes have understood the importance of a good internal control system and implemented it in their management. This finding supports previous research conducted by Hamidi & Suwardi (2013); Nikmatuniayah (2014); Nikmatuniayah & Marliyati (2015); Wijaya, Adiputra, & Darmawan, (2014) where influences testing of the role of internal controls on public accountability simultaneously showed excellent results in financial reporting accountability.

Conclusions and Recommendations
Based on the data that has been collected and the tests that have been carried out, it can be concluded that compliance of zakat accounting PSAK 109 practice has no significant effect on financial reporting accountability, possibly because there are still Amil Zakat institutions that have not fully implemented PSAK 109. The role of an internal control system has a positive significant effect on financial reporting accountability, proving that an amil zakat institution has understood the importance of a good internal control system and implemented it in the management of its institutions. LAZ wants to gain trust from the public, and it will with the accountability of financial reporting.
Amil zakat institutions must seek to increase understanding of the importance of the use of zakat accounting and the application of PSAK 109 to encourage good and responsible financial statements. accountability reporting can increase public confidence in amil zakat institutions. Based on research limitations, further research should focus on accountants' ethics for the application of internal control systems, such as ethics in recording Islamic transactions, by using this as a trigger for them to improve Islamic financial accountability. In particular, by increasing the number of samples, a methodological evaluation approach is used that involves sharia parameters and connects the variables of accountants' behavior, especially those related to zakat. For the public, recent research provides information that can provide insight and knowledge about decision making related to sharia transactions, especially zakat. For the government, the results of the current study indicate that the application of zakat accounting can not only maintain economic stability, but also benefit zakat management activities in society.