Internal control in Trinidad and Tobago religious organizations

Abstract

The purpose of this paper is twofold. First, it describes the nature of internal controls (IC) in Christian and Hindu religious organizations (ROs) in Trinidad and Tobago. Second, the paper provides an assessment of the relative comprehensiveness of IC among the ROs examined and offers tentative explanations for the findings. Most of the information used in the paper was collected by conducting structured interviews with the chief financial officer(s) of each RO. This information was supplemented by published studies. The findings indicate that the ROs as a group have inadequate and patchy IC systems. Conversely, all the ROs examined had implemented many of the basic foundational elements of an effective IC system. This suggests that they could significantly improve the quality of their IC systems by instituting some fairly minor and cheap practices. The implications of these findings for administrators and researchers of ROs are discussed.

A Case Study of Internal Control Practices in Islamic Non-Profit Organisations in Malaysia

“…Normally, funds via cash collection are being done by the specific activities or programs with specific purposes. The staff in-charge for receiving process from the Account Department will identify and record any incoming sadaqah funds…" From this, it is shown that at least there were two different persons responsible in the collecting charity fund process, as suggested by Bowrin (2004). However, this two different persons' practice still did not separate the task for collecting process.…”

“…and records need to get permission from the Finance Department to access them, as suggested by previous studies (Bowrin 2004;NCSS of Singapore 2009;Spillan & Ziemnowicz 2011;Sulaiman et al 2008). This practice is especially based on the following conversation with a respondent from CLBG B:…”

“…For documentation and record materials, all three CLBGs had proper documentation and record practices such as receipts, procurement forms, quotations, invoices and other written evidences prepared and filed in proper sequences as suggested by previous studies (Bowrin 2004;NCSS of Singapore 2009;Shaibu 2013;Sulaiman et al 2008).…”

“…For the distributing funds process, all these CLBGs can be said to comply with the segregation of duties element as the one who requests and manages the distribution process are different persons, as suggested by (Amudo & Inanga 2009;Bowrin 2004;NCSS of Singapore 2009;Shaibu 2013;Sulaiman et al 2008). In CLBG A, for example, the BOD is the one who approves the distribution process while a financial staff under the Service Division is assigned to manage the approved distribution process based on the following conversation:…”

“…This physical control tool is necessary especially when it involves cash donations received from the public (Bowrin 2004;Fonfeder et al 2003;NCSS of Singapore 2009;Spillan & Ziemnowicz 2011;Sulaiman et al 2008). Currently, both CLBG B and CLBG C have one safety box for each while CLBG A has three safety boxes.…”