Management Control System in Asnaf Entrepreneurship Development Program by Lembaga Zakat Selangor

Abstract

Lembaga Zakat Selangor (LZS) has been corporatized and governed as a corporate entity. For good corporate governance, LZS implements a management control system (MCS) in one of its zakat distribution program known as Asnaf Entrepreneurship Development Program (AEDP). The objective of study is to explain the elements/dimensions of MCS in AEDP by referring to Levers of Control (LOC) as a framework. The LOC with four control mechanisms namely belief, boundary, interactive and diagnostic is commonly known, preferable and applied framework for MCS research and adopted by many worldwide corporations. A total of eight interviews were carried out; three with LZS officers and five with zakat beneficiaries. Data were audio recorded, transcribed verbatim and analysed in qualitative approach. It was found that the controls available in LZS can be matched against four control mechanisms in LOC. Despite that all the four control mechanisms are placed in MCS, they have yet to be documented in LZS Standard Operating Procedure (SOP). Formal documentation may impetus confidence amongst zakat payers and Muslims as a whole that the funds are efficiently managed and properly governed for the best interest of beneficiaries apart from being source of references to other zakat institutions.

Examining new measure of asnaf muslimpreneur success model: a Maqasid perspective

“…Needless to say, zakat is a tax that distributes wealth from the wealthy to the poor, and qualified muzakki are eligible to share their riches with the poor and needy. One of the creative approaches presented today (Mohamed et al , 2018) is through an asnaf development programme, in which people may work freely to generate halal earnings at their leisure, with zakat organisations contributing the money. According to Mansor et al (2019), when Muslim taxpayers in Malaysia meet hawl and nisab , they have two obligations: income taxes and zakat contributions.…”

“…Besides, both attitude and enthusiasm are also instrumental to shape success. Unlike Yaakub and Muhd Adnan (2018), Mohamed et al (2018) investigated a management control system, including four control mechanisms, belief, boundary, interactive and diagnostic, as part of a Lembaga Zakat Selangor entrepreneurial development programme (LZS). The findings showed that adequate controls are required to guarantee that zakat funds are handled and administered efficiently in the best interests of zakat recipients.…”

A Review of the Literature on Zakah Between 2003 and 2019

“…Meanwhile topics about management was researched by Mustarin, 2017;Triyani, 2017;Sari, 2017;Zabir, 2017;Sarasi, 2018;Susilowati and Setyorini, 2018;Dahlan, 2018;Astuti and Zulkifli, 2018;Wardani, 2018;Muammar et al, 2018;Subhan, 2018;Amalia, 2018;Khairina, 2019;Abdullah, 2010;Fadila et al, 2016;Hasanah, 2014;Hudayati and Achmad, 2010;Mediawati, 2016;Nurhidayatie et al, 2014;Rahman et al, 2015;Shobirin, 2015;Supranoto et al, 2016;Uzaifah, 2016;Yaacob et al, 2013;Othman and Fisol, 2017;Basir et al, 2017;Farouk et al, 2017;Mohamed et al, 2018;Adachi, 2018;Hassama et al, 2019.…”

Zakat Funds for Health and Medical Sector: Role and Strategy of Majlis Agama Islam Dan Adat Melayu Perak (MAIPk)

“…Zakat can be implemented as a tool to overcome poverty in the form of income distribution from Muzakki to Mustahiq (Sastraningsih et al, 2020). In Malaysia, the government has implemented various programs in order to alleviate poverty (Mohamed et al, 2018). In addition to small-scale entrepreneurship programs set up by the government for the poor, zakat institutions also play their role in helping the poor by introducing entrepreneurship programs as an alternative to reducing poverty (Mohamed et al, 2018).…”