The Strengthening of Internal Control System as an Effort to Maximize the Functions of the Supervisory Agency

Abstract

—This study aims to determine the application of internal control to the management of funds at the Paramitra Foundation, Indonesia. The research method used is a qualitative descriptive method that uses a case study approach. Data collection is done through interviews and documentation which is then analyzed based on the components of internal control according to COSO. Every institutional management will always be associated with the competence of the manager. One of these competencies is the ability to carry out internal control functions to improve, directing, controlling, and supervising various activities so that the foundation's goals are achieved. The results of the study indicate that the internal control implemented by the Paramitra Foundation has several weaknesses, but overall the control has been running effectively. Documents in the form of financial records are sufficient even though they are still manual based systems. This is evidenced by the findings of financial record documents that can be used as a basis for information sources that can be used to monitor the foundation's operational activities. In addition, each employee has a task assigned according to the responsibilities of each party concerned.