THE EVALUATION OF INTERNAL CONTROL ON CASH MANAGEMENT IN NONPROFIT ORGANIZATION (A CASE STUDY IN RSUD TARAKAN)

Abstract

Internal control is an important element for organizations either nonprofit or for profit. Even though profit is not the main purpose for nonprofit organization, an adequate internal control has to be implemented to maintain their existence. RSUD Tarakan Jakarta is categorized as nonprofit hospital or Badan Layanan UmumDaerah (BLUD) belongs to Government of DKI Jakarta. Although this hospital is categorized as nonprofit, it still needs to maintain the sustainability of operational. The writer has intention to research further about the Internal control on cash management in RSUD Tarakan. It is caused by its status as nonprofit hospital which overrides the profit from patient, but it has to get the source in giving health services to public. Thus, the current asset especially cash has to be protected and managed appropriately to avoid the bad possibilities. The writer realize that a sufficient internal on cash management is very important for this hospital. This research was conducted using qualitative descriptive method with verification approach. The techniques used to perform this research are the data collection, observation, and interview. The data obtained were analyzed by describing the implementation of internal control on cash management in RSUD Tarakan. Moreover, the result shows the strengths and weaknesses of internal control implementation in RSUD Tarakan. There are several things need to be improved, especially for the segregation of duties. This hospital still needs to improve or maintain the internal control system on cash mamagement for each aspects such as segregation of duties, authorization of transaction, documentation, physical control, and records.