Waqf Accounting and The Construction of Accountability – Hidayatul Ihsan & Muhd Akhyar Adnan
Waqf Accounting and The Construction of Accountability – Hidayatul Ihsan & Muhd Akhyar Adnan
Abstract
Along with the revival of awqaf institutions, the attention to the call for waqf accounting has been emerging. The new and modern waqf management has put greater emphasize on the principles of accountability and transparency. As part of good governance and best practices of awqaf institutions, accounting is believed to be able to improve the accountability and transparency of the mutawalli. Besides, accounting is a tool for mutawalli to discharge his accountability to many parties such as wāqif, waqf board, government and community in large.
Studies on accounting practices in waqf institutions indicate there is diversity with regard to accounting and reporting of waqf. The phenomenon of dissimilarity of accounting practices among awqaf institutions could be due to the absence of accounting standards for waqf. Cordery and Morley (2005) assert that the uncertainty over accounting practices in charitable sectors and other not-for profit organizations is not only due to the absence of accounting standards but also because the failure to establish a generally accepted definition of accountability for that sector.
This paper aims at exploring the major themes that constitute the basis of the discussion on accountability in awqaf institutions. In doing this, the theoretical underpinnings and the existing empirical investigations relating to waqf accounting and accountability are examined. Although Hisham (2006) and Ihsan (2007) agree that Shahul’s proposal of dual accountability is more appropriate for waqf, it requires further explanation as to whether it can be implemented and measured. Due to previous waqf studies did not capture the dynamic aspect of stakeholders, this study suggest Mitchell, Agle and Wood (MAW) model to explain the nature of waqf stakeholders. By combining MAW model with Hayes accountability, this paper comes up with the proposal regarding what kind information should be provided by mutawalli to various waqf stakeholders.
Keywords: waqf accounting, accountability, MAW model, Hayes accountability