ACCOUNTING PROCEDURE AND MANAGEMENT CASH WAQF IN INDONESIAN WAQF INSTITUTIONS

This paper aims to explore the management and reporting of cash waqf in Indonesia Waqf Institutions. The methodology used in this study is qualitative descriptive research with case study approach to explain specifically about the management and reporting of cash Waqf. The results of this study indicate that the management of cash waqf in Dompet Dhuafa has fulfilled the waqf principle that adopted from the principle of BCPs corresponds to laws and regulations. On the contrary, at the Representative of Indonesian Waqf Board (BWI) in Banyumas Regency as the representative of waqf regulator, its management of waqf is not yet optimal. Dompet Dhuafa reports their waqf management in financial statement, while at Representative of Indonesian Waqf Board in Banyumas Regency did not report management of cash waqf.


INTRODUCTION
The society's economic problems and demands of economic prosperity in the twenty one century, waqf and its utilization have great potential in developing sharia economy and finance in Indonesia. In addition to waqf is one aspect of the spiritual teachings of Islam, waqf is also a teaching that emphasizes the importance of economic prosperity (Sambas, 2014). Generally, in Indonesia, Lack of society understanding about productive waqf makes waqf objects are not growing and less supported. Society recognize productive waqf as a giving in fixed assets, such as land, mosques, schools, orphanages, and graves. It has become one of caused productivity inhibiting waqf and unpopular (Mu'alim & Abdurrahman, 2014). Thereby, the society takes consider twice to do waqf because according to them, waqf require high funds compared to zakah, infaq, and sadaqah. Whereas at this time, Nazhir has been developed another type of waqf asset, called cash waqf (money). MUI (2002) stated that cash waqf defined as waqf by a person, group and institutions or legal entities in the form of money (cash).
Understanding money (cash) can be securities, such as stocks, checks and others.
Potential of Cash Waqf in Indonesia is quite large as a country with largest population of Muslims in the world, so the effort to raise funds productive Cash Waqf is expected to run well. In addition, diversity of management of productive Cash Waqf can provide a wide field of jobs for the society, because it would require Nazhir who have professional skills related to the Waqf programs (DEKS Bank Indonesia -DES-FEB UNAIR, 2016). Other than that, Waqf Assets can be managed and developed so the benefits of waqf can increase and maintenance cost of Waqf Asset is not become society responsibility. Later on Mauquf Alaih is not only fakir, poor, unemployed, places of worship, social facilities, but also can be used for human resources development such as giving scholarships (Forum Ekonomi Islam Unsoed, 2017). Benefits option of productive Cash Waqf is quite diverse. Among them are Waqf of food, educational of Waqf, Waqf of health and economical of Waqf those can be utilized through the productive Cash Waqf (Global Wakaf, 2017).
In Waqf of food, there are other kinds of benefits such as water Waqf, Waqf arranges in provision of wells and their supporting equipment to distribute appropriate water for consumption and used to community life.
Obstacles of productivity Cash Waqf is due to the decrease of public trust to the Official Waqf Institution (Republika, 2016). It is related to Waqf in Indonesia which is facing important problems, especially on its management and reporting. In fact, Waqf Institutions in Indonesia have not been managed with a professional framework, so they could not respond the needs of society (Republika, 2017). It is characterized by the lack of professionalism of Nazhir, so Waqf is not well managed and cannot provide welfare solutions. As one of strategies and role of the Government of on Waqf which is expected to be guidelines for Waqf Institutions in management and optimization of Waqf activities as religious institutions that have potential and economic benefits. Unfortunately this regulation still cannot respond the needs of the society because the Act does not regulate the calculation and accounting of Waqf. Nevertheless, Bank Indonesia (BI) and Otoritas Jasa Keuangan (OJK) as the supervisor, Ikatan Akuntan Indonesia (IAI) as the accounting profession, and Majelis Ulama Indonesia (MUI) are in process of arranging the appropriate accounting standards for Waqf (DEKS Bank Indonesia -DES-FEB UNAIR, 2016). Based on the facts of phenomena that have been described, researcher is interested to explore more deeply about Waqf management, especially Cash Waqf in Waqf Institutions. In addition to researcher also want to explore more deeply about the accounting, recording, and financial systems are used by Waqf Institution.

LITERATURE REVIEW
Waqf is derived from Arabic "Waqafa" (plural: awqāf) which means "to withhold" or "stop" or "keep quiet" or "stand still". In most cases, Waqf is defined as assets given by Wakif to Nazhir and then his assets is used its benefits for commonweal. Cash waqf is part of productive waqf which have differences with zakah, infaq and sadaqah, those are the existence of time constrains, the limit of the amount of fund paid, and the last is the current reward that God give to the contributors. On zakah, there is a provision regarding the due date of payment, to do Cash Waqf, Infaq, Sadaqa, there are no time limit, contributors can do anytime. The limit of the amount of fun paid on Zakah, for example, for Zakah income, the Zakah payer will pay it, if it has exceeded the equivalent of eighty grams of goods a year, but to do Cash Waqf, Infaq and Saqadah, do not have to wait until contibutors are rich, because the property is distributed through the provision of funds some people or parties. Then, the difereences between Cash Waqf, Infaq and Sadaqaf are in the benefits that receive by the receiver. For Cash Waqf, it has long term benefit, but for Infaq and Sadaqah only for that time to fulfill the receiver needs, for example give money to buy food for hunger one (DEKS Bank Indonesia -DES-FEB UNAIR, 2016

The Power of Law on Authority
This principle emphasizes the regulatory system, effective and comprehensive management as stipulated in the Regulation of Waqf. These regulation of waqf into a solid legal basis which includes the existence of an independent authority. Authority has the authority to manage waqf. The authority is: Giving permission for the establishment of Nazhir, continuous monitoring of Nazhir, ensure that the implementation of Nazhir is in accordance with the law, and make corrections to Nazhir for better.

Waqf Assets Classification and Nazhir License
The second principle regulate about assets of Waqf classification dan Nazhir license.
Authorities must have asset mapping system arrangement for many different assets and each asset has a different economic impact. The clasification of Waqf assets can be divided by asset size, asset development potential, asset management, investment, profit sharing of Waqf project by using that asset. Criteria for making the asset classification should be considered.

Permitted Activities
The third principle regulate the allowed activities in the management of Waqfs. Allowed activities must have followed the sharia and legal laws of the country. Waqfs activities include collection, utilization, waqf assets and distribution of Waqf benefits. For example, Waqf stock, then there must be an investment rule that has a small risk, but still bring profit and follow the sharia rules. Collection of Waqfs should get approval about its sophistication. In the third principle is also regulated how the allocation of funds used Cash Waqf collected. The rules of Waqf priority should be clear so that the use of money is efficient and provides great benefits to Mauquf Alaih

Waqf Assets Management
The next principle of Waqf regulate is about the Waqf assets management. Wakif give assets to Nazhir accompanied designation. For example, Wakif wanted to the land Waqf to build school. Thus, Nazhir attempted to fulfill Wakif's request. Waqf asset management arrangement are categorized into six parts, namely: Collection, Utilization, Benefits Distribution of Waqf assets, Transfer, Transactions with Related Parties, and Risk Management. Waqf asset management and its relation to risk can be illustrated in the scheme contained in Figure 1. Waqf Asset Management Scheme.

Internal and External Control
This regulate is an approach taken by the Waqf authority associated with the control scheme carried out by the authorities to Nazhir. Authority control scheme must be integrated which includes the collection, utilization, managerial and distribution of Waqf asset benefits.
Integration also includes the methodologies used by the authorities to assess and determine the risk of sharia aspects, management, in optimizing Waqf assets. This principle governs the technicalities and instruments used by the authorities to exercise control over the Nazhir. The Authority also evaluates the performance of the internal auditor, in so doing the authority is also entitled to use the external auditor as a third party to maintain objectivity. In addition, authorities are also entitled to require Nazhir report performance results to the authorities with timely and accurate, especially in the financial statements

Nazhir Governance
On this principle, the authorities have full authority to make policies regarding the Nazhir criteria to ensure the optimization of wakaf assets. The fact that Waqf assets vary, from unproductive Waqf to productive Waqf. Both types of Waqf require different Nazhir, then the criteria are needed. Nazhir which has been authorized by the authority must carry out its duties well. Therefore, the authorities should create guidelines, whether specific or general about governance by Nazhir.

Financial Reports and Reporting Standard
This principle focuses on financial reporting and the importance of external financial auditors to control Nazhir, especially in reporting standards. This regulate requires the presence of an external auditor to audit the financial statements and ascertain the financial statements are in conformity with world-recognized accounting practices. This rule would make it easier for Nazhir to cooperate with foreign and local Nazhir. Nazhir in choosing an external auditor should consider the auditor's competence on his understanding of Waqf. The arrangement also focuses on the transparency, disclosure, and publication of reports covering all activities undertaken by Nazhir. Then, in order to improve the quality of financial statements, the authorities and institutions shall conduct a rigorous review of the reporting standards issued by Nazhir.

Abuse of Waqf Assets and Financial Service.
This principle regulates Waqf abuse problems. The authorities must ensure that Nazhir does not commit disgraceful activities. For example, Nazhir conducted operations by bringing in funds from abroad, but after funds reached Indonesia, Nazhir abused the funds.
The accounting system is the organizational forms, records, and reports are coordinated in such a way as to provide the financial information needed by management in order to facilitate the management of the company (DEKS Bank Indonesia -DES-FEB UNAIR, 2016). From the definition can be said that the accounting system is a recording system that produces financial report. The information presented in the financial statements of Waqf Institutions is general, in the book which tittle Wakaf: Pengaturan Tata Kelola yang Efektif (2016)  The Nazhir method to obtaining and spending cash and other factors affecting liquidity; Nazhir Compliance to the provisions of sharia and information of acceptance that is not in accordance with the provisions of sharia when it exists and how such revenue is obtained and disbursement; The Foundation has also been listed as the Nazhir cash waqf Nazhir on Indonesian Waqf Board on February 10, 2015 with registration number 3.3.00100.

An Overview of Indonesian Waqf Board
Indonesian Waqf Board is an independent state institution to develop waqf in Indonesia which in the execution of its tasks are free from the influence of power and is responsible to the community. The establishment of Indonesian waqf Institution itself is a form of the realization of 5. Dismissals and replacing Nazhir when the wide of waqf land is less than 1000m 2 (thousand square meters) 6. Publishing Receipts of Nazhir Registration of the waqf land area is less than 1000m 2 (thousand square meters) 7. Surveying and reporting on the proposed changes of waqf asset allotment in the form of land of less than 1000m 2 (one thousand meters per square).

Surveying and reporting on the proposed exchange /change of waqf asset status (ruislagh)
in the form of land of an area less than 1000m 2 (one thousand meters per square) 9. Carry out other tasks provided by the Provincial BWI Representative.

Data Analysis
The results of this study indicate that the management of cash waqf in Dompet Dhuafa has fulfilled the waqf principle that adopted from the principle of BCPs: 1) The Power of Law on Authority 2) Waqf Assets Classification and Nazhir License 3) Permitted Activities 4) Waqf Assets

Vehicle
Classification of cash waqf assets management later on distributed its management benefits into 2 (two) categories, those are 1) Economic welfare such as agriculture, farm, and stock, 2) Social welfare such as education, health, and mosque.
In the Permitted Activities Principle, Tabung Wakaf Indonesia has 2 (two) division, they are fundraising divison and assets management division. Fundraising division in raising funds do offers to community through the corporation, community, social network, open booth, one by one by offers waqf programs to prospective Wakif and also launch movement such as Gerakan Satu Juta Wakif. After funds collected and transfered to fundraising division's account will also transfered to account of shelter managed by dinance division. Funds are submitted to assets management division to be managed its business development in accordance to its allocation.
Those activities should be approved by Sharia Board of Dompet Dhuafa in order its implementation is in accordance with Islamic ethics and still bring profit in the sharia corridor.
In the other hand, the Chairman of Representative of Indonesian Waqf Board said that Indonesian   In the Internal and External Control Principle, internal control in the Tabung Wakaf Indonesia (TWI) in the form of human resource control and asset control which is supervised directly by the Director of TWI. Human resource control is conducted on the fundraising and asset management divisions, whether the task has been carried out in accordance with the provisions of TWI. Asset control is performed considering the number of waqf assets managed by TWI. It is said that as Nazhir, TWI must be trustworthy and transparent to the community. In addition to internal controls, Nazhir also gets external control by public accountants. Waqf assets managed, then recorded and reported in the form of financial statements and external control by a designated public accountant. This is performed to assess the accountability of Dompet Dhuafa in managing the waqf assets mandated. In Dompet Dhuafa financial statements, waqf is presented in one account, there is no separation between waqf in other form and cash waqf (money), so the numbers cannot be known for sure. The acceptance of the cash waqf is acknowledged when it is received by Nazhir (received from Wakif by Nazhir and published certificate of cash waqf), the calculation uses the rupiah value, the recognition of the cash waqf is recorded in the statement of financial position as the balance of funds (permanently restricted support waqf, restricted support waqf). Permanentky restricted support waqf is fund that can only be used for things related to waqf, while restricted support waqf is fund that can be used for things determined before. Then when cash waqf is invested, cash waqf is recognized when profit sharing is given, the measurement uses the rupiah value, the recognition is recorded in the statement of financial position as revenue profit sharing. The distribution of cash waqf is recognized when the cash waqf is distributed, the measurement using rupiah value and its disclosure are disclosed in the statement of Notes to Financial Statement is a various notes that present financial statements to provide more detailed information about Nazhir, Nazhir's accounting policies, explanation of key posts and human resource development efforts.

CONCLUSION
From the discussion in the previous chapter we can take some conclusion that Cash waqf management in Dompet Dhuafa corresponds to Government regulation based on BCPs principle, they are 1) The Power of Law on Authority 2) Waqf Assets Classification and Nazhir License 3) Permitted Activities 4) Waqf Assets Management 5) Internal and External Control 6) Nazhir Governance 7) Financial Reports