Optimizing Financial Transparency and Accountability in Mosques: A Case Study Approach in Enhancing Reporting Practices

Financial reporting is essential for maintaining accountability and openness in non-profit organizations, including mosques. Notwithstanding the existence of worldwide financial reporting standards, mosques frequently have difficulties in conforming to standard practices owing to insufficient competence and the absence of established financial management frameworks. This case study analyses the financial reporting practices of a mosque in Malaysia, emphasizing critical issues such as the absence of standardized financial recording systems, procrastinated transaction paperwork, and restricted public financial disclosures. The study highlights the necessity for explicit financial separation between waqf and khairat monies, as each serves a unique function. It underscores the significance of streamlined financial recording methods to enhance openness, accountability, and community confidence. This research identifies essential areas for enhancement by comparing current behaviors with instructions provided by Malaysian religious authorities. Recommendations encompass the establishment of fundamental financial recording systems, the utilization of technology for real-time reporting, and enhanced adherence to financial regulations. The study adds to the expanding literature on financial accountability within religious non-profits and provides pragmatic suggestions for improving financial management in mosques. By using these methods, mosques can cultivate enhanced confidence between congregants and regulatory authorities, while assuring the appropriate management of donations and resources.