Performance Measurement System in the Governance of Waqf Institution: A Concept Note

Aliza Ramli*, Fadzlina Fahmi, Faizah Darus and Zarinah Abdul Rasit
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Aliza Ramli*: Faculty of Accountancy, Universiti Teknologi MARA, Puncak Alam, Malaysia
Fadzlina Fahmi: Faculty of Accountancy, Universiti Teknologi MARA, Puncak Alam, Malaysia
Faizah Darus: Faculty of Accountancy, Puncak Alam & Accounting Research Institute Universiti Teknologi MARA, Shah Alam, Malaysia
Zarinah Abdul Rasit: Faculty of Accountancy, Universiti Teknologi MARA, Puncak Alam, Malaysia

The Journal of Social Sciences Research, 2018, 1026-1034 Special Issue: 5

Abstract: Although reports revealed substantial improvements have been reported in the accounting and reporting of waqf properties, the lack of a sound internal control mechanism is of concern. The existing practice of performance measurement among waqf institutions is less standardised and did not consider their overall performance as a religious and voluntary institution. Organisations engagement in waqf affairs has also caused various issues relating to the ineffectiveness of management and administration of waqf assets. Thus, a systematic and comprehensive performance measurement system is required to adequately assess the performance and ensure proper governance of waqf institutions. Drawing from the Balance Scorecard (BSC) framework and Islamic concept, the paper aims to study and analyse relevant literature on the performance measurements for waqf institution and to develop a holistic performance measurement model suitable to assess the performance of waqf institutions. In this concept paper, the inductive and deductive methods besides analysis of relevant literature were utilised to arrive at the findings. A fifth perspective has been added to the traditional BSC framework. The fifth dimension focuses on the assessment of all activities of waqf institutions in accordance with the Shariah principles. The paper concludes that the governance of waqf entity can be achieved through a sound internal control system, which suggests the implementation of a shariah-based performance measurement system that incorporates both qualitative and quantitative dimensions to examine its current stance better. This type of performance measurement system can also ensure accountability and transparency of waqf institutions, as well as for them to strategize their initiatives better to contribute to long-term wealth creation of the society. The framework developed in this study can be utilised to provide one possible way for management of waqf institutions to address the issues arise from the inefficiency in managing waqf resources.

Keywords: Waqf; BSC, Performance measurement system, Shariah; Governance. (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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