Performance Reporting Practice of Malaysian State Islamic Religious Councils towards Enhancing Accountability

Rosnia Masruki, Khaled Hussainey and Doaa Aly

This study investigates in-depth the performance reporting practices in Malaysian State Islamic Religious Councils (SIRC).Semi-structured interviews are conducted with accountants of SIRC and contributors, representing the public. Such interviews are carried out to discuss the current reporting practices. This study addresses the current performance reporting practices of State Islamic Religious Councils in Malaysia. It begins with the definition of performance reporting in the context of SIRC, it’s relevance, current practices and also recommendations for a more comprehensive performance reporting. The performance reporting essentially, is as part of an annual report, which expected by a wide range of stakeholders. Indeed, this study views that public accountability is pertinent, which appreciates the public’s right to get information about SIRC’s performance. A comprehensive corporate annual report should include performance reporting, indicating the importance of performance report not just financial performance but also non-financial performance. Particularly, for those organisations with not for profit oriented organisations like faith-based organisations, SIRC, zakat institutions, NGOs and even government agencies. Performance reporting studies in the context of not-for-profit organisations are at the infancy level. Despite the relevance of such report, similar non-profit organisations also could benefit from this study. Having a best reporting practice, non-financial performance aspects cannot be neglected so as to be seen being accountable to various stakeholders.