Accounting Information System Framework for NPO (A Case Study on Children Development Centers Salatiga Cluster)

Abstract

Both commercial organization and non-profit organization produce financial reports which are the form of their responsibility to the stakeholders. However, the financial reports are different since there are differences in business process and stakeholders’ interest. These have driven the difference of their accounting information system. This study will give a contribution to the accounting information system of non-profit organization literatures. The research and development approach has been applied to this study. CDCs Salatiga cluster which has 15 centers are the chosen research object. The accounting information system framework is adopted from ‘Give and Take’ exchanges of Dunn and McCarthy (2009) and five major transaction cycles of David (2009). The results are examined into three elements which are the business process, the involved entities, and the accounting information system framework. Three main activities in CDC’s business process are (1) The preparation of the program/budget master and program proposal, (2) The activity execution in accordance to the program/budget master, and (3) Financial and operational reporting. Then, there are nine involved entities which are CIF, partner church, local donors, third parties, bank, children, operational and administration staff, management, and committee. The last element is accounting information system framework which consists of five accounting cycles including operational cycle as its business process. The study is a basic discussion to the further research about accounting information system of other NPO. Also, accounting information system instruments of each cycle should be developed.

Keywords: Accounting Information System, Non-profit Organization, Children Development Center