The increasingly fierce business competition requires companies to manage their companies properly to achieve predetermined goals. In company management, an internal control system is vital. One of the most current assets that are often used for company operations is Cash. Cash is a means of exchange in the form of money or equivalent to Cash, both in the company and in the Bank, which can be withdrawn at any time without reducing its nominal value. Cash is very easily transferable and ownership cannot be proven, so Cash is straightforward to manipulate, so internal control is needed on cash receipts and payments to overcome cash deviations. With internal control over cash receipts and disbursements, a company can protect its assets and minimize the use of corporate acquisitions from fraud.

Based on the internal control system, the system for receiving Cash from receivables must guarantee Cash's receipt from the company's debtor, not by employees who are not entitled to receive it. To ensure Cash's receipt, the system for receiving Cash from receivables requires the debtor to make payments by check or by transfer through a bank account (giro). Suppose the company only accepts Cash in the form of statements from debtors, whose assessments are on behalf of the company (not on show). In that case, it will guarantee that the Cash received by the company goes to the company's Bank checking account. The transfer will also ensure the receipt of Cash into the company's current account. In the cash disbursement accounting system, checks in the name will be accepted by the party whose name is written on the check form. Thus, spending by check guarantees the check's receipt by the party referred to by the payer.

But at PT. XYZ is a manufacturing company with plastic packaging products in Jakarta; which this company conducts a lot of cash receipts and disbursements transactions, cash receipts at PT. XYZ from debtors is made through direct billing by collectors whose receipts are through bank transfers, checks and still receiving cash payments. Receipt of payments by collectors in the form of Cash is feared that lapping may occur or company money for personal  purposes,  plus  receipt  through  Cash there are no documents/receipts submitted to PT. XYZ as proof of repayment. Also, there is another weakness, namely the use of cash-in and cash-out proof documents that are not serial numbers printed, leading to the possibility of fraud.

As a company develops, the probability of deviation in the accounting system for cash receipts and payments is also quite large. Therefore, PT. XYZ must implement an internal control system for cash receipts and disbursements. In the cash disbursement accounting system, checks in the name will be accepted by the party whose name is written on the check form. Thus, spending by check guarantees the check's receipt by the party referred to by the payer.

But at PT. XYZ is a manufacturing company with plastic packaging products in Jakarta; which this company conducts a lot of cash receipts and disbursements cash receipts at PT. XYZ from debtors is made through direct billing by collectors whose receipts are through bank transfers, checks and still receiving cash payments. Receipt of payments by collectors in the form of Cash is feared that lapping may occur or company money for personal purposes, plus receipts via Cash. There are no documents/receipts submitted to PT. XYZ as proof of repayment. Also, there is another weakness, namely the use of cash-in and cash-out proof documents that are not serial numbers printed, leading to the possibility of fraud. As a company develops, the probability of deviation in the accounting system for cash receipts and payments is also quite large. Therefore, PT. XYZ must implement an internal control system for cash receipts and disbursements.

Definition of System

The definition of a system, according to Mulyadi [1], is "A system is a group of elements that are closely related to one another, which function together to achieve certain goals. Every system is built to handle something that is repeated or that happens regularly." Meanwhile, according to Ardiyos [2], states that "The system is a set of components or elements that are woven together to obtain or achieve something or various goals." Based on the definition above, it can be concluded that the system is a collection of parts that work together to achieve a specific goal.

Definition of Cash

Almost all company transactions are cash-related. Cash purchases of goods will result in cash disbursements, while cash sales will result in cash receipts. Therefore it is not wrong to say Cash is an important asset. Reasonable internal control over Cash is necessary to avoid possible misuse and diversion. According to Rudianto [3], the definition of Cash is "Cash is a means of payment that is owned by the company and is ready to be used in transactions any time desired."

The Statement of Financial Accounting Standards No. 2  of  2015  states  that  "Cash  consists  of  cash balances (Cash on hand) and current accounts. Cash equivalents are highly liquid, short-term investments that can quickly be converted into Cash in a determinable amount and carry the risk of insignificant changes   in   value."   Meanwhile,   according   to Soemarso [4], states that "Cash is everything (whether in the form of money or not) that can be readily available and accepted as a means of paying off obligations at its nominal value."

So from some of the above meanings, it can be concluded that Cash is the most current asset item in the balance sheet, meaning that it can be easily used as a means of exchange and shows general purchasing power, either in the form of money or not which is ready to be used any time desired.

Basic Concepts of Internal Control Systems

According to Tuanakotta [5], internal control is "A system designed, implemented and maintained by company owners, management and employees to handle business risks and fraud risks that are known to threaten the achievement of entity goals, such as reliable financial reporting. Therefore, the internal control structure's reliability is one of the determining factors for the reliability of financial statements." According to Hery [6] the definition of internal control is "Internal control is a set of policies and procedures to protect company assets or assets from all forms of misuse, ensure the availability of accurate corporate accounting information and ensure that all legal/legal provisions (regulations). the law and management policies have been followed or appropriately implemented by all company employees. " Thus, the researcher concludes that the internal control system is a process required by all activities in an organization. Control is an activity to compare performance in an organization with what it should be planned.

Internal Controls for Cash Receipts and Disbursements

The definition of a cash receipt accounting system according to research is "The cash receipt accounting system includes a series of both manual and computerized processes, starting from recording, classifying, summarizing financial transactions and events to financial reporting in the context of accountability for the implementation of transactions related to revenue cash. 'Corporate cash receipts come from two primary sources of the company, namely: Cash receipts from cash sales and cash receipts from receivables [1].

Internal Control for Cash Disbursements

The definition of a cash disbursement accounting system according to Steinbart and Romney [7] is "The cash disbursement accounting system has a central accounting system that can be used in the cash disbursement accounting system, namely the cash disbursement accounting system by check and the cash disbursement accounting system with Cash through petty cash funds." The cash disbursement procedure needs to be designed in such a way that only those expenditures that have been approved and are confirmed for the company's activities are recorded in the company's books.

Effectiveness of Internal Cash Control

Sedarmayanti [9], in his book entitled Human Resources and Work Productivity regarding the notion of effectiveness, namely "Effectiveness is a measure that provides an overview of how far the target can be achieved." Internal cash controls' effectiveness can be assessed if every person in the company fully implements the standards and policies that have been set. Cash internal control can be said to be effective if the objectives of internal control can be achieved. Thus, the company's better internal cash control and the more compliance it is with all company personnel, the more effective internal cash control in the company.

Research Methods

Research Objects and Locations: The object of this research is PT. XYZ. The location in the study is located at Jl. Rawa Gatel Blok S Pulogadung Industrial Area, Jatinegara, Cakung, East Jakarta.

Population and Sample

In the implementation of this research, the subject of research is PT. XYZ and the population are financial employees at PT. XYZ. In this study, researchers took a sample of 4 employees directly involved in the systems and procedures for managing cash receipts and cash disbursements, including the Financial Coordinator, Accounts Receivable, Cashier and Accounting.

Comparison of SOPs of PT. XYZ With Theory

To support the research, analysis tools refer to the standard application of a sound internal control system based on the accounting system theory according to Mulyadi and compare it with the internal control system implemented by PT. XYZ, namely as follows in Table 1-2.

In obtaining information related to the internal control system's assessment for cash receipts and disbursements at PT. XYZ, not only obtained from interviews and direct observation of the process but also through questionnaires. This questionnaire's giving is addressed to related parties, which contains a list of questions regarding the internal control system for cash receipts and disbursements to determine the effectiveness of the system that is already running within the company.

The results of the answers to the questionnaire on the effectiveness of internal cash control consisting of 57 questions and 165 "YES" answers were obtained, the frequency of responses to the questionnaire was 228. Using the Champion formula, the percentage can be calculated as follows:

The percentage of the effectiveness of internal control   for   cash   receipts   and   cash   disbursements was 72.37% for effectiveness of internal controls for cash   receipts   and   cash   disbursements,   indicating that cash control implemented by PT. XYZ is quite effective.

After doing the research, the researcher argues that the internal control of Cash at PT. XYZ is quite effective, although several internal controls are implemented by PT. XYZ still does not comply with the elements of internal control. The following is an explanation of the internal management of PT. XYZ:

• Control Environment: PT. XYZ already has a job desc organizational structure according to the company's needs and a clear line of command but there is no assessment and compensation for employee performance

• Estimated Risks: The risks that may arise have been identified, analyzed and managed properly by PT. XYZ, so that it can simplify the implementation of internal control and reduce irregularities in PT. XYZ. This is reflected in the selection of employees according to needs, a 3-month training period for new employees to be evaluated so that they can be placed according to the employee's expertise and company needs and the use of a safe with certain codes and keys known only to the cashier. However, the safe is still placed in the same room with other employees, so there is a concern that cash theft will occur

• Control Activities: Control activities at PT. XYZ is reflected in the implementation of control activity elements properly by the division at PT. XYZ, such as the separation between the authorization function, the monitoring function, the recording function and the storage function

• Information: Information on PT. XYZ has been running  well,  this  can  be  seen  from  the preparation and delivery of information and communication between related divisions in PT. XYZ, thus helping management in implementing internal control

• Monitoring: Monitoring at PT. XYZ has been running quite well, this can be seen from the existence of evaluation and corrective actions if there are weaknesses but there is no Internal Audit section at PT. XYZ

In addition, to prove that the internal control activities  of  cash  receipts  and  cash   disbursements have been carried out quite effectively, this research also examines documents related to internal cash control at PT. XYZ follows the explanation: the researcher checks the documents in the form of proof of bank receipts and evidence of bank disbursements to see     that     the     Director    and    Financial   Coordinator examined   the   evidence   with   their   attachments  and authorizes the transaction. As well as checking documents in the form of pay checks to see which checks are used using serial numbers and the cashier must be accountable for the check serial number to avoid improper use of checks.

Table 1:   Comparison of the Elements of Internal Control for Cash Disbursements by Theory with the Elements of Internal Control for Cash Disbursements at PT. XYZ

Besides, the researchers also found several things that could be weak points that deserve special attention from the company. The weaknesses referred to by the researcher are as follows:

• Proof of cash disbursements or proof of bank disbursements, checks, cash bills, purchase orders of goods and supporting documents are not stamped "FULLY" after the cashier makes cash disbursements

•  

There are several documents used that do not include the authorizer's full name and position, as in the example image below, the Purchase Order (PO) does not include the full name and position of the authorizer, namely the Finance Coordinator and Director

Table 2:`Comparison of the Elements of Internal Control Cash Receipts According to Theory with the Elements of Internal Control Cash Receipts at PT. XYZ

Conclusion

After conducting the discussion above, the compilers can conclude that the internal control system for cash receipts and disbursements at PT. XYZ is quite effective but there are still some weaknesses that must be fixed, these weaknesses include:

• Cash in hand at PT. XYZ is stored in a safe, which is in the same room as other employees

• Proof of Cash/Bank Disbursements at PT. XYZ has not used a printed serial number, the Purchase Order (PO) has not included the full name and position of the authorizer and evidence of cash/bank disbursements, checks, cash bills, goods purchase orders and supporting documents are not stamped "FULLY" after the transaction is completed

• There has never been a sudden inspection

• Functions that are directly related to company money, Cash on hand and Cash on hand at PT. XYZ is not insured. If there is a loss of Cash, the related party must be responsible

• At PT. XYZ does not have education development, job rotation, assessment and appreciation for employee performance and an attendance system using manual methods

• Collector collects accounts receivable on orders from the accounts receivable section without a Collection Order and the company receives no evidence for receivables payment

• PT. XYZ still receives payments from debtors in the form of Cash and Cash received is not immediately deposited on the day the cash receipt occurs but it is done approximately once a week

Suggestions 

Suggestions for PT. XYZ as follows:

• Safe cash storage in hand should be stored in a special room and separate from other employees to prevent theft

• Proof of Cash/Bank Disbursements are made with printed serial numbers so that their use can be accounted for by the authorities and make it easier to control the use of forms, giving clear names and positions in the columns to be signed and evidence of cash/bank disbursements, checks, cashews, purchase orders of goods and supporting documents should be stamped "FULLY." This is intended to monitor the use of documents

• It is advisable to establish an Internal Audit section. This function is responsible for conducting periodic calculations of Cash on hand to match the calculations' results with cash records and for spot checks of cash balances in cashier's hands and make periodic bank reconciliations

• Functions that are directly related to company money, Cash on hand and Cash on hand must be insured so that if there is a loss of Cash, the insurer will bear the risk

• Educational development and job rotation are carried out following the limit of periodization of positions to reduce excess power in a position to prevent the possibility that someone knows the company's gaps to commit fraud, performance appraisals and rewards employee performance so that every employees are motivated to continue to provide good performance for the company and changes to the attendance system using a computerized method will be more accurate

• The company should make a Collection Order Letter so that billing can be more scheduled and also the company should always ask for proof of payment from customers and especially in cash payments to avoid lapping

• We recommend that cash receipts be deposited immediately to the Bank on the same day or no later than the following working day. The company's cash records can be checked for accuracy by comparing them with bank records. However, it is better if cash receipts should be in the form of checks, current accounts and transfers. This is intended to anticipate robbery

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9. Sedarmayanti. Sumber Daya Manusia dan Produktivitas Kerja. CV Mandar Maju, Bandung, 2009.