Analysis of the Effectiveness of Internal Control Roles Over Fixed Assets at the District Office of Medan Labuhan, North Sumatra

Dewi Pakpahan; Stevan Gea; Siti Aisyah; Jumeida Simatupang; Aprili Yanti; Erika Sembiring; Iventura Tamba

Authors

Dewi Rafiah Pakpahan Universitas Mahkota Tricom Unggul, Medan, Indonesia
Stevan Rejekiman Gea Universitas Mahkota Tricom Unggul, Medan, Indonesia
Siti Aisyah Universitas Potensi Utama, Medan, Indonesia
Jumeida Simatupang Universitas Potensi Utama, Medan, Indonesia
Aprili Yanti Universitas Potensi Utama, Medan, Indonesia
Erika Apulina Sembiring Universitas Potensi Utama, Medan, Indonesia
Iventura Fitra Uli Tamba Sekolah Tinggi Manajemen Bisnis Multi Sarana Manajemen Administrasi dan Rekayasa Teknologi, Medan, Indonesia

Keywords:

Internal Control System, Fixed assets

Abstract

This research aims to assess the effectiveness of the internal control system governing fixed assets at the Medan Labuhan District Office, identifying challenges, causes of ineffectiveness, and proposing strategies for improvement. The study employs a descriptive research approach and utilizes Nvivo+11 software for comprehensive analysis. Data are gathered through document analysis, interviews, and a review of Standard Operating Procedures (SOP) to evaluate the internal control system for fixed assets. The findings reveal that the internal control system at the Medan Labuhan District Office faces challenges, including inadequate communication on asset maintenance and negligence in financial record-keeping during asset transactions. These issues have led to operational inefficiencies and disputes, deviating from SOP. This study recommends solutions to prioritize communication regarding asset maintenance to enhance awareness and accountability. Additionally, it suggests implementing immediate and accurate recording practices to prevent disputes and discrepancies in financial documentation.

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