Effectiveness of Internal Control in Payroll Accounting System within Public Sector Organizations

Abstract

The effectiveness of internal control in the payroll accounting system is an important factor in ensuring accuracy, accountability, and reliability of financial information in public sector organizations. This study aims to analyze the implementation of internal control in the payroll accounting system within a local government institution. The research was conducted at the Department of Cooperatives, Small and Medium Enterprises, Industry, and Trade of Sumedang Regency. This study uses a qualitative descriptive approach with data collected through observation, interviews, and documentation. The analysis focuses on organizational structure, authorization procedures, payroll documents, and the separation of duties related to payroll processing. The results show that the payroll accounting system has been implemented properly and supported by adequate internal control elements, including clear functional responsibilities, proper authorization, and reliable recording procedures. However, several improvements are still needed to enhance efficiency and accuracy in payroll processing. The study concludes that effective internal control plays a significant role in maintaining financial discipline and supporting good governance in public sector organizations.