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Management in Islamic boarding school at this time is still managed traditionally. This can be seen from the management process or financial management of Islamic boarding schools. This study aims at describing the financial management on sources of financial income and budget planning in Islamic boarding school. This research was conducted at an Islamic Boarding School Jepara Indonesia. The method used is field research with a qualitative descriptive approach. The data collection technique is done by using documentation review, interview and observation. Data analysis was carried out in three steps, namely: data reduction, data presentation, and data verification or conclusion. The research result shows that (1) financial sources at the Islamic boarding school only come from non-permanent donors and from the business units owned by the Islamic boarding school; (2) budget planning, in planning the budget at this Islamic boarding school has its own concept from the boarding school. The concept was created by the boarding school directly which was based on deliberation which was held every six months. The implementation of the budget in Islamic boarding schools is adjusted to the needs of the pesantren. The obstacle is the uncertainty of financial sources in the boarding schools.
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