ABSTRACT
Church, like any other organization needs to keep adequate
accounting records in order to report its financial dealings to its reader.
This study focuses on accountability in Nigeria
churches, relevant data was collected from respondents using very well prepared
questionnaires and oral interviews and analyzed by the means of simple
percentages.
It was found that churches do not maintain any known accounting
system and do not use those knowledgeable in accounting for its records.
It is then concluded that mismanagement in churches and records
which allows lack of accountability. It is our recommendation that churches
should employ proper formal accounting and use persons capable of keeping
accounting records in their organizations.
TABLE OF CONTENTS
Title page———————————————– i
Approval page——————————————ii
Dedication———————————————–iii
Acknowledgment—————————————-iv
Abstract—————————————————v
Table of contents—————————————–vi
Chapter one
- Introduction——————————————1
- Background of the study—————————-2-4
- Statement of the problem—————————-5
- Objectives of the study——————————-6
- Research questions———————————–6
- Significance of the study—————————–7
- Scope of the study————————————8
- Limitation of the study——————————–8
- Definition of terms———————————–9-11
Chapter two
2.0 Literature review——————————12-13
2.1 Introductions———————————–12-13
References——————————————-14-31
Chapter three
Research design and methodology—————-32
3.1 Introduction————————————-32
3.2 Research design———————————32
3.3 Sources/method of data collection————-33
3.4 Population and sample size———————34
3.5 Sample techniques——————————–35
3.6 Validity and reliability of measuring instrument–35
3.7 Method of data analysis—————————-36
Chapter four
- Presentation and analysis of
data——————37
- Introduction—————————————–37
- Presentation of data———————————37
- Analysis of data———————————-37
- Interpretation of result(s)———————-38-49
Chapter five
- Summary, conclusion and
recommendations—-50
- Conclusion——————————————52
- Recommendations———————————-53
References ———————————————-54-55
Appendix————————————————-56
CHAPTER ONE
- INTRODUCTION
As a matter of fact, accounting is not very new in the history
of men. Anywhere and whenever economic activities have progressed beyond the
most elementary conditions of service and production, the accounts system have
appeared. As far back as 4500BC, accounts system have been found, hence Greek,
Romans, Egyptians, early European and medieval accounting records are in
existence. In fact man have used accounting recording at any stage of his
development according to their needs.
Accounting environment has undergone vast changes ion the past
and an accelerating rate of change is in prospect for the future. As at today
what is been accepted as accounting would have been recognized as such fifty
years ago, as such, one may safely predict that in fifty or more years time,
the subject will bear little resemblance to what it is today. Accounting from
the view point of American Accounting Association (AAA, 1996) they defined it
thus: “is the process of identifying, measuring and communicating economic information
to permit informed judgment and decision by the users of information”. Well
according to the Bible, “church” is defined as “the body,” which Christ is the
head. Therefore, church is assembly of citizens that acknowledge Jesus Christ
as their supreme ruler. Church as an organization possessed the characteristics
of non-profit making. B.N Okezie, FCA (2000) Defined non-profit making
organization as those that possess following characteristics:
“Non-profit making organization thereby non-trading and non
service rendered except to their members and having their major source of
funding through subscription from such members.
1.1 BACKGROUND
OF THE STUDY
The primary objective of the churches, though non-profit
maximization but this churches realized revenue as they meet for fellowship
through tithes, offering, donations, persuasions etc, this revenue as a matter
of facts, have to be properly accounted for, hence the members may wish to know
if this revenue are properly utilized by the management. On this note, there is
that need for accountability by the management hence nature demands that any
one who is given work to perform must be accountable to it. According to Kohe’s
Dictionary for accountants, 6th edition, he defined accountability
as ‘the obligation of an employee, agent, or other person to supply a
satisfactory report after periodic of action or of failure to act following
delegate authority”.
Accountability in this perspective is stewardship. As a matter of fact, stewardship accounting has its origin in the function which accounting serve from the earliest time in the history of our society. Essentially, accountability can not be achieved without involving orderly recording of the organization financial and non-financial transactions, and this agrees with the accounting term “fairness”. “Adequacy and propriety” in other words, the ability of financial statement to convey in ambiguous and adequate information.
The word stewardship have been considered so important that St. Luke
Gospel chapter 16 verse 2, said “and he called him and said unto him, how is it
that I hear this? Give an account of the steward for thou sayest be no longer
steward”.
Therefore, if accountability and fairness is to be achieved in
any organization which includes church as a focus of this research, there must
be an adequate and constant accounting system.
At this point, we consider the word accounting system, according
to Eric L Kohler, he defined accounting system as: “The classification of
account, form, procedures and control by which assets, liabilities, revenues,
expenses and the result of transactions generally are recorded and controlled”.
On this note, this research aim of examining the accountability in churches. To know when they have general accepted accounting principle different from the one used by profit making organizations.
ACCOUNTABILITY IN NON-PROFIT MAKING ORGANIZATION A CASE STUDY OF ASSUMPTA CATHEDRAL CHURCH OWERRI
