TABLE OF CONTENT
Cover Page i
Title page ii
Approval Page iii
Dedication iv
Acknowledgement v
Table of content vi
Abstract viii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of problem 2
1.3 Objective of the study 3
1.4 Research questions 3
1.5 Research Hypothesis 3
1.6 Significance of the study 4
1.7 The Scope of the Study 4
1.8 Limitation of the study 4
1.9 Definition of terms 4
CHAPTER TWO
2.0 Literature Review 5
2.1 Conceptual Frame work 5
2.2 Theoretical Framework 15
CHAPTER THREE
3.0 Research Methodology 19
3.1 Design of the Study 19
3.2 Area of the Study 19
3.3 Population of the Study 19
3.4 Sample Technique and Sample Size 19
3.5 Instrument for Data Collection 20
3.6 Validation of Instrument 20
3.7 Distribution and Retrieval of Instrument 20
3.8 Method of Data Analysis 21
CHAPTER FOUR
4.0 Data Presentation and Analysis 22
4.1 Data presentation 22
CHAPTER FIVE
5.0 Summary, Conclusion Recommendations 30
5.1 Summary of Findings 30
5.2 Conclusion 30
5.3 Recommendations 30
References 32
Appendix A 33
Appendix B 34
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 non-profit making organizations. 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.
CHAPTER ONE
INTRODUCTION
- Background to the Study
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. Okezie (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. 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 cannot 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. 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.
1.2 Statement of the Problem
This project work geared towards examining orderly recording of church accounts. Most of the churches encountered problems like the following:
- mismanagement of fund
- not adopting the required accounting system
- Churches do not audit their accounts to know if their account is true and fair view.
- Churches do not keep proper record of their assets.
- Churches do not employ professional accountant instead they may use their secretary, treasurer and any other person to do the recording which is an abuse to the accounting profession. In a situation like this, accountability which is the watch word in an organization will see impossible and there by disunity and misunderstanding is inevitable.
1.3 Objectives of the Study
The following objectives would guide this study:
- To find out whether churches keep proper accounting book from our study?
- To find out the accounting system adopted by churches?
- To determine who keep the account of a church?
- Find out what extent the church engage in profit making venture outside its constitutional obligations?
- To determine whether the church have accounting period?
- To investigate whether the church keep to the principle of double entry?
- To find out whether assets are appropriately depreciated?
- To find out whether the church account is subject to auditing?
1.4 Research Questions
- Do churches keep proper accounting book from our study?
- Which accounting system is adopted by churches?
- Who keep the account?
- Does your church engage in profit making venture outside its constitutional obligations?
- Does your church have accounting period?
- Do they keep to the principle of double entry?
- Are assets appropriately depreciated?
- Does your church account subject to auditing?
1.5 Significance of the Study
The study would help to checkmate fraudulent activities that arise in the church. The study would clear any doubt or whatsoever the members assumed about their leaders. The study would encourage proper accounting of asset owned by the church. The study would serve as a reference material for other researcher on the same or related topic. Finally, the study would help policy makers to make laws that would encourage transparency in non-profit organization.
1.6 Scope of the Study
This study is limited to accountability in Non-profit making organizations.
1.7 Definition of Terms
Church: it is defined as assembly of citizens that acknowledge Jesus Christ as their supreme ruler.
Accountability: this is a systematic process of orderly recording of organization financial and non-financial transactions with aid of providing financial report in fairness.
Fairness: this is an extension of the objectivity principle. In view of the fact that there are many users of accounting information, all having different needs. The fairness principle requires that accounting reports should be prepared not to favour any group or segment of the society.
Entity: it can be seen as curry economic unit, regardless of its legal form of existence.
Accounting: this is the process of providing information regarding primarily, the financial activities of economic entities so that the user of this information may make decision about the entities., it can also be carried out through recording, classifying and summarizing figures in a systematic manner and in terms of money transaction and others.
Accounting system: this is a system or medium through which fundamental accounting concepts and accounting standard adopted in recognizing, measuring and making an item of revenue, expenses, gain, loss or any assets or liability.
Accounting concepts: these are the broad assumptions which are followed in the preparation of the periodic financial statement of the business enterprises.
Accounting procedures: these are procedures that help us to systematically record, classify, summarizes and report transactions as well as interpret or provides avenue for propose understanding of the accounting reports.
Accounting policies: these are bases, rules, principles, convention and procedure adopted in preparing and presenting financial statement.
DISCLAIMER: All project works, files and documents posted on this website, eProjectTopics.com are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. eProjectTopics.com is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on eProjectTopics.com is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.
