THE IMPACTS OF ACCOUNTING INFORMATION ON NON-PROFIT MAKINGS ORGANIZATION (A CASE STUDY OF GRACE OF GOD MISSION AWKUNANAW)
Table of contents
Statement of problems
Statement of hypothesis
Objectives of study
Importance of study
Conceptual definition of terms
Organization of studies
What non-profit making organization is
Accounting information system
Sources of income
Important of accounting information
Impact of accounting information
Dangers of unqualified hand handling accounting
Sources of data
Research regulation and sample size
Research instrument used
Data analysis techniques
and analysis of data
Analysis of questionnaires distributed
Board members/workers and members responses
Test and proofing of hypothesis
summary, conclusion and recommendation
Discussions of findings
Summary of findings
The applications of Accounting Information have
contributed to the growth and development of every business entity. Non-profit making organization on the other
hand has immensely benefited from accounting information to survive, integrate
and stabilize in this current economic recession in the country. Any of the non-profit making organization
that neglect the roles and impacts of accounting information will at the end of
the day fold up.
Many churches today have split, folded up, merged
with another due to claims that the church funds has been embezzled, diverged
and mismanaged where the committee or the priest concerned fails to present and
document financial records of the church.
This has created loopholes for the spreading of churches at every street
and corners, hence churches are seen as the fastest means of making money.
1.1 HISTORICAL BACKGROUND
Grace of God Mission started in the late seventies,
but was registered as a corporate body under the “Land Perpetual Succession Act Lap 98” on 14th
Grace of God Mission as one of the leading and
dynamic Pentecostal churches in Nigeria has a network of branches across each
region of Nigeria and some branches outside Nigeria.
However, Awkunanaw began as a local church branch in
1984 under the pastoral care of late Rev. Raymond Iwundu. The church at Awkunanaw grew like mustard
seed to its summit as a Division Headquarter in
1997 having five (5) district churches and 23 local churches under her
1.2 STATEMENT OF PROBLEM
The persistent increase in cost of ineffective
management of accounting information in church has caused schisms, folding up,
breaking away and springing up of mushroom churches.
This project proposes to examine whether the church
can survive, grow, stabilize under this atmosphere.
To examine whether the inability of the priest to keep adequate
financial information is responsible for crisis and break up of churches.
To find out the problem that could likely be encountered or created
where unqualified hand handles accounting information of the church.
1.3 STATEMENT OF HYPOTHESIS
The following hypothesis were formulated in order to
find out the validity and reliability of information gathered.
cannot break away where the priest does not keep adequate financial
church can break away where the priest keeps inadequate financial information.
information may not create problems where unqualified hand handles it.
information may create problems where unqualified hand handles it.
1.4 OBJECTIVE OF THE STUDY
Noted hereunder are specific objectives, which the
project is designed to achieve:
To find out the impacts of accounting to non profit making
To find out importance of accounting information to the church
To see how accounting information could b e applied in the church
To identity the problem created when accounting information is not used
in the church
To find out the problem associated with unqualified hand handling
1.5 IMPORTANCE OF THE STUDY
The critical analysis of this work will be very
beneficial to non-profit making organizations especially the churches.
It will serve as a better information guide to
churches who wish to apply accounting information. It will help all to appreciate the impacts of
accounting information not to the non-profit making organization but to profit
1.6 SCOPE AND LIMITATION OF THE STUDY
This work covers the area of impact of accounting
accompanying accounting information to Non-profit making organization with
reference to Grace of God Mission Awkunanaw.
During the course of the research, the researcher
faced the following problems.
Dearth of statistical information
Lack of adequate research facilities
Financial Constraint: For the fact that the researcher is a
student, the lacked the necessary finance to carryout extensive research on the
Time Constraint: The researcher as a student
also have academic activities which limited the time used for the project other
than what it would have been. Also
considering the shortness of the
semester and the time of submission of this project, there was not
enough time left for the project work.
Death of Statistical Information: Facts were not easy to come about during the course
of the project work. I was subjected to
unnecessary protocol at the expenses of my limited time before getting some
Lack of Adequate Research Facilities: The research was faced with lack of adequate
research facilities like up-to-date information and non-availability of
relevant textbooks. Most of the
textbooks used for the project discussed on non-profit making organization as
it related to social clubs, institution organizations., and cheatable organization.
1.7 CONCEPTUAL DEFINITION OF TERMS
The terms used in this project work has been
simplified to enable even the least literate person to understand easily. To this end almost complete elimination of
technical works or expressions has been made.
This has been made in order to make sure that the information sought for
from this work is got at a glance.
Nevertheless, some few technical words may include:
This is the act of recording, classifying and summarizing in a systematic manner and in
terms of money, transactions and events which are, in part at least, of a
financial character, and interpreting
the result thereof.
This is processed data. Data are merely facts and figures that have
little to do with decisions.
It is setting goals and ways to achieve them
It is excess income over expenditure
It is excess expenditure over income
A book of original entry listing transactions
affecting general ledger accounts in chronological order in terms of their
debit and credit amount.
A book containing the individual accounts of a
A written authorization to pay individual or company
whose name appear in the vouchers.
Usually contain the name of the individual or company to be paid, the
amount of payment, signature authorizing of payment, the reasons for payment,
signature authorizing the payment and the accounts to be debited or credited as
a result of the payment.
Grace of God Mission
Calculated 10% of one’s income
Members of Elders, Deacons and Deaconesses
The Exco of various wings and departments in the
Those who do not hold any position in the church but
they belong to the church.
1.8 ORGANIZATION OF THE STUDY
In order to have comprehensive approach towards the
impacts of accounting information on non-profit making organization the
researcher divided this work in five (5) chapters.
Chapter one deals with the introduction, brief
history of the organization, statement of hypothesis, objective of study.
Chapter two deals with the literature review and the
following topics were discussed under the following headings. Non-profit making organization, accounting
information system, accounting document sources of income, accounting system,
accounting basis, importance of accounting information, users of accounting
information, impacts of accounting, dangers of unqualified hand handling
Chapter three talks on research methodology and
chapter four is on the presentation and analysis of data.
Finally, chapter five is on findings, summary,
recommendation and conclusions.