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
Summary——————————————-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.