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
Table of contents vi
Background of the study 2
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
Definition of terms 9
2.0 Literature review
2.1 Introductions 12
Design and methodology 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
Presentation and analysis of data 42
Presentation of data 42
Analysis of data 41
Interpretation of result(s) 50
Summary, conclusion and recommendations 54
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 on 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.
According to 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
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
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.
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
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.