ACCOUNTABILITY IN NON-PROFIT MAKING ORGANIZATION (A CASED STUDY OF ASSUMPTA CATHEDRAL CHURCH OWERRI)

ABSTRACT

An appraisal of tax collection system in Nigeria. The aim and objective of the topic is to critically analyze the assessment and collection procedure of tax in Nigeria. To identify the problems militating against assessment and collection procedure, to know the possible effects of improving assessment and collection recommendation for an effective and efficiency means of assessment and collection of taxes. Finally, to make useful suggestion and advices the government based on the findings.

The significant of this study is that though tax is a nationwide phenomenon, the scope of this study is intended to cover only Imo state; the tax laws in Imo state and the various types of taxes in operation.

Taxation as one of major sources of revenue to the unsuccessful implementation of economic policies on collection procedures for the government. Fraud as one of the problem because most of tax payers in Nigeria falsify their records so as not to be declare high profit and pay high tax . Also most of the taxpayers’ money cannot be accounted for. At times when taxes paid, the tax officials don’t give the government all the monies they reserve some for themselves.

The techniques used in the formulation of the hypothesis are the statistical method which is the chi-0square method was chosen to help in interpretation of the data collection during investigation. The null hypothesis (Ho) is used to determine its acceptance and or otherwise the acceptance of the alternative hypothesis (H1).

The findings in all the project is that the assessment and collection in Nigeria is not effective.

Secondary is that the response of taxpayers in Nigeria connive with tax officials to evade tax.

The researcher’s recommendations in order to boost the present tax collection system in Nigeria is to increase the revenue generated through tax improve tax payers confidence in the government and willingness to pay tax.

TABLE OF CONTENTS

Title page-      –      –      –      –      –      –      –      –      -i

Certification-   –      –      –      –      –      –      –      –      -ii

Dedication-     –      –      –      –      –      –      –      –      -iii

Acknowledgment-   –      –      –      –      –      –      –      -iv

Abstract- –      –      –      –      –      –      –      –      –      -v

Table of contents-  –      –      –      –      –      –      –      -vi

Chapter one

Introduction – –      –      –      –      –      –      –      -1

Back ground of the study-   –      –      –      –      -2

Statement of the problem-  –      –      –      –      -4

Objectives of the study-      –      –      –      –      –      -5

Research questions-     –      –      –      –      –      -6

Statement of hypothesis-    –      –      –      –      -7

Significant of the study-      –      –      –      –      –      -8

Scope of the study-     –      –      –      –      –      -9

Limitation of the study-       –      –      –      –      –      -10

Definition of terms-     –      –      –      –      –      -10

Chapter two

2.0 Literature review-    –      –      –      –      –      –      -13

Introduction- –      –      –      –      –      –      –      -13

Review of tax laws in Nigeria-      –      –      –      –      -13

Canons of taxation –      –      –      —    –      –      -14

Provision of income tax management Act (ITMA)-      -16

Nigeria tax legislature    –      –      –      –      –      – 17

The various types of taxes and their legal back    -18

Important of taxation    –      –      –      –      –      -19

Federal Board of Inland revenue-  –      –      –      -20

state board of Inland revenue-     –      –      –      -23

Local government revenue committee- –      –      -25

Nigeria tax structure-    –      –      –      –      –      – 25

Definition/explanation of tax terminology29

Assessment of persons and partners-   –      –      -40

The concept of value added tax-   –      –      –      -41

Vatable persons in Nigeria-   –      –      –      –      -48

Chapter three

3.0 Research Design and Methodology –      –      –      –      -50

Introduction- –      –      –      –      –      –      –      -50

Research design sources/methods of data collection-50

Sources of data     –      –      –      –      –      –      -51

Population and sample size-  –      –      –      –      -52

Sample technique- –      –      –      –      –      –      -54

Validity and reliability of measuring instrument-  -54

Method of data analysis-      –      –      –      –      –      – 56

Chapter four

4.0 Presentation and analysis of data-   –      –      –      -65

Introduction-  –      –      –      –      –      –      –      -65

Presentation of data-     –      –      –      –      –      -65

Analysis of data-    –      –      –      –      –      –      -66

Test of hypothesis- –      –      –      –      –      –      -74

Interpretation of result- –      –      –      –      –      -79

Chapter five

5.0 Summary conclusion and recommendations – –      -81

5.1 Introduction-    –      –      –      –      –      –      –      -81

5.2 summary of findings-      –      –      –      –      –      –      – 81

5.3 Conclusions-     –      –      –      –      –      –      –      -82

5.4 Recommendations – –      –      –      –      –      –      -83

5.5 recommendation for further studies –     –      –      -90

References      –      –      –      –      –      –      –      –      -91

Appendix-       –      –      –      –      –      –      –      –      –      -93

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.