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FINANCIAL RECORD KEEPING IN RELIGIOUS ORGANIZATIONS: A CASE STUDY OF CATHOLIC CHURCH IN ENUGU DIOCESE

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ABSTRACT

This research project concerned a study of the financial record
keeping of religious organizations: A Case Study of Catholic
Churches in Enugu Diocese. A sample of sixty-three parishes was
made from the diocese. Investigations were carried on their financial
control used both internally and externally, the accounting system
and financial decisions/reporting adopted. This showed whether there
was an efficient and effective financial record keeping in the church.
Since rth research aimed at investigating existing financial record
keeping or practice the employment of descriptive method of
research was found adequate. The main instruments used for the
collection of primary data were the structured libraries and other
research units served as secondary data. The researcher ensured
that the questionnaire possessed to a large extent the characteristics
necessary and adequate for the purpose of validity and reliability.
Data collected were analyzed and presented with percentages and
tables and hypothesis were tested with the chi-square (X2) statistics
and the following results emerged.
The study revealed that the church keeps proper record of its
accounts and that there is accountability and responsibility, every
member of the finance council has to give account of the money
entrusted to him. It also showed that the church makes yearly budget
before expenses are incurred and that authorization and control of
church expenditure is vested on the management team.
Based on the finds, both short and long term measures were
recommended as ways of enhancing financial record keeping in
religious organizations.

 

TABLE OF CONTENTS

 

Title page ……………………………………………………….. i
Certification……………………………………………………… ii
Dedication ………………………………………………………. Iii
Acknowledgement………………………………………………. iv – v
Abstract…………………………………………………………… vi
Table of Contents……………………………………………….. vii
List of Tables……………………………………………………… viii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Problem………………………………. 1-4
1.2 Statement of the Problem…………………………………. 4-5
1.3 Objectives of the Study……………………………………. 5
1.4 Research Questions………………………………………… 5-6
1.5 Statement of the Hypothesis ……………………………… 6
1.6 Scope of the Study ………………………………………… 7
1.7 Limitations of the Study …………………………………… 7-8
1.8 Significance of the Study …………………………………. 8-9
1.9 Definition of Terms …………………………………………. 9-12
References
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 (A) Origin of Catholic Church in Nigeria………………….14-15
(B) The History of Catholic Church in Igbo Land………..15-17
2.2 The Growth of Catholic Church in Enugu Diocese…………17-21
2.3 The Administrative Set Up of the Diocese………………….21-23
2.4 The Diocesan Financial Management Procedures……..…24-28
2.5 The Concepts of Financial Record Keeping/Evolution
of Record Keeping…………………………………………….29-31
2.6 The Nature and Characteristics of Financial System
of Non-Profit Organizations…………………………………..31-36
2.7 The Church Accounting Manaual……………………………37-41
2.8 Financial Decision Making Procedures in
Religious Organizations……………………………..………..42-51
2.9 Financial Control: Internal and External…………………….48-51
2.10 Financial Reporting and Accounting Records in Catholic
Organizations………………………………………………….52-59
References…………………………………………………….60-61
CHAPTER THREE : RESEARCH METHODOLOGY AND DESIGN
3.0 Introduction……………………………………………………..62
3.1 Sources of Data………………………………………………..62-63
3.2 Data Collection Method………………………………….……63-64
3.3 Population and Sample Size………………………………….64-65
3.4 Method of Data Analysis………………………………………..66
3.5 Re-statement of Hypotheses…………………………..…….66-67
3.6 Statistical Method of Data Analysis………………………….67-68
References……………………………………………………..69
CHAPTER FOUR: ANALYSIS OF RESEARCH RESULTS
4.1 Presentation and Analysis of Data………………………………70
4.2 Analysis of Questionnaire…………………………………………71
4.2.1 Parishes Returns to the Dioceses……………………………….71
4.2.2 How the Church Keeps its Money……………………………….72

CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary of Major Findings………………………………93-98
5.2 Other Findings……………………………………………98-100
5.3 Recommendations….………………………………….100-101
5.4 Conclusion…………..………………………………….101-102
Bibliography…………………………………………….103-104
Appendix C…………………………………………………105
Questionnaire………………………………………..…106-

 

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Every organization both business and non-business requires
and uses finance for its various activities. The business organizations
are set up primarily for profit making like banks, companies and other
related ventures while the religious organizations are not meant for
profit making but for rendering services and winning souls to God.
Religious organizations can come from inform of Christianity, Islam,
Buddhism, Hinduism and other religious sectors of organizations. The
religious organization of interest is Christian religion and indeed
Catholic Church.
Since finance is very vital for the welfare and growth of these
organizations, its administration has to be well accorded financial
records keeping. Finance at the macro level is the study of financial
planning, assets management and fundraising for business, while
macro is te study of finance institution and finance market and how
they operate within financial system (Anyafo, 2000:3). In view of
Emekekwue (1993:1), finance is primarily concerned with money and
momentary matters. In general, finance can be taken as a body of
principles and theories dealing with raiding, investing, managing and
employing funds by individual and organizations in private and public
sectors (Oye: 2002:7).
According to Osisioma (1996:63), a system is a complete array
of an ordered arrangement of interdependent elements, with a
common goal, related by a network of relationships. Such a system
has input process-output component, and it is in itself an information
system.
Financial systems are subsystems in a business organization
whose responsibility is to ensure that business transactions are
recorded in proper books of account on the basis of recognized
accounting practice, analyzed, interpreted and presented to the users
of accounting information (Ubesie, 1998:97). He further stressed that
financial system consists of financial intermediaries, financial market,
financial instruments, rules and norms that facilitate and regulate the
flow of funds through the macro economy.
In essence, Catholic Church as one of the religious
organizations is not meant for profit making but for bringing souls to
Christ. The church requires fund to administer its affairs and to carry
out its daily religious obligations. The funds are not necessarily
adequate to meet up to its numerous demands, though there are
various sources of generating income. It is then necessary to
determine the financial income being used by the churches whether
there are proper record keeping, the financial decisions and reporting
made and the accounting system or procedure adopted. There arises
the need for the church to keep track of its financial operations, this
helps form an adage for it to control its income against its
expenditure. Thus, a house built on a solid foundation remains a
strong house but that whose foundation is shaky can crumble at any
time. In the same way, a good financial background of a church can
be said to be the foundation on which the church is built.
Therefore, the importance of finance, its adequacy to the
church and how these are managed and controlled has led to the
topic of the study financial record-keeping of religious organizations,
a case study of Catholic Church in Enugu Diocese.
1.2 STATEMENT OF THE PROBLEM
Many religious organizations are now being faced with the
problem of finance, the inadequacy of funds to carry outs their
religious rites. Catholic churches are not an exception as most of the
churches are incapacitated in terms of fund, yet there are several
sources of finance but the church seems not to meet up its financial
demand. For good financial records, there must be a well developed
financial decision and reporting procedures and financial control
being used or operated.
It is based on this, that the researcher topic is chosen to asses
the financial record keeping of religious organizations taken into
consideration, Catholic Church in Enugu Diocese so as to know how
the church manages and controls its fund and to suggest ways they
can be improved for a better result.
1.3 OBJECTIVES OF THE STUDY
The main purpose of this research work is to determine the
financial record keeping in use for Catholic Churches in Enugu
Diocese and appropriateness of the financial management and
control. The research work will attempt to provide an in-depth
information on the financial record-keeping of religious organizations
of the Catholic Churches in Enugu Diocese. Specifically, the study is
intended to find the followings:
1. Whether there is effective financial control or not.
2. To know the financial decision making procedure and who
takes the responsibility.
3. To find the financial reporting and accounting records being
used by the Catholic Churches in Enugu Diocese.
1.4 RESEARCH QUESTIONS
In the course of solving the problem of insufficient fund for the
churches, the following questions arose:
1. How are the accounting procedures being used?
2. Are proper accounting records being kept?
3. Is the church observing any accounting manual?
4. Who are responsible for taking financial decisions and plans?
1.5 STATEMENT OF HYPOTHESES
The researcher formulated the following hypotheses:
Hi: There is a significant relationship between the proper financial
records and accounting records of the catholic churches as a
means of controlling expenditure.
H2: Budgetary accounting records are effective management
strategy.
H3: The Catholic Church accounting records keeping is in
conformity with the Diocesan Accounting Manual.
H4: Authorization and control of Catholic Church expenditure are
vested on the church management team.
1.6 SCOPE OF THE STUDY
Any analysis of the appropriateness of financial management
and control and how the funds are being administered and its
adequacy to the individual churches form the basis for research work.
However, the scope of inquiry for this study is based on the
Catholic Diocese of Enugu and some selected parishes like St. Jude
Jude’s Catholic Church Parish 9th Mile Corner, Ngwo and Our Lady of
Lourdes, Imezi Owa for the analysis. The reason being that Catholic
Churches are the same everywhere and indeed in all the parishes
and they also follow the same doctrine and system of operation,
therefore covering all the parishes will be a waste of time and will
make no difference.
1.7 LIMITATIONS OF THE STUDY
One of the limitations of this study is the transportation cost
incurred in visiting the Dioceses, as most times, the priest or the
financial administrators of the dioceses were met absent, therefore,
the researcher has to repeat the visit so as to get the information
required.
Also, much time were wasted in the process of collecting the
necessary data for the study as those responsible to divulge the
information were so reluctant, therefore the researcher/writer waited
for some information that could be gotten concerning the study.
Those times wasted in waiting for the collection of data would have
been used by the researcher to meet up or acquire knowledge on the
study in view or related study.
Besides, the greatest limitation to the study has been the
inability to collect data for the study. Apart from having no related
work done on the topic, the researcher could not easily get the
information for the study. Though, some of the data were gotten later,
the researcher did not find it easy, but managed to get small data for
the analysis.
1.8 SIGNIFICANCE OF THE STUDY
The study is set out to determine the ”financial records keeping
of religious organizations”: A Case Study of Catholic Churches in
Enugu Diocese. It shows at a glance and most importantly, the
overview of the financial records, the financial control, the accounting
system and procedure and indeed financial decision and reporting of
the catholic churches. There is no doubt that the study will benefit not
only the Catholics but also other Christians and other religious
organizations to borrow a leaf from the church so as to maintain a
sound financial system in their various religious groups. Also, the
study will help to remove the misconception from the minds of some
people that church leaders spend church’s fund anyhow. Also, the
analysis and recommendations on this study will go a long way to
alleviate this.
In essences, the study will be beneficial to students of finance
and accounting so as to enlighten them more on finance and
accounting system of religious organizations. It will also serve as a
reference point for further studies.
1.9 DEFINITION OF TERMS
1. FINANCE: A body of principles and theories dealing with
raising, investing, managing and employing funds by individuals
and organizations in the private and public sectors. Financial
managers can take three main decisions; finance, investing and
dividend decisions.
2. FUNDS: This is regarded as cash or its equivalent, example
cheques, drafts, money orders, etc. The term may be used to
include securities which have a ready market and can be
quickly liquated.
3. FINANCE COMMITTEE: This is an association where those
involved or are specialized in finance shall have power to
supervise the financial affairs of the corporation or organization
and shall report to the board from time to time whenever it shall
be called upon to do so.
4. APOSTOLIC SEE: This sometimes was a see ruled by one
of the apostles but now it refers for Rome, the city of the Pope,
which her rules as Bishop of the Diocese of Rome. This term
also applies to governing bodies of the church with official
governing bodies in the Vatican, the branch of the Roman Curia
which cut only under the authority of the Pope.
5. ECCLESTICAL: This adjective simply means ”of pertaining to
the church” thus, there are ecclestical courts, calendars,
honours, laws (of Canon Law) jurisdiction, studies and others. It
is derived from the Greek word “ecclesia”
6. TEMPORAL GOODS: This are created materials and extended
to creatures and possession that can acquire such as money,
precious items. Temporal goods are used only for those
purposes to the teaching of Christ the Lord.
7. JURIDICAL PERSONS: This is the public power granted by
Christ or by His Church Canonical Mission of favoring the
baptized. This power is referred to that belonging to the church
as a perfect society, whereby the church affects a rule for the
spiritual goods of its members. In matters referring to salvation,
it is the right of a person or agency, to pass or apply a given law
in a specific situation.
8. PRESCRIPTS: This is a written reply of a religious supervisor
to a request report or question. In the make of it, it repeats the
request and facts together with the reasons and then offers the
answers with the conditions. It is the usual form through which
dispensation are granted or derived.
10. CLERGY: Any clerical person but not reverend sisters.
11. DIOCESAN BISHOP: Bishop of the Diocese is different from
Monks and Abbot e.g. M.U Eneje.
12. EPISCOPAL CONFERENCE: Conference of the Popes.
13. MENDICANT RELIGIONS: Religions that live on begging.
REFERENCES
Emekekwue; P.E (1993), Principles of Public Finance, Kinshasa-
Zaire, African Bureau of Educational Sciences Special Agency
of the Organization of African Unity, P.1
Melicher, and Welshans (1986), Finance: Introduction to Markets,
Institutions and Management, 8th Edition, Ohio, South West
Publishing Company.
Osisioma, B.C. (1996), Studies in Accountancy: Text and Reading,
Enugu, Acene Publishers Limited, P.63.
Oye, A. (2002), Financial Management, Papa Ajao Mushin Lagos,
EL-Toda Ventures Limited, P.7
The New Catholic Encyclopedia (1967), The Catholic University of
America Washington D.C, Printed in America, P.64
Ubesie, M.C (1998), Advanced Financial Accounting, Enugu,
Computer Edge Publishers, P. 97

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