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THE IMPACTS OF ACCOUNTING INFORMATION ON NON-PROFIT MAKINGS ORGANIZATION A CASE STUDY OF GRACE OF GOD MISSION AWKUNANA

Format: MS WORD  |  Chapter: 1-5  |  Pages: 51  |  3110 Users found this project useful  |  Price NGN5,000

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CHAPTER ONE

INTRODUCTION

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 October, 1980.   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 control.   
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. 
1.     To examine whether the inability of the priest to keep adequate financial information is responsible for crisis and break up of churches. 
2.     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. 
H0:     Church cannot break away where the priest does not keep adequate financial information. 
H1:     The church can break away where the priest keeps inadequate financial information. 
H0:     Accounting information may not create problems where unqualified hand handles it. 
H1:     Accounting information may create problems where unqualified hand handles it. 
1.4     OBJECTIVE OF THE STUDY 
Noted here under are specific objectives, which the project is designed to achieve: 
1.      To find out the impacts of accounting to non profit making organization. 
2.      To find out importance of accounting information to the church 
3.      To see how accounting information could b e applied in the church 
4.      To identity the problem created when accounting information is not used in the church 
5.      To find out the problem associated with unqualified hand handling accounting information.   
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 oriented businesses. 
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. 
1.    Financial Constraint:  For the fact that the researcher is a student, the lacked the necessary finance to carryout extensive research on the topic,   
2.   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.   
3.    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 facts.   
4.    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:
Accounting 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. 
Information This is processed data.  Data are merely facts and figures that have little to do with decisions. 
Planning It is setting goals and ways to achieve them 
Surplus: It is excess income over expenditure 
Deficit It is excess expenditure over income 
Journal A book of original entry listing transactions affecting general ledger accounts in chronological order in terms of their debit and credit amount. 
Ledger A book containing the individual accounts of a business entity. 
Voucher 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. 
GGM: Grace of God Mission 
Tithes Calculated 10% of one’s income 
Board Members Members of Elders, Deacons and Deaconesses 
Church Workers The Exco of various wings and departments in the church. 
Members 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 accounting information.   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.

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