The Roles and Impact of Accounting Information to NonProfit Making Organization A Case Study of RCCG

The Roles and Impact of Accounting Information to Non-Profit Making Organization

Project / Seminar Material
Reference ID: PS-23604-TM

DEDICATION

This research material titled “The Roles and Impact of Accounting Information to Non-Profit Making Organization” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Accountancy / Accounting, Book Authors and Profound Scholars of existing or related project material on “The Roles and Impact of Accounting Information to Non-Profit Making Organization” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

The Roles and Impact of Accounting Information to Non-Profit Making Organization (A Case Study of RCCG)

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

  • 1.1 Introduction
  • 1.2 Background of Study
  • 1.2.1 Historical Review of RCCG
  • 1.3 Statement of Problem
  • 1.4 Aim and Objectives of Study
  • 1.5 Research Questions
  • 1.6 Research Hypothesis
  • 1.6 Significance of Study
  • 1.7 Scope of Study
  • 1.8 Limitations of the study
  • 1.9 Definition of Terms

CHAPTER TWO

LITERATURE REVIEW

  • 2.1 Introduction
  • 2.2 Conceptual Review of Accounting Information
  • 2.3 Sources of Accounting Information
  • 2.4 Importance of Accounting Information
  • 2.5 Theoretical Framework
  • 2.6 Use of Accounting Information in Firms
  • 2.7 Users of Accounting Information
  • 2.8 Problems of the Use of Accounting Information in Companies
  • 2.9 Empirical Studies

CHAPTER THREE

RESEARCH METHODOLOGY

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Population of Study
  • 3.4 Sampling Technique
  • 3.5 Research Instrument
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Questionnaire
  • 3.8.1 Interview
  • 3.8.2 Key Informants Interview
  • 3.8.3 Observation
  • 3.9 Ethical Consideration
  • 3.10 Statistical Analysis

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

  • 4.1 Introduction
  • 4.2 Presentation and Analysis of Data
  • 4.3 Re-statement of Research Questions
  • 4.4 Test of Hypothesis 1
  • 4.5 Test of Hypothesis 2
  • 4.6 Discussion of Findings

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

  • 5.1 Introduction
  • 5.2 Summary of Findings
  • 5.3 Conclusion
  • 5.4 Recommendation

REFERENCES

APPENDIX A - “QUESTIONNAIRE”

ABSTRACT

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. The applications of Accounting Information have contributed to the growth and development of every business entity. The study was carried out to examine The Roles and Impact of Accounting Information to Non-Profit Making Organization using Redeemed Christian Church of God (RCCG) as a case study. In achieving this aim, the following objectives were set out as follows to find out: he impacts of accounting to non-profit making organization, importance of accounting information to the church, and problem associated with unqualified hand handling accounting information. Investigation reveals the problems of The Roles and Impact of Accounting Information to Non-Profit Making Organization research work which entails that the inability of the priest to keep adequate financial information is responsible for crisis and break up of churches, and cases of unqualified personnel handling accounting information of the Redeemed Christian Church of God (RCCG). The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 133 (one hundred and thirty three) respondents were selected for this study to represent the entire population of the study. For null hypotheses were formulated and tested using the one-way ANOVA and the t-test statistical tools at zero point zero five (0.05) level of significance. Primary data were collected from the primary source which questionnaire was used as an instrument of data collection while secondary data were sources from textbooks, journals, newspapers and the internet were employed. The data were presented on a frequency distribution table and analyzed using simple percentage, while hypothesis was tested using chi-square test. The study will serve as a better information guide to churches who wish to apply accounting information, and will also help all to appreciate the impacts of accounting information not to the non-profit making organization but to profit oriented businesses.

The Roles and Impact of Accounting Information to Non-Profit Making Organization (A Case Study of RCCG)

CHAPTER ONE

1.1 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. 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.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

Management is frequently faced with the problems of making alternative decisions faced with fact that resources are relatively scarce and limited compared to human wants. management does not only seek to ascertain cost at various stages in the process of providing a product or services, but also to make proper and accurate decisions at all levels on the modern organization. This process is facilitated by utilization of adequate and accurate accounting information policies.

Chris M. Madu (1999) without doubt decision making is one of the highest forms of human and hence management activity. The development of a business and the activity of its potentials very much depend on the existence of entrepreneurs with the present skills, capital and professional advice. These include accurate accounting information provided by accountants and their planning and other decision process. Despite the provision and utilization of accounting information, managers found it difficult to plan accurately. Consequently, results have on most cases been away from decision budget. This can be attributed to inadequate and inappropriate use of information.

This study will examine the use of accounting information in the form. it will delve into the constraint affecting the use of accounting information by mangers in their decision making process.

Also this study will give a related literature that will discuss the nature and sources of accounting information, its importance and the users of this information.

1.2.1 Historical Review of RCCG

The Redeemed Christian Church of God (RCCG) is a Pentecostal mega church and denomination founded in Lagos, Nigeria. The General overseer (most senior pastor) is Enoch Adeboye, ordained in 1981. The church in Lagos has an average church attendance of 100,000 (Wikipedia, 2021).

The RCCG was founded in 1952 by Rev. Josiah Olufemi Akindayomi (1909–1980) following his involvement in other churches. Rev. Akindayomi chose Enoch Adejare Adeboye as the next General overseer. Enoch Adeboye was a lecturer in mathematics at the University of Lagos, Nigeria, as at the time he joined the church in 1973. Adeboye initially became one of the interpreters translating Akindayomi's sermons from Yoruba to English. He was ordained a pastor of the church in 1975, and his appointment as leader (General overseer) of the church was formalized by the posthumous reading of Akindayomi's sealed pronouncement. In 1990, Redeemed Christian Church of God Bible School was founded (Wikipedia, 2021).

In 1981, Pastor Enoch Adejare Adeboye became the General Overseer of the Church. In 1983, the land for the Redemption Camp in Mowe was purchased. In 1988, a students’ body known as the Redeemed Christian Fellowship (RCF) was established. It is the youth wing of the church concentrated within tertiary institutions of learning in the country. In 1990, Christ the Redeemer’s Friends Universal (CRFU), was established to garner financial and human resources from the very wealthy in the society. In 2005, Redeemer's University was established (Wikipedia, 2021).

Andrew Rice, writing in The New York Times, calls the RCCG "one of Africa's most vigorously expansionary religious movements, a homegrown Pentecostal denomination that is crusading to become a global faith". The church's leaders preach that in the future "In every household there will be at least one member of Redeemed Christian Church of God in the whole world" (Wikipedia, 2021).

In 2008, it had 14,000 churches and 5 million members in Nigeria, in 80 countries. The international church is structured in different areas throughout the world. The local churches are now grouped into regions, with 25 Regions in Nigeria. It is also organised throughout most of the world. Notable special spiritual programs are the Holy Ghost Service which holds on first Friday of every month in Nigeria (Wikipedia, 2021).

Beliefs of RCCG

The official RCCG website outlines its beliefs in the Bible and the Holy Trinity, that the Devil exists, that God formed man in his image, in repentance, in cleansing from sins by God's grace, in sanctification, water baptism, Holy Spirit baptism, restitution and that it is possible for God to heal without medicine (by His divine intervention e.g. through prayer). The church is a strong advocate of peace and holiness ("Follow peace with all men, and holiness, without which no man shall see the Lord. Hebrews 12:14 - KJV). The church forbids "worldliness" (such as reveling and lewd dancing) and rebellion against church authority. The church is also against debt to finance either the church or its activities. It encourages abstention from all evil and reverence to parents and constituted authorities (Wikipedia, 2021).

1.3 Statement of Problem

Investigation reveals the problems of the Roles and Impact of Accounting Information to Non-Profit Making Organization (A Case Study of RCCG) research work:

  1. Inability of the priest to keep adequate financial information is responsible for crisis and break up of churches.
  2. Cases of unqualified personnel handling accounting information of the Redeemed Christian Church of God (RCCG),
  3. 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.

1.4 Aim and Objectives of Study

The aim of the study is to examine the Roles and Impact of Accounting Information to Non-Profit Making Organization using Redeemed Christian Church of God (RCCG) as a case study. In achieving this aim, the following objectives were set out as follows:

  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 investigate how accounting information could be 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 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

  • What are the impacts of accounting to non-profit making organization?
  • Is there any importance of accounting information to the RCCG?
  • How can accounting information be applied in the RCCG?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

  • 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.

Hypothesis Two

  • H0: Accounting information may not create problems where unqualified hand handles it.
  • H1: Accounting information may create problems where unqualified hand handles it.

1.7 Significance of Study

The critical analysis of this work will be very beneficial to non-profit making organizations especially the churches.

  1. It will serve as a better information guide to churches who wish to apply accounting information.
  2. It will help all to appreciate the impacts of accounting information not to the non-profit making organization but to profit oriented businesses.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.8 Scope of Study

This work covers the area of Impact of accounting accompanying accounting information to Non-profit making organization with reference to Redeemed Christian Church of God (RCCG).

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

  1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
  2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
  3. Research material: availability of research material is a major setback to the scope of the study.
  4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
  5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definition of Terms

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.

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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