1.1 BACKGROUND OF STUDY
Accounting as defined by the American Accounting Association (AAA) is “the process of identifying, measuring and communicating economic information to permit informal judgment and decision by users of the information’s” this information is primarily financial and it is generally stated in monetary terms.
In this study, accounting is a fundamental measurement and communication process used to represent the financial activities of the organization for non –profit making. This is referred to a body that carries on business, special and economic activities that are not with sole aim of making profit. They cover associations, town union’s foundation, national, local and international agencies, churches, hospital, charities, fraternities and social clubs working for the welfare of its member and to the public at large. The principal catalyst in the activities on these organizations is “MONEY”. This money if not well raised, documented and properly accounted for, may raise dispute among participants or member of these organization.
1.2 STATEMENT OF THE PROBLEM
The fact is that many non – profit making organization keep records of the activities in their organization. This brings about improper accounting records and some do not see its significance. In general therefore, these are some of the problem in this research topic but our main aim is on the following:
Payments are made without the approval of the authorized body.
Unqualified accounting officers and employee are use thereby bringing about improper accounting records.
Proper accounting are not kept
Financial statements are not externally audited.
1.3 PURPOSE OF THE STUDY
The purpose of this study is coined at providing possible solution to the statement of the records, that this;
To review the accounting records expected to be kept in a proper standard
To determine who authorized payment and receipts and whether such are made according to the approval of the authorized person(s)
To find out if financial statements are externally audited periodically
To find out whether usual voluntary or elected according officers qualified and component in financial knowledge.
1.4 SIGNIFICANCE OF THE STUDY
This study will be of valuable assistance in many ways and these includes;
It is helpful to the management in measuring the performance, planning and decision making
It enhances accounting officers to know the accounting records expected to be kept and the steps towards proper accounting records.
Accounting officers, member and interested outsiders will understand the significant of proper accounting records to the organization’s performance and also to the Nigeria economy.