This research project concerned a study of the impacts of accounting information on non-profit makings organization: A Case Study of Grace of God Mission. A sample of sixty-three members were made from the district. 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 the 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.
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 pastor 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.
To examine whether the inability of the pastor to keep adequate financial information is responsible for crisis and break up of churches.
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 pastor does not keep adequate financial information.
H1: The church can break away where the pastor 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.