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 hereunder 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
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