Christian Stewardship and Church Management: Examining the Effectiveness of Internal Control System in Christ Apostolic Church
Chapter One
Objectives of the study
The main objective of the study is to examine the Christian stewardship and church management: examining the effectiveness of internal control systems in Christ Apostolic church.
The following are the specific objectives of the study:
- To examine the effect of control environment on the management of financial resources in Christ Apostolic church
- To examine the effectiveness of control activities in the management of financial resources in Christ Apostolic church.
- To establish the effect of monitoring on the financial management of Christ Apostolic church.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Accountability and stewardship in religious organisations
Accountability is used to describe the responsibility of those who manage or control resources for others (David and Michael, 1998). Quattrone (2004) studied accounting and accountability practices in the Society of Jesus, Italy during the 16th and 17th centuries and appealed for explanations of the emergence of accounting and accountability practices to resist being reduced to the economic, whereby they are seen to be the product of needs for the allocation of resources, internal control and monitoring activities. In the case of the Society of Jesus, Quattrone (2004) argues that the emergence of accounting and accountability practices was tightly linked to the absolute ideology of the Roman Catholic doctrine of the Counter-Reformation. Financial accountability is based on the principle of financial stewardship. A steward is one who occupies the position of manager of the owner’s possessions. He or she is required to exercise responsible care over funds and assets entrusted to him or her. In the Bible, the word which infers the notion of stewardship is ‘Oikonimos’ (stewards) and ‘Oikonomia’ (stewardship). A classical example of stewardship in the Old Testament is the role of Joseph who was in charge of his master’s household, providing water for their feats and fodder for their donkeys. He was responsible for their feeding and lodging, Asante (1999, p.25). According to Asante (1999, pp.21–22): The idea of stewardship has its grounding in the institution of slavery. In the institution of slavery, the master appointed a slave to administer its household which might include the teaching and disciplining of members of the household, especially to other slaves and children. Here stewardship means service of trust according to direction. It follows from the above that from the Biblical perspective, stewardship implies the function of delegated responsibility. The steward owes one’s authority to the master who has delegated to him the responsibility the household administration or management. The steward then is not the owner of that which he or she administers or disciplines. He or she as the servant of a master, who owes all that he or she manages, is accountable to the master. Stewardship then appoints to an accountable service. Within any church, attitudes to accountability and stewardship will be as varied as beliefs about God. Money, that constitutes the mission of the church, and how it is to be fulfilled, all have a bearing on attitudes to accounting, both in theory and practice (Irvine, 2005).
Internal control
In 1978, Cohen Commission (the Commission on Auditors’ Responsibilities) required that management should assess internal control systems. Internal control consists of all of the related methods and measures adopted within an organisation to: • Safeguard assets from employee theft, robbery, and unauthorised use. • Enhance the accuracy and reliability of its accounting records by reducing the risk of errors (unintentional mistakes) and irregularities (intentional mistakes and misrepresentations) in the accounting process. The Committee of Sponsoring Organizations (COSO, 1992) produced an integrated framework for internal control in 1992, defining internal control as: A process, effected by an entity’s board of directors, management and other personnel and designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Effectiveness and efficiency of operations., Reliability of financial reporting., Compliance with applicable laws and regulations One of the objectives of internal control system should be to prevent fraud, or at least reduce the risk of fraud, and to detect fraud in the event that it does occur. The goals for internal controls over cash receipts are, to protect all revenue, and to record all receipts.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine Christian stewardship and church management: Examining the effectiveness of internal control system in Christ Apostolic Church. Christ Apostolic Church, Lagos state form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a Christian stewardship and church management: Examining the effectiveness of internal control system in Christ Apostolic Church”. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing an Christian stewardship and church management: Examining the effectiveness of internal control system in Christ Apostolic Church”
Summary
This study was on Christian stewardship and church management: Examining the effectiveness of internal control system in Christ Apostolic Church”. Three objectives were raised which included: To examine the effect of control environment on the management of financial resources in Christ Apostolic church, to examine the effectiveness of control activities in the management of financial resources in Christ Apostolic church and to establish the effect of monitoring on the financial management of Christ Apostolic church. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Christ Apostolic church. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In conclusion, this study delved into the critical aspects of Christian stewardship and church management, specifically focusing on the effectiveness of the internal control system within the Christ Apostolic Church. The findings of this research shed light on the significance of a robust internal control system in ensuring transparency, accountability, and efficient resource management within the church.
The examination of the internal control system revealed its pivotal role in safeguarding the financial assets, maintaining integrity in financial reporting, and preventing fraudulent activities. The implementation of sound internal controls not only aligns with the principles of Christian stewardship but also fosters trust and confidence among the church members, donors, and other stakeholders.
The study also highlighted the challenges and areas for improvement within the internal control framework of the Christ Apostolic Church. Recommendations stemming from the research emphasize the need for continuous monitoring, periodic assessments, and the adoption of modern technological tools to enhance the overall effectiveness of the internal control system.
Ultimately, the insights gained from this study contribute to the broader discourse on Christian stewardship and church management, offering practical implications for clergy, church administrators, and policymakers. It is imperative for the Christ Apostolic Church and similar religious organizations to recognize the importance of a well-functioning internal control system in fulfilling their mission, maintaining financial integrity, and ensuring sustainable growth in the service of their congregation and the community at large.
Recommendation
- Conduct regular internal control audits to assess the effectiveness of the existing control measures. This process should include thorough reviews of financial transactions, adherence to policies, and identification of potential vulnerabilities.
- Invest in continuous training and capacity building programs for church staff involved in financial management. Equip them with the necessary skills and knowledge to understand and implement best practices in internal controls.
- Embrace modern technological solutions to streamline and automate financial processes. Implementing a reliable accounting software system can enhance accuracy, reduce the risk of errors, and provide real-time financial reporting.
- Ensure a clear segregation of duties within the church’s financial processes. This separation helps prevent fraud and errors by dividing responsibilities among different individuals, creating a system of checks and balances.
- Foster a culture of open communication and transparency within the church community. Regularly share financial updates, reports, and budgetary information with members to maintain trust and accountability.
References
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- Beal, J.P. and Cusack, B.A. (2008) Standard for Excellence Code for the Catholic Sector and Cannon Law [online] http://www.nlrcm.org (accessed 12 February 2012). Blackbaud (2011) Financial Management of Not-for-Profit Organisations [online] http://www.blackbaud.com (accessed 12 February 2012).
- Booth, P. (1993) ‘Accounting in churches: research framework and agenda’, Accounting, Auditing and Accountability Journal, Vol. 6, No. 4, pp.37–67.
- COSO (1992) The Committee of Sponsoring Organisation of the Treadway Commission, Internal Control-Integrated Framework 4, AICPA, New York. David, C. and Michael, P. (1998) ‘An insight into accountability and politics in universities: a case study’, Accounting, Auditing and Accountability Journal, Vol. 11, No. 5, pp.540–561.
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- Iannaccone, L.R. (1997) ‘Rational choice: framework for the scientific study of religion’, in Young, L.A. (Eds.): Rational Choice Theory and Religion, p.27, Routledge, New York. International Standard on Auditing 315 [online] http://www.ifac.org/…/files/downloads/a017-2010- iaasb-handbook-isa-315.pdf (accessed 13 June 2015).
- Irvine, H.J. (2005) ‘Balancing money and mission in a local church budget’, Accounting, Auditing and Accountability Journal, Vol. 18, No. 2, pp.211–287, Emerald [online] http://dx.doi.org/10.1108/09513570510588733 (accessed 12 February 2012).
