Christian Stewardship and Church Management: Examining the Effectiveness of Internal Control Systems in Winners Chapel
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 Winners Chapel.
The following are the specific objectives of the study:
- To examine the effect of control environment on the management of financial resources in Winners Chapel.
- To examine the effectiveness of control activities in the management of financial resources in Winners Chapel.
- To establish the effect of monitoring on the financial management of Winners Chapel.
CHAPTER TWO
LITERATURE REVIEW
Conceptual review
The Church as an Organization
The church is composed of a body of Christian believers, sharing the same creed and acknowledging the same ecclesiastical authority. Persons join churches for various reasons, however, generally, they do so to practice their faith and share it with others to convert them into their fold. The church may therefore be said to be composed of a group of persons joined together for some common interest and hence classified as an organization.
The church, like all organizations are created with a vision which is operationalized through a mission to attain its purpose. Since organizations comprise individuals with varied aspirations and purposes joining the organization, the persons involved need to share and have a common understanding of the vision and how to operationalize it through a common shared mission. In order to remain focused to maintain its existence and achieve its purpose, it must consciously develop a strategy towards achieving its vision. Also, as an organization grows, a structure is required for assigned roles, responsibilities and relationships required to operate the shared strategy. Staff is required with requisite skills and competencies to make the system of procedures, processes required work. Appropriate leadership with leadership style and skills is required to motivate staff and facilitate realization of strategic goals is necessary. Shared values are the values, standards, vision and corporate culture. As an organization, the church needs to plan its programmes and activities, organize requisite resources for implementation of its activities, monitor and control how the activities are undertaken and finances managed towards goal realization. Since the internal and external environments must interact for an organization to achieve its purpose, all stakeholders need to share a common understanding of the purpose and how it is operationalized to enable them play their roles and responsibilities efficiently and effectively, particularly, in resource mobilization and use (Shepherd & Yeo, 2005).
CHAPTER THREE
METHODOLOGY
Introduction
The chapter describes and explains the methods that were used in the collection, managing and analyzing of data. It consists of the research design, study population, sample size and selection, sampling techniques and procedures. It also describes the data collection methods and instruments, how the validity and reliability of the research instruments were tested and how variables were measured.
Research Design
The research design for this study was a cross-sectional survey. According to Mugenda and Mugenda (1999), a cross-sectional research design involves subjects being assessed at a single time. It is fast and can study a large number of subjects at little cost or effort. The changes in the financial management style in the service industry calls for such a study if we are to compare with what is happening elsewhere.
The study triangulated both qualitative and quantitative methods of data collection and analysis. Qualitative data analysis was used to test opinions and attitudes towards financial management. Also used were quantitative methods since the study involved extensive use of descriptive statistics presented in form of mainly the mean, percentages, frequencies and standard deviation scores. Mukiibi (2004) emphasizes that although a particular research study may be predominant of one research design, a mixture of the two methods (triangulation) is preferred and this research takes that line.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Introduction
This chapter presents and discusses the analysis and interpretation of the findings. The findings under the main objectives were discussed. These included; background information of respondents and the empirical Findings assessment of the study objectives.
Response Rate
The researcher issued out a total number of one hundred five (105) questionnaires to the respondents, the entire number was returned and fully completed. Thus the findings can be generalized to the entire population.
CHAPTER FIVE
SUMMARY, DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter presents the summary of the study, discussion of the findings that were carried out based on objective by objective from which conclusions were drawn and
recommendations made. Further still, this chapter presents the limitations encountered and proposed areas of further study.
Summary of the Study
Control environment and management of Financial resources
Findings from the previous chapter four revealed that there was a positive (.396**) and statistically significant (p<0.05, .000) relationship between control environments and financial management. Additionally, control environments had a fifteen percent (15%) variation or effect on financial management while hypothesis testing revealed that control environment had a significant effect in the management financial resources in Winners Chapel.
Control activities and Management of Financial resources
Findings showed that there was a positive (.304**) and statistically significant (p<0.05, .002) relationship between control activities and financial management. Control activities had an eight percent (8%) variation or effect on financial management while hypothesis testing revealed that control activities had significant positive relationship on financial management.
Monitoring and Financial management of resources
For objective three, results revealed a positive (.330**) and statistically significant
(p<0.05,.001) relationship between monitoring and financial management; monitoring had a ten percent (10%) variation on financial management while hypothesis testing revealed that monitoring had significant positive relationship on financial management.
Discussion of Findings
Control environment and Management of Financial resources
The study found out that Control Environment is well streamlined and the leaders committed to the controls of the Winners Chapel and the findings as highlighted from the previous chapter indicate or reveal a positive (.396**) and statistically significant (.000 < 0.05 at 95% confidence level) relationship between control environment and financial management. The results meant that, as long as staff exhibit technical competence and assignments of authority as well as responsibilities are well understood and defined, there was likelihood that good financial management would be exercised and realized.
Further still, the researcher used a regression technique to determine the percentage effect control environment had on financial management and the results that emerged show a 15% effect with the remaining 85% attributed to other factors. As far as hypothesis testing was concerned, the null hypothesis (H0) was rejected and the alternate (H1) that “control environment has significant positive effect on the financial management” was accepted.
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