A REVIEW OF CHURCH ACCOUNTING POLICIES AND PRACTICES: TOWARDS SOUND FINANCIAL MANAGEMENT
The study primarily aimed to review the current accounting system of the United Methodist Churches of Quirino District, towards sound financial management. The quantitative-qualitative approach was employed in this study using a survey, which was corroborated by interviews and observation. A descriptive-evaluative research design was the main instrument in data gathering. Frequency and percent distribution, ranking, and weighted mean were employed as statistical tools. Findings of the study reveal that the respondents’ extent of practice of the Church’s accounting policies and practices in terms of budgeting, record keeping and reporting, and cash receipts management was rated moderately practiced. However, in terms of cash disbursement management, and auditing, they were slightly practiced. The issues or challenges of the Church on the implementation of church accounting policies and practices are transition from manual accounting to semi-computerized or computer-aided accounting, unsystematic accounting process; inaccessibility of banks where excess funds could be deposited; treasurers are not bonded as they are not employees of the Church and are not receiving salaries; too much reliance, trust and confidence to the Church workers and officials; and custom-fit internal controls of the Church which are not written and updated. Recommendations to address those challenges include considering adopting a semi-computerized or computer-aided accounting system; more training and seminars for the Church finance secretary and treasurer to hone their accounting skills; considering cooperatives and other financial institutions performing banking functions as an alternative in case of inaccessibility of banks; better implementation of policies on segregation of duties and in the use of invoice or voucher system; and the creation of accounting and finance operations manual.
Accounting for Not-for-profit Organization, Church Accounting, Budgeting, Record Keeping and Reporting, Cash Receipts Management, Cash Disbursements Management, Auditing