Internal control and financial management in the treasury of a Caribbean religious organization
Barra lateral del artículo
Contenido principal del artículo
Resumen
This study investigates the role of internal control in predicting financial management within the Treasury Department of a Religious Organization in the Caribbean, aiming to address financial mismanagement issues prevalent in faith-based organizations. Utilizing a non-probabilistic quota sampling method, 733 church treasurers were surveyed, with 147 treasurers forming the final sample, ensuring demographic diversity. Data collection employed a reliable questionnaire adapted from prior research. Results from simple linear regression analysis revealed that internal control significantly predicts financial management, explaining 69.2% of the variance. The findings underscore the importance of robust internal controls in enhancing financial management practices within religious organizations. Strengthening internal control mechanisms is crucial for fostering credibility and member loyalty, thereby promoting financial and spiritual well-being in faith-based institutions.
Descargas
Detalles del artículo
Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial-SinDerivadas 4.0.
Citas
Alim, A. P., Abdullah, S. R. 2010. Audit Pengurusan Masjid: Kajian di Daerah Pasir Puteh, Kelantan. Universiti Teknologi Malaysia Institutional Repository: 1-7
Amaka, C. P. (2012). The impact of internal control system on the financial management of an organization (a case study of the Nigeria bottling company plc, Enugu) (Doctoral dissertation, Master’s Thesis). Faculty of Management and Social Sciences Caritas University.
Bowrin, A. R. (2004). Internal control in Trinidad and Tobago religious organizations. Accounting, Auditing & Accountability Journal, 17(1), 121–152. doi:10.1108/09513570410525238.
Brigham, E. & Houston, J. (2011). Fundamentals of Financial Management: Concise Edition. (7th ed.). USA: Cengage Learning.
Cuomo, A. (2005). Internal Controls and Financial Accountability for Not-for-Profit Boards. Retrieved from http://www.oag.state.ny.us/charities/html.
Eko, S., and Hariyanto, E. (2011). Relationship between internal control, internal audit, and organization commitment with good governance: Indonesian Case.
Fairfax County of Virginia (2008). Ten Principles of sound financial management. Retrieved from http://www.fairfaxcounty.gov/dmb/10_principles_sound_financial_management.htm
Gao, J. (2019, November). A research on the correlation between internal control quality and financial performance. In IOP Conference Series: Materials Science and Engineering (Vol. 688, No. 5, p. 055043). IOP Publishing.
Gonzalez Tapia, K. F. (2021). Control interno y su relación con el desempeño de los tesoreros, en las iglesias adventistas de la Asociación del Caribe Colombiano, Colombia, 2021.
Greenberg, J. (2018). Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts. In occupational crime (pp. 99-106). Routledge.
Hair, J., Anderson, R., Tatham, R. y Black, W. (2007). Análisis multivariante (5ª ed.). Madrid: Prentice Hall Iberia.
Hudson, J. W. (1984). Internal controls in the area of finance for local churches.
Ibrahim, S., Diibuzie, G., & Abubakari, M. (2017). The Impact of Internal Control Systems on Financial Performance: The Case of Health Institutions in Upper West Region of Ghana. International Journal of Academic Research in Business and Social Sciences, 7(4), 684-696.
Iradukunda, P., & Kamande, M. (2022). Internal Control System and Financial Performance in Banking Industry: A case of Guaranty Trust Bank-Rwanda. International Journal of Scientific and Research Publications (IJSRP), 12(11), 13108. DOI: http://dx.doi.org/10.29322/IJSRP.12.11.2022.p13108.
Miiro, E. (2013). Internal controls and financial management in faith-based organizations: A case study of Seventh-Day Adventists Church Central Uganda Conference (Doctoral dissertation, Uganda Management Institute).
Mokuo, O. (2009). Sustainability of Church managed projects: A case of Kenya Evangelical Lutheran Church in Nairobi. Journal of Research Abstracts 3.
Mohamed, I. S., Ab Aziz, N. H., Masrek, M. N., & Daud, N. M. (2014). Mosque fund management: issues on accountability and internal controls. Procedia-Social and Behavioral Sciences, 145, 189-194.
Nalle, H. M., Pradnyani, N. L. P. S. P., & Wasita, P. A. A. (2023). Accountability and Internal Control of Religious Organizations (Study on GKPB Immanuel Tabanan). International Journal of Pertapsi, 1(1), 21-31.
Njeri, C. K. (2014). Effect of Internal Controls on the Financial Performance of Manufacturing Firms in Kenya. Unpublished Master’s Dissertation, University of Nairobi.
Ofori, W. (2011). Effectiveness of Internal Controls: A Perception or Reality? The Evidence of Ghana Post Company Limited in Ashanti Region. A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of. Retrieved from http://dspace.knust.edu.gh/bitstream/123456789/4435/1/WILLIAM%20OFORI%20FINAL%20THESIS%202011.pdf
Oyetunji, O. T., Lawal, B. A., Yinus, S. O., Akodu, A. A., & Lawal, B. O. (2021). Internal control practices and financial management of local governments: a quantitative framework approach. African Multidisciplinary Journal of Development, 10(2), 42-54.
Sanusi, Z. M., Johari, R. J., Said, J., & Iskandar, T. (2015). The Effects of Internal Control System, Financial Management and Accountability of NPOs: The Perspective of Mosques in Malaysia. Procedia Economics and Finance, 28, 156-162.
Steinhoff, J. C. (2005). Financial Management: Effective Internal Control is Key to Accountability. United States Government Accountability Office.
Sukenti, S. (2023). Financial Management Concepts: A Review. Journal of Contemporary Administration and Management (ADMAN), 1(1), 13-16.
Sulaiman, M. (2007). The internal control procedures of mosques in Malaysia. Revista Universo Contábil, 3(2), 101-115.
Tanui, P. J., Omare, D., & Bitange, J. B. (2016). Internal Controls system for financial management in the church: a case of protestant churches in Eldoret municipality, Kenya. European Journal of Accounting, Auditing, and Finance Research, 4(6), 29-46.
Wakiriba, J. W., Ngahu, S., & Wagoki, J. (2014). Effects of financial controls on financial management in Kenya’s public sector: A case of National Government departments in Mirangine Sub-County, Nyandarua County. Journal of Business and Management, 16(10), 105-115.
Widyaningsih, A. (2015). The influence of the internal control system on the financial accountability of elementary schools in Bandung, Indonesia. Research Journal of Finance and Accounting, 6(24), 89-96.