This study examines the evaluation of designing an effective accounting system for non-profit making organization in Nigeria. The objective of this study is to find out if organization has a proper accounting and internal control system and also to find out if the members of the non-profit making organization are being exploited by the administrators. The data for this study are collected through questionnaire and personal interview. However, the questionnaire forms the major instrument of data collection. The simple random sampling method is used to select the respondents of the study. It was found out that organization structure of the association impose accounting leaders and does not give them enough liberty. The study concludes that account and financial statement of the organization are subject to both internal and external auditing. It was recommended among others that comprehensive budget should be drawn up and as much as possible it should be made for revision if necessary.
TABLE OF CONTENTS
Table of Contents
Chapter One: Introduction
1.1 Background to the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Statement of Hypothesis(es)
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitations of the Study
1.9 Definition of terms
Chapter Two: Review of Related Literature
2.2 Who needs Accounting?
2.3 Activities of Non-Profit Making Organization
2.5 Objective of Financial Management
2.6 Resource Management
2.7 Accounting Systems and Records
2.8 Problem of Accounting in Non-Profit Organization
2.9 Internal Control
2.10 Essentials of Effective Internal Control
2.11 Budget and Budgetary Control
2.12 Need for Organization Audit
2.13 SAS/IAS Provision in Respect to Accounting
Chapter Three: Research Method and Design
3.2 Research Design
3.3 Description of Population of the Study
3.4 Sample Size
3.5 Sampling Techniques
3.6 Sources of Data Collection
3.7 Methods of Data Presentation
3.8 Methods of Data Analysis
Chapter Four: Data Presentation, Analysis and Interpretation
4.2 Presentation of Data
4.3 Data Analysis
4.4 Hypothesis Testing
Chapter Five: Summary of Findings, Conclusion and Recommendations
5.2 Summary of Findings
Background to the Study
The word non-profit making organizations explained that the organizations are not established for the purpose of making profits. Non-profit making organizations such as clubs, societies, charitable organizations and social organizations are established basically for the purpose of promoting the welfare and activities of the members and not for profit motive unlike business enterprise.
This organization normally has founders, presidents, some executives and members. The formation of the non-profit making organization cannot be traced to a particular age. Most non0profit making organizations has in their deed the right to partake in little business to maintain their organization and meet up with its expenses.
Statement of Problem
The non-profit making organization is expected to be an exemplary means of exhibiting the love for humanity, as a result of which we know, if this associations reach out to research the problem affecting the common man, the needy and less privileged in the society who are helpless, from the bunk of revenue collected as donation, fines, subscription sold etc.
Objective of the Study
The main objectives of this research are:
Statement of Hypotheses
The study provides the following as the research questions:
Ho: The members of the non-profit making organization are not of the opinion that they are being exploited by the administrators.
Hi: The members of the non-profit making organization are of the opinion that they are being exploited by the administrators.
Ho: The organization does have a proper accounting and internal control system.
Hi: The organization has a proper accounting and internal control system.
Ho: The increase in the financial position of the body is not related to increase in membership.
Hi: The increase in the financial position of the body is related to increase in membership.
Significance of the Study
It is hoped that this study will be of benefit to the government, members and the management of the organization in knowing and arising to their responsibilities in Nigeria.
Scope of the Study
This study examines an evaluation of designing an effective accounting system for non-profit making organization in Nigeria. This study will be centred on investigating the designed accounting system set up for the origination as well as what the members feel or think about pertaining the management of the organization funds in Nigeria between the period of 2008-2013.
For the course of this study, the researcher used a sample size of 40 for effective survey.
During the process and course of this research, a number of problems were encountered which include the following;
For the purpose of clarity and easy understanding, the following terms are defined in the content of their usage in this study.
Organization: This is a body or a firm established for a purpose or object comprising of materials, structures and humans.
President: In some of the non-profit making organizations there is the post for a head or leader called the president to give directives to the operation of the organization.
Executive: These are persons appointed to assist the president in the running of the organization.
Subvention: This is a source of income to the organization. It is money granted to it to support its activities.
Fines: These are money charged on the members as a punishment to their misdeed.
Income and Expenditure: The method of designing accounting system for the organization which is non-profit oriented but has income and incurs costs as well as having assets and liabilities.
Internal Control: This is the system of control both financial and otherwise designed to regulate the efficiency and effectiveness of the organization. Therefore the designed accounting system and the auditing is part of the control system.
Audit: This is an examination of the underlying accounting records so as to form an opinion as to the fair and have position of the designed accounting system and accounting results on information. For the purpose of members it is necessary whether profit or non-profit organization.