CFAA Forum Explores Financial Accountability In Faith-Based Organizations


Thursday, November 19, 2020 / 9.00 AM / Ayomide Oguntoye for WebTV /Header Image Credit: WebTV

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Faith-Based Organizations (FBOs), though non-governmental and non-profit making, must be accountable to its members as well as the government. This was one of the key resolutions decided on a recent Christian Financial Accountability Association (CFAA) webinar.

The webinar which had as its theme "creating an enabling environment for financial accountability" considered standards for proper governance and ways on improving transparency within the FBOs.

At the event, Mr. Yinka Ogunnubi, Group Treasury Manager CFAO group, in his outlook on what financial accountability means said that it is the show of responsibility for the way money is used and managed.

According to him it also requires accurate and complete records of all financial transactions, adequate and transparent reporting of results and the disclosure of all relevant information regarding the organization's financial dealings.

He added that it is important that FBOs are accountable to its members, donors, leaders as well as the state and the federal tax authorities.

According to him, "Section 593 of CAMA 1990 requires that where contributions are collected, financial statements must be kept and audited. Therefore, financial accountability is important because it is required by the law".

He further mentioned that being financially accountable, helps the leadership of the organization to know and understand their financial status.

He said that the congregations deserve to know how their contributions are being spent.

Speaking on the principles that should guide the governance of Faith-Based Organizations, he noted that there should be the appointment of a Board of Trustees to govern and manage the affairs of the FBOs as well as the preparation of their constitution and the need to be registered with the Corporate Affairs Commission (CAC).

He stressed that the members of the BOT should be professionals by all standards and be responsible for directing the affairs of the organizations, delivering the objectives for which it was formed.

"The BOT should also be saddled with the responsibilities of establishing the organization's core purpose, ensuring compliance with the policies, planning, budgeting and pushing the best interest of the stakeholders," he said.

Also speaking at the event, Mrs. Margaret Baale, Managing Partner, JPC Consulting, stressed the need for control in creating an enabling environment for financial accountability. She mentioned that control is one of the four management functions and it safeguards against the misuse of resources and also facilitates actions in an organization. She also noted that control measures help ensure effectiveness and conformity in practice.

She raised the following key practices for proper accounting in Faith-Based Organizations, which include;

  1. Keeping proper records of every transaction
  2. Having files for all important documents
  3. Implementing policies and procedures
  4. Establishing distinct approval levels
  5. Paying of taxes and
  6. Making use of accounting software such as quickbooks for not-for-profit, Microsoft office excel etc.

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