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Finance | Faith & Religion

CFAA Forum Explores Financial Accountability In Faith-Based Organizations

Nov 19, 2020   •   by   •   Source: Proshare   •   eye-icon 1046 views

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


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


Thewebinar which had as its theme "creating an enabling environment for financialaccountability" considered standards for proper governance and ways onimproving transparency within the FBOs.


Atthe event, Mr. Yinka Ogunnubi, Group Treasury Manager CFAO group, in hisoutlook on what financial accountability means said that it is the show ofresponsibility for the way money is used and managed.


Accordingto him it also requires accurate and complete records of all financialtransactions, adequate and transparent reporting of results and the disclosureof all relevant information regarding the organization's financial dealings.


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


Accordingto him, "Section 593 of CAMA 1990 requires that where contributions arecollected, financial statements must be kept and audited. Therefore, financialaccountability is important because it is required by the law".


Hefurther mentioned that being financially accountable, helps the leadership ofthe organization to know and understand their financial status.


Hesaid that the congregations deserve to know how their contributions are beingspent.


Speakingon the principles that should guide the governance of Faith-BasedOrganizations, he noted that there should be the appointment of a Board ofTrustees to govern and manage the affairs of the FBOs as well as thepreparation of their constitution and the need to be registered with theCorporate Affairs Commission (CAC).


Hestressed that the members of the BOT should be professionals by all standardsand be responsible for directing the affairs of the organizations, deliveringthe objectives for which it was formed.


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


Alsospeaking at the event, Mrs. Margaret Baale, Managing Partner, JPC Consulting,stressed the need for control in creating an enabling environment for financialaccountability. She mentioned that control is one of the four managementfunctions and it safeguards against the misuse of resources and alsofacilitates actions in an organization. She also noted that control measureshelp ensure effectiveness and conformity in practice.


Sheraised the following key practices for proper accounting in Faith-BasedOrganizations, 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 asquickbooks for not-for-profit, Microsoft office excel etc.


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