THE IMPACT OF FINANCIAL MANAGEMENT PRACTICES ON THE PERFORMANCE OF METHODIST CHURCH GHANA, KUMASI DIOCESE

Abstract

ABSTRACT Even faith-based organisations now need to demonstrate transparency and accountability in the management of resources entrusted to their care by members due to the fast-paced nature of the modern world and the influx of high-quality information that defines and informs people's critical attitude and approach to life. The Kumasi Diocese was used for this study to evaluate the Methodist Church of Ghana's financial management practices and how it affects their financial performance. The Methodology used is a descriptive research approach. The target population of this research are 10 selected churches in Kumasi, Ghana with 100 respondents. The study targets the pastor, steward in charge of finance, the accountant or treasurer and two members of the finance committee of these churches. Purposive sampling technique was used to select respondents who are actively involved in the financial management. Questionnaires were used as the main tools of data collection, where primary data was collected. The findings revealed that the Methodist Church Ghana have a robust financial management practice system in place to prevent mismanagement and misuse of church funds. The Church's Accounting Policies and Procedures Manual contains instructions that guarantee best practises in stewardship, accountability, consistency, and transparency. However, there were a few challenges which they encounter with the implementation of the financial management practices. The report recommends proper and regular financial training led by qualified resource persons to help leaders comprehend church regulations and instil in them appropriate current financial management abilities. Church leaders should also assist churches who lack the necessary staff, like as accountants, to oversee their financial responsibilities in the recording and production of their accounts. This study also suggests that the church maintain consistent financial management policies and also make sure they are well implemented.