determinants of financial resource management system in the Africa gospel church

Abstract

This study evaluated determinants of financial resource management system in the Africa Gospel Church, Siongiroi Region, in Bomet County. The author believed that the nature of management given to available organizational resources contributes to either success or failure in carrying out its mission. The general guiding objective for the study was to evaluate determinants of financial resource management system in the local church. Specific objectives were; to establish the influence of personnel proficiency skills, to examine the influence of budgeting and financial controls, to investigate the influence of the church leadership roles on financial resource management system, and to determine the status level of the local church on financial resource management system. The budgetary theory, financial control theory, and the agency theory provided theoretical base for the study. The study adopted descriptive survey design. The study targeted a population of one hundred and eighteen (118) people that comprised 54 District Leaders, 54 treasurers, 9 Area Directors and one Regional Director. Population sample size for the study was 36 respondents where simple random sampling method was applied to identify respondents. Purposive sampling was applicable for the Regional Director only. Data collection instruments were structured questionnaires. Field work authorization documents comprising of introduction letters, approval and permit were sought from all the relevant authorities (AIU, IERB, NACOSTI). Collected data were processed, analyzed and stored electronically. Descriptive and inferential statistics methods were used to analyze data and information generated was tabulated by use of frequencies, mean and percentages. The results were presented using both statistical and graphical techniques. The study findings revealed that the church had a wealth of experienced personnel in the ministry where majority of them were volunteers in ministry. The respondents exceeding 50% did not have the required technical skills necessary for financial resource management. The church carried out financial resource management activities like budgeting, goals setting and evaluation, documenting, auditing and reporting though not to recommended standard. The church’s status level of financial resource management system, on a percentage scale, stood at around 50%. The study recommended that church personnel be given in-service training on basic technical skills on management of financial resources in the church. The church to employ full-time service workforce. The church to utilize experts’ services for objectivity, building trust, quality results and to improve performance standards on financial activities like auditing. This study informs the church leadership on aspects of financial resource management. It provides information for further research work. If recommendations are adopted, they will facilitate financial resource management system function, sustainability of resources, preparations of strategic plans, preparation of financial policies and promote general growth of the local church.