The Role of Financial Policies and Procedures in the Management of Church Funds. A Case Study of North Ankole Diocese

Abstract

In financial management not only must resources be acquired and allocated within the organization for the day-to-day use, they must also be efficiently and prudently used. The church as a nonprofit organization must not only ensure that this happens but it should also endeavor to prove that it happens. In this study financial management activities are supported by policies and procedures that, when carried out properly and in a timely manner, manage or reduce risks. Financial management is that function in an organization which is concerned with raising and allocation of resources in order to attain its goals. Financial management systems are in place as provided by the provincial financial and procedure manual 2011; however, funding is not sufficient and not through rightful required procedures. Planning and budgeting processes have got gaps and financial reports are not provided about the usage of financial resources by the concerned leaders. According to Smith (2019), financial policies are essential for churches to maintain ethical standards and comply with legal requirements. They provide a framework for how funds should be collected, documented and disbursed thereby preventing misuse or mishandling of donations. For instance, policies may outline procedures for conducting audits, segregating financial duties and ensuring that funds are used for their intended purposes such as ministry expenses or community outreach programs.