The Correlation of Financial Management Practices and Controlling Mechanisms for Financial Management Challenges and Issues The Case of Franciscan Missionaries of Mary Congregation
DOI:
https://doi.org/10.21512/becossjournal.v5i2.9780Keywords:
Financial Management, Controlling Mechanisms, Financial Management Challenges, Sustainability, Growth, OrganizationAbstract
The study analyzed financial management practices and controlling mechanisms for financial management challenges and issues in religious congregations, specifically the Franciscan Missionaries of Mary Congregation. The study was based on a questionnaire survey sent to 305 respondents among the religious sisters. Weighted mean and the Spearman rho coefficient values were applied in the statistical processing of the data. The results showed a significant positive relationship between financial management practices and the controlling mechanisms for financial management challenges and issues, suggesting that a lack of control mechanisms could lead to the possibility of fraud. The study suggests that good financial management practices impact management resources and decision-making. The study highlights the importance of financial management practices for non-profit organizations, as they can be prone to financial challenges and issues due to lack of resources or mismanagement and its effectiveness is crucial for the sustainability, growth, and impact of the organization.
Plum Analytics
References
Arantes do Amaral J. A., L. M. Petroni, and A. Hess (2016) Fundraising Strategies Developed by MBA Students in project-based Learning Courses. Journal of Problem Learning in Higher Education (4)1 pp91-99, http://dx.doi.org/10.5278/ojs.jpblhe.v0i0.1135
Aranya, N. 1990. Budget Instrumentality, Participation, and Organizational Effectiveness.Journal of Management Accounting Research, 67-77
Ahortor, Christian (2009). Financial Management Issues in Church Organizations. Glisten Strategic Solutions. 1-10
Allmond, J. (2021, January 3). 5 tips for managing a church budget shortfall. Lifeway Research. Retrieved October 13, 2022, from https://research.lifeway.com/2019/10/29/5-tips-for-managing-a-church-budget-shortfall/
Abdul Wahab, A. (2008). Financial Management of Mosques in Kota Setar District: Issues and Challenges.College of Business, Universiti Utara Malaysia
Baharin. (2011). The Impact of Management Practices and Employee Involvement on Organization Financial Performance: The Cases of GLCs in Malaysia. Annual International Conference on Human Resource Management and Professional Development for the Digital Age.
Barry, L. A. (2021). Internal Control of Roman Catholic Parishes. Baguio City, Philippines: Saint Louis University School of Advanced Studies.
Beale, B. C. S. (2018, June 7). Fruit Hill Day Services for the Elderly announces closure. Rhode Island Catholic. https://thericatholic.com/stories/fruit-hill-day-services-for-the-elderly-announces-closure,9927
Beutler, I. F., and Mason, J. W. (1987). Family cash-flow budgeting. Home Economics Journal, 16(1), 3-12.
Brigham, E. F. & Ehrhardt, M. C. (2004). Financial Management: Theory and Practice, 11th Edition, South-Western College Publisher, New york.
Brownell, P., Dunk, A. S. 1991. Task Uncertainty and Its Interaction With Budgetary Participation and Budget Emphasis: Some Methodological Issues and Empirical Investigation. Accounting, Organizations and Society,16 (8): 693-703.
Carol, M. O. (2001). Non-profit donations shrink; with tech stocks down, times may be tougher. Retrieved from http://community.seattletimes.nwsource.com
Cardinal Hayes Home, Millbrook, New York https://cardinalhayeshome.org/
Chester, M.C., R.G. Laverdiere, and A.D. Unseth (2017). "Using an Internal Control Indexto Evaluate the Internal Control Procedures of Churches", Journal of Ministry Marketing and Management, Vol. 5, No. 1, pp. 13-21.
Chowa, T., Kaira, B., & Njobvu E.N. (2020). Financial accountability and internal controls in religious organizations: A case study of Holy Spirit Catholic Parish. The International Journal of Business Management and Technology, 4(3), 248-257 Retrieved: http://www.theijbmt.com/archive/0933/1689470847.pdf
Constitutions of the Franciscan Missionaries of Mary (Arts. 137,165,166,193 and 195)
COSO (1992) The Committee of Sponsoring of the Treadway Commission, Internal Control-Integrated Framework 4, AICPA, New York.
Crumroy, O., Kukawka, S., & Witman, F. (1998). Church administration and finance manual: Resources for leading the local church. Harrisburg, PA: Morehouse Publishing.
Davis, E. P. (1987). Patterns of family financial management. Papers of the Western Region Home Management Family Economics Educators, 2, 108-112.
Davis, E. P. (1988). Who prepares a balance sheet? An exploratory analysis. Papers of the Western Region Home Management Family Economics Educators, 3, 47-49.
Deakin, N. (1995). The perils of partnership: the voluntary sector and the state. An Introduction to the Voluntary Sector.
DePaul University. (1998, January 30). DePaul Studies Reveal Challenges In Financial Management And Fund Raising For Small Religious Non-Profits. Newswise. https://www.newswise.com/articles/depaul-studies-reveal-challenges-in-financial-management-and-fund-raising-for-small-religious-non-profits
Derby, R. (2015). Financial management in selected charismatic churches in the Kumasi metropolis (Master’s thesis). Retrieved from http://www.knust.edu.gh
Edwards, R. K. (1990). "Financial Accountability in Religious Organizations", National Public Accountant, Vol. 35, No. 6, pp. 16-17.
Ekhomu, G. O. (2015). The impact of financial literacy competencies in faith-based organizations: A multiple case study of independent churches in mid-western USA. ProQuest Dissertations & Theses Global. Retrieved:http://ezproxy.liberty.edu:2048/login?url=http://search.proquest.com/docview/1753915442?accountid=12085
Enofe, A., and P. Amaria. 2011. The role of the church denomination in financial accountability among religious organizations. International journal of Business, Accounting and Finance 5 (2): 87-104
Ezebunanwa, B. (2004). Implementation of the control policies issued by Anambra State Education Commission by principals. Unpublished Master's Degree thesis submitted to the Department of Educational Foundations, Faculty of Education, Nnamdi Azikiwe University Awka.
Fabozzi, F.J. and Peterson, P.P. (2003). Financial Management and Analysis (2nd eds.). John Wiley & Sons Inc., New Jersey, Hoboken:
Finance report 2022 FRANCISCAN MISSIONARIES OF MARY General Chapter
Fincham, J. (2008). Response Rates and Responsiveness for Surveys, Standards, and the Journal. American Journal of Pharmaceutical Education, 72 (2) Article 43.
Florer-Bixler, M. (2021, November 22). My church is a beautiful waste of money. Faith and Leadership. https://faithandleadership.com/my-church-beautiful-waste-money
Franciscan Missionaries of Mary: for the mission and its Risks 1877-1984
Franciscan Missionaries of Mary Provincial Bursar’s Manual Book
General Superior report 2014 FRANCISCAN MISSIONARIES OF MARY. On the Journey…"continuing the mission of Jesus in minority and solidarity".
Gugerty, M. K. (2009). Signaling virtue: Voluntary accountability programs among nonprofit organizations. Policy Sciences, 42, 243-273.
Gustavsson, J. (2000). Institutional activities in international higher education: An assessment of advancement activities used at selected small church-related colleges and universities. (Doctoral Dissertation, Andrews University, 2000). Dissertation Abstracts International, 61, 07A, 2619.
Henrickson, K.P. (2006). Financial Management in the Church. Retrieved March, 18 2015 from http://www.kphenrickson/interncontr.htm
Henrickson, P. (2012). Financial Management in the Church: Internal Control/ Financial Oversight. Retrieved March, 18 2015 from http://www.churchfinancialmanagement.com_Published by European Centre for Research Training and Development UK (www.eajournals.org) http://www.portal.state.pa.us
Hudson, J.W. (1984). Internal Controls in the Area of Finance for Local Churches. Retrieved: https://core.ac.uk/download/pdf/58821477.pdf
Irvine, H. (2005), "Balancing money and mission in a local church budget", Accounting, Auditing & Accountability Journal, Vol. 18 No. 2, pp. 211-237. https://doi.org/10.1108/09513570510588733
Isnugroho, Edy. 2012. Anggaran Rumah Tangga GKBI 2012. Bandung: GKBI.
Jain, P., Singh, S. and Yadav, S., 2013. Financial Management Practices: An Empirical Study of Indian Corporates.
Jamieson, J.T. and Jamieson, P.D. (2009). Ministry and Money: A practical guide for Pastors (1st eds.). West minister John Knox Press, Kentucky, Lousville:
Kawme Nkrumah University of Science and Technology, Retrieved from https://www.knust.edu.gh/about
Kilonzo Jennifer M, and Ouma Dennis (2015) Financial Management Practises on Growth of Small and Medium Enterprises: A case of Manufacturing Enterprises in Nairobi
Kimberlin, S., Schwartz, S., & Austin, M. (2011). Growth and Resilience of Pioneering Nonprofit Human Service Organizations: A Cross-Case Analysis of Organizational Histories. Journal of Evidence-Based Social Work, 8(1/2), 4–28. https://doi-org.i.ezproxy.nypl.org/10.1080/15433710903272820
Kluvers, R. (2001), “Budgeting in Catholic parishes: an exploratory study”, Financial Accountability & Management, Vol. 17, No. 1, pp. 41 - 58.
Kluvers, R. (2002), “Overcoming the Sacred and Secular Divide: An Analysis”. Unpublished paper.
Lawrence, R. (1991). Development officer’s perceptions of the characteristics of effective private fund-raising programs for protestant colleges. (Doctoral Dissertation, Oklahoma State University). Dissertation Abstracts International, 52, 09A, 3196.
Malagueno, R., C. Albrecht, C. Ainge, and N. Stephens. 2010. Accounting and corruption: A cross country analysis. Journal of Money Laundering Control 13 (4): 372-393
Matzka, E. (2021). A guide overcoming challenges in fundraising. Goodbox Website. Retrieved from: https://www.goodbox.com/2021/10/biggest-challenges-in-fundraising/
McBurney, D. & White, T. (2009). Research Methods. New York, NY: Cengage Learning.
McEldowney, J. E., T. L. Barton, and D. Ray (2016). "Look Out for Cletus Williams", CPA Journal, Vol. 63, No. 12, pp. 44-47. County, Kenya. IOSR Journal of Business and Management (IOSR-JBM) 17(8), PP 65-77
McGee S, Donoghue F. 2009. The conundrum of fundraising in non-profit organizations: a story from Ireland. Journal of Non-profit & Public Sector Marketing 21(4): 367–383
McKenna, J. S., and Nichols, S. Y. (1988). Planning for retirement security: What helps or hinders women in the middle years? Home Economics Research Journal, 17(2), 153-164.
Merceer University 2010: online. Retrieved on 11 June 2010 from www.merceruniversity.com
Muhunyo B.M. 2018. Effect of Internal Control Systems on Financial Performance of Public institutions of higher learning in Nairobi city county, Kenya
Nortey, R. E. G. I. N. A. (2019). Financial Management System of Churches: A Case Study of the Methodist Church Ghana, Tema Diocese (Doctoral dissertation, University of Ghana).
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Nussbaum , K.B., & Chang, H. (2013) The Quest for Diversity in Christian Higher Education: Building Institutional Governance Capacity, Christian Higher Education, 12:1-2, 5-19. DOI: 10.1080/15363759.2013.740383
Ocansey, T. F. (2022). CASH MANAGEMENT PRACTICES OF SOLE-OWNED CHURCHES IN GHANA.
Oluoch, J. O. (2016). The impact of cash management practices on performance of SMEs: A survey of SMEs in Eldoret Central Business District. Journal of Economics & Finance, 7(6), 01-07.
Ozotambgo, C, (2009). Financial record keeping in religious organization, a case of CatholicChurch in Enugu Diocese, University of Nigeria.
Oyekanmi, H, (2013). Ethical issues in fund raising and biblical response. Baptist College of Theology Lagos.
Pike, Richard (1986). A Longitudinal survey on capital budgeting practices. Journal of Business Finance & Accounting, 23, 1, (79-92).
Robert, H., & Victoria, V. F. V. (2004). Impacts of Best Management Practices on Farm Financial Performance. Virginia Polytechnic Institute and State University.
Schwartz, G .J. (1993). It’s time to get serious about the cycle of dependency in Africa. Evangelical Missions Quarterly 29. Retrieved March, 18 2015 from http://www.missionsmandate.org
Schwartz, S. L., & Austin, M. J. (2009). Implementing Performance Management Systems in Nonprofit Human Service Organizations: An Exploratory Study. School of Social Welfare, University of California, Berkeley.
Smith, M. (1993). Obtaining Foundation Support. In M. J. Worth (Ed.), Educational fundraising: Principles and practice. (pp. 191-199). Phoenix, AZ: Oryx Press
The Franciscan Missionaries of Mary | Rhode Island Catholic https://thericatholic.com/stories/the-franciscan-missionaries-of-mary,7615? September 17, 2015
Tom Corbett, G. (2006). The Solicitation of Funds for Charitable Purposes Act. Retrieved from http://www.portal.state.pa.us. 9 pages
Trustees Of The Franciscan Missionaries Of Mary ∙ charityguide.com.au. (n.d.). CHARITYGUIDE. Retrieved January 15, 2022, from https://www.charityguide.com.au/charity/51422745804/trustees-of-the-franciscan-missionaries-of-mary
Vagias, Wade M. (2006). Likert-type scale response anchors. Clemson International Institute for Tourism & Research Development, Department of Parks, Recreation and Tourism Management. Clemson University. https://mwcc.edu/wp-content/uploads/2020/09/Likert-Scale-Response-Options_MWCC.pdf . https://media.clemson.edu/cbshs/prtm/research/resources-for-research-page-2/Vagias-Likert-Type-Scale-Response-Anchors.pdf
Wood, L. I., & Wood, D. J. (2014). In God we trust: A case of church financial fraud. Journal of Business Cases and Applications, 11. Retrieved from http://www.aabri.com/jbca.html
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Business Economic, Communication, and Social Sciences (BECOSS) Journal
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
