The Effect of Financial Management Practices on Church Funds Stewardship.
Suge, Betty Chemutai
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The purpose of the study was to determine the effect of financial management practices on church funds stewardship. The objectives of the study were to establish the cash management practices by churches and its effects on investment of church funds, find out how financial planning practices enhance balance between outflow and inflow of church funds and to explore !he effect of financial analysis practices on sound investment decisions of church funds ..The study adopted a descriptive research design in which the church board were selected purposively. The study used questionnaires to collect data. Prior to data collection, the researcher conducted a pilot study to ascertain the suitability of the instruments. This was done through testing the instruments for validity and reliability. The researcher personally a..dministered the questionnaire. Quantitative data was analyzed using quantitative statistics such as percentages and frequencies. Tables. and pie charts were used where necessary. Qualitative data was analyzed using qualitative statistics (SPSS). The study established that the churches receipted all the cash they received. Most of the church organizations recorded their expenses. The study also established that most of the churches recorded daily-transactions on journals. The study however revealed that -, most of the respondents did not monitor-flow by daily reporting cash balance in the bank. , , The study established that the cash man.agement practices influenced the long term and short term investment of funds. The study established that most organizations practiced budgeting which also includes long-term budgeting. The study findings revealed that financial planning enhanced the balance between income and expenditure of the church fund. The study established that most organizations practiced financial analysis which were in the forms of financial reporting, production of various reports such as balance sheet and ledgers. The findings of the study revealed that financial analysis practices enhanced sound investment decisions by the organizations. The study recommended that more and more churches should adopt cash management practices, churches should adopt financial planning as a strategy to manage the church funds and that church organizations should adopt financial analysis in making their investment decisions.