Financial Management of Churches in Ghana: A Case Study of Legon Interdenominational Church

Abstract

light of the financial mismanagement issues of misconduct arising in recent times. It focuses on the cash management, investment management and internal control and accountability mechanisms of the church as they present a more reflective depiction of the entire system. It was a qualitative study that employed the use of interview, observation and document reviews as tools to appraise the system of the church. McKinsey’s 7S model was used to analyse LIC as an organization and thematic analysis was used in the analysis of the data in order to attain a detailed understanding of each component in the system. Data validity, reality and saturation are ensured to improve the quality of the findings. The strengths of the church are evident in its formalized structure and procedures. The crystallized processes, professionally trained staff and volunteers, a corporate governance system (COE) who guide and monitor all activities, a good records-keeping culture and a good brand name with regards to its integrity in all of its dealings strengthen the framework of the church. However, they face a few weaknesses; the lack of a functional manual and the nature of appointment unto the COE. There also seems to be an information gap where some significant is unknown to key personnel due to time lapse. The church is also presented with opportunities in light of this global and technological age that yields resources that would support a financial system to be as firm and transparent as possible. . For instance, the use of cloud servers and other technological advancements, stable cash flows and little intervention from political and other regulatory authorities. The main threats are the political and economic variables that could affect operations or standards. The study proposes a review of the management policy of the church as it is out-of-date. The basis of selection unto the main church board should also be reviewed to accommodate the constant presence of a financial management professional. They are also encouraged to continue investing in the resources that they currently possess such as technology, skilled staff, among others so as to maintain a robust system.