Compulsory accounting for churches, mosques and foundations : Lighting

Religious faiths, NGOs Foundations and other non-profit associations still have two months to have proper accounting. This is in fact what the new uniform act relating to the accounting system of non-profit entities requires. (SYSCEBNL). The act adopted in December 2022 in Niamey, Niger during the 53rd session of the Council of Ministers of the organization for the harmonization of business law in Africa. An African organization which brings together 17 States of the continent including Benin. While January 1 2024, date of entry into force of this new measure, approaches, the subject is debated.

In the street, citizens see it as an invention of those in power. “This accounting affair comes from where else ? » asks Dona, motorcycle taxi driver before rushing to answer himself: “Obliging the churches, mosques to have an accountant ? I still do not understand ". Next to him, another will add: “I believe that it is to discourage the churches which are opening almost everywhere. But I see that the faithful will be obliged to give more of their collection,” he believes.. If citizens think that OHADA’s decision resembles a witch hunt, specialists in organizational management and accounting management believe the opposite. This is the case of the coordinator of Philanthropic Relief, Cleophas Oké Gbédji. Organizational development consultant, he is an expert in ISO standard anti-corruption management system 37001. “It is true that not all NGOs have this habit because funding is rare and we do not always have adequate staff to record all expenses regardless of the level of the organization. It is therefore necessary to record all expenses to be able to draw up a balance sheet., submit the accounting to the control of the auditors and then also have the account certified by a chartered accountant, it comes down to the standards of the good organization of the structures themselves. And this applies to churches and mosques which in Beninese legislation are considered NGOs” explains the coordinator of Secours philanthropique, an NGO working in the social field.

The context of the OHADA decision

The head of the finance accounting department at the National School of Applied Economics and Management (Aeneas), Assistant professor in management sciences at the University of Abomey Calavi, Crescent Mebounou, accounting graduate located. « L’article 1^is  of the uniform act relating to accounting law and financial information imposes an obligation on any entity of one of the Member States, to set up financial accounting. The organization and keeping of this accounting are based on a framework composed of accounting law and an accounting system.. Outside of SYSCO-OHADA applicable by lucrative abuse entities, the article 5 of accounting law distinguishes six (06) sectors of activity and has its own or specific accounting system. These are credit institutions, i.e. the banks, microfinance, financial market players, insurance and reinsurance companies, security and social security organizations and finally non-profit abuse entities. However, this last category of entity which includes associations, non-governmental organizations, political parties, the churches, The foundations, mosques and the like did not have an accounting system until recently” informs the Assistant Master.

In such a context of regulatory vacuum, some of these entities forced themselves to keep accounts on the basis of SYSCO-OHADA and others did not even have any. This is the correction that was made during the 53rd session of the OHADA Council of Ministers to adopt the accounting system for non-profit entities on 22 December 2022 in Niamey. " Consequently, non-profit entities which kept their accounts in accordance with the standards of for-profit entities are now required to comply with or apply the new standards. Those who did not have any accounting at all have the obligation to set up this accounting according to this framework” specifies Crescent Mebounou.

He took the opportunity to shed light on the importance of accounting. " Accountability, it is a system that allows an entity a company to organize all financial information in an encrypted manner. That is to say in monetary terms, what is related to its transactions or activities. So here, it is in fact a matter of listing all the monetary consequences that we observe on the flows or the activities that we carry out or the relationships that we have with the different parties involved in our activity.. And over the course of a period we will record these different transactions periodically or on a daily basis and at the end of the period we must be able to take stock of all the resources that have been collected and the uses that have been made of them” teaches the head of the accounting and finance department of the National School of Administration and Applied Economics (Aeneas).

Set up, it allows the entity owner and other stakeholders, banks for example to have a clear idea of ​​the entity's assets, that is to say its assets and debts. Coming in the particular case of a church or a mosque, “There are donations, there are quests that are collected so that means resources obtained and they are used to make expenses that allow the entity to function,” he explains..

What about accusations of voyeurism? ?

For many people, little informed about accounting matters, the decision taken in Niger in December 2022 voyeurism timeline. “Leaders must mind their own business and leave religions. We are not controlled by God. Why, they want to know what churches and mosques spend,” says a citizen offended. “I don’t understand the misunderstandings. What exactly are they looking for?. At least for me, the State wants to collect imports from churches and mosques” adds another. Faux, indicate Cleophas Oké Gbédji. The expert in ISO standard anti-corruption management system 37001 think they are doing a witchcraft trial. “In itself, the decision is good since any organization must normally control its management and this monitors management, accounting, of all organizations is part of good organizational management practices,” he corrects..

In the tax code these certain entities are exempt from a certain number of taxes. “The objective here is not to do accounting and be systematically imposed by the State. Non! Unless these entities engage in income-generating activities,” says the teacher at the University of Abomey Calavi.. “This is to their advantage because they will have traceability and will be able to use this information to mobilize resources in the form of loans from financial institutions or in the form of grants from different partners”.

In any case, the churches, mosques, foundations and other similar non-profit entities have until January 1 2024 to adjust.

Arnaud ACAKPO (Coll)