Wednesday, October 28, 2009

MY INTERNSHIP REPORT

DEDICATION………………………………………………………..………
ACKNOWLEDGMENTS……………………………………………………
PREFACE……………………………………………………………………
ABSTRACT…………………………………………………………………
RESUME…………………………………………………………………..…
LIST OF ABBREVIATIONS…………………………………………..……

GENERAL INTRODUCTION……………………………………………….

CHAPTER ONE: PRESENTATION OF TTCCUL……………………….....

SECTION ONE: HISTORY, EVOLUTION AND IDENTIFICATION OF
TTCCUL……………………………………………………………….
Ι.1- History……………………………………………………………………
Ι.2- Evolution………………………………………………………………. .
Ι.3- Identification…………………………………………………………… .
I.4- Membership …………………………………………………………… ..
Ι.4.1- How to become a member……………………………………………
Ι.4.2- Transfer of membership………………………………………………

SECTION TWO: ORGANISATIONAL STRUCTURE AND
FUNCTIONING………………………………………………………...
ΙΙ.1- ORGANISATIONAL STRUCTURE…………………………………..
ΙΙ.1.1- POST AND RESPONSIBILITIES………………………………….
ΙΙ.1.1.1- General Assembly…………………………………………………..
ΙΙ.1.1.2- Board of Directors………………………………………………….
ΙΙ.1.1.3- Supervisory Committee…………………………………………….
ΙΙ.1.1.4- Women Committee………………………………………………..
ΙΙ.1.1.5- Youths Committee…………………………………………………
ΙΙ.1.1.6- Manager……………………………………………………………
ΙΙ.1.1.7- Accountant………………………………………………………….
ΙΙ.1.1.8- Loan Officer………………………………………………………..
ΙΙ.1.1.9- Accounts Clerk…………………………………………………….
ΙΙ.1.1.10- Loan Recovery Agent…………………………………………….
ΙΙ.1.1.11- Cashier…………………………………………………………….
ΙΙ.1.1.12- Branch Office Staff……………………………………………….
ΙΙ.1.1.13- Secretary…………………………………………………………..
ΙΙ.1.1.14- Guards…………………………………………………………….
ΙΙ.1.1.15- Cleaners…………………………………………………………..
ΙΙ.1.2- Organigram…………………………………………………………..
ΙΙ.2- Functioning……………………………………………………………
ΙΙ.2.1- Mission………………………………………………………………
ΙΙ.2.2- ACCOUNTS OPERATED AND SERVICES RENDERED BY
TTCCUL……………………………………………………………….
ΙΙ.2.2.1- ACCOUNTS OPERATED………………………………………….
ΙΙ.2.2.1.1- Shares……………………………………………………………..
ΙΙ.2.2.1.2- Savings…………………………………………………………..
ΙΙ.2.2.1.3- Loans………………………………………………………….….
ΙΙ.2.2.1.4- Group Accounts………………………………………………..…
ΙΙ.2.2.1.5- Deposit……………………………………………………………
ΙΙ.2.2.1.6- Salary…………………………………………………………….
ΙΙ.2.2.2- SERVICES RENDERED……………………………………………
ΙΙ.2.2.2.1- Insurance………………………………………………………..
ΙΙ.2.2.2.2- Counselling………………………………………………………
ΙΙ.2.2.2.3- Daily Collection…………………………………………………
ΙΙ.2.2.2.4- Money Transfer / Telecash………………………………………..
ΙΙ.2.3- RESOURCES OF TTCCUL…………….……………………………
ΙΙ.2.3.1- Financial resources..............................................................................
ΙΙ.2.3.2- Material resources...............................................................................
ΙΙ.2.3.3- Human resources.................................................................................

CHAPTER TWO: GENERAL CONCEPTS OF CASH RECEIPTS AND
CASH PAYMENTS.............................................................................

SECTION ONE: CONCEPTS OF CASH RECEIPTS...................................
Ι.1- Definition of Cash.....................................................................................
Ι.2- Definition of a cash receipt......................................................................
Ι.2.1- Presentation of a cash receipt.................................................................
Ι.2.2- Features of the cash receipt.....................................................................
Ι.3- The Cash Account.....................................................................................
Ι.3.1- Notion of the cash account.....................................................................
Ι.3.2- Functioning of the cash account..............................................................
Ι.3.3- Control of the cash account....................................................................
Ι.4- The need for cash in an enterprise.............................................................

SECTION TWO: CONCEPTS OF CASH PAYMENTS.................................
ΙΙ.1- Definition and notion of cash payment.....................................................
ΙΙ.2- Mode and reason of payment …………………………………………...
ΙΙ.2.1- Examples of payments ……………………………………………….
ΙΙ.2.2- Associated accounting books affected when payments are made..........
ΙΙ.2.2.1- The balance sheet................................................................................
ΙΙ.2.2.2- The journal..........................................................................................
ΙΙ.3- Payment voucher.......................................................................................
ΙΙ.3.1- Functioning of the account.....................................................................
ΙΙ.3.2- The principal expenses account.............................................................
ΙΙ.3.2.1- Ordinary activities expenses account..................................................
ΙΙ.3.2.2- Extra ordinary activities expenses account.........................................

CHAPTER THREE: AN EVALUATION OT THE TREATMENT OF
CASH RECEIPTS AND CASH PAYMENTS IN TTCCUL................

SECTION ONE: CASH RECEIPTS...............................................................
Ι.1- Application...............................................................................................
Ι.1.1- Stage One...............................................................................................
Ι.1.2- Stage Two................................................................................................

SECTION TWO: CASH PAYMENTS............................................................
ΙΙ.1- Application..............................................................................................
ΙΙ.1.1- Stage One.............................................................................................
ΙΙ.1.2- Stage Two..............................................................................................

CHAPTER FOUR: CRICISMS AND SUGGESTIONS …………………….

SECTION ONE: CRITICISMS.......................................................................
Ι.1- Criticisms on accounting procedures..........................................................
Ι.2- Criticisms on technical procedures.............................................................
Ι.3- Criticisms on management procedures.......................................................

SECTION TWO: SUGGESTIONS..................................................................
ΙΙ.1- Suggestions on accounting procedures.....................................................
ΙΙ.2- Suggestions on technical procedures........................................................
ΙΙ.3- Suggestions on management procedures..................................................

GENERAL CONCLUSION.............................................................................

BIBLIOGRAPHICAL REFERENCES............................................................

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I am most grateful to the manager of Tole Tea Cooperative Credit Union, Mrs. Ayong Pascaline for the conductive environment she provided for me in her establishment. I would like to thank Mr Ngoh Christopher, my academic supervisor who guided me through this work and also for the strength I had in producing this report.
I will like to thank Mr Louis Marie Djambou, founder of the Higher Institute of Advanced Technologies, for his creative efforts towards training young professionals in Cameroon.
I would also like to thank the following people:
 I also like to thank the staff of the credit union for making life so confortable for me. They are Mr Denis Fonteh, professional supervisor, Abba Joseph, Anyangwa Collins Ako.
 My brothers for their financial support they gave me during my training. My thanks to my lecturers in school for the knowledge that they gave me.
 My elder sister, Ayukoben Prudencia and her family in Germany for their financial support through out my studies. May God continue to supply your needs.
 To my cousins, Mr Ntui Oben Mathias and Mr Ntui William Nkongho for their support towards me during my internship.
 To my God parents, Mr/Mrs Ayuk Mbui for their financial support in producing this report.
To Batey Sharon Agbor for her constant support towards to realisation of this project.
 To my friends Tabi Frankcline, Njang Glwadys, Ayuk Dieudonne, Obenson Christopher, Che Joan,Enjema Fanny Mbwange, EWANG Angèle, Anyope Nadesh, ITONGA ITONGA Joseph, ITOE MUKETE, etc for their friendly support.


In the previous years, the Cameroon economy suffered lack of well trained agents and civil servants. It is at such that the leaders decided to improve on the teaching process of secondary and higher institute of learning by creating institutions like IUT and some professional schools like ESSEC, ENSET, ISTD, POLYTECHNICS….
It is in this perspective that the Advanced School of Management – Higher Institute of Advanced Technologies known in French as Ecole Supérieure de Gestion – Institut Supérieur des Technologies Avancées (ESG-ISTA). It came into operation under the ministerial authorization N°05/0022 and N° 05/0038/MINESUP of 12TH January 2005.
Its prime aim is to admit students who are holders of the Baccalaureat and General Certificate of Education (Advanced level) and provide professional training facilities towards obtaining a Higher National Diploma (HND) in two years. It trains students in the following specialities:
 Accounting,
 Banking and finance,
 Executive secretarial studies,
 Management,
 Marketing.
The students are required to carryout an academic internship at the end of the first year for a minimum duration of two (2) months in an enterprise of their choice. At the end of this internship, a report has to be produced which is to be defended in front of a jury at the end of the program by the candidate.


Our research work is centered on the treatment of cash receipts and cash payments in a micro-finance establishment from 16th July to 15th September 2008.
In an attempt to be very precise and concise two concepts have been advanced: the theoretical concepts and the practical concepts.
On the theoretical aspect, we have made a review on the fundamental notions on cash receipts and cash payments.
On the practical aspect, studies are done on a particular entity: Tole Tea Cooperative Credit Union in order to verify the agreement between the practical and theoretical concepts.
Our study has helped us discover some of the problems faced by Tole Tea Cooperative Credit Union in the treatment of cash receipts and cash payments.
In order to solve these problems, we have suggested some measures which can lead to better ways of evaluating cash receipts and cash payments












Notre travail est basé sur le traitement des retraits et des versements espèces dans une enterprise de micro finance du 16 juillet au 15 septembre 2008.
Pour être précis et concis, nous avons utilisé deux approches l’approche theorique et l’approche pratique.
Parlant de l’aspect theorique, nous avons fait une revue des notions fondamentales qui interviennent dans les retraits et les versements comptant
S’agissant de la pratique notre stage s’est effectué dans la caisse populaire cooperative de Tole Tea dans le but de vérifier la fonctionnalité des retraits et des versements espèces.
Cette étude nous a permis de découvrir les problèmes auxquels cette entreprise est confrontée dans le traitement des retraits et versements.
Nous avons par conséquent suggéré des solutions pour améliorer les retraits et les versements dans cette entreprise.











AGM: Annual General Meeting

BICEC: Banque Internationale du Cameroun pour L’epargne et le
credit

BOD: Board Of Directors

CAMCCUL: Cameroon Cooperative Credit Union League

COBAC: Central Africa Banking Commission

CR: Cash Receipts

FA: Fixed Assets

IUT: Institute Universitaire de Technologie

NFC: National Financial Credit

OHADA: Organization for the Harmonization of Business Law in
Africa

PN: Passbook Number

PV: Payment Voucher

REF: Reference

TTCCUL: Tole Tea Cooperative Credit Union Limited

UBC: Union Bank of Cameroon






Tole Tea Cooperative Credit Union ltd (TTCCUL) is a category one micro-finance institution. Her major aim is to satisfy her members. She does this by operating the following accounts (shares, savings, loans, group accounts, deposit and salaries) and renders the following services: insurance, counseling, daily collection, and money transfer.
The union's objectives are to encourage savings, provide quick financial services to her members, encourage members to take loans for productive purposes in which they supervise and give advice so as to better follow-up the projects of members.
As a financial institution, for efficient accountability, TTCCUL must always guide against any mismanagement. This can only be done when good records are kept for all her inflows and outflows. For this to be done, an efficient management of both her operating revenues (cash receipts) and expenditures (cash payments) should be carried out.
With the above, we can now see the necessity for a micro-finance institution to evaluate and promote accountability in her cash receipts and cash payments, as they are the primary means of recording their daily transactions. Therefore, a succeeding micro-finance institution should always have an efficient evaluation of her inflows and outflows.
Since cash receipts and cash payments are the only means by which a micro-finance institution does business with her members, TTCCUL is not an exception.Tole Tea Cooperative Credit Union Ltd as a micro-finance institution records her inflows through the cash receipts and outflows through the payment voucher. When transactions are efficiently recorded in the above books, accountability is facilitated by giving a true and fair view of TTCCUL at any particular period. This is being affected as a monthly check is done to see how recordings are done in the books and how postings are also done into the respective cashbooks. Let us now look at the abnormality of the management of cash receipts and cash payments.
As an abnormal process in the management of cash receipt and cash payment in TTCCUL, instead of withdrawing money from the deposit account of the owner against any cheque drawn by him, it happens that when this account cannot effect the payment, his savings account effects the payment without charges. It is due to the identified problems that we decided to write on the topic “ An evaluation of the treatment of cash receipts and cash payments”.
Our information for this piece of work has been both from primary and secondary sources. Since secondary data consists of data that already exist somewhere, we consulted textbooks, reports and class notes from lecturers to aid our research. As concerns primary data, which is the original data gathered from the field for the first time, we approached the respondent by telephone in collecting the information.
For methodological reasons, we have divided our work into four chapters.
Chapter one is based on the presentation of TTCCUL (history, evolution, and identification including its organizational structure). We have discussed the general concepts of cash receipts and cash payments, of which the theory has been elaborated in chapter two.
Chapter three comprises the evaluation of the treatment of cash receipts and cash payments as practiced in Tole Tea Cooperative credit union Ltd. Finally in chapter four, we have exposed some of the problems identified such as payment done by cheque. As a matter of fact, we have put forth some possible suggestions in order to help resolve these problems. One of the suggestions is the strict respect of the union’s bye-laws as this will increase her revenue through charges.





























In this chapter, we have divided it into two sections. Section one is talking about the history, evolution and identification of TTCCUL. Section two is about the organizational structure and functioning of TTCCUL.

SECTION ONE: HISTORY, EVOLUTION AND
IDENTIFICATION OF TTCCUL

In this section, we have explain the history, evolution and identification for better understanding of what TTCCUL is all about.

I.1 – History
The Tole Tea Cooperative Credit Union Limited affiliated to CAMCCUL is a category one micro-finance establishment fully recognized by COBAC decision N° D-2001/05 of January 2001 and Ministerial Decision N° 00395/MINFI of August 2001. It was authorized to give out credit facilities to members at a very minimal rate of interest. It was founded in 1970 by late Mr. Akong who talked to potential members about the credit union and its advantages and he was its founding president.
At its inception, membership was drawn exclusively from workers of the Tole Tea plantation but was later opened to the general public. This was to better enhance the idea of credit unionism and increase its membership so as to better solve the needs of the members and the general public.

I.2 – Evolution
From 1970 till date, the union has made remarkable progress in view of answering the financial questions of her members. The credit union now has three (3) branches, Tole, Molyko and Mile 16 with head office in Tole. Over the years, there has been continuous growth in membership and share savings, which makes the increase in owner’s equity of the union. In view of trading in today’s financial world, the union has begun to modernize its operations through the use of computerized facilities in the Molyko office branch.
Like any other credit union affiliated to CAMCCUL, Tole Tea cooperative credit union is consisted and owned by members who came together, saw the need to mobilize their funds and to save in a secured environment.

I.3 – Identification
Name Tole Tea Cooperative Credit Union Limited
Acronym TTCCUL
Year of creation January 1970
Head quarter Tole
Telephone 33 00 99 87 / 77 17 03 41
E-mail ttccul@hotmail.com
Postal box 431 Buea
Membership Over 1000
Judicial status Limited liability company
Manager Mrs. Ayong Pascaline
Bankers BICEC Buea, UBC Limbe
No of branches Three (3)

I.4 – Membership
Membership is open to the general public, individuals residing within the national territory irrespective of their tribal background or nationality. Her membership also extends to groups, institutions and other organizations.
Being now aware on how her membership looks like, let us now see what it takes to becoming a member and any possible transfer within the CAMCCUL network.

I.4.1 – How to Become A Member
 Complete an application form at the credit union office (see appendix 1)
 Pay registration fees of 2000frs
 Provide two passport size photograph
 Buy ten (10) shares for 15000FCFA
 Building fee of 5000FCFA
 Pass book and individual ledger at 800FCFA

I.4.2 – Transfer of Membership
Members of other credit union within the CAMCCUL network wishing to transfer to Tole Tea Cooperative Credit Union can contact the union’s office and have it done at no cost. This also applies for those wishing to exit themselves from consuming the services of Tole Tea Cooperative Credit Union to other credit unions within the CAMCCUL network.
After seeing all what the history and evolution of TTCCUL, including its identification and membership is all about in section one above, let us now look at its organizational structure for more understanding in section two.

SECTION TWO: ORGANISATIONAL STRUCTURE AND
FUNCTIONING
In this section, we have explain the organizational structure of TTCCUL, including the functional aspect which embraces her mission, accounts operated and services rendered and finally her resources.

II.1 – ORGANISATIONAL STRUCTURE
The next important issue to look at is the organizational structure.

II.1.1 – POSTS AND RESPONSIBILITIES
II.1.1.1 – General Assembly
This body is made up of all members of the credit union. This body has the right to participate during the A. G. A. and also take part in decision making of the union.

II.1.1.2 – Board of Directors (BOD)
This is an organ of the credit union which ensures the smooth running of the union and adopts the internal rules and regulations. The BOD is usually composed of five (5) members at least and nine members (9) members at most. The number is always uneven (odd) so that they can have majority in terms of deliberations. The mandate of the elected members of this organ is renewable once. The BOD also exercises the following duties:

 Presents at the annual general meeting, a management report as well as the annual accounts that have been duely audited.
 Gives vital assistance to persons empowered to check the accounts of the credit union.
 Recruits and evaluates managers and senior bookkeepers of the union.

II.1.1.3 – Supervisory Committee
This committee is made up of three (3) members elected at the annual general assembly of the union. They also control the union so that their activities are in conformity with the rules, ethics, and laws guiding the running of the credit union in order to secure the interest of members. This committee also performs the following:
 To check and follow up decisions taken by the board of directors
 To check the work of the different organs and staff
 To issue reports on the activities of the committee.

II.1.1.4 – Women Committee
This committee is put in place to encourage women on savings. In this way, it helps to build leadership skills in women so as to undertake projects and be self-reliant. This committee is elected by the general assembly for the promotion and sensitization of women members of the union. This committee also represents the union in International women’s day.

II.1.1.5 – Youths Committee
Just like the women committee, this committee is out to encourage youths to save in order to alleviate poverty in the society since youths are the future leaders.

II.1.1.6 – Manager
The manager is someone who oversees the activities of the credit union and doubles as a member of the board of directors. All branch office staff are answerable to him since he takes part in all board of directors meetings. He can recommend whom to employ. The manager defends his financial statement and budget and assists the board of directors in some relevant information about the union. The manager performs the following roles:
 Represents the union in all aspects. That is during CAMCCUL meetings, court actions etc.
 Counseling: he help in counseling members on the type of accounts to operate, loan to take and many others.

II.1.1.7 – Accountant
The accountant is the financial analyst of the credit union. He prepares the following documents: statement of accounts, balance sheet, trial balance and budget to be approved by the board of directors. The accountant also audits the other branch office staff before coming out with the global report for the union. The accountant also performs the following:
 Supervises the accounts clerks
 Takes care of accounting records
 Update the ledger accounts
 Pays taxes, social insurance contribution.

II.1.1.8 – Loan Officer
A loan officer is someone who approves loans to members, taking into consideration their various securities. That is, by assessing all the conditions under which loans are to be granted before giving out the loan and works in collaboration with the manager.

II.1.1.9 – Accounts Clerk
The accounts clerk is someone who carries out all the daily recordings of the union. He records all the daily transactions in the cash receipts and payment vouchers booklets. He works in collaboration with the accountant.

II.1.1.10 – Loan Recovery Agent
This committee is usually made up of the loan officer, manager and some members of the board of directors. Their duty is to recover loans so as to reduce delinquency. To be delinquent means the members are unable to pay their loans at the due date.
II.1.1.11 – Cashier
The cashier is the only person who receives and makes payment over the counter. All money collected by the cashier is kept in a safe and he is the only person who has the right over the safe. A safe is a small box in which the cashier keeps money. He also helps members to fill forms and answer their questions.
II.1.1.12 – Branch Office staff
These are all members who work at the branches of the credit union and are answerable to the accountant and manager.
II.1.1.13 – Secretary
The secretary keeps records, takes down minutes, and prepares agenda during meetings. The secretary also represents the union in any aspect with the manager.
II.1.1.14 – Guards
These are persons whose responsibility is to secure the credit union. When this is done, members and potential members feel secured and will therefore continue doing business with the union.
II.1.1.15 – Cleaners
Cleaners are persons responsible for keeping the environment of the credit union clean.


II.1.2 – Organigram






























An organigram is a schematic representation of the different work posts in an enterprise or a diagrammatic representation of an enterprise as shown in the figure above. In this diagram, the structure of decision taking is enhancing.

II.2 - Functioning
In this particular sub section, we have highlighted the various components that make up the functioning aspect of TTCCUL. That is, her mission, accounts operated, services rendered and resources that make-up the functioning aspect of TTCCUL.

II.2.1 – Mission
The credit union has the following as her mission:
 Encourage members to take loans for productive purposes. By so doing, the union supervises the projects during financing and gives necessary advice concerning the project.
 Providing quick financial services and quality products to her members seeking to improve their economic and social well-being. She also pays a fair rate of interest to her members on their savings through their qualified employees.
 Encourage savings; alleviate poverty by building business plans initiated for the sustainability and growth of the union.
 Research and adopt new ideas and permit the union into favorable competition with other financial institutions.
 Promote and attempt to attain zero delinquency rates on loans.
 Encourage regular savings and guarantees good profitable returns on members’ investment.

II.2.2 – ACCOUNTS OPERATED AND SERVICES RENDERED BY
TTCCUL
Under this heading, we have highlighted the various accounts operated by TTCCUL such as shares, savings, loans and services rendered like insurance, money transfer and counseling.

II.2.2.1 – ACCOUNTS OPERATED
We have highlighted some of the accounts operated by TTCCUL.

II.2.2.1.1 – Shares
This account gives you the right to become a member of the credit union and to benefit from other services rendered. Every member is expected to subscribe for ten shares at a nominal value of 1500FCFA each. It should be noted that these shares do not yield any interest to members.

II.2.2.1.2 – Savings
Money saved in this account yields encouraging interest which is payable to members at the end of the year. With the existence of this account, the money is compounded monthly and can be withdrawn at any time. Withdrawal from this account is possible with a two weeks notification or a 2.5% will be applied on the amount to be withdrawn as charges.

II.2.2.1.3 – Loans
This is an account with cash available for members to take in the form of borrowing. Loans are granted up to three (3) times the amount in the members saving account. The repayment of the loan is over a period of 48 months (4years) at the fairest rate you can think of or ever get.
Loans for productive purposes are also available. This will go up to five times members’ savings account. These loans are granted base on co-makers, collaterals or bank standing orders. A standing order in this case is an instruction by the member(s) to their banker to pay a stated amount at a stated date to the union.
From the above, we can conclude that a loan is the advance of a fixed sum to a member by the bank (credit union) for a definite period.
TTCCUL also grant the following loans:
 Short term loans (within one year)
 Medium term loans (within one to two years)
 Long term loans (four years)

II.2.2.1.4 – Group Accounts
This account is meant to guarantee the safety of your money with your group. It enables groups to avoid the risk of embezzlement of their funds by their treasurers. Groups also benefit from interest annually. Moreover, they can withdraw at any time upon group’s request.

II.2.2.1.5 – Deposit
This is a checking account at the credit union where money deposited can be withdrawn at any time without notification. With a withdrawal slip, a member can withdraw from their deposit account without paying any charges and also make payment to third parties.
It should be noted that all transactions concern with “II.2.2.1.1, II.2.2.1.2, II.2.2.1.3, and II.2.2.1.5” are entered in the passbook kept by the member and the individual ledger by the union (see Appendix 2).

II.2.2.1.6 – Salary
This account is for salary earners, i.e. civil servants, private institutions/companies, business centers and others. With this account, the member can benefit from overdraft, Christmas loans, and school fees loans at very cheap interest rate. This is being facilitated with the assistance of UBC plc, NFC and BICEC. The holders of this account are able to receive their salaries on demand when due.

II.2.2.2 – SERVICES RENDERED
We have given detail explanations in this sub-section for easy understanding on the services rendered by TTCCUL.

II.2.2.2.1 – Insurance
This is the case where the savings and loans of members are insured against the death or permanent disability of the member to ensure that the member or dependent do not suffer as a result of death or permanent disability at no extra cost.

II.2.2.2.2 –Counselling
A highly qualified staff is always ready to give advice on financial management and other matters at no cost.



II.2.2.2.3 – Daily Collection
Tole Tea Cooperative Credit Union have daily collectors commonly known as “ACCAWOH”. With their expertise, they can help by collecting money from people at their localities for better security at the union. Loans can be gotten base on daily collections. This service also facilitates loan repayment which can be done daily.
The credit union also pays pensioners through Union Bank of Cameroon (UBC).

II.2.2.2.4 – Money Transfer/Telecash
This is another service provided by the credit union to facilitate the sending and receiving of money. This is being made possible by software, telecash (flextra) by those under the CAMCCUL network. With this software, the credit union can offer you this service at no risk whether a member or not with very low rates all over the national territory.

II.2.3 – RESOURCES OF TTCCUL
The objectives of management are achieved in relation with the resources put in place which are: financial, material and human nature.

II.2.3.1 – Financial resources
The principal sources of finance in TTCCUL are the incomes received from its activities, which are:
 Income from members
 Charges on their services
 Sales of individual ledgers and passbooks
 Sales of T- shirts
 Interest from capital.

II.2.3.2 – Material resources
For its good and smooth functioning, management has put in place the following materials:
 Furniture
 Building
 Office stationeries
 Computers
 Printers
 Filing cabinet
 Money deductors
 Software

II.2.3.3 – Human resources
To attain its goals, TTCCUL does not only require material resources but also qualified staff to adequately manage these resources. As such, the personnel of TTCCUL are composed of dynamic young men and women with a great sense of creativity towards optimally satisfying the needs of members and potential members.

After successfully giving explanation on the presentation of TTCCUL, its history evolution, identification, organizational structure and functioning, let us now look at the general concepts of cash receipts and cash payments.








In order to better understand the concepts of cash receipts and cash payments, this chapter is divided into two sections. Section one is talking about the “concepts of cash receipts” and section two is on “concepts of cash payments”.

SECTION ONE: CONCEPTS OF CASH RECEIPTS
In this section, our work has dwell on aspects such as the definition of cash, cash receipt, presentation of a cash receipt, features of a cash receipt, the cash account and the need for cash in as enterprise.

I.1 – Definition of Cash
Cash is referred to as money and in legal terms as legal tender. It is defined as anything generally accepted by law of the community or country as a means of exchange or payment. It qualities are:
 Acceptability,
 Divisibility,
 Portability,
 Stability,
 Durability,
 Recognition, and
 Homogeneity.
Without cash, an enterprise cannot carryout its transactions regularly and effectively and due to this fact, cash has become a necessary tool for enterprises. Cash is a resource, which is used by financial institutions or establishments to finance their activities and without cash, nothing as a whole will work out. Due to this necessity, it is referred to as a “life wire” of an enterprise.

I.2 – Definition of a Cash Receipt
Oxford Advanced Learner’s Dictionary defines a receipt as “a piece of paper that shows that goods or services have been paid for”. In other words, a receipt is a written document, which acknowledges the remittance of a sum of money. It is used as a means of proof by the person who pays the money or who makes the deposit. That is, it is a document through which all money coming into the credit union is being registered. The cash receipt has its presentation and its features.

I.2.1 – Presentation of a cash receipt
A cash receipt (CR) is a document through which all money coming into the credit union is being registered into (see appendix 3) for the sample. This therefore means that the handling of this booklet is done with extreme care since it records the inflows into the credit union.
Being an important or a vital document used by the cashier to acknowledge the receipt of money, it therefore necessitates the explanation of features on the cash receipt.



I.2.2 – Features of the cash Receipt
At the top of the receipt, there are two statements “Give out only the duplicate (green) to the member” and “cancellations and mutilations not accepted”. This means that any receipt which goes against these two statements should not be accepted.
It further stipulates that any mistake made on the cash receipt should be cancelled by drawing two (2) lines across it and the word cancelled written between the lines. In this case, the cashier must attach the duplicate to the cancelled receipt.
If there is no cancellation on the other hand, then the duplicate should be given to the member and not left in the booklet.
This is then followed by the name of the credit union.
The account number and the date.
The name of the member, his national identity card number and the amount (in words).
The money is then split into various accounts into which it should be treated depending on the wish of the member. On the cash receipt, we have savings, deposits, loan repayment, loan interest and extra lines for others. These extra lines could be for fines, entrance fees, shares, building fees, sales and others.
Finally there is a place for the amount (in figures) after which the cashier signs followed by the member. The duplicate can now be cut off and given to the member.

I.3 – THE CASH ACCOUNT
Here, we have highlighted some aspects of the cash account such as the notion and its functioning.

I.3.1 – Notion of the Cash Account
According to the OHADA Uniform Act, the authorized accounting number used for the regularization of cash in an establishment is the class five (5) account, which is sub-divided as follows:
 50: Marketable securities
 51: Collectable values
 52: Banks
 53: Financial Institutions
 54: Cash (treasury) instruments
 56: Bank, overdrafts and discounting credits
 57: Petty cash
 58: Petty cash funds, standing orders and internal transfers
 59: Provisions and provisioned contingencies (treasury).

The above account numbers are the main accounts in cash accounting which are sub-divided depending on the nature of the various transactions that falls under a particular heading of an account. An example is account “50” – marketable securities, which can be divided as:
 5011: Treasury marketable securities
 5012: Financial organizations bonds

o 57: Petty cash, which is sub-divided as follows:
 571: Petty cash, head office
 5711: Petty cash, domestic currency
 5712: Petty cash, foreign currency

All the above recordings depend on the transaction involved and it should be noted that the OHADA Uniform Act does not permit the recording of transactions with two digit numbers. Two digit accounting numbers serve as a heading for accounting numbers.

I.3.2 – Functioning of the Cash Account
The cash account records incoming cash and cash outlays of the union. With this, let us now see in a tabular (T) form the presentation of the cash account.

Debit << CASH>> Credit

*Debited with all cash entries: *Credited with all cash exits:
- Cash contributed by members - Cash Purchases
- Cash withdrawal from bank - Cash payment of suppliers and - Cash received from clients and other other creditors
Debtors - Cash payment of various expenses
- Cash sales - And others
- And others

It should be noted that the cash account must always have a debit balance or a nil balance and this balance must correspond to the cash till balance. The debit balance is coming as a result of the impossibility of spending what has not been placed in the firm’s or enterprise’s cash till.

I.3.3 – Control of the Cash Account
A daily control must be carried out to verify whether the accounting cash balance exactly corresponds with the cash balance in the till and permits the cashier to balance his/her account at the end of the day. This means that the post of a cashier in an establishment is very delicate. Therefore the choice of a cashier should be well studied taking into consideration the various temptations and risks involved.
In controlling the cash account, a cash reconciliation process is carried out within the level of the establishment which is to reconcile the cash kept by the cashier and the recorded cash figures kept by the accountant. This is done to present a cash statement for the entire enterprise. A cash statement shows the entire cash situation of a company and this is done by presenting a cash flow statement.
This statement shows the inflow and outflow of cash in and out of the enterprise and the final cash situation of the enterprise by identifying if there is an increase or decrease within a particular month of transaction.

I.4 – The Need for cash in an Enterprise
Cash is needed for the day-to-day running of the business. Due to this reason, all businesses always make cash available for their day-to-day transactions. This explains why a branch cashier in TTCCUL collects cash from the accountant to be used in the branch on a daily basis to help facilitate the day-to-day transaction. Should the business run out of cash, the bank becomes the next alternative means either by withdrawal of funds or apply for a loan. Without cash, no business will ever dream of achieving its objectives for cash is an essential resource for businesses all over the world hence the saying “no cash, no projects”.



SECTION TWO: CONCEPTS OF CASH PAYMENTS
This section dwells on concepts of cash payment in which we have highlighted the notion of cash payments, mode and reason of payment, associated accounting books and finally its functioning.

II.1 – Definition and Notion of Cash Payment
Oxford Advanced Learner’s Dictionary defines payment as the “act off paying somebody or something or of being paid”. In other words, a payment is the disbursement of a certain sum of money from the enterprise’s treasury to back the services consumed. A payment involves the financial outflow of the credit union which can be as a result of a loan to members, savings, and deposits and so on.

II.2 - Mode and Reason of Payment
A payment can be made in cash, by the use of a bank cheque or use of a giro account cheque. Payments can also be made using electronic credit cards. Our study is rather based on the payment by cash, which is basically operated by the credit union.
When a payment is made by cash, the credit union issues a receipt justifying the exit of cash from her till.

II.2.1 – Examples of Payments
Examples of payments which a credit union may make in the course of her operation include the following:
 Payment of state taxes
 Payment of its employees’ salaries
 Payment of her members out of money in their savings, deposits accounts, shares (when the member wants to exit from the union), loans.
 Payment for equipment or stationeries bought.

II.2.2– Associated accounting books affected when payments are made
In this sub-section, we have looked at some of the documents used during the process of recording in the enterprise. Some of which are the journal and the balance sheet.

II.2.2.1 - The Balance Sheet
This is a table, which presents the situation of a firm or credit union at a given period. The balance sheet is made up of two parts: the left hand side is called the assets and the right hand side is called liabilities. The assets regroup the belongings of the enterprise such as goodwill, building, stocks, and office equipment while the liabilities explain the origins of the assets. These can be debts from third parties like banks, suppliers and others.
Let us now see the layout of a balance sheet.
ASSETS TTCCUL Balance Sheet as at… LIABILITIES
Elements Amount Elements Amount
Intangible Fixed Assets Long Term Resources
Tangible Fixed Assets Current Liabilities
Current Assets Cash Liabilities
Cash Assets
Total Total


II.2.2.2 – The Journal
This is a book or register where all the daily accounting operations of an enterprise are recorded in a chronological order without any modification. A journal must have numbered pages and sign by a competent authority like a mayor or his assistant.

A journal can be presented as follows:

date

X X1 X2

Y Y1 Y2
Narration


Explanation
X: Account number to be debited
X1: Title of the account debited
X2: Amount of the account to be debited
Y: Account number to be credited
Y1: Title of the account credited
Y2: Amount of the account to be credited

It should be noted that the principle of double entry stresses that all debits must be equal to all credits. The use of the journal is for the correction of errors as the daily accounting operations are not void from mistakes even though it is to record accounting operations.
Let us now look at the payment voucher of TTCCUL.

II.3 – Payment Voucher (PV)
This is another document used at the credit union when any money is paid out of the credit union. On the payment voucher, we have: loans, deposits, savings, shares and extra lines for others. (see appendix 4). All other procedure to issuing a payment voucher remains same as with the CR. The duplicate is pink.

The pages of the CR and PV booklets are numbered serially and have six (6) digit numbers and each page numbered from A to F. The bookkeeper then post the information in the CR and PV to the cashbooks.

II.3.1 – Functioning of the Account
A close look into this chapter will be seen that payment is a form of expense to the enterprise affecting it. When an expense account is debited, it leads to a decrease in an asset account or an increase in the liability account.









Illustration
The credit union bought computer equipment and office furniture for XXXXFCFA. The transaction was paid by cash on 04/09/n. The recording will be done as follows:


date

2442 Computer equipment XX


2444 Office furniture XX

571 Cash XXXX

Being purchase of equipment and
Furniture.


From the above it can be seen that account <<2442 – COMPUTER EQUIPMENT>> and account <<2444 – OFFICE FURNITURE>> are being debited to the credit of the cash account.
The recording of payments permits us to have a clear view of the state of members’ accounts in the enterprise.
Unlike for other transaction, accounting for payments can be either using the centralized system of accounting or the classical system. With the classical system, all payments are recorded together with all the transactions of the enterprise in a single general journal whereas with the centralized system, payments are recorded only in the cash journal expenses or bank journal expenses at the moment when the payment is made. The total of all the payments made to members for example are transferred to a single general account “members” in the debit of the general journal backed by the credit of the treasury account used to make the payment.
The recordings in such a situation are identical to that made for expenses. A payment is an expense for the enterprise making it and is therefore accounted for or recorded in the same manner as all other expenses but with the particularity that it always involves the disbursement of funds.
With the above explanations, let us now look at the accounting numbering viewing it as an expense.

II.3.2 – The principal Expenses Accounts
The OHADA accounting system classifies expenses into two major groups according to the nature of the expenses.

II.3.2.1 – Ordinary Activities Expenses Account
This account records charges, which corresponds to the principal, main or normal activities of the enterprise. This means that the expenses incurred during the realization of their main activities not other or extra activities are called ordinary activities expenses and are recorded in ordinary activities expenses account. These expenses are recorded in class 6 account (ordinary activities expenses account). The expenses recorded in this class are sub-divided in such a way that each expense has an account number and can be sub-divided as far as the particular expense is diversified. The sub-division of class 6 accounts are as follows:
 60: Purchases and variation of stocks
 61: Transport expenses
 62: External service A
 63: Eternal services B
 64: Taxes and rates
 65: Other expenses
 66: Payroll (personnel) expenses
 67: Financial and similar expenses
 68: Depreciation
 69: Provisions

II.3.2.2 – Extra-ordinary Activities Expenses Accounts
These are expenses which are related to exceptional events. These events do not regularly occur in the enterprise. These expenses are incurred from exploiting activities out of the main operation of the enterprise like damage of equipment, gifts granted, income taxes and others. These expenses are partially accounts of class 8; precisely all the accounts with odd numbers are extra-ordinary activities expenses. The main accounts of class 8 are as follows:
 81: Accounting values of disposal of fixed assets
 83: Expenses off ordinary activities
 85: Endowments, extra-ordinary activities
 87: Workers participation
 89: Income tax

After a comprehensive study on the general concepts of cash receipts and cash payments, enhancing the theoretical part of it, it is at this juncture that we have to proceed with some practical exercises. This will now lead us to chapter three.








According to Henri Fayol, “Managing or administering is a process of planning organizing, coordinating, directing and controlling men, materials, machines and money so as to secure the optimum achievement of objectives”. Therefore, for this to be effective, every organization should have a good mastery of its inflow and outflows, that is, its revenues and expenses. As a matter of fact, section one of this chapter is based on how cash receipts are treated and section two dwells on cash payments.

SECTION ONE: CASH RECEIPTS
Since cash receipts are the only means through which the union acknowledges the receipt of money, this arises the need to better enhance the evaluation of cash receipts at this juncture. The evaluation of the treatment of cash receipts is done thanks to the help of an application.

I.1 – Application
The following example gives a practical explanation on how cash receipts are treated in TTCCUL. Actually the receipts are done in two stages: recording in the cash receipt booklet and posting into the cash receipt cashbook.

I.1.1 – STAGE ONE: Recording of the transactions in the cash receipt
booklet
Here, the transactions are entered in the receipts indicating the receipt of funds from members or other sources. During this stage, the cashier enters the sum of money given with the total, then, specifying in which account it should be entered as required by the member. For example an amount of 15000FCFA can be required by the member to be recorded as follows:
4000 FRS – Savings and 11000 FRS – Deposit. With this, let us now take a look at what is done in stage two.

I.1.2 – STAGE TWO: Posting into the cash receipt cashbooks
After the above recordings, the cashier will then post all recordings into the cashbooks. During this process, the cashier does what is called “vouching”. Vouching is the process of checking or confirming the information in the books of original entry especially if cashbooks are correctly entered. Vouching testify if the information in the cash receipt or payment vouchers have been properly posted to the respective cashbooks.
Below is an extract table of the cash receipts booklet in mile 16 branch.

MILE 16 BRANCH THE 2ND WEEK OF AUGUST 2008
TTCCUL: CASH RECEIPT CASH BOOK
MILE 16: PERIOD FROM 11TH TO 16TH OF AUGUST 2008

DATE PN REF TOTAL SAVING DEPOSIT SHARES CHARGES LOAN SALES
11/08/08 Balance b/f 1319500 419500 398250 90000 1750 400000 10000
=/= 2248 0610234A 65000 8000 42000 15000
=/= 2032 0610234B 10000 2000 8000
=/= 3004 0610234C 12000 12000
=/= 3007 0610234D 9000 9000
=/= 2229 0610234E 15000 15000
=/= 3042 0610234F 22000 1700 15000 5300
=/= 2033 0610235A 19000 9000 10000
=/= 3043 0610235B 60000 30000 9700 15000 5300
=/= 2034 0610235C 4500 4500
=/= 2249 0610235D 30000 1250 28750
12/08/08 2035 0610235E 15000 15000
=/= 3005 0610235F 1000 1000
=/= 2249 0610236A 12000 12000
=/= 2250 0610236B 18500 3500 15000
=/= 2251 0610236C 22500 1800 16200 4500
=/= 2036 0610236D 8000 8000
=/= 2035 0610236E 10000 1000 8000 1000
=/= 3006 0610236F 12000 3000 9000
=/= 2033 0610237A 9000 9000
=/= 3007 0610237B 80000 30000 50000
13/08/08 2141 0610237C 12000 12000
=/= 2029 0610237D 18500 14000 4500
=/= 2142 0610237E 6500 6500
=/= 2030 0610237F 20000 20000
=/= 2031 0610238A 6000 3000 3000
=/= 2033 0610238B 9000 8200 800
=/= 2421 0610238C 11000 3000 8000
=/= 2521 0610238D 4000 4000
=/= 2621 0610238E 7000 7000
=/= 2441 0610238F 6000 6000
=/= 2034 0610239A 8000 2000 6000
=/= 2249 0610239B 4500 4500
14/08/08 2229 0610239C 8000 2000 6000
=/= 2036 0610239D 4000 4000
=/= 3009 0610239E 9000 3000 6000
=/= 2248 0610239F 12000 4000 8000
=/= 3042 0610240A 3000 3000
=/= 2032 0610240B 16000 8000 8000
=/= 2048 0610240C 14000 14000
=/= 3042 0610240D 2000 2000
=/= 2142 0610240E 13000 3000 10000
=/= 2035 0610240F 5000 2500 2500
15/08/08 3043 0610241A 7000 2500 4500
=/= 2609 0610241B 4500 4500
=/= 2501 0610241C 14300 14000 300
=/= 2402 0610241D 12300 8000 4000 300
=/= 2282 0610241E 8000 8000
=/= 2033 0610241F 9000 3000 6000
=/= 3044 0610242A 30000 6000 3700 15000 5300
=/= 2230 0610242B 6000 3000 3000
=/= 2030 0610242C 5000 5000
=/= 2049 0610242D 4500 4500
16/08/08 3004 0610242E 9000 3000 6000
=/= 2036 0610242F 3000 3000
=/= 2231 0610243A 7000 7000
=/= 2229 0610243B 13000 10000 3000
=/= 2248 0610243C 11000 3000 8000
=/= 3009 0610243D 8500 3000 5000 500
=/= 2037 0610243E 4000 4000
=/= 2032 0610243F 14500 4000 10000 500
=/= 2502 0610244A 6000 2000 4000
=/= 2449 0610244B 9000 9000
TOTAL 2192100 657500 844050 150000 7000 428750 50800
Source: Finance Department ( cashier’s office)

At the end of the month, the cashier furnishes the above recordings to the accountant for control and eventual recordings in other books. The accountant then takes the total of all the main accounts e.g. deposit, saving and record in their main account in the general ledger. At this stage, if an amount of xxx FCFA was revealed from the cashbook under savings for example, the said amount will be debited in the evaluation of cash receipts in TTCCUL and eventually to the trial balance, which is always prepared monthly so as to give a summary of the life of the union. A trial balance is a recapitulative table of all the account balances classified according to the accounting numbers of the union. In this trial balance, we have the following:
 All the accounts of the enterprise
 Their credit and debit movement since the beginning of the period
 Their balances at the moment of establishing the trial balance.

SECTION TWO: CASH PAYMENTS
Payments made by TTCCUL are also accompanied by a payment voucher to justify the out going of cash either to a member, payment of salaries, purchase of equipment and others. Since the payment voucher is another means of acknowledging the out going of cash from the credit union, therefore special care must also be taken when issuing out the voucher. Let us now look at the practical part.

II.1 – Application
The subsequent work gives a practical explanation of cash payment in TTCCUL base on the recording in the cashbook. It is done in two stages as follows:

II.1.1 – STAGE ONE: Recording of the cash payment in the payment
voucher.
Here, the cashier fills the payment voucher to acknowledge the payment of the amount either to a member or the purchase of equipment for example. During this stage, the cashier enters the money in the receipt (PV) respecting the account to be credited if it is to pay a member. For example 10 000FCFA to be withdrawn by a member, 2000FCFA from deposit and 8000FCFA from savings in which case the two accounts will be credited with the amount. Let us now take a look at what is done in stage two.

II.1.2 – STAGE TWO: Posting into the payment voucher cashbook
After the above recordings, the cashier will then post all the recordings into the cashbooks. During this process, the cashier practices vouching just as explained with cash receipt recording. Below is an extract of the cashbook in TTCCUL – Mile 16 branch in which the periodical posting have been done and vouching effected. That is, if posting from the payment voucher to the cashbook was done correctly. It should be noted that this posting is done by the cashier for eventual work to be done by the accountant.



MILE 16 BRANCH THE 2ND WEEK OF AUGUST 2008
TTCCUL: PAYMENT VOUCHER CASH BOOK
MILE 16: PERIOD FROM 11TH TO 16TH OF AUGUST 2008

DATE PN REF TOTAL SAVING DEPOSIT LOAN SALARY TRANSPORT PUBLIC RELATION
11/08/08 Balance b/f 1019000 129000 500000 300000 57000 18000 15000
=/= 2249 0365000B 30000 30000
=/= 2034 0365000C 12000 12000
=/= 2441 0365000D 67000 7000 60000
=/= 2621 0365000E 9000 9000
=/= 2521 0365000F 52685 52685
=/= 2421 0365001A 200000 200000
=/= 2033 0365001B 45000 45000
=/= 2031 0365001C 19000 19000
=/= 2249 0365001D 60000 50000 10000
2032 0365001E 75000 25000 50000
12/08/08 2142 0365001F 96000 96000
=/= 2029 0365002A 48000 48000
=/= 3005 0365002B 40000 40000
=/= 3007 0365002C 152000 152000
=/= 2033 0365002D 50000 50000
=/= 2229 0365002E 2000 2000
=/= 2251 0365002F 14500 14500
=/= 3006 0365003A 60700 60700
=/= 2039 0365003B 49000 49000
=/= 3004 0365003C 70000 70000
=/= 2035 0365003D 40000 40000
=/= 2248 0365003E 96000 96000
13/08/08 3042 0365003F 42000 42000
=/= 2249 0365004A 19000 19000
=/= 2035 0365004B 8000 8000
=/= 2250 0365004C 33000 33000
=/= 2251 0365004D 70000 70000
=/= 3006 0365004E 12000 12000
=/= 2143 0365004F 43500 43500
=/= 2050 0365005A 96000 96000
=/= 2205 0365005B 22000 22000
=/= 2026 0365005C 19000 19000
=/= 2231 0365005D 22500 22500
14/08/08 2248 0365005E 70000 20000 50000
=/= 3009 0365005F 380000 380000
=/= 2037 0365006A 64000 64000
=/= 2032 0365006B 24000 24000
=/= 2502 0365006C 21000 21000
=/= 2449 0365006D 52000 52000
=/= 2049 0365006E 200000 200000
=/= 2230 0365006F 90000 90000
=/= 3044 0365007A 6000 6000
=/= 3042 0365007B 80000 80000
=/= 2030 0365007C 22000 22000
15/08.08 2033 0365007D 32000 32000
=/= 2282 0365007E 15000 15000
=/= 2402 0365007F 42000 42000
=/= 2501 0365008A 9000 9000
=/= 2609 0365008B 500 500
=/= 2035 0365008C 6500 6500
=/= 2142 0365008D 12000 12000
=/= 2048 0365008E 45000 45000
=/= 2019 0365008F 80000 80000
=/= 2248 0365009A 19000 19000
=/= 2036 0365009B 52500 52500
=/= 2256 0365009C 38000 38000
16/08/08 3007 0365009D 700000 700000
=/= 2600 0365009E 90500 90500
=/= 2413 0365009F 23000 23000
=/= 3004 0365010A 102500 102500
TOTAL 4916385 1050500 2307700 1400000 109685 27500 21000
Source: Finance Department (cashier’s office)

At the end of the month, the cashier furnishes the above information to the accountant for further recording to affect the accounting procedures involved. The accountant then takes the total of all the main accounts in the
ledger. At this stage, the accounts involve will be credited as money is going out of the account. For better understanding, it can be seen at this juncture that all what will be done at this stage is the direct opposite of what has been explained in “I.1.2” above of this chapter.

REMARKS:
At the end of every month when the recording and other posting have been done, their individual accounts in the ledger are kept in a tray of form. In this case, each account is handle on a different form and all the forms are assemble in a tray for any further usage and easy identification to facilitate accounting procedure.
The above control and checks are to make sure that there is no material misstatement in the books of the union and also to ensure that the principle of double entry is respected. The booklets for the payment voucher and cash
receipts are kept carefully from destruction for a minimum period of ten (10) years.
After successfully coming out with an evaluation of the treatment of cash receipts and cash payments in TTCCUL, let us now look at some identified criticisms and suggestions.
























Since “no work of man is perfect,” it could also follow that “no system put in place by man is perfect”.
During our internship at TTCCUL, our work was not that very easy because of some of the problems we encountered in the enterprise. We therefore went ahead to closely analyse these problems, their effects on the enterprise and to seek for possible solutions to these problems.

SECTION I: CRITICISMS

I.1 – Criticisms on Accounting Procedures
During our research, we realized that money paid against any cheque is withdrawn from the deposit account of the drawer (person owning the account). Contrary to that, it may happen that the drawer may at times not have enough money in this account. This is against the principles governing the payment through cheque in TTCCUL as it reduces her income.

I.2 – Criticisms on Technical Procedures
We have highlighted some of the identified problems concerning the technical aspect in TTCCUL.



I.2.1 – Insufficient Employees
The insufficient nature of employees to better facilitate the days’ job in the office can also not be left out. This is so because only the cashier does the payment of money to members, receipt of money, recording into the cashbooks and operating the telecash system. This slows down work in the office and probably increases the errors committed.

I.2.2 – Absent of Computerize facilities
The credit union is not computerized thereby giving more work to the insufficient workers. With the embracing of the computer age in which things are done efficiently and electronically, mistakes and waste of time in producing certain documents was realized during our research in TTCCUL.

The few ones that exist are also slow especially that of telecash, which takes time to respond when a request is given. That is, in the process of effecting payment or deposit, the communication between the system in the union and the central body in CAMCCUL headquarters. This in effect, delays time on the part of the union, members and clients.

I.3 – Criticisms on Management Procedures
Problems hindering effective and efficient management results have been highlighted as identified in TTCCUL.

I.3.1 – Absent of Alternative Power Supply
With the increase in competition nowadays by financial institutions in providing quality services to her clients, power supply is inevitable. During our research, there is the absent of a generator to supply electricity to the union in case of power failure. With the use of computer in their offices and the offering of telecash services, the absent of a generator will go a long way to disappoint clients in case of power failure.

I.3.2 – Inadequate Bookkeeping
Bookkeeping which is the act of recording permanently monetary aspect of a business transaction in a systematic manner so as to show the financial position or possession of business at the end of a given period, it is not so clearly exercise or practice in TTCCUL. This can be seen as there is the absent of a good filing system in which documents are not properly kept. For example the individual ledgers of members and old booklets of CR and PV are not systematically and permanently kept.

I.3.3 – Insufficient Promotion
Competition as a result of an increase in other credit unions and other financial institutions offering the services is seen here as a problem facing TTCCUL. A place where the services are provided by TTCCUL need not to be associated with snacks, bars etc as this gives a negative impression to members and potential members on the credibility of the union.

I.3.4 – Insufficient security
Security is not at its maximum or almost absent in the credit union though a financial establishment during our study. Finance, which needs to be protected with high security, is almost absent. This is as a result of the absent of security guards during working hours as when this is not done, members will not feel secured.

SECTION II: SUGGESTIONS
After the analysis of the problems encountered above, we tried to sort out some possible solutions to amend the situation so as to improve the efficiency of the establishment. In this regard, we have outlined these solutions in the paragraph that follows respecting the problems identified above.

II.1 – Suggestions on Accounting Procedures
As concern the payment of money against any cheque from the savings account instead of the deposit account, recommendations were given for the respect of the principle guiding it by the cashier. When this principle is respected, this will increase the charges received by the credit union because according to the bye-laws of the union, 2.5% of the requested amount will be deducted as charges. This will be done if there is no notification by writing two weeks in advance for money to be withdrawn from this account (savings). In this regard, continuous information should be given to members on the use of the cheque book before, during and after the purchase of it by a member since the employees have the duty to render such services as counseling to members.

II.2 – Suggestions on Technical procedures
We have given suggestions to aid the technical advancement of TTCCUL.

II.2.1 – As concern the problem of insufficient employees, we suggested the recruitment of more qualified workers. Since even with the most productive material and financial resources present without the needed human resources, that organization will not meet her goals, the right kind and the right number of people at the right time are of great importance. According to Marriotte, “human resource management has assumed a vital strategic role because organizations are trying to transform their human resource into a source of competitive advantage”. Human resource managers in enterprises like that of TTCCUL need to set their job in three (3) stages: planning, programming and finally evaluating if the targeted goals have been realized.

II.2.2 – The problem of computerization as suggested was to be ameliorated as CAMCCUL workers were to start with the computerization in the Molyko office. This will go a long way to reduce the burden of work on her employees and probable elimination of errors and keep her at feet with the computer age so that she can compete with other financial institutions. We suggested monthly maintenance work concerning the slow nature of computers. By regular maintenance, members will find the union more reliable to do business with. In this regard, a computer service should be created to manage the hardware and software in all her branches. This will also go a long way to install a viable computer system that will meet with today’s competitive financial market.

II.3 – Suggestions on Management Procedures
Here, suggestions have been given to help ameliorate in the management problems identified above.

II.3.1 – Building confident in members and potential members on the credibility of the union is a vital tool in today’s financial market. In this effect, we suggested the purchase of a generator to solve the problem of frequent power failure. By providing for a standby generator, the union will be able to compete with other financial institutions by providing their services even when there is power failure couple with the fact that power is being used by all machines to effect quality service rendering.

II.3.2 – Systematically and permanently keeping records is an important practice in accounting and bookkeeping, which cannot be minimized in such a micro-finance establishment as concern her file keeping. To therefore ameliorate the problem of file keeping, we suggested the purchase of wall cupboards to carry some of the documents. When this is done, it will increase in her aspect of file keeping which might be use as reference in some future date.

II.3.3 – Increase in her advertisement will solve the problem of competition by offering after sales service to members and persuading them to create a favourable attitude on their potential members. This can also be done by re-enforcing so as to clarify doubts about an action already taken thereby building loyalty to the members. As concerns the place of service rendering, conducive and credible places should be selected for her operation. That is, building confidence by operating their services in reliable environment for in today’s business, the place and person rendering the service is the service. That is according to one of the 4P’s of marketing, the environment in which the service is delivered should provide some physical evidence to the potential buyer about the service on offer.



II.3.4 – In respect of the absence of guards during working hours, we suggested the recruitment of security guards to give the protection needed when dealing with finance. By so doing, members will find the union more reliable to do business and will finally compete with her rivals in terms of members’ security as regard their finance.





























We would like to that it was very wonderful doing internship in TTCCUL, Mile16. The environment was very welcoming as we were able to learn many things and also discover and propose solutions to the problems identified.
From what we gathered so far on our research carried out on the “Evaluation of the Treatment of Cash Receipts and Cash Payments: case of TTCCUL”, we observed certain problems in the Accounting, Technical and Management domains. From the above, we have highlighted in the aforementioned pages and some solutions to help the institution fight against her competitors.
The criticisms made in this piece of work are based on our personal observations (which are subjective). We would like to say that most of the problems encountered in TTCCUL stem from the fact that effective implementation governing the cheque system is not applied
There is no perfection in any institution, if there was, there would be no need for research and innovation. We would like to say that these analyses should enable TTCCUL become more efficient. We are not claiming that all the recommendations made are the exact solutions to the problems identified, but we may recommend that these proposals should be considered by management as they may be the first step towards solving the problems and getting TTCCUL a place in the highly competitive market.






PUBLISHED BOOKS
1) A.J Favell : PRACTICAL BOOKKEEPING AND
ACCOUNTS, 7TH Edition.

2) A.S. Hornby : OXFORD ADVANCED LEARNER’S
DICTIONARY, 6th Edition

3) Banga Bitchanga E : OHADA ACCOUNTING CHART

4) Gareth R. and all : CONTEMPORARY MANAGEMENT,
3RD Edition.

5) Nkemazem Jerome Anu : METHODS AND PRINCIPLES OF
ACCOUNTING, Volume 2.


UNPUBLISHED WORKS
1) Mr. Awah : NOTES ON ADVANCED FINANCIAL
ACCOUNTING

2) Mr. Bobga : NOTES ON PRINCIPLES OF
MARKETING

3) Mr. Ndung : NOTES ON OHADA ACCOUNTING

4) TTCCUL : BROCHURE




APPENDICES

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