The Project File Details
- Name: FINANCIAL MANAGEMENT IN CO-OPERATIVE FINANCING AGENCY
- Type: PDF and MS Word (DOC)
- Size: [183 KB]
- Length: [61] Pages
1.1 INTRODUCTION
Co-operative financing agencies are not different from other types of business with respect to efficient management of their funds they are required it’s used fund very carefully and judiciously because their source of funds tends to be limited.
The peculiar limitation imposed by cooperative principles make it very difficult for cooperative to obtain sufficient fund from outside e.g. that interest payment must not exceed a certain percentage.
As a catalyst cooperative financing agency pull together the recourses of entire cooperative credit unions and by so doing, mark it possible for credit union to help each other thereby bridging the gap between rich and poor co-operative credit union. The cooperative credit concept is widely recognized on the means to successful improved the standard of living.
Therefore, through the spirit of cooperative, mutual self help the rich credit union like to lend some of their individual financial strengths to the poor credit union in order to effect imposed credit equipment can the financial strength and mutual protection that unit breads. When a credit union invests part of the member total serving into the Apex’ through the financing programme. It lends its lending power to another by making money available for the credit needs of its member’s and to accord financial relief in the sense of the world.
The desire for individual to develop them economically and socially and the desire of cooperative financial agency to become strengthened and provide better services to their member themselves will be achieved through efficient financial management.
There is no better place where members saving could be profitability invested than members themselves. Therefo5re financial agency feels that the saving mobilized by the agency it they are to be used most profitability should an a matter of priority be made to circulate with financial agency itself and be fully utilized to up like the living standard of the members to whom there saving belong.
In general no outsiders want to invest his money in cooperative members. Often consider leaving only a minimum amount in cooperative business only to invest the rest of the money in other types of business, which have no dividend restrictions.
This phenomenon is term capital flight and emphasize the need for a very careful and efficient management of means fund available to cooperative financing agencies.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The study aims at highlighting the importance of the financial management is are organization of Kwara State cooperative financial agency.
The study is focused on.
The short out the main source of financial to the agency as well as the management of the fund, the sort out areas of problem in the financing agency to suggest and recommend solution to the management of Kwara State cooperative financing agency limited the existence of sound financial management for cooperatives.
1.3 STATEMENT OF THE PROBLEM
One of the most important problems of the organization is lack of adequate finance to carry out their functions successfully.
It is believed that, availability of fund can yield so good result and contribute to the stability of an organization. Also lack of enough manpower can lead to laxity in all areas of financial management in an organization. Frustration of these de4sires of financial management could lead to collapse of an organization. So financial management is very important to an organization in such organization is to survive any economic crisis.
In the light of above, this research intends to find out whether this is good and strong financial management which will be supported with interview and it there are laxities in any area, the research intend to sort out what measures to take.
1.4 LIMITATION OF THE STUDY
There are various problems the researcher encountered during the writing of this project the major ones are during this time the 2004 annual report of the organization was available for me of their office. I laid my hand only on the 2003 annual report.
1.5 SCOPE OF THE STUDY
The scope of this study is implied to fish out the importance of financial management in a self-help financial institution.
The particular apex organization detailed as a cases study of Kwara State Cooperative Financial Agency Limited in Federal Ministry of Works and Housing Ilorin Kwara State, from the time of establishment at 31st Dec. 2001.
The duties and responsibilities of the state and management board are still seen as importance is the development of cooperative and hence has been in cooperated into this study.
1.6 RESEARCH METHODOLOGY
The method of study used in this work is to make use of two (2) systems of data collection, interview and documentary sources.
INTERVIEW METHOD
This is mainly to earn a high rate of response from Kwara State cooperation financing agency is part present management committee members. Agency’s coordinator other employees environment officials and individual cooperates.
THE DOCUMENTARY SOURCES
This will include “Text book on comparatives, symposium, lecture handout, credit union journal and other journals.
1.7 ORGANIZATION OF THE STUDY
Chapter one of this study constitutes an introduction to the study and provides a brief account of the subject matter and it covers the following items introduction to the study research methodology e.t.c.
Chapter two covered the literature review under this we have financial management in an institution fund creation financial report budget strengthening of the organization.
Chapter three involves the historical background of Kwara State Cooperative financial agency limited its objective organizational structure and the risk management programme of the organization.
Chapter five which is the last chapter, comprises of the conclusion and the recommendation to the organization.
1.8 DEFINITION OF TERMS
FINANCIAL MANAGEMENT IN COOPERATIVE FINANCIAL AGENCIES
Financial management as a subject is a great interest to both academicians and practicing manager.
From the subject of management of cooperative financing agencies could make a decision through the help of accountants it could be also help the cooperative management board to make good financial reports through their secretary must be conversant with financial management.
MEANNING OF FINANCIAL MANAGEMENT
Financial management can be defined as a management activity, which concerned itself with the planning and controlling of organization finances.
From the above definition we can see the F.M is the life blood of an organization through which the organization can plan for the future activities control current and making decision affecting the organization financial position.
COOPERATIVE THRIFT AND CREDIT SOCIETY
A thrift and credit cooperative, is a free association of people with a common bond who sense and lend money to one another at a low interest rates in short credit union means mutual trust in one.
COOPERATIVE FINANCING AGENCIES
This is an apex organization for cooperative thrift and credit societies are state level. On this definition and the legal angle consider cooperative so as a body of cooperate designed to promote socio economic interest of members.
All the above definitions refer to an institution consisting a group of people identified with the following characteristics.
COMMON BOND
The common bond is the link that exists between members of specific group. The common bond may be the place of resident word or common profession.
FREE
This cannot imposed by stated of external pressure it is individual which of his own free decides to enter the organization. This assures the complete autonomy of individual with the cooperative.
PEOPLE
Cooperative are formed by human being who hence the power to make judgment and are free to choose leaders capable of assuming responsibilities so we can not say automobile cooperative e.t.c.
SAYING
This is the intelligent use of economic resources that a person process is provide the needs that may present process is provide the needs that may present capable of assuming responsibilities present themselves in the future in cooperatives this is a system by which members from a reserve.
LOANS
Today, everyone needs credit material environment needs credit as well, company and individual financing agencies operation one based on specific loans and principles.
THE CHIEF OF WHICH ARE VOLUNTARY ENTRY AND WITHDRAW
This principle means that the down of cooperative is opened to those who wish to join as long as they are within the common bond and achieve to union requirement for membership and saving with they so desire as soon as they complete their obligation with the organization.
DEMOCRATIC CONTROL
This maintains all the members at the same level in the decision making of the cooperative.
PROVIDE OF LOANS
Loans are granted only for provident and productive purpose since effort of the member cannot be wanted through poor usage of money.
THE CHIEF OF WHICH ARE VOLUNTARY ENTRY AND WITHDRAW
This principle means that the down of cooperative is opened to those who wish to join as they are within the common bond and achieve to union requirement for membership and saving with they so desire as soon as they complete their obligation with the organization.
DEMOCRATIC CONTROL
This maintains all the members at the same level in the decision making of the cooperative.
PROVIDE OF LOANS
Loans are granted only for provident and productive purpose since effort of the member cannot be wanted through poor usage of money.
INTEREST
Cooperative financing agency is an economic enterprise that provides services to its members as an enterprise. It has to pay expenses of operation said dividends on saving to its members. The interest charge by financing agency is 1% monthly on unpaid balance.
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