THE FINANCIAL MANAGEMENT IN CO-OPERATIVE FINANCING AGENCY (A CASE STUDY OF KWARA CO-OPERATIVE FINANCIAL AGENCY L.T.D ILORIN)
Co-operative financing agency are not different from other types of business with respect to efficient management of their funds they are required to used funds very carefully and judiciously because their source of funds tend to be limited.
The peculiar limitation imposed by co-operative principle make it very difficult for co-operative to obtain sufficient funds from outside e.g. that interest payment must not exceed percentage.
As a catalyst cooperative financing agency put together, then resource of entire cooperative credit union and by so doing make the possible for credit union to help each other thereby bringing the gap between rich and poor cooperative credit union the cooperative credit concept is widely recognized on the only means to successful improved the standard of living.
Therefore through spirit of cooperative mutual self help, the rich individual financial strength to the poor credit union in order to effect imposed credit equipment out, the financial strengths and mutual protection that unity breads. When a credit investment part in the members total serving into the apex through the financing programme it handing power to another by making money available for the needy credit union to borrow in order to assist the credit need of its member and accord financial relief in the sense of world.
The desire for individual to development them there economically and socially and the desire of cooperative financial agency to become strengthened will be achieved through efficient financial management.
TABLE OF CONTENT
Title page i
Table of contentvii - v
1.1 Introduction 1
1.2 Aims and objectives of the study 3
1.3 Statement of the problem 4
1.4 Limitations of the study 5
1.5 Scope of the study 6
1.6 Research questions 6
1.6.1Characteristic of useable research question7-15
2.0 Financial management in a financial institution 16
2.1 Financial reports 18
2.2 Financial control 21
2.3 The voucher system 22
2.4 Internally generated funds 24
2.5 Financial strengthening 28
2.6 Internal audit 29
2.7 Risk management programme 29
2.8 Responsibility of the officer 35
3.1 Origin and historical development of Kwara cooperative financing agency 37
3.2 The objectives of Kwara cooperative financing agency 39
3.3 The structure of Kwara cooperative financing agency 40
3.4 Kwara cooperative financing agency committee duties and responsibilities of the board of director 40
4.1 Data presentation 46
4.2 Data interpretation 47
4.3 Test of hypothesis 48
4.4 Data analysis 56
4.5 Research findings 56
CHAPTER FIVE: summary, recommendation and conclusion
5.1 Summary 59
5.2 Recommendations 60
5.3 Conclusion 62
Cooperative financing agencies are not different from other types of business with respect to efficient management of their funds they require its used fund very carefully and judiciously because their source of funds tend to be limited.
The peculiar limitation imposed by cooperative principles mark 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 resources of entire cooperative credit union and by so doing mark it possible for credit union to help each other by bringing the gap between rich and poor cooperative credit union. The cooperative credit concept is widely recognized on the only means for 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 the order to effect imposed credit equipment can the financial strength and mutual protection that unit breads.
When a credit union invest 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 members and to accord financial relief in the desire of the world.
The desire for individual to develop them economically 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 portability invested than members themselves. Therefore financial agency feels that the saving mobilized by the agency if they are to be used profitability, priority should be made to circulated with financial agency itself and be fully utilized to up like living standard of the members to when there savings belong.
In general no outsider 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 in dividend restrictions.
The 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 OBJECTIVE OF THE STUDY
The study aim at highlighting the importance of the financial management in an organization of Kwara state cooperative financial agency.
The study is focused on;
The short out the main source of finance to the agency as well as the management of funds the short art areas of problem in the financing agency to suggest and recommend solution to the management of Kwara state cooperative financing agency limited the existed of sound financial management for cooperatives.
1.3 STATEMENT OF THE PROBLEM
One of the most important problem of the organization is lack of adequate finance to carry out their functions successfully.
It is believed that, availability of fund can yields do good result and contributed 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 desires 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 economics crisis.
In the light of above, this research intends to find out whether this good and strong financial management which will be supported with interview and it there are laxities in any area, the research intends to find out whether this good and strong financial management which will be supported with interview and it there are laxities in any areas, 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 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 cooperation financial agency limited in federal ministry of work and housing Ilorin Kwara state, from the time of established at 31st December 2001.
The duties and responsibilities of the state and management board are steel seen as importance is the development of cooperative and hence has been in cooperative and hence has been in cooperated into the study.
1.6 RESEARCH QUESTION
Nworgu (1991) describes research questions as questions posed by the researches in which answers would lead to the solution of the problem: while in the word of Asika (1991) research, question serves as a guide to the research in his search for answers to the problems being studies. Hence, it should be general enough to give rise to other loses questions but should still focus on the major problems of the study.
Examples of research question are:
i. What is the relationship between leadership style and job performance?
ii. Why do most male managers prefer female secretaries?
iii. What is the relationship between budget and inflationary trend?
1.6.2 CHARACTERISTICS OF USEABLE RESEARCH QUESTIONS
i. A good research question must-cover as many research questions as would be enough for the major issues in the project work. Meanwhile, there is” no rule stipulating the number of questions to be formulated; however, the research questions should not be too small as not to include important aspects of the problem to be too large as to result in an unmanageable number of research questions.
ii. The research questions must be related to the problem being investigated and represent important and critical issues of the study.
iii. Research questions serve as a guide to the researchers in his question for answers to the problems being investigated. Hence, research question where to collect such data.
iv. Research questions must be direct and should focus attention on the major issues of the study
v. Research questions should be formulated in the clear and unambiguous language that could be answered. Researchers should try as much as possible to avoid formulating research question in such a way that it will require ‘yes’ or ‘no’ answers and all the research questions formulated in the study should be answers.
An hypothesis is a conjectural statement about that relationship the exist between two or among many variables it is a tentative statement about relationship the validity of which needs to be tested by means of logical testing as well as analysis of data and information and subsequently accepted or rejected. The formulation of relevant hypothesis and testing same are necessary requirement in any scientific research. However, it is a general belief among students writing thesis (project work) that every statement made in the course of their study is an hypothesis and it is testable. It should be noted that every tentative research statement is not an hypothesis.
The dichotomy between an hypothesis and a research-statement is the variables are very important in hypothesis formulation and testing, ordinary research statements many contain constants in which the relationships between the constants are not testable instead of variables in measurable term.
1.6.4 FORMS OF HYPOTHESIS
Hypothesis could be classified in different ways. There could be two general form of hypotheses for testing, namely:
(1) Research hypotheses
(11) Statistical hypothesis
(1) Research hypotheses :- these are postulations formulated based on a hunch about the telationships between two or more variables that ore of interest in the solutions of the research problem for the study research hypotheses are like research questions but in the case of hypothesis, there is prediction of some relationships. The research hypothesis does not express the variables in which it is made up in measurable terms and hence it is not directly testable statistical (nworgu.1991).
(11) statistical hypothesis :- This is a conjectural proposition about populations which is to verify or prove wrong by means of logical testing as well as analysis of data and information collected from a sample of that statistical population. Statistical hypotheses have both the null hypothesis and the alternative hypothesis. The relationship between two or more variables in the hypothesis are expressed in statistical and measureable terms it is the null hypothesis that the researcher tests.
1.6.5 NULL AND ALTERNATIVE HYPOTHESES
A null hypothesis is the hypothesis that is tested by the researcher, it is stated in negative assertion by the use of the words ‘no’ and ‘not’ null hypothesis states that there ‘no difference’ or ‘no relationship’ between two or more variables of the hypothesis. The null hypothesis which is Hi or Ho.
Alternative hypothesis specfies an alternative way of demonstrating the relationship between the two or more variables should the null hypothesis does not hold. It can be said that expresses the likely conditions not anticipated in the null hypothesis.
Ho: There is no significant relationship between motivation and productivity of workers.
Hi: there is significant relationship between motivation and productivity of workers.
1.6.6 FUNCTION OF HYPOTHESES
The function of hypothesis include the following:
1. Hypothesis serves as a link, between the world of reality and the world of theory and explanations.
2. hypothesis can transform the researcher’s ideas into testable forms.
3. Hypothesis guides the researcher in his research design and aids the generation of the required data for the study.
4. Hypothesis also provides the researcher with the direction of data analysis.
5. Researcher is able to organize his research report, through the help of hypothesis.
6. Hypothesis aids the researchers in focusing his attention and effort in the right direction.
1.6.7 SOURCE OF HYPOTHESIS RESEARCH
Hypothesis can be derived or obtained from the following source:
1. Theory researcher can extract hypothesis from theories emanated within science. Researcher could derived hypothesis from theory by retesting, already accepted theories for possible continued acceptable or rejection.
2. Personal obscuration: this is also considered a very source of hypothesis. The researcher can drive hypothesis based on his personal observation.
3. Experience: the researcher can conveniently derive hypothesis based on the recall of past experience of what he knows about the problem under study.
4. Reasoning by analogy: Hypothesis can evolve from reasoning by analogy this is based on the fact that if two problems are similar in certain aspects relevant from the standpoint of the study at hand, they are likely to be similar in other relevant aspects including the hypothesis.
5. Literature: Literature is another source from which hypothesis could be derived. Researcher can derive hypothesis from the review of literature.
6. Finding of previous studies: this can provide a basis for expressing.
7. Hypothesis: previous finding can give rise to new dimension which need to be resolved. The new dimension of problem can then form basis of formulating relevant hypothesis..