PROBLEMS OF FINANCIAL MANAGEMENT IN COOPERATIVE SOCIETY AND REMEDIAL MEASURES (A CASE STUDY OF NJABA L.G.A IMO STATE) ABSTRACT
This project work is based on the “problems of financial
management in cooperative society” in Njaba L.G.A the main aims of this study
are to find out some basic problems facing the financial management of
co-operative society in Njaba L.G.A. Imo state which brings about low and
frustrated growth and also to bring out suggestion that will help to provide a
congenial atmosphere for the operation of management aspect of cooperative. To
know the functions undertaken by the financial management towards cooperative
establishment, objectives of cooperative societies. Relevant literature will be
reviewed under specific themes to enable the researcher know the depth of work
done by the previous writers in the field of study. This enable the researcher
to establish some missing links which become pant of these motivating factors
for my understanding other findings and formulating on essential aspect of our
quest to make fruitful in Njaba. The findings show that the cooperatives in
Njaba L.GA. are experiencing many problems in their financial management. Based on this , the society is
poorly managed.
TABLE OF CONTENTS
Title page
Dedication
Certification
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the
study
1.2 Objectives of the
problem
1.3 significance of
the study
1.4 research
questions
1.5 Significance of
the study
1.6 Limitations of
the study
1.7 Definition of
terms
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
So far we have
learnt about sole proprietor shop, partnership and joint stock company and
different forms of business organization. It has been noticed that besides many
differences among them in respect of their formation, operation, capital
contribution as well as habilitation, one common similarity is that all
endanger in business acridities to earn profit. Without profit it is impossible
for them to survive and grow. But there are certain organizations which
undertake business activities with the prime objectives of providing service to
the members. Although some amount of
profit is essential to survive in the market, their main intention is not to
generate profit and grow. They pool available resources from their members,
utilize the same in the best possible manner, and also the benefits are shared
by the members, IKabua (1984: 271). It is an autonomous association of persons
united vohuntanty to meet their common economic, social and cultural needs and
aspirations through a jointly owned and democratically controlled enterprise and are based on the values of
self-help, self responsibility, democracy, equality, equity and solidarity, ICA
(1995). In the tradion of their founders, cooperative members believe in the
ethical values of honesty, openness, social responsibility and caring for
others.
Cooperative has play a vital role as a significant part of
the global economy, cooperative sector represent a significant contribution to
our global economy According to the /CA annual survey, Global 300, the top
cooperatives around the world had nearly $ I trillion in revenue in 2005. That
is only slightly less than the economy of the world’s 9th largest economy, Canada
cooperation create over 100 million jobs more than all the multi-national
corporations combined.
Cooperative enterprise also contribute to early sector of
the economy and are among the largest businesses in the world (ICA, 2008) in
Nigeria today, it is known that the nature and contribution of cooperative
societies are organ size Normally by troop to the demand to settle one family
problem to the other of the members as a group.
In this study, the economic development is not equivalent to
the total development. The aim of this research is therefore to examine the
problems of financial management of cooperative in Njaba L.G.A which make them
not to grow well in the economy and also proper some solutions to the problem.
1.2 STATEMENT OF THE
PROBLEM
The specified deficiencies and problems
ravaging cooperative financial management that has imparted negatively on the
general management and performance of the cooperative societies in Njaba L.G.A
are
Unable to determine appropriate soirees of funds
Inadequate record keeping of their financial transactions.
Inadequate management of cash.
Wrong investment of funds.
Unable to determine the appropriate capital composition of
pastiness.
1.3 OBJECTIVES OF THE
STUDY
The purpose of
this study is to enable us review the financial management problems of
cooperative in Njaba local government Area and proffer some remedial measures
to the problems as well the objectives are.
To determine the appropriate soirees of funds which will
help the cooperatives in Njaba L.G.A float well in their business ventures.
To enable and equip the cooperatives in Njaba on the
importance of adequate record-keeping of their business transactions.
To proffer solutions and remedial measures on the management
of cash in Njaba L.G.A. for better performance in their business.
To prepare the financial management on the pest way of
investing their fund for good productivity and growth of the enterprise.
To menace the problem of capital composition for business in
cooperatives in Njaba L.G.A
1.4 RESEARCH QUESTIONS
1) Which sources of
fund can be seen to be appropriate to the cooperative societies in Njaba?
2) How effective is
the financial management employed to record their business transaction?
3) In what can the
financial management implore their management of cash?
4) What are the
best ways of investing their funds for good productivity?
5) In what way can
the problem determination of capital composition can be solved?
1.5 SIGNIFICANCE OF
THE STUDY
The importance of this study are:
The study will form a solid base upon which further research
will be carried out.
The study will also guide cooperative societies on ways of
getting financial help from other peoples government.
The study will aid contribution to know the importance of
financial management in cooperative movement.
The study will help to utilize the developing economy for a
specify purposes towards achieving their goals.
1.6 SCOPE AND
LIMITATION OF THE STUDY
The research is intended to cover more areas of the problems
of financial management as well as their remedial measures in cooperative
societies in Njaba L.G.A. Imo state. But as a result of certain factors
imitating against the research; the scope has been narrowed down to objectives,
function and problems of financial management of cooperative societies in Njaba
L.G.A. these factors are finance is one of the limitation encountered by the
researcher, it was difficult for the researcher to raise enough money for
transportation in terms of going to sustain ourself during the researching
process.
Secondly the problem of time. Due to academic activities
within the semester coupled with the SIWES programme and finally examinations
the researcher could not reach a large population concerning the work.
Thirdly problem encountered by the researcher was non
availability of leianat materials, as a result of this it become difficult for
the researcher to obtain enough information as can be scare in chapter of this
study
1.7 DEFINITION OF TERMS
Cooperative:- A cooperative is an organization volurtanly
Owned operated by people that have faced a common realizable objective to
respond to those weeds.
Society:- this a system in which people line together in
organization form to achieve aspenfieaim.
Cooperation:- this is aim of working together for common
purpose.
Financial management: This means applying general management
principles to financial resources of the enterprise.
SECTION B
Data on cooperative society
Name of cooperative society ………………………………….
Type cooperative society ………………………………………..
Membership of the society ……………………………………..
Total share capital of the society ……………………………
How much has the society from their source of income
…………………………………………………………………….
Lust in order of priority four major benefits you have
derived from the society
…………………………………………………………………………
………………………………………………………………………….
…………………………………………………………………………..
………………………………………………………………………………….
a, Problems faced by the financial management of cooperative
societies in Njaba L.G.A
Unability to determine appropriate sources of funds
Inadequate recordkeeping of financial transition
inadequate management lash
Wrong investment of funds
Unable to determine the appropriate capital composition for
business
All of the above
10) Solution to
Problems of financial management of cooperative societies in Njaba L.G.A
a) Determination of appropriate source of fund
b) Increased friacizl control
e) Ensure gord capital composition
f) All of the above
11) Has cooperative
movement in the area create any contribution towards devilment of the Njaba
L.G.A
a) Yes
b) No