The impact of cash control system on performance of pastoralist organization: a case study of Ngorongoro Pastoralist Council -Arusha -Tanzania

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Kampala International University.College Of Economics and Management
This research studies the impacts of cash control system on pastoralist societies. Cash is a vital resource for a not-for-profit organization. To maintain financial viability, the organization must have enough cash to pay its bills. Accrual basis financial statements can report an excess of revenues over expenses but this does not necessarily mean that there is cash in the bank. Cyclical and seasonal fluctuations also have an impact on an organization's cash. Cash inflows and outflows for most not-for-profits typically fluctuate throughout the year. This increases the importance of the budgeting process because obligations must be met on a timely and consistent basis. The organization must plan ahead for those periods when cash inflow tends to be less than cash outflows. Postponing expenditures or accelerating constituent billings are two options for solving the problem. Once the annual operating and capital budgets are authorized, they can be converted into cash flow budgets to verify the availability of resources and to highlight times of lower than expected cash flow. A model cash flow budget reflects a policy decision to maintain a minimum cash level. Organizations need to plan from day one to build working capital reserves equivalent to at least several months of operating expense. When excess cash reserves have accumulated, the organization must plan for temporary cash investments to maximize the return on those resources. As much money needed as possible it should be kept in federally insured, interest bearing accounts to maximize an organization's yield on its cash. Short term investments of excess cash should be chosen to bala.-ice maximization of :interest earned with emergency access to the invested cash.
Dissertation submitted to the school of Business and Management in partial fulfillment of the requirement for the award of the degree of a bachelor of Business Administration of Kampala International University
Cash, System, Performance, Organization, Arusha -Tanzania