The impact of cash control system in the pastoralist societies: a case study of Ngorongo Pastoralist Council -Arusha Tanzania
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Date
2010-05
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Abstract
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 balance maximization of interest earned with emergency access to
the invested cash.
Description
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
Keywords
Cash, Control system, Pastoralist, Societies