i

DECLARATION
I TABAH ALMANG BAIMA declared that this report has been developed by me
with
the knowledge I gained from the internship exercise I carried out at BAPCCUL
COOPERATIVE CREDIT UNION AT MILE II In Bamenda Town.
ii
CERTIFICATION
This is to certify that this report titled “AN INTERNSHIP BASED ON A ONE
MONTH PLACEMENT AT THE BAPCCUL FROM 1ST AUGUST TO 31ST
AUGUST” meets the demand, requirement and regulations governing the award
for the complement of The First Year in Accounting in The Higher Institute of
Commerce and Management under the Department of Accounting and in
Business Administration by the BAMENDA POLICE CORPERATIVE CREDIT
UNION LIMITED DATE………………………. SIGNATURE………………
FIELD SUPERVISOR
DATE………………………. SIGNATURE………………
ACEDEMIC SUPERVISOR
DATE……………………… SIGNATURE………...........
HEAD OF DEPARTMENT
iii
DEDICATION
I dedicate this report to my parents, my brothers and sisters, my lecturers, my
field supervisor who guided me throughout the internship and at most my
Supervisor PROFESSOR VISEMIH WILLIAMS who supervised my work
iv
ACKNOWLEDGMENTS
This report was realized by the cumulative effort of many people. I am therefore
greatly indebted to a great number of persons who gave me helping hands without
any restriction.
Special thanks go to my family who confined in me and gave me all moral and
financial support which I needed in the course of these work.
Thanks also goes to my friends and my class mates who gave moral and material
support which aided the realization of these work.
And the greatest of all goes to the ALMIGHTY GOD for helping me go through
this work successfully.
v
EXECUTIVE SUMMARY
This text Organization follows a system framework and it is divided into five
chapters. Chapter one which contains the background of internship, Aims and
Objectives of internship and Operational definition nation of terms. Chapter two,
which is made up of the historical background of the credit union, we will also
look at the vision and mission statement, goods and services and the Organigram
of the Credit Union. From there we will move to Chapter three where the various
departments (Loan department, accounting department and Member service
department) will be observed and the activities
carried out in each department. Chapter four will be on SWOT analysis of the
credit union. And finally, recommendation to; the management of the credit union
and to the university administrators and the conclusion that will all be in Chapter
five
vi
TABLE OF CONTENT
DECLARATION....................................................................................................................................i
CERTIFICATION................................................................................................................................ii
DEDICATION.......................................................................................................................................iii
ACKNOWLEDGMENTS ...............................................................................................................iv
EXECUTIVE SUMMARY..............................................................................................................v
CHAPTER ONE....................................................................................................................................1
GENERAL INTRODUCTION ......................................................................................................1
1.1 BACKGROUND OF THE INTERNSHIP.......................................................................1
1.2 AIMS AND OBJECTIVE OF THE INTERNSHIP .....................................................3
1.2.1 Aims.................................................................................................................................................3
1.2.2 Objectives of Internship.........................................................................................................5
1.3 DEFINITION OF SOME KEY TERMINOLOGIES..................................................7
CHAPTER TWO.................................................................................................................................12
PRESENTATION OF THE ORGANIZATION...................................................................12
2.1 HISTORY OF BAMENDA POLICE COOPERATIVE CREDIT UNION LTD
...............12
2.2 VISION AND MISSION OF THE ORGANIZATION...........................................13
2.2.1 Mission .........................................................................................................................................13
vii
2.2.2 Vision.............................................................................................................................................14
2.2.3 Cooperative Values.................................................................................................................14
2.3 AN OVERVIEW OF THE CAMEROON MICROFINANCE INDUSTRY.14
2.3.1 General Landscape..................................................................................................................14
2.3.2 Financial Inclusion Highlight............................................................................................15
2.3.3 Challenges...................................................................................................................................16
2.4 FINANCIAL PRODUCTS/SERVICES PROVIDED BY THE
ORGANIZATION ..............................................................................................................................16
2.5 Membership of BAPCCUL.......................................................................................................19
2.6 THE ORGANISATIONAL STRUCTURE OF BACCUL .....................................20
2.7 DEPARTMENTS AND THEIR FUNCTIONS............................................................22
CHAPTER THREE............................................................................................................................25
ACTIVITIES CARRIED OUT BY THE INTERN............................................................25
3.1 THE LOAN DEPARTMENT................................................................................................25
3.2 THE ACCOUNTING DEPARTMENT............................................................................29
3.3 THE MEMBER SERVICE AREA .....................................................................................32
3.4 THE PUBLIC RELATION AREA .....................................................................................33
3.4.1 Functions of The Public Relation Officer ...................................................................34
CHAPTER FOUR...............................................................................................................................35
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EVALUATION OF ORGANIZATION..................................................................................35
4.1 THE SWOT ANALYSIS OF THE BAMENDA POLICE COOPERATIVE
CREDIT
UNION.....................................................................................................................................................35
4.1.1 Strengths of The Credit Union..........................................................................................35
4.1.2 Weaknesses of The Credit Union.....................................................................................35
4.1.3 Opportunities of The Credit Union.................................................................................36
4.1.4 Threats of The Credit Union..............................................................................................36
4.2 EXPERIENCE AT THE BAMENDA POLICE COOPERATIVE CREDIT
UNION .....37
4.2.1 Positive Experiences..............................................................................................................37
CHAPTER FIVE.................................................................................................................................38
RECOMMENDATIONS AND CONCLUSION.................................................................38
5.1 RECOMMENDATIONS.........................................................................................................38
5.1.1 Recommendation to The Management.........................................................................38
5.1.2 Recommendations to The University Administrators ...........................................39
5.2 CONCLUSION............................................................................................................................39
REFERENCES.....................................................................................................................................41
APPENDICE.........................................................................................................................................42
ix
LIST OF FIGURES
Figure 1: Organigramme of BAPCCUL ..........................................................21
x
LIST OF ABBREVIATIONS
BAPCCUL: Bamenda police Cooperative Credit Union Limited
MFI: Micro Financial Institution
CAMCCUL: Cameroon Cooperative Credit Union League
PV: Payment Vouchers
CR: Cash Receipts
PR: Payment Receipts
1
CHAPTER ONE
GENERAL INTRODUCTION
1.1 BACKGROUND OF THE INTERNSHIP
The evolution of internships is quite interesting! Over time, internships have
transformed in terms of their purpose, duration, structure, and even the way they
are perceived by both employers and interns.
In the past, internships were often seen as a way to run errands, and perform
menial tasks. They were primarily unpaid and lacked a structured learning
component. However, this prospective has significantly shifted in recent years.
Nowadays, internships are increasingly recognized as valuable learning
experiences and an essential part of career development. Let's delve into some
key aspects that showcase the evolution of internships;
❖ Increased Focus on Learning
Internships have evolved to prioritize learning and skill development.
Companies and organizations now invest more effort in providing
meaningful work experiences to their interns. They create structured
programs, assign mentors, and provide opportunities for training and
professional development.
❖ Diverse Opportunities
The range of internship opportunities has expanded across various
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industries. In addition to the traditional sectors like business and law,
internships can now be found in emerging fields like technology,
sustainability, and digital marketing. This broader range allows duals to
explore diverse career options and gain exposure to new industries.
❖ Duration and Flexibility
Internship durations have become more flexible, accommodating the needs
of both interns and employers. While some internships still follow the
traditional summer or semester-long format, others may be part-time,
project-based, or even remote. This flexibility allows individuals to fit
internships into their schedules and gain experience while pursuing other
commitments, such as classes or part-time jobs.
❖ Increased Emphasis on Compensation
There's a growing recognition of the importance of compensating interns
for their work. While unpaid internships still exist, many organizations
now provide financial compensation to interns, acknowledging the value
of their contributions and the need to support them financially during their
internship experience.
❖ Focus on Diversity and Inclusion
Internships are increasingly viewed as opportunities to foster diversity,
equity, and inclusion within organizations. Companies are actively
working towards providing equitable access to internship programs for
individuals from underrepresented groups. They seek to create inclusive
3
environments where interns from diverse backgrounds can thrive and
contribute their unique perspectives.
❖ Digital Transformation
The digital era has brought significant changes to the internship landscape
as well. Remote internships have gained popularity, allowing individuals
to intern with companies from anywhere in the world. Virtual internship
programs offer flexibility, eliminate geographical constraints, and foster
global collaboration.
These are just a few highlights of the evolving nature of internships. Internships
are now better recognized as a pathway for personal and professional growth,
offering individuals a chance to bridge the gap between education and
employment. By adapting to the changing needs of both interns and employers,
internships have become more valuable, inclusive, and impactful in today's
dynamic job market.
1.2 AIMS AND OBJECTIVE OF THE INTERNSHIP
1.2.1 Aims
The aims of an internship can vary depending on the organization and the
individual's goals. However, some common aims of internships include:
❖ Skills Development
One of the aims of internships is to provide individuals with the
opportunity to develop and enhance their practical skills. Interns can apply
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the knowledge they gained in their studies to real-world situations, gaining
hands-on experience in their chosen field. This can include technical skills
specific to the industry, as well as transferable skills like communication,
teamwork, problem-solving, and time management.
❖ Career Exploration
Internships serve as a way for individuals to explore different career paths
and industries. They can get a firsthand experience of what it's like to work
in a particular field, helping them clarify their interests and goals.
Internships allow individuals to test the waters, understand the day-to-day
responsibilities of various roles, and make more informed decisions about
their career paths.
❖ Networking and Professional Connections
Internships provide a great opportunity to build a professional network. By
working alongside professionals in their field of interest, interns can
establish connections that may be valuable for future job opportunities,
references, or mentorship. Networking during an internship can open doors
to potential employment or collaborations in the future.
❖ Resume Building
Another aim of internships is to enhance an individual's resume or CV.
Having internship experience demonstrates to potential future employers
that the individual has practical skills, work experience, and the motivation
to learn and contribute. It can make a candidate stand out in a competitive
5
job market and increase their chances of securing employment after
completing their studies.
❖ Industry Insights
Internships aim to provide individuals with insights into the specific
industry they are interested in. It allows them to gain a deeper
understanding of industry trends, challenges, and opportunities. By
working directly with professionals in the field, interns can observe and
learn from their experiences, broadening their understanding of the
industry landscape.
❖ Personal and Professional Growth
Internships serve as opportunities for personal and professional growth.
Interns are exposed to new challenges, learn to adapt to different work
environments, and develop resilience. They can also gain a better
understanding of their strengths, weaknesses, and areas for improvement.
Internships provide a platform for self-reflection and self-improvement.
Overall, the specific aims of an internship may vary depending on the
organization, industry, and individual goals. It's important for interns to
communicate their expectations and goals with their supervisors or mentors to
ensure a mutually beneficial experience.
1.2.2 Objectives of Internship
Totally, let's dive into the objectives of an internship. The objectives are like the
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big goals that both you, as an intern, and the organization offering the internship
hope to achieve. These objectives guide the whole experience and help everyone
get the most out of it. Here are some key objectives;
❖ Hands-On Learning
One major objective is to provide you with hands-on learning in a realworld
setting. Instead of just reading textbooks or listening to lectures, you
can roll up your sleeves and actually apply what you've learned. This
practical experience can be a game-changer when it comes to
understanding how things work in your chosen field.
❖ Skill Enhancement
Internships are like skill boot camps. The goal is to enhance your skills,
whether they're technical skills specific to your field or those super useful
soft skills like communication, problem-solving, and teamwork. You'll be
amazed at how much you can grow in just a few months.
❖ Career Testing Ground
Internships are like a test drive for your career. They let you explore a
specific industry or role before you commit to it fully. It's like trying on
different hats to see which one fits you best. You might discover a passion
you never knew you had, or you could realize that a certain career path isn't
quite what you expected.
❖ Networking Magic
One sneaky cool objective is networking. You get to meet and work with
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professionals in your field, and that's gold for building your professional
network. These connections can open doors for future opportunities,
whether it's a job offer or advice on your career path.
❖ Boosting Your Resume
A big objective is to give your resume a boost. Think of your internship as
a shiny badge of honor you can proudly display. Employers love to see that
you've got real-world experience, and it can give you a leg up when you're
competing for jobs after you graduate.
❖ Industry Insights
Internships are like backstage passes to the industry show. You'll get to see
behind the scenes and understand how things really work. This insight can
help you understand the industry's challenges, trends, and opportunities,
which is like insider knowledge you can use down the road.
So, in a nutshell, internships are about learning, growing, testing the waters, and
building a solid foundation for your future career. Remember, each internship
might have its own specific objectives, so have a chat with your supervisor or
mentor to make sure you're on the same page about what you want to achieve.
1.3 DEFINITION OF SOME KEY TERMINOLOGIES
➢ Credit Union
It is a financial cooperative similar to bank but it is owned and controlled by
its members.
8

➢ Loan
It refers to the amount of money borrowed by an individual to be repay
within a specified period of time. It is usually repaid with interest of the
principal amount.
➢ Overdraft
This is a situation where an individual more than what is in his/her account
➢ Amortization
This is a series of payment made for the settlement of a loan. It can either be
constant or varied depending on the case.
➢ Loan Amortization Schedule
This is a table which shows how a debtor’s debt is being decrease as his/her
payment is being made over a period of time. That is, it summarizes the total
debts repayment in form of a table.
➢ Repayment Capacity
It measures the credit worthiness for a borrower, given as a percentage.
➢ Creditor
This is an individual or an institution to whom a debt is owed.
➢ Debtor
This is a person or an institution which is liable for a debt or who owes
another.
➢ Surety
This is an individual who guarantee repayments for another.
9

➢ Accounting
Accounting is the process of identifying, collecting, analyzing, recording
and interpreting financial data which enables users of the information to pass
informed judgment.
➢ Accounting Information
It refers to the financial statements generated through the process of bookkeeping
and accounting
➢ Book-Keeping
It is the process of recording a company’s financial transactions into
organized accounts on a daily basis.
➢ Profit and Loss Statement
It is a statement which shows the net profit or loss realized by an enterprise
for a particular year ended.
➢ Balance Sheet
It is a financial statement which shows the patrimonial situation of an
enterprise as at a given date.
➢ Petty Cash Book
It is an impress system where cash are allocated to take care of day-to-day
business transactions.
➢ Depreciation
This is the fall in the value of a fixed asset. For example, machinery, vehicles,
fixtures and fittings, goodwill etc.
10

➢ Ledger
It is a book in which the monetary transaction of an account is recorded and
totaled in a form of debit and credit.
➢ An Account
It is a table which records flows of same nature affecting the balance sheet
items.
➢ Trial Balance
It is a table use to test the accuracy of the balances from the ledger.it has both
the credit and the debit sides where balances are entered.
➢ Credit
It represents the right-hand side of an account where exit or outgoing values
from the account are recorded.
➢ Debit
It represents the left-hand side of an account used in recording all entries into
an account or all items that comes into the account.
➢ Journal
It is an accounting document which records daily transactions of an
enterprise in a chronological order.
➢ Bank Account
It is a financial account kept by an account holder that records transactions
between the bank customer and a financial institution.
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➢ Bank Statement
A bank statement is a detail analysis of the transactions of a depositor’s
account issued by a bank, describing the activities that are affecting his/her
account. A bank sends this statement to show the state of an enterprise’s bank
account.
➢ Bank Reconciliation Statement
It is a document used to reconcile the balances of the bank account kept by
the enterprise and the bank statement.
➢ Share
It is a disposition of cash allotted to members to create membership.
➢ Member
An individual who belongs to a credit union, usually an account holder.
➢ Passbook
It is a book in which members records of deposit and withdrawal from
his/her savings and deposit account are registered.
➢ Assets
This refers to what an individual or a business owns.
➢ Liabilities
This refers to what an individual owes to others.
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CHAPTER TWO
PRESENTATION OF THE ORGANIZATION
In this chapter we will be looking at the background history of the Credit Union,
Our Vision and Mission Statement, an overview of Cameroon micro finance
industry, Goods/ Products provided at the credit union, Organigram and the
various departments and their Functions in the Credit Union.
2.1 HISTORY OF BAMENDA POLICE COOPERATIVE CREDIT UNION
LTD
The Bamenda police Cooperative Credit Union Limited “MFI” CAT 1, created in
1985 by
a group of devoted co-operators is a savings and credit cooperative owned and
managed by its members. It operates on very sound cooperative principles.
BAPCCUL which has been bearing golden Fruits in the Nkwen Land was started
by drivers of Nkwen park residence in Ndamukong Street in 1985. The union
started as a discussion group and the minimum amount to be contributed by each
member was fixed at 100 FRS (one hundred francs) and shares per member
were 1,000 FRS (one thousand francs). Total amount contributed for the first day
was 13,600 FRS (thirteen thousand six hundred francs). The group was opened
to the general public especially to the inhabitants of Ndamukong Street. Most
people were encouraged to join the group and the first president was Mr. Wankwei
Martin Forkara
The first General Assembly of the group took place at Ndamukong Hall on the
29th of March 1987 and the name Bamenda police credit union came into being.
The
13
following were elected to manage the affairs of the union.
The union had a problem of a stable place of operations. The union was meeting
every Sunday at Pa Forbi’s house and later moved to Pa Tabifor George’s house
all at Ndamukong Street. Business was very slow and it was moved to Nkwen
Market but no solution. The growth rate was still very slow. Members decided
that a place should be looked along the road from Nkwen Market to Foncha Street
Junction. Finally, an office was opened at Mile II Nkwen at Pa Fonta’s house.
This did not last for long as the development of the town made the union to be
stranded again till when they had a site at Mile II Junction Nkwen. By the end of
1987, membership stood at 40 members with a total share savings of 1,700,525
FRS (one million seven hundred thousand five hundred and twenty-five francs),
total loan outstanding stood at 258,500 FRS (two hundred and fifty-eight
thousand five hundred francs).
The Bamenda police Cooperative Credit Union was registered with the Cameroon
Cooperative Credit Union League (CamCCUL) on the 13th December 1969. The
Current and Acting president of Bamenda police Cooperative Credit Union is
Mr.Mousa Shey Nfor.
2.2 VISION AND MISSION OF THE ORGANIZATION
2.2.1 Mission
BAPCCUL has a mission statement that states why it’s out a micro finance
institution. This statement defines a line path for BAPCCUL and also prevents it
14
from stepping out of its targets. This mission statement reads as follow;
“TO PROVIDE FAST, INNOVATIVE AND QUALITY FINANCIAL
SERVICES AT LOW AND AFFORDABLE COST TO OUR MEMBERS IN A
TRANSPARENT AND FLEXIBLE MANNER”
2.2.2 Vision
Our Vision is to improve on the living standards of our members through the
provision of innovative and affordable financial services in a sustainable manner
and to maintain a strong presence in the micro-finance sector in Cameroon.
2.2.3 Cooperative Values
➢ Satisfaction of our members
➢ Professionalism
➢ Innovative
➢ Transparent and Sustainable
2.3 AN OVERVIEW OF THE CAMEROON MICROFINANCE
INDUSTRY
2.3.1 General Landscape
According to the World Bank’s Global Financial Inclusion (Global Findex)
Database. Only about 15% of Cameroonian adults (over age 15) held an account
with a formal financial institution in 2011, which compares favorably with some
other CEMAC-Countries, but is far below the average 1or Sub-Saharan African
or lower-middle- Countries. Microfinance institutions (MFI’s) play crucial
15
Services to the unbanked; the majority of Cameroonian that saves money do so
through an MFI of saving club. After a period of unbridled expansion, in the late
1990’s and early 2000s (with up to 800 legal and illegal MFIs in operation and a
series of bankruptcies), the sector is gradually being formalized under the
direction of national and regional authorities, in an effort to restore public
confidence further expand the sector’s role in the economy. According
to MFI there were 407 MFIs in Cameroon, most of which are savings and loan
co-operatives (S&L’s) Or Credit Union (CUs, category-1 MFIs; 371), followed
by limited liabilities companies (LLC’s categony-2 IMFs, 3) and credit-only
institutions (category-3 MFI; 4). However, the market is fairly concentrated
towards a few large MFI networks, which increasingly compete with Commercial
banks.
2.3.2 Financial Inclusion Highlight
The concentrated towards The Cameroonian authorities in 2013 launched
a microfinance strategy and ordered Banks and MFI to publish data on effective
interest and usury rates. To further improve transparency, average effective
interest and usury rates for different type of loans (both from commercial banks
and MFIş) are regularly published in newspapers. However, the National
‘strategy lacks specific commitments and there has been little sign of progress on
implementation, which is partly a reflection of wider policy inertia in the country.
Furthermore, implementation of regulation on effective interest and usury rates
16
is hindered by confusion about what it actually covers. In an attempt to restore
confidence in the microfinance sector and avoid the type of frauds and
bankruptcies that have Undermined the sector’s reputation in the past,
the Commission Bancaire de Afrique Centrale (COBAC, the regional regulator)
has continued to crack down on unlawful MFI and has lightened penalties for
those failing to comply with reporting requirements.
2.3.3 Challenges
Notwithstanding these efforts, usage of financial services (including that of
mobile banking) remains low. This partly steams from social and cultural factors,
but is also a reflection of a wider distrust of activities-including formalized
financial transactions that could be traced by financial authorities. The main risk
weighing on the sector include the absent of credit bureau or of any process for
exchanging information on those with poor payment records. Weak supervision,
largely as a result of capacity contains on COBAC, as well as poor co-ordination
with national authorities, are additional risk for financial inclusion.
2.4 FINANCIAL PRODUCTS/SERVICES PROVIDED BY THE
ORGANIZATION
BAPCCUL being a financial institution and a Credit Union, provide to
its members individual, businessmen and the society at large the following
products and services;
17

❖ Share Account
To be a member you must buy a minimum of 75 shares (1.000 FRS per
share equivalent to 75.000 FRS at any one time, all members must have
equal shares. However, the share can only be withdrawn at the closure of
the account.
❖ Individual Savings Account
Money saved in this account is an investment and therefore Earns dividend
at the end of the year. Withdrawals from this account require a 5 days
Notification. However, prompt withdrawals attract a 2% charge.
❖ Deposit Account
In this account, you can withdraw any moment without any notification. It
is good for members who do withdrawals and Deposits constantly,
businessmen Particular.
❖ Group Savings Account
Savings in this Account earn dividend at the end of the year. Withdrawals
from this group account do not attracts any charge, no notification.
❖ Salary Account
This account provides you with the opportunity to receive your salary at
the Credit Union. Checks are provided to holders of this account to ease
payments.
❖ Minor Account (Under 18 years of age)
This Account is opened by parents to save for their Children. Here when a
18
child is delivered, an Account is immediately opened for the child to
Enable the parents save regularly for his/her Education. This account
permits you to prepare His/her education well ahead of time.
Savings and withdrawals in this account are free of Charges. No
notification.
❖ Anniversary Account
This account is opened for any project or event which you want
to achieve at a particular time. Particularly for those who do not want to
take loans in order to achieve their projects. Here you save until the
Amount budgeted for the event project is Realized. Savings and
withdrawals in this Account budgeted for the event project is realized.
Savings and withdrawals in this Account are free of charges. No
notification.
❖ Term Deposits
Blocked saving for an agreed Period of times. Interest is negotiable
Depending on the market trends and paid-up Front.
❖ Islamic Savings Accounts
Savings accounts that yield no interest. Savings and withdrawals in this
account are free of charges. No Notification.
❖ Loan To Members
BAPCCUL offers various loan Facilities to its members ranging from
Overdrafts, short- and long-term credit facilities at very affordable interest
19
rates and durations. All conditions and procedures are well elaborated in
the loan policy.
❖ Agricultural Loans
These loans are given to Farmers for various production purposes. Contact
our agric. loan officer for more details.
❖ Risk Coverage Fund
This is a free insurance coverage offered to members of BAPCCUL in case
of death or disability. Here, member’s savings are covered up to a
maximum of 7.000.000 million while loans are covered up to a maximum
of 2.5million fcfa.
❖ School Fees Loan
Special loan packages designed to meet up with education needs of your
family.
❖ Daily Collection Services
A mobile trained agents assist you to mobilize saving for precautionary or
speculative purposes on daily bases so as to avoid unnecessary spending
within the month.
2.5 Membership of BAPCCUL
You need to apply for membership through an application form of BAPCCUL. The
following conditions when fulfilled will definitely grant you membership, good
character, not be active in detrimental activities to the cooperative credit union.
20
Applicants nominate next in kind, signs the BAPCCUL members register and buy
or obtain membership documentation and gadgets. Each member buys at least
50 shares with par value of 1000 FRS. This is paid back in case of withdrawal of
membership. A registration fees of 2000 FRS for all accounts both Individual and
Group or Corporate accounts. Birth certificate for juniors, alongside a signed NIC
of parent/guardian for minors. Now as a member, save regularly, borrow wisely
and repay promptly.
2.6 THE ORGANISATIONAL STRUCTURE OF BAPCCUL
The organization has been structured in a hierarchical manner beginning from top
level to the lowest level of work. This will be seen in the form of a chart. This
chart is simply a diagram which shows the line of authorities and responsibilities
in the organization. Despites the hierarchical structures of this institution, each
worker actively take part in the work, playing their roles in the realization of the
business objectives. This chart will be seen below.
21
Figure 1: Organigramme of BAPCCUL
22
2.7 DEPARTMENTS AND THEIR FUNCTIONS
❖ The General Assembly
These are all the members who have shares with the union. They are the
owners of the union and each of them is entitled to a minimum of 25 shares
that is 1000 FRS each. They have voting rights and they vote Board
members of the various committees at the AGM and have the right to be
heard in every general meeting. They are the final decision makers of the
organization
❖ The Board of Directors
They are the decision makers of the organization and are elected by vote
during the AGM. They take decisions in the union and see into it that the
union functions properly as required by the members. They also have the
powers to employ and dismiss workers of the union.
❖ The Supervisory Committee
They supervise the management of the union and see into it that the work
given to them is effectively done. They also ensure that the union’s policies
are properly implemented. They are the members of the union, appointed
by the board of directors.
❖ The Youth Committee
They are appointed by the Board of Directors of the union to go out of the
union and see into meetings, groups and association on their functioning
so as to open their accounts with the union.
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❖ General Manager
The Manager takes part in the day to day running of the union. The
Manager is there to make sure that the activities of the union functions well
and achieves the goals of the union. The Manager is more of a problem
solver and not a problem maker. The Manager receives instructions from
the BOD and channels down to their subordinates. They have an assistant
Manager who acts in the absence of the Manager.
❖ The Lending Department
This department is in charge of giving out loans to members who are in
need so as to finance their business activities or contracts. Members receive
these loans on a particular interest payable on the agreement as stated in
the loan application form. The activities of this department are mainly
carried out by the loan officer, who carries out pre-studies on all loan files
and also handles loan delinquency situations in the union by doing follow
ups with members whose loans have become delinquent.
❖ The Accounting Department
This department is made up of the accountant, the accounting clerk/cashier.
They handle almost all cash transactions in the union, which is both cash
inflows and cash outflows. They are responsible for the preparation of
financial statements of the organization at the end of each financial period.
They also record all financial transactions and handles tax declarations.
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Updating all accounts and ensuring that all the receipts and backing
documents are properly filed.
❖ Secretary
The secretary is responsible for taking down of minutes at meetings such
as the Annual General Meeting (AGM) and staff meetings. The secretary
is also responsible for the typing of the attestations for the items that will
be signed by the manager.
❖ Marketing Department
The marketing department is responsible for adverts. Advertising the union
and making it known to the general public.
❖ Internal Control
The auditors of the union see to it that the recording carried out by the
accountant of the union where properly done. They match all records with
the respective source documents kept by the accountant. Their findings are
forwarded to the BOD.
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CHAPTER THREE
ACTIVITIES CARRIED OUT BY THE INTERN
In this chapter I will be talking on what I learned in the Loan department, the
accounting department, the member service department and the Public Relation
department.
3.1 THE LOAN DEPARTMENT
As the need of individuals, members, businesses and the society at large increase
with limited means, there is a greater necessity for the existence of the loan
department in credit unions to meet up with the provision for f debt capital to
these set of persons.
This department has as the following as its main functions;
• Granting of loans in form of overdraft or as a main loan (actually loan).
• Analysis of collaterals for loan approval (i.e., either a surety/guarantor,
fixed assets (immovable fixed assets).
• Advising members about loan contraction, by calculating their repayment
capacity and coverage ratio.
Before the loan is finalized the following documents will need to be filled:
➢ Application for loan form, which is attached to an authorization from the
general manager.
➢ Loan information form (loan above share savings), which contains all the
information about the borrower/member and his/her surety. And also, the
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amount, interest rate and the repayment duration, so as the constant
payments to be made.
➢ Loan within share savings application form, for member going in for loans
within their savings.
➢ Surety Bond, which is a document which covers the surety and contains
the name of the Creditor, Debtor and the Surety.
➢ Collateral form, which contain information about the collateral, the
estimated value, the market value and the coverage ratio of the collateral.
The loan department at BAPCCUL is being headed by a professional known as
the Chief Credit Officer and he makes sure loan officers carry out these
functions effectively.
While at the loan department, the following activities were carried out
Examination of the various types of loan granted by BAPCCUL, that
❖ An Overdraft
These are loans granted to member with salary account also known as
advanced salary. It is granted mainly to civil servants, at an interest rate of
5% per month and it can also be granted to non-civil servant on special
considerations.
❖ Loans Above Share Savings
This is loan granted to members above their share savings with a maximum
duration of 72months (6years) which is being backed by a surety and the
surety must constitute a member and has an account and also there must be
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a certain sum of money in it. The surety is also being backed by a document
known as the surety bond, after accepting to cover the loan in case of the
borrower becoming delinquent. At the start of acquiring a loan, the debtor
must purchase a loan information form at the cost of 1.000FCFA and after
the loan has been approved, a loan contract is being filled the last.
The interest to be paid will be based on the amount he/she is pledging for;
• Interest of civil servant is 1.5% for loans below 2.000.000FCFA, and 1.6%
for non-civil servant per month
• Loan of 2.000.000FCFA and above bares an interest rate of 1.4% per
month and a tax rate of 19.25%, which is levied on the interest on the loan.
❖ Loans Within Share Savings
It is covered by the shares and savings of members and the interest rate is
calculated at 1% monthly.
❖ Short Term Loans
This type of loans is granted mainly to civil servants at a rate of 2%
monthly. The duration runs from 3 to 6 months, maximum. Charges are
being collected and paid-up front. Also, short-term loans are given to
member on special considerations. This is based on their repayment
capacity.
At the end of the repayment period, the members loan schedule also known as the
amortization schedule has to be prepared, and presented to the member to show
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how his/her repayments is being reduced at the end of each period, in the case
any complication arising.
Before the loan process of loan granting takes all this turns, five key principles
most be considered before issuing credit to any member or civil servant or
pledger of BAPCCUL:
➢ Character
Here, a thorough analysis is done to see if the member is deemed worthy.
That is if the member saves regularly or not and also the credit history of
the member examine before the loan is being approved.
➢ Capacity
Will the member be able to repay back the loan? to know for sure the
repayment capacity of the member needs to be calculated.
➢ Capital
A keen examination of the members’ assets and liability is being examined.
But in this case, we will mainly consider the member’s assets and not
liabilities. For a member of BAPCCUL he/she must have at least 10% of the
amount in his saving account for which he/she is pledging for and for a
civil servant, he/she must have at least 20% in his/her savings account.
➢ Collateral
Collateral helps the borrower to secure the loans. It gives the lender the
assurance that if the borrower defaults on the loan, the lenders can
something back by repossessing the collateral. The collateral can be an
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immovable asset, a guarantor/surety. In cases where the collateral is an
immovable asset, the coverage ratio of the asset has to be calculated,
given as. A reasonable cash ratio should be from 20% and above.
Note: The collateral should be far greater than the loan, so as to cover the loan
and other secondary expenses obtained when recovering the loan by the loan
recovery officers.
➢ Condition
In addition to examining income, the loan officer looks at the general
condition relating to the loan. This may include the length of time than an
applicant has been employed at their current job, how their industry or
occupation is performing, and future job stability. Therese influences the
loan officers’ decision.
3.2 THE ACCOUNTING DEPARTMENT
This is the most important department at the Bamenda police cooperative credit
union and
other credit union out there; it is being headed by a Chief Accountant who
coordinates the activities of the branch accountant.
The Chief and Branch accountant have the following functions;
• Analyzing and recording of daily transactions of the union.
• Preparation of the financial statements like the profit and loss stamen,
balance sheet, cash flow statements after all adjustments have been made.
• Tracking of cash movement in and out of the credit union.
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• The accountant also carries out stock valuations and ensures that the stock
balances are right.
Presentation of financial statements at the end of a given financial year, i.e., the
profit and loss account, the balance sheet and the cash flow statement.
They informed management about business performance and provide
recommendation about the running of the credit union by predicting future
financial needs.
Activities carried out while at the accounting department:
Presentation of a petty cashbook; first of all, a ledger was collected from the petty
cashier containing expenses incurred during the last month of July, alongside a
petty cash voucher. It was handed over to the accountant then we gave it to me, I
successfully presented the cash book and at the end I discovered that what was in
the ledger didn’t tie up with the petty cash voucher. I then consulted the
accountant and everything was rectified and I then determined the balance to be
reimbursed to the petty cashier to carry forward to the month of august so to take
care of expenses of the month.
Reconciliation of bank statement between Bamenda police Cooperative (main
branch) and
UBC bank. It was quit and interest scenario here, members who whose name
appeared twice with different amounts had to be verified and look for the
differences between the amounts and recorded on the bigger side and member
whose name appeared twice had to be ticked to show that there was a recognition
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of the transaction between the two parties. After all is done the bank reconciliation
was presented and the journal entries were made.
A. Journal Entries
• Purchases and the depreciation of assets.
• Stocks
• Financial statement.
B. Calculating and Recording of Accounting Entries
• Cheques discounted
• Bills of exchange.
• A computer bought for 500,000 FRS depreciated at 10% for 3years and
sold for 35000 FRS
• Bought goods for 477,000 FRS (VAT inclusive).
• Bought shares in NFC bank 200,000 FRS, by cheque.
• Bought land for 50,000 FRS, paid by bills of exchange.
• Paid electricity bills by cash 1000, 000 FRS (VAT exclusive).
• Analysis of VAT credit.
• Perpetual inventory system and the periodic inventory system.
C. Presentation of The Profit and Loss Statement and The Balance Sheet from
Passed Records
D. Calculation and interpretation
• Working capital
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• Acid test ratio
3.3 THE MEMBER SERVICE AREA
This is a department that has as its main responsibility of tracking cash
transactions though similar to the public relation area in terms of post
responsibilities. It is under the control of the branch manager and tasks are being
executed by professionals known as the member service clerks.
Functions of the member service clerk
• Updating members’ passbooks.
• Informing, reminding and educating members are about deposits,
withdrawals, loans. and interest on loan obtained
• Calculation of interest on members’ withdrawals. That is withdrawal of
more than 100,000 FRS without any notification attracts a 2% rate of
interest.
• Verification of members’ signatory card to ensure it matches with what
is in the system (account).
Activities carried out at the member service are;
• Assisting of members in filling their withdrawals and pay-in slips.
• Updating of members passbooks.
• Verifying and tracking of members transactions.
• Verification of members account and signatory cards.
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3.4 THE PUBLIC RELATION AREA
This is a department in the Bamenda police Cooperative Credit Union which has as
its
main function to transmute a mere customer, into an identifiable member of the
cooperative.
It is being headed by the branch manager, and executed by a professional known
as the public relation officer.
The officer has as its main function to;
To register and create membership at BAPCCUL, by transforming a mere
customer
to a member. Through the filling of necessary membership documents and
creation of accounts.
In becoming an identifiable member of the union, the following must be done
✓ Filling of a membership application form, which contain all detail
information about the member, including his/her account number. It can
also in either a group account or an individual account.
✓ Signatory card, which has the name of the member, passport size photo and
signature. It also contains the name his or her beneficiaries, their passport
size photos and signatures.
✓ Passbook, entailing the member’s saving details which have to be updated
regularly. To fully become a member of BAPCCUL, he/she must pay a sum
of 85,500 FRS, 10,000 FRS for building construction and 500 FRS for
passbook. The remaining 75,000fsr goes in his/her saving account and
interest will be paid on that amount.
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3.4.1 Functions of The Public Relation Officer
• Public relation officer bridges the gap between the cooperative and
outsiders.
• Preparation of roles and regulations of membership and ensure sufficient
information are available for members.
• Educating members about membership
• Mailing of incoming and out-going mails of the credit union to other credit
unions of similar nature.
Activities carried out while at the public relation area;
• Filling of membership form, signatory card and passbook of new members
• Snapping and cleaning of member half passport size photos and the
photocopying of the necessary document for account creation.
• Updating of members passbook
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CHAPTER FOUR
EVALUATION OF ORGANIZATION
In this chapter I will be evaluating the organization using SWOT analysis of the
organization.
4.1 THE SWOT ANALYSIS OF THE BAPCCUL COOPERATIVE
CREDIT UNION
4.1.1 Strengths of The Credit Union
The Bamenda cooperative is created by members who pool their money into the
organization and own a portion of the entity’s shares. The union uses the members’
funds to provide loans and other financial products/services, and any income
generated is used to pay dividend to members or fund projects that benefit the
members and their interest. Such practice creates a strong feeling of trust among
members, and they’re generally confided that the organization is working towards
their best interest. The union can build on the members’ trust to streamline its
product and services.
4.1.2 Weaknesses of The Credit Union
Constants network breakages during transitions processing, slow rates of data
transmission and transmission bandwidth, which often keep members
transactions on hold, thereby interrupting and slowing down their daily business
activities.
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4.1.3 Opportunities of The Credit Union
A higher percentage of BAPCCUL’s membership comprises of an aging
population, who are mostly the founders of the organization. Given the prevailing
state of their membership, it has the opportunity to attract young members into
membership.
Bamenda police cooperative needs to leverage technological innovations to
provide
products and services that younger customers desire from their financial
institutions. The innovations may include offering mobile banking and banking
apps that millennial can access from their smartphones or tablets.
4.1.4 Threats of The Credit Union
BAPCCUL operates in a business environment that is dominated by large
commercial banks. Such a highly competitive environment threatens
their existence and their ability to continually provide lower fees and high interest
rates on savings to its members. Operating as non-profit entities presents threat
to them since they need to compete with large commercial banks. Larger financial
institutions report billions of francs in profit every year, allowing them to invest
in new locations and infrastructure and even acquire new technologies, there in
jeopardizing their survival.
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4.2 EXPERIENCE AT THE BAMENDA POLICE COOPERATIVE CREDIT
UNION
4.2.1 Positive Experiences
During my one-month internship at the Bamenda police Cooperative credit union I
gained
a lot of experiences positively such as;
• Workers at the credit union are time conscious of work. By 8:00 AM most
of the employees are already on sit!
• Employees at the credit union are so friendly to their members. This helps
to build employees members relationship in the union.
• In the credit union most employees are flexible. For instance, an employee
working at the public relations department can as well work at the member
service department and an employee at the member service department can
as well work at the public relations department. Which makes work flexible.
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CHAPTER FIVE
RECOMMENDATIONS AND CONCLUSION
In this chapter I will be giving the recommendation to the management of
Bamenda police
Cooperative Credit union and to the University Administrators and finally the
conclusion.
5.1 RECOMMENDATIONS
5.1.1 Recommendation to The Management
• The credit union should establish a social media plat form so as to reach a
wider span of audience thereby creating massive awareness of the
existence and the benefit of being a member at their financial institution.
Such as FACEBOOK where it will be known nationwide, touching every
sector of the economy and even beyond.
• Also, the cooperative should build an online banking app where members
can deposit and withdrawal at the comfort of their homes, bur certain
guided roles should be established;
• Creating of membership should be done at their premises.
• Members wanting to withdraw or deposit or transfer, a maximum limit
should be set for such transaction. If about the précised amount the member
would have to move their premises.
• In case of loan application, it should also be done at their premises.
• The normal system will still be in operation, for members who can
access/afford technological aspect of their banking.
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• Most importantly they should try as much as possible to elevate their
networks.
5.1.2 Recommendations to The University Administrators
More application of field knowledge should be done by the lecturers so as to
blend in field work and theoretically aspects being thought at school, so as to
bridge the gap between the two dimensions at a certain percentage before they go
on internship. Thereby creating a better understanding in the discipline, they have
chosen to study and their applicability in the real-world milieu.
Internship should be strictly implemented and a thorough investigation should be
done to ensure that when it’s time for students to go on internship, there should
be an approval from the financial institution that indeed they are on internship.
5.2 CONCLUSION
To conclude, as per the time spent during the internship period ,I realized how
important it is to have theoretical background knowledge of the way the micro
finance institutions functions in Cameroon and it is also to my advantage to blend
the experience gotten from this micro finance institution so as to also know how
the financials system and financial institution cooperate And these financial
institutions are therefore catalyst of economic development because they provide
credit to economy. Financial intermediary like micro finance institution therefore
tap financial resources from diverse sources in the economy and make it
contribution to the growth process or the property of industrial agriculture sector
40
of the economy. I am very happy and proud to say the internship program was a
good one.
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REFERENCES
Manual of the organization of BAPCCUL
The Brochure 5f BAPCCUL
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APPENDICE
Appendix 1
Appendix 2