CHAPTER ONE

BACKGROUND OF THE STUDY

1.0        INTRODUCTION

Two sectors of the economy exist; they include private and the public sectors. All those businesses established by individual or group comprises the private resources produced for these activities are discretionally acquired and deployed by their owners or no assistance by the government. A profit is the paramount aim of such business.

The planning and controlling of financial resources. Co-operative organization by charter has responsibility for the economic and social development of their areas. The greatest challenge to co-operative organization is their ability to provide these services to the community adequately and satisfaction. A key factor is the ability of co-operative organization is in no doubt, the availability of funds. Unfortunately, the financial resources of the majority of co-operative be it, when compared against the needs to be met presents an unhealthy scorecard.

Financial management in the co-operative organization Uniuyo Co-operatives immediate responsibility is the chief executive, whose role is to advise and provide information to management on timely basis to aid decision making.

This is carried out through a plurality of process within the operation of the governments often described as financial system. A financial system includes accounting, audit, payroll, cash management, costing, financial reports, which is of great concern to co-operative fiscal administration, which deals with the policy, planning and control of financial resources and their allocation.