Executive Summary

This report is based on an internship carried out at Tole Tea Cooperative Credit Union. The main objective of the internship was to blend accounting theory with practical. The Tole Tea Cooperative Credit Union is a micro finance institution and it was created in 1970 to provide savings account deposit account accordance with micro finance law and regulation in Cameroon, the main objective of the above is to make profit and give it members the best service the deserve and book keeping.

The focus area brings out details on and comparing between theory and practice. For examples, during the internship the intern did computerize recording of transaction which is different from the manual usually done in class. Also, the intern opens micro account and group account using the computer which is different from class work.

Tole Tea Cooperative Credit Union like any other organization has its strength and weakness, it has good banking software to improve on the skills of the worker, accountant have insufficient machines to meet up with the number of interns. For recommendation, the credit union should also make provision for some student to continue coming for more training at the Tole Tea Cooperative Credit Union and also provide accounting software which tend to encourage and motivate the accounting student to continue coming for more training.

CHAPTER ONE

INTRODUCTION

1.1 Background to Internship

This academic writing is a work-related experience for individuals who wish to develop working experience in certain occupational field. It is compelled to every students of higher institution of learning according to his or her arena of study at the end of internship to write a report. Obtaining educational knowledge from an institution is an important step to take but this can only be completed by accompanying the academic journey with real world experience through an internship which gives the intern or student a competitive edge.

An internship is a period of time during which a student or new graduate is given a chance to gain practical experience in a job related to his or her field of study. Without withstanding, in our fast developing and competitive world one can hardly succeed in business, education, and life in particular without financial, moral and material support from his or her comrade. Thus, the notion of cooperation is obviously seen in the activities of a credit union where by her members cooperate with one another to acquire loans for provident productive motives.

Nowadays there exist many financial institutions which either takes a form bank, micro financial institution. Never the less, they are all aimed at collecting deposits and savings from the public and in turn giving them out to the public in form of loans. In addition, these loans are with interest rates which vary between banks and micro financial houses; also, they receive commission from the public for services rendered. Although the interest rates and commissions charge by banks are for profit drives whereas thus of credit unions are to satisfy their associate.

1.2 Objectives of the study

The following include the aim of the internship.

1. To acquaint the intern with the working environment of the field.
2. To acquire more skill and techniques directly applicable to the intern field of specialty.
3. To blend the theory with practice that is class work with real life situations.
4. To gain good working habits or professional ethics needed at work place.
5. To create working relationship with employers at the job market.
6. To meet up with the requirements for the award of a bachelor technology in banking and finance

1.3 Definitions of terms

Capacity: This refers to the ability to pay; also, this refers to the sources of repayment. According by law 1/3 of member salary can be used to repay a loan with.

Collateral security: this refers to a document of titled that is use to secure a loan or a pledge for a loan in case of default.

Credit union: A credit union refers to a nonprofit making organization made up of person brought together by a common bond in accordance with provisions of law for the purpose of promoting thrift among its members and creating a source of credit to members for lucrative and productive purposes.

Delinquency: is a situation that arises when the date of payment of a loan passes the due date of repayment. Meaning more payment are passed and were not honored.

Lender; he or she is the person who signs the contract with the borrower from the amount to be loaned.

Loan Amortization, it is the payment made by the customer on amount loaned with the loan as principal and interest. The amortization is schedule by the institution and handed to the member to enable payment of loan.

Loan Application Form, it is a form that obtains the necessary procedures needed in taking a loan such as the information on the borrower on the amount to be loaned, signature and date of undertaking.

Loan Recovery, it’s the procedures in which a financial institution will take in other to recover the loan given to it members.

Loan: a loan refers to a contractual obligation between a lender and a borrower on an amount lend at a specific interest rate and at a specified duration.

Micro Financial Institution, it is an institution that is engaged in producing financial service to low income earning, self-employed, solidarity groups who seek access to banking relating service. They produce a forum through which funds are pulled together and provided to social groups; business initiatives to generate income and improved on the living standard of the people.

Needs, It’s the basic force that motivates people to do something that is getting customers to locate to the banking world and benefit of its services.

Outstanding Order, it is an order made by a member of the bank to his banker to effort payment to a name person on his behalf.

Passbook, this is a small book that is given to members when they become part of the credit union. The book contains all the transactions that a member will carry out the credit union including the members name and account number.

Share: this refers to unit of equal value in a company is divided and sold to raise money. Individuals who own share receive part of the company profit.

Surety: A person who accept responsibility if someone else does not pay loan or appear in court.

Withdrawal Slips, it is typically a presented private book at which must be filled out by a member in case of withdrawal.

CHAPTER TWO

PRESENTATION OF THE TTCCUL

This chapter focuses more on the historical background of TTCCUL, its main aims, objectives and the organization structure.

Definition of TTCCUL

TTCCUL is a micro financial establishment own and control by members for financial, material, social benefits of its members, TTCCUL is a registered under the banking Commission for Center African States (COBAC) decision No D-2001/05 of January 2001, Ministerial decision No. 00395/MINEFI date 20/08/2001 under law No 92/006 14th/8/1992 relating to the rules and regulation governing cooperative societies and initial groups in Cameroon that are affiliated to CAMCCUL.

2.1 Historical Background of TTCCUL

TTCCUL from its conception in 1970 is a micro financial institution of first category. The idea of TTCCUL originated from the pioneer president of the union late Mr. Akon who talks to potential member about the credit union and it’s far reaching benefits.

From the outset TTCCUL membership was drawn exclusively from the work of the Cameroon tea Estate. As day went by membership was then open to the general public so as to enhance the idea of credit unionism and better mitigate the need of the members. Presently the union operates in south west Region of Cameroon. They had their own building in 1996.

TTCCUL as of date has about 5000 members living in Buea and within the national territory of Cameroon. TTCCUUL has4 branches with its head office at Tole which went to operation 1970, the Molyko branch in 2001, the mile 16 Bolifamba branch in 2008 and the Wututu branch in Limbe 2013. TTCCUL has answered the call of today business by computerizing all her services in all her branches.

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