Executive Summary

My internship was carried out at KUTCCUL Buea branch from the 1st of August to the 30th of August. The main aim was to gain working experience in the field of work and to be exposed to the working environment.

My main activities to assist members in filling their forms (loan form, pay-in-slip, withdrawal slip co-guarantee form, stamping of cheque booklet) and on-loan management, where I was able to study how loans are been acquired, recovered and the laws set in place by the credit committee to avoid delinquencies at KUTCCUL.

The main strength of the organization is the good working relation that exists among workers and the existence of qualified and competent staff. While the main weakness was that, work was put to a half when there is electricity power failure since operation are done using electronic machines.

I recommend that the organization should use an alternative source of power supply and employ two staffs as a helping hand for the branch office. It was a good experience working with the people of KUTCCUL because the staffs were so friendly and welcoming.

CHAPTER ONE

 INTRODUCTION

1.1 Background to the study

An internship is a temporal job that offers training and good supervision, other words used to describe it are: job training or apprentice.

Since different terms are used, one can say an internship is a work experience that offers guidance and supervision by a trained professional. The internship is usually organized with the main objective being to blend theory with practices. I started my internship on Wednesday the 1st of August and ended it on Friday the 31st of August 2018 making me a month on internship placement at KUTCCUL Buea.

They are specific objective such as acquiring working experience to gain entry into a full job etc. the higher institute of management studies like any other professional institution send out students on internship yearly to put into practice the theory learnt in school. This helps the interns to acquire practical and professional skills.

This report is based on a dynamic owned financial institution operating on sound cooperative and business principles. It trains students (interns) on various banking and accounting operations such as loan department, accounting department and membership department etc. in recording the business transactions.

1.2 Objectives of the internship

1. To help me develop skills in the application of banking and accounting to a practical work situations.
2. To identify the problem of a real-life business and come out with recommendations in solving this problems.
3. To blend banking and accounting theories with practice.
4. To identify the weaknesses of an organization and suggest recommendations to improve their performance.
5. To acquire the ethics of the accounting profession and help me develop a sense of responsibility.
6. To develop employment records that will enhance employability after studies and create contact and network for future needs.

1.3. Operational definition of terms

Accounting: This involves using the information records by book keeper in recording what is not yet recorded and preparing summary reports for the year in form of financial statement.

Balance Sheet: This is a financial statement which shows what the union owns and owes that is (asset – capital + liability).

Bank Statement: A printed document of the money put in to and removed from a bank account. It is summary of the deposits and withdrawals of a member.

Borrower: This is a member of the credit union and is called a borrower from the time he/she intends to take a loan from the union.

Credit union: This is a cooperative organization made up of a group of people having common bond in accordance with the provision of loads for the purpose of promoting thrift among the members and creating a source of credit for providence and productive purpose.

Collateral Securities: These are assets that are being used by members as a backup for loans taken in case of any defaulter.

Customer Services: They are the various ways by which an organization interacts with its customers.

Delinquency: This is a situation that arises when the deadline for loan repayment has elapsed. Meaning the lender had defaulted or not honoured some payments.

Deposit Slip: This is a document that shows the amount of cash and cheques made at the bank.

Income Statement: This is a financial statement that shows    Company’s financial performance over a specific accounting time period usually annually or semiannually by the union.

Interest: This is a reward for capital and also an amount paid to the bank for a loan taken by a member.

Loan Forms: These are cards used by the union to record information and transaction carried out by members, and it serves as a reference card.

Ledger Cards: They are cards used to record information and transactions carried out by members, and it serves as a reference card to the union.

Loan Portfolio: This covers all the headquarters and branches on their total number of loan granted to members.

Value Added Tax: This is a recent tax law levied on interest rates of all loans above two million which has a rate of 19.25% for all micro finance. The 2018 law for all microfinance institutions to now register for VAT.

Loan Application Form: This is a form that obtains the necessary procedures needed in receiving a loan from the union.

Loan: The money borrowed at an interest rate within a specified duration.

Loan Policy: These are principles that banks use to recover their loans.

Loan Recovery: The process or tactics used by the union to recover their loans.

Passbook: This is an individual booklet for members which carries their personal information and transactions carried out which the union has recorded for reference.

Micro Finance Institution: They engaged in producing financial services for low-income earners, self-employed, solidarity groups who seek access to banking relating services.

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