Statement on auditing standard defined internal controls, the whole system of controls, financial and otherwise, established by the management in order to carry on the business of the enterprise orderly efficient manner, ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and accuracy of the records.
Internal control and good accounting system ensure that controls and operating procedure are functioning efficiently in order to protect the bank from fraudulent manipulations, losses, errors and irregularities.
In view of huge investments by the community development Associations, organizational/societies, individual shareholders should be controlled, safe guarded, and made result yielding venture, The recruitment of a qualified internal auditor acts as a safety value in internal control. In recent times, defalcation, misapplication of depositors funds, inside abuse, theft of properly, and other types of financial improprieties have been found in our banks. Internal control and good accounting structures should assist to eliminate all the vices.
The urgent challenge facing this nation is the eradication of mass poverty.
BRIEF HISTORY OF UMUCHINAEMERE COMMUNITY BANKS
Umuchinaemere Community Bank Nigeria Ltd, situated at N0 5 Ikwuato Street, Uwani Enugu, was incorporated as a limited liability company and commenced business on 1st June 1995. The Bank came into being as a result of the determination on the part of promoters to introduce the first Catholic Community Bank in Enugu. It has an initial capital of
The ownership structure of the Bank are as follows, viz Catholic Diocese of Enugu 30%, organizations/Societies in Enugu Diocese 30%, individuals 35%, Director 5%.
The banks board of directors is composed of the Chairman and six other members. The day-to-day operation of the bank is the responsibility of the management team of five. The management team has developed banking and financial products and services to ensure maximum benefit to our people.
1.1 STATEMENT OF THE PROBLEM
The failure of many community Banks animated partly as a result of poor internal control and structure of the Bank. Over one thousand Community Banks were established but over three hundred Community Banks are distress.
1.2 OBJECTIVE OF THE STUDY
This research work is to be carried out with the objective of investigating or inquiring for the following:
1.3 SIGNIFICANCES OF THE STUDY
The study exposes the ownership structure, the accounting structure, and the potential effects of internal control. The study is also important as it appraise the problem of Community Banks and its recommendations. It also serves as a reference materials for operators, of the system with particular reference to its lending guilds and policies. It provides a springboard upon which other researchers could base.
STATEMENT OF HYPOTHESIS
The following hypothesis shall be tested by the researcher in the course of carrying out this research paper:
Hi: Accounting system and internal control have enhanced efficient management and control of resources in Umuchinemere Community Bank.
2. NULL HYPOTHESIS
Ho: Accounting system and internal control have not contributed towards the achievement of the overall goals of Umuchinemere Community Bank.
Hi: Accounting system and internal control have contributed towards the achievement of the overall goals of Umuchinemere Community Bank.
3. NULL HYPOTHESIS
Ho: Poor accounting system and internal control have not led to cash manipulations or fraudulent activities in Umuchinemere Community Bank.
Hi: Poor accounting system and internal control have led to cash manipulations or fraudulent activities in Umuchinemere community Bank.
1.5 SCOPE OF THE STUDY
The study of accounting system and internal control in a Community Banks covers all the community bank in Enugu State in particular and Nigeria in general. But due to the limited time factor and cost, the researcher decided to link the study to Enugu based Community Bank. In Enugu also, not all the Community Banks were visited, but since National Board for Community Banks (NBCB) usually conduct a feasibility study ion community banking system, the researcher rely mainly on them for most of the information.
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