WELCOME PARTICIPANTS !

FINANCIAL MANAGEMENT
May 28-29,2013

Nominal Duration : 28 hours

COURSE DESCRIPTION

This course covers the basic competencies required of a members of the Board of Directors and the Treasurers in overseeing the management of the financial resources of the cooperative

LEARNING OUTCOMES ( LO)

LO1 Explain the Basic concepts of Cooperative financial management L02 Explain the Elements of the accounting system for cooperatives. L03 Interpret and analyze the Financial Statements of the Cooperative. L04 Apply P.E.S.O.S. and P.I.S.O . Standards in evaluating cooperative performance. L05 Explain the Basics of Budgeting.

LO1:EXPLAIN THE BASIC CONCEPTS OF COOPERATIVE FINANCIAL MANAGEMENT

BASIC CONCEPTS SOURCES AND USES OF FUNDS

FINANCIAL POLICIES

BASIC CONCEPTS
FINANCIAL MANAGEMENT ? Planning Organizing Directing Controlling . financial activities

procurement

utilization

MONEY

Financial Management is also application of the 5 General Principles of management :

Planning Organizing Leading Controlling
Staffing

FINANCIAL MANAGEMENT
Principles: 1.Planning : Preparation - Decision making process Forecast - Develop Enterprise Setting up vision ,mission and Strategic planning Scheduling

- Forecasting the Long term and medium term plans

FINANCIAL MANAGEMENT
2.ORGANIZING :
- to form something , - To bring people together into a structured group - to apply efficient working methods to make somebody work effectively

Principle: -Manpower Recruitment Training and development -Job and person matching - Limitations of Officers and employees on control and measures

FINANCIAL MANAGEMENT ?
3.Directing /Leading: - Supervise and monitor the work - Instruct what and how to do - Focus on something
Principle: -Understanding human/ leadership behavior - Understanding needs and motivation - Group dynamic - Communication

FINANCIAL MANAGEMENT ?
4.CONTROLLING : - Exercise power or authority - Restrain or limit, restrictions - Regulate the financial affairs of a business
- Control process and techniques -Information technology(IT) and adoption - Operations management - Resolving conflicts - Management of change - Organizational development

5 General Principles of management :

5.STAFFING: Operational Structure - Defines the Levels of management: authority , - top management responsibilities -middle management and -lower management accountabilities of the job .

Objectives of Financial Management

Generally ensure the following: Procurement financial Allocation resources Control

Objectives of Financial Management

Specifically, it aims to ensure : regular and adequate supply of funds . adequate returns to the shareholders depend upon the earning capacity, market price of the share, expectations of the shareholders.

Objectives of Financial Management

Specifically, it aims to ensure : - optimum funds utilization. safety on investment and adequate rate of return can be achieved. sound capital structure- composition of capital is balanced and maintained between debt and equity capital.

SOURCES AND USES OF FUNDS

USES SOURCES (Procurement) (Allocation) CAPITAL STRUCTURES MEMBERS BUSINESS OPERATION EQUITY PROPERTIES AND EQUIPMENTS LIABILITIES INVESTMENTS OPERATING EXPENSES FUNDS FINANCING PERSONNEL ADMINISTRATIVE

ROLES OF BOARD OF DIRECTORS AND FINANCIAL MANAGER

The 5 Principles of Financial Success

by Marilyn August - These Principles form a foundation to build and expand your money consciousness. - The principles are guidelines for the support of clear financial intentions - They are powerful and potent transformational true wealth principles. True wealth means having enough money to : live a joyous, vibrant, richly fulfilled lifestyle, a healthy vital body, and nurturing, loving relationships.

1st Principles of Financial Success

by Marilyn August
Complaining and blaming is a focus on the past, and worry is a fear of the future, neither of which generates money in the present Complain, blame and worry about money because it is a habit or feel empty mind Spending emotional time and energy . It drains energy that could be used productively to generate money.

Stop complaining, blaming and worrying about money.

2nd Principles of Financial Success

2.Eliminate the need to be right about receiving/ generating money. Most people insist on being right about the way the money is generated or received. It limits in some significant ways. A box is created around our financial well being that is defined by our beliefs, judgments, and assumptions.

3rd Principles of Financial Success

3. Be current and complete on all financial transactions.
Avoid unresolved financial matters, such as old debts, is like carrying around a ball and chain of the past. Stay up-to-date and pay attention to money details. Open and pay bills in a timely manner. Balance check books and keep your financial house in order.

4th Principles of Financial Success

Compulsive, impulsive spending usually leads to guilt and regret, giving the subconscious mind a powerful negative money message. Be a good steward of the resources .

4. Think before you buy or do not spend at all.

5th Principles of Financial Success

Communicate openly and honestly with yourself and others.
Many people get themselves into money stress rather than tell the financial truth to themselves and others. Willingness to see the truth, speak from the heart (without stories that keep the truth hidden), and with kindness and respect to others and ourselves makes it safe to have massive amounts of money.