The Impact Of Cash Control System In The Pastoralist Societies: (A Case Study Of Ngo:Rongo Pasto:Ralist Council -A:Rusha Tanzania)

ABSTRACT

This research studies the impacts of cash control system on pastoralist

societies.

Cash is a vital resource for a not-for-profit organization. To maintain financial

viability, the organization must have enough cash to pay its bills. Accrual basis

financial statements can report an excess of revenues over expenses but this

does not necessarily mean that there is cash in the bank. Cyclical and seasonal

fluctuations also have an impact on an organization's cash. Cash inflows and

outflows for most not-for-profits typically fluctuate throughout the year. This

increases the importance of the budgeting process because obligations must be

met on a timely and consistent basis. The organization must plan ahead for

those periods when cash inflow tends to be less than cash outflows. Postponing

expenditures or accelerating constituent billings are two options for solving the

problem.

Once the annual operating and capital budgets are authorized, they can be

converted into cash flow budgets to verify the availability of resources and to

highlight times of lower than expected cash flow. A model cash flow budget

reflects a policy decision to maintain a minimum cash level. Organizations

need to plan from day one to build working capital reserves equivalent to at

least several months of operating expense. When excess cash reserves have

accumulated, the organization must plan for temporary cash investments to

maximize the return on those resources. As much money needed as possible it

should be kept in federally insured, interest bearing accounts to maximize an

organization's yield on its cash. Short term investments of excess cash should

be chosen to balance maximization of interest earned with emergency access to the invested cash.