PART TWO: IMPLEMENTATION

OF THE MISSION

This part is made up of two chapters. Chapter three presents the Practical
phase and is divided into two sections which present conceptual framework,
practical approach and the means and results of our internship. While chapter
four presents the Criticisms we came up with and Recommendations
proposed.
 CHAPTER THREE: PRACTICAL PHASE

This chapter is sub divided into two sections. Section one, which focuses
on the theoretical framework, context and objectives and section two on the
means and results.
SECTION ONE: CONTEXT AND CONCEPTUAL
APPROACH
In this section we will look closely at the context of our work, treasury
management as a whole is define as seen below by different authors, its roles,
importance to our work and the practical approach.

3.1.1: CONTEXT
We focused our work on this topic in order to see how treasury
management can be ameliorated so as to improve the profitability of the
institution and bring about an optimal generation of revenue and an efficient
utilisation of revenue rose.

3.1.1.1: CONCEPTUAL DEFINITIONS

TREASURY MANAGEMENT

Treasury management can be define as the process of planning, organising,

controlling and holding of funds and working capital of the enterprise in order
to make the best possible use of the funds, maintain the firm’s liquidity, reduce
the overall cost of funds and mitigate operations and financial risk.

Well from the name, you may have guessed the broad theme of what
treasury management is all about, that is the management of a company’s
money. But that’s not quite simple as we could imagine since there are two
main points in treasury management. One is making sure that the cash flow is
well maintained and that the company is not sinking financially. The other is the
creation of policies that ensure the company’s risk strategy is one that is
sustainable and suitable for its needs.

Also, treasury management have some core significant functions which

include:
 Risk Management is the discipline of managing financial risks to allow the
company to meet its financial obligations and ensure predictable business
performance. It aim is to identify, measure and manage risk that could have a
significant impact on the business. We need to take note that it is there not to
eliminate all the risk because no risk no gain. The risk need to be taken only on
areas that the business has competitive advantage.

Cash and liquidity Management is often described as a primary duty in

treasury, essentially as a company needs to be able to meet its financial
obligations as they fall due to pay their employees, suppliers and lenders. A
company needs to have the funds available that will enable it to stay in the
business in order to deal with payment transactions.

Others functions include; Availability of funds, development of funds

3.1.1.2: THE IMPORTANCE OF TREASURY MANAGEMENT

 Cash flow management

Here, the treasury management function monitors the timing and amounts
of cash inflows and cash outflows. These inflows include account receivable
conversion to cash, short term and medium term borrowing, asset sales and
account payables conversion to actual bill payments. Also, it includes
monitoring and tracking of those activities that require the largest use of cash.

 Relationship and Risks

Here, since treasury management equally includes managing shareholders

relations, managing financial risk and ensuring adequate and appropriate
sharing of financial information. Relations with shareholders have significance,
because strong relations and a belief in the company’s strategy allow
corporations that need additional funds to raise them from the existing
shareholders. While financial risk management ranges from fighting against
currency risk to establishing financial plans for upcoming projects and
managing financial risk to allow the company to meet its financial obligations
and ensure predictable business performance. It is also important to note that the
objective is not to eliminate all risk since taking risk is a critical part of any
business and no risk no gain.

 Float

Treasury management’s role equally involves lengthening the amount of

time a company retains the money needed to pay its bills while shortening the
period it forgoes money due from its customers. This process therefore includes:
setting accounts payable and receivable policies, setting credit approval policies
and defining collection terms. These activities provide a company with float, or
extra short-term cash on which it can earn short-term interest on incoming funds
that the firm will soon use to pay its bills.

 Information sharing

There is need for information from internal departments and groups to

make suitable decisions. They must also share information to adequately
support these groups and assist with their decision making. This function
provides lenders and other financial institutions with the financial information
required to show compliance with loan terms.

3.1.2: PRACTICAL APPROACH

Below are some of the accounting treatments we carried out during our
stay in IME relating to treasury management
 3.1.2.1: Treatment of Fees

In IME, fees have three means of payment: by cash, bank and mobile
money. When school fees is been paid by a student, the information is been
recorded and enter in the software called “GESTIME” (Gestion Scolarite IME).
This software enables computerised receipt for students. The spread sheet filled
for daily transactions depends on the entry and exists of the day; it contains
student’s levels, specialty, his/her name and the motives. The amount paid is
been recorded including the date and level.

Then the following recordings are inputted;

 We first record the service sold which was rendered on credit in the fees
journal;

Journal Entry

Date

4110112 CLTS11 (Client) Amount

706 Service sold Amount

Student’s admission

Figure 1: fees journal

 Then the means of payment, if it was by cash;

Journal Entry

Date

57101 Cash Amount

4110112 CLTS11 (Client) Amount

Payment of fees
 Figure 2: cash journal

 If the payment was by bank (the bank account number depending on the
bank in question);

Journal Entry

Date

521 Bank Amount

4110112 CLTS11 (Client) Amount

Payment of fees by chq N

Figure 3: bank journal

 If the payment was by orange money(OM);

Journal Entry

Date

55211 Orange money telephone Amount

4110112 CLTS11 (Client) Amount

Student’s fees by OM

Figure 4: Orange Money Telephone journal Source: IME

PRACTICAL CASE

On Monday 10th September, the total number of fees paid was 1 150 000 FCFA.
Where 700 000 FCFA was by cash, 150 000 FCFA by OM and 300 000 by
bank.

Journal Entries
Service sold
10/09

4110112 CLTS11 (Client) 1 150 000

706 Service sold 1 150 000

Payment of fee
 d˚

521 Banks 300 000

55211 Orange money telephone 150 000

571 Cash 700 000

4110112 CLTS11 (Client) 1 150 000

Settlement of fee

Figure 5: fees journal

Means of payment
- By cash

10/09

57101 Cash 700 000

4110112 CLTS11 (Client) 700 000

Payment of fees by cash

Figure 6: cash journal

- By bank

10/09

521 Bank 300 000

4110112 CLTS11 (Client) 300 000

Payment of fees by cheque No

Figure 7: bank journal

 - By OM

10/09

55211 Orange money telephone 150 000

4110112 CLTS11 (Client) 150 000

Student’s fees by OM

Figure 8: Orange Money Telephone journal

3.1.2.2: Treatment of Payment Orders

A payment order is an order or an instruction of a sender to a receiving

bank directing transfer of fund to a designated account or beneficiary. It directs
payment of a specific amount is to a third party.

Generally in IME, there are three types of payment orders which include
normal payment orders for general transactions in the institution, cash receipt
for marketing operations for all transactions related to marketing and the
director’s cash receipt that involves his transactions. Since our internship was
been carried out in Akwa campus we will talk about its payment order which is
just one and it is for all general transactions in the institution.

 Normal payment orders are those daily transactions done for the running
of activities which do not concern marketing or an expense by the director some
examples are the buying of fuel for the generator, cleaning agents, transport
fares, and equally the payment of bills, payment of teacher’s vacation and
advances, loans to employees and maintenance of the school bus.
These transactions differ in their recording; some are ordinary transactions
and others sundry expenses or miscellaneous expenses. Thus, ordinary
transactions pass directly through the cash journal while the sundry expenses
pass through a general journal given they are those transactions that do not
occur frequently and are grouped since they cannot be classified separately such
payment of salaries, advances and vacations, payment of extra hours by
workers, payment of academic supervisory, tontines, CNPS retained, taxes and
premiums. Then taken to the cash journal for payment

Journal Entries

Ordinary transactions

Date

6----- Expenses Amount

571 Cash Amount

Expenses for----

Figure 9: cash journal

Sundry expenses

Date

66---- Remuneration ---- Amount

42/43/44 Cash Amount

Expenses for----

Figure 10: Sundry expenses auxiliary general journal

Date

6----- Expenses Amount

571 Cash Amount

Expenses for----
 Figure 11: cash journal

Source: IME

 Marketing operations receipt that involves all transactions relating to

marketing in the institution some of them are; weekly fuel for marketing
operations, breakfast budget for marketing meeting, transport for
prospections and marketing seminars. Their recording goes directly to the
cash journal.

Journal Entry

Date

627012 Marketing activities Expenses Amount

571 Cash Amount

Expenses for----

Figure 12: cash journal

Source: IME

 The directors cash receipt with concerns all the major transactions carried
out by the director, some of them could be; orders for payment without
motive, purchase of a fuel order and his tontines.

Journal Entry

Date

46201 Shareholder current account Amount

571 Cash Amount

Expenses by the director for---

Figure 13: cash journal

Source: IME
3.1.2.3: Purchase Orders

These are purchases made by the institutes to its suppliers they could be on
credit or by cash. They could be purchases of printing ink, projectors for
teachers displaced, ream of papers and bills. They are first recorded in the
purchase journal then to the cash journal.

Journal Entry

Date

60 Purchase Amount

62 External services Amount

63 Other external services Amount

401101 Supplier Amount

Purchase order for---

Figure 14: Purchase journal

Source: IME

Journal Entry

Date

401101 Supplier Amount

571 Cash Amount

Payment of purchase for---

Figure 15: cash journal

Source: IME
PRACTICAL CASE

On the 20th September 2018, the following payment orders were incurred;

-Payment to INES for working on a public holiday 3000 FCFA.

-Mr ALAIN received an advance on his vacations in bachelor degree 100

000FCFA.

-Purchase of fuel for the school bus 20 000 FCFA.

-Transport for Akwa campus 1 000 FCFA.

- Fuel for marketing operations 20 000 FCFA.

-Directors tontines 300 000 FCFA.

-Purchase of printing ink from Supplier RB 200 000 FCFA.

Journal Entries

20/09

42201 Remuneration of a permanent worker 3 000

661103 Remuneration for work 3 000

On a public holiday

Remuneration for public holiday

d˚

4211 Personnel advance on vacation 100000

662107 Advance bachelor degree vacation 100000

Advance on bachelor degree vacation

Of ALAIN

Figure 16: Sundry Expenses journal

 20/09

604701 Purchase of printing ink 200 000

401101 Supplier 200 000

Purchase order from RB

Figure 17: Purchase journal

20/09

42201 Remuneration of a permanent 3 000

Worker
57101 Cash payment 3 000
d˚

4211 Personnel advance on vacation 100 000

57101 Cash payment 100000

d˚

604201 Purchase of fuel 20 000

57101 Cash payment 20 000

d˚

6111 Transport in town 1 000

57101 Cash payment 1 000

d˚

627012 Marketing activities expenses 20 000

57101 Cash payment 20 000

d˚

46201 Shareholder’s current account 300 000

57101 Cash payment 300 000

 d˚

401101 Supplier 200 000

57101 Cash payment 200 000

Figure 4: Cash journal Source: Student’s effort and pass report

3.1.2.4 Purchase Voucher

It is a document which can be used as a proof that a monetary

transaction has occurred between two parties. In business, a payment voucher
can be used for a variety of purposes, sometimes taking the place of cash in a
transaction, acting as a receipt or indicating that an invoice has been approved
for payment. In IME purchase voucher are been signed and given permission
for payment by the chief accountant. An example can be seen below in the
appendix.

SECTION TWO: ACCOMPANYING TOOLS USED

AND RESULTS
3.2.1: DATA COLLECTION, ANALYTICAL TOOL,
ACCOMPANYING TOOLS AND FEASIBILITY
3.2.1.1: DATA COLLECTION

Both primary and secondary data was used in this work;

The primary data was collected through observation and interaction with the
staff of IME during our period of internship.

While the secondary data was collected both from internal and external sources.

 The internal source of data includes the documents put at our disposal in
IME.
 The external sources include text books, the OHADA accounting plan
and past reports.

3.2.1.2: ANALYTICAL TOOL

 THE OHADA Uniform act and the OHADA Accounting plan

The accounting system used, must meet the reliability and security requirements
that are necessary for assuring the integrity of data and records. The accounting
system must timely and complete recording of basic information on day to day
basis, processing of recorded data at the appropriate and delivery of mandatory
reports to users within specified legal time limits. The OHADA accounting plan
is one of the tools used when recording transactions in journals and ledgers.

3.2.1.3: ACCOMPANYING TOOLS

We equally worked with the following which enabled us to achieve the

objectives of the internship and to come out with this piece of work;

 Office Document:

All activities to be realized in the office had its specific working

documents. For example; payment order for disbursements, tuition fees receipts
for the payment of fees, purchase order forms for the ordering of goods from
our suppliers.

 Computers and Accounting Software:

 We were given access to their computers in order to work accordingly and
had access to the systems we were going to be using frequently.

 Office stationeries:

We were provided with office stationeries such as chairs, tables, papers,

pen, pencil, block notes, photocopy and printing machine in order to make our
stay more conducive.

 School archives:

We were equally given access to the archives of the institution in order to

have a broad understanding. It had the history of all the students in their various
years and field of study kept in an orderly manner.

 Internet:

We were given access to the WIFI freely for our researches. And we had
the opportunity to see the installation of the optical fibber which could give
access to internet connection with no limit at any time without it getting
finished.

3.2.2: OBJECTIVES AND RESULTS (OUTCOMES)

From the tools put at our disposal, it enabled us to come out with this
work which we hope goes a long way to enable IME improve on their Treasury
management so as to maintain the image of the institution.
 It enabled us to have a wide knowledge on what treasury management is
all about and we equally gained professional skills.

We did not only meet up our academic obligations of internship for which
this work is written, but we equally gained much experience in the professional
field.

Equally, it was a question for us to see if there was a match between what
was thought in school and in the field. Thus, we were able to find out that
actually there was not really a big difference between the two apart from some
differences and that there was quite a lot of repetition which made work easier
to understand.