Acknowledge

ment

Firstly we would like to thanks aollmghity GOD

The authors wish to expres their sincere appreciationt to Ato

Asmamaw Fiseha for his assistance in preparing this manuscript.

Special thanks to the management team and employee of Dashn

Bank for their help in locating the original data source documents and

filling out the questionnaire. W/ro mesret petros Assistant manager of

Dashn bank Hawassa pizza branch,we would like to appreciate your

kindness and tireless help in provision of questioner for

employees.And also we want to thank you,our friends and

families,whose support has helped us a great deal in the preparation

of this particular manuscript in particular and in the completion of the

entire program in general due to your moral and financial support.

0
 CHAPTER THREE

3.1 DATAPRESENTATION,ANALYSIS AND INTERPRETATION

This chapter is dedicated to data presentation,analysis and interpretation that are

obtained from the primary and secondary data sources. The data collected from
the employees and Customers of Dashn Bank were collected using
questionnaires.The data are presented by using tables followed by its
analysis.Moreover,the result of the data collected from secondary sources was
analyzed to support and elaborate the facts.The questionnaire was distributed to
30 respondents and 25 of them have filled out the questionnaire and returned. This
chapter is organized in the same way the measurement Items in the questionnaire
are organized.Accordingly, the chapter has different sections.

Table1.General Characteristics of the Respondents

No Variables Category Frequency Percentage

1 Sex Male 20 80
Female 5 20
Total 25 100
2 Age 18-25 -
25-35 10 40
35-45 15 60
Above45 - -
Total 25 100
3 Educational Status Certificate - -
Diploma 5 20
Degree 18 72
MA/MSc 2 8
Total 25 100
4 Have been in working 6 months from 5 20
inthe section for now
7month-1year 15 60
More than year 5 20
Total 25 100

1
As it has been indicated in item 1 of table 1 respondents were asked with regard to their sexes and

20(80%)of the respondents were found to be male whilst the rest 5(20%) of the respondents operating in

the sections were female.Thus, one can infer that there are more males in the target sections than

that of female.

In item 2 of table 1 above the age ofthe respondents has been described as 10(40%) of the respondents

are categorized between the age of 25-35 years and the rest 15(60%)of the respondents are categorized

between the age group 35-42years. In this regard no respondent were found between the age

categories 18-25 years and that of 45 years and above.Thus,based on this one can inferth at most of the

respondents are middle aged.

With regard to the educational background of the respondents item 3 of table 1has indicated that

5(20%) of the respondents have diploma while 18(72%) of the respondents have

firstdegree.However there were no certificate graduates and have 2(8%) attended MSc/MAprograms.From

this one can infer that most of the respondents have better academic background, which is called

professionals.

Finally initem 4 of table 1, It has been indicated that the respondents were asked regarding the length

of time they have served the cash management section and 5(20%) of the respondents have been in

the department for the last six months, 15(60%) of the respondents have been working in the

department for the last 1year and the rest 5(20%) of the respondents have been in thesection for more

than 1year. It can be said that most of the respondents have been juniore employees to the organization.

The first research question of this paper asks with regard to Techniques of cashmanagement

2.Techniquesof CashManagement Table

Disagree

Strongly
Disagre
y Agree

Neutral
Strongl

No Items
Agree

Total
e

2
 No % No % No % No % No % No %
1 There is a
standardized
written manual 8 32 7 28 1 4 4 16 5 20 25 100
regarding cash
control
procedures.
2 Cash control
procedures of
the bank 5 20 3 12 2 8 12 48 3 12 25 100
areadequately
communicated
to
employees
3 Duties have been
adequately
segregated in 2 8 3 12 1 4 13 52 6 24 25 100
your section
4 There is no
certain individual
authorized to 13 52 5 20 1 4 3 12 3 12 25 100
handle cash

5 Cheques are
pre numbered
19 76 3 12 1 4 1 4 1 4 25 100
insequential
order

As can be seen in item 1 of table 2, the respondents were asked express their level of agreement

regarding the question that asked there is a standardized written manual regarding cash control

procedures 8(32%) of the respondents have strongly agreed,7(28%) of them have agreed, 1(4%)

of the respondents have remained neutral,4(16%) of the respondents have disagreed while the rest

5(20%) of the respondents have strongly disagreed to the statement. Thus, one can infer that

there is a standard manual and it can be applied as a benchmark up on the

performance of cash management for the employees.In other words, the control procedures help the

cash management process to be consistently operated across those who are in charge of it.

As it is indicated in item 2 of table 3, the respondents were asked to express their level of
3
 agreement regarding the question that asked them cash control procedures of the bank

areadequately communicated to employees5(20%)of the respondents have strongly agreed,

3(12%of them have agreed,2(8%) of therespondents have remained neutral, 12(48%) of the

respondents have disagreed while the rest 3(12%) of the respondents have strongly disagreed to

the statement. Based on this premise one can understand that the existing written guideline as

tol how to put the cash control procedure are not adequately communicated.This, infact, has an

effect over the way employees.

can effectively under take the cash management system. A scan be observed initem 3 of table 2, the
respondents were asked to express their level of agreement regarding the question that asked duties have been
adequately segregatedin your section 2(8%) of the respondents have strongly agreed, 3(12%) of them have
agreed, 1(4%)of the respondentshave remained neutral, 3(52%) of the respondents have disagreed
while the rest 6(24%) of the respondents have strongly disagreed to the statement.From this one
can deduce that the bank has hardly employed cash segregation. Thus, it will be difficult
to protect cash from theft otherwise.

As it is indicated initem 4 of table 2, the respondents were asked express their level of agreement regarding the
question that asked them there is no certain individual authorized to handle cash13(52%) of the
respondents have strongly agreed, 5(20%)of them have agreed,1(4%) of the respondents have
remainedneutral, 3(12%)of the respondents have disagreed while the rest 3(12%) of the
respondents have strongly disagreed to the statement. Consequently, onecan deduce that the bank has a
lose system in this regard. Thus, it does not adequately put properauthorization in place so that it can make the
cash management process transparent enough.

As one can see initem 5 of table 2,the respondents were asked express their level of agreement

regarding the question that asked them cheques are prenumbered insequential order 19(76%) of

the respondents have strongly agreed,3(12%)of them have agreed, 1(4%) of the respondents

have remained neutral,1(4%)of the respondents have disagreed while the rest 1(4%) of the

respondents have strongly disagreed to the statement.There fore one can say that the bank

has a cash management system that will provide worth while control system in

ensuring adequate documentation and recording.

Table 3 Vault cash Management

4
 StronglyDisagree
No Items

Strongly Agree

Disagree
Neutral
CD

Total
C
O)i_D
<
No % No % No % No % No % No %
Custodians often

check excess
1 1 4 24 1 4 2
vault cash to take 6 8 15 60 25 100

immediate

measures
In cases there are

shortages of vault

cash face cashers

2 13 52 7 28 1 4 3 12 1 4 25 100
the custodians

are promptly alert

to fill them with

the

amount
The chief

supervisor always

keeps trackof the

3 5 20 2 8 2 8 4 16 12 48 25 100
custodians to

check the excess

and shortage of

cash on the

counter

cashers

As onecan observei item 1of table 3,respondents were asked to rate theirlevel of agreement for the

question that asked themcustodians often check excess vault cash to take immediate measures
5
 and 1(4%) of the respondents have strongly agreed, 6(24%) of them have agreed,1(4%) of there

spondents

have remained neutral,2(8%)of the respondents have disagreed while the rest 15(60%) of the

respondents have strongly disagreed to the statement. From this onecan infer

that custodians donot often check exces vault cash to take immediate measures. This leaves the

bank to vault cash from furtherabuse.

As one can observe in item 2oftable 3,respondents were asked to rate their level of

agreement for the question that asked them in cases there are shortages of vault cash

face cashers the custodians are promptly alert to fill them with the amountand 1(4%) of the

respondents have strongly agreed, 7(28%) of them have agreed,1(4%) of the

respondents have remained neutral,3(12%) of the respondents have disagreed while the rest

13(52%)of the respondents havestrongly disagreed to the statement.Thus, one can deduce from this

data thatthere are shortages of vault cash face cashers the custodians are promptly alert to fill

them with the amount which is against the regulation of the bank.As one can observe in item 3 of

table 3,respondents were asked to rate their level of agreement for the question that asked

them the chief supervisor always keeps track of the custodians to check the

excess and shortage of cash on the counter cashers 5(20%) of the respondents have strongly

agreed,2(8%) of them have agreed,2(8%) of th respondents have remained neutral,4(16%) of

the respondents have disagreed while the rest 12(48%) of the respondents have

strongly disagreed to the statement. From this one can infer that the chief supervisor is currently

loose on keeping track of the custodians to check the excess and shortage of cash on the counter

cashers.Thise leaves the cash in excess, subject to misuse by counter cashers and the

shortage leaves the counter cashers in particular and the banking gneral in customer complaints.

3.2 DATA PRESENTATION ,ANALYSIS&INTERPRETATION OF DATA COLLECTED FROM

CUSTOMERS OF THE BANK

3.2.1 Characteristics of the study population/customers

In any research, the researcher needs to assess the relevance of its respondents with respect to the data
needed to be obtained for making certain findings.Accordingly the researchers collected the following data
about sex,Educational qualifications and customary relationship with the bank.

6
 3.2.2 Sex distribution of respondents
The sex distributions of selected customers are presented asfollows:
Table 4:customer's sex distribution
Gender Frequenc Percenta
y ge
Male 21 34
Female 42 66
Total 63 100
Source:primary Data

As indicated in the above table, majority,42(66%) of respondents were female and 21(34%) were
mael.This implies that there are large numbers of female customers in Abune petros branch demand
of gender based banking services.

3.2.3 Educational qualification of respondents/customers

Educational qualification of customers has a great impact over the bank's initiative to come up with
modern banking services like Internet and Mobile banking.In this regard,the educational
qualification of customers is presented below.

Table5:Educational Qualification of customers

Level of Qualification Frequenc Percenta

y ge
Note educated - -
Elementary level - -
High school level 6 9.52
Certificate 6 9.52
Diploma 21 33.34
First degree&above 30 47.62
Total 63 100
Source:Primary Data
As depicted above,majority of respondents, 30(47.62%) of them are First degree holders and above
and then majority are diplom a holders who rates 21(33.34%).The rest of respondents are in the
certificate and high school level.
This implies that the customers are in the level of competency which enables them to run up with the banks'
technological changes. So that the bank wouldn't face significant challenge if it plan to come up with latest
banking services with a little effort of equipping its customers.

Table6:customer's relationship with the bank

7
 ResponsesIn
Item Questions
No. %
1 Forhow long have youa customary relationship with the
bank?
Response Options
Less than a year 21 33.33
1 up to 5 years 33 52.38
above 5 years 9 14.29
Total 63 100
2 How do you select Dashn from other competitive banks?
Response Options
Because its government owned 6 9.52
Because of its accessibility 27 42.86
Becauseof its better service 24 38.10
Other reason 6 9.52
Total 63 100
3 What kind of service are you taking from thebank?
Response Options
Saving or current account 42 66.67
Foreign currency exchange service 12 19.05
Loan or trade service
Money transfer service 9 14.29
Total 63 100
Source:PrimaryData

As illustrated in the above table, the customer's relationship with the bank analyzed and presented.In the first
place,the request in item one presents thecustomer's years of customary relationship with the bank.In this
regard,majority,33(52.38%) of respondents proclaim that they have one to five years of customary relationship
with the bank.Customers with a relationship of lessthan a year rates 21(33.33%) and 9(14.29%) of
respondents have been customers for more than five years. Based on the gathered data, majority of
customers are in the earliest stage of customary relationship with the bank so that the bank should be
committed to sustain its relationship by satisfying existing customers and attracting thene.

Item two requests how the customers are choosing the bank among other competitive banks.In this
regard, majority, 27(42.86%) of respondents proclaim that they are attracted by the bank's accessibility. The
next majority,24(38.10%) of respondents believe that they preferred the bank by its betterservice. On the
other hand, 6(9.52%) respondents replied that they preferred the bank because of its government
ownership. While inferring this, the bankshouldimproveits strength which helps to stay in a highly competitive
banking industry.

As indicated in Item three, customers were requested what kind of service they are taking from the bank. In this
regard, among the selected 63 respondents, 42(66.67%) of them are saving or current account holders &
12(19.05%)respondents proclaim that they are taking foreign currency exchange services.Beside this,
9(14.29%) of respondents stated that they are local money transferservicecustomers.

8
Table7:Customer's response to wards customer service of the bank
ResponsesIn
Item Question
s No. %

1 Is there any delay while providing service in the branch?

Response options
There is no delay 12 21.05
Always delay 6 10.53
Sometimes delay 30 52.63
I don’t know 9 15.79
Total 57 100
If there is any delay sometimes or always, what is the reason
2
in your opinion?
Response options
Network problem 30 47.62
Employees incompetency 6 9.52
Customer’s crowed 3 4.76
Power interruption 12 19.05
All are causes 12 19.05
Total 63 100
Is there one window service within the bank in which all
3
services are available at a place?
Response options
Defin it elyyes 21 41.18
Sometimes not 24 47.06
Always not 6 11.76
Total 51 100
4 How do you rate the employee’s commitment on their job?
Response options
Very well 24 53.33
Well 21 46.67
Total 45 100
Source:Primary Data
As indicated in the above table, item one,respondents were requested whether
there is a workd elay in the branch and 30(52.63%) replied that there is a delay sometimes in the working
process.Beside this, 6(10.53%) respondents proclaim that there is always delay in the working process.In
contrast,12(21.05%) of respondents didn't observe any delay in the working process.Relating with this,as
depicted in item two, respondents' observation to wards there a so no delay in the working process stated.In
this regard, 30(47.62%) of respondents observe that the delay is due to the network problem while 12(19.05%)
respondents believe it is due to power interruption and others, 6(9.52%) proclaim it is because of the
employees incompetency. Less rated respondents, 3(4.76%) believed that the delay in the working process is
due to customer's crowed in the branch.

Item three contains the responses of customers concerning one window service in the branch and
24(47.06%) proclaim that sometimes they are 9 not getting one window 9 service in the branch in contrast

9
 with those 21(41.18%), who preferred to sayd efinitely yes for they are gettingone window service.

Finally,as the above table, item four indicates, customers were requestedabout the employees' commitment
and 24(53.33%) of them found the employees commitment with very well status.Others, 21(46.67%)
preferred to grade as well status.This refers the employees commitment is in the very encouraging condition
that they have to keep it up.

CHAPTERFOUR

SUMMARY,CONCLUSIONSANDRECOMMENDATIONS

The topic ofthis study is anassessment of cash management practice in the case of NIB.

Thus, following the student researchers has raised the four research questions.Thus, it has

primarily asked the extent to which the bank has met the reserve requirements of NBE.

Secondly it has asked how effective the bank is in keeping track ofthe

techniques ofcash management.Moreover, it was also asked as to how effectively vault cash

are handled in the bank.In order to successfully look answer for these research questions,

the student researchers have designed a closed ended questionnaire and document

analysisas tools of data collection.30 questionnaires were distributed and 25 of them filled

and returned. Based on the returned questionnaires the following was made.

4.1 Summary

Based on the presentation analysis and interpretation made in chapter three the
following are summary ofthe major findings.

• 20(80%) of the respondents were found to be male

. 15(60%) of the respondents are categorized be tweenthe age group 35 -42 years.

• 20(80%) of the respondents have first degree.

. 15(60%) of the espondents have been working in the department for the last 1year

. 8 (32%) of the respondents have strongly agreed that there is a standardized written .

manual regarding cash control procedures

10
. 12(48%) of the respondents have remained disagreed that asked cash control procedures of the bank

are adequately communicated to employees

. 3(52%) of the respondents have disagreed to the statement that

aske duties have been adequately segregated in your section

. 13(52%) of the respondents have strongly agreed to the statement that asked them

there is no certain individual authorized to handle cash.

. 19(76%) of the respondents have strongly agreed to the question that asked them

cheques are prenumbered insequential order.

Asked about custodians ofte check excess vaultcash to take immediate

measures15(60%)ofthe respondents havestrongly disagreed 13(52%)of the

respondents have strongly agreed for the question that

asked the min cases there are shortages of vault cash face cashers the custodians are

promptly alert to fill them with the amount 12(48%) of the respondents have strongly dis

agreed to the statement the chief supervisor always keeps track of the custodians to check

the excess and shortage of cash on the counter cashers

11
 4.2 Conclusions

Having seen the major findings of this study the following conclusions have been made in line with

the research Items.

• As it has been found out earlier that there are more male employees working on the cash

management related activitiesand most of the employees working in these activities have

joined the organization in not more than ayear now. The bank has not met there serve

requirement of the NBE.Thus,it has

been found defic it at one instance and remained excess at other times and lacked

consistently meeting the required standard. Often times segregation of duties in the

organization that clearly dictateduties and responsibilities to individuals that will

eventually be responsible. The cash management practice of the bank has been found

to be poor in some in it has a procedure that is written about the cash management

practice,it has not been communicated adequately; duties have not been adequately

segregated. Finally the bank has poor control over valut cash,where vault cash not

adequtely managed excess cash and shortageis not kept checked continusly leaving

the cash to be misused and further aggravating .

4.3 Recommendations

Having identified the summary of findings and conclusions made earlier, the following

recommendations were suggested.

.Instead of having an excess reserve, the bank needs to invest in different are as

of short term investment projects that will have quicker pay back periods

such as treasury bills and government bond.

.Thebank needs to adequately communicate the manuals and the procedures during recruitment

and during formal meetings designed specifically to address the company's specific operational issues

• The bank needs to clarify by segregating duties. As it was identified in the interpretation

12
 partearlier,the bank has been found to be not clearly demarcating duties that

individuals need to discharge one's responsibility. In doing so risk will be

minimized by segregating duties.Nonetheless, if segregation of duty

is not adequately practiced, then it is likely that the bank will be susceptible to theft.

• Cashierson counters often face vault cash shortages. In those occasions the

custodians who are in charge of vault cash need to fill the required amount as soon as

possible. Other wise customers will questiontheir waiting time in the bank.

• Thereis afixed amount on vault cash in the bank. In those circumstances the vault

cash sometimes remains excess, the custodians need to take back the extra

amount to avoid theft.

13
 Bibliography

American Accounting Association (2001).Independence and Objectivity: A Frame

work forInternalAuditors,NewYork: CondePublishing.

Catherine, L. Bromiliw Berlin and J. Anderson (2005), Internal Auditor, Working with
AuditCommittees,NewDelhi:PuchePublishers Plc.

Kathrine, S. Eckhart, Windener, Johnson, F.T (2001), Internal Control. Governance in

publicsector,NewYork:Wiley andSons Inc.

Louis, Braiotta. John (1999).Cash Control Committee Hand Book,(3rd Edition) New
York:WileyandSons Inc.

Lawrence B. Sawyer (1996).The Practice of Modern Internal Cash Control,(4th

RevisedEdition).Florida: Publishers Pvt Ltd.

MiekatrienSterck and Geer Bouckaert (2006).Internal Control, International Audit

Trends inPublicSector.Wasington DC:DetriotPublishersPvt. Ltd.

Pastir, Joan (2007).Conflict Management and Negotiation Skills for Internal

auditors,NewYork:Conde Publishing.

Richard, M. Steninberg and Catherine L. Bromilow, (2000).Corporate Governance

and theBoard-What worksBest. Florida: IIARF PublishersPvt Ltd

Rolandas,Rupsys(2005).TheAnalysisofReportingLines,SallyFCutler,DesigningandWriti
ngMessage-BasedAuditReporting.Florida:IIARFPublishersPvtLtd.

14
 AppendixI

Infolink collage Accounting and

Fiance Department

Questionnaire filled by Employees and Customers of DashnBank s.c

This questionnaire is designed to gather information on”An Assessment of the CashManagement in

the CaseofDashn Bank S.C.”. The purpose of the study is to ful fill a senior essay

requirement for the Bachelor degree on the field of Accounting at Infolink

Collage. Your highly esteemed responses for the Items are extremely important for successful

completion of our senior essay. The information that you provide will be used only for the

purpose of the study and will be kept strictly confidential.

You do not need to write your name.

Finally, we would like to thank you very much for your cooperation and

sparingyourvaluable time for answeringourrequest.

Please tick to show how much you agree or disagree.

1.Age18-25ye^_| 25-35 years J J35-45years J J 45

JJyears and above

2. Sex

1. Male J J 2.Female J J

3. Educational status

Certificate J_J_DiplomaJ J1stDegreeJ JMasters DegreeJ_J PhDJ_J.

4. Work experience in the section year

15
6months from nowj j7months -1 year j jmore than ayear j j

16
 Section II: Please indicate on a five point scale the extent to which

you find the following statements important by ticking on the box

in the column on a five point scale the extent to which you are

satisfied or dissatisfied with the following statements.

1=StronglyAgree2=Agree3=Neutral4=Disagree5=StronglyDisagree

S.N Items 1 2 3 4 5

Techniques of Cash Management

There is astandardized written manual regarding cash control
1 procedures.

Cash control procedures of the bank are adequatelyn communicated

2 to employees

3 Duties have been adequately segregated in you rsection

4 There is no certain individual authorized to handle cash

5 Cheques are prenumbered in sequential order

Vault cash Management

Custodians often check excess vault cash to take immediate
1 measures

Incases there are shortages of vault cash face cashers the

2 custodians are promptly alert to fill them with the amount

The chief supervisor always keeps track of the custodians to check

3 the excess and shortage of cash on the counter cashers

17
 DECLARATION

We, the under signed, here by declare that this senior essay entitled ”An Assessment

ofCash Management in Case of Dashn Bank S.C ”is our original work prepared under the guidance

of Ato Asmamaw fiesha. All sources of materials used for the manuscript have been duly

acknowledged.

Bereket Asrat Signature

Beamlak Tesfaye Signature

Ayfokru Tefera Signature

Debre Tesfaye Signature

Deneke Desta Signature

Betelehem Tomas Signature

Betelehem Signature

Abay kassa Signature

Adissialem G/E Signature

Brehane Signature

Azeb farise Signature

Place of submission: Infolink college

Date of submission

ADVISOR'S DECLARATION

This paper has been submitted for examination with our appropriate approval as college advisor

Name Asmamaw fiesha

Signature Date

18
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Attribution-Noncommercial-NoDerivs4.0License.

To view a copy of the license please

see:http://creativecommons.org/licenses/by-nc-nd/4.0/

Thisisadownloadfromthe BLDSDigitalLibraryonOpenDocs
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