THE ICT UNIVERSITY

Research topic: THE IMPACT OF RECORD KEEPING ON THE

PERFORMANCE OF SMEs IN THE YAOUNDE MUNICIPALITY
(ETOUGEBE,BIYEMASSI AND OBILI)

A Senior Project Submitted to the Scientific Council of the Faculty of Business Management and
Sustainability in Partial Fulfilment of the Requirements for the Award of a Bachelors Degree in
Accounting of the ICT University, Cameroon.
Submitted by:
Name of Student: MILENG NEREUS NGONG
Student ID#: ICTU20222989
Email: [email protected]
Supervised by:
Name of Supervisor: ATEMLEFEH ACHANKENG VANESSA
Rank of Supervisor:
ICT University, Cameroon

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 DECLARATION
I MILENG NEREUS NGONG, hereby declares that the work in this research project is my
original work except for references which have been duly acknowledged and it has never been
submitted to any other university for a degree.

Signed

Date

Name of student Mileng Nereus Ngong

The ICT University, Cameroon,
P.O. Box 526
Yaoundé, Cameroon.

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 DEDICATION
To the Mileng’s Family

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 ACKNOWLEDGEMENT
I wish to express my sincere thanks to my academic supervisor Madam Talla Vanessa, who gave
me guidelines and saw me through the production of this work.

I also acknowledge the ICT University for giving me the opportunity to study in its magnificent
institute

Special regards to me for pushing myself above my limits, the Milengs family and on GOD
almighty for his blessings and provision in my life

Table of Contents
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DECLARATION.....................................................................................................ii
DEDICATION........................................................................................................iii
ACKNOWLEDGEMENT......................................................................................v
EXECUTIVE SUMMARY...................................................................................vii
CHAPTER ONE: GENERAL INTRODUCTION...............................................1
1.1. Purpose of the internship........................................................................1
1.2. Scope of the internship............................................................................1
1.2.1. Time scope..........................................................................................1
1.2.2. Geographical scope............................................................................1
1.3. Aims/objectives of the internship...........................................................1
1.3.1. Objectives to the student...................................................................1
1.3.2. Objectives of the school.....................................................................1
1.3.3. Objectives of the host institution......................................................1
1.4. Definition of terms...................................................................................2
CHAPTER TWO: PRESENTATION OF THE ORGANISATION...................3
2.1. Historical Background of host Institution.............................................3
2.2. Presentation of the host Institution........................................................4
2.2.1. Mission/Aim of the internship site...................................................4
2.2.2. Vision of the organization.................................................................4
2.2.3. Products and services of the internship organization....................4
2.3. Functions of the various Departments...................................................4
CHAPTER THREE: ACTIVITIES CARRIED OUT DURING INTERNSHIP
...................................................................................................................................7
3.1. Explanation of internship activities.......................................................7
3.2. Difficulties encountered.........................................................................12
CHAPTER FOUR: EVALUATION OF THE INTERNSHIP
ORGANISATION..................................................................................................12
4.1. Strengths.................................................................................................12
4.2. Weaknesses.............................................................................................12
4.3. Opportunities.........................................................................................13
4.4. Threats....................................................................................................13
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS................14
5.1. Recommendations..................................................................................14
5.2. Conclusion..............................................................................................14

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 EXECUTIVE SUMMARY
The internship program was carried out at UNAFF microfinance Yaoundé, it took place from
January to march. Internship is a tool to identify and bridge the gap between key professional
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competence and classroom experience. It aims at providing the student with preliminary work
experience that can prepare them for the future careers. UNAFF microfinance Yaoundé is aimed
at giving the best microfinance services to its members such as savings, loan granting, project
development etc. the organization is headed by the General manager, which has several
branches, one in mamfe, Douala and Yaoundé as the main office. Furthermore, during the
internship, the intern carried out numerous activities, some of which include: creating and
closing accounts for members, filing loan form for customers, carrying out internal control under
the supervision of the chief of operations and many others. One of the main challenges faced
during the internship by the intern was lack of strict follow up of the intern by the field
supervisors.

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 CHAPTER ONE: GENERAL INTRODUCTION
1.1. Purpose of the internship
Every student has his/her own aim for going on industrial training which could be examined as
seen below;
 To meet up with the requirement of the ministry of higher education.
 To enable students, identify problems in the working environment.
 to blend theory and practice.
 Get students to acquainted with the working conditions and environment.
 Help students develop personal and interpersonal skills.

1.2. Scope of the internship

1.2.1. Time scope
The internship was carried out over a period of three months, from January to march at UNAFF
microfinance Yaoundé.
1.2.2. Geographical scope
UNAFF Microfinance is located in Yaoundé at obili.
1.3. Aims/objectives of the internship
1.3.1. Objectives to the student
 The internship gives the opportunity to identify a particular area of specialization which the
intern thinks will be appropriate for further studies
 Establishing a long lasting relationship with the mentors, which could be fruitful in the
future.
 It introduces the intern to the fields culture and etiquette
 Helps in getting rea; world perspective of an occupation
 It helps in accumulating new skills.
1.3.2. Objectives of the school
 Ensures that the interns placement aligns with their career goals and interests.
 The university ensures that upon the interns graduating, they are efficient and can suit in the
competitive job market.
 Blends theory and practice
 Fosters relationship between the schools and the internship organizations for future benefits.
1.3.3. Objectives of the host institution
 Provide the intern with hands on experience.
 Develop the interns skills in their field of study
 Offer mentorship and guidance to the interns.
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1.4. Definition of terms
UNAFF: Unafamiliar finance
CAMCULL: Cameroon Cooperative Credit Union
MFI: Microfinance institution
NCC: National Credit Council
BOD: Board of Directors
SMEs: Small and Medium Size Enterprises

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 CHAPTER TWO: PRESENTATION OF THE
ORGANISATION
2.1. Historical Background of host Institution
UNAFF Ltd is a Category II Micro Finance Establishment created on the 17th of April 2019. It is
accredited by the Ministry of Finance (MINFI) through Authorization No. 0846/MINFI of 12th
November 2020 following COBAC Registration No. D-2020/124 of 30th July 2020.
UNAFF Ltd was created through the initiative of the Diocese of Mamfe to promote the financial
welfare of the less privileged and to alleviate poverty with a share capital of 500 000 000FCFA.
The idea of UnaFamilia Finance Limited (UNAFF) started in Mamfe in 2018 when some poor
Christians of Mamfe Diocese started approaching the Bishop and expressing their frustration on
how to safeguard their finances. This was as a result of the fact that these Christians had lost
confidence in some financial houses in the area and even when they kept the finances in their
homes, either thieves will steal it or their homes are being burnt down with their funds. When the
then Bishop of Mamfe Diocese (Bishop Andrew Nkea F.) sort to know how he could help in
safeguarding these finances, the Christians told him they prefer to bring their money for him to
keep in the diocese. The Bishop reflected over the issue and realized that the only way he could
keep the finances of these poor people in an organized way was to form a Microfinance setup
that would keep the finances and pay it out to the respective owners on demand .The Bishop then
shared the idea with some priests in the Diocese notably FrTabeson Samuel and some elites
around the area. These persons bought the Bishop’s idea and they immediately put it into action.
They then started the mobilization of shares and formed a Microfinance Institution called UNA
FAMILIA FINANCE abbreviated UNAFF meaning in English ONE FAMILY FINANCE with a
motto – Trusting and Working Together. Being created at the initiative of the diocese of Mamfe
to promote financial welfare of the less privileged and to fight against poverty, UnaFamilia
Finance has as Vision to become a leader in providing quality financial services to the less
privileged and become a self-sustaining financial institution and as Mission to significantly
strengthen the economic base of the less privileged of the community through increased access
to savings and lending services in local and urban areas.
The head office and first branch of this institution is located in Mamfe - Manyu Division in
South West Region of Cameroon which opened its doors not only to the persons who came
complaining to the Bishop about how to secure their finances but to the general public on
November 05th, 2019.This branch office have a customer base of about 775 accounts as at
October 2021.
The second branch of UnaFamilia Finance is located at Obili Biscuiterie Yaoundé which went
operational on the 12th of October 2020 less than a year after the Mamfe branch.
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And thirdly is the Douala branch of UNAFF located at Pont BesekeAncien Route Bonabery
which went operational on the 15th of November 2021 about a year after the creation of the
second branch in Yaoundé.
2.2. Presentation of the host Institution
2.2.1. Mission/Aim of the internship site
UNAFF ltd has the following aims or objectives
 Receiving deposits from customers
 Granting out loans to customers on interest basis in order to make profits

2.2.2. Vision of the organization
2.2.3. Products and services of the internship organization
UNAFF ltd is a category II microfinance and as any other microfinance, offers the following
services
 Creates savings and deposit account for its customers
 Grant loans to its members
 Opening of student account
 Mobile money service
 Cheque clearing
2.3. Functions of the various Departments
The General Assembly
The General Assembly is made up of all the shareholders of UNAFF and this general assembly
meet once a year to elect the board of directors and other committees that represent the general
assembly.

The Board of Directors (BOD)

The BODs are elected following the number of shares each shareholder holds, there are 11
members who form the BODs of UNAFF. The Board Chair of UNAFF is the representative of
the Diocese of Mamfe that is the bishop; this is because Mamfe Diocese owns the highest share
and other Board Members are selected according to their shares contributed. The BOD is
responsible for directing the activities of the institution and its staffs. The BOD is also the
authority which represents the institution legally in its relation with other shareholders and third
parties.

The Committees

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The BOD is further split in to two committees which are, the Credit Committee and the
Supervisory Board whom are assigned specific tasks. Each of the committee is made up of a
chairman and some members as assigned by the board.

The Credit Committee

The Credit Committee members meet when there is a loan within their lending limit to deliberate
on and approve or reject and to forward those loans that are above their lending limits to the
BODs.

The Supervisory Board

The Supervisory Board carries out general supervision of the activities of the institution while
ensuring that the institutions policies are being implemented as required. This committee also
ensures that all financial records and loan files and all official documents are properly handled
well updated. This exercise is done twice a year.

The General Manager (GM)

The General Manager is recommended and approved by the BOD. He carries out the following
functions:
 He implements the policies laid down by the BOD and represent the Institution.
 He oversees and ensures each branch functioning through the branch managers.
 He ensures the day to day running of the institution, strategy formation and implantation.
 He drafts periodic management reports and presents to the BOD.

The Assistant General Manager (AGM)

The Assistant General Manager is also recommended and approved by the BOD. He assists the
General Manager in the administrative duties and functions as sited above. Also, since UNAFF is
still a growing institution, the Assistant General Manager also acts the Internal Controller for all
the three (3) branches. He forwards his report to the BOD.

The Branch Manager (BM)

The branch manager is responsible for the management and smooth functioning of the branch.
He directs, organizes, controls and leads activities of the branch. He answers directly to the
General Manager and also forwards monthly reports on all activities carried out in the branch to

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the General Manager. The branch manager also works as the Accountant since UNAFF is still a
growing Institution.

The Lending Department

This department consists of a Loan Officer. Each branch has one loan officer who attends to all
customers by providing information to customers concerning the various types of loans offered,
the terms, interest rates and documents needed for a loan application to be complete. They are
required to interview all loan applicants and ensure that all procedures needed to be followed are
well organized and carried out. They keep records of loan files approved and denied. Also, all the
loan officers of UNAFF carry Recovery activities in their different branches.

The Control Department

The internal controller is responsible for this department. Since UNAFF is a new institution, it
has only one controller in charge of all the branches. But each branch has one of its staffs
assigned to do the normal cash deposit and withdrawal receipts control every day and cash count
and also stock count every month end. This is usually done to ease the work of internal controller
because he visits each branch after 3months. These reports of the internal controller are usually
taken to the Board of Directors during the board meetings.

The Cash Desk (Teller)

Each branch of UNAFF has one Teller. The Teller is responsible for accepting deposits from the
customer and carrying out withdrawals from accounts when demanded and also ensures that
withdrawal amount above certain limits is approved by the right authorities, she also updates the
passbooks of customers. The cashier also carries out other activities like MTN/ORANGE Money
transfers and also creates account in the system.

The Customer Relation Officer (CRO)

The Customer Relation Officer deals directly with the customers. That is, he/she is responsible
for the marketing of UNAFF products and services and the creation of new accounts. The CRO
carries other activities as follows:
 They assist the customer in filling the account opening forms with no mistakes.
 They assist customers in the filling of the payment voucher and the receiving voucher.
 They also function in the process of cheque clearing.
 They provide the statement of account for customers when demanded.

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 CHAPTER THREE: ACTIVITIES CARRIED OUT DURING
INTERNSHIP
In the course of the internship, the intern got the opportunity to carry out several activities as
seen below:
3.1. Explanation of internship activities
i. The counter
The counter is one of the most sensitive services off the microfinance, this is because any other
operation performed at the different services takes its origin from the counter. At the counter, the
intern carried out the following activities:
a) Filling deposit and withdrawal slips for customers
This task is done on behalf of the customer when they are about to deposit or withdraw
money from their accounts. In the case of deposit, a deposit slip is used and in the case of a
withdrawal, a withdrawal slip is used. This slip contains information’s like; account name,
customers name, amount to be deposited or withdrawn, signature and date.
b) Feeling overdraft forms
The intern also got the privilege to fil overdraft forms for customers who wished to take
more than they saved. This overdraft had to be approved by either the loan officer or the
manager or the accountant.
ii. Working with the chief of operations
The chief of operations can also be referred to as the accountant, and the accountant is
responsible for the flow of money within different departments of the institution, as well as the
outflow of money for specified motives. During the interns period with the accountant, the
following task where performed:
c) Completing order of payment forms
An order of payment implies a written order signed by one customer to transfer a certain sum
of money from his account to another customers account, either within the institution or
outside to another bank.
d) Bank reconciliation statement
At the accounting department, the intern learned how to carry out bank reconciliation, which
is performed using a journal showing the records of financial transactions that took place
within two different institutions, one being UNAFF ltd and the other being a partner bank or
branch office of the main institution.

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 e) Conformity assessment
A conformity assessment is the act of controlling all the accounting documents related to
various transactions that took place during the period. These documents could be transactions
receipts whether deposit or withdrawal, the cheques drawn at the counter as well as the
deposit slips and other source material used in the accounting process. The documents are
checked to see if they actually match with what is stated on the journal. While conducting a
conformity assessment, the intern had to verify the following elements on the source
documents and on the journal;
 The account name and number
 The transaction amounts
 The transaction labels
 Verification is also conducted to see if the transaction is properly recorded on the
debit and credit sides of the journal
 Check the signatures on both sides of the cheque and on the deposit slip
 Transactions without any source documents are noted and attached to the folder
containing the journal and the source documents.
iii. Working with the Administrative assistant
The intern learnt the following while working with the administrative assistant
 How new members are registered into the microfinance and various requirements to
open an account
 Account closure
 Internal control
 How to keep minutes during a meeting
 Asasist the manager in his duties

iv. Working with the loan officer (focus area)

The intern also had the opportunity to work with the loan officer where he had to opportunity
to get a clear distinct knowledge of loans, requirements for loans to be granted and the
conditions on which loans are granted.
i. The bases of granting loans of the microfinance were based on what they call the 5Cs
of loan acquisition which are:
Capital
Collateral
Character

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Conditions and
Capacity.
ii. The intern also got a clear knowledge of the different types of loans that are offered
by the microfinance, which are

Business loans
The microfinance lends the following percentage of the projects value when the repayment
capacity has been established
60% for building
70% for new productive equipment’s
Less than 70% if they are used equipment’s
50% for stock of raw materials
Requirement for this loan include: business plan and registration documents, three years of
financial statement for the existing business, daily savings for an average period of six
months, collateral and insurance coverage policy.
Loan application charges: a refundable loan processing fee calculated at 1% of the maximum
of 40,000frs shall cover the cost of studying the application file, inspection fee and all other
charges.

Agricultural loans
For personal agricultural loans, there most be 100% security and at least 20% in the members
savings. The rest most be real estate and plant/machinery, which most be equal to or less than
50% value of the evaluation.
For group agricultural loans, the group savings should be at least 25% of the amount required
plus additional securities. The group most have a co-guarantor. The loan shall be granted
based on the recommendations of the organization’s coordinator

Real estate loans

These types of loans are required for commercial or residential purpose. The means of
employment shall determine the purpose and duration of these loans and vice versa.

Special loans
School fees loans

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These loans are granted with an interest rate of 1% per month for a maximum duration of six
months. The interest is calculated and deducted up front

Overdrafts and special facilities

Overdrafts: it shall be secured by a sign and post date cheque and the amount shall not
exceed 1/3 of members salary. The duration is at most 1 month with a 3% interest rate.

Contract financing
These are private contracts that members wish for the credit union to finance. The
requirements are
 Titled land property with value 1.5 times the loan amount
 Proof of an existing and registered contract
 Domiciliation of payments through UNAFF bank account
 Irrevocable letter of payment from the company granting the contract
Njangi Finance
These are loans granted to registered groups. The requirements are as follows:
 The group must be registered with the bank
 Proof of existing financial transactions amongst members
 Possess land property as collateral
 The interest rate 3% and the duration most not exceed 12 months.
iii. Loan interest
Interest is charged on loans per month as follows
Loans within savings = 1.5%
Loans with co-makers = 1.7%
Loans above savings = 2%
Overdrafts and special operations = 3%
Contract loans = 2%
School fee loans = 1%
Njangi finance = 3%

iv. Loan defaulting charges, security and restrictions

a. Loan securities
Collateral is not the only basis on which UNAFF grants loans. Here are different types of
securities for loans at UNAFF:

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  Savings on surety
 Irrevocable bank standing order
 Titled land property
 Irrevocable letter of payment from companies
 Pledges
 Promissory notes
 Other property that can b e legally tendered as security for a loan provided a market
value.
b. Loan defaulting charges
Repayment of loans are done weekly, fortnight or monthly, based on the characteristics of the
project of borrower. However, penalties are charged starting on the first day following the
missed instalment or later stipulated grace period. The penalty rate of 5% of interest
instalment due.
c. Loan Restriction
Some restrictions are placed on loan granting at UNAFF which are restrictions for members
who are willing to take loans but are doubtful of repaying the loan. Loans are not granted to
members whose names are on the organizations black list or who are currently delinquent.
Loan delinquency :
This is when a borrower cannot pay or reuses to pay his or her loan. A loan can be term
delinquent when instalments are not paid on due dates. This will cause the loan department to
use some laid down procedures for loan recovery until the loan is reimbursed. In all cases,
the microfinance has to strive to maintain the maximum delinquency rate at 5%. Lending
above savings stops when this rate is reached.
Some reasons for loan delinquency might include:
 Diversion of funds by the member; members take loans instead of putting it in the
business which they presented, they use it to pay debts, celebrate deaths.
 Members make themselves to be trusted whereas they are not to be.
 The loan officer did not do a proper appraisal of loan
 The loan was given based on favoritism and sympathy instead of appraisal.
 Natural factors like in the case of death of the borrower
 Fire destruction especially in the business
 Bad judicial system
 Poor loan recovery system.

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3.2. Difficulties encountered
At the internship site, the intern encountered no difficulty, this is due to the fact that the
organization is bilingual, its location is good, and its easily accessible even in un favorable
conditions such as rain fall.

CHAPTER FOUR: EVALUATION OF THE INTERNSHIP

ORGANISATION
4.1. Strengths
With every organization, there are always unique qualities which differentiate them from others
in the market. UNAFF has its unique differences some of which are:
 Location : UNAFF is situated in an accessible location, which could easily be identified by
members and non-members. Also given the fact that its around a travel agent “Vatican”.
 Favorable terms: it is the organizations priority to ensure that all its customers are satisfied,
thus despite its already stated rules and regulations, customers are still given preferential
treatments especially when it comes to matters of loans. With an understanding by the
organizations customer’s needs, they come to an agreement with the customers that will
make customers happy and the organization pleased with the goal of satisfying its customers.
 Availability of Resources: the organization has resources which helps the organization to
effectively operate and equally satisfy its customers. Some of which are fast internet services,
a stand by generator, a photocopying machine, a television and comfortable seats for
customers etc.
 Security: UNAFF has an all-round available security guard with added camera facilities
which keep the entire premise on watch in and out of working hours.
4.2. Weaknesses
During the internship process, interns faced some difficulties as a result of weakness of the
organization which include:
 Loan recovery system is a major problem at UNAFF , given that fact that major sources of
loans recovery are deducted of members salary, in the advent of dismissal, the member finds

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 it difficult to continue repaying the loan and the origination finds it hard to recover the loan
thus leading to increase loan defaults and irrevocable loans.
 Record keeping at UNAFF was a major issue. The organization still practices a lot of
manual record keeping which is vulnerable to physical damages like fire, water and others
which will lead to loss of valuable data.
4.3. Opportunities
 Expansion of services: the organization could expand its services to include new areas of
work, such as cloud computing or cyber security.
 Increase equipment’s: the organization could increase its equipment to better store data and
records of the organization.
 Training and development: the organization could offer more training and development
opportunities to its staffs to enhance their skills and knowledge.
 Technology advancements: the organization could take advantage of new technological
advancements to improve its services and efficiency.
4.4. Threats
 Competition: the organization faces competition from other organizations offering similar
services
 Rapid technological downturn: rapid technological changes could make the organizations
equipment’s old and obsolete.
 Data breaches: the organization may face threats of security such as data breaches, which
could damage its reputation and credibility.
 Changes in governments regulations: changes in government regulations could impact the
centers operations and ability to provide services.

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 CHAPTER FIVE: CONCLUSION AND
RECOMMENDATIONS
5.1. Recommendations
Based on some observations, it would be good for the organization to improve on its customers
services so that customers will always come and leave the organization happy and satisfied.
Also record and book keeping should be laid emphasis on especially as the organization is still
growing and will have bulk of vital information d records to deal with.
Staffs should always maintain a cordial relationship amongst themselves and customers in order
to enhance a good relationship.
The organization should implement quality control of credit risk when giving out loans to avoid
delinquencies.
There is also the need to carry out effective loan granting management by the organization in
order to improve on their financial performance and also to curb the problem of loan
delinquencies
5.2. Conclusion
In conclusion, the internship was a great experience, over the course of three months, the intern
had the opportunity to work on variety of projects and task that allowed the intern to apply the
knowledge gotten from academic studies.
My communication skills and knowledge, problem solving ability and time management skills
was also gained during the internship period .
Moving forward, the skills and knowledge gained from the internship will serve a long way in
the job market. Gratitude’s to the organization for granting the intern with the opportunity to
carry out internship at the organization.

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