Community cooperative societies are managed based on several key principles that ensure the serve the needs of their members and operate effectively.
Here are some of the core management principles
Voluntary and open membership.
Members in a cooperative society is open to all individuals who are able to use its services and willing to accept the responsibilities of membership, it is voluntary, meaning people join of their free will.
Democratic member control.
Cooperative are democratic organization that are controlled by their members, who actively participate as active members, have equal voting rights( one member ,one vote ) ensuring that the society is funded in the best interest of all members.
Members Economic participation
Members contribute equitably to the capital of their cooperative and control its use, they share in the surplus or profits generated by the cooperative often based on their participation in the society rather than the amount of capital they contribute.
Autonomy and independence.
Cooperative are self help organization that are controlled by their members, if they enter into agreements with other organizations or raised external capital, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
Education, training and information.
Cooperatives provides education and training for their members, elected representative, managers and employees, so they can contribute effectively to the development of their cooperative, they also inform the general public about the nature and benefits of cooperatives.
Cooperatives among cooperatives
Cooperative serve their members most effectively and strengthen the cooperative movement by working together through local, regional and international structures.
Concern for community.
While focusing on members needs, cooperative work for the sustainable development of their communities through policies approved by their members.
Key management practices
Participatory Governance
Ensuring that members are actively involved in decision making processes.
Transparency and accountability.
Maintaining open and honest communication with members about the society’s activities and financial status.
Financial management –
managing resources efficiently to ensure the sustainability and growth of the cooperatives.
Capacity building
providing training and development opportunities for members and staff to ensure their skills and knowledge.
Social responsibility
promoting the welfare of the community and contributing to its development.
Accounting of operations.
A community cooperative society should keep the following accounting documents for accounting and Auditing purpose
Financial statements.
Revenue account.
Records income and expenditures related to the society operations .
Statement of financial activities (SFA) as applied to charitable community activities and changes in net assets, Balance sheet , provide a snapshots of society’s Financial position including Assets, Liabilities and Equality.
Income and expenditures records
Income records.
Documents all sources of income such as member contributions, sales and grants.
Expenditures records
Assets registers.
List all assets owned by the society including property,
equipments and inventory.
Liabilities
Record documents of all debts and obligations such as loans and accounts payable.
Membership and transactions records.
Members accounts, track members contributions, shares and transactions.
Transaction records.
Documents all financial transactions, including receipts, payments, and journal entries.
Annual account.
Prepare annually the accounts and provide a comprehensive overview of the society’s financial performance and position.
Proper maintenance of these accounting documents entries, transparency, accountability and compliance with regulatory requirements facilitating smooth audit and financial management.
Summary of accounting documentation required.
Financial statement
Revenue cash book
Statement of financial activities
Cash flow
Balance sheet
Income statement and expenditures
Income records
Expenditure records
Assets and luabilities records
Assets register
Liabilities records
Membership and transaction records
Members accounts
Transaction records
Annual statement financial transactions, balance sheet and cashflow statement to support your financial operation.
– Benjamin Ibrahim, a freelancer, writes from Lokoja.
