In its performance of its assignment to inspect the accounts of Mlandizi SACCOS assigned to it, the Co-operative Development Department has undertaken an inspection of the administrative, accounting and financial procedures and the internal controls in force in this SACCO. Here are some findings of this firm: -
• Weakness of the cash allowances (allocations, bonuses, etc) established by the personnel compensation policy
• Absence of confirmation of the agents of the SACCO in their positions by any decision
• Inadequate of the number of agents necessary to perform the duties that have been assigned to them in the departments
• Holding in reserve (safe) for three months sums between TZS. 90,000,000 and TZS. 120,000,000 while the text authorizes a maximum of TZS. 60,000,000
• Nonexistence of an agent in charge of the cash/ reserve to coordinate and monitor the counter transactions
• Nonexistence of an insurance policy
• Differences between account balances and inventories of the individual loan records
REQUIRED:
a) You are an in-charge of the inspection team of the Co-operative Development Department at the Mlandizi SACCO and the Board of Directors of this SACCOS, after reading the audit report, asks you to explain to them the possible implications of these different findings.
What would you say to them?
b) In your capacity as the Inspector in-charge, decide which recommendations need to be submitted to the Mlandizi SACCO