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  2. Vol 1 Issue 6, 2019
  3. CASH MANAGEMENT PRACTICES OF NON -GOVERNMENTAL ORGANISATIONS: A CASE STUDY OF NGOs IN THE SUNYANI MUNICIPALITY
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ERIC AMPAABENG KYEREMEH

CASH MANAGEMENT PRACTICES OF NON -GOVERNMENTAL ORGANISATIONS: A CASE STUDY OF NGOs IN THE SUNYANI MUNICIPALITY

Cash management and sustainability is crucial for the long-term survival and effectiveness of all types of NGOs. The challenge is how to achieve such levels of cash management and sustainability. The study sought to examine cash management practices among NGOs in the Sunyani Municipality. The objectives of the study were; to identify cash management practices of NGOs, examine how cash management practices affect the operations of the NGOs, find out the challenges facing NGOs in cash management and suggest measures to enhance cash management practices among the NGOs. Both primary and secondary sources of data were used to gather data for the study. Data was collected for analysis through purposive sampling technique by administering fifty-four (54) questionnaires to finance managers of fifty-four (54) NGOs in the municipality. From the study, it was found that the preparation of cash budget or cash flow forecasts was practised as cash management practice among the NGOs. The study also uncovered that proper cash management practices enabled the NGOs to decide how to generate and spend financial resources. The study further posited lack of cash budgeting, lack of accountability and transparency, and poor record keeping practices, as four critical challenges facing cash management of the NGOs. Some finance officers in the NGOs identified that the use of computers to manage cash was sometimes practised as cash management activity. Therefore, the management of the NGOs should adopt the continuous culture for proper accounting information system and invest in computerized systems (technologies) for their accounting processes.