ABSTRACT

Assessment of internal control over cashes in Goba woreda finance and economic
development office. The study has attempted to address research question having attention in
the statement of the problem and objective of the study the main objective of the study is to
assess internal control over cash of Goba woreda finance and economic development office.

The researcher design descriptive types, more over primary and secondary data from Goba
Woreda finance and economic development office will be collected.

The respondent will be selected with probability sampling by using simple random sampling,
the respondents will be randomly selected who have background knowledge about and
graduate of accounting and finance department.

The data gained from Goba Woreda finance and economic development office can be
collected analyzed, interpreted using statistical techniques with the help of tables.

Based on analysis conclusions will be made, finally recommendation will be drawn that
assumed to be useful to solve existing problems of the internal control over cash in Goba
Woreda finance and economic development office.

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 CHAPTER ONE

1. INTRODUCTION

1.1. BACK GROUND OF THE STUDY

Cash is a medium of exchange that is accepts for deposit and immediate credit to the
depositors account. Cash includes currency and coin, personal checks, bank drafts, money
orders, credit card, sales, drafts, and cashier’s checks, as well as money on deposit with
bank (Mosich, 1989).
Cash collection may result from various sources such as cash sales, collection of account
from customers, Investment by others, bank loans, sales of non current asset and receipt
such as rent, internist and dividends. Internal control over cash mainly emphasis at case
collection and recording all cash receipt without loss. Internal control over cash may be
strengthened by incorporating the performing surprise count of the found to verity
whether the vouchers paid and balance in the fund accounts for the size of impressing
fund. It is cancelling or mutilating the paid vouchers in order to protect intentional or
incidental resubmission of vouches for re-imbursement, more effective internal control
over cash disbursement result when payments are made by check, except for incidental
amounts that are paid out from petty cash fund. Internal control consists of the plan of
organization related methods and measures adapt with in business to sate guard. It is
assets from employee theft, robbery and unauthorized use and in chance the accuracy and
reliability of it. It is accounting records by reducing risk of errors (unintentional mistakes
and irregularities in the accounting process) (Fess and et.al, 1984:164).The objective of
controlling system is to manage and comprise method and process. It is used to meet
missions and goals for doing supportive performance and helps to minimize errors.
Internal controlling system safe guards the organization and helps a desired result through
effective and efficient resources.
The research, therefore, emphasized to achieve the objective of effectiveness and
efficiency and reliability of financial report related with internal control over cash.
Internal control is a management of an organization which basically follows financial
rules and regulations. The organization has accounting procedure internal auditor control
and the major activities are:-
 Carry out domestic and international money transfer services
 Provides loans and advance payment
 Mobilize payment salary for Workers, capital and different expenditures

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  Mobilizing and support different investments in the woreda .

1.2. STATEMENT OF THE PROBLEM

Internal controls are an internal part of any organizations financial business policy and
procedures. Internal control consists of cash all the measure taken by the organization for
the purpose of protecting resource from waste, fraud and in efficiency, ensuring accuracy
and reliability in accounting and operating data, securing compliance with policy of
organizations. The policy proceeds and behaviour of administration finance economic
development office intern facilitate the evocativeness and efficiency of operation
enabling to response appropriately to operational, financial , compliance and other risk
that hinder the achievement of administration finance and economic development office
objectives and it helps to ensure the quality of internal control and external control
reporting. This requiring the maintenance of proper record process that generates a flow
of time relevant and reliable information from within and outside the organization with
applicable law and regulation and internal procedures. Cash is the asset that is most likely
to be miss handled theft, mistake judgement, error posting or carelessness or
transportation error.
However, to investigate these problems, the researcher has been attempting to study the
factors affecting internal control over cash system by using different techniques. The
researcher will be to study about the cash management organization because the
management and leadership of the organization are accountable for the utilization of
money efficiently and effectively according to the budget and time setting. They hold
money in trust to use it in a way that it full fills basic development value (Ayele, 2000).

1.3 Research Question

1. What are the policies and procedures of internal control over cash in Goba woreda
finance and economic development office?
2. Who check internal control structure over cash in study area?
3. How the internal controls over cash procedures are being effectively applied?
4. Identify the factors that affect control over cash in Goba woreda finance and
economic development office?

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1.4. Objectives of the study

1.4.1. General Objective

The general objective of this study is to assess the effectiveness of internal control over cash
system and its benefits in Goba Woreda finance and economic development office.

1.4.2 Specific Objective

 To identify how the policies and procedure of the internal control structure over cash
provide reasonable assurance that the Goba woreda finance and economic
development office goals and objectives will be achieved.
 To check internal control structure over cash will be period review by independent
auditors.
 To determine whether the internal control over cash procedure are being effectively
applied.
 To verity the Goba Woreda Administration finance and economic development office
cash manual efficiency of the operation.
 To identify the factors that affect control over cash in Goba woreda finance and
economic development office

1.5. Significance of the study

After the study will be accomplished:-

Readers of this research would be able to obtain almost all the relevant information
regarding the internal control system. It will provide accessory internal control,
system for safeguarding cash and establishing responsibility for it. It will provide a
basis for further investigation in the area of Goba Woreda finance and economic
development office to realize the benefits of internal control system over cash and
identity weakness and strength of internal control system.

1.6. Scope of the study

Internal control is comprised of several controls but due to time and cost constraints this
study will be concern on internal control over cash in Goba woreda finance and economic
development office is taken. It emphasized on cash receipt and payment. It also focused on
effect on cash holding and cash control techniques in the study area.

1.7. Organization of the paper

The paper will have five main chapters. The first chapter will be an introductory
part containing the back ground of the study, statement of the problem, objectives

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of the study, significance of the study, scope of the study and organization of the
paper. The second chapter deal with review of literatures. The third chapter deals
about methodology. Discussion and analysis of the gathered data would be
including in the fourth chapter. The last chapter will comprises conclusion and
recommendation of the study.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1 Definition of Internal control

Internal controls are processed designed by management to provide reasonable assurance the
institute will achieve its objectives. They are tools used by mangers from support staff level
to general managers, every day to assure that their organization is operating according to
plan. Internal controls may be designed to safeguard assets, maintain the accuracy, and
encourage adherence to prescribed managerial politicise. Internal control is not a single
process but rather combined of many processes that occur as a part of the organization
activities. Internal control is effective when the processes achieved their objectives, in
effective when they do not. Internal control reduces, but cannot eliminate the possibility of
poor judgement in decision making humanisers control processes being fraudulently violated
by employees and other and the control system therefore provides reasonable but not absolute
assurance that accompany will not be hindered in achieving its business objectives or in the
orderly and legitimate conduct of its business by circumstance which may reasonably be for
seen” Good internal controls prevent more defecations than good auditors find” (Rick and et
.al,1999:195)

Internal controls are the American institute of certified public Accountants (AICPA) has
defined internal control as « The plan of organization and all the coordinate methods and
measures adopted with in a business to safe guard its assets, check the accuracy and the
reliability of its accounting data, promote operational efficiency and encourage adherence to
prescribed managerial policies. A system of internal control extends beyond those matters
which relate directly to the function of the accounting and financial departments».

According to the institute of chartered accountants of England and Wales (ICAEW) internal
control means not only internal check or internal Audit, but the management in order to carry
on the business of the finance in an orderly manner , safeguard its assets, and secure as for as
possible accuracy and reliability of its records. Form the above two definitions it is clears that
inter control is a broad term with a wide area of operation. It includes a number of methods
and measures, which exercised by management to ensure smooth and economic functioning
of business entity. (Ravinder Kumar and Virender Sharma, 2005:81).

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2.2. Components of Internal control
The effectiveness of an internal system is measured by the effectiveness of its component
which makes up the overall control system. Internal control has five components namely, the
control environment, risk assessment, control activities, information and communications,
and Monitoring (Rick hays and Arnold children with Roger Dassen and Philip wallage
1999:199).

A. Control Environment

The core of any business is its people their individual attributes, including integrity, ethical
values and competence and the environment in which they operate , the control environment
means the overall attitude , awareness and actions of directors and management regarding the
internal control system and its importance in the entity. It is internal control system the
foundation for all other components of inter control, providing discipline and structure (Rick
hays and Arnold children with Roger Dassen and Philip wallage 1999:199).

B. Risk Assessment

Risk assessment, the second component of internal control, is management’s process of

identifying and analyzing the risk that might prevent the organization from achieving its
objectives. Internal control is effective under one set of conditions may be ineffective under
another. As part of its risk assessment, an organizations ability to achieve its objectives (Rick
hays and Arnold children with Roger Dassen and Philip wallage 1999:199).

C. Control Activities

The third internal control component , are the policies and procedures must be established
and executed to help ensure that the actions identified by management as necessary to address
risks to achievement of the entity’s objectives are effectively carried out , sometimes referred
to as control activities and procedures which management has established to achieve the
entity’s specific objectives. They include arrange of activities including apparatus,
authorizations, verifications, reconciliations, reviews, checking arithmetical accuracy, and
controlling application and environment of computer information systems. There are
potentially many control activities but the generally fall in to five categories (Rick hays and
Arnold children with Roger Dassen and Philip wallage 1999:199).

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 1. Adequate separation of duties:-
2. Proper authorization of transactions and activities.
3. Adequate documents and records.
4. Physical control of over assess and records and
5. Independent checks on performance
D. INFORMATION AND COMMUNICATION

The fourth component of internal control is information and communication. Information is

need at all levels of the organization for making operating decisions, for financial, reporting
and for compliance. It is identified, captured, processed, and reported by information system.
Communication is inherent information systems. However communication extends beyond
the processing of financial data to encompass communication extends beyond the processing
of financial data to encompass other internal and external forms (Rick hays and Arnold
children with Roger Dassen and Philip wallage 1999:199).

Communication takes such forms as policy manuals accounting manuals, and memoranda.

E. MONITORING

Monitoring, the fifth and final components internal control is a process must be monitored,
and modifications made as necessary. This is accomplished through ongoing monitoring
activities. Separate evolutions or combination of the two- on going monitoring occurs in the
course of operations. In this way, the system can react dynamically changing as conditions
warrant, the scope and frequency of evaluations will depend on an assessment and
effectiveness of ongoing monitoring procedures. These internal control components and their
linkages are depicted the model, developed by Coso, shows the dynamism of internal control
systems. Components of internal control performance over time. Organizational change and
the ways in which controls are applied in them evolve monitoring helps management
determine what modifications to the system are needed as conditions change (Rick hays and
Arnold children with Roger Dassen and Philip wallage 1999:199).

It involves assessing the design and operation. It involves assessing the design and operation
of controls and taking corrective action. (Rick hays and Arnold children with Roger Dassen
and Philip wallage 1999:227).

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 2.3. Principle of Good Internal control
A. A well designed accounting system should be in operation. Financial and accounting
operations must be separated, i.e. the handling of cash and the recording of movement
thereof should be done by different persons.
B. Responsibility for the performance of the job must be clearly stated so that there
remains no room for doubt or confusion subsequently. To achieve this clear cut and
well conceived organization structure should be established.
C. Too much confidence should not be pinned in one individual nearly all frauds are
committed by ‘trusted’ officials or employees. It’s interesting to note that trades have
occurred owing to their being trusted.
D. Rotation principle relating to transfer of an employee from one job to another should
be the inflexible guiding rule.
E. Mechanization of the work where ever feasible and practicable, should be resorted to
mechanical devices such as cash register, recording time clocks, calculation machines
should be introduced.
F. The work should be so arranged that work done by one employee could be promptly
checked by another independent employee such the errors and the trades can not to un
detect.
G. The arrangement of the work should be in such a manner that writ en record and of
the role played by each employee should be maintained.
H. Clear and well defined rules should be laid down and practically followed relating to
dealing of the cash, ordering, receiving and issuing goods.
I. Employees must be in bond so that the tempted employee will be deferred from
committing fraud and employer be protected.
J. Although not a substitute for protective financial internal control (Ravinder kumar
and Virden Sharma ,2005:82).
K. Internal controls may be characterized as two types administrative controls and
accounting controls. Administrative controls are primarily concerned with the
promotion of operational efficiency and the adherence to prescribed managerial
policies. Administrative controls are related to operational audits 6 and compliance
audits 7. Accounting controls are principally concerned with sate guarding assets and
providing assurance that the financial statements and the under lying accounting
records are reliable. Internal accounting controls relate to external and internal
financial audits. The independent auditor is primarily concerned with the accounting

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 controls, which generally bear directly and internal financial audits. The independent
auditor is primarily concerned with the accounting controls, which generally bear
directly and importantly on the reliability of financial records. Accounting controls
comprise the plan of organization and the procedure and records that are concerned
with the safeguarding of assets and the reliability of financial records. According to
Ravinder kumar and Virden Sharma (2005)they are designed to provide reasonable
assurance that :-
 Transactions are executed in accordance with management’s general or specific
organization.
 Transactions are recorded as necessary to permit preparation of financial statements
in conformity with international accounting standards (LAS) or other applicable
criteria and to maintain accountability of assets.
 Access to assets is permitted only in accordance with management’s authorization.
 The recorded accountability of assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any differences
(Ravinder kumar and Virden Sharma, 2005).

2.3.1 The Importance of Internal Control

The reason accompany establishes a system of control is to help achieve its
performance and profitability goals and present loss of resources by fraud and other
means. Internal control can also help to ensure reliable financial reporting and
compliance with laws and regulations. The entity’s internal control system consists of
many specific policies and procedures designed to provide management with
reasonable assurance that the goals and objectives it believes importance with to the
company will be met. Internal control system means all the policies and procedures
internal controls adopted by the management of an entity to assist in achieving
management’s objective of ensuring, as far as practicable, the orderly and efficient
conduct of its business, including adherence to management policies, the
safeguarding of assets, the prevention of guard and error, the accuracy and
completeness of the accounting records, and the timely preparation of reliable
financial information. Internal control system is synonym for internal control as; the
internal control system is intertwined with an entity’s operating activities and exists
for fundamental business seasons. The three major categories of management
objectives are effective operations, financial reporting and complain. Importance

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goods of operations controls are accurate information for internal decision making
and lager guarding of assets. The physical assets (eg. cash), non physical assets (e.g.
Accounts receivable). Important documents and records (e.g. Journals) of a company
can be stolen, misused or accidentally destroyed unless they are protected by
adequate controls. Professional controls are importance because management has a
legal and professional responsibility to be sure that information is prepared fairly in
accordance with accounting standards (Rick Hayes and Arnold schilder with Roger
Dassen and Philip Wallage 1999:196).

2.3.2 Definition of cash

Cash the most liquid of assets is the standard medium of exchange and the basis for
measuring and accounting for all other items. It is generally classified as current
assets to be reported as cash. It must be readily available for the payment of current
obligations, and it must be free from any contractual restriction than limits its use in
satisfying debts. Cash consists of coin, currency and available funds on deposit at the
bank negotiable instruments such as money orders, certified check, cashier’s checks,
personnel checks, and banks, certified check, cashier’s checks, personal checks, and
bank drafts are also viewed as cash. (Intermediate Accounting: 293, A.N.Mosich, D,
C.P.A W Ernst and Whinny professor of Accounting 1989 University of Southern
California) .

2.4. Objectives of Internal control over cash

The central objective of internal control over cash is to make sure whether the
organization is safeguarding and reporting cash in the appropriate manner. As cash
has the highest risk and is difficult to control it needs extensive and tight and
effective internal control procedures (Warren, Fees, Reeve 20 twentieth edition
accounting: 182).

2.5. Internal control over cash

Most of the processes relating to cash handling are the responsibility of the finance
department, under the direction of the treasure. These processes include handling and
depositing cash receipts singing checks investing idle cash, and maintaining us
stodgy of cash, marketable securities and other negotiable assets. Because of ease
which money can be transferred cash is the asset most likely to be diverted and used
improperly by employees.

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In addition, money truncation either directly or indirectly affects the receipt or
payment of cash. It’s therefore necessary that cash can be effectively safe guarded by
special control.
A. The Bank Account As A Tool for Controlling cash
One of the major devices for maintaining control over is the bank account. To get the
most benefit from a bank account all cash received must be deposited in the bank and
all payment must be made by checks drawn on the bank or from special cash
funds(Warren, Fees, Reeve 20 twentieth edition accounting,1995).
B. Bank Statement
Although there are some defences in procedures banks usually maintain an original
and a copy of all checking account transactions. When this is done, the original
becomes the statements of account that is mailed to the depositor, usually once
month. Like any account with customer or act editor , the bank statement shows the
beginning balance, check and other debits (deduction by the bank), deposits and other
credits (Additions by the bank ), and the balance at the end of the period may a
company the bank statements, arranged in the order of payment. The paid or
concealed checks are perforated or stamped «paid» together with the date or
payment(Warren, Fees, Reeve 20 twentieth edition accounting,1995).
C. Bank Reconciliation
When all cash receipts are deposited in the bank all payments are made by check, the
cash accounts is often called cash in bank. This account with the depositor in the
bank ledger, cash in the bank in the depositor’s ledger is an asset with a debit
balance, and the account with a depositor in the bank’s ledger is a liability with a
credit balance. According to Warren, Fees, Reeve 20th edition accounting (1995)
indicated that it might seen that the two balances should be equal, but they are not
likely to be equal on any specific date because of either or both of the following
1. Delay by either in recording transactions and
2. Errors by either party in recording transactions , to determine the reasons for
any error that may have been made by the bank or depositor the depositors
own records should be reconciled with the bank statement.(Warren, fees,
Reeve 20 twentieth edition Accounting 1995: 289).
3. Delay by either party in recording transactions and

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 4. Errors by either party in recording transactions. To determine the reasons for
any error that may have been made by the bank or depositor the depositors
own records should be reconciled with the bank statement (Warren, Fees,
Reeve 18 eighteen Edition Accounting, 1995:250).

2.5.1 Internal control over cash receipts

A. Cash Sales
Control over cash sales is strongest when two or more employees (usually a sales
clerk and cashier) participate in each transaction with a customer. Restaurants and
cafeterias often sue a centrally located cashier who receives cash from the customer
a long with a sale ticket prepared by another employee. Theatres generally have a
cashier selling pre numbered tickets, which are collected by a door attendant when
the customer is admitted. If tickets or sales checks are serially numbered and all
numbers accounted for, this separation of responsibility for the transaction is an
effective means of preventing fraud.
In many retail establishments, the nature of the business is such that one employee
must make over the counter sales, deliver the merchandise receive cash, and record
the transaction. In this situation, dishonesty may be discouraged by proper use of
cash registers or electronic point of sale systems.
The protective features of cash registers include:-
1. Visual display of the amount of the sale in full view of the customer
2. A printed receipt, which the customer is argued to take with merchandise and
3. Accumulation of a locked- in total of the day’s sales (Principle of Accounting
and other Assurance services 17 seventeen edition,2010:240)
B. Electronic point of sale system
Many retail stores use various types of electronic cash registrars, including on line
computer terminals often, an electronic scanner reads the Universal Product Code
on the product. The sales person need scan the code for the register to record the
sale at the product’s price, which is stored in the computer. Thus, a sales person
recording sales at erroneous prices substantially reduced. Besides providing strong
control over cash sales, electronic registers often may be programmed to perform
numerous other functions.

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 C. Collections from credit customers
In many manufacturing and wholesale companies, cash receipts consist principally
of checks received through the mail; this situation poses little threat of dislocation
unless one employee is permitted to receive and deposit these checks and also to
record the credits to the customer’s accounts. Atypical system of internal control
over cash received through the mail described below.
Incoming mail usually is opened in the mail room. Where an employee, prepare a
control listing of the incoming cash receipts. The listing shows the amount received
from each customer and identifies the customer by name or account number. A
copy of the control listing and the cash receipts are awarded to the cashier. The
remittance advices and copy of the control listing are for awarded to the employee
responsible for the customers’ accounts (Whittington Pany 17 seventeen edition,
2010:379).

2.5.2 Internal control over cash payments

All payment should be made by check, except for payment of minor items form
petty cash funds. A principal advantage is the obtaining or a receipt from the
payee in the form of an endorsement on the check. To secure in full the internal
control benefits implicit in the use of checks, it is essential that all checks be
renumbered and all numbers in the series be counted for un insured pre numbered
checks should be adequately safe guarded against theft or miss use voided checks
should be defaced to eliminate any possibility of further use and filed in the
regular sequence of paid checks. Dollar amounts should be printed on all checks
by the computer or a check protecting machine. This practice prevents any one
from altering a check by raising its amount (Warren, Fees, Reeve, 20-twenty
edition, 2010: 283).
A. Control Features of Avouched System

Avouched system is made up of records, methods, and procedures used in providing

and recording liabilities and in making and recording cash payments. Avouched system is one
method of achieving strong internal control over cash payments by providing assurance that
all disbursements are properly authorized reviewed before a check is issued. In typical
voucher system the accounting department is responsible for assembling the appropriate
documentation to support every cash disbursement. Avouches, in this usage, is an
authorization sheet that provides space for the initials of the employees performing various

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authorization functions. Authorization function includes procedures as extending and fouling
the vender’s in voice, determining the agreement of the invoice purchase order and receiving
are recorded in avouched register, by an entry debiting the appropriate asset, liability, or
expense accounts and crediting vouchers payable (Warren, Fees, Reeve, 20-twenty edition,
2010).

On the payment date, the voucher and supporting documents are removed from the tickler
file. A check is prepared but not signed. The voucher supporting papers and the check
(complete except for signature) are for awarded to the finance department. The treasurer
reviews the voucher before signing the check the check is the mailed directly to the payee,
and the voucher and all supporting documents are perforated to prevent reuse. The cancelled
vouchers are returned to the accounting department, where an entry is made to record the
cash disbursement (a debit to vouchers payable and credit to cash). Paid vouchers usually are
filed by voucher number in a paid voucher file (Warren, Fees, Reeve, 20-twenty edition,
2010).

B. Internal Control Aspects of Petty Cash funds

Internal control over payments from an imprested petty cash fund is achieved at the time
the fund is replenished to its fixed balance, rather, than at the time of handing out small
amount of cash.
When the custodian of petty cash fund requests replenishment of the fund, the
documents supporting each payment should be reviewed for completeness and
authenticity, and perforated to prevent use.
Petty cash funds are sometimes kept in the form of separate bank account. The bank
should be instructed in writing not to accept for deposit in such an account any checks
payable to the company.
The deposits will be limited to check to replenish the fund and drawn payable to the
bank or to the custodian of the fund. The prohibition against deposit of checks payable
to the company is designed to prevent the routing of cash receipts in to petty cash, since
this would violate the basic assumption of limited disbursements and review at time of
replenishing the fund (Warren, fees, Reeve 20 twenty editions, 2004:292).

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2.5.2 Change fund
Retail stores and other business that receive cash directly from customers must maintain a
fund of currency and coin in order to make change. The fund may be established by drawing
a check for make the required amount, debiting the account cash in hand and crediting cash in
bank. No additional charges or credits to the cash on hand account are necessary unless the
amount of the fund is to be increased or decreased. At the end of cash received during the day
is deposited and the original amount of the change fund is retained. The desired composition
of the fund is maintained by exchanging bills or coins for those of other dominations at the
bank (Warren, fees, Reeve 18 eighteen edition, 1995:252).

2.5.3 Cash Short And Over

The amount of cash actually received during a day often does not agree with the record of
cash receipts. Whenever there is difference between the record and the actual cash and no
error can be found in the record, it must be assumed that the mistake occurred in making
change. The cash shortage or over age is recorded, in an account entitle cash short and over.
A common method for handling such mistake is to include in the cash receipts Journal a cash
short and over debit column in to which all cash shortages are entered. If there is a debit
balance in the cash short, and a cash short and over credit column in to which all cash over
ages are entered. In there is a debit balance in the cash short and over account the end of the
fiscal period, it is an expense and may be included in «Miscellanies administrative expense»
on the income statement. If there is a credit balance it is revenue and may be listed «in the
other income » section. If the balance becomes larger than may be accounted for by minor
C.P.A in 1989, sixth editions.

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 CHAPTER THREE

3. METHODOLOGY

3.1 Description of the Study area

Goba Woreda is located in 07 00’338’’N and 0390 58’009” E and located in the North Western extreme parts of
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the Bale Zone. It is bounded by West Arsi Zone in the West, Harena Buluk and Mena district in the South,
Sinana woreda in the East, and Dinsho Woreda in the North. It has a total area of 1674 km2 which ranked the
district 12th largest among the zonal district (Goba Woreda socio economic profile,2015).

The area of the district leads the district leads the district to have a share of 2.55 percent from the total area of
the zone. Goba woreda is one of the administrative territories of Bale Zone with an area of 1674 km2, which
ranked the woreda the 12th largesrt among the zonal district.The area of the district leads the the district to have
a share of 2.55 percent from the total area of the zone (69,661 km2).The woreda has a distance of 15 km from
Zonal capital called Robe and 445 km from country’s capital city and the region called Finfine(Goba Woreda
socio economic profile,2015).

The land use of Goba woreda highly comprised grazing of livestock. But small amount of land is moderately
cultivated which found in some part of woreda North.The present day Goba woreda land form, relief
configuration, rocks, mineral distribution and physical features are the result of past geological history of
Mesozoic and Cenozoic era.During Mesozoic era of Neogene period there was a formation of rock in the
Western and Southern part of the woreda. During Oligocene-Miocene period there is Arsi and Bale rock
formation at the tip of North Western part of the woreda. During the Cenozoic era (late-early of Quaternary
period) there was a formation of plateau and Basaltic rock at the Central and Eastern part of the woreda.

The highest elevation of the woreda is Tullu Dimtu Mountain and Batu Mountains. They have an elevation of
4,377m and 4,307m above sea levels which found along Northern part of the woreda, where as the lowest point
of the woreda is roughly below 1500m below sea level which found at Wacho Kebeles near Goba Woreda.

The mean annual temperature of the woreda is 11.50c. The lowest temperature is 50c and highest is 180c
respectively. The mean annual rainfall is 1000 mm where as the lowest and highest rainfall is 800mm and
1200mm respectively.

The woreda connected with others woreda and the Zonal capital through two main roads. These are Robe-Goba
road and Goba- Delo Mena roads.

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3.2. RESEARCH DESIGN

To put the objectives of the study in to effect descriptive method of study is to be

conducted to observe the internal control over cash in Goba Woreda Finance and
economic Development Office.

3.3. DATA COLLECTION

The researcher will be used to different means of data collection mechanisms
(techniques).These are questionnaires, personal interview and from related written materials.

3.4 SOURCE OF DATA

In this study, researcher will be used both primary and secondary data. The primary sources
of data option from the beneficiary of internal control over cash.

The secondary data will be obtained from internal of the organization books, internet, annual
report, and other related materials.

3.5 SAMPLE SIZE AND TECHNIQUES

The target of people this study will be expected of the cash of salary for employees. From the
total number of 47 employees of the organization will be purposeful sampling techniques
selected with sampling require 30 out of the total employees to get professional ideas who
work in areas of cash.

3.6 DATA PRESENTAION

This research will be conducted by two stages of selected respondents.

Stage one: - first researcher will be select client with beneficiary of internal control over

Case and related with Goba Woreda finance and economic development office.

Stage two: - researcher will be used simple random sampling from clients select in stage

One and respondents are 30 employees in numbers.

3.7. DATA ANALYSIS AND INTERPRETATION

For the matter of this study the researcher will use tabular and percentage methods of data
analysis will be used to match the analysis with the descriptive research design.

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 3.8. WORK PLAN AND BUDGET
Table 3.8.1. Work plan and time schedule
Activities Time Schedule Sep to June

May
Nov

Mar
Dec

Apr
Sep

Feb
Oct

Jun
Jan

Au
Jul
Identification of The Title
Gather Necessary Data for the
Proposal
Writing the Proposal
Proposal submission
Literature review
Data collection
Data analysis
Research writing
1st draft research submission
Final thesis submission and presentation

3.8.2 . BUDGET

Table 3.8.2.1. Budget for stationery and materials

No Items Unit 2 Quantity Unit price Total price
1 Flesh Disk No 2 200 400
2 CD RW No 12 30 360
3 Stapler No 1 85 85
4 Pen Packet 1 150 150
5 Note book No 2 17 34
6 Bag No 2 550 1,100
7 Internet Day 45 30 1350
8 Print page 800 2 1600
9 Photo copy page 1000 1 1000
Sub total 6,079.00

Budget summary
Stationary=6,079, Contingency(20%)= 1216 Grand total=7295.00)

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3.9 EXPECTED OUT COMES
The main purpose of the study is to assess Control over cash in Finance and economic
development Office of Goba Woreda. The expected outcomes of the study are to
 Identify the policies and procedure of the internal control structure over cash
provides reasonable assurance that Goba woreda finance and economic
development office goals and objectives will be achieved.
 Check internal control structure over cash will be period review by
independent auditors.
 Determine whether the internal controls over cash procedure are being
effectively applied.
 Verify Goba Woreda Administration finance and economic development
office cash are efficiently under operation.
 To identify the factors that affect control over cash in Goba woreda finance
and economic development office

 Possible and relevant intervention mechanisms that would improve the

existing problem would be recommended.

3.10. Disseminations

Dissemination refers to the communication of research process and result to specific

audiences and follows the following steps.

3.10.1 Create a Dissemination Plan

•Develop a dissemination plan for Sample study.
• Develop a budget that supports dissemination efforts. This may include translation, printing,
mailing and/or other forum costs.
• Develop a timeline for dissemination efforts. Long term studies can do annual updates to
key stakeholders such as study participants, agencies assisting in recruitment and
targeted communities.
• Get input from study participants and community representatives on the methods to
disseminate research findings.

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• Make research results accessible to various audiences through Print resources such as
Research Portfolio
3.10.2 Disseminate research progress and findings to study participants.
• Ask study participants how they would like to be informed of findings.
• Disseminate positive, negative and null results.
• Make dissemination accessible paying attention to language and literacy needs of audience
as was done during the outreach/recruitment study phase.
3.10.3 Disseminate research progress and findings to service providers.
• Prioritize dissemination of results for organization that assisted with recruitment and/or
serve the target population.
• Emphasize the practical implications of the study results and treatment interventions.
3.10 4. Disseminate research findings to community.
• Use dissemination venues appropriate to the targeted representatives.
• Present research results to Community

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 REFERENCE
Accounting principle 1984 fess warren 14 fourteen Edition, philipe , fess , CPD , PHD
professor. Accountancy.Univeristys of Illinois, champlaign urbans.
Goba District Socio Economic Profile (2015). Socio Economic Profile of Goba District
of Bale Zone,Goba District Finance and Economic Development Office,Goba,
Ethiopia(unpublished)

Intermediate accounting 65 sixtth edition 1989, AO No Mosich, D,C.P.A Ernst and

Whinney professor of Accounting.
Intermediate accounting 3 third editions 2004, MC grow Hill book.
Principles and practice Auditing, Revised edition, Ravinder Kumer andVirender
Sharma, 2005.
Rich Hayes and Asnold schilder with Roger Dassen and Philip Wallege 1999,
Auditing principle an international prospective.
Warrens fess, Reeve 20 twentieth edition 2004 Accounting.
Whittington (Pany, principle of Auditing and other Assurance services, 2010,175
seventeenth editions.

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 MADDAWALABU UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

Department of Accounting and Finance

This questionnaire is designed for the employees of Goba woreda finance and economic
development office. To collect information about internal control over cash, the aim of the
study is for the partial fulfilments of the course. So, you are kindly requested to contribute to
the study by providing your felling honestly.

I. Personal Information
1. Sex Male Female
2. Age 18-25 36-45
26-35 above 45
th
3. Level of education 10 grade Diploma holder
12th grade first degree 4 above
4. Is there a separate clerk for receiving cash?
Yes No Not applicable
According the above question number 4
5. If you say No, what is the reason, explain

6. Are cash collections deposited in trust daily?

Yes No
7. Is there a custodian for un used cash?
Yes No
8. If your answer is ‘yes’ which one is likely the problem?

9. Do you accept mail remittances?

Yes No
10. If yes, is there responsible person for opening mail remittances?

11. Is there a petty cash fund?

Yes No
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12. According question number 11. Is the petty cash fund operated on an ‘impress
system’?

13. Is there a petty cashier for handling petty cash documents?

Yes No
14. If your response for question 13 ‘yes’ please explain?

15. Are payment vouchers and supporting documents properly authorized before
payment?
Yes No
16. If your answer ‘yes ‘what is the reason, explain?

17. Are all vouchers serially filed?

Yes No
18. Are all cheques signed by at least two persons duty authorized?
Yes No
19. If you say yes explain and reason out

20. Are un used cheques under the control of a responsible official?

21. Are cancelled (voided) cheques retained with cheque –stub?

22. How do you evaluate your organization audit inspection?

Thank you!

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