Role of Financial Management in a Co-operative Organization

INTRODUCTION
Financial management involves all the activity of the financial managers concern with the rising of capital lining cash and credit requirement including the effective control of financial resources
The activity could be suggested as follows;
1. Converting forecast into planned and budget
2. Planning the appropriate capital structure
3. Raising cash flow outside the business
4. Forecasting the future
5. Investing surplus fund
6. Controlling the cash balance and flow in accordance with plans and with changing circumstance.
7. With the emergency of finance as a separate field emphasis was more or less on legal matters such as mergers

FORMATION OF NEW COMPANY DISPOSAL AND CONSOLIDATION
With the most vital problem of the firm was identification of the means for raising capital for possible expansion due to the increasing wave in industrialization. The mobility of fund from the
Areas of surplus to the areas of scarcity posed a lot of problem. Because of the radical changes which ochre during the depression of 1930 which culminated into the failure of many business finance which re-directed to bankruptcy, reorganization and liquidity for profitability under the imperfect perfect competition continues to be the motivation to maximize the profit and wealth of the owner. To ague to maximize profit has led to he study of financial management of which attribute factor can be socialized as follows;
(a) Saving
(b) Business growth
(c) Inflation
(d) Competitive
Base on the above background, some through was giving a financial management to provide skillful planning control and execution of financial management activity.
The practicing managers are interested in this study because among the most crucial decision of the firm are of those which relates to the financial matters and so are giving better treatments for better understanding of financial management which provide them with conceptual and annalistically insight on the capital fund and using the capital fund are called financial function of any firm
GOALS AND OBJECTIVE OF THE FINANCIAL MANAGERS
Financial which is the life wire of any business and as developed in 1900 since it concerns the actual flow of money as well as any claim against money. The financial mangers subsequent decision is made in such more co-ordinate manner responsible for the control system. The financial managers are concern with;
(a) Financial planning with the bank
(b) Raising of fund
(c) Allocation of fund
(d) Financial controlling of fund
(e) Interpretation
FINANCIAL PLANNING
The involve he estimating and planning of the future flow of cash receipt and disbursement raising of fund involve organizing the raising of fund which involve the funding necessary for planning. The second is the acquisition of the fund. There are a wide variety if the fund. It has certain characteristic as cost maturity, availability. The encumbrance of asset and other terms exposed by the capital.
On the bases of this function, the financial managers of a bank must determine the best mix of finance for the banking industry. Therefore the financial managers have to take the issue of formulation of policies. In the interest of such policy is to plane, co-ordinate, motivate and control activities of the firm, which are responsible of the efficient financial management of the resources. An efficient financial management thus is the same as a valuable aid to the process of decision-making and a major contributing to the pale and a major contribution to the pale of economic. The principal responsibility of financial managers involves a theory evaluation of investment financial and dividend decision with the sole aim of maximizing wealth. The financial managers studies the annalistically techniques and the environment where financial decision are made.
The financial manager keeps accurate account and records of, preparing the cost, providing the means for payment of bills, procuring additional in case of cash needed. Investing fund in asset and procuring the bets means of financing in relation to the overall development of the organization. The task of the financial manager is invisibly faced with problem with those of profitability, liquidity and risk factor, which influence both internal and external environment.
Only sound financial decision based on the analysis, planning and control of activity therefore can help optimized the values of operational optimization of the profit and shareholders wealth in one of those guiding.
Objective of business enterprise, which its allocation of resource and the financial decision for the financial manager. The financial manager must be aware of sources of finding the business and be guided by time, selection and combination of those available. That is the financial manager dilemma and the principle of sustainability. The financial managers dilemma is that of profitability and liquidity while sustainability is the principle of time balancing with asset and liability that is using short time term liability to financial short term asset and long term liability to finance the long term asset.
ALLOCATION OF FUND
Wise use of fund is allocating such fund in such project or such venture that will yield optimal return ensuring efficient use of fund. The financial managers ensure the efficient allocation of fund among the various uses. The allocation must be in accordance with the underlying objective of the firm to maximize the profit in the customer’s wealth. The role of financial manager has expanded of the management of the working capital to long-term asset and liabilities. He is concern with ways of efficient managing this current asset in order to maximize efficient profitability relative to the amount of fund tied up in the asset
FINANCIAL CONTROLLING
Financial monitor financial operation to ensure the cash flow are proceeding according to the plane
INTERPRETATION
The bank is part of financial community. It financial management can be fully interpreted only with the contest by he working of the financial institution and the markets
ORGANIZATIONAL GOALS
Since this project is concern with the role of financial managers in a cooperate organization, therefore, it is important to note the goal of any financial.
Maximization of profit. This is the frequency encountered goals of any business impact all business believed that as long as they are earning as much as possible while holding down cost, they are archiving the goal of profit maximization appears performance.
b. Maximization of wealth the main objective of financial management is the maximization is accomplished by maximizing the sum of the present value of the stream of dividends received and the present value of the increased in the market values of the shares of stocks held by the shareholders. Thus, the apparent wealth maximization is the best economic objective shareholders as the owns and for the bank whose primary interest is to customers own. The environmental scope of financial manager in executing their job, Financial managers do not have absolute authority in carrying out their responsibilities their actions are constrained by certain factors beyond their control.
THESE FACTORS ARE DIVIDED INTO TWO
a. Internal environment factor the principal factor in this case is the unavailability or the lack of human resources and the organizational self imposed standard.
b. B. The external environment factor such as the political legal framework cultural and social values, the economic climate, technological trends and custom attitude .It is therefore imperative that financial manager should take cognizance of environmental factors that affect their decision.

STATEMENT OF PROBLEM
There has been unprecedented increase in the quest for the answer of the following questions posed in order to clarify the duties of financial manager, which is the prospective rank of a student studying finance. Financial managers do not have authority in carrying out their responsibilities their responsibilities their actions are constrained by certain factors beyond their control. These factors can be dividrdinto two Internal environment factor .The principal factor in this case. The [rinc9ipal factor in the case is the unavailability of human resource and the organization self imposed standard. The external environment factor such as the political legal firm work. Culture and social value. The economic climate technological trends and the customers’ attitude. It is therefore imperative that financial managers take cognizance of the environmental factors that effect their decisions.
There has been unprecedented increase in the quest for the increase for answer for the following questions posed in order to clarify the duties of a financial manager, which is the prospective rant of studying finance.
What is managerial finance? How importance is the financial functions for the company. Are the financial mangers responsible for the performance of certain task? Dose this means that his action are design to accomplices specific goals. How and when did the financial archive the firm objective, which is the finical managers definition of the fare price, and how is it related to his firm return and investment capital. One may logically ask, why are we interested in this cash flow if they do not affect the profit. Why cannot the profit effect not be taking directly not the account in the analysis? What tools and techniques are available to him and how dose he goes about managing his own performance. On a general scale, do they have any operational meaning? That is how can managers operation use to further national goals. Having identified these questions, the provision of possible answers to the listed question constitutes areas of possible consideration of the project. As stated that the financial management must find a rational base for answering the following three questions;
(a) How large should an enterprise be and how fast should it grow. What should be the composition of its liability
(b) What should be the composition of its liability
(c) In what form should it hold it asset board decision.
The asset question stated above relate to three board decision areas of financial management. Investment financial managers become important that the primary research conducted on a named company serves a dual purpose this not only serve as part of the tools in answering the questions, but is mainly used to unfold the extent to which the financial managers of a company is executing his duties according to the project

SIGNIFICANCE OF THE STUDY
The purpose of this project: the role of finical management in cooperate organization, is to equip the practicing, finical managers, financial controllers, and director of finance, treasurers, student of financial studies and readers with a basic understanding of financial decision. The financial manager carries out financial decision maximize through the following;
(a) Current asses management
(b) Capital budget decision
(c) Dividend decision
(d) Financial decision

CURRENT ASSET MANAGEMENT
The financial manager has every right to manage the long-term asset and also the duties to mange the current assets, efficiently to safeguard the fund against liquidity or insolvency
Investment in current affects the firm profitable liquidity and risk. If the firm doses not invest sufficient funds in current asset, it may become illiquid. But it would less profitability, as idle current assets would earn anything, in order to ensure that it would not earn anything. In order to ensure that neither insufficient nor unnecessary funds are invested in current asset, in fact it should develop sound techniques of managing the current asset.

CAPITAL BUDGETING
It is investment decision of the firm to have its refund investment in long-term project in anticipation of expected flow of future benefit over a period of years. This decision could be either to mechanize a process, replace a machine with another modern type, selecting between machines, and induction of new product or business expansion.
These features are;
1. Investing current funds for future benefit
2. The period of inc=vestment which involves long term activities
3. The potential benefit, which will accrue to the firm over a period of time.

DIVIDEND DECISION
The finical manager must determine the optimum dividend – payment ratio. He should consider the questions of dividend stability, stock dividend and cast dividends. Financial manager must divide whether the firm should distribute all profit or retain the balance.

FINANCIAL DECISION
The financial manager must decide when, how, and whom to acquire fund from to meet the firm investment needs. The significant t issue before him is to determine the proportion of equity capital and dept capital. The proper balance will have to be struck between return and risk once the financial manager is able to determine the bets combination of dept and equity. He must raise the appropriate amount through the bets available resource.

RESEARCH HYPOTHESIS
Base on the certain theoretical assumptions, hypothesis will be formulated below. There theoretical assumption, which include the established fact that the level of investment firms undertake and as such, the level of dept end by firms. Investment involve additional rest or financial assets and is usually measured in terms of fund used in the process, this funds include both equity and debt.
Ho: the level of debt financing has a negative effect on the economy
Hi: the level of financial has a positive effect on the economy
Ho: the level of dept financing has a positive effect on the performance of the employee
Hi: the level of debt financing has negative effect on the performance of the employee
Ho: the level of debt financing has not positive effect on the productivity of a firm
Hi: the level of debt financing has a positive effect on the productivity of the firm.

LIMITATION AND DELIMITATION OF THE STUDY
The research, may not fail to expose some of the constraint or restriction we have encountered in collecting the material for the project. There is no gainsaying the unavailability of textbook in this field of study especially in developing country like is a different.
Hence, inspite of the fact that the published financial statement by this banks are really seen, they are equally not comprehensive as regards the needs of a researcher. Some important information is not usually available for further information cannot be overemphasizing. Some claim the compliance with their management policies not to disclose some vital information to the public. It is a known fact that most banking industries had their headquarters in Lagos and it is where most decision are taking. Reading on this fact, the questionnaire sent to some of the industries could not come back due to the irregularities in our communication system.
However, therefore the firm (union bank Plc Enugu) was referred to after the researcher might have compared the information available to him in the respective banking industry that cooperate with him within the locality.
Union bank Nigeria Plc started operation in the year 1917. Union bank if Nigeria Plc Enugu has five (5) branches in Enugu

DEFINITION OF TERMS
The general ideal of this work “ The role of financial manager in a corporate organization looks into the following perspectives;
Chapters one give the general explanation of the subject from the historical perspective, organizational goals, and statement of problem, goal and objectives.Significance of the study and limitation and limitation and research hypothesis
Chapter tow – literature review from the general. Overview, financial ratio and profit planning management of current asset, budgeting and investment and management of current asset, budgeting and managing the financial and management of short and medium term.
The financial management involves all activities of the financial manager concerned with raising of capital, planning cash an credit requirement including the effective of the control system as the financial recourses. The activities could be selected as follows (a) converting forecast into planes and budget
(b) Planning the appropriate capital structure
Chapter two, literature reviews from the general overview, financial ratio and profit planning management of current assets, budgeting and financial analysis. Budgeting and investing. Managing of small financial strut and mangling f short and long term financing.
Chapter three deals with the research methodology conducted and consulted from the flow. Personal interview, secondary source of data, questionnaire hypothesis test and empirical analysis of the named company.
However, the chapter four deals with the discussion of result through financial ratio analysis, hypothesis testing and implication of the result
On the other hand chapter five look into the summary, conclusion and recommendation respectively finally followed by bibliography, glossary and appendix