CASH FLOW STATEMENT Introduction A cash flow statement is

							CASH FLOW STATEMENT

Introduction
A cash flow statement is a listing of the flows of cash into and out of the
SACCO.

For purposes of the Cash Flow Statement, the word “Cash” refers to Cash,
Petty Cash, and commercial bank checking accounts, and also to cash
equivalents (high-liquidity short-term investments), i.e., those accounts that can
be easily converted into cash at a given time, such as savings accounts and
other sight deposits or investments.

By creating a cash flow budget you can project your sources and applications of
funds for the upcoming time periods. You will identify any cash deficit periods
in advance so you can take corrective actions now to alleviate the deficit. This
may involve shifting the timing of certain transactions. It may also determine
when money will be borrowed or raised. If borrowing is involved, it will also
determine the amount of cash that needs to be borrowed. A cash flow
statement shows liquidity but not profitability.

The cash flow statement mainly contains 3 parts:-

   1. Income form operating activities
   2. Income from investing activities
   3. Income from financing activities

Income from Operating Activities

This part shows if the SACCO really generated its income from its core
business. The cash flow from operations is divided into two parts. The first
part shows activities which lead to cash increase. This include cash sales of the
various products or services, loans collected, credit received, interest or
commission received, registration or entry fees received (all on cash basis). This
will represent the total cash inflow to the SACCO.

The second part represents all cash outflows in the line of business operations.
It includes the cash given to vendors, loans disbursed, any expenses that were
incurred during the period and were actually paid for in cash and any
repayments for financing previously received.
The net of these two parts i.e. the increase and decrease in cash represent the
cash inflow/outflow from operations.

Income from Investing Activities

This section focuses on the flow of cash in and out of the SACCO as a result
of changes in its tangible assets and investments undertaken. It relates to
accounts that are part of Long-Term Assets, whether earning or non-earning.

 In most of the time this part posts a negative value. This is because the
SACCO may want to expand and thus will take out a substantial amount of
cash, it may want to replace old and obsolete assets with new working ones.
For these reason you find that the balance is most times negative. Any sale or
disposal of assets is contributes to cash increase while purchases decrease the
cash at hand



Cash flow from Financing Activities

Financing Activities relate to accounts that are part of Long-Term Liabilities
(Interest and Non-Interest-Bearing), and of Capital (Equity) accounts. The cash
outflow in this section will detail redeeming of the shares and any debts
payments (principal amounts).increase of this section will be any form of long
term capital or financing received.

Control

A calculation has to be done whereby you get the summation of net cash flow
from operations, investing and financing. To make sure that the cash flow
statement is correct reconciliation is done whereby the beginning cash balance
has to be added to either decrease or increase as noted above. This has to
automatically sum to the closing cash balance. Any discrepancy from the
closing balance should be investigated immediately.
SACCO: ___________________________________________

                              CASH FLOW STATEMENT
                 For the Period _________________________
              [ Increase (Decrease) in Cash and Cash Equivalents ]


Cash Flow from Operating Activities:

Inflows (Cash Increases) -

Cash Sales (Products or Services)
Collection of Accounts or Documents Receivable
Collection of Loans
Short Term External Credit or Savings Deposits Received
Interest, Commissions, Dividends, etc.
(from any source; i.e., loans, investments, etc.)
Other Income (Entrance fees, rent, photocopies, etc.)
                           Total Cash Inflows                                    (a)


Outflows (Cash Decreases) -

Cash Payments to Vendors
Loan Disbursements (net of restructuring) & Savings Withdrawals
Repayment of Short Term Ext. Credit, Doc. & Accounts Payable
Payments to Employees (salaries, benefits, training, etc.)
Payment of Accued Expenses
Payment of Interest, Commissions, Bank Charges
Payment of Marketing Expenses
Payment of Governance Expenses (Board and Comittees)
Payment of Administrative Expenses
Payment of Other Expenses and Services
                       Total Cash Outflows                                       (b)


     Net Inflow (Outflow) of Cash from Operating Activities            A = (a) - (b)


Cash Flow from Investment Activities:

Sale (+) or Purchase (-) of Fixed Assets
Sale (+) or Purchase (-) of Investments
Payment (-) of Deferred Expenses
         Net Inflows (Outflows) from Investment Activities                        B


Cash Flow from Financing Activities:

Sale (+) or Redemption (-) of Mandatory & Voluntary Shares
Long-term External Credit Received (+) or Pepaid (-)
Donations Received
Dividend Payments
          Net Inflows (Outflows) from Financing Activities                        C


Net Increase (Decrease) in Cash                                      D = [A + B + C]
Plus: Balance of Cash at Beginning of the Period                                  E
Cash Balance at End of Period                                                 D+E


Signatures:

__________________________________
Manager

__________________________________
Accountant

__________________________________
Date