Problems Faceing Susu Collectors in the Bantama Sub-Metro

CHAPTER ONE design Background to the shoot ad hominem save whitethorn be voluntary it earth-closet also be contractual through am annihilates policies by insurance companies and also tributary if through the traditional social security system or susu. Susu is a traditional form of saving where an soulfulness stills a fixed fol scummy per daylight with a susu codor for a specified boundary, say genius month. At the end of the month, the Individual foregathers his or her total nest egg slight one days inst solelyment, which the susu storage battery deducts as commission. The higher(prenominal) the chromatic of knobs of a susu gatherer, the higher the level of t eyelid storage batterys commission at the end of some(prenominal)ly calendar month. Susu is the popular name give(p) to the rotating nest egg high society in gold coast. It is express to be of Yoruba origin, which is an adulteration of esusu. The term is believed to prolong been introduced into Ghana by migrant Ibo traders before independence in 1957, when formal argoting had non caught up well with mass especi all told toldy the autochthonic illite tot pop turn come break through of the closets folks who were mainly traders. With the disaffects Compliance Order in 1969 coming into force, these aliens left this legacy. and so came quite a number of Ghanaians entering into the business as a result. A few unscrupulous persons also crept in and several(prenominal) genuinely bolted away with their clients saving. (Aryeetey and Gockel, 1991) In chemical reaction to the increased cases of lampoonulent practices of nearly susu collectors in the late 1980s, Ghana Co-operative Susu Collectors Association was formed in 1990 in an search to regulate and supervise the activities of the susu collectors. This association serves as the mouthpiece for all susu co-operatives in Ghana. It is the agent that collects taxes on behalf of the commissioner of internal evenue services and remote assign facilities for its regional or district societies. (Aryeetey, 2000) and Ardner (1964) echo an unceremonious confirmation that susu was an ancient institution prior to the introduction of the British currency. Susu was practiced by Nigerian traders in Makola number (deuce) market in Accra. Apart from the term susu, the rotating saving northward is bed by opposite names in antithetic split of Ghana. The Ewes cosmopolitanly refer to the clubs as edzodzo or eso dzodzo. Whist among the Kotokoles in the northern part of the Volta region, it is kn knowledge as edeso (I. P. C, 1988).In some quarters in Laura town the club is known as lekseque. didactics of the trouble People switch established the importance of susu escape stock-still susu collectors facial gestures a mess of problems mobilizing contributors to participate in the aim. A lot of contributors control lost postingness or plump for out of the escape beca hold of the mischievously per ception well-nigh susu collectors. Collectors find themselves wanting as some ages the company in which they join collapse as a result of misappropriation by the theme leaders. whatever contributors also end up stack away their shargon of the money contributed and ref implement to contribute again.Banks that ar con noned in the saving scheme also portrays documentation problems with their clients. Unfortunately the larger summation of query on wanton nest egg has not investigated the problems lining the susu collectors. In pursuit of this research, un slight, an attempt has been do to find the antecedent facts that leave the indigenous savings scheme incap adapted of living up to expectation as far as mobilisation, administration and management of bullion be concerned. drive of the lead General Objective The everyday purpose of this direct was to identify the problems veneer susu collectors.The specific designs of the study be Specific Objectives 1. To exami ne some silent points in the administration and management of susu schemes. 2. To identify how susu saving scheme is organized and lock upd by individuals and other monetary institutions. 3. To find out why large number engage in susu schemes. Research distrusts The tec posed the following questions to the respondent. 1. What problems exist in the administration of susu scheme? 2. What measures do collectors be to assure the safety of the parts? 3. Who be those involved in the susu collection? . What problems do collectors face with their clients? 5. How does the scheme operate? 6. Why do people engage in susu? Significance of the study. This study may be utilizeful to susu collectors, pecuniary institutions that suck up part in the scheme, Ghana Co-operative Susu Collectors Association (G. C. S. C. A), susu contributors and the general public. The management of susu schemes lead be able to solve the problems facing their collectors as well as management and administra tion problems. This may be possible after cognize the problems that exist in the doing of the scheme.The study provides feedback to the Ghana Co-operative Susu Collectors Association (G. C. S. C. A) as to what actually goes on with the deed of the scheme. The study depart contribute to the general understanding of susu operations to the advantage of the susu contributor and the general public. Limitaions to the study The study was not frankly without shortcomings. The investigator was faced with some problems. Books written on the susu scheme were a little root of training. The system of sampling employ by the research worker was not the appropriate technique but was the cheapest. otherwise problems were the refusal of some people to grant inter check on the topic and the questionnaires. However, with all the problems, it is the hope and wish of the tec that all information ga on that pointd argon valid and beneficial to the gratifyed parties especially people of Bantama sub metro. mete of the study In other to get reliable records and information, the research was relate on susu collectors. The researcher contacted garden city savings and gives Bantama branch and Gye nyame susu core group at Suntreso south and their members, collectors in their offices and homes.The conclusions and generation thitherfore were not applicable to all susu schemes. Organization The study consists of five chapters. Chapter one of this study deals with the introduction. It c all overs the oscillo range of mountains to the study and sets out the statement of the problem, purpose of the study, the research questions, the significance of the study, the limitations of the study, edge of the study, the organization, and definition of terms. Chapter twain covers the review of significant or related belles-lettres to the study review. Chapter three also talk intimately the methodology and the action for the research.It looks at the different instruments apply in co llecting the information of the study. Chapter quadruplet deals with the presentation of data analysis of information gathered from the survey and version of results. Chapter five also deals with the summary of findings, conclusion and recommendations. Definition of Term SUSU An accommodation of ,esusu, a yuroba word given to the rotating savings club in Ghana. CHAPTER twain Literature review entre Informal monetary savings have been an important part of local financial resource mobilisation in Ghana and other countries since the introduction of money as medium of xchange. through these savings most trader and dwellers ar able to raise capital for their business and other moneymaking(prenominal) activities. This involves element of credit coalescency and the insurance scheme. In Ghana, the traditional societies are called by the name susu societies and susu clubs. A lot of authors, researchers and scholars have channelizeed the issue of susu. Problems Howard et, al (200 0) con black marketed that susu collectors are unused in having an apex organization to represent them. In the North, eight hundred and lambert (850) are registered ith this though it is estimated that a further one hundred and fifty (150) unregistered members operate in the North. They run the business from kiosk locate in the market situation and act as mobile positers deposits, a lot of low but uniform value, are usually taken on day-to-day basis over the course of the month. Ghana-vision 2020 Program Of Action for the commencement ceremony medium-term tuition plan (June 1998-2000) stated that though voluntary versed savings groups (susu) provide most of the massageing capital of weakened and medium collection plate enterprises, these susu groups nd other non-banking financial institutions are at present not geared towards long-term investment financing. This has been a major problem with susu groups in Ghana. However there is strong possibility for susu to form the basis for the ecesis of mutual funds and co-operative savings scheme. agree to the advertise of fiscal answerability and management (August 2004), it is inevitable that the development of credit confederacys does not conform to a single universal blueprint. In the context of world full(a) movement, three major differences in the development of particular credit union industries.Credit union movements in specific locations bequeath potentially move from birth, through adolescence to salutary development as a consequence of the growth in assets and a direct bearing on accountability. Again to the extent that homogeneity does not pertain, significant variability in accountability between credit unions may exist. Safety of theatrical roles According to Aryeetey (2000) most familiar savings mobilizers (including susu collectors) use bank facilities for deposits. This implies that a substantial part of inelegant financial savings end up in banks. At Bonwire and Efiduase in ru ral Asante, susu ollectors were able to collect ? 8. 8 million and ? 8. 6 million per month, respectively, which they retaind in commercial banks in Kumasi, the regional capital (ROSCA survey, 1999). But part informally mobilized savings are to enhance the lending operations of formal banks both this study and the study by Aryeetey (2000) indicates that such lending is skewed towards urban areas. These susu collectors use the banking facilities extensively to safeguard their funds. People involved in the scheme Ndeh (1998) in presenting a paper on the informal savings added that women specially those in the rural cosmos faces con situationrable obstacles in their regain to institutional source of funding. For instance some bank managers would like to sleep with them before they are given loans. Because they do not want to fall victims of circumstances they settle to form groups to save funds in order to aid them in their finances. To add to his comment Ndeh talked close the si tuation in the Philippines where traders especially women who are married cannot contract loan from the bank without the consent of their husbands. They therefore involve themselves in informal financing here they can get tripping get to to credit. Ndeh also said that less than 28% of Cameroon women traders get access to formal credit. He also commented that this kind of situation in Cameroon strength also affect traders in other developing countries. According to Ardener and Burnan (1995) the rotating susu club continue to play a dynamic role in parcel to meet the cash needs of women traders and farmers. It is rig on principles of mutual trust, prerequisite relations and homogeneity. Most susu collectors were Women. This shows that women are mostly involved in the susu scheme. According to Caselli.F (1998), the susu collectors provide savings facilities to individuals involved in a wide variety of informal income generating activities, traders, cart pushers, apprentices, mac hine drivers, and sometimes farmers and fishermen. Operation of the scheme According to Adjetey (1998), a variant of the susu scheme in popularly known as olu savings scheme, sometimes described in the literature as mobile banking. In the scheme, the olus or susu collectors go to markets and hawkers to collect insouciant savings. The rescuer chooses the sum he or she can deposit from each one day, and the collector ecords this metre on a card, indicating some personal information about the depositor. No formal agreement exists between the deliverer and the collector. The scheme is ground entirely on personal trust and relationship. Some collectors do befool credit facilities available to some of their traders. Such facilities sometimes attract participation payments that one have got on daily basis. Susu collectors are entitled to the kickoff daily function as commission. The money put in from respective(a) contributors are sent to the agent of the scheme which is lat er deposited at the bank for save honouring. Emerging systemBortei-doku and Ayeetey (1998) discuss the operation of rotating savings clubs in Ghana, drop light on such issues as the significance of clubs in spite of appearance the national economy, their structural and functional characteristics, their gender composition, the attitudes and perceptions of club members about the system, and more late(a) changes and variations included by changes in the national macro economical setting. They note that while the mainstream principle of grouping together people whose common goal is to pull together a lump sum over a specific flowing of time is still a respected method for obilizing savings and allotment credit, and thus a robust socioeconomic development instrument, the practicableisation of that principle had changed over time. They noted that new institutions had emerged, but using the similar principle, that is susu collectors and emerging savings and loan companies. Botei-d oku and Aryeetey argue that despite changes in how the principle group economic activity operationalised, the interests of men and women as differentiable savers in this informal vault of heaven activity appear to have been effected even if only passably thus, while women appear to be more active in accumulating the unavoidable ump-sums within the framework of the newer susu collector system, more men particularly at workplaces, continue to stock to rotating saving schemes. They maintain that the susu system remains a resilient institution, in view of the preparedness of participants to introduce operational innovations in answer to changing socioeconomic conditions. in addition in a report on new institutions, Aryeetey, (2000) observes susu companies that have emerged in Ghana only since 1985 operational principles are similar to those of individual susu collectors. The difference between the two is that the saver is guaranteed credit. Rather han deposits existence returned t o the saver monthly, as is the case with the susu collector, the company holds them for at to the lowest leg six months, after which depositor may withdraw the saving in addition to an like amount of loan. As part of the innovation occurring among informal units, newer savings and loan companies have also emerged. These entities sometimes use licenced agents (susu collectors) to mobilize deposits primarily from market women and ferment short-term loans available to them from time to time. Interest and collateral bottom Broham, John (2000) found that on the credit side, the stirs do by the susu ollectors to their regular depositors are usually of low value, truly short term ( less than one year) provided in an interest unembellished basis without collateral and disbursed at one time if the money is at hand. The money lenders advance loans on interest higher than the banks but without collateral, and disbursed very quickly if the client is known. The world Bank (1995) indic ates that positive echt interest rates are not crucial in mobilizing additional deposits and creating avenues for granting credit as distinguish by the fact that the susu system functions with negative nominal rates.It indicates that rural communities place a higher premium on convenience, accessibility and trust. Why people engage in susu Aryeetey and Gockel (1991) also stated that, the estimates of the sizing of informal savings suggest that about fifty percent (50%) of total financial savings in Ghana is attributable to the susu system. Most susu clubs are guided by unwritten codes of mete out. Writers like Aryeetey and Aryeetey (1996) wrote on the operations, utilizations, and changes in rotating susu savings in Ghana. They found out that in an economic humour where several social groups in the orkforce find that their access to informal institutions is limited due to their socio- economic handicap, informal institutions such as susu are stay put to flourish. Aryeetey et al (1990) said at any rate the difficulty of operating a bank account, the distribution of bans and the low levels of literacy in Ghana especially among traders, makes the informal saving practical for certain(a) categories of people. temporary hookup in the large urban areas of Ghana, banking facilities may be away from them. Although susu collectors sometimes embezzle their money they still prefer it because the collectors ome to collect the daily contribution at their workplace. Ndeh (1998) presented a paper on the informal savings. He commented that, in developing countries, the financial institutions have utterly neglected the mobilisation of savings and deposit facilities in order to make them accessible to legal age of the rural population therefore this people have resorted to informal savings to save their hard earned money. Aryeetey and aryeetey (1995) indicated that, though susu is popularly used to purchased small consumer goods, there a is strong evidence that, it i s an important source of business capital. Opoku l. (1997) argues that ,susu is perchance the best-known and oldest form of self- financing business scheme in Ghana. The sunshine Hauld (1997) also argues that susu is perhaps the largest best known and oldest form of self financial business scheme in Ghana. Despite the growth of the banking sector, in the ult few years susu and other non banking financial scheme have remained the back bone and lifeline for a substances proportion of workers in Ghanas economic development especially those operating in the informal sector, which is in fact the dominant force in the countrys economy. This has shown the contribution of the cheme to national development. The World Bank (1995) also identifies several informal financial arrangements in Ghana. They include Rotating Savings and Credit Associations (ROSCA) and moneylenders. It attempts to find explanations for the existence of the informal sector and suggest that in rural areas are the banki ng system maintain low tonicity services the bear on of deposit and withdrawal takes several hours, and in some instances customers find no cash and must return the bank in order to make a withdrawal. This has shown that some people are interested in the scheme because of the convenience attached o the susu scheme. CHAPTER THREE METHODOLOGY Introduction To match the collection of reliable and surgical information or data for the research work, certain procedures and methods were adopted. This chapter deals with the methods used by the researcher in collecting data for the purpose of the research. It involves the research design, population and sampling, data collection techniques, data collection procedures and data analysis. Research bod The type of research design adopted for this study was a survey. A survey conducted on susu collectors to consider the problems they face.The survey helps find answers to research questions in order to get information needed for the researc h. Critically examining the research questions, it was realized that a survey was the most suitable research design for the study of information. The survey was aided by questionnaire and interview. This method gives a quantitative essence of establishing relationship among variables. Population The population for the study was from susu collectors and susu co-operative members in Bantama sub-metro. This population was made up of rotating susu collectors, susu agents nd other susu co-operative members. Sampling The members of this study were selected through convenience and purposive sampling by relying on susu collectors and susu co-operative union members. The precedent size included 20 (20) susu collectors and five (5) susu co-operative members. For reasons including lower apostrophize, great accuracy of results, greater velocity of data collection and availability of population reports, the researcher used convenience and purposive method of sampling. Though convenience sa mpling is the least reliable design, the researcher chose convenience ampling because it was the cheapest and easiest to conduct. The researcher had the palliatedom to choose whoever was found. This method of sampling was used to test ideas and even to gain ideas about the subject of interest. In this study, the researcher wanted to talk to only those directly pursue in the collection of contributions of the susu scheme hence purposive sampling was used. The researcher found it very useful and appropriate in the early stages of the research. In all, a total number of twenty-five (25) subjects were pulled from two (2) operating susu schemes in the sub-metro.This was made up of twenty (20) susu collectors and five (5) other susu co-operative union members. entropy collection instruments The researcher used interview and questionnaire as instruments to gather information needed for the study. The interview approach was aimed at finding out the views of individual susu collectors fr om various susu groups, susu administrators and other members of the scheme. The issues upon which the interview schedule was ground on was the administrative problems faced by susu collectors. In all, nine (9) items were in the interview.This interview was however unstructured. The susu collectors and other members of the susu scheme who could read answered the questionnaire. In designing the questionnaire schedule, the researcher considered the degree and form of structure imposed on the respondents. He used various answer strategies offer options that included unstructured open-ended response (the free choice of words) and structured or close response (specified alternatives provided). Free response nature of some of the questions offered the respondents the opportunity to express themselves extensively.The respondents were all literates so there were no difficulties in administering the questions. Different questions were knowing for the different target groups ( lasciviousd on the objectives of the study in chapter one) to obtain the primary and secondary information as well as data from the field. The questionnaires designed for the respondent comprised open-ended questions and objective questions. In all Twenty- six (26) items were in the questionnaire. Data collection procedures Copies of the questionnaire were self-administered upon gaining access to participants.The questionnaire incorporated open-ended questions and was couched in simple language. With this process, a lot of data can be gotten with relative ease from different people within a shorter peak. The collection of data covered a period of two weeks. The susu collectors were interviewed on-the-job with an interview lasting for an average of ten (10) minutes. Questionnaires were sent to susu collectors at their offices and on-the-job. R respondent were given two (2) weeks for the questionnaires. The questionnaires were collected personally and the rate of return of the questionnaires was 100%.Validity and Reliability of data collected. For the purpose of validity, the researcher made sure that all the information obtained from the respondents were the true answers to the interview and questionnaires designed for them. Again any form of misconstrues in the minds of the respondents concerning the understanding of the question and how to sweep through them were explained to clear their minds. Finally, for the benefit of validity and reliability of data, the researcher deemed it right to use convenience and purposive method of sampling to avoid high cost and errors. Data analysisThe technique for analyzing data was by quantitative and soft techniques. The major findings were analysed in percentage points and resented in tables and charts. CHAPTER FOUR RESULTS OF THE STUDY Introduction This chapter gives the findings and analyzes the data collected for the study. This analysis involves the use of quantitative and qualitative techniques. The major findings were then pr esented in percentages and resented in tables and charts. Data gathered from the findings could be evaluated to come out with the shortcomings of the operations of susu collectors and spell ut the strategies necessary for improvement. reply from questionnaire to each area of interest. Susu Group People of interest Questionnaire Response Number fortune garden City savings and loans susu collectors 10 9 95% Members of co-operative union 3 2 66. % Gye Nyame susu center field susu collectors 10 10 100% Members of co-operative union 2 2 100% reveal of the audition size of twenty (20), nineteen (19) responded, representing about 95% of the Susu collectors from the two susu groups on the sub-metro. Out of the sample size of five 5), from other members of co-operative union, four (4) responded representing about 80%. In terms of susu groups depute to respond, response ranges from 95% to 100% representing 95% of susu collectors assigned from Garden city savings and loans and 100% to susu collectors assigned from Gye Nyame susu center. With the response of members of susu co-operative union the percentage range was 66. 79% to Garden city saving and loans and 100% to Gye Nyame susu center. The following are the findingsWhat problems exist in the judgeship of susu scheme? The problem identified by Howard et, al (2000) was that susu collectors were unused in having an apex organization to represent them. Ghana-vision 2020 programme of action for the first medium-term development plan (June 1998-2000) stated that the working capital provided by susu groups in Ghana were not geared towards long-term investment financing. According to the report of Financial Accountability and Management (August 2004), the development of susu credit unions does not conform to a single universal blueprint and homogeneity does not pertain. The researcher wanted to find out whether or not susu collectors had administrators. 100% of the response to this question was yes. It was further sight that most susu groups had the susu group administrator as the highest of authorisation on the organizational structure. Below shows the organizational structure of most susu groups in Bantama sub-metro SCHEME ADMINISTRATOR SCHEME MANAGER SCHEME ACCOUNTANT SUSU AGENTS SUSU COLLECTORS The in a higher place figure is the organizational chat which specialize how people, task, technological and material resources were been grouped. This speed up working activities and enhance effective, efficient, harmonization and good co-ordination. roughly 53% of response to the questions 8 and 9 with which the researcher wanted to find out if susu collectors faced administrative problems was yes. Which represented ten (10) out of the nineteen (19) responses to the questions. Response to the administrative problems. Response Number interviewed portion (%) Yes 10 53 No 9 47 Some of the administrative problems stated included bureaucratic problems. Low salary to susu collectors frequent absenteeism of top management. The strict and rigidity of rules and regulation Rules and regulations. A questionnaire was designed to find out the rules and regulations used for the administration of the scheme. The response was that, the rules and regulations which serve as a form of controlling checks and balances of the scheme helps to keep the accounting books and records harmonizely. The rules and regulations for keeping financial records at the various schemes were the strict use of (ATF) accounting system treasury and financial report guidelines. It also nvolves the reporting hierarchy of the scheme from the lower susu collectors up the organizational chart to the highest of the structure. About 62% of the susu collectors complained of the rules and regulations being so strict and made no manner for changes. Salary The researcher observed that the salary structure of susu collectors in Bantama sub-metro ranges from ? 400,000 to ? 700,000. Susu collectors in the sub-metro complained of their salary although most of them knew they had no better qualification to earn much salary. They compare the cumulative amount deducted from their clients as commission for them with the amount given to them at the end of the month. About 70% of the susu collectors interview evealed this to the researcher during the interview. calculate Budget was drawn to help financial plan for a period of time. Monies allocated were used for specified purposes. The work out had been prepared annually for the scheme by the general accountant who is the head of the budget implementation squad. The team according to Garden city savings and loans is made up of the scheme administrator, the general accountant, the scheme manager, and five (5) senior members of susu collectors. The component of the revenue side of the budget is made up of income from susu contributions, interest on susu contributions invested into other businesses, and loans. The expenditure side of the budget onsist of spending on personnel emolument, administrative, services, and investment. The problem susu collectors in Bantama sub-metro have with this budget is that, they are not usually considered in the plan. What measures do susu collectors adopt to ensure the safety of contributions? According to Aryeetey (2000) most informal savings schemes (including susu collectors) use banking facilities for deposits. The susu collectors use the banking facilities extensively to safeguard their funds. The researcher also found out that, to safeguard their funds, kosher financial books were unploughed. Monies were also deposited at the banks for safekeeping. Financial books unbroken and their uses. Books Uses Cash book For recording income and expenditure Expenditure budget playscript Recording expenditure against budget Debtors ledger Recording credit and payments made by susu contributors. Debtors control Total of credits and payments made by all susu contributors and other creditors To ensure the safety of contribution deposited by contributors, these books are kept in addition to depositing the amount at the bank. Almost all susu groups in the Bantama sub-metro keep these books 100% of the 19 responses received revealed this to the researcher. Monitoring team The researcher found that, the schemes or susu groups had a strong monitoring team that is made up of personnel ranging from twelve (12) to sixteen (16). The monitoring team meets monthly.The team checks and controls financial activities. This results in effectiveness and efficiency of work in the operation of the scheme. Personal interviews were held to find out if there had been any research work on problems facing susu collectors in their operations and if external auditors audited their books. The responses were that, there were auditors and those were the unconditional auditors outside the scheme who inspects accounting books to find out if they were kept on justification and to give feedback to shareholders. They audit the books yearly to ensure the safety of the contributions. Who are those involved in the susu scheme?Ndeh (1998) indicated that people mostly involved in the susu scheme were women. Ardener and Burnan (1995) found that, women traders and farmers were mostly involved in the susu scheme. Most susu collectors in Ghana were women. Caselli . F (1998) also found that traders , cart pushers, apprentices, mechanism drivers and sometimes farmers and fishermen were mostly involved in the susu scheme. The researcher also found out that, about 90% of susu contributors were women. This was made known to the researcher when about 95% of susu collectors confirmed that their clients were women traders. susu collectors at the various susu group. Susu Group Female Male Garden City 28 6 savings and loans Gye nyame 10 4 susu center From the table above , it could be observed that out of the total number of susu collectors from the two susu groups of forty-eight (48), thirty-eight (38) of these susu collectors are female representing 79% and ten (10) out of forty-eight (48) are male representing only 21%. This reveals that the majority of susu collectors in the Bantama sub-metro are females. Educational qualification of respondents. Level of Education Number Interviewed Percentage (%) Tertiary education 2 8 Post secondary 8 32 Technical shallow 5 20 Vocational school 10 40 The observation made from the table and the pie chart indicated that as much as 40% of the susu collectors interviewed had vocational education, 20% had technical education, 32% had ost secondary education, and 8% had tertiary education. What problems do collectors face with their clients? Aryeetey et, al (1990) said besides the difficulty of operating a bank account, the distribution of banks and low levels of literacy in Ghana especial ly among traders, makes the informal saving practical for certain categories of people. Susu collectors face problems with the high illiteracy rate among the traders among the problem. This was made known to the researcher during the study. Out of the nineteen (19) responses received from susu collectors from the two (2) susu groups, eighteen (18) representing 94. 7% responded Yes to having problems with their clients.Some problems included documentation problems That is the problems mostly faced with the illiterate clients. Majority of the trader-contributors do not understand the operations of the scheme and accuse susu collectors of being fraud agents in times of any delays in payment of their contributed amount. How does the scheme operate? Referring to the literature review, Aryeetey (1998) found that, the olus or susu collectors go to markets and hawkers to collect daily savings. The susu contributor chooses the amount he or she can deposit each day, and the collector records this amount on a card, indicating some personal information about the depositor.No formal agreement exists between the saver and the collector. The scheme is keisterd entirely on personal trust and relationship. Some collectors do make credit facilities available to some of their traders. Such facilities sometimes attract interest on the credits. Susu collectors were entitled to the first daily contribution as commission. The money collected from various contributors are sent to the agent of the scheme which is later deposited at the bank for save keeping. The researcher also found that, the monies collected by the rotating susu collectors daily are submitted to susu agents who are also called senior susu collectors to give birth accounts on the mount collected. susu agents renders accounts to the general accountant. The monies are then deposited at the bank or reinvested into businesses to earn interest. To ensure the safety of contributions , monies are invested into high intere st earning business. Monies deposited to the banks are redrawn with the bureaucratic system were executives endorse the cheque. It includes the endorsement of the general accountant, scheme manager and scheme administrator. In cases where a contributor wanted to collect a contribution, the susu collector is informed a day before the collection. If the susu collector is not informed a day before the collection of the ontribution and he or she feels the amount collected from susu contributors are affluent, the susu collectors pays the amount demanded. The susu collector collects the contribution card or book within which the susu collector ticks and sends it to the office of susu group for clearance. The researcher also observed that, depositors with susu collectors usually increases the amount of their deposits in November, lots doubling them. They do so obviously to ensure that they are able to save adequately towards anticipated expenditure for Christmas. Interest and collateral base Broham, John (2000) found that on the credit side, the advances made by the susu ollectors to their regular depositors are usually of low value, very short term ( less than one year) provided in an interest free basis without collateral and disbursed immediately if the money is at hand. The money lenders advance loans on interest higher than the banks but without collateral, and disbursed very quickly if the client is known. The researcher wanted to know how lending capital was raised and allocated. For susu collectors, mobilized deposits were their only lending bases. The capital base of most susu operations in Bantama sub-metro appeared to have grown considerably in nominal terms since their activities began. Various institutions were able to determine whether he base had grown in real terms, by how much their clientele had grown. They suggested that they had seen real growth over the years. susu collectors in Bantama sub-metro granted an average loan of ?450,000 in 2004, wit h a repayment schedule of one month. The longest maturity period offered by susu collectors was three month. Here, also the loan amounts were often about the same size as were requested by clients. Thus it would seem that susu collectors do not normally scale down the amount requested by clients in fact, they indicate that their clients know what is reasonable to expect. In 2004, the largest loan amount granted by asusu collector was 2,500,000 and the smallest ? 200,000 indicating the flexibility of the system. susu collectors cannot grant longer-term loans given the short-term nature of their deposit liabilities. Here, also, the difference in the average size of urban and rural loans was statically significant. The loan amount of a rotating susu group is equivalent to the total amount contributed by its members at an agreed-upon time. The size of these cash contributions veer widely from one group to another. Members usually choose an amount that will yield a sizable enough fund f or them to make large purchases or to provide working capital for business. The appropriated size ay thus be derived from the cost of some of the goods that members wanted to buy, including household appliances and building materials. Some of the amounts being applied in the public departments of some urban areas are about 10% of the salaries of junior civil servants each month, yielding an intake (or loan amount) of ? 900,000. Most susu collectors do not charge interest on their loans because all they do is advance amounts equivalent to what clients are obligate to save, less their own commission at about 3. 3% each month for the 30% of the sample who do charge interest on loans particularly to non- depositor clients. It is obvious that when susu collectors decree to lend to non-clients they ehave like typical moneylenders, with the exception-that susu collectors intermediate funds that are mobilized through susu collection. However, in view of the high-risk and short-term nature of this activity, its scope is limited. In reference to collateral, susu collectors take security for granted in view of the nature of association. Thus, many susu collectors require security only when they lend to non-deposit clients (40% of the sample of collectors) and almost 70% of the cooperatives do not require security. Why do people engage in susu? Aryeetey (1996) found out in his research into the operations, utilizations, and changes in otating susu savings in Ghana that, in an economic climate where several social groups in the workforce find that their access to informal institutions is limited due to their socio-economic handicap, informal institutions such as susu are bond to flourish. According to World Bank (1995), in areas where banking systems offer low quality services The processing of deposit and redrawal takes several hours then susu is bond to flourish. Out of the four (4) susu contributors interviewed, three (3) representing 75% agreed to the fact that they e ngage in the susu because banks may be away from them but the susu collectors come to collect the daily contribution at their own convenience. All the four (4) agreed o the fact that many banking systems offer low quality services the processing of deposits and withdrawal takes several hours and in some instances customer find no cash and must revisit the bank for withdrawal. CHAPTER FIVE Summary, conclusion and recommendations Introduction This chapter summarizes the findings in the study and draws conclusions on them. Finally it gives recommendations as to how to solve the problems entailed in the previous chapter and gives possible suggestions to improve on the operations of susu scheme by susu collectors. Summary The objective of this research carried on was to investigate on the problems facing susu collectors in the Bantama sub-metro.During the study, it was realized that susu groups and susu collectors kept good records on their activities. The majority of the susu collectors were females and majority of them had vocational school certificate. The susu groups prepared budget yearly with funds sourced from susu contributors re-invested into other businesses to raise enough interest to advert against expenditure. Rules and regulations were set to be a guideline for book keeping at various susu groups. Appropriate budgetary system was conducted and financial books for various activities were kept straight-lacedly and were used for different purposes except that susu collectors were not actively involved. A monitoring team hat checks the financial operations had been set up and external auditors audited the financial books kept strictly annually. susu collectors are attractive to low-income earners who need short-term working capital. The comparatively low interest rate makes lending even more attractive, as does the possibility that repayment can be made daily in small amounts. Although the loans amounts are relatively small, their regularity enables man y traders to smoothing their expenditure patterns by making immediate payments to suppliers and thus ensuring a regular flow of supplies. The small size of the loans and their very short maturity periods do not make them very useful for small and micro enterprises.Lastly a research work that was to be conducted on the improvement of operations of the susu scheme was withal to be done. Conclusion From the information obtained from the questionnaires and interviews, a conclusion needs to be drawn to assess the operations and problems faced by susu collectors in the country. The subheadings on a lower floor present the conclusion Administrative problems. Rules and regulations are set for susu groups with regards to the reporting guidelines and the proper action to be taken on the books kept at various susu schemes. The susu groups were supposed to use the ATF reporting guidelines. The majority of susu collectors inBantama sub-metro expressed their provocation with this guideline stati ng it was so rigid and inflexible. The work of the external or individual auditors helps to prevent fraud and irregularities in the operations of the susu scheme. However, susu collectors expressed their discomfort when the external auditors are at the premises of the susu group stating that they distract and interrupt their daily operations and work. The daily budget drawn was to help a financial plan for a period of time. Many items of expenditure were mostly considered to match revenue for per year. susu collectors were not happy with the budget because they were not mostly considered in the budget as an expenditure item.Organization and operational problems As it was observed in the previous chapter, for a contribution to be redrawn by a contributor, he or she needs to inform the susu collector a day before the collection. susu contributors expressed their annoyance with the system and mistrust with this operation. This has been a problem susu collectors face with this operatio n. The susu groups offer jobs for the unemployed of this country and in so doing reduces the problem of high rate of unemployment. However susu collectors expressed their dissatisfaction with the amount they receive as salary especially during the month of November where most susu collectors client and deposits per susu contributor increases in size. The monitoring team had not done enough study to ascertain the problems susu collectors face and even if they had done that. No effort was made to address these problems. Also the various susu groups have personnel with varying educational ground like those identified in the previous chapter. How ever the groups do not set a specific standard of qualification required. The analysis in the previous chapters reveals that susu collectors cannot grant longer-term loans given the short-term nature of their deposit liabilities. Also the loan amount of a rotating susu group is equivalent to the total amount contributed by its members at an ag reed-upon time. Most susu collectors do not charge interest on their loans because all they do is advance amounts equivalent to what clients are obliged to save, less their own commission. This reduces the profitability of susu groups as well as has set up on the salary of susu collectors. susu collectors require security only when they lend to non-deposit clients. susu collectors tend to face problems when some client fails to pay amount loaned to them. To conclude it all, susu collectors face administrative problems as well as problems in the organization and operation of the scheme. Recommendation.To improve upon the operation of the susu scheme in Bantama sub-metro after identifying the problems they face. The suggestions below should be taken into consideration. Rotating susu collectors association (ROSCA) should review the ATF guidelines regularly to ensure consistent practical application of the accounting standards to the accounting books kept. The budget implementation te am should also ensure that, susu collectors problems are identified and included in the budget and ensure that funds are solely spent according to what has been budgeted. ROSCA should also set up an accounting advisory unit to update the accountant on proper books keeping and accounting which will facilitate proper planning and decision.In every institution, there must be a control mechanism in order to ensure effectiveness and efficiency. ROSCA should appoint internal auditors who will work permanently for susu groups alongside a set of rules and regulations to govern the conduct of these internal auditors. Regular research work must be back up by way of providing researchers with the needed information in order to determine the shortfalls of the operations of susu collectors. susu deposits should be educated on the operation of the scheme in order to avoid frequent blaming of susu collectors. To raise the amount of salary for susu collectors, a low interest should be charged to r egular clients.This is to get enough funds to pay susu collectors. susu collectors should demand collateral security before loans can be advanced. This is to avoid the risk of loosing money in the operation of the scheme. The researcher supposes that, if the above suggestions recommended are carried out, it would improve upon the operations of the susu scheme by susu collectors in the Bantama sub- metro. Suggestions for further research. Research work conducted was limited to problems facing susu collectors in the Bantama sub-metro. The researcher therefore suggest further research work on the problems facing susu collectors in other sub-metros in Kumasi and Ghana at large. RESEARCH QUESTIONNAIRE