Internal controls are the everyday checks that keep members' money safe. They make sure no single person can move funds, change records and hide it without someone else noticing.
Why it matters: A SACCO holds money that belongs to its members. Strong controls deter fraud, catch honest mistakes early, and protect the trust your members place in you.
Separate the duties
No one person should control a transaction from start to finish. Split the steps so each acts as a check on the next.
The person who handles cash should not also keep the books.
The person who approves a loan should not also disburse it.
The person who records a payment should not also reconcile the account.
In a small team, use the board or a second staff member for the missing check.
Dual control of cash and keys
Two people, not one, for anything high-value. It removes the chance to act alone.
Two people present to open the vault, count cash, or replenish a till.
Spare keys and safe combinations held under dual control, never by one person.
Surprise cash counts on tills and the vault, done by someone independent.
Authorise, then reconcile
Set clear limits and check the numbers regularly.
Written approval limits: who can sign off what amount.
Reconcile cash, bank and ledgers daily or weekly, not just at year end.
Keep admin rights (who can change settings) separate from accounting rights (who posts entries).
Investigate every difference, however small.
In CAMS, role-based access and the audit trail help enforce who can do what, and the reconciliation reports surface differences quickly.
