UGANDA CHRISTIAN UNIVERSITY MUKONO

FACULTY OF BUSINESS AND ADMINISTRATION INTERNSHIP REPORT CONDUCTED AT MUKONO CENTRAL DIVISION. BY ODOI ABRAHAM OCHIENG ES11BO5/605

AN INTERNSHIP REPORT SUBMITTED TO THE FACULTY OF BUSINESS AND ADMINISTRATION IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION OF UGANDA CHRISTIAN UNIVERSITY

APPROVED BY MR. SSERWANGA EMMANUEL

MARCH 2013

ES11B05/605

DECLARATION
I Odoi Abraham Ochieng, declare that this report is my original work and has not been submitted to any college, university or institution for any academic award.

Sign Odoi Abraham Ochieng

Date

ES11B05/605

APPROVAL
I, the supervisor, have approved this report. It meets the Facultys requirement for the award of a Bachelors degree in Business Administration at Uganda Christian University. Signed........................................... Mr. Sserwanga Emmanuel Agency supervisor Date

Signed........................................... Mr. Owor Joseph Academic supervisor Date

ii

ES11B05/605

DEDICATION
To my Lord and Savior who continually sustains me. To my family the foundation of my well-being.

iii

ES11B05/605

ACKNOWLEDGEMENT
I take great delight in acknowledging the invaluable assistance rendered to me by all parties that contributed to my successful internship program. Many thanks go to the Division Treasurer MCD Mr. Sserwanga Emmanuel, as well as, Mr. Kyambade Ronald, who invested a great deal of time to share his knowledge and experience in Local Governance and made my training with MCD worthwhile. I further extend my appreciation to my colleagues at MCD, including Wanyina Ben James, Kaziba Nelson and Nabirye Viola for their co-operation and guidance in many areas of interest. Special thanks go to my mother Ms Loyce Ochieng and warm a thank you to Mr. Moses Oketch and Mr. & Mrs. Peter Oketch, my parents, as well as Tom Clement Oketch for their moral and financial support during the course of my internship and in preparing this work.

Odoi Abraham Ochieng

iv

ES11B05/605

Table of Contents
DECLARATION ........................................................................................................... i APPROVAL................................................................................................................. ii DEDICATION............................................................................................................ iii ACKNOWLEDGEMENT .............................................................................................. iv ACRONYMS ..............................................................................................................vii ABSTRACT .............................................................................................................. viii Chapter one: INTRODUCTION ................................................................................... 1
1.0 Background ................................................................................................................................... 1 1.1 Objectives ....................................................................................................................................... 1 1.2 About Mukono Central Division ............................................................................................. 2 1.2.1 An Overview ........................................................................................................................... 2 1.2.3 Mission .................................................................................................................................... 2 1.2.4 Vision ....................................................................................................................................... 2 1.2.5 Objectives of MDC ............................................................................................................... 2 1.2.6 Organization Scope ............................................................................................................. 2 1.2.7 Services offered by MCD .................................................................................................... 3 1.2.8 Organizational Structure ................................................................................................... 4

Chapter Two: INTERNSHIP ACTIVITIES .................................................................... 5

2.0 Introduction................................................................................................................................... 5 2.1 Mandate of the Finance and Planning Department ......................................................... 5 2.2 Finance and Planning Department Activities ..................................................................... 5 2.2.1 Enumeration of Business Licenses ................................................................................ 5 2.2.2 Business Assessment forms preparation ..................................................................... 5 2.2.3 Cashbook entry .................................................................................................................... 6 2.2.4 Preparing Abstracts ............................................................................................................. 6 2.2.5 Bank reconciliation ............................................................................................................. 6 2.2.6 Writing Payment Vouchers ............................................................................................... 6 2.2.7 Posting ledger sheets .......................................................................................................... 7 2.2.8 Preparing requisition Forms A and B ..................................................................... 7 v

ES11B05/605

2.2.9 Computer billing system.................................................................................................... 7 2.2.10 Computation of Expenditure and Revenue Ledgers .............................................. 7 2.3 Strengths of MCD ........................................................................................................................ 8 2.4 Challenges of MCD ...................................................................................................................... 8 2.5 Opportunity Plans of MCD ....................................................................................................... 8 2.6 Conclusion ..................................................................................................................................... 8

Chapter three: ORGANIZATION INTERNSHIP ANALYSIS ........................................ 10

3.0 Introduction................................................................................................................................. 10 3.1 Methodology and Techniques used. .................................................................................... 10 3.2 Application of classroom skills. ............................................................................................ 11 3.2.1 Computer skills .................................................................................................................. 11 3.2.2 Communication Skills ...................................................................................................... 11 3.2.3 Business Statistics Skills ................................................................................................ 11 3.2.4 Organizational Behaviour skills .................................................................................... 11 3.2.5 Basic Accounting knowledge .......................................................................................... 12 3.2.6 Christian Values................................................................................................................. 12 3.6 Skills and Knowledge Acquired ............................................................................................. 12 3.7 Challenges Faced During Internship. ................................................................................. 13 3.6 Conclusion ................................................................................................................................... 14

Chapter four: RECOMMENDATIONS & CONCLUSIONS ........................................... 15

4.0 Recommendations ..................................................................................................................... 15 4.1 Conclusion ................................................................................................................................... 15

APPENDICES ............................................................................................................. 17
5.0 Organizational Structure ........................................................................................................ 17 5.1 Internship Diary ......................................................................................................................... 18

REFERENCES ............................................................................................................ 19

vi

ES11B05/605

ACRONYMS
D.T LCs MCD NEMA NGOs PATC T.C Division Treasurer Local Councilors Mukono Central division National Environment management Authority Non-Governmental Organizations Principle Assistant Town Clerk Town Clerk

vii

ES11B05/605

ABSTRACT
This report is the product of Eight weeks of industrial training with Mukono Central Division. The purpose of the internship is to ensure that students get a practical application of the theoretical knowledge they acquire in class. Mukono Central Division is part of Mukono Municipality Council formerly a town council till its elevation to a Municipality level on 1st/July/ 2010. Its part of the local government institution that operates in the market of service delivery to its community. This report has been presented based on my observation and experience gathered from the organization. The organization has many divisions and departments but here, focus is given more on the Finance and accounts division in the Finance and planning department as I was attached to it. In the course of the internship there were several interactive sessions with industrial experts. Consequently, there was an environment in which students were introduced to variety Business Administration concepts. Additionally the enumeration fieldwork activity, attending the budget conference also engaged us in information findings that gave us the opportunity to harness these newly acquired skills by participating in core development work. These approaches were undertaken with a diverse training program which involved moving through each department and learning there work methods. During the course of my internship, I engaged in some of the Finance and planning department core activities including, Bank reconciliation, posting in cashbooks, posting entries in the ledger sheets, recording entries in the revenue and expenditure abstract and participated in field activities including remuneration and assessment among others. With this training there was a major leap in acquisition of skills and knowledge in finance and accounts especially in the areas of budget formulation, bank reconciliation, cashbook and leger posting, and preparation of revenue and expenditure abstracts.

viii

ES11B05/605

Chapter one: INTRODUCTION

1.0 Background This chapter reviews the organization where the internship was carried out, background of the internship critical points and its objectives to ensure that students get a practical application of the theoretical knowledge they acquire in class. In the organization I was able to learn how to translate classroom knowledge into practical solutions to societys business and administration problems. 1.1 Objectives The major role of internship is to provide students with an atmosphere in which they can practically apply the theory learnt in class. This is absolutely necessary to not only provide the students with a sense of direction as they study, but also to motivate them towards attainable goals. The training is a way of introducing the students to an environment of team playing, where different parts of an organization work together in harmony to achieve organizational goals. This is how the real world operates. The training period also serves to train students on how to create meaningful relationships at their workplaces. These relationships generally contribute to a pleasant working environment, but more so may even extend beyond the boundaries of work. In fact, to many students, internship marks the first encounter of an employer employee environment.

Page | 1

ES11B05/605

1.2 About Mukono Central Division 1.2.1 An Overview Mukono Central Division is part of Mukono Municipal Council which started as a town board then developed into a town council and to a municipality on 1st/July/2010 with two divisions; Goma division and Mukono Central division. MCD is medium sized with approximately 33sqkm of land area and has a population of over 100,000 people. Its divided into four administrative wards, Nsuube-kauga ward, Ggulu ward, Ntawo ward and Namumira Anthony ward with a of total 41 village capacities. 1.2.3 Mission To provide quality services within local and national priorities for improved standards of living for the people of Mukono Central Division. 1.2.4 Vision Prosperity for all 1.2.5 Objectives of MDC Maintaining law and order Promotion of Public health Identifying and collecting revenue Execution of public works Promotion of general security of Mukono Enhancing economic planning and development Support provision of primary education

1.2.6 Organization Scope MCD operates in the market of service delivery to its community for example this is through planning various activities that are aimed at developing the community such as road maintenance, implementation of NAADS programs, promotion of public health, garbage collection, maintenance of law and order.

Page | 2

ES11B05/605

1.2.7 Services offered by MCD The MCD Enforcement department in collaboration with the Uganda Police Force helps to implement stipulated laws and maintains orderliness in the community. The legal entity at the division level, the security committee, outlines resolutions to the public through radio and other media houses to sensitize the public to comprehend and be keen on conducting themselves within the law. The department of Community Development Department headed by the senior community development officer Ms. Naluwoza Betty with its community based programs advocates for women empowerment, and through there Women Skill Development projects, they are positioned to offer free training to female drop outs. Among the skills impacted in the girls include, cookery, hair dressing, tailoring, to elevate them from poverty stricken mentalities, early pregnancies and the unemployment wagon. The education department headed by the senior education officer Ms. Nakitto Doreen plays an active role in education support to the community through providing funds for staff and student scholastic materials and school materials such as student desks, staff chairs, and generally creating a learning and supportive environment for the students, teaching and non- teaching staff. The Works department headed by the senior engineering officer Mr. Ssebaduka Harunah is regularly involved in maintenance of a number of muram roads in areas of Nabuti, Kame, Nasuti, Nakabago, among others. This has greatly contributed to the speedy rate of structural developments and other developments in the town especially along the Jinja-Kampala highway which is periodically maintained. MCD is sensitive in maintaining good Public Health through its door to door garbage collection system and with an ideal master plan of developing a modern landfill to be used as the site for managing and recycling collected
Page | 3

ES11B05/605

garbage into manure with support from NEMA. Kyungu Health Center, a government health facility managed by MCD renders treatment to its natives and residents in its surroundings, considerably helping to sustain good health. The department is headed by the health inspector Ms. Josephine Mbabazi. 1.2.8 Organizational Structure The organizational structure of MCD has an Administrative and political setup. The SATC heads the administrative section comprising of a dedicated technical team which is responsible for coordinating and implementing council polices and resolutions. The political structure is headed by the LCIII consisting of a team assigned to particular roles to meet public expectations of accountability and good governance. The organization structure is attached to the appendix of the report.

Page | 4

ES11B05/605

Chapter Two: INTERNSHIP ACTIVITIES

2.0 Introduction This chapter covers the practical work done during the period of internship; all the decisions and technical proceedings used, strength and challenges as well as the opportunities are also included. 2.1 Mandate of the Finance and Planning Department To ensure maximum revenue collection Proper accountability of public funds Equitable allocation of resources to all departments and sections Proper planning according to resource envelope

2.2 Finance and Planning Department Activities During the course of the internship, I was placed in the department of Finance and Planning headed by Mr. Sserwanga Emmanuel and carried out the following activities with the assistance and guidance of my immediate supervisor, the senior accounts assistant Ms. Mabwa Hope. 2.2.1 Enumeration of Business Licenses This was one of the first practical tasks under taken with its core activity in the field. Under enumeration, every year, the business register is updated with the already existing businesses still operational with valid Licenses as well as the new entrants who have not yet been registered. This process includes moving door to door of the businesses acquiring information and documentation for proof of legality to carry out business within the division. The operational businesses are verified while the new ones are noted with details of their nature of business, its ownership and its location. 2.2.2 Business Assessment forms preparation It was necessary to prepare Business Assessment forms in order to clarify if there any arrears owed to the division by operating businesses as well as issuing the forms to new businesses operations to enlighten them on the
Page | 5

ES11B05/605

operation taxes payable to the division and details of their business registered. The form has provisions for indicating the Name of the Business, the Nature of the business, the Location of the business, the total fees payable, and arrears to be paid and authorized by the treasurers signature. 2.2.3 Cashbook entry A cashbook is one of the most important books of accounts used in the finance and planning department. It records all the transactions relating to the bank and cash only, concerning the payments made and revenue received. It is also called the General Fund cashbook because it is the recipient of all funds received from the division stakeholders and partners. It records receipts of received on the debit side. Thereafter, they are posted into the revenue abstract then to the ledger sheets. In the general cashbook, the transactions which are always on the credit side are then posted into the abstract of expenditure and finally to ledger of expenditure. 2.2.4 Preparing Abstracts The Abstract of Revenue and Expenditure is where revenues and expenditures are recorded respectively. I recorded transactions in the revenue and expenditure abstract monthly. The abstract of revenue summarizes the monthly collection in revenue receipts per each code likewise the expenditure abstract summarizes the expenditures per code in a month. 2.2.5 Bank reconciliation Reconciliation of bank statements and MCD books of accounts is done on a monthly basis. It provides details on the credit of the bank statement to correspond with the debit of the cash books of MCD. In instances of noncorresponding details in the cash book, it implies that there was direct banking and no recorded details in the books of accounts at MCD. 2.2.6 Writing Payment Vouchers The payment voucher details the payments to whom it owes, the activity or particulars of what is to be paid, the amount in figures and words, the signature authorizing the payment, the balance in the Vote book after payment
Page | 6

ES11B05/605

is passed, the activity/program code under which the payment is under plan. I prepared the payment after the requisition was approved and signed by the PATC and D.T 2.2.7 Posting ledger sheets The ledger sheets summarize in total the amount of revenue collected per each code for example local service tax and hotel tax for a particular month till the climax of the financial year. The same procedures are followed in preparing ledgers for expenditures such as administration allowances. In preparation of ledgers, the sheets are credited for revenue and debited for the expenditures and total balances are accumulated. 2.2.8 Preparing requisition Forms A and B Before any payment is passed, it seeks first approval from the PATC and passed by the D.T. Requisition commitment Form A is prepared monthly and it contains payments passed per each Division and code as indicated on the form. It also includes the details and services being paid for, the amount in words and figures, the signatures of the Vote Book controller and TC. Requisition commitment Form B is prepared for individual payments, it provisions for details such as, indicating whether the activity is in the work plan, the balance from the Vote Book, the amount being passed in figures, the cheque number and date when payment is passed. 2.2.9 Computer billing system The Division has a tailor made computer receipting program which runs receipts through a printer after computing data entered in the system. The system covers receipts for land fees, property tax, local service tax, and other chargers. 2.2.10 Computation of Expenditure and Revenue Ledgers In preparation for the budget conference, I observed the computation of the Revenue and Expenditure ledgers into a summarized financial statement for the Division operations.

Page | 7

ES11B05/605

2.3 Strengths of MCD I commend the management of MCD for the good organizational culture and cooperation within the staff and its clients. The organization of work is clear and systematic with different persons having specific duties plus additional skills in case of staff absence to avoid inconveniences and stalling of work. 2.4 Challenges of MCD MCD is faced with an enormous challenge of a limited revenue collection base because of the still growing small income generating activities reasoning the limited economic activities within the central division. Political intervention by some self-centered politicians who okay tax evasion to some persons to fulfill their pledges made while campaigning for political positions within the division. Delays in government funding hinder part of the budget operation and implementation. 2.5 Opportunity Plans of MCD Strengthening employment services Regulating and controlling physical development in community and town areas. Promoting formal and non-formal Education programs. Increase on the budget towards the sports and recreation department. Salvaging of grants and loans from international donors to aid in health improvement 2.6 Conclusion This Chapter has presented a detailed account of the practical work done during the internship program at MDC. The procedures that were taken in the accomplishment of various tasks such as posting ledgers, reconciliation, preparing expenditure and revenue abstracts and all other activities included. The next chapter highlights the methodology and techniques during the
Page | 8

ES11B05/605

execution of tasks, discusses the skills acquired and challenges met during the internship.

Page | 9

ES11B05/605

Chapter three: ORGANIZATION INTERNSHIP ANALYSIS

3.0 Introduction This chapter previews the internship evaluation in terms of methodology & techniques used application of classroom knowledge and challenges met, at the organization. 3.1 Methodology and Techniques used. Field work activity suited the Divisions mandate of updating the business register for all businesses operating within the central division, enforcement and other operations. Among the activities in the field work include, registering businesses and its owners through door to door business data collection. Field work was also necessary because it facilitated gathering information from the community whose opinion is considered on how adjustments could be possible after consultation from all possible stakeholders. Attending the budget conference meeting which acts as a measuring arm for evaluating past performance of the entire division activities, to enable them plan for the next financial year. The conference also seeks to give audience to councilors, LCs, NGOs, and other agencies to prioritize program and activity development and implementation. Consulting fellow colleagues, the organization staff and my agency supervisor whom I sought guidance and assistance where I didnt fully comprehend completion of an assignment or was uncertain per-se a given activity. A particular scenario was during bank reconciliation, and balancing off daily cashbooks. Interviewing other officers from other departments of Public health, Work and physical planning, Education and Sports and community development to get a brief overview on their operations and activities within the division and there services to the community.

Page | 10

ES11B05/605

Discussions with colleagues were fruitful as it engaged us in sharing knowledge, ideas as well as tendering ways on how to accomplish duties successfully. 3.2 Application of classroom skills. 3.2.1 Computer skills This involved making of computerized receipts using a tailor made billing system for MCD. I entered data using a custom made ledger Works system that summarizes financial statements for a given time duration using the Microsoft Excel and Word in its preparation. This practice was an added level of experience and knowledge on the foundational knowledge acquired from studying Basic Computing and Business Information Technology. 3.2.2 Communication Skills It was necessary to make precautional changes to refrain from having a poor work relation with other staff members and colleagues. This was simply learned from Business communication skills and was in for a practical test. Addressing different persons at the work place from clients to fellow intern colleagues to my superiors needed awareness of proper communication means and language to ease work and information flow, which was only possible having acquired communication skills from classroom lectures. 3.2.3 Business Statistics Skills In any activity involving summation or computation of figures of up to hundreds and thousands of shillings, it is a challenge to properly sum up such numerous figures and compute cumulative figures when posting in ledger sheets without having knowledge of Businesses statistics and Elements of Math to ease the work without much hindrance. 3.2.4 Organizational Behaviour skills Examining behavioural changes at the organization and taking precautional steps on how I should handle differences in personalities, characters and cultures of the different persons at the workplace was over and above average
Page | 11

ES11B05/605

simply because of the equipped knowledge and skills from Organizational Behaviour. 3.2.5 Basic Accounting knowledge Studying Fundamentals of Accounting laid unspeakable value and skill relevancy at MCD. The concepts helped me in applying the golden Double Entry rule used in bank reconciliation, cash book entry and balancing as well as other accounting concepts at the organization. 3.2.6 Christian Values Christian values are the basic guide I used to always consider the impact of my actions and duties upon those whom I worked around and for the community which I was serving as an intern civil servant, to serve and work as our Lord Jesus Christ to positively impact and be the changers of this world. 3.6 Skills and Knowledge Acquired Training with MCD led to a deep insight of the accounting processes.

This

included the familiarization with the whole fundamental process of accounting right from source documents through the stages. This has equipped me with the proper procedure of the accounting system as well as appreciating it development cycle to its implementation. The training also led to an elegant acquaintance of the accounting process and regulations used in Local Governments country wide. In relation to classroom knowledge background these include: bank reconciliation, cashbook entry, ledger sheets, payment voucher, petty voucher, Vote book entry and the Journal voucher. Furthermore I was introduced to a vivid experience of formulation of budgets and its entire procedure from its initial stage right to its implementation and accountability. An addition of advanced Business Information Technology was also acquired. The council has a tailor made Billing system that acknowledges payments with
Page | 12

ES11B05/605

receipts, previews records of specific source of revenue, summaries revenue collected per specified period say on a daily basis. The training compounded on my communication skills as a result of ceaseless interaction with clients. The composition of the client hood being both of well learned and illiterate calibers as well as both good and ill-natured challenged me to touch up to address them as per the expectations of the agency. A wealth of interpersonal skill was also acquired. This was particularly in the area of leadership, decision making and problem solving. These skills were acquired through daily interaction with my fellow colleagues as well as my immediate supervisor through the numerous activities that we carried out. Transparency is virtue worth treasuring and practicing as it allows open accountability and loyalty to an individual and to the organization at large. 3.7 Challenges Faced During Internship. The major challenge faced was the inability to create a spacious work space to carry out assigned activities. The modest work area associated with office stationery facilities hindered easiness of work flow and well conducted duties. Occasional load-shedding interrupted and stalled work flow. On such occasions, this would be major inconvenience as it would set back work development which was bounded by deadlines. MCD operations are largely manual which results into less desired

functionality of its staff due to fault proneness. The absence of open source technologies has greatly lagged the division in terms of record management and general development. Besides the above challenging technicalities, MCD is under staffed

consequently the usable staff is glutted with enormous workload with a visibly constant hum of activity, discounting other department areas.

Page | 13

ES11B05/605

3.6 Conclusion The theoretical concepts discussed in this chapter give a general overview and domain analysis in which the internship was practically done, the skills & experience gained as well as the technical challenges faced. The next chapter presents some of the conclusions made and recommendations proposed to enrich the student internship experience at MCD.

Page | 14

ES11B05/605

Chapter four: RECOMMENDATIONS & CONCLUSIONS

4.0 Recommendations
MCD should consider migrating to a more spacious facility to ease work development, accommodate its functional staff, and create a better organized and well conducted workstation and also a store house for accommodating detained equipment and machinery for non-compliant clients. The possibility of acquiring backup power sources should be explored. Alternative sources such as high power solar systems and AC Backup Batteries that could be shared throughout the premises; this would ensure that no major setback during progressive work is encountered during occasional power blackouts. MCD should also consider developing and embracing technology advancement to provide the equivalent desired or better functionality. This would not only make development easier but also cut on the huge cost of stationery. I lastly urge the Faculty of Business and Administration to fund the internship program for students in terms of maintenance costs such as transport and meals to morally build the students as well as the agency. The agencys inability to adjust their budget to meet the students maintenance results in trainees having only six hours of training thus missing out some lessons to learn and few skills to acquire.

4.1 Conclusion
It was enlightening to work with an averagely sized agency, as this ensured involvement to the highest degree possible in all aspects. As a result it called for continuous work involvement and learning in all activities thus exposure to all the operations of the departments. In a nutshell, this training has provided a rich experience in Business Administration aspects specifically in accounting and also provided exposure to
Page | 15

ES11B05/605

standard professional practice. Apart from garnering knowledge from various aspects of the various activities such as accounting, the interaction with the versatile team members was unprecedented.

Page | 16

ES11B05/605

APPENDICES 5.0 Organizational Structure

Page | 17

ES11B05/605

5.1 Internship Diary

Page | 18

ES11B05/605

REFERENCES
Mukono Central Division Budget Frame Work Paper Mukono Municipal Five year development The Local Government Financial and Accounting Manual 2007

Page | 19

ES11B05/605

Page | 20