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
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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……………………… Date………………………

Odoi Abraham Ochieng

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APPROVAL

I, the supervisor, have approved this report. It meets the Faculty’s requirement
for the award of a Bachelor’s degree in Business Administration at Uganda
Christian University.

Signed...........................................

Mr. Sserwanga Emmanuel

Agency supervisor

Date…………………………………

Signed...........................................

Mr. Owor Joseph

Academic supervisor

Date…………………………………

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DEDICATION

To my Lord and Savior who continually sustains me. To my family the

foundation of my well-being.

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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

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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

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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

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ACRONYMS
D.T Division Treasurer

LC’s Local Councilors

MCD Mukono Central division

NEMA National Environment management Authority

NGO’s Non-Governmental Organizations

PATC Principle Assistant Town Clerk

T.C Town Clerk

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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.

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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 society’s 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.

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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. It’s 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.

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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

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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.

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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

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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 treasurer’s 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 non-
corresponding 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
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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.

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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

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

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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 Division’s 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 didn’t 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.

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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

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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

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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.

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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.

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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 agency’s
inability to adjust their budget to meet the student’s 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

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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.

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APPENDICES

5.0 Organizational Structure

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5.1 Internship Diary

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REFERENCES
Mukono Central Division Budget Frame Work Paper

Mukono Municipal Five year development

The Local Government Financial and Accounting Manual 2007

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