CONTENT

Chapter 1: Introduction
1.1 Introduction to Organization
1.2 Vision
1.3 Mission
1.4 Goal and, Objectives
1.5 Ceylon Electricity Board Act’ and Action Plan
1.6 Operating Activities
1.6.1 Generation Division
1.6.1.1 Generation of Electricity
1.6.1.2 The places of power generation
1.6.2 Transmission Division
1.6.3 Distribution Division
1.7 Organization Structure
1.8 Human Resources.
1.8.1 Introduction
1.8.1.1Training the Executive Staff
1.8.1.2 Training the Non Executive Permanent Staff
1.8.1.3 Training the Trainees
1.9 Recruitment & appointment procedure
1.10 Social Activities.
1.11 Employee Provident Fund & Employee Trust Fund
Chapter 2: Evaluation of Training Area
2.1 Introduction
2.2 Financial Accounting
2.2.1 Provincial Expenditure Accountant Office (Uva)

2.3 Payroll unit (preparation of salary)

2.4 Ledger Accounts Process.
2.5 Types of Financial Transactions
2.6 Accounting procedure & Computer Based Accounting
2.7 Auditing & Taxation
2.8 Cost & Management Accounting.

1
Chapter 3: Conclusion
3.1 Introduction
3.2 Training Outcome
References

2
CHAPTER ONE
THE ORGANIZATION
1.1 Introduction
Ceylon Electricity Board is a body corporate for electricity undertaking in Sri Lanka It
conduct it massive duties to the Sri Lankan public though Generation, Transmission,
Distribution & other services. This chapter briefly studies about the organization, Vision,
Mission, organization hierarchy, operating activities, Management styles etc. of the CEB.

Ceylon Electricity Board

Head office
No 50,
Sri chiththampalam A Gardiner Mawatha,
Colombo 02.
Tel:0112324471
Web Site: WWW.ceb.lk

DGM Office
Account Expenditure,
Ceylon Electricity Board
No 04,
Hindagoda,
Badulla
Tel;0552222350

3
Ceylon Electricity Board is corporate body established in terms of the Act No 07 of 1969 as
successor to the Department of Government Electrical Undertakings. It is a national
Institution charged with the responsibility of generating, transmitting and distributing
electrical energy, to reach all categories of consumers on a nationwide basis.
It is most of the power of energy for people are conveniently using for living with the power
generation of electricity. Which are using in every day in power of electricity for the various
things of Lighting, Ironing, Cooking, Telecommunication, Audio and Video, Driving of
various Mechanical machine and computer system, which other single from electricity
generation.
Some of this action can never be done using other forms of energy directly. Due to this
reason electricity is considered to be a suppler quality from of energy of the country people’s
generation.
The electricity will generate, and distribute Ceylon Electricity Board to the consumers. It is
very highly spend money to development and implement to distribution of electricity
generation in our country
It the generation on power from water dam power system, and power plant system to
generate of electricity, which power plant product o electricity energy of oil turbine, but the
expenditure was very high for using oil power plant. Further we want serve our nation
through the water dam system to development and implement for electricity to generation to
be reduce the economically development.

The water system will be continuing generation in the raining season, but the whether of dry
season it will be very difficult to generate from the water dam system, which in the dried
season were generate is very reduce to the consumer’s uninterruptible distribution. We went
to get the immediate action to be developing our country rivers and falls area to be supporting
electricity generation in this country.

4
1.2 Vision of CEB

Be an internationally recognized efficient utility providing high quality service to all its stake
holders.

1.3 Mission of CEB

To provide reliable quality electricity to the entire nation at internationally competitive price
effectively and efficiently through a meaningful partnership with skilled and motivated
employees using appropriate state of the art technology or the socio economic development
of the country in an economically sustainable manner while meeting acceptable
environmental standards and a satisfactory rate o return on investments.

5
1.4 Goals and Objectives.
Goal-01: Ensure acceptable returns on investment
Objectives:
 Improve revenue collection
 Reduce non technical losses
 Good budgetary control & establishment of efficient cash flow
 Enhance productivity

Goal-02 : provide reliable & quality electricity supply to our customers

Objectives:
 Improve reliability of supply by means of reducing SAIFI & SAIDI
 Improve planning guideline to ensure satisfactory voltage regulation
 Improve the efficiency of maintenance functions

Goal-03: Improve the quality of services with emphasis on customer satisfaction

objectives
Objectives:
 Improve of IT System for Management Information, Billing, Bill Inquiries, etc
 Distribution system automation including central remote monitoring of the
system

Goal-04: Create highly motivated employees to achieve the goals

Objectives:
 Development of team work &improve team spirit
 Recognition of performance & introduction of rewards to motive
employees to consistently perform to their best liability
 Introduce uniforms as appropriate their jobs
 Newsletter on awareness of organization activities

Goal-05: Contribute to the Socio- Economic Development of the region by expansion

of
electricity supply
Objectives:
 Preparation & implementation of a distribution plan
 Introduction of small scale new & renewable energy resources system
to the location where provision of national supply is most unlikely.
6
1.5 Ceylon Electricity Board Act’ and Action Plan
 The Electricity Board Act 17th in 1969 under electricity department which
takeover to Ceylon electricity board.
 State electricity department and other department takeover to Ceylon
electricity board.
 Ceylon Electricity Board and official.
 Electricity charges and recover.
 Normal remarks.
01st November 1969 up-to-date today the CEB were reshuffled in the organization.
The electricity board development fund has been taken loan from the World Bank which has
been recommended and appointed M/S Arvick International Management Instruction
Limited; their instructions were given in this policy plan.
 The first reshuffled in 1970 to 1972.
 The second reshuffled in 1982 to 1984.
 The 3rd reshuffled in 1989 to be established provincial level.
 Again reshuffled in 1991 and 2004 as above

1.6 Operating Activities

Following operating activities can be identified as main operating activities conducted by the
CEB.
1. Generation of Electricity.
2. Transmission of Electricity.
3. Distribution of Electricity.

7
1.6.1 Generation Division

1.6.1.1Generation of Electricity
This is a main activity of the CEB. There are several ways to generate the electricity power as
follows.
 Hydro
 Thermal
 Wind

Hydro power

Hydro power is generated via; seven major reservoirs located in the central high land of the
country. They are Laxapana, Castlerigh, Maussakelle, Kothmale, Randenigala, Victoria and
Samanalawewa. In addition hydro power comes from three mini hydro power stations. Such
as Iginiyagala, Udawalawe, Nilambe. Independent power producers also contribute to
generate hydro power.

Mahaweli complex consist of four major reservoirs Kothmale, Randenigala, Victoriya,

Rantembe and their accompanying power stations. There are three minor power stations
Ukkuwela, Bowatenna and Nilambe also part o this project complex. The Wimalasurendra
and old Laxapana power complex from part of the Caslerigh reservoir project. Canyon and
new Lakshapana power station are fuelled by the waters from Maussakelle reservoir. Water
from Lakshapana complex also powers the polpitiya power station.
Samanalawawa is the other reservoir. This scheme is classified with CEB thermal complex
for organization purpose.
CEB hydro generation contributed 46% and private power purchase Hydro generation
contributed 4% the country’s power generation

8
Table 01: Electricity Generated on 2013

Energy Percentage %
CEB Thermal (Coal) 4.32 GWh 14.1
CEB Thermal (Oil) 4.815 GWh 15.7
IPP Thermal (Oil) 3.479 GWh 11.3
Laxapana Complex Hydro 5.821 GWh 18.9
Mahaweli Complex Hydro 9.672 GWh 31.5
Samanala Wewa 0.438 GWh 1.4
Kukule Ganga 0.918 GWh 3.0
CEB (Small Hydro) 0.175 GWh 0.6
Wind 1.08825 GWh 3.5

Energy Percentage %

Laxapana Complex Hydro 5.821 GWh 18.9

Mahaweli Complex Hydro 9.672 GWh 31.5

CEB (Small Hydro) 0.175 GWh 0.6

Percentage %

Laxapana Complex Hydro

5.821 GWh
Mahaweli Complex
Hydro 9.672 GWh
CEB (Small Hydro) 0.175
GWh

9
Thermal power
Beginning around 1987 the CEB began to divert thermal energy generated through diesel and
heavy fuel. Thermal power is generated mainly from to power stations. Kelenitissa and
Sapugaskanda. The Kelenitissa complex consist tow steam power plant, six small gas
turbines, one high cap acity gas turbine and combined cycle power plant. The sapugaskanda
complex consists of a diesel power station, witch commenced operation in 1985.Chunnakam
power stations plant only 1999 and no generation up to the year 2006. It is located near to
Jaffna in North Province.

Percentage
Energy %

CEB Thermal (Coal) 4.32 GWh 14.1

CEB Thermal (Oil) 4.815 GWh 15.7

IPP Thermal (Oil) 3.479 GWh 11.3

Percentage %

CEB Thermal (Coal)

4.32 GWh
CEB Thermal (Oil) 4.815
GWh
IPP Thermal (Oil) 3.479
GWh

10
1.6.1.2The places of power generation
 Laxapana complex
It has fore complex. There are Wimala surendra power complex, Laxapana power
complex, Kaniyon power complex and Kothmale complex

 Kalanithissa cycle combine complex

 Sapugaskanda Diesel Generation Complex
 Hambantota wind power complex
 Upperkothmale special power station
 Norichchola coal power complex
 Kelawapapitiya coal power complex
.

11
1.6.2 Transmission Division

The Transmission Division of the Ceylon Electricity Board plans, develops, operates and
maintains the transmission network of Sri lanka in order to provide reliable bulk electricity to
distribution load centers efficiently and effectively. In planning and construction, Special care
is taken to meet environmental standards and to earn a satisfactory rate of return.
Transmission Divisions of CEB In Certain areas of activities.

CEB Annual Report 2012

12
1.6.3 Distribution Division
Generated electricity in several power station transmitted to the distribution divisions. All
parts of the island have divided into four distribution regions for efficient management &
operation. Each distribution division is headed by AGM. He has responsibility to manage
distribution operation in appointed region maximizing the customer services.

Distribution Division

Region - 01 Region -02 Region -03 Region 04

The distribution network system in Sri Lanka comprises of 33Kv and 11Kv and 400Kv. The
CEB and Lanka Electricity Company (Pvt) Ltd are the sole distribution utilities.
After restructuring distribution division in year 2003 it was under one Additional General
Manager was divided in to our region based on various factors with the objectives to
introduce benchmark competition to improve efficiency and quality supply to the customers.

The administration is new carried out by Additional General Manager (AGM) in charge the
four distribution divisions functioning directly under the General Manager. Under the
reorganized structure distribution is managed by 12 provinces under the regional AGM as
follows.

Region 01: Colombo city, North western province, North central province
Region 02: Western north, central and Eastern province.
Region 03: Western south 11, Sabaragamuwa and Uva province
Region 04: Western south province 1,

13
.

14
1.7 Organization Structure

Chairman & the members of the board

Chief internal Secretary of the

auditor board

General
Manager

1 2 3 4 5 6 7 8 9

1. AGM Generation 5. AGM Distribution

2. AGM Transmission 6. AGM Distribution
3. AGM Distribution 7. Finance Manager
4. AGM Distribution 8. DGM Personal Manager
9. AGM Project & centralized services

15
 ORGANAIZATION CHART
OF THE CEYLON ELECTRICITY BOARD.

16
ORGANAIZATION CHART OF THE
EXPENDITURE BRANCH

17
1.8 Human Resource
1.8.1 Introduction
Ceylon electricity board is one of the largest corporations in Sri Lanka with an estimated
work force of 13,500. Because of this, to train these workers they have established 02 training
stations. The training will be carried out in 03 ways.
1. Training the executive staff
2. Training the non executive permanent staff
3. Training the trainees

1.8.1.1Training the Executive Staff

The electricity board has mainly subdivided into 3 areas, namely Power Generation,
Compression and Distribution of power (Electricity). The distribution sector again has been
decentralized into 4 according to the geographical locations. Out of these locations, our
province belongs to the no 3 area.
The main office of the distribution area number 3 is located at the city of Battaramulla, which
has a human resource division established. This division itself plans and executes the training
programs for all executive staff. Under these arrangements the accountant and the assistant
accountant of the office have been released in turn to the Piliyandala training station. The
courses which are not available in the Pliyandala training station are carried out at other
external institutions.

1.8.1.2 Training the Non Executive Permanent Staff

Training of the non executive staff is carried out by the human resources unit established at
the deputy general managerial office of CEB Uva province. When it comes to promotion and
salary increments it is mandatory for the workers to have a proper training. The human
resource unit makes this possible by following specially designed procedure for the non
executive staff.

18
1.8.1.3 Training the Trainees
70% of the productivity of the office is being originated by the young trainees. These trainees
are also dividend into 2 groups.
 Trainees intend to take 2 years of training
In order to get enrolled for this training session, the applicants must have
successfully completed AAT or the foundation exam of ICASL. In order to
become a member of the association of accounting technicians of Sri Lanka, one
must have 2 years of work experience under a chartered accountant, having
successfully completed the course for the ICASL. Students, it is a must to work
under a chartered accountant after their intermediate exams in order to proceed
with the course.
However it is very hard to find a chartered accountant in a rural area like Badulla.
There fore it is very hard to get this on the job training for the above mentioned
students at Badulla.

 Trainees intend to take ½ year training

Institutions like Advanced Technical Institute, Badulla Technical College and
Badulla Tharuna Sewa Sbhawa have enrolled trainees for 6 months period and
they have already finished their 6 months duration as of now. Apart from that, the
trainees are enrolled from local Universities as well. In the office each and every
trainees is engaged in official duties with responsibility.
A training program on productivity concepts will be given at first to each trainee at
the organization and at the end of the training period a certificate will be issued on
their attendance to the productivity concept training session. Since this certificate
is provided by the head of the department, the trainees attend to every session with
great interest

19
Number of Employees

Ceylon Electricity Board

The total number of employees was 13500 .

Uva Province
The total number of employees as at end of the year was 532.
Executive Office 24
Clerical Staff 64
Electrical superintends 30
Drivers 64
Field workers 274
Security staff 08
Bill man 59
Office employee 09
532

Uva province has divided into six cost centers & conducted two 03 main
electrification projects. They are;

 Uva Udanaya Project

 B.S. & other Project
 Iran Project

20
Cost Center Cost Center Code

D.G.M (Uva) 530

CE Construction 530.20
CE Distribution& Maintenance 530.30
E.E.Baulla 534
E.E. Diyathalawa 535
E.E.Monaragala 536

Total Number of employees

530(D.G.M)

o D.G.M 07
o Commercial 40
o Planning 07
o Account Expenditure 10
o Account Revenue 11 = 75

534 E.E.Badulla 126

535 Diyathalawa 114

536 Monaragala 107

530.20 Construction 62

530.30 Distribution &Maintains 48

21
1.9 Recruitment & appointment procedure in brief…

 The HR requirement shall be determined by the Board annually in the personnel plan.
The operation of the personnel plan shall be accordance with the procedures adopted
by the board.

 All appointments to executive posts including acting appointment shall be made only
with the approval of the board

 All appointments to non executive posts shall be made on the authority of the GM.

 Every appointment whether casual/ temporary/permanent or contract must be made in

accordance with the scheme of recruitment approved by the board

 No appointment or acting appointment shall be made to any post unless there is a

vacancy in the carder approved by the board in the personnel plan

 All posts for external recruitment must be advertised & application called by
advertisement in the news paper

 In filling posts by internal recruitment or by internal promotion the specific

requirements stipulated in the respective schemes of recruitment& promotion should
be complied with.

22
1.10 Social activities

Welfare societies established in transmission division, Colombo city office and the north
central province have performed various social activities for the well being of the employees.
Under the “meth sarana” programme initiated by the general of the CEB, employees CEB in
many divisions contributed to bulb low cost houses and donated them to the most deserving
persons in the respective areas.

Illumination of the mihintale rock

CEB, in collaboration with associate newspapers of Ceylon ltd, Illumination of the mihintale
rock and the stupa during the year poya season. The customary religious ceremony was
performed at sri maha bodhi to invoke blessings to the ceb and its staff by offering the sacred
bodhi with water collected from ceb reservoirs.

Gami sariya asiriya

In the central province, ceb introduces a concept of “Gami sariya asiriya” to improve the
system reliability. under this programmed, Ceylon electricity board employees together with
people who are using a particular distribution scheme carry out maintenance works in the
system totally rehabilitating the scheme.

Future plans
Transmission and generation planning branch prepares the long term generation expansion
plan and the long term transmission development plan, using state of the art tools and
techniques. the generation explanation plan for the period 2006-2020 envisages additions of
4385 MW to the system in the next 10 years.

23
1.11 Employee Provident Fund & Employee Trust Fund

Calculation of EPF,ETF Etc.

Consolidated Salary xxxx
Professional allowance xxxx
Holiday payment etc xxxx
Salary of provident fund xxxxx

10% by employee-EPF

Salary for provident 15% by employer-EPF

Fund 3% by employer- ETF
8% by employer-Employee pension fund
Holidays provided to the workers
The holidays were given according to the constitution of the Ceylon electricity board.
According to that, there are few types of holidays available to the workers. When taking
leaves, the branch manager should approve it prior and the branch manager does have the
authority to reduce or increase the number of holidays available for employees.
The holidays as follows,
 Casual Leave : there are 7 casual leaves per year
 Annual Leave : for the first year of service , annual leaves would not be
allocated for employees and there will be 14 annual leaves for subsequent
year
 Sick Leave: 21 sick leaves are allocated for year.
 Maternity Leaves: 84 days will be given as maternity leaves for women with
natural delivering of baby. Thereafter another 84 days will be given with half
pay and another 84 days will be given without pay after that.
 Special Sick Leave : According to the nature of the work, employee is entitled
for a special sick leave for one year period, once proven with a medical
certificate and approved by the manager. Ex: Cancer, Leprosy, Clinical,
Operations etc.

24
CHAPTER TWO
EVALUATION OF TRAINING AREA
2.1 Introduction
In the evaluation of training area, I could be able to evaluate financial accounting and its
nature and Auditing & Taxation , under that I can learned how to audit transactions and how
to apply auditing standards to their internal audit procedure as well as could be able to learn
how to apply taxation for the CEB such as VAT, WHT. Also I could get theory and practical
knowledge about the cost & management accounting. Above training areas I include in
chapter two.

2.2 Financial Accounting

Accounting activities of the CEB done decentralized to the provincial to provincial. At the financial
in the CEB (Uva province), They must prepare separately ledger accounts for their each cost centers.
For each cost centers have separate cost center codes.

There are two Accountants in account section and two sub units in provincial accounts
section
1. Provincial (Revenue) Accountant
2. Provincial (Expenditure) Accountant
I. Ledger unit
II. Payroll unit

2.2.1 Provincial Expenditure Accountant Office (Uva)

This office headed by provincial Expenditure Accountant and he has responsibility to handle
the fund in CEB regarding to the Uva Province. Also all payment of the province such as
salaries ,loans, tender deposits etc. done by this branch. Maintaining proper ledger accounts
of all transition & preparing monthly & annual accounts & relevant reports are some of major
duties of this section. There are two sub division in this office..

2.3 Payroll unit (preparation of salary)

There is separate file for every employee in the province in CEB. This separate file of a
employee named IPR (Individual Pay Record) maintain by payroll clerk in every cost center.

25
He is liable to prepare monthly salaries of employee in this in cost center. Basically there are
two types components to be adjusted of preparing monthly salaries.

Component of adding elements

 Holiday payment
 Professional allowance
 Risk allowance
 Over time
 Reimbursement of loan interest

Component of deducting elements

 Festival advance & Special advance
 EPF contribution of loan employee
 Subscription fees
 Interest on loan
 Bank loan
 Installment of various types of loan.
Types of loans in CEB
All employees are allowed to obtain following loans.
 Bank Loan
 Provident fund loan
 Simple interest distress loan
 Transport loan
 Service connection loan
 Distress loan

An employee who is applied for a loan should fill the relevant application form. Following
components indentified in it.
 Employee name & Designation
 Monthly Salary
 40% limitation & Collateral details
 Previous loan obtained date & amount
 Interest & simple interest

26
Work Done.
 Identified several types of loans in CEB.
 Studied loan application procedure
 Calculated loan interest entered it to the IPR s & Pay Pack
 Helped to prepare month end loan balances schedule.
 Studied the system for EPF & ETF prevails in the CEB
 Studied the way of calculating accounting procedures of EPF , ETF Etc
 Studied the employee pension fund contribution & its calculation

Intensive & Bonus payment

Bonus & Intensive are paid to the employees at end of the year.
Calculation

Bonus Payment = Consolidated salary for last month + 5000

Intensive = Basic salary of the paid month * Balance medical leave

No of medical leaves for the year

Work Done
 Evaluated the incentive & bonus payment procedure of the CEB
 Prepared intensive payment schedule & calculated incentive for the employees
 Checked whether the employee is eligible for received bonus & incentive.

27
Payroll Summary.
This is a special statement containing summary of salaries according to the staffing levels &
grades of an cost center.
Staffing Levels & Grades
 Executive staff
 Clerical, Store Keepers & office Labour.
 Drivers
 Field Labour Staff
 Meter Readers
Work done
 Studies IPR & entered salary particulars to it
 Studied & evaluated the computer Based Accounting System in CEB
 Identified how to add & amend the data records in pay pack
 Printed payroll summary & pay sheet employees of a cost center.

 Practical knowledge regarding the following things,

 Study the Accounting procedure
 Study the Financial Accounting
 Types of Financial Transaction
 Recording Financial Transactions
 Study the Preparation of Ledger Accounts
 How to study the Financial statements
 How to Audit
 Study How to Taxation
 Cost and Management Accounting
 Human Resource
 Holidays provided to the workers
 Strategies Taken to Advertise the Improvement of Services
 Manner of Handling Customer Complains
 Manner of Organized Environment is prepared
 Manner of Assuring the Operation of Equipments
 Strategies Taken to Advertise the Improvement of Services

28
2.4 Ledger Accounts Process.

All Ledger clerk link with control ledger of the province.

Ledger accounting process.

530
536

530.20

Control Ledger

535

534 530.30

Major activities of ledger unit are summarizes as follows.

 Preparation of ledger annual summarizes as follows
 Maintain cost center for every cost center in the province.
 Maintain vote registers for the purpose of budgetary control
 Preparation of monthly accounts & year end accounts

Duties & Responsibilities of provincial Account

 Bank account & cash administration
 Book keeping
 Maintaining the provincial store accounts
 Preparation & maintenance of salaries & wages for all staff of the province
 Operate the rules, regulations & policies of the CEB

29
Ledger posting process can be briefly identified as following steps.

1. Collection sources documents

2. Recording transactions
3. Preparing monthly accounts

Collecting Source Documents

Source document are the evidence of recording transaction. All source document that are
used to post the data should be filled & keep well at least five accounting years.

Types of source documents

Transfer Voucher (TV)
Pay Slip
71/8 Particulars
Return TV ( RTV)
Pay slip

The pay is a voucher and an instruction to make a payment by cash or cheque. The person
who signs on the pay slip is responsible for the validity of the payment. Payment will be
made only on the authority of certified pay vouchers. These vouchers are the only form of
authority for the disbursement of Board Funds.

 Branch
 Date
 Payee
 Amount
 Cost Codes
 Prepared by
 Checked by
 Authorized by

30
Issues
There are two types of Issues
01. Material issue advice
The duties of this issue advice
 Use to issue material to jobs.
 Exchange material depot to other depot
 Exchange material depot to other areas.
02. Service connection material issue advice.
 Issue the material for service main jobs.
Transfer voucher
Use to take accounting action to expense / income / asset / liability between two cost centers
and also transferred to head office.

Wages summery
This shows the summery of the wages in all employees. Wages summery includes with the
calculation and payment of salaries & wages, the payment and recovery of loans and
advances.

Labor distribution summery

Use to find out the standard labor cost of each laborer. Time cards may also be used to record
the activities of the employees but except some employees such as drivers and meter readers.

Good Received Note

All good received to provincial stores must be entered on a GRN. The GRN must show TV
number & pay bill numbers.

31
Features of TV
 TV Number
 TV date
 From Department with code
 To department with code
 Description
 Quantity
 Rate & Amount
 Amount in Words
 Prepared by
 Checked by

Features of TV/ Goods Issues Advice

 TV Number
 TV Date
 TO Department
 From Department
 Cost center
 Item Code
 Job Number
 Item Description
 Remarks
 Grade

Work Done

 Studied the ledger accounting process of Provincial Expenditure Account Office

 Studied & evaluated the ledger accounting process of a particular cost center
 Identified the source documents that help to record the transaction
 Evaluated the features of source documents

32
2.5 Types of Financial Transactions
In the Ceylon Electricity Board (Uva) is being occurred various types of financial
transactions. Those can be categorized as follows,

The financial transactions relevant to the Assets can be identified as follows

-Purchase office & equipment
-Purchase stocks
-payment to the debtors and received from debtors

The financial transactions relevant to the Liability can be identified as follows

-Payment to the creditors & received from creditors
-return of loan installment

The financial transactions relevant to the Expenditure can be identified as follows

Management & Supervision salaries
-Management staff allowances
-Building maintenance
-Vehicle hires charges
-Material transport charge

2.6 Accounting procedure & Computer Based Accounting.

Accountant Expenditure Office ledger unit handle by all accounting activities in the province.
All transaction accounted by cost enter wise & separate ledger clerk appointed for each cost
center. Depots & other office of the province send the accounting document to prepare ledger
accounts. Ledger clerk is liable for colleting those documents on time. All transferring
activities done by using TVs between the cost centers of between the other regions of the
CEB.

33
Main Accounting codes.

2000 - Personnel
3000 - Material
4000 - Accommodation
5000 - Transport & Communication
7000 - Other cost
8000 - Finance Cost.

Work Done
 Identified the main accounting codes (category of codes) & nature of transaction recorded
under those codes.
 Identified the further sub division of those categories of cost codes.

Financial Accounting
Recording Financial Transactions
Separate series of code system use to record financial transactions in each cost centre. All the
transactions must be entered in the primary ledger accounts on the day which they occur. The
accounts for fixed assets will be maintained the books of the head quarters. Because of that
provincial account will not maintain accounts for depreciation. Different type of source
documents use to record the financial transactions in the CEB. All the source documents must
be signed by responsible officer. Some documents codes use for the source documents when
recording financial transactions

34
Documents codes

Document Codes

Pay slips 1
Labor 1.1
Material 1.2
Overhead 1.3
Material transfer vouchers, issues advice 2
Transfer vouchers 3
71/8 summary 4
Labour distribution summary 5
Journal entries 7

Payment for expenses (Maintenance, water, petty cash)

The expenses for facilities that are used in revenue section considered as expenses. Those are
compulsory to carry on activities in the organization, such as medical expenses, water bills,
payment for trainees, traveling expenses, hire for vehicles, telephone bills, wages for painters,
petty cash reimbursement, etc.

Receiving dishonored cheques

Some consumers pay their electricity bills by cheques. These cheques may be returned
because of the problems may occur in the consumers’ current account. Those dishonored
cheques come from banks after depositing a cheque to revenue section.

Commission and tax payment

Banks and post offices collect electricity bills from consumers on behalf of Ceylon Electricity
Board. A commission is charged by banks and post offices in respect to collection of
electricity bills upon value of the bills that they collected.

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Buying office equipment (Assets)
Accounts for the fixed assets are maintained by head quarters in its books. Provincial
accountants are provided some limited extent of money for a month to buy assets at the
emerging requirements and situations, but, above assets are not accounted in the books of
revenue section.
Return cheques
Retuned cheques are sent from banks when they dishonored. After receiving a dishonored
cheque notification it should be record in the Returned Cheques Register. From this Returned
Cheques Register, any information can be got for the purpose of accounting, and should be
notified to relevant consumer about his/her returned cheque.

Consumers’ bills
Consumers can pay their bills to banks and post offices and CEB counters .Bills that are
collected by banks and post offices come with cheque, and with bills schedules. These bills
entered into “CEB Payment Entry system”, including all information of bills and related
cheque .Both cheque values of banks and post offices are entered into “bank and post office
collection” record considering cash date of those cheques of the bills that are collected by
CEB counters can be got from computer system as counter collection. PIV collection by CEB
counters can also be got from counter collection.

2.7 Reconciliation of accounts balances.

There are two types of reconciliation statements should be prepared by ledger clerk.

1. Bank Reconciliation Statement

2. Current Account Reconciliation Statement.

Bank reconciliation statement reconcile the bank balance in ledger & bank balance in the
bank statement while the current account reconciliation statement reconcile current
account balance in ledger & current account balance in control ledger.

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 Following steps to prepare the reconciliation statement.

 Obtained relevant data files

 Identified the relevant data records
 Eliminated double entered figures
 Set- Off equal entries
 Prepared reconciliation statement.

Applying Relevant accounting Standards

Frequently used accounting standards in financial statement.

 LKAS 02 –Inventories
 LKAS 21- Changes in foreign exchange rate
 LKAS 27- Consolidated and separate Financial Statement
 LKAS 18- Revenue.

Work Done
 Studied & Evaluated the implication of above standards to the
financial statements
 Evaluated the requirement of LKAS 02 Inventory with the financial
statement of the organization
 Studied the foreign currency rates affect to the financial statement
under LKAS 27
 Identified revenue ,income of the CEB describing under LKAS 18

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2.7 Auditing & Taxation
Auditing
There are two types of audits are conducted in CEB
01. Internal Audit
02. External Audit

Internal Audit section

The internal audit team should do their audit work at end of each year and Check the success
of the internal control system in the organization.
Use deep check for final accounts, creditors, debtors, payroll, record system, data files.
Steps can be identified as follows,
1. Check the closing balances of previous year
2. Check the transactions which are occurred during the year.
3. Check the closing balances of the year.

Gathering & Evaluating Audit evidences

 SLAUS 13 of Sri Lanka Auditing standard is used for Audit evidence.
 To establish standard and provide guidance the quantity and quality of audit evidence
to be obtained when auditing financial statement and the procedure for obtaining that
audit evidence.
 Audit Evidence means the information obtained by the auditor in arising at the
conclusions on which the audit opinion is based.
 The auditor should obtain sufficient – appropriate audit evidence to be able to draw
reasonable conclusions on which to base the audit opinion.
According to the audit evidence decision can be identified following decision about what
evidence to gather and how much of it to accumulate.
 Which audit procedures to use ( that internal or external audit)
 What sample size to select for a given procedure
 Which items to select form the population
 When to perform the procedures

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Desired qualities of audit evidence
 Relevance
 Reliable
 Sufficient
 Objectivity
 Conclusiveness
 Comprehensiveness
 Efficiency

Taxation
Analyzing Income, Expenditure and other relevant data

Incomes
 Electricity sales ordinary and heavy supply
 Non electricity sales
 Other revenue

Expenditure
 Materials – for constructions and maintains and etc
 Salaries and wages
 Accommodation – Rents and circuit bungalow expenses and etc
 Other costs – way leaves, Bad debits and etc
 Financial costs – Bank charges, Debit tax

WHT
One payment exceed the Rs. 5000 or total payment for one year exceed the Rs. 500000 hold
the 5% out of the bill amount as WHT and this WHT must transfer Inland Revenue
Department directly.

Debit tax
Generally debit tax has not been applied on payment made to government institutions and
authorities. This tax levied by the bank.

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PAYE Tax
Employer (CEB) pays this behalf of its employees under the income tax tables of Inland
Revenue Department.
All the taxes must posted in relevant account codes under the data base by using source
documents.

Work Done
 Calculate WHT under specific rates for the specific fees
 Studied VAT system & its implication to CEB
 Evaluated the Income & Expenditure account of the province.
 Evaluated the balance sheet of the province

VAT Appling in purchase

All suppliers who are listed in VAT, the board pay the following rates as VAT.
12% out of bill amount.
1/3 of the above calculated 12% is paid to the Inland Revenue.
2/3 out of amount pay to supplier.

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2.8 Cost & Management Accounting.

Preparing & reviewing forecasting.

Purpose of preparing cash forecast.

 Forecast the cash requirements for forthcoming periods

 Determine the cash receipts & payment of the specific areas.
 Help to obtain management decision making

Cash in flows.
 Revenue from operating activities
 Receipt from debtors & others.

Cash out flow.

 Material
 Personal
 Accommodation
 Finance
 Acquisition of assets
 Loan & Advance
 Transport & communication

Work Done
 Studied & evaluating the cash forecast of the CEB in compliance with the circulars
 Identified the purpose of preparing cash forecast & its special features
 Evaluated format of the cash forecast & identified the cash inflow & cash outflow

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CHAPTER THREE
CONCLUSION
3.1 Introduction
This Chapter describes overall training outcome ,weakness & recommendation of the training
organization to the trainee point of view. Achieve this purpose it is done SWOT analysis
over the training organization.

Theory of SWOT Analysis.

When Scanning of the Internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified as
strengths (S) or Weaknesses (W), and those external to the firm can be classified as
Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to
as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection. The following diagram shows how a SWOT analysis fits
into an environmental scan.
Opportunities
 Unmet demand for electricity
 Expansion of service distribution
 Advance information technology
 New investment
 Low level of risk of selling the product & services
 Effective government policies

Strengths
 Monopoly of electricity selling market
 Huge assets base
 Level of capital
 Availability of resources
 Scientific managerial practices
 No Competitors

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Threats
 Higher competition & higher demand
 Pricing the final product
 Higher cost of production
 Political Changers
 Lack of generating electricity
 Lack of qualified personnel
 Strength of trade unions

Weaknesses
 No coordinating between department
 Lack of adequate training & development
 Poor internal control & system procedure
 Lack of communication system
 No fully computerized computer network

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3.2 Training Outcome

Considering the six months of training period I have obtained much working experience over
the theoretical knowledge & following values can be listed out that I have gained in the
training organization

 Developed good inter personal relationship with both executive & other staff.

Basically I could learn that how we should work with office staff, customers and other parties
related to the organization.

 Obtained ability to work under pressure.

 Learned how to behave in an organization in any working situation
 Studied how to overcome work pressure & working stress
 Obtained through knowledge in accounts process & maintaining the
books of accounts in the CEB

During my training period I obtained the practical Knowledge regarding the Accountancy and
Finance. Accounts branch of Ceylon Electricity Board Uva province has a well established
Accounting procedure which helps to understand the practical things. The Accountant and the
staff assist me to obtain the knowledge regarding the all activities of the Expenditure Section.
Ceylon Electricity Board had a very good training program, in which I was given a training
schedule. According to the schedule I was to do an overall training about the accounting
process in Accounts branch.

I could improve my accountancy knowledge at CEB in following criteria’s

 Accounting procedure
 Types of Financial Transaction
 Recording Financial Transactions
 Study the Preparation of Ledger Accounts
 How to study the Financial statements
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  How to Audit
 Study How to Taxation
 Cost and Management Accounting
 Human Resource
 Holidays provided to the workers
 Strategies Taken to Advertise the Improvement of Services
 Manner of Handling Customer Complains
 Manner of Organized Environment is prepared
 Manner of Assuring the Operation of Equipments
 Strategies Taken to Advertise the Improvement of Services
 Manner of Organized Environment is prepared
 Manner of the Publishing the Bills

When I was having my training I had to face some problems and I found some
weaknesses of mine. They are,

 Low Knowledge about the financial regulations

 Low knowledge about electricity board accounting procedure
 Low knowledge about keeping accounts
 Hard to familiar with computer

To solve above problems I used following solutions.

 I studied financial regulations and asked the accountant

 I referred previous accounts and got knowledge.
 I practiced the accounting system by helping to other officers.
 I practiced the computer typing and Sinhala key board by letter typing.

Finally I can say the accountancy training at CEB is good and its accounts procedure is easy
and well planned according to the system of the CEB.

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Reference
 CEB web site
 CEB Annual Report
 Circulars

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Certification

Work Site
Accounts Expenditure (Uva)

Name and registration No

R.M.M.S.K.Rathnayake
BAD/HNDA/F/E/2011/07

This is to certify that R.M.M.S.K. Rathnayake has successfully completed a six (06)
month industrial training under my supervision.

………………………………
Ceylon Electricity Board
No 4, Spring velly Road,
Hindagoda
Badulla.

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