Report-2nd quarter

Tryness Gatsi (R112973Q) Bcom Accounting Honours Degree

MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE

Name of student:Gatsi Tryness

Reg Number:R112973Q

Degree Program:Bachelor of Commerce

Accounting Honours Degree

Mode of Entry:Parallel

WRL Supervisor:Mr Mazhindu

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Name of Organisation:Mutoko Rural District Council

The purpose of this report is to provide an overview of the operations of Mutoko Rural District Council. It was prepared in partial fulfilment of the Bachelor of Commerce Accounting Honours Degree at Midlands State University.

PREFACE…………………………………………………………………………………4

ACKNOWLEDGEMENTS……………………………………………………………… 5

Chapter One: Introduction……………………………………………………………...7

1.1 Introduction

1.2 Company History

2

Table ofcontents


1.3 Company Background

1.4 Mission Statement

Chapter Two: Group activities ……………………………………………………...12

2.1 Organizational profile

2.2 Services provided at Mutoko Rural District

Council

2.3 Organizational structure

Chapter Three: Work Related Learning

Program......................................................15

3.1 Group Internal Audit Department

3.2 Values

Chapter Four: Duties performed and relevance of theory to

practice……………….…19

4.1 Introduction

4.2 Audit planning

4.3 Departments and student roles in these

departments

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4.3.1 Finance Department

4.3.2 Human Resources and Administration

4.3.3 Social Services Department

4.3.4 Works, Housing and Planning

4.3.5 Environment Management and

Agriculture

Chapter Five: Achievements, Observations and Recommendations and

conclusion……………………………………………….......................................

.................28

5.1 Recommendations to Mutoko Rural District Council

5.2 Recommendations to Midlands State University

5.3 Conclusion

4


Preface

The author is making this report in partial fulfilment of the

Bachelor of Commerce Honours Degree in Accounting. Work related

learning is a requisite of the Bachelor of Commerce Degree in

Accounting at the Midlands State University. It is meant to expose

students to the practical part of learning relating to the

theoretical learning at the university. During work related

learning students are expected to apply the theoretical concepts to

the real situation at the work place. Work related learning gives

the university the opportunity to assess the student’s ability to

communicate effectively, pro-activeness, diligence, teamwork,

aptitudes and growth. It is imperative for every student to undergo

this type of training since it widens the student’s horizon. More

so, it gives the student the opportunity to choose a carrier path

considering the different industries we have in Zimbabwe.

The purpose of this report serves to express in writing the

writer’s personal experience and the knowledge that she gained

during her year of work related learning at Mutoko Rural District

Council. It is very crucial for any organisation or institution to

have a workforce that is specialised and skilled. It is also

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necessary for organisations to have continuous programs that

facilitate a corporate practical working environment. This report

will focus on duties the student attaché performed and the

knowledge that she acquired through executing the former.

Acknowledgements

First and foremost the author wishes to express her gratitude to

the authorities at Mutoko Rural District Council for giving her

this special opportunity to advance in her studies as this is

partial fulfilment of her degree program. Thank you for

introducing, exposing and enhancing her grip in the financial

environment. Secondly, her humble gesture of appreciation goes to

the writer’s supervisor Mr S Zulu for his invaluable guidance and

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support, the finance officer Mr T Mushango and all other staff

members for their unwavering support.

Above all the author would like to give due thanks to the Almighty

who made everything possible for her up to this day of her life.

She gives praise for being granted such an opportunity to pursue

her dream.

Last but not least, the writer would like to thank all the faculty

of commerce, all the commerce lecturers, namely those in the

Accounting department, all her friends and family members for the

unending and incomparable support to achieve her studies

To all those who have been omitted, your efforts and support have

not gone unnoticed. Thank you very much and may God richly bless

you.

7


Report approval

This report is approved as a true document reflecting a holistic

view of the natural objective and behaviour of Mutoko Rural

District Council. It also identifies and highlights the activities

and duties performed by Tryness Gatsi a student attaché from

Midlands State University doing Bachelor of Commerce Accounting

Honours Degree.

Approved by ………………………………………………………………………………………………....

Position

…………………………………………………………………………………………………..

Date

………………………………………………………………………………………………….

Signature

………………………………………………………………………………………………….

Official Stamp …………………………………………………………………………………………………..

Mutoko Rural District Council

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Group Internal Audit

Stand number 509

Mutoko

Zimbabwe

1.1 INTRODUCTION

The report is prepared in partial fulfilment of the Bachelor of

Commerce Accounting Honours Degree with Midlands State University.

The University makes it a mandatory for students to undertake

industrial attachment or work –related learning during the third

year.

9

CHAPTER 1Introduction


The attachment should be undertaken at a recognised organisation,

and during the course, the student is expected to perform different

tasks and get exposed to the industrial environment. It also

presents students with the much sought exposure, equips with the

basic practical skills and also affords them a much better

appreciation of what the industry sector really calls for.

The report will be submitted quarterly during the period of the

industrial attachment at Mutoko Rural District Council. The report

serves to bring a detailed account of the background,

organisational structure, and scope of business, operating

environment, industrial training program and student work roles.

Main attention is going to be directed to the Internal Audit

Section where the student is based. The data has been gathered

through various consultations within the organisation and through

individual observation and research.

1.2 COMPANY HISTORY

Mutoko was awarded as an administrative district in 1902.Prior to

1994; Mutoko had three councils namely Budya Council (small scale

farming areas), Mutoko District Council (communal areas) and Mutoko

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South Council (commercial farming areas). In 1995 it was then

amalgamated into one rural district council which is now Mutoko

Rural District Council through the Rural District Councils Act

29:13.

The development of the so called ‘Native Reserves’ was given a

very low priority since the settlers appeared in the then Rhodesia

in the 1890s up the late 1930s by Central Government. Decision

making was largely in the hands of the then District Commissioner

who had the position of President of all councils in his district

deputised by the Chiefs. The Native Council Act of 1937 was the

creation of the native councils to deal with affairs of blacks. In

1980, immediately after Independence, African Councils were

abolished 55 District Councils established in their place. The

dualistic nature of local government in rural areas continued until

1995 when District Councils and Rural Councils were amalgamated to

form 58 Rural District Councils. There are currently 59 Rural

District Councils including Mutoko Rural District Council.

1.3 COMPANY BACKGROUND

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Mutoko Rural District Council is a non-profit making local

authority organisation which operates under the Ministry of Local

Government, Rural and Urban Development. It aims at providing

efficient and effective service delivery to its citizens. The

Council is headed by the Chief Executive Officer Mr P. Sigauke.

There are six departments namely, Finance, Human Resources and

Administration, Social Services, Internal Audit, Environment and

Agriculture and Works, Housing and Planning .Each department has

its core values, functions, missions and visions and when it is

consolidated it forms the Council’s mission statement. Mutoko is

divided into 29 wards with the councillors (heads of wards) are

elected through the Rural District Councils Act 29.13.There are 20

communal wards,5 resettlement wards and 4 small scale farming

wards.

Geographical location

Mutoko Rural District Council administers a Rural District located

143 kilometres North East of the capital Harare along the Harare-

Nyamapanda highway and 90 kilometres from the Zimbabwean boarder

(Nyamapanda) with Mozambique. Mutoko Rural District Council is in

Mutoko District Centre, about two kilometres off the Harare -

Nyamapanda highway, heading southwards.

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Nature of business and principal activities

To administer, repair and maintain infrastructure in the community

using funds from the Government and those funds locally generated.

1.4 OUR MISSION

We commit ourselves to promote good governance and gender equality.

Vision

To become the best democratic and development focused local

authority in Zimbabwe.

Our values

Accountability

Openness

Transparency

Inclusiveness

Consultation and Participation

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Gender sensitivity

Strategic thinking and planning

Equity at law

Key result areas

1 Improved services delivery

2 Enhanced revenue generation and collection

3 Upgrading infrastructure

4 Investment promotion

Policy making

Policy making in council is done through committees which are

derived from the departments of the council and the full council.

The committees are chaired by elected councillors, and heads of

departments form part of the committee. These committees sit every

month to deliberate reports from respective departments, thereafter

full council convenes to deliberate issues from the committees and

up with resolutions which are then implemented in council.

The Chief Executive Officer attends all the standing committees

except the Audit Committee and the directors attend their

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respective committees to provide administration, technical and

professional advice. Directors also attend council meetings in

their capacity as departmental heads.

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2.1 The Organisation Profile

Nature of the business and principal activities

Mutoko Rural District Council like any other council operates under

the Ministry of Local Government Urban and Rural Development. The

nature of the business and its principal activities is to

administer, repair and maintain infrastructure in the community

using funds from the Government and those funds locally generated.

The Local Authority functions were delegated by the Central

Government.

16

CHAPTER 2Group activities


2.2 SERVICES PROVIDED

Health Services , Education

The rural council owns and operates seven Council Rural Health

Services to ensure affordable medical services to the residents and

protect them from the prejudice by private clinics and also to

offer competition in terms of medical fees and the quality of

service provided. The council also makes it a mandate, through the

health department, to control the spread of malaria and other

diseases by spraying in stagnant waters and swampy areas

periodically. Public toilets have been erected in a bid to uplift

the health standards of the growth point. The Council also prides

itself with 80 Primary schools and 38 Secondary schools to ensure

basic, affordable education as well as to promote and nurture

sporting talents. The social services department oversees the

running of both the health centres and the schools.

Housing, Infrastructure development

The department of Works, Housing and Planning is responsible for

the administration of stand allocation to the community for

residential, commercial and industrial purposes. The Rural Council

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also promotes through this department infrastructure development by

providing land, thus there are commercial, industrial and

residential stands for the informal sector. The council services

these stands, thus putting up water, sewer lines and roads. The

stands are then disposed to the public for a fee.

Sanitation, Business partnerships

The council is responsible for affluent treatment and reticulation

of sewerage. It is also responsible for keeping the environment

clean through the collection and disposal of refuse. However the

service is being hampered by lack of adequate refuse trucks. The

organization has promoted the informal sector thereby addressing

the plight of unemployment that has plagued the nation. It has

promoted indigenization by creating market stalls at the growth

point as well as flea markets and the upcoming markets. Mutoko

Rural District Council is also responsible for the mining of the

black and white granite mineral resources which is currently being

mined for export purposes. The Grain Marketing Board (GMB) is one

of the major players in the commerce sector since the district is

dependant in farming.

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2.3Organogram of Mutoko Rural District Council

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Full Council Committee

Chief Executive Officer

Head of department

Works, Housing and planning

Planning technician

Plumber ,Building Expector

Works foreman

Head of department

Fiance

Book keepers

Accounts clerks

Cashiers

Head of department Internal Audit

Audit clerk

STUDENT

Head of department

Human Resources and Administratio

n

Committee clerks

Revenue clerks

Drivers

Head of department Environment

and Agriculture

Head of department

Social Services

Nursing

Nurse aids

Schools SDC


3.1 Group Internal Audit Department

The writer is attached to the Group Internal Audit department. This

department is giving her the opportunity to be exposed in the

following departments; Finance department, Social Services, Human

Resources and Administration, Works, Housing and Planning and

Environment Management and Agriculture departments.

Mutoko Rural District Council management supports the department of

Internal Audit by ensuring that there are adequate resources. The

department examines and evaluates the council’s strategic business

units, internal controls and business processes. The primary

objective of the internal audit department is to assist all levels

of management of Mutoko Rural District Council business units in

the effective discharge of their responsibilities. Internal

20

CHAPTER 3Work RelatedLearning

Programme


auditing furnishes them with analyses, recommendations, counsel and

information concerning the activities and records reviewed. The

Internal Audit department reports administratively to the CEO and

functionally to the Audit Committee.

Vision

The Internal Audit Department strives to;

- Be recognised individually for professionalism, competence and

positive attitude.

- Be recognised as being among the internal auditors in the

financial sector.

The Mission of Internal Audit

To provide independent, objective assurance and consulting services

designed to add value and improve the Council’s operations. This

will be achieved by bringing in a systematic, disciplined approach

to evaluate and improve the effectiveness of risk management,

control and governance processes.

3.2 Values

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In carrying out our mission, we share certain beliefs and values.

We are committed to:

- Provide excellent professional service to Mutoko Rural

District Council.

- Maintaining our independence and objectivity.

- Conducting ourselves with the highest degree of fairness and

integrity, and complying with the Code of Ethics of the

Institute of Internal Auditors.

- Maintaining relationships with all stakeholders characterized

by respect, helpfulness, sharing, patience and openness.

- Achieving continuous professional improvement through the

pursuit of professional certifications and of educational

goals in the profession.

The Internal Audit profession is guided by the Standards for the

Professional Practice of Internal Auditing and the Institute of

Internal Auditors’ Code of Ethics.

Accountability of the Internal Audit

To provide for independence of the internal auditing section, it

reports administratively to the Chief Executive Officer and

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functionally to the Audit Committee as provided in the Rural

District Councils Act 29:13.

The functions of the Committee as provided by the Rural District

Councils Act Section 137 are;

a. To inquire into and report upon the manner in which the

finances of the Council, its assets and human resources are

being used.

b. To ascertain whether the funds and assets of the council are

applied to the purposes intended and standing orders issued by

the council, or the Minister, as the case may be;

c. To call for information, explanations and evidence in respect

of any matters in respect of which the auditors have made

observations.

d. To receive and consider reports of internal and external

auditors and make appropriate recommendations to council.

e. To recommend to the council appropriate methods of investments

of moneys and custody of any other properties of the council.

Scope of the internal audit

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To determine whether Council’s network of risk management ,control

and governance processes as designed and represented by management

is adequate and functioning in such a manner as to ensure;

Significant financial, managerial and operating information

is accurate, reliable and timely

Risks are appropriately identified and managed.

Continuous monitoring and evaluation of the performance of

the Council’s Strategic Pan.

Quality and continuous improvement are fostered in Council’s

control process.

Employees’ actions are in compliance with policies,

standards, procedures and regulations.

Programmes, plans and objectives are achieved.

Significant legislative or regulatory issues impacting

Council are recognised and addressed appropriately.

Resources are acquired economically, used efficiently and

adequately protected.

The systems audits are carried out in all departments but mainly

the finance department where most of the transaction activities are

performed.

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25

CHAPTER 4Duties Performed and

Relevance of Theory toPractice


4.1 INTRODUCTION

This chapter explains the duties performed by the audit student in

Audit department she has been attached to. It then gives an

assessment of the relevance of theory to practical operations. This

assessment has been done to see whether what has been taught at the

university has been impact on practical operations. Question in

mind; “Are the courses taught at the university relevant to the industrial activities?”

DUTIES PERFORMED

4.2 Planning an audit

It involves gathering background information on the audit and

similar audits as well as identifying detailed audit objectives on

assigned section. Furthermore audit planning process includes

identifying audit tasks and procedures to be performed, documenting

the audit program for the assigned schedule.

Field Work

26


Testing the adequacy of existing internal controls as

specified in the audit plan.

Verifying compliance with existing policies and procedures for

maintaining data integrity.

Testing the validity of processed transactions.

Providing audit report input; when carrying out an audit, one

should be continually alert for items to be included in the

audit report.

4.3 Student roles in the Departments of Mutoko Rural District

Council

4.3.1 Finance Department

The department is responsible for collection and

disposal/reinvestment of money from and back to the community. The

sources of income vary from refuse collection, sanitary disposal

and burial fees, government grants, sewerage reticulation, housing

rents, sale of stands, vehicle and shop licences, and market fees.

To guarantee transparency, it is the Finance department’s duty to

prepare Annual Financial Statements for both internal and external

use.

27


Principal activities of the finance department

To receive shop licences, unit tax levies and growth point licences

and channels the funds towards maintenance of council premises,

motor vehicles and machinery.

Student roles in the Finance department

To carry out audits as per annual activity plan, the internal

audits that are carried out in the Finance department throughout

the year by the student are as follows;

a. Revenue collection and banking audits-checking is done on the

banking pattern, bank statements, tariffs used to receipt cash

from rate payers, proper maintenance of sequential receipts

when receipting.

b. Cash spot checks-these are done on a random basis at all

revenue collection centres. Cash is reconciled to receipts in

order to ascertain if there are no discrepancies.

c. Payments of creditors-checking document movement throughout

the accounting system for proper recording, accuracy and

authorization.

28


d. Billing of properties-checking if properties are billed

correctly as per gazette tariffs.

e. Review of payment vouchers-checking whether they were entered

into the cashbook in their pre numbered sequence.

f. Procurement of goods-checking if proper procedures are

followed for the procurement of goods, carrying out physical

counts of goods delivered and witnessing year end stock

counts.

g. Salaries and personnel audits-checking proper maintenance of

staff records, payroll, statutory remittances.

This department is profiled high risk due to transfers of

money that are made for fraudulent purposes. There are inter

account fund transfers at Mutoko Rural District Council. Since

the five departments run by five different Executive Officers,

each department has a bank account with the Standard Chartered

Bank and the Metropolitan Bank.

Internal Fund Transfers

29


There are procedures to be taken when processing internal fund

transfer transactions and these make up the audit program for

the department.

Check whether;

o Fund transfer instruction is submitted by the executive

officer (EO) of the respective department or an

indemnified person.

o There is signature verification.

o There is time on which the instruction was received.

o There is segregation of duties in processing.

o Fund transfers are stamped /authorised by a department

official.

The author carried out a file referencing exercise for the various

departments which are Social Services, Human Resources and

Administration, Works, Housing and Planning and Environment

Management and Agriculture.

Managerial Controls

Ensure staff profiles recognize segregation of duties.

30


Ensure that staff profiles for staff who have left the

department have been deleted and incoming staff included on

department staff profile.

Ensure that access to department bank account is restricted.

Ensure that the procedure of the department is properly laid

down and followed.

Ensure that the department assets are properly labelled.

Ensure that the recording of revenue banked into the finance

department account is proper and under dual administration.

Ensure the department uses a log book which will contain

information like date, persons involved in the banking. The

Ideal structure is Time/Banking scope/Results/Executive

Officer Finance department signature/Chief Executive Officer’s

signature.

These programs guided the student in carrying out an audit review

in each of her assigned areas.

Communication

Ensure department meetings are held once a month and

minutes documented. Review the minutes.

31


Ensure Quality Circle meetings are held quarterly and

deliberations documented. Review the minutes of the

meeting.

Ensure issues raised in monthly staff meetings and

Quality Circles are followed up and conclude (evidence on

the next meeting).

The finance department is also responsible for the running of the

PSIP and ZINARA accounts. These two accounts receive grants from

the PSIP and ZINARA for the purposes of sewer reticulation and

infrastructure development and the community respectively.

The student was assigned to carry out an audit review in the above

mentioned departments so as to check whether;

Funds are properly channelled to their areas of concern.

Fund transfer from PSIP and ZINARA departments to the other

departments at the council are verified and signed for.

Time on the instruction of the fund transfer was received.

There is segregation of duties in the process of fund

transfer.

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Vouching

This is an interesting area and yet profiled high risk. The author

prepared an analysis sheet to carry out the following audit

procedures;

Verifying whether;

Deposit slips are provided for every income that has been

banked.

Date on the deposit slip corresponds to that on the cashbook

on which the income has been recorded since all income is

banked the same day cash is received.

Cash withdrawal slips are filed as poof and attached to the

payment voucher to which they relate.

All supporting documents (receipts and invoices) are filed for

transparency reasons.

Signatures on cash withdrawal slips are legible.

4.3.2 Human Resources and Administration Department

The Human Resources and Administration department is responsible

for the recruitment, retirement and resignation of employees that

is personnel administration, key and asset administration. It is

33


also responsible for all the secretarial work at the council. The

department’s bank account is responsible for payment of salaries

and wages and bonuses using contributions from the council’s

various accounts.

Student roles in the Human Resources and Administration department

Compliance checks on the laid down procedures in terms of

recruitment, retirement and resignation of employees.

Physical verification of assets.

Other audits that may be requested by the respective heads

of departments.

Asset administration

The audit procedure/program was to check whether;

The council has an asset register for each office.

Physical checks are being done as per manual.

The council vehicles are well controlled and the log book well

maintained.

Assets such as the generator and vehicles have been serviced.

Keys administration

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Establish whether various keys are being maintained.

Check whether;

There are monthly supervisory checks within the key registers.

There is no straight access into the bank accounts of the

council.

There is dual custodianship of keys to the strong room.

Personnel administration

Ensure that quarterly Short Term Objectives are set and

reviewed.

Ensure that job descriptions are available, confirmed by the

incumbents and on the file.

Ensure that there is a staff leave programme in place.

Ensure staff training programme is in place and takes

cognizance of skills gap and training needs for each staff.

Ensure that each staff file has a card which is being

constantly updated.

Mailing administration

o Check whether all security items are delivered under lock and

key.

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o Verify whether mail is being collected from and delivered to

departments at specific intervals without fail.

o Verify if messengers/drivers are signing in and out each time

they leave mailing section and they report back.

o Examine consignment notes for signatures to check whether the

goods were counted and locked.

o Verify whether dispatch register is being signed for.

o Check whether there is segregation of opening mail from

Zimpost and other e-mails.

o Verify whether postage charges are being recovered for all

posted mail.

Managerial control

Ensure registers are checked four times per month by the

Executive Officer Human Resources and Administration

Department and once per month by the Chief Executive Officer.

Checks to the register are on-going(Admin Manual, Section

25.11)

Ensure that used up registers are securely kept.

Tender opening

36


The author opened the council’s tenders which were lodged since it

is a control measure to avoid fraudulent offerings to anyone who

has an interest in the organization. The procurement department is

the one which is solely responsible for tender management under the

supervision of audit department. A tender box is in the Audit

Department and has a dual control; one staff member is from the

Procurement department and the other from the Audit department. The

writer’s duties were to ensure that the tender opening and

transparent and writing a report to the committee pertaining the

transparency on the opening.

4.3.3 Social Services Department

The department is responsible for the provision of health and

environmental services to the community. It is also responsible

for the running of Council schools. Monthly meetings are hold so

as to ensure an effective running of the department. The

department receives funds from fees and licences for purposes of

meeting recurrent expenditure. There are different sections in

the department namely;

a. Clinics/health centres(there are 7 health centres located in

different parts of the Growth Point)

37


b. Council schools

c. Refuse collection

d. Street cleaning

Student roles in the Social Services department

To carry out audits such as;

a. Cash spot checks-these are carried out at all centres

mentioned where there is collection of cash. (For example

reconciliation of cash collected for tuition against

receipts.)

b. Review of internal control systems by testing for

compliance.

c. Review of drug usage at clinics.

d. Physical stock counts of drugs.

e. Compliance of student enrolment at schools

f. Physical check of assets at schools.

Health and safety

38


This area usually is reviewed through observation. The auditor is

to observe whether the council is generally clean as well as the

toilets and kitchen. Health and safety includes among other things

displaying AIDS awareness materials and the training of peer

educators. The auditor is also to ensure all HIV/AIDS policies at

Mutoko Rural District Council are in order, remains current,

effective and an ongoing process also with assistance of the Public

Health Act (15:09) for the protection of the employees’ health at

the work place.

Communication

Ensure the department meetings are held once a month and

minutes are documented. Review the minutes.

Ensure quality circle meetings are held quarterly and

deliberations documented. Review the minutes.

Ensure issues raised in monthly staff meetings and Quality

Circles are followed up and concluded (evidence on the next

meeting).

4.3.4 Works, Housing and Planning Department

39


The department is responsible for sewage works, road works and

maintenance of open spaces. It is also responsible for the

allocation of stands. The Works, Housing and Planning department

receives funds from sale of stands and rent and rates and channels

the funds towards maintenance of houses in the community, sewer and

water reticulation and servicing of stands. There are different

sections in the department responsible for the provision of the

services mentioned thus;

a. Sewage works

b. Roads and open spaces

c. Survey and planning

d. Mechanical

e. Transport

Student roles in the Works, Housing and Planning department

The main purpose of carrying out audits in this department would

be;

Review of stands allocations-checking compliance to

laid down procedure for allocation and maintenance of

stand registers.

40


Checking compliance to laid down procedures

Checking handover takeover processes

Analysis of usage of ordered parts and materials in all

the sections

Physical verification of assets

4.3.5 Environment Management and Agriculture Department

The department is responsible for the provision of environmental

services to the community. It is also responsible for all farming

issues in Mutoko. The nature of the business is to generate funds

through the production and sale of farm crops such as maize and

tobacco and to provide for the welfare of wildlife, forestry and

other natural resources for the benefit of the community.

Student roles in the environment and agriculture department

- Testing the adequacy of the existing internal controls in the

department.

- Checking and inspecting if the farmers levies are receipted

whenever there is payment.

- Observing whether the officials check for farm and plot

licences.

41


- Checking whether land disputes are being settled accordingly.

Other skills acquired

Meeting skills

During attachment the student attended several meetings. In these

meetings she was given the opportunity to participate by way of

ideas. This has built confidence and modelled the student into an

effective speaker. From such meetings she managed to understand

best ways of presenting facts and arguments as well as criticizing

as opposed to blaming. She also learnt to present feedback.

Conceptual skills

Auditing various departments has enabled the writer to see things

in a holistic approach. She has come to understand the concept of

synergy and would try by all means to assess the implications of

her actions to the whole system before implementing them.

Team work

Team work is the order of the day as this helps the work flow in

the department. The author is part of a team in the internal audit

department. This made the author being a diverse team player who

42


blended well with team mates and pushed their efforts towards the

success of the organization and meet deadlines.

Responsibility and self-control

During her placement at Mutoko Rural District Council the student

attaché learnt to take responsibility for the duties that she was

assigned. The student had to ensure that all the necessary

documentation was kept in files and extreme care was exercised for

the documents as they were used as evidence when queries are

raised. The writer also learnt how to relate to different people

and situations. Respect of colleagues enhanced the learning process

and team work. Self-control was mostly exercised even when there

was little supervision.

Decision making

Being allowed to carry out tasks without the assistance of a

senior, the student enhanced the ability to make decisions

especially when she was assigned to write up the ledgers. The

student encountered situations that put her decision making skills

at test, for example when she corrected all the transactions to

accrual basis concept rather than cash basis concept which was

being applied on other transactions. Also in the audit department,

43


after working on an area the writer had to decide whether the

findings were worth reporting or just appropriate for discussions

with the management.

Risk assessment

The author is having an opportunity to look at key risk indicators

that come from the council. Analysis of the key risk indicators

would give an insight to the areas that would need

special/immediate attention during audits and the impact of the

areas on overall department performance.

Relevance of modules covered

The theoretical knowledge which the student gained from the audit

modules that she learnt helped her a lot, especially on the part

which covered audit evidence and assurance. She was able to use the

knowledge gained when she was gathering her evidence when she came

across some fraud cases during the course of carrying out the

duties tasked, thus providing evidence that is reliable, relevant

and sufficient.

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The writer also observed and better appreciated the importance of

always bearing in mind the concept and aspect of auditor’s

independence and integrity. Integrity in the audit profession is

very critical therefore with or without supervision an auditor has

to be responsible and should always meet deadlines. She also

enjoyed practically learning on the audit profession as far as

objectivity is concerned.

Achievements

Most of the activities that the student carried out were achieved,

though there were some minor challenges. The tasks that the writer

45

CHAPTER 5Achievements,observations

Recommendations

And conclusions


carried out helped her to link her theoretical knowledge with the

practical work, and also gave her some appreciation of what the

industrial and commercial work really entailed. There was a great

achievement and improvement in the relevant skills by the student

with comparisons from one period to another. The privileges

include;

- Understanding how theory can be married into practice

notwithstanding the gap that exists between theory and

practice.

- Appreciating the need of team work and positive results that

can be yielded.

- How to manage pressure and conflict at work.

- Appreciating the basic accounting operations

Observations

There is a lag in terms of technology. Though the student

expected making use of a computerised accounting system, the

Council operates without the use of any accounting system for

billing, debtors control and stores control etc. which can enable

the organisation to solve its accounting problems. More so, due to

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lack of adequate know-how on the part of the employees, they cannot

fully utilise any system and this is resulting in all activities

being manual. The manual system is susceptible to lots of errors,

time consuming and can easily be manipulated or tempered around.

However arrangements to purchase an accounting system (Pastel) are

in progress.

Lack of adequate resources, for example vehicles to use when

carrying out field visits. Most of the internal audit work in the

Council set up entails visiting the centres which are located in

the different areas of the Growth Point. For example when the

student was carrying out spot checks it meant visiting revenue

generating areas. Time was sometimes wasted due to unavailability

of transport.

This problem is compounded by the fact that there is no vehicle

allocated to the section so the audit department make use of

vehicles which are on demand by every other office. Due to this, it

therefore became difficult to conduct unexpected spot checks as

originally intended.

Recommendations

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The council should allocate its vehicles to each department such

that work is viable and delays are minimised. The allocation will

also help in maintenance or servicing of the vehicles by the

responsible head of departments.

Scepticism in the management- the student felt sceptical

about proposing some improvements on some shortcomings that she did

notice in the system. She did encounter problems whenever she

wanted to recommend something as she feared resistance to change.

This in itself hindered her room to fully express herself for the

betterment of the organization.

Lack of support and proper cooperation by fellow employees who had

the perception that an audit is all about witch-hunting. This

however, meant that the writer had to put some extra effort in

order to obtain all the relevant information required to carry out

all the required tasks.

The debtors’ collection periods are very long and the Land

development levy (LDL) and the unit tax debtors are not being

collected. This reduces the liquidity of the organization.

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Recommendations

- An effective debtor’s policy must be put in place.

- A provision for bad debts should be created. The organization

may have to consider writing off unrecoverable debts.

Books of accounts

During a review in the books of accounts the writer observed

that the cashbooks were not balanced and reconciled with the

bank statements. This will result in deliberate and fraudulent

errors being undetected.

Some payments made by the council were entered in the

cashbook without sufficient details such as purpose and

voucher numbers etc. thus lack of transparency. There will be

no assurance as to whether the funds benefited the council or

individuals when there is lack of supporting documents.

Petty cash transactions are not budgeted for. This resulted in

most of the cash being used to pay for daily cash expenses

without intact banking of the cash.

The council is not creating debtors on rentals of property.

There will be no actual amounts as to who owes the council

49


what amounts resulting in a reduction in the organization’s

liquidity.

When accounting for the councillors’ monthly allowance and

salaries, the cash basis of accounting is being applied.

Referring to salaries, the new tax rate to NSSA of 3.5% up to

$700 is not being applied. The council still applies the 3%

rate.

Recommendations

o Cash books should be balanced and reconciled and signed by a

senior as proof that they have been checked.

o Bank reconciliation statements should be prepared periodically

i.e. monthly and reconciling items cleared timely to allow for

the prompt identification and rectification of errors.

o All payments should be booked in the cash book with all the

necessary supporting details relating to those transactions.

o The organization should implement a system of maintaining

petty fund for petty payments and replenishment of petty

funds.

o A separate petty cash book has to be kept

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o All income received by the organization should be receipted,

recorded in books and banked intact, and recorded in the

financial records.

o All banking schedules should be submitted for audit.

o There is need for explanations on why there are inconsistences

in the financial information, for example salaries and other

fixed amounts that have variances as compared to prior year.

o When cash is deposited, correct information must be written on

the deposit slips such that it becomes easy trace whenever

there is an error.

o The accrual basis of accounting must be applied on accounting

for salaries and councillors’ monthly allowances since these

amounts are not paid cash basis / during the actual period to

which they apply to. The council will be owing its employees

and the councillors during various accounting periods.

o The council ought to adhere to new regulations which affect

its account whenever they have risen.

Computers

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The organization should carry out a cost benefit analysis between

the cost of machines (computers), and the cost of machine shortages

and limitations in business applications system. Impact on service

delivery should also be included. The writer recommends that the

group should buy machines for every employee in need.

Infrastructural development

Infrastructure development has a key role to play in both economic

growth and poverty reduction. The infrastructure supply and

services are poor in Mutoko although particularly under pressure

in all other Growth Points in Zimbabwe. Investors severely sense

the constraint of physical infrastructure on economic growth.

Physical infrastructure play an important role in developing rural

regions, thus Mutoko Rural District Council have to consider the

developing of physical infrastructure at this Growth Point.

Since Mutoko Rural District Council considers Mutoko to be an Agro-

economic town in the near future, the availability of roads,

electricity supplies, telecommunications and other infrastructure

services is of key importance to stimulate agricultural investment

and growth. Investment in infrastructure is essential to increase

farmers’ access to input and output markets, among other things.

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Recommendations to the university

Introducing seminars for students who would be going for work

related learning with management of different companies in

different lines of business as an initiation for students to

familiarize with industrial environment. Students have to be

aware that the industries they choose during work related

learning will prepare them for their projects/dissertations,

and also affect their job carriers for their life time.

Seminars can be invited former students and/or fourth year

students who have been at different organizations to help

fully tell more about the companies they were working for.

This will help students who will be going for work related

learning on which organizations to choose to work for.

The university has to introduce a course on research before

work related learning as research is of paramount importance

in business. As the student had to do work involving research

it was a challenge to her because of lack of research skills.

Broadening the depth of courses offered. The University is

advised to divert from offering traditional courses but rather

broaden the scope of those courses in order for students not

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to too alien with real requirements of work environment. For

example accounting subjects though they now include practical

lessons on basic Accounting systems such as Pastel and ACL,

there is need for emphasis on their importance.

Conclusion

The author considers the industrial attachment as a milestone

achievement towards the fulfilment of her academic aspirations.

Deliberate effort has been exerted to ensure the industrial

attachment a success. Notwithstanding veritable challenges that she

encountered during the attachment period she is pleased by the

realization that virtually all the attachment objectives have been

fulfilled.

In a nutshell the industrial attachment privileged her to grasp the

following concepts;

Understanding how theory can be married into practice

notwithstanding the gap that exists between theory and

practice.

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Appreciating the basic accounting operations and how the

organization play its role as a financial stakeholder in the

economy.

Appreciate the need of team work and the positive results that

can be yielded.

How to manage pressure, work related stress and conflicts at

work.

The work related learning is meant to give students a platform to

get into the industry and at the same time preparing them for the

working environment. This is greatly helping this student and

improving her intellectual skills.

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Signed:

Tryness Gatsi

………………………….

WRL Supervisor

S. Zulu

…………………………

Chief executive officer

P. Sigauke

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Documents

Report-2nd quarter