ARSI UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE
PRACTICAL ATTACHMENT REPORT ON COOP BANK OF
OROMIA AT WARA JARSO BRANCH
SUBMITTED TO DEPARTMENT ACCOUNTING AND FINANCE OF IN PARTIAL
FULFILLMENT OF COURSE PRACTICAL ATTACHMENT AND ITS SEMINAR

PREPARED BY: DEREJE BIKILA

ID NO. UGR :12294/14

NOVEMBER, 2024
ASELA,ETHIOPIA
 ACKNOWLEDGMENT
First of all my deepest thanks goes to Almighty God for his endless help and make me to stay in life to
this day and enables me to complete my internship. Also I offer my sincerest gratitude to my supervisors

in Cooperatives Bank of Oromia, Mr Asamino Fayisa whose encouragement; supervision and

support me specially Moyibon Tolosa and Abera Chali from the starting to the concluding level during
the entire internship period enabled me to develop a deeper understanding of the subject and nature of
the banking industry especially about cooperative Bank of Oromia S.C (CBO). And also I would like to
thank all employees of CBO at wara Jarso branch for their cooperation and dedicating their time in
responding my internship questions. Similarly, I would also like to thank the Arsi university and College
of Business and Economics specially Accounting and finance Department for providing me with an
opportunity to come up with an internship opportunity that has resulted in winding my knowledge
horizon greatly. I am greatly thanks for my family they had been assisted my schooling life and to give
advice how can I goes with my planning activity to finish my academic schooling in this University. Finally
I would like to acknowledge all individual and institutions that helped me materially and morally during
the preparation of this paper.

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 ABSTRACT

This summer attachment report was prepared on CBO at wara Jarso branch. The report contains
six main parties; part one contains the background of the organization right from its
establishment and cardinal issues of the organization. Part two includes key functions, swot
analysis, opportunities, and threats of the organization. In part three, the general evaluation of
the attachment period, possible problems and their solutions are explained. The last part
included the conclusion and recommendations of the attachment.

The report was conducted on both bank services and product of the CBO Wara Jarso. The required
data was collected by using direct observation, discussion with concerned parties, observation
services and office documents.

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Contents
ACKNOWLEDGEMENT.....................................................................................……......................................I
ABSTRACT..................................................................................................................................................II

CHAPTER ONE
1. Introductions………………………………………………………………………………………………………………………….…............1
1.1 Background of CBO………………………………………..................................................................1
1.2 nature of CBO ………………………………………………………….….................................2
1.3 Objective and Goal of the Organizatio …………………….……………. ……….....................2
1.4 Structure of the organization ………………………………………….........................................3
1.5 Cardinal Issues of the Bank………………………………………………………………………………………………………….......4
1.5.1 Vision…………………………………………………………………………………………………………………………….......4
1.5.2 Mission……………………………………………………………………………………………………………….…….…........4
1.5.3 Core value…………………………………………………….....................................................4
1.6. Position of the organization /institution in the relevant industry ………………………………………………..……..5

CHAPTER TWO
2. SWOT ANALAYSIS
2.1 Strength of the Organization………………………………………..………….……………….……...........5
2.2. Weakness of the Organization………………………………...............................................................6
2.3. Opportunity of the Organization……………….…………………….….................................6
2.4Threat of the Organization………….….……………………………….....................................7
CHAPTER THREE
ACTIVITY UNDER TAKEN DURING THE FIELD OF ATTACHMENT
3.1 Activities and Major Responsibilities of Me as a member department.……...…….........….7
3.5 Key Function of the department……………………………………………….............................................7
CHAPTER FOUR
LESSONS, EXPERIENCES AND SKILS

4.1 Lesson of The practice …………….…………….…………………….....................................10

4.2. Experience.………………………………………….……………............................................10
4.3, SKILL………………………………………………………...............................................…..10
4.3.1, Practical skill…………….…………………………….……….......................................10
4.3.2, T HEORETICAL SKILLS…………………………….……………………....................................11
4.3.3, Inter Personal Communication Skill ………………………………………...........................…..11
4.3.4, team Playing Skill………………….……………………………….............................…11
4.3.5, Work Ethics………………………………………………....………………………………………………....…..11

CHAPTER FIVE

Specific management concept

5.1 planning system Coop bank Oromia ……………………………………………………...................…12
5.2. Recruitment method ………………….…………………………………….......................12
5.3 Selection metho………………………………………………………………….......................................12
5.4 Induction or orientation …………………...………………………….....................……
12

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 5.5. Placements…………………….…………………………….……...........................13

5.6 promotion methods ………………………………………….…….....................….13

5.7. Compensation method……………………….…………………….…...................13

5.8 leadership style………………………..…………………………………………………………………………….13

5.9 COOPERATION.………………………………………………….…….......................................….13
5.10 Communicative method…………………………………………............................…13

CHAPTER SIX
6. SUMMARY /CONCLUSION AND RECOMMENDATION
6.1 Summary / Conclusion………………………………………………………………………………….…....14
6.2 Recommendations……………………………………………………………….………………..……………14
6.2.1.Recommendation for the university …………………………………………………………………15
6.2.2, Recommendation for the organization …………………………………………….………….…15
Reference…………………………………………………………………………………….………….…..16

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 CHAPTER ONE
I.INTRODUCTION
The bank industry is an enormously important part of any economy. Economic growth depends
on the money supply that is delivered by the financial industry and its key participants. Finance
is vital for running, mobilizing and operating the economy of the nation within which most other
social and economic activities take place. It is by far the most important way in which societies
create new value. It provides a society with delivery mechanisms for many aspects of its needs
such as economic, public sector reform. The industry’s services are essential to mankind’s
economic and social day-to-day existence.
With many other banks such as private and governmental banks Cooperative Bank of Oromia
intertwined with the works being undertaken as financial sector which many of society’s
economic progress is based on.

For having Sufficient amount of capital cash is the most important source of every aspect of
investment. To improve the performance of the business as well as to introduce new business
opportunity in the organization cash is very important. Since cash is the most powerful working
capital component, the collection and payment of cash must be studied carefully. Therefore, this
report tries to show how cash is controlled and managed by taking Cooperative Bank of Oromia
S.C as a representative from the real world practice CBO is a service and product giving
organization. Its main activities are commercial banking activities encourage mobilization of
savings and encourage international banking activities which are import and export and provide
loans and advances to the economic sectors. CBO operate and manages its cash in many ways.
CBO collects cash from its customers in many ways and documents used for collection and also
sources for cash are discussed.

1.1 BACK GROUND OF CBO

Cooperative bank of Oromia established to provide banking service and product. It was
registered on 29 October 2004 in accordance with article 304 the commercial code of Ethiopia
and was licensed by National Bank of Ethiopia as proclamation 84/1994 that provide for licensed
and business. The banking commercial on 8th march 2005.

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 CBO in networking its many branches in A.A and other town in Oromia regional state. The
bank which is opened its doors in March 2005 which a paid –up 110 million capital birr in
embarked on the networking project a month earlier floating a tender which award to protect soft
solution an Indian company for 96,4000 birr.
The total population of Wara Jarso woreda was about 70,000 according to data population of
2018 among them urban are 30,000 and rurals are 40,000. CBO Wara Jarso Branch is one of the
northern Finfinne district, which is founded in north shoa; Wara Jarso woreda. It is far from
Addis Ababa around 186 km.

CBO Wara Jarso Branch which I was conducted is also one branch that is providing different
services for so many customers especially for Wara Jarso community, and also for all customers
of Cooperative Bank of Oromia and to the others banks. Cooperative Bank of Oromia Wara
Jarso Branch has 12 workers among them, 9 males and 3 female.

1.2.1 Nature of Cooperative Bank of Oromia

The Coop bank of Oromia provides full- fledged international banking services, including
facilitation of import and export transactions, handling inward and outward money transfer
services, purchase and sell of foreign currencies, and providing deposit services in hard
currencies Business

Cooperative Bank of Oromia is a private commercial bank in Ethiopia. The Cooperative bank of Oromia
now has a total asset value of more than ETB 121 billion. The bank has 610+ branch networks, 10 million
account holders, and more than 11,500 employees. The bank's headquarters is located in Addis Ababa,
Africa Avenue Flamingo area. The bank has a broad ownership base and diversified ownership structure.
[1]

1.3 OBJECTIVE OF THE ORGANIZATION

 The main objective of Oromia Bank is: -
 To create employment opportunities within the operation areas.
 To actively participate in restoring the environment.
 Support access to viable market opportunities for customers.
 Identify the short term of financial sources in the bank.
 Protect the interest of the bank against any harmful causes, internal and external.
 Promote the meet of customer’s satisfaction via employee’s satisfaction.

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  To create and promote partnership linkage with similar unions operating in
banking and insurance industry.
 To raise awareness on right and duties of employees in line with existing national
and human resource principles.
 Support members during the time of financial distress and unlawful eviction or
dismissal from job.
 To extent at most effort to the realization of the vision, mission, and goal of the
bank.
 Promote to establish and enhance network communication with local and
international onions and federation.

1.4. The Structures of Cooperative Bank of Oromia.

General body: The apex body of cooperative bank of Oromia is the general body of
shareholders /owners of the bank who have the basic right to decide the objective, the existence
and operation of the bank.
General assembly: The general assembly elected representatives, the boards of directors to
whom all the powers to run the bank are based upon.
Board of directors: Boards of directors hired the general managers of the bank.
Executive managers: They are who interested to perform the function relating to policy
matters, implementation and supervision.
Functional departments: at head office levels and branches are in charges of the
implementation of policy and strategies of the bank.

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1.5 Cardinal Issues of the Bank

1.5 .1 MISSION
Rooting our foundation in communities ,we redefine the banking experiences ,through innovative
financial products to bank smarter and live better

1.5.2 Vision
Vision 2030 leading the way in financial inclusion,sustainability and community empowerment for a
brighter future

1.5.3 Core Values

The following set of values will serve to guide the words and actions of all our employees;
 Integrity; upholding high ethical standards and transparency

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  Hospitable;placing customers at the center of banking services
 Stewardship ; advocating for responsible management of resources
 Teamwork; promoting collaboration with in the bank and with its stakeholders

 Futuristic; looking a head and innovating for the future of banking

%our motto; Empowering community , transforming lives

% our tagline ;bank smarter , live better

1.6. POSITION OF THE ORGANAZATION.

CBO was the third in rank/position in profit making among private commercial bank.
 Cooperative Bank of Oromia holds a one of corporate position in Oromia banking
sector.it is operates as private owned enterprise; some owned by the private has strong
market presence with a large customer base and an extensive branch network through the
country. This position allows Cooperative Bank of Oromia to have a significance
influence and control over the banking industry in Oromia. As the largest bank
Cooperative Bank of Oromia plays a crucial role in providing banking services to
individuals ,businesses ,and the shareholder Its competitive advantage with other banks
interims of resource, market share, and customer reach.

CHAPTER TWO

SWOT ANALYSIS OF BANK

2.1 Strength
Faster respond to customers need.
There is good cooperation and well understanding among departments.
Financial and assets leverage; strong management and cost advantage

 Secure and reliable services tailored to the customer need.

 The relationship of organization employees and surrounding area is
very good.

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  Fast service to transferring money.
 Awareness of the organization employees regarding their
responsibility is good.
 Strong positive relation with customers.

2.2. Weakness

Some the weaknesses are as follows:

 Poor management
 Poor market area selection
 Poor network utilization insufficient working area for storing money.
There is shortage of equipment such as computers.
Poor network utilization.
The selection of poor marketing area.
There are no transportation facilities for employees to carry out their
activities.

Absence of enough space.

2.3 Opportunities of Coop bank Oromia

The best opportunities are as follows:
 Low house expense at out lay branch.
 Availability of customer at out lay branch.
 Experienced employees available.
 There a willingness customers to use the bank if they are aware enough.
 Their business sector is expanding with many future opportunities for success.
 Local government wants to encourage local business.
 Their competitors may be slow the adopt new technologies.

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  Communicate and follows former foreign customers.
 Communicate by phone others by collecting information from the foreign customer.

2.4. Threats of the bank

 High competition among other banks.
 Lack awareness of customer to use bank service.
 Lack of access to get new customer at rural area.
 Global financial crises.
 Poor saving culture of the societies.
 Development in technology may change this market beyond their ability to adopt.
 Small change in the focus of a large competitor might wipe out any market position they
achieve.

CHAPTER THREE

3. ACTIVITY UNDER TAKEN DURING FIELD

ATTACHMENT

3.1 Accounting practice and reporting procedure of bank

All departments in COOP BANK OF Oromia at Wara Jarso branch are related to each other.
Also on their daily activities they must report to the body which controls each department. To
achieve the objective and vision they obey responsibility for the job given to all departments. Let
we see their reporting procedure;

The banking business officer reports the daily activity to the quality management and control
officer. Also pass all physical tickets done on transaction daily to them to ensure their activity by
comparing the recorded transaction on the system. Quality management and control officer
reports his or her activity to the customer service manager. Customer service manager reports to
branch manager. So finally all activity in bank is controlled by the manager of the bank.

3.2Key Function of the department

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Customer account and transaction service department is one section of Coop bank
of Oromia at Wara Jarso branch. It performs its duties and responsibility by setting
specific and feasible goals and objectives which support to speed up customer
satisfaction and help profit maximization of the bank

They are working to smoothly implement integrated banking solutions in retail

banking operation of customer service processes and to provide efficient and
qualified services to its customers through:

1. Account opening
-There are many types of accounts those are: -
Saving account – is the interest-bearing deposit opened by legal and
physical persons who fulfill the requirements of bank.
Demand deposit account – is non-interest-bearing account which is opened
by literate customers.
Special demand deposit account – is also non-interest bearing that is
opened to fulfill the request of those customers who, for one person or
another do not want their deposit to accrue for them any interest.
Gamme account ; less than 15 years old
Farmer saving account :for the farmer .
Sinqe saving account ; for the women
2. Duties related to cash
Cash withdrawal

Cash deposit collection

Collection of cash for money transfer
Payment in cash

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3. Credit /Lending services

Term loans; short-term, medium- and long-term loan.

Overdraft facilities
Merchandise loans
Motor vehicle and construction machinery loans.
Machinery /equipment lease financing loan.
Home mortgage loan.
Consulting firms financing loan.
4. Handling foreign exchange

Giving the service of exchanging others currency into birr.

5. Check out the activities

Is checking daily tickets which are filled and written manually, by

comparing the information and balance existing in the computer system.

6. The Organization is has the worker group

1. Manager to manage or control the work in the Organization

2. Auditor to audit

3. Teller to deposit and withdrawal the money

4. Guard to protect the Organization

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 CHAPTER FOUR:

LESSONS, EXPERIANCES AND SKILLS

4.1 Lesson of The practice
Rationales of the practical attachment are the practical reason to decide how to act on the
attachments some of the following listed is reason of practical attachment.

It is that how the problem is identified and the solution is found

It is for that the apprentice to check the relation he/she has with others on work etc.
To assess the interest of the student in the occupation he/she plans to undertake.
To expose the students to work methods not taught in the University and to provide
access to products equipment not normally available in the environment of the
University.
To reinforce employers involvement in the institutional activities and in the entire
educational process of preparing the students for the employment industry
Exposing the student to demand and challenges of a work place
4.2.Experience
The practical attachment seek to offer students (us) a practical translation of the theory we have
been taught. It has also got individual benefit to link the university to the organization, hence
brightening the employment chances of the students in the university. Through this attachment, I
have generated a good interpersonal relationship through my interaction with my supervisors and
colleagues. This has assisted me to interact confidently with people irrespective of the position.

4.3, SKILL

4.3.1, Practical skill

I develop an ability to do a given work practically without any frustration.
I Improved my ability of understand working procedure.

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 4.3.2, Theoretical skills
Speaking of the theoretical skills I have gained, I upgraded my theoretical skills by working in
cooperation with Cooperative Bank of Oromia of Wara Jarso branch employees. I gained the
following theoretical skills during the internship program.

Auditing and digital activity.

Casher’s activity

4.3.3, Inter Personal Communication Skill

I have been able to upgrade my communication skill to a whole new level and gained
confidence on how to ask different questions, to make discussion and decide.
Use of interpersonal communication
To understand the needs of others
To make decision and solve problem
To anticipate and predict behavior
To improving formal communications

4.3.4, Team Playing Skill

During my stay in wara jarso branch, I have learned that, difficult to go ahead and do something
without having a strong team. Team work important because it can speed up procedure and give
good service more efficiently and allows goals to be reached in an efficient and timely way.

4.3.5, Work Ethics

I understood the effect of ethical problem related to work like impolite behavior, lack of
punctuality, disregard of rules and procedures and disrespect for the job. I see how to decline the
ethical problems on the productivity of the company.

CHAPTER FIVE

Specific management concept

Management is the process of dealing with or controlling things or people. Planning
system of the organization.

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5.1 planning system Coop bank Oromia
This Coop Bank of Oromia have its own planning system that plan have divide in to yearly
example at the end of June 30 what seems like plan for the year holding plan is success or fail if
yes it have success add plan to other year and to continue to maximize profit .If plan is fail how
correct this work and why happen this events the plan is half month the holding plan of the year
is going to good manner or not and at quarterly evaluate the plan and at daily plan to all customer
gain service and check debt and credits are balance what seems to day plan compared to
yesterday’
Example in our plan for the 2023.we outlined a strategy to meet the key targets with persistent
commitment. We laid our commitment to drive sustainable deposits, customer-based growth by
expanding branch accessibility and deepening our relationships with current customers and
attracting new ones in target segments. deposits of Birr 4.8billion, raising the outstanding total
deposits to Birr 16.4 billion, a growth rate of 41 percent from the previous year, has contributed
the lion’s share to the upsurge in the profit earning capacity of the bank.

5.2 recruitment method

The company human resource management Extract better wages salary to applicant to pay better
to other company and create image of applicants Join Coop Bank of Oromia a learning
organization which values diversity, equal employment opportunity and a workplace where
relationships are based on mutual respect and Prepare self’s for interview at Cooperative Bank
Of Oromia and written , aptitude questions processes give exam from real candidates.

5.3 selection method

Cooperative bank of Oromia have its own selection methods that method is the applicant
described above give interview questions, aptitude, and written question to give exam and select
best result bring from the exam and select best working interest from the exam. Seen problem
solving ability of the company to fulfill this formality selected one.

5.4 Induction or orientation

Explain how important a thorough orientation is to retaining members. Stress that the orientation
should focus on the benefits and support that the new employees can provide them as they strive
to successfully conduct humanitarian and/or community projects. The orientation consists of how

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communicate the organization society, give instructions for how done the work successfully and
give advice and show the organization culture and so on. This induction/orientation is continuing
only three to six month.

5.5 placements
The Cooperative bank is now one of the most profitable banks in Ethiopia having a total asset value
of more than ETB 121 billion. The bank has 630+ branch networks, 10 million account holders, and more
than 11,500 employees.

And putting people into certain position who have been selected for the job. Once a letter of
employment has been given, the next stage is to place the newly recruited staff into their area of
specializations.

5.6 promotion methods

Promotion in Coop bank of Oromia is the appointment of existing members of staff to another
post or office at a higher grade than the one previously held. This may be the result of either a
successful application for an advertised vacancy, or, where appropriate, personal promotion in a
performance of organization.

5.7 compensation method

Compensation method in Coop bank of Oromia at wara jarso branch of is best for all employees
by giving of allowance, cash indemnity to increase job performance, and job satisfaction.

5.8 leadership style

Coop bank of Oromia use a operational leader uses strict rules for employee management and
decision-making. You can use operational leadership most often in administrative environments,
where strict rule-following and a defined hierarchy are important.

5.9 COOPERATIONS
In Coop bank of OromiaTeamwork and Cooperation is the ability to work cooperatively within diverse
teams, work groups and across the organization has best to achieve group and organizational goals.

5.10 Communicative method

In COOP BANK OF OROMIA HR professionals, communication is a two-way process that
involves top-down dissemination of HR plans and bottom-up questions from employees. When

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communication flows freely, employees enjoy a clear understanding of their benefits, while HR
managers take in feedback on how effectively HR programs are working.

CHAPTER SIX
CONCLUSIOON AND RECOMMENDATION
6.1. CONCLUSION

Cooperative Bank of Oromia can't wait to achieve an integral service and product planning; the
situation is serious in terms of social and economic profit. The risk is very high and demands
sooner actions. It is necessary to integrate accounting principle strategies (organizational) with
a domestic service program (small actions).

Implementation of an integral customer service system will avoid social and economic risks of
every local condition and will maximize the quality of service. Traditional bank management
strategies, focusing only on routine services are too simple in today's bank management
practice. This work can help to resolve the problems not only in CBO, even in others banks of
the area with the same situation
6.2 Recommendation for the organization
While I doing my practical attachment, I observe some issue in lens of my eyes. Therefore, I would like to
suggest on some issues that I observed during accomplish my practical attachment at CBO Wara Jarso
branch.

Firstly, the CBO should have to expand its branch around small town in order to service competition
from its competitors.

Secondly, I would like to suggest on the effort of toward promoting development of bank system study
area. Banking system is the process of treating every banking activity and is also way creating
relationship with customer. It is the development issues that recognize the involvement (participation)
of both man and woman in development process.

However, the office is lag behind in order to promote growth which is the backbone of the
development. This is due to lack of enough information in the organization which play a great role in
order to meet its objective. The organization needs to change this situation by looking for bank expert
which play a great role in order to promote banking system.

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Finally, I would like to suggest CBO Wara Jarso branch has to work properly to achieve their goals and
also to address other problems by working in cooperation with other organizations, especially non-
governmental organizations.

6.2.1 Recommendation for the university in general and department in particular on the
improvement of attachment

The department is giving orientation about the practical attachment to its students which
enable them to become pre-oriented about practical work. So, I recommend it as good &
continue such activities in the future but, it is important to identify the specific activities to
work and not to work on practical attachment.

The university should increase the duration of practical work to increase student’s
performances during attachment work environment.

The assigned budget for practical attachment is not enough because, the institutions to fulfill
such practice may not be available at countryside which many of students come from; so, to
complete this practical attachment, we stay in town/city that ask more expenditures. Because
of this, it is better if the university should provide adequate budget.

The universities should inform the institutions about apparent ship as much as possible to
decrease the effect of processes on students around practical work.

Totally, university should be develop and improve such activities in the future by fulfilling the
shortage of computers in university to facilitate learning and teaching processes and students
performance around practically working environment.

6.2.2, Recommendation for the organization

The organization should create awareness in the societies to increase its customer’s size and to
develop the habit of saving society.

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It must have to improve its customers handling systems more than what competitors do and to
get the highest public trust.

The appraisal system should be based on the appraisal standard and employee’s performance
to attract more qualified workers.

• Services excellence is useful for CBO Wara Jarso to compete with others private banks.
The bank should expand modern banking services especially, E-banking services to
customers.

• Organization should increase and improve sustainable online connection for money
mobilization.

• Finally, I The would like to suggest CBO Wara Jarso branch have to work properly to
achieve their goals that grow up by service as well as capital and to address other
problems by working in cooperation with others different sectors governmental and
non-governmental

REFERANCE
The annual report of the company by the March 31 of 2016.

The website of the organization; www.combank.et, http//www.CBO servlet/PROD/Browser

Servlet/.
The interview; information from the employers of the organization.
The daily and weekly activities.
Written documents

Information from employee

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