MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING

 
BACHELOR OF COMMERCE ACCOUNTING HONOURS DEGREE
USHE TAFARA DENNIS, October 2017

NAME OF ORGANISATION: VINEYARD FUNERAL ASSURANCE (PVT) LTD

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REGISTRATION NUMBER: R152718E

SURNAME: USHE

FIRST NAMES: TAFARA DENNIS

PROGRAMME CODE: HACC

PROGRAMME NAME: BACHELOR OF COMMERCE HONORS DEGREE

IN ACCOUNTING

ATTACHMENT SUPERVISOR: MAHWAHWA C (Mr)

REPORT APPROVAL
This report is approved as a true document reflecting a holistic view of the nature, objectives
and the behaviour of the organization. It also identifies and highlights the activities and duties
performed and what USHE TAFARA DENNIS is expected to learn during his internship.

The student is currently studying Bachelor of Commerce Honours Degree in Accounting

at Midlands State University, during his attachment period from the month of August 2017
to date stationed at VINEYARD FUNERAL ASSURANCE PVT LTD head office in
Harare.

Approved by: Mahwahwa CC

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Supervisor’s signature: _______________________________________________

STAMP

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 TABLE OF CONTENTS
Preface 4

Acknowledgements 4

Purpose and Objectives of Work Related Learning 5

Purpose of work related learning 5

Objectives of work related learning 5

Foreword 6

Executive Summary 6

INTRODUCTION 7

CHAPTER ONE

Student Attachment and Duties Performed 8

CHAPTER TWO

Relevance of Theory to Practice 10

CHAPTER THREE

SWOT Analysis 15

CHAPTER FOUR

Student Recommendations and Suggestions 18

CONCLUSION 20

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 Preface
I would like to dedicate this work to my Mother and late Father Mr and Mrs D Ushe. The
virtues they have endowed me with from my infanthood to my adulthood have been a guide
and motivation that has made me a man of character and integrity purposed and determined
to lead a live that is a standard to which many aspire to reach.

Acknowledgements
My profound appreciation and gratitude goes to…..

The Lord Jesus Christ for the gift of life and according me the opportunities that have gotten
me this far, your Grace, Mercy, Love and Power I say thank you Yahweh you are forever
faithful.

The wonderful family in which I was born in, on top of the list being my Mother followed by
my nine brothers and sisters. I want to say thank you for the love, encouragement and support
in cash or kind, the progress I have made in my life wouldn’t have been possible without you.

The management and staff of Vineyard Funeral Assurance (Private) Limited special mention
to Mr C Mahwahwa our Finance Manager what a great mentor and father you have been,
thank you for your patience and the confidence you have put in me. The entire accounts
department staff Mrs Nduna and Mrs Masunda and the rest of the permanent members of
staff thank you for your unwavering support, faithfulness and encouragement.

My friends, Study mates and the MSU Christian Union Family. Singling out Trevor Ramanzi
my roommate and best buddy and Praise M Chombe my best friend, thank you for your love
and support you have always been there even through difficult patches of life on campus. I
love you.

Finally the Midlands State University Faculty of Commerce, especially the Accounting
Department. Thank you for the coaching and training, you have instilled in me and others the
statutes of professionalism and the accurate knowledge you teach us has given me the
greatest advantage that is needed for one to have a perfect accounting career and this
advantage is ‘competence’.

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 Purpose and Objectives of Work Related Learning

Purpose of Work Related Learning

Industrial attachment is one of the pre-requisites which every student pursuing a degree at
Midlands State University is required to undergo at a certain level of study, depending with
the duration of the course. This is aimed at introducing the student to the Reality of the
Corporate Business World. As a requirement of the faculty of commerce, the department of
accounting has set aside the whole term of level 3 for work-related learning. This helps a lot
in equipping students to become future skilled employees, entrepreneurs, directors and
business minded people which our entire world is in need of.

Objectives of Work Related Learning

 To train students on how to put the theoretical knowledge they acquire from the
University into the practical hands-on knowledge of what is required by the business
world.
 To enhance employment opportunities for students from the experience gained and
provide the students with practical knowledge and experience making them more
attractive candidates for future employment opportunities.
 To give students an opportunity to gain confidence in what they are studying through
their exposure to the real business world.
 To provide opportunities for MSU to establish strong links with industry so as to gain
feedback on the relevance of its courses and the performance of its students.
 To give organisations a feel of the capabilities of the students and for them to mould
students into competent Business professionals.

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 Foreword

This report was prepared in partial fulfilment of the Bachelor of Commerce Accounting
Honours Degree currently being pursued at Midlands State University. The report is based on
my work-related learning in the Accounts Department at Vineyard Funeral Assurance PVT
LTD starting from August 1st 2017 to present date. This report is focused on giving an
account of the company’s brief description and background, and it is finalised by a
conclusion. Data was gathered through carrying out specific tasks, literature review, sharing
ideas, participatory observation and interviews.

Executive Summary

This is the first report prepared in partial fulfilment of the Bachelor of Commerce Accounting
Honours Degree in accordance to the requirements of the Faculty of Commerce at Midlands
State University. The purpose of this report is to provide an overview of the operations of
Vineyard Funeral Assurance (Private) Limited. The purpose of industrial attachment is to
equip students with hands on experience so that they will not encounter challenges when they
apply theory into practice upon completion of their degrees. This will also enable them to
qualify to form part of the workforce that will benefit the Industry and the nation at large by
grooming students into an efficient, effective and productive workforce. The report is
therefore regarded as a measure or standard upon which theory is put into practice by
undergraduate students and reveals the importance thereof.

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 INTRODUCTION

This report is a build-up on the preliminary report which dealt mainly with outlining details
about the organisation analysing and evaluating its activities. This report now concentrates on
the student attachment duties performed, relevance of theory to practice and skill
development, expectations, challenges and experience gained. It also presents a
representation on SWOT analysis of the company and concluding with an exploration of
recommendations.

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 CHAPTER ONE

Student Attachment and Duties Performed

This chapter expounds on the duties executed by the student in the department he has been
stationed. This review is necessary in appreciating the relevance of what has been learnt at
the university to practical operations.

Working Schedule

Ordinary official working hours for vineyard funeral assurance are: Mondays to Fridays from
08:00Hrs to 17:00Hrs. Due to the volume of work and other work pressures, the student may
be required to stay until late hours during weekdays or to come for work during weekends so
as to stay up to date and avoid backlogs of work.

Assignment Area

The student is assigned to work in the accounts department alongside the bookkeeper
reporting the Finance Manager.

Duties performed during the attachment period:

 Regular Activities

These are routine activities which the student has been doing on day to day basis. The
activities include:

 Daily Cash disbursements.

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  Processing in quickbooks premium receipts and reconciling cash receipts bank

accounts

 Processing in quickbooks premium receipts for branches and administration and

marketing expenses.

 Reconciliation of Branch Control Accounts

 Office supply, stationery and asset procurements.

 Maintaining properly filed records

 Doing ecocash payments for claims, premium refunds and other daily expenditures,

recording, processing and reconciling the account.

Other Activities

 Maintaining an accounts receivable payments schedule

 Attending departmental meeting as they are called for

 Banking cheques

 Processing Invoices and creating Bills for intercompany sales between the assurance

and services division

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 CHAPTER TWO

Relevance of Theory to Practise

The work-related learning year is done largely to help the student apply, practically, the
knowledge obtained from the theoretical courses. This chapter seeks to demonstrate how
some of the course learnt in the first two years relates to a practical business environment and
its effect to the personal development of the student. The writer brings to light how all he
learnt while at school applies to the real-life business environment. The writer puts each of
the courses she learnt at school and their relevance to the business world under separate
headings for ease of identification and comprehension.

 BUSINESS COMMUNICATION

From this course, the writer attained knowledge in how communication is of paramount
importance in a business organisation. He also had the privilege of being acquainted with the
theoretical aspects of communicating within an organisation through this course. Of key note
are the different channels used in the communication process which can be a report, spoken
word, a memorandum, telephone, letter, email or other numerous channels depending on the
type of message to be sent and to whom is it being sent.

The writer applied the knowledge of communication channels to get and give information
from and to workmates on a daily basis. He was tasked to work with branch controllers and
receptionists in reviewing monthly branch reports during the work-related learning period.
Knowledge of verbal and non-verbal communication helped a lot in understanding different
workmates and their differences so as to manage to work together as a team to produce
expected results.

The knowledge of communicating during meetings also applied when the student had several
departmental meetings. This is important as it allows one to clearly articulate progress being

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made on assigned tasks and also highlighting on challenges the student could be facing that
could possibly hinder one in meeting deadlines.

The ability to write formerly was also enriched when the writer had to write emails to
management to communicate certain information that was needed in writing. Furthermore
Guffey and Loewy (2010) said that understanding messages often involves more than merely
listening to spoken words. Non-verbal cues can often speak more than words. These cues
include eye contact, facial expression, space, body movements, time, territory and
appearance. The writer applied this knowledge in maintaining a professional look in his
dressing when on the job or when going to make presentations.

 ENTREPRENUERSHIP

The writer had the opportunity to see how some concepts from this course can be applied in
real life situations. This was achieved when the student was researching on how the company
started and how it has grown to be what it is today. The writer discovered how important
innovativeness is as a skill to an entrepreneur as this is what made Vineyard Funeral
Assurance to be able to penetrate an industry with giants with many years of experience. In
studying the product and services offered by the organisation the writer learnt the importance
of identifying nitche markets to an entrepreneur as this is crucial to emerging organisations as
it avoids direct competition with already established companies.

 ACCOUNTING SYSTEMS IN A COMPUTER ENVIRONMENT AND

PRACTICAL ACCOUNTING DATA PROCESSING

These courses proved vital to the success of the writer in the working environment.
Information Processing gave the writer a background of what role information technology
plays in an organisation as well as knowledge of such things as databases, area networks, the
Internet and a practical introduction into Microsoft Office tools such as Excel and
QuickBooks. QuickBooks exports data to Excel where it can be manipulated to produce
desired financial reports.

Microsoft Excel was largely part of the daily assignments the writer would get. The greater
part of the work was done using the Microsoft Excel especially in analysing financial

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information and all other calculation schedules that required a lot of formulae like
reconciliation workings and other schedules as may be requested by the finance manager.

Appreciation of the course on Pastel at school proved worthwhile as this package is similar to
QuickBooks used for capturing and preparation of financial records and reports. In addition
to the basic uses of QuickBooks the writer had an opportunity to learn further how to extract
information and reports from the QuickBooks for purposes of preparing customised reports
for various partners whose reporting formats differ, in some cases, significantly from the
standard financial reports.

The writer used Microsoft Word to write internal letters and also to write this report. Over
and above what was learnt at school, the writer also got a great understanding of preparing a
presentation using the Microsoft Power Point office tool that is most suitable when presenting
with the aid of a projector.

QuickBooks navigation menu below

 PRINCIPLES OF MANAGEMENT

The writer had the opportunity of experiencing first-hand the main functions of management
controlling, planning, organising, leading and through interacting with his supervisor and
other superiors, the writer witnessed how these functions are used to manage personnel in the
organisation.

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As an intern under supervision with knowledge of the roles of a manager seeking direction
and getting tasks and assignments from his supervisor came with so much ease because the
the student understood his place as a subordinate. The students had an opportunity to put all
that was learnt under Management in a real-life as he dealt with branches from a superior
position as it was delegated to him. The student was initially apprehensive exercising his
delegated authority and As a consequence, in the early stages, those put under him did not
take his words and corrections seriously. Fortunately, he mastered the art with the help of his
supervisor who encouraged him to be confident and bold so as to stand his ground.

 ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES AND

ACCOUNTING REPORTING

The courses of Accounting concepts, Principles and Procedures and Accounting Reporting
undertaken during the first and second academic years of the writer were of the greatest
benefit to the writer’s success in the real world setting of accountings. The writer, through her
working in the Accounts Department, particularly at Financial Accounting, saw the
application of many of the concepts learnt at school even though most of the work assigned to
him was clerical work, there was still part application of the concepts learnt in these modules.

The fundamental as well as the enhancing qualitative characteristics of the financial

statements was also put to practice in all the assignments since all reports were to be prepared
showing relevance and faithful representation as stated in the framework. The student also
ensured that the financial information was submitted timeously and presented in an
understandable way according to the IASs.

 AUDITING

The writer worked on preparation for the annual external audit and assisted in the preparation
for of the audit file. Though the student was not exposed directly to entire process of the
external audit he learnt by observation and conversations with the supervisor and other work
mates. The audit module learnt at the university was an eye opener and very useful on
executing the audit tasks which the writer had to prepare for.

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The student though not a certified auditor, for the purposes of upholding professionalism
always strived to maintain a great level of integrity, objectivity, professional competence and
due care, confidentiality and professional behaviour in relating with other employees,
execution of daily duties and also in dealing with external stakeholders of the organisation.

 TAXATION

The writer had an opportunity to broaden his understanding in the calculation of Value Added
Tax (VAT) for taxable supplies that the company deals in. Though all policy premiums are
exempt from tax and also services offered to policy holders, services offered to non-policy
holders are taxable supplies which implies that a 15% VAT has to be charged per every
service provided to such. Moreover the VAT returns have to be submitted before the 15 th of
every month.

The student also learnt by observation the calculation of PAYE and Corporate taxes. And
realised the importance of meeting the statutory deadlines for payment of taxes so as to avoid
the harsh and exuberant penalties stipulated by ZIMRA for missing deadlines. It is also very
important to provide the tax authority with true and faithfully presented figures. The use of
fiscal devices can lead to variations in the amount of revenue submitted to ZIMRA through
them and the one we pay tax for, this can call for ZIMRA to take action against the
organisation if it suspects fraudulent activity.

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 CHAPTER THREE

SWOT Analysis

Organizations operate in environments that influence their direction and performance. The
environment in which Vineyard Funeral Assurance operates was analysed using the strengths,
weaknesses, opportunities, threats (SWOT) and political, economic, ecological, social,
technological and legal (PEESTL) models. This exercise enabled the identification of key
strategic issues that a business has to pursue in a given plan period.

The following are the results of the analysis

STRENGTH WEAKNESSES
 Fair market share  Emerging brand
 Fair presence around the country  Inadequate/under capitalisation
 Diverse Funeral Assurance packages  Continued loss making
 Affordable policies  Cash flow challenges
 Aggressive approach to visibility  Poor marketing/Ineffective marketing
 Experienced personnel  Lack of adequate hearses at branches
 Innovative products  Lack of experienced staff at branches
 Website address and active as well as  Inadequate resources
the social platform  Weak brand visibility / Branches not
 Quick turnaround time visible
 Good branch network  Lack of adequate branches
 Experienced sales team  Lack of adequate mourners transport
 Competitive prices  Hesitancy in implementing strategy
 Hardworking staff
 Well branded vehicles
 Good control systems
 Experienced management
 Good staff morale
 Use of modern technology
 Quick decision making
 Flat structure
 Excellent undertakers services
 Mortuary

OPPORTUNITIES
 Introduce policies for the informal sector
which is growing
 Technology utilization
 Regional expansion to South Africa
 Introducing environmentally friendly
products
 Too many gaps in the market
 Emergence of micro insurance
 Market our products to professional
bodies
THREATS
 Lack of own properties
 Negative economic environment
 Increased competition
 Insufficient capitalization
 Uncertain political environment
 Liquidity crunch
 Technology management
 Lack of adequate hearses at branches
 Low disposable incomes
 Job losses in formal employment

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  Significant number of uninsured people
 Corporate social responsibility target in
the environment
 10/15 years policy terms
 Branch mortuaries
 Provision of new products and services
– examples include short term, legal
insurance and cash back plans
 Increasing market share
 Well known in the market
 Diaspora market
 Creation of new industries
 Cash back plans
 Introduce legal Aid Policies and or enter
into Partnership with legal aid societies
 Mortuaries at branches
 Technology advancement

Management key strategic focus areas after above analysis

Subsequent to the thorough evaluation and assessment of the situation as deduced from the
SWOT and PEESTL analysis, strategic themes that need to be followed to achieve its vision
and mission are summarised below:

1) Market Development and Management

A comprehensive marketing plan will need to be put in place aimed at increasing Vineyard
Funeral Assurance market share from the current 3 %. This will address among others;
opening Diaspora markets, brand visibility (premises & staff, staff road shows), advertising,
service delivery improvement, increasing branch network, increasing number of sales agents
and establishing partnerships with financial institutions.

2) Systems Development

Strategies will be implemented to increase service efficiencies. These will include; reviewing
the funeral policy administration system, implementing online payment system,
telemarketing, provision of adequate buses, hearses, tents, mortuaries at all branches, review
transport policy, develop & implement Corporate Social Responsibility (CSR) and
procurement policy.

3) Human Resources and Governance

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The overall strategic goal is to attract, retain and enhance staff productivity. Strategies to be
implemented over the plan period include; a comprehensive review of the human resources
policy to include implementing a performance management system, conducting employee
satisfaction surveys and responding to survey issues. A training plan will be put in place
based on a needs assessment exercise. An organisational restructuring exercise might be
necessary to ensure the structure is fit for purpose and is in line with organisation strategy.

Corporate governance system will be strengthened through; adoption of the IPEC governance
framework, formulation and implementation of a risk management policy and alignment of
IPEC Solvency II on corporate governance.

4) Finance

The focus will be on mobilising resources to ensure there is sufficient working capital,
minimum capital requirements are met and creating shareholder wealth through profitability
delivery. Resources will also need to be mobilised through shareholder injection, loan/lease
finance, credit finance and internal resource mobilisation. Additional strategies will include;
implementing cost control measures (reviewing cost structures, doing away with the middle
man and strengthening the internal control system). To assess value for money invested, an
annual dollar return evaluation will be conducted.

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Student Recommendations and Suggestions

 To Vineyard Funeral Assurance (Pvt) Ltd

Vineyard will need to adopt the cost leadership generic strategy in pursuit of its vision. In this
connection, it will vigorously analyse its cost structures, to inform cost management. Cost
leadership will give them a comparative advantage in the market. To this extent all in the
organisation should strive to minimise service cost. The savings accrued will be invested in
customer service improvement to further strengthen competitiveness.

The following identified obstacles to vision delivery require management attention

 Lack of innovation
 Lack of adequate buses for service delivery
 Liquidity crunch
 Failure to grow financial base
 Failure to satisfy capital requirements/Inadequate capitalisation even though
according to the IPEC report the industry is still to satisfy the requirement which
continue to be raised beyond regional trends and levels
 Inadequate resources for branches
 Poor/inadequate product marketing
 Weak corporate governance
 Lack of shared purpose

Vineyard Funeral Assurance has to achieve the following, if it is to deliver on its mission and
vision.

 Market development through the formulation and implementation of a marketing plan

 Service delivery capacity improvement through provision of adequate resources
including buses to branches
 Resource mobilise to meet capital requirements
 Adherence to good corporate governance principles
 Achieve profitability despite the challenging environment

One certain observation is Vineyard Funeral Assurance is a force to recon with and will rank
among the top three soon, if the above is implemented. Implementation is a management
responsibility with Board exercising an oversight role. Implementation requires that all
departments, support structures, and employees are aligned to the strategy through a
performance management system. Then continuous monitoring, evaluation and control is

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necessary. This process will ensure corporate activities and performance results are
monitored and actual performance compared with desired performance.

 To Midlands State University

It is the student’s observation as well as other students have noted that, programmes
developed by the company will not specifically meet the expectations of the university for
attached students. There is a greater probability that if companies draw up the learning
programs on their own, they will tend to focus on their own interests regardless of the
student. Hence my recommendation for this consultative annual conference where the college
would consult the industry in order to come up with relevant course contents that will equip
students to fit well in the industry and college guide industry on their expectations.

Work related learning is a justifiable cause to the student as it provides insight into the real
work situation. However, there is need for the institution (university) to go an extra mile in
assisting students find attachment placements. That letter from the institution is insufficient.
Attachment placements are very difficult to come by, to the extent that even voluntary work
is not accessible.

There is serious need for the university to keep on reviewing syllabus content of the courses
that we do so as to keep up with the ever-changing requirements of employers. For example
adding more accounting packages such as Quickbooks and not concentrate only on Sage
Pastel.

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 CONCLUSION

This internship has been an excellent and rewarding experience. I can conclude that there has
been a lot learnt from my work at Vineyard Funeral Assurance. Needless to say, the technical
aspects of the work have done are not flawless and could be improved provided enough time.
As someone with no prior experience with whatsoever I believe my time spent in this
organization has groomed me to competent employee who can be employed and be able to
deliver what is expected of him. Two main things that I have learned are the importance of
time management skills and the need for self-motivation. I am very grateful and appreciative
to Vineyard funeral assurance for the opportunity to work as an intern enabling me to learn
work based skills and to cope with work pressure. The industrial attachment was a useful
experience to my career.

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