HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

PRACTICAL ATTACHEMENT DONE IN SIDAMA RIGION
HAWASSA CITY ADMINISTRATION REVENUE AUTORTY
DEPARTEMENT HEAD OFFICE

PREPARED BY KALEAB FEKEDE………………….…..ID 0561/12

Nov 30/2022

HARAMAYA UNIVERSITY
 ACKNOWLEDGEMEN
Primarily, I would like to say thanks for the Almighty God for his presence and help in all of
the way I passed through to perform the professional practice. A number of people put their
effort, support, and guidance to help me to development of this report and I wish to thank
them. My special thanks goes to my beloved family and my friends with out who my
successful completion of this practical attachment could have been impossible, had their
thanks for their material, financial as well as moral support. Then I like to say thanks
haramaya university college of business and economics, department of accounting and
finance for giving me a chance of this professional practice opportunity and also I would like
to give my great thanks to sidama regionhawassa city administration revenue authority's
department main branch all staff members.

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ABSTRACT

This practical attachment is conducted in sidama region hawassa cityadministration

revenue authority department main branch with the objective to student improving the
practical training experience and practically oriented graduated skill that meet the required
job and related competence of their future job and service. This practical attachment paper
contain an overview of practical attachment, objective, background of sidama region
hawassa city administration revenue authority department ,mission, SWOT analysis of the
organization’s service.

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 Content……………………………………………………………………………page

ACKNOWLEDGEMENT..............................................................................................i
ABSTRACT.....................................................................................................................ii
Chapter one....................................................................................................................1
Introduction....................................................................................................................1

1.1 Introduction..........................................................................................................1
1.2Background of the organization............................................................................1
1.3 Vision, Mission and Values of sidama regionhawassa city administration
revenue department................................................................................................................2
1.4 Governace Structure of sidamaregion hawassa city administration department
main branch............................................................................................................................3

Chapter TWO.................................................................................................................4
Work assignment description.........................................................................................4

2.1 Introduction..........................................................................................................4
2.2 Major activities I have performed........................................................................4
2.2 SWOT Analysis OfSidamaregion hawassa city administration Department.......5

Chapter THREE.............................................................................................................9
Lesson from the practical attachment............................................................................9

3.1 Things I Learned Skills I Developed...................................................................9

3.2 Major problems that I faced during practical attachment....................................9
3.3 possible solution for the afformationed problem...............................................10

CHAPTER 4.................................................................................................................11
Conclusion and Recommendations..............................................................................11

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4.1 Conclusion..........................................................................................................11
4.1 Recommendation................................................................................................11
References................................................................................................................13

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 CHAPTER ONE
INTRODUCTION

1.1 Introduction

Practical Attachment was introduced to inspire the students with practical and
technical skills, as a partial fulfillment for the award of a Certificate, Diploma or a Degree
and to introduce the students into working environment. It is a field based practical training
experience that prepares trainees for the tasks they are expected to perform on completion of
their training. The training time allows the students to link the theoretical principles learnt in
the higher learning institutions and the real life professional and technical application. It gives
the students the practical skills and the work environment philosophy, to use their skills and
principles learned in class to serve the institutions and the society in general. In accordance
with above idea, this paper is prepared to fulfill the course professional practice in
accountingand finance that enables asto show the applicability of theoretical course of
accountingand finance in the real world economic environment. And I have conducted my
professional practices in one of Ethiopian revenue and custom authority, which is called
sidama region hawassa city administration Authority's Main Branch.
In thefollowing pages you will gotdiscussionabout historical backgroundof the
organization,sidamaregion hawassa city administration Authority's department. The
reportalso include detail description of the assignment that I was handling; description of
strength and weakness of the assignment I was handling; description of the threat and
opportunities of the organization where I have done my professional practice; problem that I
have noticed concerning the work conditions in the organization; SWOT analysis as well as,
problems and suggested solutions, finallyconclusion and recommendation.

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1.2Background of the organization

sidama region hawassa city administration revenue authority department is

one branch of Ethiopia revenue and custom authoritywhich is governmental
organization.Hasiya zone revenue department is located in SNNP, in the capital city
of hadiya zone which is call Hosanna and the department deals with finance related
activity of the administration. The revenue department of the zonewas under finance
and economic development department until July 1, 1998 (E.C) and the department
was started to be managed by the organization itself sinceJuly 1, 1998(E.C). Currently
Hadiya zone revenue department office has six major operating andsupporting
departments(directorates) each with their separate function and responsibilities.
1.Revenue collection directorate
2.Tax laws enforcement directorate
3.Tax announcement communication and complaint investigation directorate
4.Information technology directorate
5.Plan monitoring directorate

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 6. Human recourse management and data statistics directorate

1.3 Vision, Mission and Values of sidama regionhawassa city administration revenue
department

Vision
To build a modern tax administration system by 2022 and to collect and use
for development all the income from the wealth generated by the economy.
Mission
The revenue department will contribute to economic development and social
welfare by developing a modern Tax and Customs Administration that employs
professional and highly skilled staff who promote voluntary compliance amongst
individuals and businesses, and take swift action against those who do not comply.
Values

 Customer centric service

 Creating work environment which is free from misbehavior
 Proper use of skill in work
 Loyalty
 Responsibility
 Respect and enforcing law
 Creating team spirit and good working relationship

1.4 Governace Structure of sidamaregion hawassa city administration department main

branch

Organizational structure is the diagrammatic representation of the organization. It

indicates the decentralization of power within the different staffs and most important part for
office to achieve its objectives and mission.

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General manager

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Office manger

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Operational
Department tax collection Tax training director Human Resource management
Director

Planning sector Four office Ten officer Two officers

Auditing section guard messenger

1, General manager the original higher administration place of the Hawassa city revenue
authority was in Hawassa city and the general manager at there. The general manager has its
own fuction that applied to see valuable organization at all level the function include the
following:-
1, Control at all branch of revenue office.
2, Arrenge meeting and discussion time.
3, Prepare enough training to staff.
4, Evaluate the work performance of subordinate.

CHAPTER TWO
WORK ASSIGNMENT DESCRIPTION

2.1 Introduction

Sidama region hawassa city administration department main branch office is

performing well organized tax collection. It improves the process of tax collection from time
to time and it’s trying to increase the level of understanding of tax payers toward fulfilling of
tax requirements to have better performance. The workers of the organization are accountable
to their customers and give good and new information for every sector. When I evaluate my
performance according to the activities that I performed and the overall suggestion and
recommendation that I get from my staff members and customer I get myself in very good
position. Generally, I have tried to perform the activities as much as possible in the
organization as members.

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2.1 Major activities that I have performed

Since this practical attachment is prepared to show how the real world
working environment relat d with theoretical skill and knowledge. I have performed
some activities in sidamaregion hawassa city administration department based on the
theoretical skill and knowledge that I have learnt inHaramaya university for three
years. During my stay I have a close relationship withall staff members and I have
been performing my duty under tax auditing staff.On the following section I am going
to list each and every points of the process step by step that I handled under tax
auditing staff during my stay.
pre-audit stage

 The first step in the process of audit is writing letter for the tax payer
to inform him/her. Acoording to the letter, the tax payer is expected to
submit different types of accounts.
 Secondly the tax payer is asked to fill out an interview about the
business who run
 The tax payer is required to submit four types of receipts: purchase
receipts, expenditure receipts, asset receipts expenditure receipts and
hand to han receipts.
 The tax payer is asked to submit monthly reports
 Finally annual financial statement is required.

Then the audit is proceeded

 Receipts will be put by their sales amount and expenses will be

recorded according to ledger.
 Sales which reported on ledger by the organization (tax payer) will be
recorded
 VAT which payed by the organization (tax payer) during purchase of
inventory will be recorded
 VAT which collected by the organization (tax payer) on receipts from
customers will be recorded
 Tax paid by the organization(tax payer) will be recorded from ledger

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  Finally tax from the organization’s trade profit and remaining vat tax
will be sent back to the organization(tax payer) on his/her address as a
audit’s decision. The account documents collected from the
organization (tax payer) also will bbe sent back to the organization.

2.2 SWOT Analysis Of Sidama region hawassa city administration Department

SWOT analysis guides us to identify the positives and negatives inside our
organization (S-W) and out of it, in the external environment (O-T).Developing a full
awareness of our situation can help with both strategic planning and decision making.
The SWOT method was originally developed for business and industry, but it is
equally useful in the work of community health and development, education, and even
personal growth. SWOT is not the only assessment technique we can use, but it is one with a
long track record of effectiveness. Compare it with other tools found in the community Tool
Box to determine if this is the right approach for our situation. The strengths of this method
are its simplicity and application to a Variety of levels of operation.
A SWOT analysis can offer helpful perspectives at any stage of an effort. We can use it
to:

 Explore possibilities for new efforts or solution to problems.

 Make decisions about the best path for our initiative. Identifying our
opportunities for success in context of threats to success can clarify
directions and choices.
 Determine where change is possible. If we are at a juncture or turning
point, an inventory of our strengths and weaknesses can reveal priorities as
well as possibilities.
 It offers a simple way of communicating about our initiative or program
and an excellent way to organize information we have gathered from
studies or surveys.
 Adjust and refine plans mid-course. A new opportunity might open wider
avenues, while a new threat could close a path that once existed.
SWOT analysis ofsidamaregion hawassa city administration department

1. Internal

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  Strengths
 Weaknesses

2. External

 Opportunities
 Threats

Internal Analysis
Strengths
Strength can be defined as an area where a company is best at doing something or a
feature that puts a company at an advantage in comparison to its competitors. Sidama region
hawassa city administration department enjoys the following strengths.

 Good communication of staff.

 Good relationship with the external environment.
 Provide clear information to customers when new methods are adopted.
 Good efficiency and ethical conduct of staffs.
 The organization gives training for its employees to improve their
profession.
 It also gives awareness to its customers that the important of paying tax on
time.
 The organization has well organized work and communication channel.
 Good relationship among staff members

Weaknesses
A weakness is defined as an area in an organization where the organization is not as
good at doing something where the organization is not as good doing something as its
competitors or a thing which an organization lacks or disadvantage in comparison to its
competitors. Based on the above definition Sidama region hawassa city administration
revenue authority department has the following weaknesses.

 Some employees failed work ethics.

 Low level of motivation between some employees.
 Sometimes there is big connection problem that make customer angry.

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  Weak information and file management of some workers.
 Weak resource mobilization performance
 Low level efficiency and effectiveness;
 Low level customer base
 Immoral reaction of employees to customer

External Analysis
Opportunities
An opportunity can be defined as a change in external environment, which if properly
exploited with the organizational strengths will result in enhanced sales, market share, or
income. Using it strengths, Sidama region hawassa city administration revenue authority
partment can avail the following opportunities to increase income from tax.

 New openingstores
 Foundation of small scale businesses
 Opening of new organizations
 Increase in production in production center
 Seasonal trade exhibitions

Threats
Threat can be defined as a change in external environment which if not met with
proper strategies will result in loss of revenues, market share, or income. In the context of
Sidamaregion hawassa city administration revenue authority department external
environment, the following potential threats exist:

 Exit of existing small scale business and enterprises from the market
 Less awareness of tax payers towards fulfillment of requirements by tax
 Contraband
 Illegal trades
 Briberies like under report, fraud of good at the time of estimation


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 CHAPTER THREE
LESSON FROM THE PRACTICAL ATTACHMENT

3.1 Things I Learned Skills I Developed

Among things I learned during the professionalpractice one is how to build positive
relationship with other employees. This is one of the best qualities that an employee should
develop so as to be effective in his/her work. I tried to sea how managers interact with their
subordinates; how employees enteract each other; how the staff members care for each other
even they are involved to solve problem with one staff member.
The other thing is time management, I learned here in university that time
management is one of the quality a personel needed to have, and I saw how my staffs manage
time and I tried to have better time managing habit.
Typing speed is part of things I improved, ofcourse I’m not bad at typing, but since I
was writing letters continuously I improved my typing speed. Not only typing speed but also
I wrote formal letter for organization and it’s first time when I write as an employee beyond
my practice during the course “writing skill”.
Also there are skills I developed during the professional practice like:- good
communication skills, teamwork,better self-confidence,better self-motivation, self and time
management, ability to influence others and to negotiate, problem-solve, network, manage
change and information,leadership (through looking for it), and ability to prioritize tasks and
plans. These are now considered requirements for employment.

3.2 Major problems that I faced during practical attachment

There was some problems which affected me on my stay on the

organization,Sidamaregion hawassa city administration revenue authority department. Some
of these problems are from the organization

 The problems are:-

 Lack of reading materials which support for report writing.
 The linkage between Haramayauniversity and the organization,
Sidamaregion hawassa city administration revenue authority department
that I conducted practical attachment is not. That is why I was being fussed
to have better direction from the organization in the beginning.

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3.3 possible solution for the afformationed problem

In order to overcome the above problems the following action should be considered:-

 The university should be actively involved in assisting students in getting

organizations where they conduct their attachment.
 It’s better if the university communicate the organization before the arrival
of the student.

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 CHAPTER 4
CONCLUSION AND RECOMMENDATIONS

4.1 Conclusion

The professional practice (the practical attachment) insures that creating strong
relation between university and employers has great advantages for students, university and
generally for the society. Many Ethiopian higher education institutions do not create
professional practice chance for their students. Rather they giveinphasison teaching
theoretical part and that creates challenge for the students in their employment after they
complete education. On the other hand many challenges and problems observed in the
organizations where the practical attachment was conducted and knowing challenges and
problems of organizations may develop problem solving skill of the students. Therefore,
conducting practical attachment is an important for students, university, employers and for
society generally.

4.1 Recommendation

Based on the findings of the practical attachment, the following are recommended for
the concerned parties:-

 The university should pay better attention for the students who engaged on
practical attachment. Indeed this may need supervision of concerned party
from the university.
 The university should facilitate a specific organization through
precommunicating with the organization. This help students to carry out
their duty with their classmates together, sharing their daily expreances.
 Budget difficulty is an other biggest issue that should be concisderd by
universities. As we know there are students who live far from cities and
they got difficulty to handle their theyto day activity moving from a long
distances. Students who have the above problem may face trouble of
transportation cost, house rent and thelikes.
 Sidamaregion hawassa city administration revenue authority department
should be more intiated and should moniter the economy to increase tax
revenue.

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 Sidamaregion hawassa city administration revenue authority department
should update the system and should use appropriate technologies so as to
overcome common problems on tax collection.
 The university should strengthen linkages with organizations where the
attachment conducted;

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References

1. Some oral information from employees

2. Direct information from the supervisor of the organization
3. Information from written documents of organization

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