COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT of Economics

FINAL INTERNSHIP REPORT

FINANCE NAME :- FAGITA LEKOMA WEREDA FINANCE AND ECONOMIC OFFICE

INTERNSHIP PRACTICE ON :- ASESSMENT OF PAYROLL DEPARTMENT

PREPARED BY :-ID NO :- 0367

PERIOD OF INTERNSHIP :- JULY 10 TO AUGUST 09/2022 G.C

FINANCE SUPERVISOR :- MR. BIRHANU TIRUNEH

ACADAMIC SUPERVISOR :- Silesh Bogale

Prepaid by Gizachew workineh

JULY 10 2022 G.C

 werabe ,ETHIOPI

TABLE OF CONTENT PAGE

Acknowledment ----------------------------------------------------------------------------------i
Excutive summery-----------------------------------------------------------------------------------ii
Chapter: one introduction ------------------------------------------------------------------------1
1.1 overveiw of this organization --------------------------------------------------------------1
1.1.1 back ground of the organization --------------------------------------------------1
1.2 mission and vision of this organization --------------------------------------------------2
1.2.1 mission of the organization ------------------------------------------------------------2
1.2.2 vision of the organization-----------------------------------------------------------------2
1.3 core values of this organization ------------------------------------------------------------2
1.4 organizational structure -------------------------------------------------------------------------3
1.5 operation of the organization -----------------------------------------------------------------4
1.6 accounting and finance function of this organization ---------------------------------5
1.7 location and nature of the organization -------------------------------------------------6
1.8 purpose of the report ------------------------------------------------------------------------7
1.9 scope of the internship ---------------------------------------------------------------------8
chapter two : body of the report ---------------------------------------------------------------9
2.1 accounting and finance activity of this organization --------------------------------9
2.2 daily activities I performed in this organization ------------------------------------------11
2.3 meaning of payroll -------------------------------------------------------------------------------12
2.4 my position during internship period -------------------------------------------------------14
2.5 core competencies I acquired ---------------------------------------------------------------15
2.6 my observation in this organization --------------------------------------------------------15
2.6.1 strength and weakness of the organization -----------------------------------------15
2.6.2 accounting and finance related problems/ challenges -------------------------------15-
2.6.3 gaps between theory and practice ----------------------------------------------------------- 16
2.7 lessons I learned in internship --------------------------------------------------------------- 17
CHAPTER THREE RECOMMENDATION AND CONCLUSION----------------------------19
 i

ACKNOWLEDMENT

First of all I wouid like to thank the almignty God for all the blessing he has given to me.next,I
would like to recognize injibara university for its provision of this curriculum.

I also want to express my deepest gratitude finance manager mr.Birhanu Tiruneh and for his
great support and guidance throughout the program.I would also like acknowledge finance group
leader mr.Minale Guade for his support. Last but not list I want to thank my families specially
my brother mr.Getnetl Debasu and friends who helped me in every single time being on my side.
Finally I would like to express my gratitude to all the finance workers and for peoples helping
me at my stay and for their help for writing and preparation of final report.

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 EXCUTIVE SUMMERY

It is aclear fact that the knowledge accounting and finance can not be up greaded without
practical experience in each field of the subject matter. This paper is awritten report about the
internship program which was pland to help accounting and finance students grasp practical
know how of accounting project ,their design, implementation, evalution and management in
general.

This is areport on the internship program that lasted for one month from July 10 to August 10
/2022 G.C. I have been learnig the vital roles of accounting and finance . I was abel to see and
supervise how the accounting system work in different activities.so, I have developed my
theoretical knowledge and practical skills.

This report discusses my over all internship experience that lasted for one month it has three
main portions. The first part discusses the finance brif history, organization and work flow and
current status and affaires of the finance. The second section talks about over all activities during
my internship period and over all benefits I gaind from the internship program. Idiscussed these
benefities in to aspects of what I gaind including improving my practical skills of the whole
internship experience and indicate some improvements that I believe can make it easy for this
program to meet its objective.

In short it explains the experiences I have gaind during my one month stay and I have tride to
discuss them with much relation to what I have learnt in the classroom for the last three years.
the third section focuses recommendation and conciusion.

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 CHAPTER ONE :- INTRODUCTION

Accounting and finance is the profession in which knowledge of social science. Gaind by
experience and practice ,which applied the efficient use of nature. Human life is not far from
different types of problems. These problems must be by scientific way accounting among the
solution of this problems. These problems are solved by both practically and theoretically.the
new curriculum of Ethiopia for accounting and finance students are developed to include
sufficient practical knowledge with theoretical knowledge.due to this the ministry of education
programmed a one month internship program for accounting and finance students.

Based on the new curriculum,I was doing internship for one month at payroll preparation in
adiss kidam. This internship programe is given for all 4th year accounting students. It is pland
based on the benefit whichit given for both the students and their organization.for students, they
have the opportunity to gain practical skill, they may have achance tobe employed after
graduation,and they may become familiar for words which are used in practical work,to develop
any interpersonal communication skill.for organization,they have an opportunity to obtain well
skilled persons. They get an opportunity to advertise their services and they get benefit
comments for the future.

1.1 overveiw of the organization

1.1.1 back ground of fagita lekoma wereda finance and economy office

fagita lekoma wereda finance and economy is one of the finance which have served its own
services to customer in adiss kidam town. This finance is found in adiss kidam town.and it was
established in 1987 E.C,when the town is establisheds simmentanesilly . when the finance was
established it consistes around 2 teamssuch as finance teams,and audit teamsAt that time the
organization starts the work with 40 employeewhich perform different

1
activities with in organization.starting from 1987 E.C the finance have started to accept
customers in the above 2 teams and start delivering the service in each teams.

In 2010 E.C the number of teamshave been raised to four teamsby adding two teams Which are,
budgeting teamsand purchaser teams. Now aday in the organization each distinctteams,which
have their own staffs which accept the customer as the customer interest and the organization
now have 60 employers who performs different activities with in the organization and the
organization now have four teams such as, finance tesms, auditing teams, budgeting
teams,purchaser teams.

1.2 mission and vision of this organization

1.2.1 mission of this organization

It creates polices and strategies which related with progression, gather daynamic information and
interprate it. Beside that strengthen foreign relation asset . then administer and fix
comprehensive strategy; in wereda level, economical and community growth be successful and
over look application.

1.2.2 vision of the organization

In 2022 see and overview induce dynamic ; development, strategy,and economical

administration those are base for the woreda.

1.3 core values of this organization

the main value of this organization is controle, manage, conserve, or protect of governments
captal. And also additionally have different values such as ;

1. trusthworthy opration ; winning trust of our esteemed customers.

2. Customer satisfaction; making customer satisfaction one of our key success indicator.
3. Ethical opration ; mantainig business oprations which are in compliance with the
principle of business ethics.
 4. Employ development ; establishing and mantaing an environment and situation in which
employees can grow in their career and economy.
5. Efficiency ; optimizing our work processes in such away to reduce unnecessary.
6. Customer oriented; commitment to the achievement of customer satisfaction at all service
points.
7. Quality service ;the provision the profession and eccellent service via the efficient and
effective use of the resourse.so, those are important core values of this organization.
1.4 organizational structure

structure of fagita lekoma wereda finance and economy chart shows how accounting and finance
personnel fit with this organization . the personnel at the bottom of the chart report to those
above them or at the top of the chart are those who control the organization.

Generally structure of fagita lekoma wereda finance and economy chart is as follow:-

Finance office / mr. Birhanu Tiruneh

Budget team audit team finance team purcharser team

Budget writer govn,t co-op writer audit adept finance adept writer money purchaser writer capital

adept adep collector adept officer

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1.5 opration of this organitation

Operation means ;- lead, manage, and direct all financial affairs of the organization today and in
the future; this includes financial planning, forcasting, and budgeting, auditing, regulatory firms
and compliance, financial operation including billing system, account payable, account
receivable and timely close of financial reporting each month. It also insure the integrity and
compliance of all financial and regulation reports, controles, systems, policies, and procedures.

The four group leaders of this organization;- leader of budget group mr. Slesh Bogale ,leader of
audit group mr.Asaye Fentie, leader of finance mr.Mnale Guadie, leader of purchaser group
mr.Yihune Asaye, the compliance with ;-

 Be working in the way of faithfulness .

 Be have done work lover and be wise.
 Strengthen democratical work culture .
 Understood and checkout in the practical and consider customer as aking.
 Spread out the intention of public obedience.
 Strengthen co operation and help each other work culture.
 Given attention and done in practice that implement in seasonable new
guidline ,customer, work strategy and proclamation.

So,generally all those groups (departments) are lead or operate by the head office(manager)
mr.Birhanu Tiruneh.

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 1.6 Accounting and finance function of this organization

The accounting and finance department is at the center of any organization and is responsible for
ensuring the efficient financial management and financial controls necessary to support all
business activities.

The accounting department is responsible for identifying, tracking, and recording all cash
received from sales and other source in the organization.

There are some functions of accounting and finance of an organization:-

1. Treasury managements ፡- accounting and finance department set up treasury management

policies to be adopted by all who come in contact with cash and cash equivalent include in the
treasury management are things like the level of risk that can be assumed by the firm at any
point in time .the treasury functions are usually managed assistance finance manager while the
finance manager or the chief finance officer handles the financial accounting aspects.
Accounting and finance department focus in the day to day financial activities (inflow out flow
of money in the organization.
It also deals with the process of all accounting information. It records accounting payable and
receivable, fixed assets, payroll, inventory, and other accounting elements.
2. billing and credit control ፡- accounting and finance department is saddled with the
responsibility of ensuring that customer pay their correct bill on time.
3. Investment appraisal :- through the application of capital budgeting technique and investment
appraisal technique, accounting and finance department helps businesses pass every major
project through furnace to ensure that it will be worthwhile.
4. Preparation of financial statement ፡- even though it is legally the responsibilities of directors
organization to prepare the financial statement, the finance and accounting department is always
called up on to prepare the financial statement.
5. Safeguarding assets through internal control :- accountants and finance professionals play
vital role in helping to protect the asset of organization.
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6. Auditing finance :- accountants may conduct financial audits of the organization, identify
accounting discrepancies and implement corrective solution.
7. Making financial projections ፡- accounting involves analyzing the organizations available
financial resource, expected revenues and business goals and using this information to predict
future business expansion and growth.
8. Assessing financial resources :- organization can use accounting to identify the financial
weakness and strength of the organization.
9. Preparing budgets ፡- the accounts department may reference the organizations financial data to
prepare the overall organization budget, the department budget and the projection budget.
10.Paying employee salary :- organization can use accounting to make payroll payments from
organization funds, manage employee benefits, and issue employee work related bonuses.
 Generally no organization can operate profitably without an accounting team.it is the life
blood and center any organization.

1.7 location and nature of this organization

The location of this organization is in amhara reginal state awi zone fagita lekoma wereda.

In addition to this it is found aplace where in the northern direction 2km inside from amhara
saving and credit interprise ,from in the southern direction 1.25km inside from police station, in
the eastern direction 1.5km inside from car road and in the western direction 2.5 inside from the
market.

Nature of this organization :- when we see the natural land scape position there is nothing hill
and hindered and which is widen level that is suitable for agriculture work and also very
interesting plants and animals exist around there beside that it is comfortable for people.

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 1.8 purpose of the report

 Internships are formal programs with organizations whose primary purpose is to offer
practical work experience in aparticular occupation . an internship can provide unique
opportunities.
 An internship can provide unique opportunities for learning outside of academic settings.
It can expose you to tasks and help you learn goal specific skills, internship also give you
experience with technology, people and project that may related to your career goals.
 An organization may decide to create implement an internship program to help them
identify future employees or expand their talent management strategies.
 Here are some advantage of internships for students :-
 Job experience ፡- job listing often describe requirements such as education and
minimum job experience. If you are entering the work force for the first time after
college or allocational training program, you likely do not yet have the required
experience. An internship a perfect way to fill that gap.
 Research experience :- in scientific fields, for example an internship might
consists of assisting with research in a lab. You can test the research skills you
learned in your college courses in a practical setting and meaningfully contribute to
the important research the lab does. Some permanent research jobs require this kind
of post education training.
 Accept a variety of tasks and departments :- while some internships , like lab
research, might assign you to a specific task every day, other officers might enable
exposure to people in various departments and jobs. you may help senior
management, sit in on meeting, complete small tasks for project or observe the daily
function of the office.
 Create a professional network:- the most successful job searching usually comes
from meeting other in your fields who can recommended you for open position.
Internship is a practical way to expand your job network.
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  Secure good reference and recommendation:- the supervisor and mentor you
meet during your internship can be available reference for you as you pursue a full
time job. The more positive and hardworking you are, the more likely managers are
willing to recommended you for open position.
 Build confidence:- the transition college to full time employment can fill you with
excitement, anxiety, hop and ambition all at once. An internship is a good way to
fill some transition time with the work you hop to do long term. It can eliminate
some pressure of quickly finding apermanent job and help you aply the skills and
knowledge you have acquired to a practical situation.

1.9 Scope of the internship

The scope internship is to indicate the type of activities in which the intern will likely be engage.
It is not meant to limit or constrain the interns opportunities and the employer is encouraged to
provide a breadth of experience for the intern. .

The scope of internship:-

 In respect of geography:- an internship enables you to gain first hand exposure of working
in the real world. It also allows students to harness the skill, knowledge, and theoretical
practice learnt in university.
 In respect of contentes:- an internship report includes relevant details about our intern
experience, such as a description of your position with the organization, the tasks you
complete and the skills you learned. so, there are some internship table contents are :-
 Prepare a title page
 Write table of contents
 Include an acknowledgment section
 Provide organization back ground information
 Discuss the skills you learn and the experience
 Write the conclusion, mentioning various ongoing consideration
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  In respect of time :- an internship are a job training programs that are usually completed in
10 to 12 weeks, or the duration of an academic semester, some internship last 3—4
months, some are also 1—3 months. So , the time of internship really depend on the job.

CHAPTER TWO :- BODY OF THE REPORT

2.1. Accounting and finance activities of this organization

Accounting and finance activities:- are activities that organization under taken to help achieve
their economic goals and objectives. They include events and transactions that affect a business
equity and liabilities. Anything to do with the movement of money, i.e cash inflows and
outflows, is accounting activities. So, accounting and finance activities are performed by four
departmentes of this organization:-

A. Budget group:- budget play arole in all types of organizations.organizations can be non
profit organization, for profit business, or government agencies.each of these
organizations relies on the reliabilitity, the numbers reported in the budgeties. Non profits
need to know the amount of money they expecte to receive in order to fund their
mission.for profit business owners want to know the amount of profit the expecte to earn.
Government agencies want to know if there will be asurplus or deficit. So this
organization is government agency.activities of budget group in this organization are:-
 Realse of funds
 Disbursement
 Recording of transaction
 Operation of budget control
 Monitoring of implemention (including any necessary remedialactio and
system to play wages, manag contracts. 9
 
 Measure performance
 Supervise programs e.t.c are activities of budget group.
B. Purchasing group ፡- purchasing means the process of buying or aquiring goods and
services to make supply chain management mere efficient. Goods, materials, and
equipments procured in this process play akey role in improving.

The quality of product or service produced by the organization .ultimatly, the purchasing process
impacts the product quality and helps in optimizing cost in the value chain. Key activities of the
purchasing group are:-

 Identifing business requirments for goods, materials, and servies.

 Find reliable suppliers to meet hese riquirments
 Negotioate prices, build qualites, and delivery terms
 Set up the order quantities and meaking bid requeston supply contracts.
 Coordinate dilivery and storage operation.
 Run quality control and product testing.
 Manage budgets based on rols and payments.
C. Finance group ፡-an accountants is aprofessional who is responsible for keeping and
interpreting financial records. Most accountants are responcible for wide range of finance
related tasks, either for individual clients or for larger business and organizations
employing them.

The main activities of financial group are :-

 Makes sure an organization is efficiently operating by accessing their financial records.

 Defining the accounting cycle with steps :-
 Financial transaction
 Journal entries
 Posting to ledger
 Trial balance period 10
  Reporting period with financial reporting and auditing
 Preparing and maintaining important financial reports.
 Preparing tax return and ensuring ensuring that taxs are paid properly or on
time.
 Evaluting financial operations to recommend best practies, identify issues
and strategze solutions,and help organizations run efficiently.
D. Auditing department :- auditing is the examination or inspection of varous books of
accounts by an auditor followed by physical checking of inventory to make sure that all
departments are following documented system of the recording transactions. It is done to
ascertain the accuracy of financial statements provided by the organization. Auditing is
defined as the on sit verification activity, such as inspection and examination, of aprocess
or qualification system, to insure compliance to requirmentes.

The main activities auditing are:-

 Traning on fraud preventetion, internal controls, and risk assessment process.

 Scribing client facilitated riskassessment exerises.
 Reviewing all external financial, bond specific, and other audit conduct on the regents
office and any part of its institution and regent associated regional study centers.
 Reviewing thw annual auduit plans proposed by the boarders internal audit director.

2.2 .Daily activities I performed in this organization

In this organization the activity tha I perform, understood and I know critical what does mean
payroll and how payroll worked by excel and how pay it for the customers.

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 2.3 PAYROLL

Payroll means the process of paying an organizations. employees, which includes tracking hours
worked, calculating employees pay, and distributing payments via direct deposit to employee

bank accounts or by check. However, organization must also perform accounting functions to
record payroll, taxes withheld, bones, overtime pay, sick time, and vacation pay. organization
must put aside and record the amount to be paid to the government for social security, medicare,
and unemployment taxes. Payroll is a compensation an organization must pay to its employees
for a set period and on a given date. Payroll can differ from one pay period to another because of
overtime, sick pay, and other variables.

Payment of tax deductions

Amount of salary % deduction

0__600 __ tax free
601__1650 10% 60
1651__3200 15% 142.5
3201__5250 20% 302.5
5251__7800 25% 565
7801__10900 30% 955
Above10900 35% 1500
july month in 2014
 salary payment of ten
employees

basic worked allwanc gross pention other tax sum net pay
salary hour/week e pay con pmt payment ofdedu
11% 18%
8017 30 882 8899 1443.0 1450.1 2893.1 6006
6 _ 6
8000 30 880 8880 1440 200 1445 3085 5795
7568 30 832.48 8400.48 1362.2 125 1327 2814.2 5586.24
4 4
8025 30 882.75 8907.75 1444.5 1452.5 2897 6010.75
_
8030 30 883.3 8913.3 1445.4 300 1454 3199.4 5713.9
7812 30 859.32 8671.32 1406.1 150 1388 2944.1 5727.16
6 6
7490 30 824 8314 1348.2 1307.5 2655.7 5658
_
8500 30 935 9435 1530 350 1595 3475 5960
8032 30 883.52 8915.52 1445.7 100 1454.6 3000.3 5915.16
6 6
8413 30 925.43 9338.43 1514.3 250 1568.9 3333.2 6005.19
4 4

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 2.4 My position during the internship period

The manager that give for me as responsibility such as : customers those are either stranger or
existing, I perform or order what they wants and needs in the right way beside that examine

those customers the inflow or outflow of them, then create the awareness for the new customers
that is where the four teamsincluding: auditing team,budgeting team,finance team,, and
purchasing team are founding and ordering them in the way of ethically.

2.5 core competencies I acquired in respect to accounting and finance

 in my field attachment, I found out that practical skills cannot be acquired just reading text
books and attending lectures only but one needs field attachment to skill, knowledge and
experience real life of work such as bank statement reconciliation skill, filling, recording,
printing, and photocopying computer skills like running different computer software
application. Example:-
preparation of payroll by using Microsoft excel.
 I gain the technical skill and attribute that help professional succeed. In accounting jobs
and remain valuable to my business. this competencies can help am complete my job
responsibilities efficiently while maintaining accuracy, evaluate financial operations,
understand and interpret financial information correctly to complete the aforementioned
task.
 I gain or learn how to introduce myself, talk about my interest, knowledge and skills with
enterpreneurs and business owners, as well as how to ask questions and gain better
understanding of business not only in the co-workers space, but also other in the market.

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 2.6 MY observation in this organization

2.6.1 Strength and weakness of this organization

2.6.1.1 Strength of this organization

 Be able to and gid out as the normal budget secretory in the way of check and balance
beyond that perform the right budget with the finance co-oworkers in the budget year.
 Be able to checking out and perform fair budget distribution that rely on solid evidence
and all the budget secretary staff by the present proposal with agreement and able to
ratify it.
 Be abe to recorded the income plan of the woreda in the right time.

2.6.1.2 weakness of this organization

 Not present:- education, animal healthy students in the right place.

 The absence of animal development secretariant and check and balance.
 The interruption of the woreda auditing and nobling task and regulation.
 Unable to recorded budget continualy.

2.6 .2 accounting and finance related problems or challenges

Some challenges that are I observe in this organization:-

1. Lack of brand awareness ፡- if no one knows who you are or what you do, you will have
a hard time getting people to come, to you, and that will harm your organization and have
a direct income on your organization growth. If an organization doesn’t build brand
awareness, it will be harder to foster customer trust in it. That trust starts with brand
awareness.
2. Limit technology resource:- technological resource are things like the internet, which
help business in a major way like marketing and staying connected. So, the main
technological resource are soft wares.
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 3. Lack of literacy in the accounting field :- the role of an accountant has steadily grown
more technical. So much so that failure to adapt to cloud technology cloud pose a serious
threat to an accountants job security.
4. Poor accounting practice :- accounting and budget are the two most crucial aspects of
financial management in this organization. So, inefficient processes in either of these
areas can lead to a great deal of trouble. While you don’t necessarily need to play a
professional accountant. You should at least take some courses on how to use popular
accounting software.
5. Low morale:- its no woder that burn out is a common problem for those working in
finance and accounting.

2.6.3 Gaps between the theory and practice

Some gaps/difference I have observed between the theory and practice:-

 Theory knowledge learning anything without adopting practical approach. But practical
knowledge that is acquired by day to day hands on experience. In other words, practical
knowledge is gaind through doing things ; it is very much based on real life endeavors and
tasks. on the other hand, theoretical knowledge teaches the reasoning, techniques and
theory knowledge.
 In case of practice I see, all of this organization persons that are looking for software
should familiarize with the type of available software and their benefits. You will find
many software programs that are helpful for your organization. Organization software
carries manybenefits. Some of them are :- - allows faster calculation .
- It saves time, labor and money.
- To eliminate human errors there force. allowing effectiveness
and consistency.
- It increases efficiency and accuracy.

However, in case of theory I see, there is no use software. 16

Example in payroll preparation we use ms exel software.

2.7 Lessons I learned in internship

 In respect of time management:- utilizing effective time management skills, both during
our internship . Hours and during our free time will insure a succeful experience abroad.
Of course, the professional development aspects and the personal growth opportunities are
equally important. So, I learn time management.
 In respect of team work:- team work skills consists of interrelated abilities that let you
work effectively in an organized group. team work skills are vital to employer as teams
are a basic organizational unit with in money organization.

Team work happens when people corporate and use their individual skills to achieve common
goals.

I gain many team work skills:-

communication፡ the ability to get our point across, and truly understand what other people
want to tell me is the corner stone of effective team work.

Decision making ፡ making decisions may seem like a pretty straight forward thing to do.

Problem solving : the very idea behind organizing a teams to solve a problem. That’s why
problem solving skills are fundamental for each and every team member.

Organizational and planning skills : to solve any problem effectively and efficiently I
must be able to devise a master plan that every team member understands, flows, and knows
where it leaders to.

In respect of ethics of employee ፡ some ethics I gain are:-

- Put away things that might distract from work 17

 - ask trusted colleagues to help identify areas for improvement and set smart goals.

- identify aspects of work that motivate such as tasks, goals .

- practice time management to complete equality, on time work and to be more present during
meeting.

Many other skills are;-

 Inter personal skill: the development of inter personal skill is vitally important and in
reality, can only be effectively acquired in work place environment.
 Gain valuable work experience
 Improvement of good communication
 Build a strong resum
 Increase self confidence

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CHAPTER THREE : CONCLUSION AND RECCOMENDATION

3.1 RECOMMENDATION TO THIS ORGANIZATION

 Should use few modern machineries and equipments.

 Employ low professional skilled man power.
 Not arrange safety machines for site workers.

3.2 RECOMMENDATION OFWerabeUNIVERSTY

 Orientation about the internship program should be given.

 Departments should arrange more contact time between the university advisors and the
intern student.

3.3 CONCLUSION

The internship program was very educating.

It helps me to link my theoretical knowledge to practical knowledge.

The program laid sound foundation for me to start my career.

The program improved my self confidence in the field.

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