COLLEGE OF AGRICULTURE AND ENVIROMENTAL SCIENCE

depertament of agricultural economics

PRACTICAL ATTACHMENT REPORT SUBMITTED TO DEPARTEMENT OF

agricultural economics
Title: Office of Finance and Economic Development
By
desalegn demise
ID: 11193/13

Advisor: den l.[msc]

januaary 02/2023
HARAMAYA, ETHIOPIA

ACKNOWLEDGEMENT
First, I would like to thank my god for giving me health and make to write this paper and
My special thanks and heartfelt appreciations also go to my advisor denu lemma.[mcs] for
her critical comments and make my paper to have the present shape. Then would like to
thanks arsi University, specifically college of agriculture and environmental science for giving
this practical attachment and financial support in order to share experience from the organization
how can link theory to practice. I also thanks to digelu and tijo woreda in sagure busa gonofa
by accepting my practical attachment program and all member of the organization who involves
in my practical attachment by giving some information about the organization and supplying by
giving some materials which is necessary for me.
Table of Contents
ACKNOWLEDGEMENT..................................................................................................................................ii
LIST OF FIGURIES..........................................................................................................................................v
LIST OF TABLE...............................................................................................................................................v
ABSTRUCT OR EXCUTIVE SUMMERY...........................................................................................................vi
CHAPTER ONE..............................................................................................................................................1
1 INTRODUCTION........................................................................................................................................1
1.1Historical background of the organization..............................................................................................1
1.2 Vision, Mission, and Objective of the Organization...............................................................................2
1.3 Goals of the organization.......................................................................................................................2
1.4 Strategies of the organization................................................................................................................3
CHAPTER TWO.............................................................................................................................................4
2. THE STRUCTURE OF THE ORGANIZATION AND COORDINATION AMONG THE DEPARTMENT..................4
2.1. Structure of the organization................................................................................................................4
2.2. The Coordination among the Department............................................................................................5
2.3. Problem within the Organization..........................................................................................................6
CHAPTER THREE..........................................................................................................................................7
3. TASK CARRIED OUT AND KNWOLEDGE GAINED.......................................................................................7
3.1. TASK CARIED OUT OF PURCHASING AND FINANCING PROCESS...........................................................7
3.2. KNOWELEDGE GAINED.........................................................................................................................8
3.3. Objective of purchasing process...........................................................................................................8
3.4. Principles of purchasing management or (7 r’s)...................................................................................8
3.5. Purchasing cycle/steps in purchasing....................................................................................................8
3.6. Department Guidelines for Dealing with Vendors................................................................................9
CHAPTER FOUR..........................................................................................................................................10
4. SWOT ANALYSIS OF THE ORGANIZATION...............................................................................................10
4.1. Strength..............................................................................................................................................10
4.2. Weakness............................................................................................................................................10
4.3. Opportunities.....................................................................................................................................11
4.4. Threats or challenges..........................................................................................................................11
CHAPTER FIVE............................................................................................................................................12
5. SUMMARY, CONCLUSION AND RECOMMENDATION.............................................................................12
5.1 Summary.............................................................................................................................................12
5.2 Conclusion...........................................................................................................................................12
5.3 RECOMMENDATION............................................................................................................................13
5.4. REFERENCE:........................................................................................................................................14
LIST OF FIGURIES
Figure1 organization structure ………………………………………………….……5

Figure2 power relation among the department……………………………………….5

LIST OF TABLE
Table1 human resources available………………………………………………..…..6

Table 2 budget available during last year’s………………………………………6

ABSTRUCT OR EXCUTIVE SUMMERY
Practical attachment is a field based experience that prepare students for the task that they are
expected to perform on the completion of their course in the field of study. The main objective of
the practical field attachment is to enable students how theoretical knowledge is related with real
world condition which occurred in the organization where the students are attached. This
practical attachment report is conducted in sagure busa gonofa office.Accordingly in the
organization where I assigned ,there are five departments. These are the department of
purchasing and financing process, the department of preparation of plan and budget, the
department of auditing and inspection, the department of financial law affairs and record, the
department of monitoring, evaluating and implementation of the plan. Among these departments
the one in which I was assigned is department of purchasing and finance process.Generally this
report has five parts. The first one is about introduction including description of the organization,
mission, vision, and objectives of the organization. The second is focuses on the structure of the
organization with their function. The third one is all about task carried out and knowledge
gained,prolem encountered and approaches used to solve the problems.the fourth is all about
SWOT (strength, weakness, opportunity, and threat) analysis of the organization. Fifth one is
state summery, conclusion and recommendation for the organizati
CHAPTER ONE
1 INTRODUCTION
1.1Historical background of the organization
The office of the busa gonofa and economic development before separate as name
of Busa gonofa,his called name is the office of agriculture.the process and
performance of this office select or separate from the office of agriculture and
established the name of prepare and resistance of disaster risk management in 2004
in north found in sagure town with proclamation 152/2004 No 266 as woreda level.

. As we mention the name of Busa gonofa still 2007 have name of prepare and
restistance of disaster risk management,as the end of 2007 his name was change
the name of Disaster and risk management,when we see the definition of disaster
and risk management.

There are two way of definition of this tearms: those are traditional approach and
current approach Traditional approach;

Disaster are unforseen evern that cannot be prevented

People affected by disaster are helpless victims and passive recipients of external
aid

Current approach;

Disaster can be prevented:we can avoid and reduce their impacts, the damage and
loss
Stress on disaster management activities before disaster: prevention, mitigation and
preparedness

People affected by disaster are active participate. As the end of 2014 then the name
of disaster and risk management is change to Buusaa Gonofa office. This office
was established as end 2014.

The tearms of this meaning is came from two borena words; busa means collect
something, save something, gathering something, and gonofa mean this collect
something, gathering something and save something using technology and system
implemented by through coordinated.
During this office those organization was to understand the local social relation and
power structure,key economics and build good informal and formal relationships
with them.

Participatory disaster risk assessment it is conducted by local authorities with the

involvement of local people community leaders and subject experts at identified
most vulnerable and priority communities as well as different hazard, vulnerability
and capacity assessment and prioritization on task when these office was start the
performance of this office was strong. When we see The distance between busa gonofa and
Addis Ababa is about 198km far from Addis Ababa the capital city of the country

It focus for the business community to conduct discussions on activities they are
engaged in and on economic development issues and recommendations to the
government.

Currently, the busa gonofa or disaster and risk management and economic
development has 32 employees with the following departments. Those are:

v Department of purchasing and finance process

v Department of preparation of plan and budget

v Department of auditing and inspection role of finance and purchasing and
also contains the final conclusion and recommendation.

1.2 Vision, Mission, and Objective of the Organization

1.2.1 Vision:-

The vision of busa gonofa is:-

To visualize the population by withdrawing themselves from poverty and different hazards by
enhancing working culture and implementing the resources at the proper mannersto provide
financial service to the productive poor in rural and urban area of environmental.

To provide efficient and sustainable financial services to the rural and Peri- urban population
suffering from poverty.
It target loans and collects saving, target women small farmers and landless young people in
particulary.

1.2.2 Mission:-
Strengthen the development of the woreda in the sustainable way improving the standard of the
population through coordinating and the resource in transport efficiently and effectively from
insuring the development.To provide full-fledged and customer responsive depend on the
individual problem and cooperative societies , individuals, and other entities with special
emphasis to agricultural and agro-based businesses financing and to maximize share holders
value for foresight through use of competent and disciplined employees , visionary leaders, and
modern technologies .
· Working to promote the puplic interest or common good.
Treating others with respect and tolerating difference.
Actively taking part in development activities.
All people have patriotic citizens tolerate diversity and treat others fairly.
Respect and tolerance are good ways of handling cultural, racial, and other difference
Almost half of the people in Ethiopia are unable to eat three times a day.many parents are unable
to provide their family with proper clothing,so the mission of buusaa gonofa is to change the
live this family and parents.
Local people are capable of initating and sustaining their own community development while the
role of local community,private sector and NGO is important,the primary requirements for
grassroot development is with local leadership.
A successful bottom-up strategies will include broad based local participation in
comprehensiving planning and decision making activities that promote motivation.
Emphasis is on improving the utilization and Management of local resources.
• 1.2.3 Values of the organization:-

The values of the organization are embracing the following. Those are:-
• Gender equality
• Transparency
• Fairness
• Effective and efficient management
• Accountability
• Up grading women participatory
• Service delivery
• Responsibility to delivering service requirement
1.3 Goals of the organization
-Lead economic by planning and unity.
-Lead the property of Woreda and accomplish the payment expand.
-Decide the income of the Woreda by gathering and developing resource of their income
depending up on the government rule and regulation.

1.2.4 OBJECTIVE OF THE OFFICE

1.2.4.1. GENERAL OBJECTIVE

• To increase quality, relevant and equable access of woreda resources based on the
economic demand.
To provide relevant and demand driven tool of the purchasing and supply management division
and other sector that correspond to the need of economy and social section for employment
through labor market assessment.Reduce vulnerability and increase capacities vulnerable
community to cope with prevent or mimize loss and damage to life, property and environmental.

Mimize human suffering

Haste recovery

1.2.4.2. SPECIFIC OBJECTIVE

• Mobilizing the community to participate in creating access and solving the problems of
the sector offices.
• Support employment learning process at the manager information exchange.
• Support the employment working process in government agencies.

• Increasing income by making strategy to collect revenue from different source

such as taxes.

1.4 Strategies of the organization

This organization has the following strategies to achieve the functional objective and goal:-

• Improving the revenue collection method.

• Encouraging sectors as they work their operation efficiently and effectively.

• Properly follow up and monitoring of budget delegated to sectors.

• Paying the employers salary on the time.

• Creating favorable working condition.

• Developing the data based information system.

• Developing the skill of planning and implementation.

• Improving working structure that is division of the department.

• Properly protect the government properties

CHAPTER TWO
2. THE STRUCTURE OF THE ORGANIZATION AND COORDINATION AMONG THE
DEPARTMENT
2.1. Structure of the organization
This system enables organization in team work among the employers for all decision made with
the managerial hierarch.

Figure 1 organization structure

Head of the office

Monitoring & evaluation

Auditing & inspection

Purchasing & financing

Preparation plan budget

Purchasing & market research

Implementation the planned

Documentation statics

Plan &budget pre preparation

The activities of those structures are the grouped rather than the individual. The structure of the
organization is easy for the chain of the command and favorable for the development relationship
among the organization. The duties and responsibilities of the departments to the head of the
office is concerning with over all manage mental police and strategies.

Those structures have team responsibilities to facilitate their activities. Such as:-

• Enforcing sectors to provide their work implementation program.

• Identified the target plan of the development for each sectors and kebeles.
• Accepting, coordinating and transferring to cabinet additional budget required for the
sector.

2.2. The Coordination among the Department

In this organization there is the relationship among the department. They have both horizontal
and vertical relationship. The relationship is used to the flow of information among the
department.

Figure 2, power relationships among department

Preparation of plan and budget

Marketing research

Monitoring and evaluation case team

Purchasing case team

Auditing and inspection

Data documentation

Statics case team

Financing case team

This indicate that the plan and budget preparation team provides budget and for each kebeles and
sectors based on proposal and transfers to monitoring and evaluation case team, after this budget
and plan transfer to the data documentation of the organization case team based on plan and
budget conduct market research and finance required amount of budget by financing case team
and undertake purchasing activities, finally auditing and their activities.

2.3. Problem within the Organization

• Human Resource

The organization has the problem of human resource in order to achieve the goal. The following
table is showing some of the problem.

Table 1 Human resource / employers

Source: from the office finance and economic development of the Melka Belo woreda

• Problem of the budget

The following table shows the problem of the budget and available with the gap in the past five
years.

Table 2.budget available and requested

Years Required Budget Allocated Budget Gap

2009 2780001 2162328 617673
2010 2602205 2302205 300000
2011 136536603 136265775 270828
2012 142632880 142352880 280000
Source: from office of finance and economic development of the woreda.
 CHAPTER THREE
3. TASK CARRIED OUT AND KNWOLEDGE GAINED
3.1. TASK CARIED OUT OF PURCHASING AND FINANCING PROCESS
Terminologies related to this topic:-

• Purchasing: -Is the process of acquision of goods and service by exchange of money.

• Financing: - is the art or the science of managing money and it is one of the basic
Common function to all types of organization. This department is begun to operate a single
department since 2000 E.C after its separation independently.

In this part I am going to access and investigated all things performed and accrued on the
organization that was I observed in my practical attachment in organization. As I observed
purchasing and financing process department was one of the accounting department of Kuyu
Woreda office of finance and economic development. It is the major department of the
organization which performed the activities of buying material for the governmental sectors that
found in the woreda. It is exist to insure informed purchasing decisions are made and to improve
procurement effectiveness by providing purchasing expertise and advice to the organization
departments.

Currently, this department can run the following activities:-

• Locating competitive quality of goods and service.

• Making the purchase announcement.

• Arranging materials purchased.

• Financing the purchasing activity.

• Discuss with salary representation.

• Contribute the financial wellness of organization

• Maintenance of variety of purchasing records.

3.2. KNOWELEDGE GAINED
The purchasing and financing department accomplishes its mission by carrying out its duties and
responsibilities. The following knowledge has been acquired during my practical attachment:-

• How to protecting the organization against to unfair or unethical trade practices.

• How to maintaining the relationship with the suppliers that service the organization.

• How to providing value added to goods/services.

• How to coordinating the purchasing goods/services for all function of the organization.

• How to directing the accounting, transfer, trade and sale of organization properties.

• How to obtaining and realize maximum value from the expenditure of the organization
funds in the purchase of goods/service.

3.3. Objective of purchasing process

• To purchase the required material at minimum possible price

• Development of good and new vendors (suppliers)

• Training and development of personal employees in department

• Participating in development of new material and products

• To avoid stock-out situations.

• To minimize the department expenses.

3.4. Principles of purchasing management or (7 r’s)

• Buying material at right quality

• In the right quantity

• From the right source

• At the right prices

• At the right place

• At the right time and

• With the right mode of transport

3.5. Purchasing cycle/steps in purchasing
• Get requirement from users department.

• Send the inquiry to the vendors (suppliers).

• Get the quotations from vendors.

• Make comparative statement.

• Negotiate: fix the price.

• Place the order to the right vendors

• Follow up with vendor

• Receipt & inspection.

• Storage and record keeping.

3.6. Department Guidelines for Dealing with Vendors

To help end users in dealing with supplier representatives, the purchasing office suggests the
following guidelines.

• Advice the purchasing office in advanced.

• Contact more than one qualified supplier whenever possible.

• Give equal information to all suppliers.

• Discuss all aspects of the need.

• Guard against overreaction to a supplier created crisis.

CHAPTER FOUR
4. SWOT ANALYSIS OF THE ORGANIZATION
Swot analysis was the process of accessing the situation existing in within the organization and
its environment.

4.1. Strength
• There was a good coordination between managers and members of the organization.

• Most employers with the organization have sufficient experience and worthily shill and
ability to communicate with population of the woreda.

• Practices develop the principle of accountability and transparence.

• Good commitment to expand of the finance and economic development of Malka Belo
Woreda.

• Solving the problem of the office by discussion on important point.

• Using new technologies for better service.

4.2. Weakness
• There is no well prepared written documentary information about the office by English
language.

• The workers of the organization some time provide biases data.

• There is no match experience sharing with others employers.

• Some workers of the organization are not punctuality.

• Some of the organization’s workers are not taking the responsibility for his/her action.

• Lack of fully skilled person within their tasks.

4.3. Opportunities
• The existence of educated people of the woreda to follow the work ethics.

• The presence of sprit of unity to assign their tasks.

• The existence of strategy and policy.

• The existence of advanced technology, computer, and ICT.

• Availability of banking service.

• The expansion investment and Agro-industry.

• Availability of valuable resource of information on goods and service.

4.4. Threats or challenges

These are unfavorable condition that exists outside the organization which affects the
performance of the organization. These include the following:-

• Leadership problem, lack of commitment and corruption are some threats of the
organization.

• There is a conflict between the employers and supervisors since there are no clear criteria
in the organization of the woreda.

• The problem of logistics such as transportation facility, road, inventory for goods.

• The problem of office facility such as computer, chairs and office.

• Due to the budget problem there is no payment for over time works.

• The increment price of purchasing material.

• Unfair or unethical trade practices.

CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
The finance and economic development of the Malka Bal'oWareda contain five departments
(purchasing and financing process, preparation of plan and budget, monitoring and evaluation of
the planning process, auditing and inspection, financial law affairs and record office) and all of
these departments are works by coordination rather than individual. There is the process of team
responsibility and this organization has the main structure and coordination among the
department. This organization is also faced by the problem such as human resource problem,
budget problem, the problem the logistics such as transportation facility, road, inventory goods
etc the problem of the office facility, such as computer chair office. Their also SWOT analysis
(strength, weakness, opportunities and threat) which measure the performance of the
organization. In this organization purchasing and financing process is the most department
because as it will minimize cost of purchasing goods.

5.2 Conclusion
Generally, this practical attachment is conduct on finance and economic development office of
Malka Belo woreda. This practical attachment deals with over all activities of the organization
focus on the purchasing and financing process department of this office. The main objective of
the organization, mission, vision and value of the organization is observed.

5.3 RECOMMENDATION
The office of finance and economic development have great role in creating the good work ethics
in society and member that improve the product and productivities of the members. However,
there is the problem faced to the organization which affects the performance of the organization.
I strong recommended that the organization should be improved the following points:-

• There is no documentary information that shares about office by English language, the
document should be prepare by English for better understand.

• Since some of the organization’s workers are not taking the responsibility, there should be
responsible for his/her action.

• Since some workers of the organization are not punctual, there should be punctual for
his/her action.

• The workers of the organization some time provide biases data they should be provide
truly information for the members.

• Facility problem such as non availability of computers, chairs and office would hinder the
work efficiency, so that the organization should have to take into account the problem and find
the solution effectiveness.
5.4. REFERENCE:
• Weekly and monthly report of the organization.
• Different written documents
• Document and data of the organizations.
• Interview with the manager, workers and customers of the organizations.
• Brochures and figure of the organization
• Different written materials of the organization

THANK YOU FOR YOUR

ATTENTION