SAMARA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF ACCOUNTING AND FINANCE PRACTICAL
ATTACHMENT ON COOPERATIVE BANK OF OROMIA IN KULUBI
BRANCHS

PREPARED BY; MOHAMMED AMMED

ID NO: SU/1302005

SAMARA, AFAR, ETHIOPIA

NOVEMBER: 2023

Submitted to, Department of Accounting and finance

Table of Contents
Acknowledgement..........................................................................................................................................iv
ABSTRACT.........................................................................................................................................................v
CHAPTER ONE..............................................................................................................................................1
INTRODACTION...........................................................................................................................................1
1.1 Background of the organization.................................................................................................................1
1.2 Ownership, Nature and or types of business..............................................................................................1
1.3 The Objectives of the Organization............................................................................................................2
1.4. Organizational Structure...........................................................................................................................2
1.4.1. Vision:....................................................................................................................................................3
1.4.2. Mission:..................................................................................................................................................3
1.4.3. Core Values of the organization.............................................................................................................3
1.5 Position of the CBO/institution in the relevant CBO.................................................................................3
CHAPTER TWO.............................................................................................................................................4
2. SWOT ANALYSIS......................................................................................................................................4
2.1 Strength of the CBO...................................................................................................................................4
2.2 Weaknesses of the CBO.............................................................................................................................4
2.3 Opportunities of the CBO..........................................................................................................................4
2.4 Threats of the CBO....................................................................................................................................5
CHAPTER THREE..........................................................................................................................................6
3. ACTIVITIES UNDERTAKEN DURING FIELD ATTACHEMEMENT..................................................6
3.1 How I was get into the company................................................................................................................6
3.2. The main responsibility of the departmen.................................................................................................6
3.3. My Responsibility in the team (department).............................................................................................6
3.4. My activity in department.........................................................................................................................7
3.5 Performance evalution my activities.........................................................................................................7
CHAPTER FOUR.......................................................................................................................................8

4. LESSONS, EXPERIENCES AND SKILS..............................................................................................8

4.1 Lessons.................................................................................................................................................8

4.2 Skill........................................................................................................................................................8

4.3 Expriences...........................................................................................................................................9

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CHAPTERFIVE............................................................................................................................................10

5. SPECIFIC ACCOUNTING CONCEPTS IN THE ORGANIZATION.................................................10

5.1 Recording of Business transaction in a given business entity..........................................................10

5.2 Types and elements of financial statements in the business entity...................................................10

5.3 Roles of Accounting for decision making........................................................................................10

5.4 Application of Audit principle’s and Practice.................................................................................10

5.4 Methods of Accounting in a given Business entity.........................................................................10

5.5 How business entity execute transaction among Home office, Branch, Segments etc....................10

CHAPTER SIX..............................................................................................................................................11
6. CONCLUTIONS AND RECOMMENDATIONS........................................................................................11
6.1 CONCLUTIONS......................................................................................................................................11
6.2 RECOMMENDATIONS..............................................................................................................................11
REFERENCE.................................................................................................................................................12

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Acknowledgement
first of all I would like to thank the Almighty Allah for giving me health, strength & patience to pass through
many things and secondly I thank my Father and mother for being with me every time and helping me for all
my success. Lastly, I would like to thank the department of ACCOUNTING AND FINANCE for preparing
this professional practice & giving me the opportunity to see in real world what I have learned theoretically.
my thank is also goes to all staff of CBO, kulubi branch for letting me know how an organizations work is
carried out.

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ABSTRACT
Generally, the objective of this practical attachment is to assess the Kulubi branch cooperative Bank of Oromia
on to performance measurement. The extent to which kulubi Cooperative bank is realizing its visions,
missions, and performances of the organization in relation to its objectives. To increase student’s knowledge
and enable student to compare what have learnt so far in class and what have experienced in practical
attachment. To produce well qualified, self-reliant, active, change agent and real problem solver student.

In addition, the other objective is to investigate equal participation of kulubi cooperative bank with other bank
to it realizes to its visions, mission and objective. Not only limited to this but also emphasis the problems faced
by student while performing practical attachment. Thus Practical attachment suggests solutions and some of
policy implication toward reducing the problems based on.

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 CHAPTER ONE
INTRODACTION
1.1 Background of the organization
Cooperative Bank of Oromia is a private commercial bank in Ethiopia. The bank is the first established in 2002
with the idea of founding the bank brought by Haile Gebre Lube, who regarded as the founding father of
Ethiopia’s cooperatives. Formally establishing a project office in 2002, the bank’s formation was realized with
majority of shareholders being the cooperative societies. It was registered on 29 October 2004 in accordance
with Article 304 of the commercial code of Ethiopia and was licensed by National Bank of Ethiopia as per
proclamation No. 84/1994. The bank-commenced operation on 8 March 2005 with 7 branches and paid up
share capital of birr 112 millions.62.86% of ownership was occupied by cooperatives .while According to the
June 2023 report, Cooperative Bank of Oromia (Coop bank) has total assets of more than ETB 121 Billion
Birr. capital of 12.28 Billion Birr, and deposits of 79 Billion, making the bank among the top three private
banks in the country on major indicators. It is headquarter located in Addis Ababa, Africa Avenue flamingo
area. Currently cooperative bank of Oromia has 10 Million account holders and more than 11,500 employees,
which makes the bank the leading private bank in this regard. The bank has 610 + branches, of which more
than 80% are outside the capital.
Kulubi branch is one of the branch of cooperative bank of Oromia. Kulubi branch established in 2010 E.C. It
was located in eastern hararghe zone metta woreda.it has 10 employees, nine male and one female.

1.2 Ownership, Nature and or types of business

 Private &individual
 Association & cooperative
 Public enterprises & government organization
 Non-Banking financial institution:- Insurance , micro finance

Types of business
 Cooperative
 primary cooperative
 organization and association

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  cooperative union
 cooperative federation
 Non cooperative
 organization and association
 individuals

1.3 The Objectives of the Organization.

 To promote saving culture and create access to loans
 To maximize shareholder value
 To have broad ownership base and diversified ownership structure
 To be the first bank of its kind in the country
 To be first private bank in the country established with big paid-up capital of the time
To give social and cultural values oriented service

1.4. Organizational Structure

Organizational structure is the most important part for office to achieve its objectives and mission.
The apex body of Cooperative Bank of Oromia is the general body of shareholders or owners of the bank who
have the basic right to decide the objectives and the banks existence and operations. They elected their
representatives, the Board of Director to whom all the powers to run the bank are best owned upon. Board of
Director hired the general manager of the bank who entrusted to perform the functions relating to the policy
matters, implementation and supervision. Functional department of head office level and branches are in
charges of the implementation of decision.

So finally, the manager of the bank controls all activity in bank.

 General body: The apex body of cooperative bank of Oromia is the general body of shareholder of the
bank who have the basic right to decide the objective, the existence and operation of the bank.
 General assembly: The general assembly elected representatives, the boards of directors to whom all
the power to run the bank are based upon.
 Board of directors: hired the general managers of the bank.
 Executive managers: They are who interested to perform the function relating to policy matter,
implementation and supervision
 Function department: at the head office levels and branches are in charges of the implementation of
policy and strategies of the bank

1.4.1. Vision:
To be the leading private bank in Ethiopia by 2025 G.C. To be dynamic, well equipped, worldwide known and
recognized center of excellence in competence based training, research and consultancy services in business
and related disciplines

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1.4.2. Mission:
We root our foundation in communities to provide banking solutions that create greater customer experience
with emphasis to cooperatives and agro-based business through proper use of human resources and up to date
technologies to maximize stakeholders shares. (Source Cooperative bank of Oromia website .) .

1.4.3. Core Values of the organization

1. Integrity: - qualification of being honest, fair, disciplined and open ; having moral uprightness and
doing what is right.
2. Customer satisfaction: - striving to provide quality customer service/product; respecting client,
understanding their wants and doing the best to fulfill their requirements
3. Learning Organization: - facilitate learning and continuously transforming ourselves, transforming new
knowledge into action, learning from our experience, being adaptable to change.
3. Teamwork: - working together for common purpose as a team, having a commitment to common
vision.
4. Cost Consciousness: - being careful about spending.
5. Concern for Community: - take commitment to support the community, utilize sociocultural attributes
of the communities

1.5 Position of the CBO/institution in the relevant CBO

Customer account and transaction service department is one of the sectors of CBO kulubi branch. It performs
its duties and responsibility by setting specific and feasible goals and objectives, which support to speed up
customer satisfaction and profit maximization of the bank

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 CHAPTER TWO
2. SWOT ANALYSIS
The kulubi Branch of Cooperative Bank of Oromia has its own strength and weakness as well as
opportunities and threats that speed up and retard the bank over all work process respectively.
2.1 Strength of the CBO
 Most of the staff are young, who have required capacities, and well equipped with the language most
customers use i.e. Afan Oromo.
 The computer system they use is fast, easy to handle and secure.
 Good staff relationship that makes working condition more comfortable.
 There is proper handling, monitoring, and follow up of office materials use only for the purpose of the
bank.
 In place of lack of work forces, the existing workers are working their work effectively and by substituting
each other.
 There introduced the latest E-banking which is called COOPAY OR E birr.
 Good efficiency and ethical conduct of staff
 Being nearest to society
 It’s give training for its employees to improve their profession
 Having different categories of customer saving account depend on age and gender.

2.2 Weaknesses of the CBO

 Weak documentation of files.
 Insufficiency of employees.
 In some occasions, one worker can do many transactions including posting and authorization, which
may increase the probability of fraud.
 Lack of programs on which employees share their idea, knowledge and experience.
 There is no ATM machine available for the customer.
 Sometime there is connection problem.

2.3 Opportunities of the CBO

 The bank is very well placed to attract the customers basically from outside the town because of its
employees more engaged with society's
 The bank has the potentials to attract cooperative societies.
 The bank is able to mobilize large amount of financial resources from rural area and finance them.

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  The development of infrastructure and investment in the country play great role for the bank.
 Steady and fast growth of population is good opportunity for increment of bank customer.
Availability of qualified work force in the market and development of information technology in the country

2.4 Threats of the CBO

 If the organization continues with the current organizational structure in the future, it may face various
challenges including:
 Volatility of currency.
 Expansion of competitors in the market.
 Poor credit culture and know how about banking and its service within the society.
 Agricultural based economy that is highly depend on rainfall.
 Weather condition

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 CHAPTER THREE
3. ACTIVITIES UNDERTAKEN DURING FIELD
ATTACHEMEMENT
3.1 How I was get into the company.
On July,2015.E.C,I submitted the authorized letter to manager CBO kulubi branch which is the nearest to our
city in accordance with the orientation we received from our academic advisor. then after reading the letter
they allowed me to work with them ,and they told me to fulfill the bank protocols.one day later I could join the
organization member and I met with other students who are under taking the internship activities in the bank
and we continuous working the task assigned for us according to our schedule for Fifteen.

3.2. The main responsibility of the department.

The work uses different planning formats to analyze internal strengths and weaknesses as well as opportunities
and threats to prepare plans and action plans for our branch offices
 Obeying the rule and regulation of the organization
 Every employee should be punctual
 Every employee should guidance for their work

3.3. My Responsibility in the team (department)

 Being punctual
 Honest to rule and regulation
 Using resource of the organization
 Respecting and following the rule and regulation of the organization
 Account opening: - there are many types of accounts those are:-
 Saving account – is interest-bearing deposit opened by legal and physical persons,
organization and association.
 Demand/Checking account – It consists:

 Ordinary demand deposit account: - It is current or checking account, which is a non-interest

bearing.
 Special demand deposit account: It is a checking account which bears interest less
than the minimum interest rate of saving account.

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  Fixed time deposits – a type of account deposit is received at certain period of time
without movement a minimum of three month and attracts higher interest rate than other
deposit (such as interest free banking deposit product).

3.4. My activity in department

As a member of the department, I was also assigned with the responsibilities of performing the activities
of the department. Based on those general activities, I perform the following specific activities as an
apprentice when I was participating at cooperative bank of Oromia kulubi branch.
 I opened account for the customers by supporting employees
 I check the name, date and signature of the customer to filled properly.
 I participated in different writing and typing activities that help for customer service.
 I accomplished a given work punctually and honestly by obeying the rules and regulation of the
organization.
 Protecting the office resource from damage.
 I gave different service for department and customers.

3.5 Performance evalution my activities

As a member of department I have also the responsibility of performing the activities of department .Based on
those general activities I perform the following specific activities as an apprentice, when I was participating at
Cooperative Bank of Oromia in kulubi branch.
 I have good communication with other at work place.
 I check the name, date and signature of the customer to be filled properly
 I participated in different writing and typing activities that help for customer service.
 I helped the customer by writing withdrawal and deposit order for 45 days
 Opened accounts for 45 days
 I accomplish a given work punctual and honestly by obeying the rule and regulation of the
organization
 Protecting the office resource from damage
 I gave different service for department and customers
 To ask necessary data I could communicate with my manager from time to time etc


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 CHAPTER FOUR
4.1 LESSONS, EXPERIENCE AND SKILLS
During my practical attachment, here in kulubi branch of Cooperative Bank of Oromia, I have learned different
knowledge and skills related to my study. At the beginning of the internship, I formulated several learning
goals which I wanted to achieve and below are those objectives:
 To get practical exposure and be adapted to the real life of working environment.
 To get an experience of working in a professional environment.
 To understand the functioning and working conditions of the cooperative bank of Oromia.
 To study and understand the functioning of the departments.
 To check what skills and knowledge I still need to work on in a professional environment.
 The theories of microeconomics for showing how to maximize Profit and creating customer satisfaction.
 IT enables the student to change the theoretical in to practical way in which its have relevance of the
organization and my activity to my study
 Applicability of theories in practical work environment is very interesting and important. In economics
field, such as the industrial economics theory of advertising and there are many theories that applied on
real world.
 To develop interpersonal and communicative skills.
 To expand my personal network.
Among those, I was practically exposed and adapted to the working environment. The internship also helped
me understand functioning and working conditions of Cooperative Bank of Oromia as well as make different
transactions on their system. Furthermore, it helped me in improving my communication skill and
interpersonal relationship skill with others at work place. Finally, It supported me learn how to prepare and
write report.
4.1. lessons
 I understood how to show respect to employers and customers.
 Identifying, understanding and working with professional standards.
 Improving problem solving and critical thinking skill.
 I was practically exposed and adapted to the working environment.\

4.2 Experiences.
There are a lot of significant of practical attachments for the students, university and for
society. Some of the significances are listed below:-
 To increase the confidence of students on future work.
 To identify the problem in the company for necessary solution.
 Help to apply the theory in class for future expected activities.
 Help for students how to identify and find solution for problem.

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  Help to teach others the acceptability of theory in class.
 It develops student’s research making skill.
 Help to know and compare the relationship between the theory and real world etc.

4.3 Skills
Practical attachment is an essential for the development of the practical and professional skills
required for a real work and an aid to prospective employment. It helps students the
opportunity to apply knowledge in real work, exposing students to work methods not taught in
the university and as well as assessing students interest in the occupation he/she plans to
undertake. In addition to that it enables to know theories and principles I have learned in a
class practically. Therefore, practical attachment has paramount benefits to my study and to my
future career in the field.

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CHAPTER FIVE
5. SPECIFIC ACCOUNTING CONCEPTS IN THE ORGANIZATION

5.1 Business entity concept

CBO focuses on product and services that are specifically designed for business, such as deposit account,
lines of credit, merchant service, payment processing, CBO loans, global trade services, treasury services and
other business-oriented offerings.the first step is to determine the transaction and which account will affect.
The second step recording the particular accounts. Consideration must be taken when numbers are inputted in
to debit and credit sections. Then finally, the transaction is recorded in a document is called a journal.
5.2 Money measurement concept
The annual financial statements of CBO bank of Ethiopia are composed of the balance sheet, statements of
income, statements of cash flow and the statements change in shareholder equity.

5.3 Accounting period concept

Accounting plays a vital role in running a business because it help you track income and expenditure, ensure
statutory compliance and provide investors, management and government with quantitative financial
information which can be used in business decision making.

5.4 Realization concept

The basic principles of auditing are confidentiality, integrity, objectivity, independence, skills and competence,
work performed by others, documentation, planning, audit evidence, accounting system and internal control,
and audit reporting. The main objective of the bank audit is to conduct an independent inspection of the bank's
performance, its information systems and control.

5.5 Accrual base concept

An accounting method is a set of rules under which revenues and expenses are reported in financial statements.
The choice of accounting method can result in differing amounts of profit being reported in the short-term.
Over the long-term, the choice of accounting method has a reduced impact on profitability.

5.6 Financial reporting concept

A CBO is a financial organization that handles all transactions involving public money deposits and
withdrawals, lending money for investments, and other similar activities. These banks are for-profit
organizations that operate solely for financial gain.

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 CHAPTER SIX

6. CONCLUTIONS AND RECOMMENDATIONS

6.1 CONCLUTIONS
In general, this practical attachment helped me a lot in improving my understanding, and developing different
skills associated with my current study and future career. It exposed me to the banking system of our country
in general and of Cooperative Bank of Oromia in particular. And there, I learned how to open different
accounts, make different transactions, the process of banking reconciliation. Lastly, it helped me improve my
communication skill, interpersonal relationship skill and academic writing skill. Overall, I gained some
experience due to this practical attachment such as how to work in cooperation with other, etc.

6.2 RECOMMENDATIONS
As I tried to discuss in the previous practical or report, there are many weaknesses and problems in the
Cooperative Bank of Oromia kulubi branch that hinders the bank to operate efficiently. For those
problems and weaknesses, I recommend the following.
 There should be identification for all workers that show their Name and position and other
important information for customers.
 The workers should not be always strict since this creates customers inconvenience.
 The document should be kept properly.
 There should be the program of sharing ideas and knowledge between the employees, managers,
and between branches.
 The bank should introduce new banking technologies like ATM machine.
 The bank should hire adequate human resources.
 The organization should mobilize the society in order to improve their knowledge and saving
habits.
 The organization should provide a quality service for its customer, update itself with the latest
technology to continue being a good competitor in the market

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 REFERENCE
 The website of the organization; www.coopbankoromia.com.ethttp//www.CBOservice
/PROD/Browser Service/.
 The interview; information from the employees of the organization.

 The daily and weekly activities

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