Deparetement of Accounting and

Finance

An internship on accounting and finance

Company: Bank of Abyssinia

Name: Mengistu Tadesse

Section = S
ID =RAD/1362/2013

Submission date: Sept 6, 2023G.C

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contents

Chapter one..................................................................................................................................................1
1. Background of Bank of Abyssinia......................................................................................................1
1.1 Vision ,mission and values of the organization.............................................................................2
Vision of the organization.......................................................................................................................2
Mission of the organization.....................................................................................................................2
Values of the organization.......................................................................................................................3
2. Background of field of study...............................................................................................................4
3. Organization Activities........................................................................................................................5
 Maintain financial daily records....................................................................................................5
 Maintain general ledger..................................................................................................................6
 Recording of income and receipts..................................................................................................6
 Maintaining of Expenses and Recognizing of Payment...............................................................8
 Maintaining cash and receivables..................................................................................................9
Maintaining of cash.....................................................................................................................................9
Maintaining of Receivable........................................................................................................................10
 Processing of payroll......................................................................................................................10
 Preparation of payroll in BOA.................................................................................................11
 Process data electronically............................................................................................................11
Chapter two................................................................................................................................................12
2. Actual practice...................................................................................................................................12
 Work performed............................................................................................................................12
 Educational valu of the internship...............................................................................................13
 Relationship: classroom experience to actualwork environment..............................................13
 SWOT anallysis of the organization............................................................................................14
Chapter Three............................................................................................................................................17
Summary and Conclusions...................................................................................................................17
Appendix
Chapter one

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1.Background of Bank of Abyssinia

Bank of abyssinia is one of the first poineer private bank in Ethiopia. The bank of abyssinia
(BOA) was open for business in 1996 with enthused initation and determination .The name
abyssinia resembles and character which is the core attributes of bank of abyssinia .motto of the
bank is "The choice for all".Bank of abyssinia's commitment to deliver quality commerical
products along with first class customer sevices.makes bank of abyssinia the most suitable bank
for all.adopting its tagline in such manner refelects bank of abyssinia deep assocation with the
society .with more finanical products and services. bank of abyssinia has demonstrated through
the year that is a bank for all and any kind of customer.

Nature of business ,product and serivce

Bank of abyssinia is a share company of privat individuals who a mass experience and success in
different areas including business entartainment and education,such diverse ownership not only
reflects the companys determination and willingness to successed in the sectore it operates in but
also signify its ability to work together towards buliding a successful business venture and
commerical bank serivece.

Bank of abyssinia are different seriveces like ;

Payement

 School fee collection

 Guzogo
 ETswitch Transfer
 Pay at the bank
 Pay trafic panality

Utility

 PaywayBillpayement
 Derash water Bill payement
 Derash E-Tax payement
 DSTV payement

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  CANAL+payement
 Bill payement with websprix
 Water Bill payement
 Bill payement standing order
 Awach payement collection
 Home rent payement

Bank of abyissina has more than 11000 numbere employees. View the comprehensive list of
bank of abyissina employees,their locations ,business contact details and key personal.

The current revenue of size and profit(annual budget) of bank of abyssinia is 5.7 Billion per year.

1.1 Vision, mission and values of the organization

Vision of the organization
The vision statement of bank of abyssinia is : to become the leading commerical bank in East
Africa by the year 2030.

Mission of the organization

The mission statement of bank of abyssinia is: provide excellent finanical serivece through
competent ,motivated employees and digital technology in order to maximize value to all
stakeholder.

Values of the organization

The core values of Bank of abyssinia's are:-

Customer satisfacation:

the quality of our work is alwayes measured by the level of satisfaction of our
customers get.to attian the maximume value of our finanical serivces are alwayes
the highest.

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Integerity :

the serivces we deliver through out the countery keep their uniformity and
standared to display our integerity.

Team work and collaborate ;

As we stride to wards the same goal which is delivering unparalleled banking

serivces ,our collaborative effort holds the most significance.

Carring for our community;

As a bank that bears the former name of our country ,our commitment lies beyond
delivering finanical serivces .it goes with out saying that we are deeply concerned
and involved in helping the community we operat in.our corporate social
responsibility shows our care as it is a plat form to which allows us to giveback to
our community.

Strategic partnership:

Bank of abyssinia ,to build its brand traction and expand its customer base ,has
formed.a strategic partnership with different international organizations based in
ethiopia.

Corporate social responsibility:

As one of our core values ,the Bank of abyssinia promote corporate social
responsibility .It belives the well being and improved living.conditions of our
comunity will benfit us all.As such ,Bank of abyssinia participates in varioues
national project and other social and economical initatives.These include the

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 construction of the Ethiopian caradiac center,Ethiopia Rotary club ,and the
estabelishement of Ethiopian women Traders Association.

Current capital:

Through its 855 Branches inthe country ,Bank of abyssinia 10.2 million
customers.Bank of abyssinia's well structured finanical serivces systems
connected through the T-24 core banking system.This coupled with 1277ATM
machines,18 virtual Banking centers and more than 1232 Pos machine placed in
different locations to affored customers to access their accounts from any where at
any time.This also allowed Bank of abyssinia to increase its capital from ETB
50Million to ETB 18.59 Billion.

Total asset:

The total asset of Bank of abyssinia has reached ETB 188.55 Billion.

2.Background of field of practice

For the duration of this internship time I worked in Addis Abeba in Bank of abyssinia around
Geberial mesalemia branch. And I spent 8 weeks learning practical that I learnt in theyoretical
aspect of accounting courses and how the bank of abyssinia maintain its accounting transaction.
The practical training plan is biweekly.

In the first report or in the first two weeks I communicat staff tellers and employees and l
observed the system of bank of abyssinia in branch level and l supported customer and teller by
writting customer tikect and printing and coping the recites. In the second report I gatherd how
to open new account ,how to open ATM and mobile banking and how to transact
wthdrawal ,deposit , .account to account.transfer and cheque deposot and withdrawal inthe
banking system. For the third report I learned how to increase the customers in bank so that to
increase the cusomer to open new account by different products like afla saving account .mudaye

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account .adey account, asrat bekurat account and apollo account to be created and before that to
use those account to encourage the customer to use different digital systems like mobile banking
system like *815 # bank of abyssinia systems. And at the last report or for the last two weeks
week seven and eight I learnd how to pay different panality to pay in the bank like trafic
panality payement and how to pay utility or serivce paymement in the bank like school ,wifi ,
DSTV ,CANAL+,rent payement, wibsprix etc.and how to authorize the tikect and how many
amounts are authorize,for example above 60000 birrdepsit amd transfer to other account are must
be authorize and the customer wothdrawl above 10000 birr the customer id are coping and
attached the to tikect to be learnd in the internship.So for eight weeks I spent to learn about
topics listed above and gate this knowledge practicaly rather than theoretical education.

3.Organization Activities
 Maintain financial daily records
To maintain the daily financial records of bank of bayssinia company records on the
vouchers, on the computer system. This daily records can be collected from different sources this
are like renewal of insurance policy and from new customers those who open new
policies.Payment journals are used in awash insurance company in to different ways. This
different ways are sources of the payment made by the organization’s customer is like from
renewal, new policies , and all other non-life insurances are sources of the company for this type
of payment the company may use.

The first is bank payment vouchers

Bank payment voucher is source document which used to record cash paid by the customer
with checks or bank transfer is bank payment voucher. The bank payment voucher is used to
acknowledge and evidence the transaction into the transaction register the casheir maintains the
bank payment voucher for cash paid in the form of check or bank transfer.

The second is cash payment voucher it is the source document which is used to record cash
paid by a cashier, with currency is the cash payment voucher. Is used to recognize and confirm
the payment of cash which is paid by the casheir and it serves as a source document to record the
transaction into the transaction register. Awash insurance company uses cash payment voucher
format includes some major components his components are name of the organization , name of

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the cashier,date of payment , signature of the cashier, name of branch office, amount of money
paid in figure, amount of money paid in words, Name and signature of the branch manager and
stamp of the organization’s are the most common components of cash payment voucher.

Lastly the company Awash insurance organization records its daily payment for different
offices one for the branch manager and for the finance manager of the organization.

 Maintain general ledger

General ledger accounts of bank of abyssinia company comprise the controlling accounts
whereas the subsidiary ledgers shown details underlying the balance of controlling account in
the general ledger the following chart of account is recently revised one and chart of account
structured categorical and again subdivided in to their respective general ledger and ledger and
subsidiary account as follows:-

 Asset Account
 Cash
 Short term investment in securities
 Fixed asset
 Liability Account
 Claim
 Capital and Reserves
 Profit and loss account
 Retained earning
 Income account
 Insurance premium of the cutomer
 Expense Account
 Salaries and employees benefit
 General expense

 Recording of income and receipts

According to bank of abyssinia company the income and receipts are generated through
different ways. . There are many types of general insurance policies this are as follows

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 1. Motor (private & commercial);
2. Fire & Lightning and Allied perils;
3. Consequential Loss;
4. Burglary & Housebreaking;
5. Marine Cargo;
6. Workmen's Compensation (Employers' Liability);
7. Personal and Group Personal Accident;
8. Engineering policies including:

 Boilers and Pressure Vessels Insurance;

 Contractor's All Risks Insurance;
 Erection All Risks Insurance;
 Contractor's Plant and Machinery Insurance;
 Electronic Equipment Insurance;and
 Machinery Breakdown Insurance and others.

9.Public Liability;
10.Money in Safe and in Transit;
11.Plate Glass;
12.Bonds policies including:-Bid, Performance, Maintenance, Customs Guarantee
andAdvance payment.
13. Fidelity Guarantee;
14. Political Violence and Terrorism and many others.
This are the major policies of Non-life or general insurance services render in AIC.
The other services that awash insurance company uses to generate income is life or long
term insurance given to the customers. This are like

1. Term assurance : this deals about Individual andGroup Life insurance

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 2. Whole life insurance;
3. Endowment insurance;
10, 15, 20 …. Years endowment;

 anticipated endowment,
 endowment annuity and
 education policy .

4. Medical expenses insurance;

5. Riders.

 Accident insurance,and waiver of premium.

6.Travelers health insurance

In general Awash insurance company collects income and receipts based on the
information listed above and through the services listed.

 Maintaining of Expenses and Recognizing of Payment

Since insurance premiums are usually paid prior to the period covered by the payment, it is
common to debit Prepaid Insurance and to credit Cash for the amount paid.

As the prepaid amount expires, the balance in Prepaid Insurance is reduced by a credit to
Prepaid Insurance and a debit to Insurance Expense. This is done with an adjusting entry at the
end of each accounting period (e.g. monthly). The income statement should report the amount of
insurance that has expired during the period indicated in the income statement's heading. Another
objective is to report on the balance sheet the unexpired amount of insurance as the asset Prepaid
Insurance.If you can arrange for your insurance payments to be the amount applicable to each
accounting period, you can simply debit Insurance Expense and credit Cash.

Under the accrual basis of accounting, insurance expense is the cost of insurance that has
been incurred, has expired, or has been used up during the current accounting period for the
nonmanufacturing functions of a business.

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 To illustrate insurance expense, let's assume that a service company has insurance policies for
its property, general liability, vehicles, and employees' worker compensation, medical, dental,
life, and disability. The company pays the premiums on the various insurance policies in
advance. Any insurance premium costs that have not expired as of the balance sheet date should
be reported as a current asset such as Prepaid Insurance. The costs that have expired should be
reported in income statement accounts such as Insurance Expense, Fringe Benefits Expense, etc.
Here's a recap for the cost of insurance at a nonmanufacturing business:

 Expired insurance premiums are reported as Insurance Expense.

 Unexpired insurance premiums are reported as Prepaid Insurance (an asset account).

 Maintaining cash and receivables

Maintaining of cash
As we know cash is the most liquid asset and it needs special and proper follow up to
protect from unnecessary use. So in Awash insurance company all of the user of the systems
have their on account to use this system . This means underwiters , cashier, branch manager and
departemnt managers are use different user name and password to keep cash secuired. The cash
is holding and kept in the bank.

Maintaining of Receivable
According to Awash insurance company account receivable treats by cashier and the
cashier reports to the manager if there is lapsed or unpaid premium. So the manager will receive
the unpiad by contacting the customer whose premium is not paid to the organization. Before the
contacting the customer the manager will contact customers by calling to them. The company is
maintain, this account to deliver the goods to the csssustomer and to adjust to the account to
receive cash from the customer.

 Processing of payroll

Payroll is a list of staff along with salary payment and deduction there in the organization
bank of Abyssinia.. Preparing payroll involves a series of basic calculations to determine each
employee's base pay as well as deductions for state and federal taxes, and employee
contributions to retirement funds and health insurance plans. This information is then transferred

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to individual employee paychecks as well as company records that facilitate the process of
tracking information for internal and external tax and financial reporting. Developing a
comprehensive and user-friendly payroll system will make your life much simpler when it's time
to fill our quarterly and annual tax forms. It will also provide you with clear and useful
information for understanding your company's financial activities.

 Preparation of payroll in bank of abyssinia company

As any other organization the company have its on rules and regulatons to prepare payroll this
are

Tax of the government based on the employees gross salary

Pension is deducted 7% from basic salary of the employee

Again 11 % Pension is deducted from the organization based on employee salary

Then the company may check days of absent to prepare the payroll to each and every individual
or workers. After all this thing is collected the company will pay for the month salary.

 Process data electronically

 Bank of abyssinia company uses METRA GIS computer system for different users and
for different purposes or activities .
Underwiters use their on user name and password

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Finance manager use his / her on user name and password

Cashier uses his or her on user name and password

Branch managers and all employees are their on user name and password

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Chapter two

2. Actual practice
 Work performed
During my internship perogram I performed different tasks wich is reported in differnce of 2
weeks.

A.Initial job responsbilities-My initial job responsblities was that before the respnsbility that I
have done initially on first day of my internship perograme I planned wich I will be able to
perform considering that plananning I discussed with the manager of the company about how I
stay in that company for 8 weeks.since my internship perogram was in bank of abyssinia
company most of the work was not that much related with accounting course so that the manager
of that company told me that insurance and banking system are different.More of internship
perograme was dealing about different policy of insurance,how to calculate risk,disscussion with
the manager about what insurance ment to be,ow to work in insurance company,the nature of
insurance and how to treat customers and disscussion on different policy of insurance.In addition
to that most of my time was spent with the undrewirter of that company and I saw and dissicuss
with him about how to calaculate risks of moter car marine insurance and burgelary.the target
group with is the baranch cashiers I saw the sequence or steps that should be follwed by
chasheries to save cash/bank transaction the seqence held 4 chapter.the first chapter/page to open
cash in the second page wich is from the casier transaction page there are different steps we
follow,Thirdely from vault transaction page and lastely from chashir transaction page the cashire
perform different activity so that when the cashire perform those actvity I was wach the activites
done by the cashire.

B.Change in job scope over the internship

On first day of my internship programe the hed office wrote letter to the manager of the beranch
company and then I discussed with him at the middle of the internship program .The branch
manger changed to head office so that the new assigne manager assigne to work with the branch
underwriter up to the last date of my internship programe I worked with the underwiter of the
branch company.

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  Educational valu of the internship
 I learn office work ethics and time management(punctuality)
 Observing the overall works of business industry
 How to communicate with staff customer treating manner
 New and improved skill and how to apply them
 Networking with different business man
 Hard working
 Independence of work with independent system
 Igot an unforgettable life experince
 I figer out what is insurance in real world
 I make valuable connection

 Relationship:classroom experience to actualwork environment

Actually what we learn in classroom and I perform or see in the insurance company is somehow
differ,some fileds of area of our course applied as per the generally accepetd acunting
principle,and lwas and regulation of the country specially my internship programe is taken in
awash insurance company so that the area of insurance course taken in class room and performed
in working environment is correlated the differnce is the actuality and the theroy otherwise both
are correlated.

 how to calculate different insurance policy which is insurance course and that is one of
the courses that we have learned in this two year
 how to servay and how tocalculate to pay apremium to the company for the accident
 insurance is seen at most good faith isaw this in actuall

 SWOT anallysis of the organization

Strength,weakness,focuses helps to look internally at what awash insurance company can

do ,while threat and apportunities are external and focusing on awash insurance company

Strength of the company

 Offering a variety of insurance product is incresing

 Building and maintaing strong relationship with customers

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  Premium rates are increasing
 Use thire time effectively
 There is work ethics including dressing code
 There is staff capacity building
 All the system is computerized
 Treat customers in agood manner
 Use both amharic and oromifa langudge depending on the customer
 The internal managemenet is verygood
 It have a very good competitive organaization
 There is skilled human resources

weakness of the company

 There is an increasing trend of financial weakness among the companies

 Awarness creation in the company is very low
 There is no system to measure customer satisfaction
 The allocation of the company is not as such siutable with respect to business area

Opportunities

clinets increasing need for an insurance consultant can open new ways to service the client and
generate income

o The abilty to cross sell financial services

o The number of population of the country is very high so that life insurance will increase
o The ability to have its own asset
o Regulated by out of central bank or by his own organization skilled by insurance

Threats

 Instablity of economy of the country

 Falling productivity

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  Changing technolgy threating
 The increasing cost
 Government regulation on issue can quickly change the direction of insurance
 Increasing expenses and lower profit margins on insurance companies
 Regulated by central bank will creat independent of insurance

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Chapter Three
Summary and Conclusions
Based on the internship experience I get a lot of skill and knowledge from the awash insurance
company

Summary of finding

From july september I was assigned in awash insurance company in lebu branch and I see the
business of most good faith in detail to summerize,The insurance company of awash is very
known and one of the largest private insurance company.The company comply with the all
insurance policy and good controlling and managemnt mechanism of the department and its
operation.

Conclusion

Awash insurance company is one of the leading and strongest company that supplied a very
quality of all insurance polices product.in my internship I observed that in the
organization ,financial performane and good mangement skill so that internship is important and
valuable to expose student with actual working environment.

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Appendix

Different policies of Awash insurance company

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