KAMPALA INTERNATIONAL UNIVERSITY

FACULTY OF BUSINESS AND MANAGEMENT

INDUSTRIAL TRAINING REPORT

BY

ATUHAIRE SHANITAH
Reg.No: DBA/4853/161/DU
+256-756341610
shanitahatuhaire@gmail.com

Carried Out At

MUSHANGA SACCO LTD

Kabwohe Branch
SHEEMA

Company Supervisor

SEKIYUNGA GADAPHE. K
+256777837673

External Supervisor

OKELLO SIMON PETER

JUNE to AUGUST 2017

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 DECLARATION

I Atuhaire Shanitah DBA/4853/161/DU hereby declare that this report written in partial
fulfillment of the requirements of the award of a Diploma of Business Administration at Kampala
International University. I declare that the information that is in this report is true and is my own
personal findings documenting my internship (Industrial Training) at Mushanga SACCO Limited
during the recess term of June to August, Academic year 2017/2018 and it has never been
produced by any person for the award of any diploma in other university before. Any errors and
mistakes that may exist, I commit them to myself.

Signature: …………………………………………Date: 03/08/2017

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 APPROVAL
This report is to certify that ATUHAIRE SHANITAH, DBA/4853/161/DU of Kampala International
University has undergone nine weeks industrial training from 6 st June 2017 to 5th Aug 2017 at
our organization to fulfill the requirements for the award of Diploma of Business Administration.
During her training with us we found her sincere and hard working. We wish her a great success
in the future.
This industrial training has been submitted for examination with the approval of the following
supervisors.

Sign…………………………………………………… Date…………………………

SEKIYUNGA GADAPHE. K
+256777837673
MUSHANGA SACCO LTD

Sign……………………………………… Date……………………………….

OKELLO SIMON PETER

KAMPALA INTERNATIONAL UNIVERSITY

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 ACKNOWLEDGEMENTS

It is always a pleasure to remind the fine people in the ICS and also in my life for their sincere
guidance I received to uphold my practical as well as theoretical skills in business administration.
Great thanks go to the Almighty God who has brought me the far I have gone with my internship
training for every success is His will.
I wish to also extend my heartfelt sentiments to my fellow friends Katebire Isaac, Mushabe
Moses, Komuhangi Sharon. I would like to thank Mr. Sekiyunga Gadaphe plus all members of
staff at Mushanga SACCO Ltd for the positive attitude they showed for my work, always allowing
me to question them and giving prompt replies for my uncertainties in all the fields and also
extending their friendship towards me and making a pleasure-training environment.
I wish to express my indebtedness to Mr. Okello Simon Peter who troubled as my University
supervisor, for he was and will always be a blessing in my career and life at large guiding me to
taste the real flavor of Business Administration. A paper is not enough for me to express the
support and guidance I received from him almost for all the work I did there.
Finally, I apologize to all other unnamed people who helped me in various ways to have a good
training

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 LIST OF ACRONYMS

PAYE Pay As You Earn

MSI Micro Finance Social Institute

SACCO Savings And Credit Cooperative Organization

PAR Portfolio At Risk

AGM Annual General Meeting

MCT Management

MFSC Microfinance Support Center

UCSCU Uganda Cooperative Savings and Credit Union

LTD Limited

KIU Kampala International University

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 EXECUTIVE SUMMARY

The study was carried out at Mushanga Sacco Ltd. It aimed at helping the student to put
into practice what he studied in tutorials. To help the student that is the internee to get attuned
to the working environment.

The results show that internship was relevant to the internee because she gained skills and
knowledge in different fields like how to fill loan application form, carry out loan assessment,
carrying out loan appraisal, record keeping, preparing financial statements like balance sheet and
income statement.

Its concluded that internship helped the student to put what she learnt in tutorials into practice
and also he got attuned to the working environment.

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 TABLE OF CONTENTS

Table of Contents
DECLARATION ............................................................................................................................ 2
APPROVAL ................................................................................................................................... 3
ACKNOWLEDGEMENTS ............................................................................................................ 4
LIST OF ACRONYMS .................................................................................................................. 5
EXECUTIVE SUMMARY ............................................................................................................ 6
TABLE OF CONTENTS ................................................................................................................ 7
CHAPTER ONE ............................................................................................................................. 8
1.0 Background of Company/Organization .................................................................................... 8
1.1 Background of the Organization. .............................................................................................. 8
1.2 Vision ........................................................................................................................................ 8
1.3 Target population ...................................................................................................................... 9
1.4 Products/ services offered ......................................................................................................... 9
1.5 Sources of funding .................................................................................................................... 9
CHAPTER TWO .......................................................................................................................... 12
2.0 The role of the organization .................................................................................................... 12
2.1 The role of the loans department to the organization ............................................................. 12
2.2 Duties performed by the loans department ............................................................................. 12
2.3 The role of agency supervisor ................................................................................................. 13
2.4 Roles of the university supervisor........................................................................................... 14
2.5 Role of the student .................................................................................................................. 14
CHAPTER THREE ...................................................................................................................... 15
3.0 Introduction ............................................................................................................................. 15
3.1 Responsibilities I was assigned to do...................................................................................... 15
3.2 The following are experience, skills, knowledge acquired ..................................................... 15
3.3 Relevance of the field work activity or program to the theories learnt in the lecture room ... 16
3.4 Personal contributions to Mushanga SACCO Ltd .................................................................. 17
3.5 Challenges faced by Mushanga SACCO Ltd.......................................................................... 17
3.6 Problems faced during the internship ..................................................................................... 18
CHAPTER FOUR ......................................................................................................................... 19
4.0 Introduction. ............................................................................................................................ 19
4.1 Conclusions ............................................................................................................................. 19
4.2 Recommendations to the organization. ................................................................................... 19
4.3 Recommendations to the university ........................................................................................ 20
APENDEXIES .............................................................................................................................. 21

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 CHAPTER ONE
1.0 Background of Company/Organization

Introduction
This field work study was carried out at Mushanga SACCO Ltd. Internship provides the student
with the opportunity to exploit various educational theories and facts digested with in the
tutorials to practice everyday experience at work site. It is through practicum program that the
student is confronted by depth of technical skills and stature of the profession and the variety
of profession goals. The internship exercise is a pivot, pillar or a hall mark of the student
academic preparations for professionalism. In other words, it is a pre-professional experience.
Therefore, the students, agency and the university must each recognize the values of the
internship to the student’s education career.

1.1 Background of the Organization.

Mushanga SACCO is a savings and credit financial institution founded in 1969 and formally
registered in 1981 and has continued to grow over the years. It’s among the pioneer SACCOs in
Western Uganda and has untold impact on different categories of people. The SACCOs head
office is in Kibingo town Council in Nyamufumura trading center near kabwohe along Mbarara-
Kasese road and it has several branches and these include the one at Kanyeganyege trading
center Kigarama, another one is in Rwentuha branch, Shuku branch in Ishaka Shuku subcounty
and the last one in Burere in Buhweju district. All those branches serve both rural and pre-
urban members. The SACCO is a member owned savings and credit co-operative socity run by
both the board of directors directly elected during the members annual general and
management team that runs the day today administration of the SACCO. The board of directors
has members drawn from various circles of life and all have a wealth of experience in running
user-owned financial institutions. The management team has a highly trained and motivated
staff in various fields like information technology, finance loan management, community
mobilization and many other skills.

1.2 Vision
To be the preferred institution serving a growing prospering membership within Ankole region

Mission
We mobilize resources and offer credit to maximize value and economically empower our
clients and other stakeholders by offering customers focused quality services.

Objectives of the organization

 To implement strong systems and processes.
 To increase operational efficiency by maintaining PAR below 50%
 Understand and respond to the needs of clients for financial services.
 Grow active membership to 20,000
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  Highly skilled and motivated staff.
 To promote sound governance principles that will protect the interests of the stake
holders
 To provide high quality products
 To mobilize memberships from diverse areas including Sheema, Bushenyi, Mbarara and
Buhweju
 To strengthen member’s income by increasing their savings to 30% per annum.
 To support and strengthen the community to generate income from productive self-
employment through provision of loans at reasonable interest rates.
 To provide members and non-members with educational programs on savings loans and
other financial services and products. Their uses and consumption as well as consumer
protection programs regarding to financial services and general cooperative issues.

1.3 Target population

The SACCO targets both rural and the pre-urban members with in the Ankole region.

1.4 Products/ services offered

 Business trading and commerce loans. These are given to business men/women to
increase their production capacity.
 Group savings account. These are savings accounts for registered groups
 Minor accounts; these are accounts that are held by individuals below eighteen years
for instance junior accounts and student account.
 Agriculture loan; These are given to established members in order to improve their
production.
 School fees loan; These are given to the parents who are intending to pay school fees
for their children.
 Emergency loans; These are loans given to the business men for emergency purposes
for instance abrupt deal of buying land among others.
 Solar loan; These loans are given to people in order for them to access solar services.
 Boda-boda loan; This kind of loan is given to people who are intending to acquire motor
cycles in order to make their ends meet.
 Home improvement loan; it is given to SACCO members who are intending to improve
their homes for instance renovating their houses by buying furniture among others
 Keeping important and confidential documents for the clients in the safe custody for
instance wills and academic documents.

1.5 Sources of funding

 Share capital from members. For an individual to qualify to be a member of Mushanga
SACCO ltd one must have share capital worth ten thousand shillings and even to get a
loan one must buy another share which is also worth ten thousand shillings.

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 Loans from authorized institutions, sometimes the SACCO gets loans from other
financial institutions.
 Mushanga SACCO gets its funds from sources like commissions entrance fees, loan
application form and other charges
 Members savings. Members are obliged to at least save ten thousand shillings on their
accounts per month and it’s this money that the SACCO uses to finance its operations.
 The SACCO also gets its funds from donors such as Uganda Credit Savings Co-operative
Union a process association of micro finance institutions of Uganda and micro finance
support center. Any other legible source.

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11
 CHAPTER TWO
Management of the internship exercise

2.0 The role of the organization

Holding education programs on savings, other financial services, products they offer and other
services to the clients. This helps clients to get attuned to the activities of the SACCO

Credit programs and services based on the borrower’s repayment capacity and this is to
acquaint capable clients with loan opportunities.

Savings mobilization programs. This is of great significance to the organization since it increases
share capital and membership of the SACCO.

Conducting individuals and joint finance programs and services with other organizations with in
the sane industry and that has similar objectives.

2.1 The role of the loans department to the organization

Discover the loans disbursed with the aim of the distributing collected money to other clients
who are seeking for loans and to fuel the operations of the organization.

To appraise client’s loans so as to increase Mushanga SACCO loan portfolio.

To sensitize the client on the importance of loans. This has helped clients to appropriately use
loans and re-pay the money within the prescribed time.

To disburse loans after a memorandum of understanding with the management and accounting
department. This was through credit meetings that were held on Tuesdays and Thursdays
clients were approved by the committee before disbursement.

2.2 Duties performed by the loans department

Credit supervisors
He offers help to credit officers in case of serious problem that is beyond their control.

He bridges the gap between credit and other departments of the SACCO and credit officers.

Making decisions within the credit department that is when to disburse and not to disburse
basing on the clients saving and payment history

Making sure that disbursed loans are recovered in time through reminding and encouraging
credit officers to put in more efforts in recovery
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Credit officers
To carry out regular client monitoring and reminding them to pay the installments of their loans
and this is best done through calling the clients reminding them of their due dates.

To prepare and submit loan portfolio reports to the credit supervisor who later submits them to
the manger.

They have an obligation to conduct loan approval and loan recovery through going into the field
to see loan defaulters

It’s also their duty to fill the loan forms for the clients.

Loan assessment; Credit officers are also responsible to do loan assessment of the securities
pledged by their clients to see whether they are worth the money they want.

2.3 The role of agency supervisor

He played the role of taking me through the orientation period whereby he took me to
different departments of the organization.

He informed me of the institutions objectives, rules and regulations by making a brief

description of each.

He helped me in developing a work plan that clearly delineated my roles and responsibilities
during the first week of service.

He assigned and managed the day to day activities of the internship exercise evaluated the day
to day performance and provided progress report to the general manager who was the overall
coordinator of the internship at the SAACO.

He played a significant role in acting as liaison between the organization and the University.
Thus making the ground fertile for both institutions to work together effectively.

He provided the university supervisor with feedback and suggestions regarding the practicum
procedures and policies that is by making communications with the University supervisor when
he was at the agency filling the assessment questionnaire hence nullified that the internee has
been at the agency.

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2.4 Roles of the university supervisor
The university supervisor supervised, guided, interacted with me during the time he came at
the agency and interacted and also discussed with the agency supervisor on matters concerning
the development of the practicum exercise.

The University supervisor evaluated my performance basing on the internship requirements.

The university played the role of acting as a liaison between the university and the organization.
He guided me on how to make a report i.e. the internship report.

The supervisor awards marks to the internee relevant to the overall performance as per
internship report.

2.5 Role of the student

To attend regularly and do the work at Mushanga SAACO as expected.

To participate in all SACCO activities like attending staff meetings and credit meetings.

To adhere to the rules and regulations of the organizations.

To consult the agent supervisor and other staff members in order to get the necessary
information.

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 CHAPTER THREE
Findings and observations

3.0 Introduction
This chapter consists of experience, knowledge and skills gained and it also includes personal
contribution to the organization. Of course the essence of carrying out the internship is to gain
skills, knowledge and experience and it was achieved to a larger extent basing on the facts
below despite the challenges that were faced during the practicum.

3.1 Responsibilities I was assigned to do

I was assigned to the responsibility to work alongside tellers i.e. both receipt and payments
departments.

I was assigned the responsibility to extract ledger minimum balance from July to December
2016 and shares as at August 2016.

I was assigned the responsibility of arranging clients’ files in the shelves basing on their account
numbers.

I was assigned with the responsibility of filing till sheet, collection sheet, daily payment sheet
and even calculating them to come up with what amount should be taken back to the reserve.

I was assigned with the responsibility to prepare non cash vouchers in the credit department.

I was assigned with the responsibility to fill loan forms for the clients since some of them didn’t
know how to write.

I was assigned with the responsibility to delineate different products and services offered by
SACCO to the new clients that wished to open new accounts.

I was assigned with the duty enter ledger extractions of minimum balance from July to
December and shares as at August 2016 into the computers.

I was assigned with the duty to design charts of different loan products offered by the SACCO
that were pinned in the credit office.

3.2 The following are experience, skills, knowledge acquired

I gained the skills and knowledge on how to prepare non cash vouchers by debiting loan
account and crediting savings account.

I gained the skills and knowledge on how to do proper record keeping for instance like
arranging files according to their numerical order as this makes easy to get the required file.
15
I gained the skills and knowledge on how to interact with different people hence improving on
my interpersonal skills.

I gained also the skills and knowledge on how to use computers. Due to technological
advancement Mushanga SACCO is using management information systems (MIS). This helped
me to learn how to record information in computer.

I also gained skills and knowledge on how to do loan recovery because I went to the field with
credit supervisor to do the recovery.

I gained the skills and knowledge in calculating and preparing different financial statements for
instance daily collection sheet, till sheet, waste sheet, daily payment sheet, trial balance as well
as balance sheet.

3.3 Relevance of the field work activity or program to the theories learnt in the lecture
room
Communication skills learnt in the lecture room was influential in communicating with staff
members and handling client’s complaints.

Introduction to information technology learnt in the lecture room acted as a pillar to me in

feeding information to the computers.

Marketing skills learnt in the principles of marketing and marketing management helped in
marketing the organization through mobilization of new members to join the organization.

Management Information system has also been of great value to me during my practicum. MIS
was vital because the organization operated a defined system and I was able to manage the
system for instance not to go in to the system before it is started from the central point.

Research methods learnt in the lecture room also helped in computing and organizing this
report.

Accounting skills gained in the lecture room used to prepare non cash vouchers in the credit
department whereby the loan account was debited and savings was credited.

I used business finance and quantitative methods learnt in the lecture room to make loan
repayment schedules for the clients.

Business ethics also helped me to observe the ethical conduct of the organization.

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3.4 Personal contributions to Mushanga SACCO Ltd
I designed charts showing different loans products offered by the SACCO that were pinned in
the credit office in order for the clients to easily identify the loan products they want and the
requirements.

I arranged the clients’ files in the credit department and this helped the credit officers to access
the information they want as easy as possible.

Preparing daily collection sheet, till sheet, daily payment and waste sheet. This eased the work
of an accountant when entering the information into the systems of the organization.

Opening accounts for new members and this increased share capital and membership of
Mushanga SACCO Ltd

Doing recovery; this was done through going to the field and physically sees the defaulters and
reminds them to pay. This reduced Mushanga SACCO’s loan portfolio at risks.

New member’s mobilization; This was done through sensitizing people to open accounts with
the organization. This increased the SACCO’s share capital and membership.

3.5 Challenges faced by Mushanga SACCO Ltd

Due to lack of constant income, the saving culture of some members is wanting. This
economically affects the organization’s operations as it leads to low liquidity hence to late
disbursements. The organization has gone as far as pinning the names of the people with poor
saving culture on the notice board.

Limited staff; The SACCO I facing a problem of low staff members and this gradually affects the
progress of the organization for instance the credit supervisor pursued two roles that is working
as credit supervisors and at the same time as credit officer due to lack of enough credit officers.

Competition from other institutions in the same industry; This is detrimental to the progress of
the organization since it reduces share capital and membership of the organization.

Low saving mobilization; This is detrimental to the growth of share capital and membership for
instance for the time I spent there, we did not organize any outreach for savings mobilization.

Lack of sensitization of borrowers; Some borrowers borrow money as a result of band wagon
effect. Therefore, they don’t know the importance of those loans and in the related
development they don’t know the consequences that may arise from failure to pay their loans
installments like recovery fees among others.

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Defaulters; Some clients take loans and they are not willing to pay on their due dates as per
their payment schedule. This makes the progress of the organization to stumble as it reduces
liquidity of the organization.

3.6 Problems faced during the internship

Economic hardships; This greatly affected me during the internship since it was not easy to raise
money for transport and meals. I would sometime spend my days on empty stomach and this
convenience me.
Climatic conditions were not convenient to me during the internship. This was because of too
much sunshine that was experienced all day long.

Hostile clients; Some clients were not co-operative hence dealing with them was a real tag of
war for instance while filling the loan application forms, there is a part where cash inflows and
outflows of the client are required but it would be very difficult to get that information.

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 CHAPTER FOUR
Conclusions and recommendations.

4.0 Introduction.
Having spent two months at the agency trying to put theories learnt in tutorials into practice,
this chapter embraces the student with an opportunity to absolutely give his or her personal
assessment of the organization basing on his or her pedigree.

4.1 Conclusions
To put the last nail into the casket, statistics show the mush rooming of SACCOS in Sheema
district and the country at large. This has bolstered and amplified intense competition with in
the sector. However, Mushanga SACCO ltd is selling its soul to the devil in order to maintain its
competitive advantage.

This is through maintaining and improving the quality of services to the clients as this helped it
to triumph. The SACCO has been able to achieve this through walking the talk that is following
its mission, vision and objectives. Albeit the triumph, Mushanga SACCO Ltd is facing a number
of challenges raging from limited staff, high operational costs among others. Basing on the
resilience of the organization which is a result of employing highly motivated staff equipped
with wealth of knowledge, the SACCO has been able to devise the possible means to burry
those problems hence making it to flourish in the region.

To me the internee it has been epic because plethora of skill and knowledge were imparted to
the student. However much it was fascinating for me to carry out internship at Mushanga
SACCO, I faced some diminutive challenges and these rotated around my economic status. But
since the quintessential of the study was to acquire knowledge and getting attuned to the
working environment am pretty sure that I achieved what took me there since I did not
squander my time.

4.2 Recommendations to the organization.

I recommend Mushanga SACCO Ltd to buy more equipment’s such as computers to
complement the existing ones in order for the to have work done within the prescribed time.

I recommend it to revise its savings mobilization methods because there are some loopholes in
the department.

I recommend it to employ more staff in order to bury the problem of limited staff as this will
improve on service delivery to the clients.

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I recommend it to put more emphasis on credit department through supporting the operations
since it is the quintessential organ of the organization.

I recommend Mushanga SACCO Ltd to request its staff members to always put on their
uniforms and always have their identity cards for easy identification by the clients whenever
they need any services in the organizations this will fuel co-operation and co-ordination
between the SACCO and the clients.

4.3 Recommendations to the university

I recommend the University to always let the students do their internship twice because time
for internship that is two months is not enough to do all the required work. More to that some
organizations don’t allow internees to utilize all the two months but instead give them
schedules like three or two days a week.

I recommend the University supervisor s to always get into contact with the agency supervisors
soon after the start of the internship as this will help the agency supervisor to acquaint
students with the required knowledge.

I recommend the university to bench mark other institutions that start to collect money for the
internship immediately from first year. This can perhaps try to solve the problem of destitution
among the students during the internship.

I recommend the University to always have a pilot study of places from where the students are
going to do their internship from because some students choose places which are not
significant to their careers.

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APENDEXIES
Appendix 1;

Work Plan

DAYS ACTIVITIES TIME

 Staff meeting  7:00am-8:00am

 Receiving clients  8:30am-4:00pm
MON

 Receiving clients on  8:30am-4:00pm

the inquiries desk
TUE

 Receiving clients in the  8:30am-4:00pm

teller both depositing
WED and paying

 Entering cash in the  8:30am-1:00pm

books of accounts  1:00pm-4:00pm
THUR  Receiving clients on
the inquiries desk

 Receiving client on the  8:30am-4:00pm

inquiries desk
FRI

 Receiving clients in the  8:30am-1:00pm

teller both depositing
SAT and paying

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Appendix 2
Weekly progress Chart as at 10/06/2017

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Appendix 3
Weekly progress Chart as at 17/06/2017

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Appendix 4
Weekly report as at 23/06/2017

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Appendix 5
Organization Chart

AGM

Audit
BOD
committee

General Senior Credit

Accountant
Manger officer

Branch Accounts
Manager assistant

Accounts
Credit officer
assistant

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