WALLAGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF PUBLIC ADMINISTRATION AND
DEVELOPMENT MANAGEMENT (PADM)

YEAR OF STUDY: 2O24

Practical Attachment on Cooperative Bank of Oromia in Qerca Branch

NAME: MELAKU BEKELE…………ID NO 1408412

SUBMITTED TO: PADM DEPARTMENT

SEPTEMBER 2024

NEKEMTE, ETHIOPIA

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 Table of Content

Table of Contents
ABBREVIATION AND ACRONYM.....................................................................................v
ABSTRACT...........................................................................................................................vi
CHAPTER ONE..........................................................................................................................1
1 INTRODUCTION....................................................................................................................1
1.1 Historical Background of the Organization.........................................................................1
1.2 Vision, Mission, and Objective of the Organization.............................................................2
1.3 Objectives of the organization: -........................................................................................2
Values of the organization.......................................................................................................3
1.4 Beneficiaries of the Cooperative Bank of Oromia................................................................3
1.4.1 Linkage with other organization......................................................................................3
1.5 Organizational structure of CBO........................................................................................3
1.6 Gender profile in CBO.........................................................................................................4
1.7 Management and Administration......................................................................................4
1.8 Strategies (Salient Features) of the organization.................................................................4
1.9 Future strategic plan of the organization...........................................................................5
CHAPTER TWO.........................................................................................................................6
ACTIVITY REPORT.....................................................................................................................6
2 Background of department...................................................................................................6
2.1 Objective and major responsibility as well as activities of the department or division........6
2.2 Performance Evaluation of My Activities.........................................................................6
2.3 Objectives of practical attachment.....................................................................................8
2.3.1 General objective............................................................................................................8
2.3.2 Specific objective.............................................................................................................8
CHAPTER THREE.......................................................................................................................9
METHOLOGY............................................................................................................................9
3.1 Methods to carry out practical attachment.........................................................................9

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 CHAPTER FOUR......................................................................................................................11
RESULT AND DISCUSSION.......................................................................................................11
4.1 Activity Carried Out by Cooperative Bank of Oromia........................................................11
4.2 Financial Statements........................................................................................................12
4.3 Assets of Cooperative Bank of Oromia..............................................................................13
4.4 Benefits obtained from the Organization..........................................................................14
4.5 SWOT Analysis of the Organization..................................................................................15
CHAPTER FIVE........................................................................................................................17
SUMMARY, CONCLUSION AND RECOMMENDATION..............................................................17
5.1 Summary..........................................................................................................................17
5.2 Conclusion........................................................................................................................18
5.3 Recommendation.............................................................................................................18
REFERENCES.....................................................................................................................19

Figure 1 Organizational structure of CBO......................................................................................................4

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 ACKNOWLEDGMENT

First of all, I would like to thank God (Allah) for his miraculous time to let us accomplish
everything. I start and also for his help to go through every event success fully up to time. Also I
would like to who given their valuable time to us by how to do in the practice and also how would
write us report. Finally I would like to thanks all staff members who work in Cooperative Bank of
Oromia Qerca branch especially the manager of the cooperative bank of Oromia Daniel Jilo (B.Sc),
casher Abinet Degefe (B.Sc) and other staff members. All are highly contributed to the success of us
attachment for 30 days

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ABBREVIATION AND ACRONYM
CBO ------------------------------ Cooperative Bank of Oromia

S.C -------------------------------- Share Company

ETB -------------------------------Ethiopian Birr

CSO -------------------------------Customer Service Officer

TD ---------------------------------Tax Deposit

TR ---------------------------------Tax Rate

CPO -------------------------------Certified Payment Order

SWOT ----------------------------Strength, Weakness, Opportunity, Threat

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 ABSTRACT
Practical attachment is one of the compulsory learning task of research in public administration.
This task is intended to expand the understanding and critical thinking. The objectives of the
practical attachment are to see the theoretical part in the field of public administration and
development management. It uses to realize the theoretical expectation to real work situation
through developing awareness and field experience in Cooperative Bank of Oromia (CBO). The
objectives of this organization is to realize its vision, missions and values of the Cooperative Bank of
Oromia is put down that to promote saving culture and create access to loans and to maximize
shareholders value.

CBO is mutual society formed, composed and governed by working people themselves for
encouraging regular saving lending small loan and provides others service such as local money
transfer, demand deposit and international banking service. This study is to assess the challenge and
opportunity of CBO such as recovery mobilization of saving from members import valuable
cooperative education and enrolment members. In the organization the main practice as credit,
debit, save account and others. To obtain relevant information for this attachment, there are two the
most methods of data collection. Those are primary data and secondary data. In the organization
there about 16 employments work in their own office. The organization has a great role for the
economic development.

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 CHAPTER ONE

1 INTRODUCTION
Practical attachment is one of the compulsory learning tasks of research in public administration.
This learning task is intended to expand the understanding and critical thinking. It also enables to
develop thoughts and goals through attaching to civil society organization and observe the
practical working environment and share the new insights and the knowledge to have gain.

Practical attachment is a practical-based practical training experience that prepares trainers for
the tasks they are expected to perform on completion of their training.

The term “practical attachment” is used for all learning tasks to mean any approved practical
based practical work carried out by student for the purpose of teaching in places outside the
university but where the university is responsible for the supervision and evaluation of these
practical activities of its students.

1.1 Historical Background of the Organization

Cooperative Bank of Oromia (CBO) was registered commercially on October 29, 2004 in
accordance with article 304 of Commercial Code of Ethiopia. It was established in line with
proclamation no. 84/1994 with authorized capital of ETB 300 million (Cooperative Bank of
Oromia Annual Report).

CBO started operation on 8th march 2005, with paid up share capital of ETB 112 million. It is a
full-fledged private commercial bank in Ethiopia. As of October 2016, the Bank has above
1,000,000 account holders, more than 200 branch network and has greater than 1,800 agents
spread throughout the country. Cooperative Bank of Oromia has ETB 12.4 billion
Asset, ETB 1.4 billion Capital and ETB 9.7 billion Deposits (Cooperative Bank of
Oromia Annual Report).

During fiscal year 2022/2023, Cooperative Bank of Oromia total deposit position of ETB 116.25
billion as of june 30, 2023. Conventional deposits constituted the majority, representing 83.3%

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(ETB 96.83 billion), while the remaining 16.7% (19.42 billion) went to interest-free banking
deposit.

Currently, the Cooperative Bank of Oromia is one of the most profitable banks in Ethiopia
having a total asset value of more than ETB 140.52 billion. The bank has more than 760 branch
networks, more than 13.4 million account holders, and more than 15,481 employees.

Its head quarter is located at central Addis Ababa, Africa Avenue Flamingo area. The Bank has
broad ownership base and diversified ownership structure. This report also focuses on all about
the organization situation, the role of bank and also contains the final conclusion and
recommendation.

1.2 Vision, Mission, and Objective of the Organization

1.2.1 Vision: -

The vision of Cooperative Bank of Oromia is:-

 To be competent, reputable and socially responsible Bank in Africa.

 Leading the way in financial inclusion, sustainability, and community empowerment for
a brighter future.

1.2.2 Mission: -

 To Provide full-fledged and customer responsive banking services for cooperative

societies, individuals, & other entities with special emphasis to agricultural and agro-
based businesses financing.
 To maximize shareholders value through use of competent and disciplined employee,
visionary leaders and modern banking technologies.

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1.3 Objectives of the organization: -
 To realize its vision, mission and values of the Cooperative Bank of Oromia is put down
the following main objectives.
 To promote saving culture and create access to loans
 To maximize shareholder's value

Values of the organization: -

The values of the organization are embracing the following. Those are: -

 Respect to social-culture attributes of the people

 Integrity, honesty and loyalty
 Valuing customer’s comment
 Accountability and social responsibilities
 Professionalism
 Transparency
 Team spirit and shared vision

1.4 Beneficiaries of the Cooperative Bank of Oromia

Since in Cooperative Bank of Oromia there are a number of beneficiaries are present from those
beneficiaries the most and major consumers are:

 Bank customer
 Youth
 Children (from 0-15 age)
 Women
 Oromia credit and saving institution.

1.4.1 Linkage with other organization

In the CBO there is a linkage with other organization like Ethio telecom. The main purpose of
this linkage is for sharing of their experience, share their benefits and to solve different challenge
with each other.

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1.5 Organizational structure of CBO

Branch Manager

Assistance Manager
Auditor Accountant

Cash aid
Chief Casher CSO Maker

Figure 1 Organizational structure of CBO

1.6 Gender profile in CBO

As we know before gender is a socially constructed idea, in the cooperative bank of oromia
gender has a great role and has a great contribution to do the bank activity easily. In the
organization these is no gender discrimination that men and women are equal participation to do
their work in the bank.

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 1.7 Management and Administration

In the bank there is its own management and administration to do their work
easily. As we know that management is the act or skill of controlling and
making decisions about a business and also that administration is a
government or part of a government that is identified with its leader. So in
the organization, CBO there is its own management and administration that
how to do their work. In the bank there is its own district. The district place
for CBO is Hawassa district. The purpose of this district is how to do their
work, how to placement office, and also when employments are dismissing
from the work.

1.8 Strategies (Salient Features) of the organization

This organization has the following strategies to achieve the functional objectives and goals:-

 Broad ownership base and diversified ownership structure

 First bank of its kind in the country
 First private bank in the country established with big up capital
 Social and Cultural values oriented services

1.9 Future strategic plan of the organization

The organization has their own strategies that used for in the bank to do their work in the past.
the organization have their own strategic plan for the future. From those strategic plans some are:

 To give service for the remote area who does not get the service from the bank
 To increase customer service
 To increase team sprit
 Plan to increase work time
 Increase customer satisfaction better to now
 Plan to enhance organization culture
 Plan to increase profitability and market share
 Plan to improve information technology capability

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 CHAPTER TWO

ACTIVITY REPORT

2 Background of department
Cooperative Bank of Oromia Qerca branch is one of the branches of
Cooperative Bank of Oromia. It has been established in 2009 E.C. It was
located in West Guji zone, Qerca woreda and also Qerca town. Cooperative
Bank of Oromia Qerca Branch has 16 employees and 15000 customers.

Customer service officer ( 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.

2.1 Objective and major responsibility as well as activities

of the department or division
In the Cooperative Bank of Oromia each employees has their responsibility,
objective to perform and activity division for employers.

o To ensure standardization and uniformity in the customer service process.

o To have single source of reference to perform
o To provide efficient and quality service to its customer etc.

2.2 Performance Evaluation of My Activities

From the first day that I have started practical work on customer service
department;

 I could understand how to deliver bank service to customers

 I could understand the different type of communication in the organization at
all
 I have good communication with others at work place

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  To ask necessary data I could communicate with my manager from time to
time etc.

Problems encountered on the job and remedial measures

There are some problems which affect me on my activity of 30 days. Some of
these problems are from the organization and some are from customers. As
organization some the problems are lack of seats, lack of user (access) for me and
others are the problem of light and network those hinder my activities to not serve
customer properly. From customers some customers don’t care about criteria’s to
be fulfilled properly rather than looking only about the service.

 Some of the customers don’t sign on the ticket and some signature on the
ticket and on the book are different
 No correct order of sender name which is difficult to serve customer
 Some are careless to respect the employees and rule
 Some of them bring incorrect account which the system is not read

Remedial solution I have taken

o I told to them as the customer respect the rule
o Through customer I have told to them to fill criteria properly
o I have told to branch manager to find solution how customers fill all
criteria
o I told to customers sign correctly the same with sign on account book

Problem division or department or suggested

solutions
The major problems that face the department are the following:

 There is a big internet connection problem especially in the first two weeks
I started my practical attachment.
 Some workers have problems on their behavior and didn’t give proper
service to customer.

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Suggested solutions for the problems
 Asking concerned body to get enough networks that help to provide proper
service for customer.
 Some misbehavior that disturb working condition and improperly, must be
punished according to rules and regulation of the organization.

2.3 Objectives of practical attachment

2.3.1 General objective
 To review in the field of public administration and development management through
the Cooperative Bank of Oromia as Qercha branch

2.3.2 Specific objective

 To know our theoretical expectation to real world situation through developing awareness
and field experience
 To test theoretical knowledge and tool learned in class
 To identify different value chain actors, activities and their role in the class

CHAPTER THREE

METHOLOGY

3.1 Methods to carry out practical attachment

To in the cooperative bank of Oromia for mean practical attachment and seminar course, I have
passed a number of methods that firstly I take the letter for organization from Wallaga University
to cooperative bank of Qerca branch and that organization the manager of organization MR.
Daniel gives his voluntaries that I will join and see everything that what I have want. From

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August 1, 2024 to August 30, 2024 in the organization, in this attachment we use different ways
of data collection and analyzed method those data methods are:

1. Primary data collection method

2. Secondary data collection method
1. Primary data collection method

Primary data are the source of information that obtained directly from the source by the owner of
the data, in the cooperative bank of Oromia. I obtained primary data by taking interview who
work in the bank about how to do debate and calculate credit others. And also to obtained data
by direct observation in the CBO.

2. Secondary data collection

Secondary data are source of information obtained and collected by getting different
documentary file of the CBO. Which are stored in the office, workable and usable of the
organization.

Terminologies related to this topic: -

Transactions: - transaction is the occurrence of an event or condition that must be recorded.

The record may be made by hand, by printing machine or electronic device. A particular
business transaction may lead to an event or condition that result in another transaction. For
Example, the purchase of merchandize on credit will be followed by payment to the creditor,
which is another transaction.

Receivables: -are claims against debtors evidenced by written promise to pay a sum of money at
definite time to the order of a specified person or to the bearer.

Payments: -are advance payments of expenses such as insurance, rent and also supplies.
Payment is an obligation evidenced by a written promise.

A debit: - is an accounting entry that either increases an asset or expense account, or decreases a
liability or equity account. It is positioned to the left in an accounting entry.

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A credit: - is an accounting entry that either increases a liability or equity account, or decreases
an asset or expense account. It is positioned to the right in an accounting entry.

CHAPTER FOUR

RESULT AND DISCUSSION

4.1 Activity Carried Out by Cooperative Bank of Oromia

1. Saving Account:-It is an interest bearing deposit that CBO provides for Natural and legal
persons who can fulfill the Bank’s & legal requirement. The minimum balance to open is Birr
50.00. However, it may be opened & maintained with zero balance for two months.

2. Non-Interest bearing saving account:-It is a non interest bearing saving account that is
opened to fulfill the requests of those customers who don’t want interest payment for their
deposits.

3. Demand Deposit Account:-Demand Deposit Account (current or checking account) is a non-

interest bearing account & is opened or operated by literate customers only. The minimum
amount required by the bank to open a current account for individuals or individual trader is birr
500 & for others birr 1000.

4. Demand Account Bank Statement: -Bank statement is a regular record issued by the bank
showing the credit & debit entries, particulars & remaining balance in a customer’s checking
account.

5. Fixed Time Deposit Account:-It is a type of deposit which is received for a certain fixed
period of time with negotiable interest rate which is higher than the prevailing saving interest
rate based on the magnitude of the fund & time period. The minimum balance acceptable for
fixed time deposit is birr 100,000.

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6. Certified Payment Order (CPO):-It is a type of negotiable instrument prepared as per the
request of the customer & is payable up on presentation. It is endorsable & valid for six months
and etc.

7 A payroll: - is a company's list of its employees, but the term is commonly used to refer to:

 The total amount of money that a company pays to its employees.

 A company's records of its employees' salaries and wages, bonuses, and withhold taxes.

. The company's department that calculates and pays these.

Payroll in the sense of "money paid to employees" plays a major role in a company for several
reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes
considerably affect the net income of most companies and because they are subject to laws and
regulations.

From a human resources viewpoint, the payroll department is critical because employees are
sensitive to payroll errors and irregularities: Good employee morale requires payroll to be paid
timely and accurately. The primary mission of the payroll department is to ensure that all
employees are paid accurately and timely with the correct withholdings and deductions, and that
the withholdings and deductions are remitted in a timely manner. This includes salary payments,
tax withholdings, and deductions from paychecks.

4.2 Financial Statements

The accounting statement that communicates the needed information to users is called financial
statement.

The essential and principal financial statements are: income statement, statements of owners’
equities, balance sheet, and statement of cash flow.

1. Income Statement: it is a summary of revenue and expense for a given period and it shows
the net operation effect of the enterprise in a given period. Revenue-expenses = net income
(loss)

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I. Revenues: are earned from the sales of goods or services rendered by the enterprise for
which the enterprise will receive (has received) cash or something else of value.
II. Expenses: are the measure of resources expended or used by the enterprise for which the
enterprise will receive (or has received) cash or something else of a value.
III. Net income: is the excess of total revenues over total expenses. Net Loss is the excess of
total expense over total revenue.
2. Statement of Owner’s Equity: It shows the changes in the owner’s equity of the business
enterprise over a given period of time.

3. Balance Sheet: It shows, the assets of an enterprise on a given day and the clams against these
assets, that is the liabilities and owners’ equity on a specified day. It shows the financial position
of the enterprise for this reason it is also called the statement of financial position.

4. Statement of cash flows: it is a summary of cash receipt and payments of the enterprise over
a given period. In general, it shows cash flow from three sources.

 Operating Activity: cash sale, collection of credit sale/ cash and credit purchase.
 Investing Activity: the purchase/sale of equipment’s, properties, plants, and long term
investments.
 Financing Activity: the purchase of stock, bonds, and payments of dividend.

4.3 Assets of Cooperative Bank of Oromia

Any physical thing /tangible/ or right /intangible/ that has monetary value, and which is owned
by an enterprise is an asset. For presentation purpose on the balance sheet they are classified in to
two groups: -

1. Current Asset
2. Plant Asset
a. Current Assets: are assets which are reasonably expected to be realized in cash or sold or
used up (consumed) within one year or less, for the normal operation of the business.
Example: Cash, Notes Receivable, Account Receivable, Supplies, Prepayments …etc.

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b. Plant Assets: tangible assets used in business that are permanent or relatively fixed in
nature are called plant or fixed asset. They include equipment, machinery, buildings, and
computer. But as time passes the assets ware out and they are said to depreciate.

Depreciation: is the decrease in usefulness is business expense. The difference between the two
balances is unexpired or undirected cost and it is called the book value of the asset. The book
value may be presented in the balance sheet.

4.4 Benefits obtained from the Organization

In the organization of cooperative bank of Oromia, so many series of activities are obtained.
From those benefits of the organization some of them are:

 The customer saves their many in the bank

 Increase the profit of the bank when different unions are debit in the bank
 The customers are finish their affair on the time because of the organization increase their
work time up to one o’clock at night.
 For the students as an internship, Eg, PADM Student, Accounting and Economics
Students.

Problem faced by the organization and its solution

In the organization of cooperative bank of Oromia there are a number of problems are faced and
some are solved of them. As I see when I stay in the bank there is the problem of:

 Network problem: This problem is faced in the organization and it is the obstacle to do
their work in the bank. So this problem is solved by create agreement with ethio telecom.
 Lack of employment: In the bank there is lack of employment to do their work in the
bank. This problem does not still get its solution but they plan to the future by adding
additional employments.
 It lacks in giving immediate response for what the customers are asking; due to lack
of the employment and customer increment.

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4.5 SWOT Analysis of the Organization
SWOT analysis was the process of accessing the situation existing in within the organization and
its environment

Strength

 Good relationship with the external environment like unions, customer and
NGO’s.

 It is responsible common economic for seeking solutions to the problems of its

members

 Proved like loan, saving-micro insurance, internal and external money transfer
and advisory services.

Weakness

 Some workers of the bank not give service to the customer properly.
 Some employees fail to follow work ethics.
 Cooperation is not fully practiced
 Lack of enough training at regular time

Opportunity

 Accessible to the central market.

 Existence of graduate students in the area they lack.

 Government policy and strategy towards the promotion of cooperatives.

 The expansion of branch office.

Threat

 Backwardness of the people evidence about saving and credit followed by traditional
saving activity.

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There is a conflict between the employers and supervisors since there is no clear information in
the office.

Relation of theoretical learning and practical learning

From what we learning in the class that we see different institutions and their activity which are
included them and their coordination between one activity with each other end how to
information is flow between one type of activity of the organization to the other.

 When I stay in the organization there is the relation that how to do some activity in the
organization, what challenges and problems are and ways of their solution. And also the
importance of organization in the economic. In the cooperative bank of Oromia, there is
a great role of economic development of the user that the customer gained some benefits
from the bank.

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 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

Cooperative Bank of Oromia (CBO) was registered commercially on October 29, 2004 in
accordance with article 304 of Commercial Code of Ethiopia. It was established in line with
proclamation no. 84/1994 with authorized capital of ETB 300 million.

CBO started operation on 8th march 2005, with paid up share capital of ETB 112 million. It is a
full-fledged private commercial bank in Ethiopia. As of October 2016, the Bank has above
1,000,000 accountholders, more than 200 branch network and has greater than 1,800 agents
spread throughout the country. Cooperative Bank of Oromia has ETB 12.4 billion
Asset, ETB 1.4 billion Capital and ETB 9.7 billion Deposits.

3. Transactions: - transaction is the occurrence of an event or condition that must be

recorded. The record may be made by hand, by printing machine or electronic device.
4. Any physical thing /tangible/ or right /intangible/ that has monetary value, and which is
owned by an enterprise is an asset.

5. In Cooperative Bank of Oromia there are a number of beneficiaries are present from
those beneficiaries the most and major consumers are:
 Bank customer
 Youth
 Children (from 0-15 age)
 Womens
 A payroll: - is a company's list of its employees, but the term is commonly used to refer
to:
 The total amount of money that a company pays to its employees.
 A company's records of its employees' salaries and wages, bonuses, and withhold taxes.

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5.2 Conclusion
Generally, this practical attachment is conduct on Cooperative Bank of Oromia Qerca branch.
This practical attachment deals with over all activities of the organization focus on the
accounting and financing practices. The main objective of the organization, mission, vision and
value of the organization is also observed. I conclude that the company has hard working habit
so it must be keep its habit for the next working time to achieve their mission, vision and also to
achieve their objective. And also the organization must be highly creating high connection with
regional farmers to create great awareness about cooperatives and its role for the society.

5.3 Recommendation
I recommended on the following points for the well or smooth function of the organization or
office in the line to the intended goals.

 I am strongly recommended that there must be preservation techniques

 Cooperation is not fully practiced in the company at branch level, so the managers should
teach the workers and advice the workers to develop cooperation among the workers.
 Improving the efficiency of credit systems, especially for farmers who engage in production
of crops are better to get credit on time.
 Providing continuous training and education for general awareness among member and how
they are properly. For the organization I highly recommend that the company must be enter
additional employ to facilitate their work in the organization. And the employ must be
arriving on time to become achieve their mission, vision as well to achieve their objective.
Finally I recommended that the company must change their working system. i.e. networking
system

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REFERENCES
Cooperative Bank of Oromia Annual Reports,2012-2022/2023

Cooperative bank of Oromia Qerca branch Manual Documents,2023

The interview; information from the employers of the organization.

Experience through Practical and from daily and weekly activities.

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