UNIVERSITY OF DODOMA

COLLEGE OF xxxxx

DEPARTMENT OF yyyy

FIELD PRACTICAL TRAINING REPORT

Submitted by:

EDSSON LIKWENJA MAKWEGA

XXX-XXX-XXX (REG NO)

2023

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 DECLARATION
I, Edson Joram solemnly declare that the information presented in this document is true,
accurate, and complete to the best of my knowledge and belief. I understand that any
false statements or misrepresentations may have legal consequences.

I acknowledge that academic integrity and moral behavior are crucial, and I certify that I
did not violate either while writing this report.

I accept full responsibility for the content and presentation of this report, and I
acknowledge that any misrepresentation or dishonesty may have negative effects.

Signature: _________________ Date:

___________________________

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ACKNOWLEDGEMENT
I want to express my heartfelt appreciation to the SITCOWS organization for giving me the chance
to perform the fieldwork for the thorough field report. This experience has been beneficial in
advancing my knowledge and practical abilities in the financial industry sector and the compilation
of cash books, trial balances, and bank reconciliation statements.

I appreciate the help and advice I received from Mrs. Agnes Mbuva and the rest of the SITCOWS
team throughout my fieldwork. Their knowledge and expertise were very helpful in the
development of this study.

Additionally, I would like to thank my fellow students and coworkers who worked on this
assignment with me. The journey has been made pleasurable and educational by their efforts and
friendship.

Last but not least, I want to express my gratitude to my academic institution for providing the
means for this fieldwork opportunity and their continuous support of my academic endeavors.

This fieldwork experience has considerably benefited my academic and professional careers, and I
genuinely appreciate the assistance and cooperation I have received from everyone.

Edson Joram

The University of Dodoma

Date: ___________________________

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iii
EXECUTIVE SUMMARY
The field of practical training is an indispensable component of academic and professional
development, serving as the vital link between theoretical knowledge and real-world application.
This in-depth field training report chronicles my experiences, lessons, and achievements during my
practical training at STCOWS SACCOs Singida.

The training encompassed a range of responsibilities, including the preparation of cash books,
customer form analysis, and the creation of bank reconciliation statements. This report outlines the
journey I undertook during this period and the valuable skills and insights I acquired.

I also gained knowledge of strategies for handling both annoyed and safe customers. This part of
the practical training focused on the value of moral behavior and client involvement in
unsatisfactory customer procedures. Finally, this field training experience has increased my
understanding of the microfinance sector, improved my customer service and risk assessment
skills, and given me practical knowledge for handling irritable clients and keeping track of
effective customer records. I appreciate the chance given to me by the University of Dodoma and
SITICOWS SACCOS, and I'm eager to use these skills in my future career.

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 Table of Contents
DECLARATION..............................................................................................................................................i
ACKNOWLEDGEMENT...............................................................................................................................ii
EXECUTIVE SUMMARY............................................................................................................................iii
LIST OF ABBREVIATIONS.........................................................................................................................vi
LIST OF FIGURES.......................................................................................................................................vii
CHAPTER 1..................................................................................................................................................1
INTRODUCTION.........................................................................................................................................1
1.1 Background........................................................................................................................................1
1.2 Background of the organization.......................................................................................................1
1.3 Vision Statement................................................................................................................................2
1.4 Mission Statement..............................................................................................................................2
1.5 Organizational Core Values..............................................................................................................2
1.6 Organizational Objective..................................................................................................................2
1.7 Organizational Core activities and services.....................................................................................2
1.8 Organizational Clients.......................................................................................................................2
1.9 Organizational Structure and Department......................................................................................3
CHAPTER 2..................................................................................................................................................4
DESCRIPTION AND ANALYSIS OF THE ACTIVITIES DONE...........................................................4
2.1 Introduction to the Books of Accounts.............................................................................................4
2.2 Preparation of cash book..................................................................................................................4
2.3 Preparation of Income Statement.....................................................................................................4
2.4 Preparation of Trial Balance............................................................................................................5
2.5 Preparation of Bank Reconciliation Statement...............................................................................6
2.6 Recording Credit and Saving Balances to the Customer Ledger...................................................7
2.7 Writing Receipt..................................................................................................................................7
2.8 Preparation of Summary Information for the Relationship between Saving and Credit............8
2.9 Recording Customer Transactions, Deductions, and Payments to the Customer Books.............8
2.10 Analyzing Customer Application Forms for Savings and Credit..................................................8
CHAPTER 3..................................................................................................................................................9
PROBLEM IDENTIFICATION..................................................................................................................9
3.1 Challenges and Problems Facing an Organization.........................................................................9
3.2 Problems and Challenges Personally Encountered Associated with FPT.....................................9
3.3 Personal Efforts to address the problems encountered during my FPT......................................10
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CHAPTER 4................................................................................................................................................11
DISCUSSION..............................................................................................................................................11
4.1 The theoretical and practical relationship.................................................................................11
4.2 Skills Obtained on the Field Practical training.........................................................................12
CHAPTER 5................................................................................................................................................13
CONCLUSION AND RECOMMENDATIONS.......................................................................................13
5.1 Conclusion....................................................................................................................................13
5.2.1 Recommendations to the Organization..............................................................................14
5.2.2 Recommendation to the University of Dodoma.................................................................14
Reference......................................................................................................................................................16

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 LIST OF ABBREVIATIONS

CRM - customer relationship management

FPT –Field Practical Training

MFIs- Small Microfinance Institution

SITCOWS -Singida Town Council Workers Saving and Credit Cooperative Society

SACCOS –Saving and Credit Cooperative Organization

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 LIST OF FIGURES
Figure 1: The organizational chart for SITCOWS SACCOS displays a representative representation
of the company. The head of the organization is the chairperson, followed by the loan officer, the
account department, the loan committee, and the board of directors. 11
Figure 2 The SITCOWS SACCOS trial balance as of 28th August 2023, to show that the total debits
equal the total credits, indicating accurate financial records 14

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 CHAPTER 1

INTRODUCTION

1.1 Background
The finance industry is dynamic and constantly changing, so both personal and professional
development must have a thorough understanding of all of its real-world applications. I had the
honor of participating in a field practical training program as part of my academic and professional
development. This gave me the chance to close the gap between theoretical knowledge and
practical application.

This report serves as a thorough record of my fieldwork training experience, which I undertook at
SITCOWS SACCOS The program was a crucial component of my academic curriculum at the
University of Dodoma and lasted for six weeks. Developing practical experience and understanding
of the day-to-day activities and difficulties in the field of bachelor of commerce in finance was the
main goal of this training.

This report is designed to provide an in-depth analysis of my job-training experiences. It covers a

range of aspects of my assignment, including serving customers, creating a trial balance, an income
statement, a cash book, analyzing customer application forms, and creating a bank reconciliation,
as well as the skills I have developed throughout this job. Its objective is to provide an in-depth
analysis of the practical training experience and how it impacted career growth.

1.2 Background of the organization.

SITCOWS SACCOS, an acronym for Singida Town Cooperative Workers SACCOS, is a well-
established cooperative society that has been serving the community of Singida, Tanzania for
several years. It was founded in 1995 and officially registered on October 13, 1993, under the
Cooperative Societies Act No. 15 of 1991, with the registration number SIR 279.

Located within the Singida municipal ward of Ipembe, this cooperative society plays a significant
role in the local community by providing financial services, promoting financial inclusion, and
contributing to economic empowerment among its members.

The SACCOS primarily provides services to 300 clients, and a sizeable portion of its members are
employees of the Directorate Office, including teachers, nurses, and other professionals. This

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organization is a municipal body in Singida. This close relationship with the Directorate Office
raises the possibility of a solid partnership between the cooperative and the local government,
which improves the financial security and assistance it provides to its members.

The SACCOS is dedicated to helping its members with a variety of financial issues. It offers loans
to its members with a minimum loan of 100,000 Tanzanian Shillings and a maximum loan amount
of 20,000,000 Tanzanian Shillings. The members can use this loan service as a valuable tool to
meet their financial needs and possibly advance their economies.

1.3 Vision Statement

Our vision is to be one of the SACCOS that provide excellent services to its members

1.4 Mission Statement

Democratically saving, crediting, uplifting, and nourishing the life standards of the members.
Contributing to capital and readiness to solve challenges to get benefits as per laws and protocols
of cooperative societies.

1.5 Organizational Core Values

The core values of the SACCOS are; Purposefully bringing people together, the solution for capital
example provide a minimum working capital of 100,000 TZS to its member and a happy family
since the society encourage its member to live in harmony with each other.

1.6 Organizational Objective

The SITCOWS SACCOS objective is to provide excellent services to its members.

1.7 Organizational Core activities and services

The organizational core activities are to provide credits and savings to its members.

1.8 Organizational Clients

The SITCOWS organizational clients are employees who are employed under the directorate office
in Singida town.

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 1.9 Organizational Structure and Department

Chair
person

Loan officer

Accounting Loan
Board
department comittee

Figure 1: The organizational chart for SITCOWS SACCOS displays a representative representation
of the company. The head of the organization is the chairperson, followed by the loan officer, the
accounting department, the loan committee, and the board of directors

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 CHAPTER 2

DESCRIPTION AND ANALYSIS OF THE ACTIVITIES DONE

During the 6 weeks of practical training at SITCOWS, I worked at the accounting unit of the
SACCOS. The activities that I carried out in this unit are detailed below.

2.1 Introduction to the Books of Accounts

General, they are books used to record financial transactions that take place within a SITCOWS
and any business enterprise, helping staff members maintain accurate records and track their
organization's overall financial health. Examples of data recorded might include loan
disbursements and repayments, savings deposits and withdrawals, and any other fees or charges
associated with SITCOWS activities.

Customer ledger books are used by SITCOWS to keep track of their cash books. These books are
given to each customer and contain details such as their name, phone number, customer
identification number, SACCOS branch number, and the group number to which they belong.
These client books are used to record payments received and debt repayments, and a loan officer
stamps off the entries after each repayment.

2.2 Preparation of cash book

The process typically involves recording all inflows and outflows of cash regularly. This includes
details such as the source of funds and their purpose- such as loan payments made by members or
investments made by SITCOWS SACCOS foundation.

The task involves reviewing client income and payment ledger books. Then I complete the cash
book and bank side of the ledger after all transactions have been entered. Additionally, the
checkbook is reviewed for contra entries and the cash book is updated. Lastly, I then figure out the
balance.

2.3 Preparation of Income Statement

The income statement provides a summary of SITCOWS SACCOS' financial performance over a
specific period. The task involves using revenue recognition to track numerous forms of income,
including fees, membership dues, and interest on loans and investments. The accounting standards
were followed in the recognition of these revenues. SITCOWS running expenses, such as salaries,

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rent, utilities, and other administrative charges are included in their expense records. The
accounting principles are followed when recording these costs as well.

Also calculating net income required me to deduct all expenses from all revenues to get SITCOWS
net income. The income statement includes non-operating items, which include non-operating
revenue or expenses, such as gains or losses from investments. The income statement is then
presented uniformly, clearly showing all revenues, costs, and net income.

2.4 Preparation of Trial Balance

Trial Balance is a financial statement that summarizes the balances of all accounts (assets,
liabilities, and equity) at a specific point in time, typically at the end of an accounting period, to
ensure that debits equal credits. The objective here is to ensure that the total value of debit
transactions matches with credit transactions- thereby providing a reliable basis for analyzing
financial performance over time.

As part of my field practical, I created the trial balance using the computer program Microsoft
Excel, which entails entering transactions. SITCOWS uses a double-entry accounting system to
keep track of all financial transactions. To preserve the accounting formula Assets = Liabilities +
Equity, each transaction is recorded in the proper accounts with both debit and credit entries.
Account types (such as cash, loans, savings, etc.) are used to categorize the individual and
customer ledger accounts to which transactions are posted. The corresponding ledger accounts are
used to record debits and credits.

Additionally, I reconcile each ledger account and balance the accounts to make sure the debits and
credits balance. Any errors are fixed. Then comes trial balance preparation, where I had to create
the final balances of all ledger accounts after the accounting period, placing the total debits on one
side and the total credits on the other. The Trial Balance is in balance if both sides are equal. Last
but not least, I checked the trial balance for inaccuracies or differences. I then made changes to
correct any inconsistencies between the debits and credits. Figure 2 is the trial balance snapped a
photo to show the ledger account balance at the end of each month, accounting entry accuracy, to
identify any account discrepancies, and to track the financial health of the SACCOS as of 28th
August 2023

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Figure 2:The SITCOWS SACCOS trial balance as of 28th August 2023, shows that the total debits
equal the total credits, indicating an accurate financial record.

2.5 Preparation of Bank Reconciliation Statement

A bank reconciliation statement A bank Reconciliation Statement is a tool used to ensure that
SACCO's internal financial records match the records of their bank. The task entails collecting
bank

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statements to compile information on all transactions that have taken place in the SITCOWS bank
account over a predetermined period. comparing the bank statement with the internal financial
records (cash book or customer ledger) to look for any discrepancies. The cash book will then need
to be adjusted to reflect the internal records and the discrepancies discovered throughout the
reconciliation process.

Also identify any differences, such as unpaid bank fees, interest earned, or mistakes in the
recording of transactions, and then I document all of these differences. Then, to account for the
differences discovered throughout the reconciliation process, I make the required revisions to the
internal records. Finally, I create a bank reconciliation statement that contains a balance to match
up the two amounts. After that, it is checked for accuracy and approved by authorized staff, and
any discrepancies or outstanding matters are looked into and rectified to make sure the SITCOWS
financial records are in sync with the bank's records.

2.6 Recording Credit and Saving Balances to the Customer Ledger

I was responsible for recording each transaction that a SITCOWS member had made into their
manual ledger book during this task. The ledger is divided into three sections, the first portion lists
information about the loans, including the date, description, approved amount, balance, and
repayment date; the second part includes information about savings, including the amount received,
the amount withdrawn, and the amount saved and the third and final section is the officer's
signature.

To complete this duty, I was taking the transaction information, for instance, if the client made a
loan payment, I would mark the transaction in their book, enter the loan amount and the date it was
made, and then provide it to the appropriate officer for signature. Then I give the customer their
book back.

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 2.7 Writing Receipt
A receipt is a document acknowledging that a customer has received money or property in payment
following the provision of a service. The following information is included on receipts: the date
payment was received, the customer ledger identification number, the description (loan repayment
or savings deposit) the value of the transaction in words, and the customer's and officer's
signatures. To complete this task, I had to write receipts to customers using a carbon paper receipts
book. I had to fill out the customer's information on the receipts, have the manager or accountant
sign it, and then give the customer the original copy of the receipts while leaving a duplicate on the
book for organizational record keeping.

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 2.8 Preparation of Summary Information for the Relationship between Saving and Credit
The assignment involved compiling a list of customers that included the number of persons who
applied for loans, how many of them were authorized, and how many of those who applied to
reduce savings had their applications approved. Then I create the monthly summary by looking
over client records and comparing the data from the records.

2.9 Recording Customer Transactions, Deductions, and Payments to the Customer Books
The ledger books that SITCOWS keeps include a general ledger and specific customer ledger
accounts (which are given to the customer). When a new client joins the microfinance company,
their information is recorded in an individual and general ledger. These ledgers are often physical
books or registers. The name, account number, contact information, and any relevant identity
details of the customer are included in this data.

As part of my FPT, the duty entails first gathering and validating client information because each client is
given a distinct client identification number for quick reference. Second, when recording transactions, I had
to indicate whether they were withdrawals or deposits from savings accounts, note the type of transaction,
and finally note the running balance. Third, loan transactions, which include interest accruals, repayments,
and disbursements, are recorded in separate loan ledger books. Fourth, other transactions, like fees,
penalties, or insurance premiums, are recorded in specialized ledger books.

I also noted the deductions, which are classified into loan deductions, which occur when customers pay the
correct amount, and other deductions, which occur when customers use their savings or other sources of
income. I recorded these deductions and noted the dates as well as the amounts deducted. Interest and fees
are recorded here, including savings account interest rates, loan interest rates, deducted amounts, and
interest and fees. Finally, I keep track of each customer's running balance.

2.10 Analyzing Customer Application Forms for Savings and Credit

The task involved checking the member's card after the customer had completed the loan
application form, I had to do Information verification to check the accuracy of the data that the
customer provided and then cross-reference the information with official records like identity
cards. Also, I confirmed their savings balance and their outstanding loans, and I also looked over
the salary slip they had provided for confirmation. Then I handed the form to the accountant.

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 CHAPTER 3

PROBLEM IDENTIFICATION
The chapter presents the challenges that I faced during my FTP at SITCOWS SACCOS and the
opportunities that arose along with these challenges.

3.1 Challenges and Problems Facing an Organization

I. Technological Gaps; the SACCOS struggles with insufficient technology, especially while
carrying out daily tasks. For instance, manual systems are still used to keep customer ledger
account records
II. Slow Loan Processing and Documentation, the speed and complexity of loan processing and
documentation occasionally provide problems for F due to the use of a manual system.
III. Inadequate Infrastructure: Insufficient facilities or technology to support effective field practical
training.
IV. Coordination Issues, difficulty in coordinating schedules and resources for training sessions.
V. The organization fails to apply the screening method in loan analysis which makes the customer
diverge from the intended purpose of the loan.

3.2 Problems and Challenges Personally Encountered Associated with FPT

I. Soft skills development, I found the necessity for additional attention to the development of soft
skills to be one of the training's issues. Although the technical knowledge was efficiently
transmitted, there could have been more emphasis on developing participants' communication,
problem-solving, and customer service abilities, and this impact inability to acquire soft skills
may have limited my capacity to communicate effectively with clients, coworkers, and superiors
in a professional situation, potentially impairing my performance in the SACCOSS sector as a
whole.
II. Huge amounts of work; for example finding files, at the same time you are looked for conducting
other activities which leads to delaying of feedback to members on time. The work seems
difficult if there are a large number of customers and they need to know their status and lodge
claims.

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III. Adaptation to the work environment; adjusting to the work culture and practices of the
organization.
IV. Lack of resources and materials. During my field attachment, I came across this problem,
especially in a department where we do not have enough available chairs where we used to stand
during the arrival of customers. The department doesn’t have enough materials and resources to
accommodate a huge number of customers and field students and this becomes a challenge to
cover all operations of the whole organization.

3.3 Personal Efforts to address the problems encountered during my FPT

I. Seeking Clarification, when unsure of tasks, I actively seek advice and ask questions.
II. Language Improvement, I practiced my language abilities and, when necessary, used
translation software.
III. Resourcefulness, when faced with resource limitations, I seek out alternate sources or
solutions.
IV. Time Management Strategies, to manage my workload, I was prioritizing tasks and
making a schedule.
V. Adaptation and learning, adopted a growth mindset and learned from experiences to
successfully integrate into the workplace.

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 CHAPTER 4

DISCUSSION
4.1 The theoretical and practical relationship

The theoretical framework for understanding financial concepts, microfinance principles, and the
political, social, and economic environment in which MFIs operate is provided by the course
material. Students must understand ideas like interest rates, risk management, credit evaluation,
and financial regulations. Theoretical knowledge is transformed into practical skills through
practical training. which gives students the tools they need to apply what they've learned to actual
circumstances. Additionally, hands-on training includes operational processes, portfolio
management, loan disbursement and recovery procedures, and customer interactions.

Theoretical understanding aids students in understanding the value of financial inclusion and the
function of MFIs in reaching underserved or unbanked populations. Through practical training,
they can interact with clients efficiently, determine their needs, and offer the right financial
services.

Also, the specific social, economic, and cultural aspects of the area in which an MFI operates may
not always be taken into account by theoretical knowledge. Learning through practice enables
students to customize their strategy to the particular requirements and circumstances of the local
community.

Lastly, while practical training ensures that this knowledge is applied successfully in the real world,
theoretical knowledge provides a foundation for understanding microfinance principles. This
ultimately contributes to the success of the student's knowledge.

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4.2 Skills Obtained on the Field Practical training

I acquired a variety of skills throughout my FTP, but the following are those that I directly gained
while working.

I. Ability to work hard under no pressure, or stress and not become too overwhelmed
II. Time management, I was able to arrive at the office at the right time as settled by the
organization/Institution, be able to finish the assigned task within the time
III. Confidence; I was able to strike a balance in the workplace between being self-assured and
not conceited. I also managed to establish good relationships with the staff members I
encountered in the institutions, which allowed me to learn more about the workplace.
IV. Documentation and Record-Keeping, proficiency in maintaining accurate records and
documenting customer interactions
V. Communication Skills, enhanced communication skills, including effective listening and
conveying complex financial information to customers.

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 CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion
The SITCOWS SACCOS field practical training experience has been invaluable in giving me a
practical understanding of the microfinance sector. I have been able to deepen my understanding of
microfinance operations, client interactions, and the significance of financial inclusion thanks to
this practical experience, which has allowed me to apply the theoretical knowledge I've learned in
the classroom to real-world operational scenarios. I have improved my technical skills throughout
this training, but I have also acquired soft skills like effective communication, problem-solving,
and teamwork.

My determination to work in the microfinance industry has been strengthened by this experience,
which also gave me an understanding of the beneficial effects these organizations can have on the
lives of underserved communities. I'm appreciative of the chance to gain knowledge and support
the microfinance institution's mission, and I look forward to using what I've learned in the field in
my next career.

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5.2 Recommendations

2.1 Recommendations to the Organization

I. Invest in modern financial software and customer relationship management (CRM)
systems to replace manual ledger accounts train staff on how to use the new technology
effectively and provide ongoing support.
II. Put in place an automated loan processing system to speed things up and reduce the
amount of manual paperwork.
III. Create standardized loan documentation templates as well to speed up and streamline the
procedure and Provide staff with training so they can effectively use the new systems.
IV. Invest in modern infrastructure and technology for field practical training, such as
computer labs and internet access.
V. Develop a comprehensive loan screening and analysis process to ensure that loans are
used for their intended purposes and implement regular audits and monitoring to track
how loans are utilized by customers.
VI. Promote financial literacy among SACCOS members to help them understand the
responsible use of loans and financial products.
VII. Explore partnerships with technology providers or financial institutions to access
resources, training, or grants for technology upgrades.

2.2 Recommendation to the University of Dodoma

I. The university should include courses or modules that are especially geared toward the
development of soft skills in the curriculum. These include Communication, problem-
solving, customer service, teamwork, leadership, and emotional intelligence should all be
covered in this curriculum.
II. The university should develop experiential learning opportunities, giving students the
chance to apply and hone soft skills in real-world settings. This can include internships,
co-op programs, simulated exercises, and volunteer work.
III. The university should offer the chance for professional development workshops, and
provide seminars and workshops on soft skills like emotional intelligence, effective
communication, and conflict resolution. Professionals with extensive experience or
faculty members who specialize in soft skills can lead these workshops.

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IV. The promotion of mentoring programs, where students can be paired with seasoned
professionals who can offer direction and share their insights on developing soft skills.
V. Implement regular feedback mechanisms, such as self-assessments and peer evaluations,
to help students identify their strengths and areas for improvement in terms of soft skills.
VI. Encourage multidisciplinary projects that require students to collaborate with peers from
different fields, promoting teamwork, communication, and problem-solving skills.

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 Reference
THE MICROFINANCE ACT, (CAP. 407) _______ REGULATIONS ________ (Made under
section 60(1) and (2))

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