1.0.

BACKGROUND OF THE ORGANISATION - DELTA BEVERAGES

BINDURA UNIVERSITY OF SCIENCE EDUCATION INDUSRIAL ATTATCHMENT Report FOR DINAR ELIZABETH (BO823152) BSC ECONOMICS IN CONJUNCTION WITH

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Table of Contents Chapter 1 Acknowledgements Executive Summary Chapter 2 Table of Contents Background of the Organization History Delta Corporation Profile Vision Mission Business Ethos and Values Strategic Business Units SWOT Analysis Departmental Overview Chapter 3 Area of attachment Creditors Section Invoice Processing Payments to creditors Reconciliations Cash Office Cash book activities Petty cash disbursements
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Processing Petty cash vouchers Processing of payments Receiving cash and Reconciliations Checking of payments Balance functions Goods Received Notes Adjustments Misuses and Jobs Closure Charging Fuels Chapter 4 Conclusions Chapter 5 Recommendations

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Acknowledgments Without the constant guidance and constant supervision of the writers immediate supervisors Mrs. B.H Mubaira and Mr. M PHIRI, this report will not have been a success. She would like to extend her sincere thanks to them and also to all the staff and management of Delta Beverages-Transport Services for their kind support and help throughout the entire attachment period.

The writer would like to express her gratitude towards her parents and friends for their cooperation and encouragement which helped her in completion of this report.

Special thanks also go to the Bindura University of Science Education, Faculty of commerce especially the Economics Department for equipping her with the necessary theoretical knowledge in the accounting field.

Executive summary

The first part of this report gives a brief history of Delta Corporation. In this section, the writer answers the question how and when was this company formed? This paper will also give the reader an insight into Delta Corporations business portfolio and its operations. In this report, the writer discusses her work experience during her

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industrial attachment at Delta Beverages- Transport Services. It outlines the writers duties and responsibilities in each of the departments she worked.

Since most of the time was spent in the finance department, this report will dwell much on the operations of, and what was done by the writer in this department.

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Title Page

Name

DINAR ELIZABETH

Registration Number

B0823152

Faculty

Commerce

Department

ECONOMICS

Programme

BSC ECONOMICS

Course

Industrial Attachment

Company

Delta Corporation

Telephone

+263 04 770486

Industrial Supervisor

Mr. M PHIRI (Management Accountant)

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Abbreviations

SBSparkling beverages DTS..................Delta Transport Services LMV Light Motor Vehicles HMVHeavy Motor Vehicles PC.Petty cash SH Standard chartered bank Harare SM....Standard chartered bank Masvingo SB Standard chartered bank Bulawayo IT. Information technology Syspro.. An accounting software system GL distribution.... General ledger distribution SOPs Standard operating procedures

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BACKGROUND OF THE ORGANISATION DELTA BEVERAGES

History The Groups roots date back to 1898 when Thomas Meikles, Louis Susman and Adolph Rosenthall joined together to build a brewery in Cameron Street Salisbury -and thus the countrys first Brewery was established. From this small beginning the brewery industry developed into a major commercial and industrial operation. The company was first registered on the Zimbabwe Stock Exchange in 1946 as Rhodesian Breweries Limited. In April 1978, the name was changed to Delta Corporation Limited. The companys first diversification came in 1951 when it purchased Sebakwe Hotel. The hotel portfolio was expanded through acquisition in 1968 of Hotel Victoria and in 1970 of Trout beck Inn and by the construction of Monomatapa Hotel in 1974. In July 1990, Delta floated its hotel interests to form Zimbabwe Sun Limited. . With effect from 1 October 1977, Delta Corporation acquired OK Bazaars operations and a 71% stake in Spring Master Corporation Limited.

Company Profile
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Delta Corporation Ltd is a broad based company with interests in beverages (manufacturing and distribution) and the Agro Industrial sectors. The beverages business is the major contributor to the group and it dominates all sectors of the cold beverages market in Zimbabwe. Its beverage output averages 10million hectoliters per annum. It is listed on the Zimbabwe stock exchange and is one of the quoted companies in terms of market capitalization.

SAB Miller, an international brewing giant retains a 36% stake in the company (Delta Corporation). Vision We are, and seek to remain, an integrated Total Beverage Business dominating all sectors of the cold beverage market in Zimbabwe. Mission To grow the value of business in real terms on a sustainable basis. We will achieve through offering our customers outstanding service and through rigorous attention to the health of the business at all times. By so doing we will seek to enhance the value we create for all our stakeholders. Business Ethos To achieve excellence and to ensure survival, growth and profitability. Delta employees will be guided by the following business ethos. A desire to serve consumers with passion.
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A culture driven by the desire to improve and excel in all we do. A bias towards action.

A belief that destiny of the company is in our hands. Core Values Our people are our enduring advantage. Accountability is clear and personal. We work and win in terms. We understand and respect our customers and consumers. Our reputation is indivisible.

Strategic Business Units (SBUs) BEVERAGES MANUFACTURING AND DISTRIBUTION

Sparkling Beverages - This business unit is responsible for bottling and distribution of carbonated and non-carbonated soft drinks. Lagers - does the brewing, marketing and distribution of alcoholic beverages. In this business unit, Delta owns two breweries.

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Brands include Castle lager, Castle Milk Stout, Golden Pilsner, Lion Lager, Carling Black Label, Zambezi and Eagle Lager. Sorghum Business In this line of business, the company operates 14 breweries which brew Opaque beer.

1.

Transport Services - Delta Transport Services formerly Delta Distribution, provides transport, services to all the divisions operating throughout Zimbabwe. 2 . It is responsible for the provision and maintenance of primary and secondary vehicles and distribution of beverages.

AGRO INDUSTRIAL Kwekwe Maltings- responsible for barley malting and the Group has only one malting plant that is operating in Kwekwe.

African Distillers Limited not wholly owned by Delta Corporation, is the producer of wine and spirits. It has three farms, one distillery and five depots in Zimbabwe.

1.

Megapak- Megapak was formed in 1994 as a joint venture between Delta Corporation and Nampak of South Africa. It is not wholly under the Delta
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distribution Group is located in Ruwa and manufactures plastic containers used for the packaging of soft drinks and for waste disposal. Mandel Training Centre
2.

Mandel training centre was opened in November 1994.The training facility offers appropriately designed and equipped lecture rooms, residential accommodation and amenities. It is situated in Marlborough, Harare.

1.2. DELTA TRANSPORT SERVICES Delta Transport Services formerly Delta Distribution, provides transport services to all the divisions operating throughout Zimbabwe. It is responsible for the provision and maintenance of primary and secondary vehicles. DTS Harare is the Head Office of all the other workshops that are situated around the countrys major centres such as Masvingo, Bulawayo and Chitungwiza. It also runs a driver training school in Ruwa which trains the companys own drivers for heavy motor vehicles as well as light motor vehicles. Business Portfolio CONTINUING CORE CONTINUING DISCONTINUED
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BEVERAGE BUSINESS DELTA BEVERAGES 100%

NO CORE Megapak 51%

NON CORE Ariston 40%

Maltings 100%

Food & Industrial 49%

Headend 90%

Schweppes Zimbabwe Ltd (SZL) 49%

Mandel Training Centre 26%

MULBRUK

AFDIS 30%

Current Developments Discontinued Operations With effect from 1 February 2011, a new beer and packaging line in Bulawayo was opened the 40% stack in horticultural concern Ariston Holdings Ltd was disposed off. With effect from 1 July 2010, the company commissioned e new packaging Polyethylene Terephthatlate Packaging (PET) line at its Granite site in Harare. New Investments

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When the horticultural concern, Ariston Holdings Ltd was disposed off, the group acquired and now controls a 49% stack in Schweppes Zimbabwe Ltd. Also investments in shake shake plants at a number of factories around the country

Prospects A PET plant for soft drinks came on line by June 2010 replacing the old plant that was scrapped off in 2008. This will see the non-returnable plastic pack for carbonated soft drinks returning to the local market. A new bottling line, with a capacity to churn out 42 000 bottles per hour is currently being manufactured and is expected to be brought online before the end of October 2011.

SWOT ANALYSIS Strengths

Dominant market share in beverages. International brewing giant SABMiller retains a 36% stake in the company.

It is also an affiliation of coke International. It has a strong track record of delivering sustainable earnings. It has long established relationships with key stakeholders It has a network of Delta units throughout the country resulting in efficient distribution of products
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Delta Corporation is increasingly backward integrated in order to ensure input security (Kwekwe Maltings).

Weaknesses
1.

The company now has ageing fleet and machinery.

Opportunities Technological improvements will improve quality of products.

Threats There is too much competition from imported beers There is too much brain drain of engineers and artisans

Continued shortages of electricity.

DEPARTMENTAL OVERVIEW

Stores and Supplies

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The store at DTS Harare is the main stores for Delta transport services. It is responsible for receiving and storing both stock and non-stock items and transferring them to all Transport services warehouses. DTS has twenty four stores across the country; all stock purchases for these stores are ordered and received through the Harare main stores (centralized buying). Since purchasing is centralized, all the other warehouses will order their stocks form Harare stores. Items ordered from Harare are sent by express mail services or drivers are sent form relevant warehouses to collect the ordered stock items.

Loss control This department is responsible for safe guarding the assets of the company- Delta by eliminating/minimizing fraud and misuse of company resources. It is responsible for developing and maintaining effective controls to prevent fraud and to ensure that if it does occur it will be detected promptly.

Safety, Healthy & Environment (S.H.E) Occupational healthy and safety of employees is one of the areas that need greater attention. In its broad sense, it aims at the promotion and maintenance of the highest degree of physical, mental and social wellbeing of workers as-well as protecting the environment.

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Delta has a stand alone healthy and safety department that strives ensure that employees are protected from factors adverse to their healthy. Its main roles in the organization are:

To place and maintain employees in an occupational environment adapted to their physical and mental needs

Continuously monitor and audit the environmental status of all its operations Promote environmental awareness, responsibility, and training among all employees and the public at large;

Provide education and training to employees in preventative health care, first aid and safety procedures

HUMAN RESOURCE Delta transport services has got only one human resources department based at DTS Harare. It deals with labour related activities. It is responsible for recruiting and retrenching employees and salary related issues.

HEAVY MOTOR VEHICLES The HMV department is responsible for the provision and maintenance of the groups heavy motor vehicles (delivery trucks and forklifts). It runs a twenty-

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four hour workshop where the vehicles are serviced. The allocation of delivery trucks and forklifts to divisions is also done by this department. LIGHT MOTOR VEHICLES The LMV oversees the buying, allocation, maintenance and disposal of the groups light motor vehicles. It is also responsible for the maintenance Deltas boats. Information Technology IT This is the department that caters for every employees information technology needs. Its responsibilities span training members the basic use of the computer to maintaining the software and hardware. It is headed by the Information systems manager. It is also responsible for the backing up of data on a daily basis FINANCE DEPARTMENT The Finance executive heads the finance department and is responsible for all the financial matters of the company. Below is the Finance departments organogram.

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FINANCE EXECUTIVE
. MANAGEMENT ACCOUNTANT

ASSISTANT MANAGEMENT ACCOUNTANT

ASSISTANT FINANCIAL ACCOUNTANT

CREDITORS SUPERVISOR

CASHIER

CREDITORS CLERK

CREDITORS CLERK

CREDITORS CLERK

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The writer was exposed to experience in some of the above departments, with adequate supervision from the head of each department. The greater time of the attachment was spent in the Finance and Administration Department

CREDITORS SECTION

The main responsibility of this section of the finance department is to manage the Accounts Payable system. Managing accounts payable entails processing supplier invoices and payments and ensuring that liabilities are fully recorded and distributed correctly. RELATIONSHIP OF THE ACCOUNTS PAYABLE SYSTEM TO OTHER SYSTEMS The Accounts Payable system relies on Purchase order, Inventory management and Cashbook systems in respect of document processing and eventual payment to suppliers.

The writer worked in this department for a period of three and a half months. During this period, she was assigned to:

i.

Managing accounts payable this involved processing supplier invoices and payments

ii.

Compute Tax (V.A.T and with holding Tax) payable and to do the reconciliations.
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iii. Agree current accounts. INVOICE PROCESSING Supplier invoices are sent to the creditors department from different departments, upon receiving the invoices, Creditors clerk ensures that both a GRN and a purchase order are attached to the invoice. Checks for the authority on the GRN

Sequential reference numbers are stamped to both the GRN and the suppliers invoice using a numbering machine. Invoices are electronically captured into the system this is referred to as invoice posting Once an invoice is posted it is marked with the letter P indicating that it is posted. All posted invoices are filled according to supplier name.

Payment of Trade creditors

1)

Creditors clerk receives supplier statements by hand, fax or email.

2) Creditors clerk prints the respective suppliers trial balance from the creditors system

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3)

Creditors clerk performs reconciliation he/she matches transactions on suppliers statement to the AP trial balance and uses the unmatched transactions to reconcile the balance as shown by the suppliers statement to the balance as per APs trial balance.

4)

From the reconciled balance, the creditors clerk deducts the sum total of all invoices that are not yet due for payment to arrive at the amount payable the supplier.

5)

A remmitance advice is drafted this is a list of suppliers invoices that make up the amount payable.

6)

The creditors clerk completes an RTGS form for the respective supplier and attaches the reconciliation statement, two copies of remittance advice and the invoices as listed on the remittance advice.

7)

Creditors clerk forwards these documents to the Assistant accountant.

8) Assistant accountant reviews the reconciliation and signs for approval or returns for rework.
9)

Assistant accountant forwards the documents (RTGS, RA, Supplier statement, invoices and reconciliations) to the Finance executive for signing.

10)

The Finance executive reviews and matches the documents (RTGS, RA, reconciliation, suppliers statement, invoices, purchase order and suppliers name)
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11)

If satisfied, he/she signs the RTGS and forwards the documents to the next signatory who the then signs the RTGS and returns the documents to the creditors department.

12)

Creditors clerk detaches all the supporting documents from the RTGS forms and sends them to the Accountant who will then take them to the bank.

13)

Accountant brings back processed copies for filling; these are sequentially numbered, recorded in the RTGS register and filled in sequence.

RECONCILIATIONS

Reconciliations are part of the work of creditors clerks at DTS, while working in the creditors section, the writer was also assigned to do the following reconciliations: Tax reconciliations done be the writer comprises of VAT (Out-Put & Input) and withholding tax. Tax Schedule

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In computing Vat payable to Zimra, the student would come up with a tax schedule (as shown above). The VAT payable as per the tax schedule is then reconciled to the ledger balance.

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Cash Office The cashbook makes it easier for the company to monitor the activities of the bank. This is done by reconciling the cashbook using the bank statements supplied by the bank. The cashbook also alerts one of any errors made by the bank and the necessary corrections and amendments can be done on time.

All source documents such as cheque requisitions, petty cash vouchers, proof of transfers (creditors) and deposit slips are supposed to be processed in the cashbook. When this is done all reconciliations are made regularly and information of the ledger balance will continuously be up to date there by the bank balance is always readily available.

Information needed in the preparation of the cash flow which provides the weekly or monthly cash movement is also obtained from the cashbook.

Delta Transport Services Harare is the Head office of all its transport services, therefore making it a requirement that all cashbook transactions are done there. The writer spent two months in the cash office, a period during which he was exposed to cashbook transactions

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in the department and experienced how the cashbook provides vital information for all cash movements within Delta Transport services.

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Cash book activities This part of the report will focus, in detail, on the various cash book activities that the writer experienced while on attachment at DTS. The discussion will also point out the vital information provided by the each cash book activity discussed.

2.

handling petty cash

3. posting of source documents 4. filling of source documents 5. banking and receipting 6. reconciliations 7. comparing the ledger balance and the bank balance 8. closing the period.

PETTY CASH DISBURSMENT Petty cash disbursement is defined as the process of issuing out petty cash against authorized petty cash vouchers.

Procedure

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User department/individual raises the petty cash voucher which states the purpose of disbursement, amount, date and the allocation/account code to be charged. i. The respective head of department authorizes the voucher after which, it is forwarded to the cashier for payment. ii. Upon receiving the voucher, the cashier checks the account code stated on the on it and signs. iii. Cashier takes voucher plus available supporting documents to the assistant accountant for authorization. iv. v. Assistant accountant checks the voucher and authorizes it for payment. Cashier ensures that the recipient of the cash acknowledges receiving it by signing on the voucher and pays out the stated amount of money.
vi.

All paid vouchers are stamped PAID and filled in sequential order.

For any amount of money less than twenty dollars, the recipient only signs on the petty cash voucher as acknowledgement of receipt.

If the voucher amount exceeds twenty dollars but not in excess of one hundred dollars, the cashier prints a petty cash disbursement form stating the voucher amount and the recipient. This form is signed by both the cashier and the recipient/claimant.

If the requested amount exceeds one hundred dollars, in addition to the voucher and the disbursement form, the claimant has to
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complete a justification form stating the reasons why he/she intends to exceed the petty cash withdrawal limit. This form has to be approved by both the accountant and finance executive before cash is released.

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When all the money in the float is given/issued out, the cash will come up with an expenditure analysis sheet as shown above, which outlines how the $5000 cash float has been used. The petty cash vouchers (that correspond to the expenditure analysis sheet) together with their supporting documents are attached to the expenditure analysis sheet. This sheet with the attached vouchers is taken to the assistant accountant who will verify that the sum total of the petty cash vouchers attached to the expenditure analysis sheet agrees to the total disbursement as shown by the expenditure analysis sheet. The assistant accountant also ensures that expenses are being charged to the correct allocation (correct departmental and expense codes). If satisfied, the assistant accountant signs the expenditure analysis sheet authorizing the cashier to process it/post the transactions to cashbook. The cashier is then reimbursed with the same amount of cash which he reports having spent during that period as shown by the expenditure analysis sheet.

PROCESSING PETTY CASH VOUCHERS Upon receiving the signed expenditure summary from the assistant accountant, the cashier captures the expenditure details into the system. Procedure The cashier debits petty cash float and credit bank with the reimbursed amount.

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The cashier posts the expenditure details to the relevant allocations (GL codes). Thus clearing the debit in the in the petty cash book.

After done with the posting, the cashier will then run a GL distribution so as to distribute/post the posted transactions to their respective sub-ledgers.

PROCESSING OF PAYMENTS All payments that do not relate to the accounts payable are done through the cash office. These payments include: Staff loans Employee refunds Travel expenses Pre-payments to suppliers

Procedure
1)

Cashier receives requisitions with the appropriate documentation attached (loan forms, quotations).

2) Cashier checks for authorization by ensuring that all loan forms are signed by the respective departmental head and approved by the human resources department, and also checks for proper account allocation.

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3) Cashier takes the requisitions to the assistant accountant who checks that all documents are in place before authorizing the raising of the RTGS. 4) The Cashier prepares the RTGS payments.
5)

Same as steps nine (9) to thirteen (13) on page twenty eight.

RECEIVING CASH

This is a process whereby the cashier receives cash and counts it in the presence of the customer/employee before issuing a receipt. Procedure Cashier receives cash relating to sale of by products, scrap sales, canteen meal tickets sales and any other internal sales. The cashier counts the cash in front of the customer/employee. The cashier issues a receipt for the cash received to the customer/employee. The money is stored in a safe.

RECONCILIATIONS
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Bank reconciliation The cashier receives bank statements by electronic mail from the bank. The cashier updates the cashbook with transactions that appear on the bank statement but not captured in the cashbook (these include bank charges and returned transfers). The cashier reconciles by comparing the bank statement transactions with the cashbook transactions. The cashier prints excel bank reconciliation statement (reconciling the balance as per bank statement to the cashbook balance) The assistant accountant reviews and signs the reconciliation statement.

Petty cash reconciliations

The student was also tasked to do the petty cash reconciliations. These were done on a daily basis by the student and checked by the cashier. At any given time, the sum total of paid vouchers plus cash on hand must equate to the float (petty cash vouchers + cash on hand = float). After the petty cash reconciling, the cashier would then count the cash in hand to ensure that it agrees with cash as shown on reconciliation statement. ASSISTANT MANAGEMENT ACCOUNTANT OFFICE The writer also went to the assistant accountants office and this is where all management accounts are managed.

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The writer was also exposed to the assistant accountants office where all management activities are done. There are several things which are done in this office and the writer is going to explain how these things are done. CHECKING OF PAYMENTS. Payments for suppliers which would have been done by the creditors clerk are all brought to the assistant accountants office for verification. Also, the accountant will check whether the reconciliation has been done properly, to check whether the invoices on the remittance advice are there physically and to check whether the bank details of the supplier are correct. After checking all of this the accountant will sign and then send them to the finance executive for signing and verification. BALANCE FUNCTIONS. When processing of payments and requisitions is done in the cashbook and accounts payable to different ledger codes, it just hangs in the system as journals .The accountant is the one who will run a balance function each morning. This is a process where all the journals which had been hanging will be posted to their respective codes. Also, all other journals beside the ones from accounts payable and cashbook that would have been posted in the system will be hanging but when the balance function is run they will be distributed to their intended codes. GOODS RECEIVED NOTES (GRN) ADJUSTMENTS When goods or certain items are received from different suppliers, the supplier will leave an invoice with the receiver. The receiver will then prepare a goods received note (GRN),
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and this will be putting the goods in stock through the system. However when making the GRNs the operator might make mistakes for example quoting the wrong price as the one on the invoice and that means it will have to be adjusted.

The operator will have to fill in an adjustment form and to state the kind of mistake he/she had done and have the adjustment form signed by the department manager and the bring the form and GRN to the assistant accountants office for adjustments.

The accountant is the only one who is allowed to adjust GRNs and adjusting them may mean cancelling the whole thing and starting all over again. The adjustments will be done in the system and the forms will be filed for references sake.

MISUSES, JOBS CLOSURE However the vehicle has to be prepared and this is done by the transport services only. There will be certain things that need to be done on that vehicle and some things will to be bought so to repair the damaged vehicle. This means that a job will be created for that vehicle under SBs. All the costs of the things/spares which will be bought will be accumulating under the job that was created and these costs will be paid by SBs.

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The writer also learnt about how misuses and jobs are created and also how are they closed. Delta Transport Services is the division which provides transport to all delta beverages divisions throughout the country. When a division such as SBs is given a vehicle to a certain place and the vehicle encounters an accident on its way, this will be called a misuse of SBs since it was given the vehicle in good condition. When mechanics are satisfied that the vehicle is now ready for another task, the job will be closed. Jobs closure is only done by the assistant accountant and this mean that no other things will be done on this job as well as the vehicle under the name of SBs.

CHARGING OUT OF FUELS

DTS also provides fuel for most of light motor vehicles of all divisions throughout the month. However the cost of the fuel will be accumulating on each vehicle and will be charged once at the end of the month to respective divisions through current accounts. The accountant must have a fleet list so to be able to identify the division to which that vehicle is from for easier charging at the end of the month.

When charging these fuels DTS puts a certain mark up the initial price so that it will be able to make profits even if the profits will be very low. Some fuels will be rejected and this maybe because they would have been charged to the wrong division and then we will have to look for the correct division and charge out.
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CONCLUSION The work related learning period was to use the theoretical knowledge that at college both to make decision in the real business environment and also to execute assigned tasks. The period of industrial attachment was indeed one of the students most enjoyable academic periods, as she got the chance to test the theoretical tools that he possessed in the real business world.

The industrial attachment program has greatly enriched the student knowledge in using accounting packages and excel.

Recommendations to Delta Beverages In this chapter the student will give recommendations to the problems outlined in the previous chapter. The writer is of the opinion that there is inadequate segregation of duties in the cash office. Adequate segregation of duties in cash office will minimize the risk of embezzlement of cash. To ensure adequate segregation of duties, transactions can be divided into four phases (authorization, execution, custody and recording) no one person must responsible for more than one phase. This entails that the, the cashier will no longer be responsible for (execution, custody and recording) disbursing cash, keeping the safe, recording all cash transactions posting transactions into the system and doing cash reconciliations.
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Supervisors of students on attachment must proportionately allocate time between all the departments. This will enable the students to acquire enough knowledge and skills in all the departments.

Recommendations to the University of Bindura. The writer observed that much of the work is done on a computer, he thus suggests to the University of Bindura to increase its efforts in equipping students with practical computer literacy skills.

The industrial liaison officer should visit students on attachment so as to assess the relevance of the tasks assigned to students to their degree program and to emphasize to the students supervisor what he/she is expected to cover.

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