RIFT VALLEY UNIVERSITY

HAWASSA COMPUS
DEPARTMENT OF BUSINESS MANAGMENT

THE EFFECTIVE INTERNSHIP REPORT ON: INTERNAL CONTROL

PRODUCTION INJO GARMENT PLC(A CASE STUDY

Instructor:Hachalu, F

Nov, 2024
HAWASSA, ETHIOPIA
 ACKNOWLEDGMENT
We are deeply grateful to our God for granting us the strength and abilities to successfully
complete this internship report. We extend our heartfelt thanks to our
supervisor,____________________, from the Department of Business Management at Rift
Valley University Hawassa campus for his continuous support and invaluable guidance
throughout this work. We also appreciate the cooperation and assistance provided by all the
employees of Injo Apparel Manufacturing Plc especially those at the Hawassa, with special
thanks to the production control section for supplying us with the necessary data. Lastly, we wish
to thank our family members for their unwavering moral and support during this internship
period.
 EXECUTIVE SUMMARY

This report presents our internship experience at the Injo Apparel manufacturing PLC. focus on
internal control over park management. Through hands-on involvement in various operations,
we gained valuable insights into managing internal controls and financial documentation.
Despite encountering challenges such as handling a high volume of documents and adapting to
procedural changes, we implemented effective measures to maintain the integrity of the park's
processes. These efforts were crucial in ensuring the smooth operation of the Industry's internal
control systems.

The internship not only enhanced our practical skills but also deepened our theoretical
understanding of Injo Apparel manufacturing PLC operations. We developed a strong
foundation in managing financial documentation and operational procedures, which will be
invaluable in our future careers. Additionally, the experience reinforced the importance of work
ethics, including integrity, confidentiality, and accountability. The internship also encouraged
entrepreneurship skills by promoting strategic thinking and problem-solving. Recommendations
for the campany include optimizing resources, streamlining procedures, and adopting
technological innovations to further improve efficiency and customer satisfaction.
 TABLE OF CONTENT
ACKNOWLEDGMENT...............................................................................................................ii

EXECUTIVE SUMMARY..........................................................................................................vi

TABLE OF CONTENT..............................................................................................................vii

CHAPTER ONE............................................................................................................................1

1. BACKGROUND OF INSTITUTION..................................................................................1

1.1 Overall view......................................................................................................................1

1.2 Institution Vision and Mission...............................................................................................2

1.3 Objectives of Injo Apparel Manufacturing Plc......................................................................3

1.3.1 Organizational Structure..................................................................................................4

1.3.2 Workflow of Injo Apparel manufacturing PLC .............................................................5

1.4 Challenges Faced by Injo Apparel manufacturing PLC. in Internal Control Over Input and
Output the Steps Taken to Address Them...................................................................................6

1.4.1 Challenges Faced in Internal Control over production ..................................................6

1.4.2 Steps Taken to Address the Challenges..........................................................................7

CHAPTER TWO:..........................................................................................................................8

2 OVERALL INTERNSHIP EXPERIENCES...........................................................................8

2.1 Our Overall Internship Experience at Injo Apparel manufacturing PLC. ............................8

2.2 The Procedures We Have Been Following While Working as a Folder in the Internal
Control Over production Department..........................................................................................9

2.3 Performing Our Work Tasks................................................................................................11

2.4 The Challenges We Have Been Facing While Performing Injo Apparel Our Work Tasks13

2.5 The Measures We Have Taken in Order to Overcome These Challenges...........................14

CHAPTER THREE.....................................................................................................................17

3 THE OVERALL BENEFITS I GAINED FROM THE INTERNSHIP..........................17

 3.1 Benefits We Gained in Terms of Improving Our Practical Skills.......................................17

3.2 Benefits We Gained in Terms of Upgrading Our Theoretical Knowledge..........................18

3.3 Benefits We Gained in Terms of Understanding Work Ethics Related Issues....................19

3.4 Benefits We Gained in Term of Entrepreneurship Skill......................................................21

CHAPTER FOUR.......................................................................................................................22

4. SWOT ANALYSIS..................................................................................................................22

4.1 SWOT Analysis of Injo Apparel manufacturing PLC. .................................................22

CHAPTER FIVE.........................................................................................................................24

5. CONCLUSION AND RECOMMENDATION.....................................................................24

5.1 Conclusion...........................................................................................................................24

5.2 Recommendations................................................................................................................25

6, References.................................................................................................................................26
 CHAPTER ONE

1. BACKGROUND OF INSTITUTION

1.1 Overall view

INJO APPAREL MANUFACTURING PLC. originally known as Injo Apparel manufacturing

plc Institution, was established in 2007E.C and has since transformed into one of Ethiopia’s
leading Injo institutions. Over the years, the has significantly expanded its services and outreach,
becoming a key player in advancing financial inclusion and supporting economic development
throughout the country. By focusing on providing essential financial services to low-income
communities, Everest germent has played a crucial role in poverty reduction and economic
empowerment, reflecting its commitment to fostering socio-economic growth in Ethiopia Injo
Apparel manufacturing PLC of Ethiopia, 2022).

Despite its growth and success, Injo Garment has faced several challenges inherent to Injo
Apparel manufacturing institutions. The is exposed to a range of risks that could potentially
affect its stability and progress. Recent trends underscore the importance of robust risk
management practices, which are essential for identifying, assessing, and mitigating risks
associated with banking operations. Effective risk management is vital for maintaining the Injo
garment stability and ensuring its long-term sustainability (Mathiwos, 2023).

Production risks, which include liquidity risk, interest rate risk, purchasing risk, and investment
risk, are prevalent in the financial sector. These risks arise from fluctuations in financial
variables and can impact the institution’s operations and profitability. On the other hand,
operational risks, stemming from internal factors such as human error or technology failures, and
external events that disrupt operations, also pose significant challenges. Additionally, strategic
and reputational risks are important components of operational risks that need to be managed
effectively to maintain operational integrity and support institutional growth (Sintayo, 2021).

Historically, research on risk management within Etrhiopia’s Injo Apparel sector has
predominantly focused on financial risks. However, there is a growing recognition of the need
for a comprehensive approach that includes operational risks to ensure overall [Link]
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Apparel dedication to enhancing its risk management framework illustrates its proactive
approach to addressing these challenges and reinforces its position as a leading institution in the
Ethiopian Injo Apparel manufacturing PLC. sector (Injo Apparel manufacturing PLC of
Ethiopia, 2022).

The Hawassa Injo Apparel, located in Hawassa City, plays a crucial role in the landscape of the
Sidama region in Ethiopia. As part of a government-supported initiative, the branch is integral to
providing comprehensive Injo Apparel manufacturing PLC. services aimed at inclusion and
economic development. Serving a diverse clientele, including local businesses, government
employees, and residents, the branch is strategically situated in a vibrant area of Hawassa,
making it an essential resource for the community’s needs (Sidama Region Economic Report,
2023). During our four-week internship at the Hawassa branch, our primary focus was on the
internal control over cash, which is critical for maintaining the Injo garment operational
integrity. We gained in-depth experience in how the production manages its cash flow, maintains
accurate records, and protects its assets from potential risks.

1.2 Institution Vision and Mission

The Vision of the Hawassa of Injo Garment is to be a leading provider of inclusive financial
services across Ethiopia, contributing to the economic empowerment and sustainable
development of communities nationwide. The branch aims to play a transformative role in the
financial sector by ensuring that all segments of society, regardless of geographic location, have
access to the financial tools they need to enhance their livelihoods and achieve economic
stability.

The Mission of the Hawassa branch is to deliver high-quality, accessible, and innovative
financial services that meet the diverse needs of its clients throughout the community. The
branch is committed to fostering financial inclusion, supporting businesses, and promoting
economic growth not only in Hawassa but across various regions. By adhering to principles of
transparency, accountability, and customer-centricity, the Hawassa strives to build enduring
relationships with its clients, ensuring their financial well-being and contributing to the broader
economic prosperity of Ethiopia. This vision and mission reflect the branch's commitment to

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aligning with Injo Apparel manufacturing PLC. overarching goals while addressing the financial
needs of communities throughout Ethiopia.

1.3 Objectives of Injo Apparel manufacturing PLC.

The objectives of Injo Apparel manufacturing plc. are centered around promoting production
inclusion, supporting economic development, and enhancing the livelihoods of individuals and
communities across Ethiopia. These objectives are aligned with the broader mission to serve as a
catalyst for socio-economic progress, particularly among underserved populations.

Promote production Inclusion: One of the primary objectives of Injo Apparel is to extend
access to production services to low-income individuals, small businesses, and rural
communities that are often excluded from traditional Campany systems. By offering tailored
financial products, the aims to bridge the gap between the formal financial sector and
marginalized populations.

Support Economic Development:Injo Apparel manufacturing PLC is dedicated to

contributing to the economic growth of Ethiopia by providing financial support to micro, small,
and medium-sized enterprises (MSMEs). The Garment objective is to empower these businesses
through Input, output, and investment opportunities, thereby stimulating local economies and
creating jobs.

Enhance Poverty Reduction Efforts: The garment is committed to playing a pivotal role in
poverty reduction by providing tools that help individuals and families improve their economic
status. By facilitating access to output, inputs, and other production services, Injo Apparel
manufacturing PLC. aims to enable clients to invest in education, health, housing, and other
critical areas that contribute to long-term economic stability.

Ensure production Sustainability: Another key objective is to maintain the Garment

sustainability of the itself. This involves prudent risk management, efficient operations, and the
continual development of innovative products that meet the changing needs of its clientele.

Empower Women and Vulnerable Groups: Injo Apparel manufacturing PLC places a strong
emphasis on empowering women and other vulnerable groups by providing them with access to

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material resources. The objective is to support gender equality and social inclusion by enabling
these groups to participate fully in the economy.

Promote production Literacy: The Industry is also focused on enhancing financial literacy
among its clients. By educating individuals on General management, maints, and investment
practices, Injo Apparel manufacturing PLC. aims to empower them to make informed financial
decisions that lead to improved economic outcomes.

These objectives guide Injo Apparel manufacturing PLC. in its efforts to be a leading production
institution that not only drives economic growth but also contributes to the overall development
of society.

1.3 Overall Organizational Structure and Workflow of Injo Apparel manufacturing PLC.
Injo Apparel manufacturing is structured to efficiently manage its wide range of materials
services while ensuring robust internal controls and risk management across all its branches,
including the Hawassa in Hawassa. The organizational structure is designed to facilitate clear
communication, effective decision-making, and smooth operational processes throughout the s
network.

1.3.1 Organizational Structure

Board of Directors: The highest governing body of Injo Apparel manufacturing PLC.
responsible for setting the strategic direction, approving major policies, and ensuring that the
institution meets its purpose and social objectives. The Board provides oversight of the executive
management and ensures compliance with regulatory requirements.

Executive Management: This includes the Chief Executive Officer (CEO) and other top
executives, such as the Chief Financial Officer (CFO), Chief Operating Officer (COO), and
Chief Risk Officer (CRO). The executive team is responsible for implementing the Board’s
strategies, managing daily operations, and ensuring the overall production health.

Production Managers: Injo Apparel manufacturing PLC is divided into several regional
offices, each managed by a Regional Manager. These managers oversee the performance of
branches within their respective regions, ensuring that they meet their targets and comply with
the Industry's policies and procedures.
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Design Managers: Each branch, including the Hawassa company is headed by a Branch
Manager who is responsible for overseeing all branch activities, including internal controls,
customer service, and operational efficiency. The Manager ensures that the branch aligns with
the objectives and meets its financial goals.

Departmental Heads: Within each branch, there are heads of various departments such as
Quality, Operations, leadership and Risk Management. These departmental heads are responsible
for the specific functions of their departments, ensuring that all tasks are performed in line with
the campany policies and objectives.

Staff Members: The staff includes tellers, loan officers, customer service representatives, and
other support personnel. They are the frontline employees who interact with customers and
perform essential operations, such as processing transactions, managing accounts, and providing
customer support.

1.3.2 Workflow of Injo Apparel manufacturing PLC.

Quality Management and Internal Control: The workflow at the revolves around stringent
cash management processes to ensure the safety and accuracy of financial transactions. is
handled through a series of checks and balances, including dual controls for handling, daily
reconciliations, and periodic audits. This ensures that the internal control over is robust and
minimizes the risk of fraud or errors.

Maintenance Processing: officers assess staff applications, conduct credit evaluations, and
determine the terms of loans. Once approved, the loan processing department ensures that all
necessary documentation is in place and disbursements are accurately recorded.

Customer Service: The customer service department handles account openings, inquiries, and
customer complaints. This department ensures that clients receive timely and accurate
information, contributing to overall customer satisfaction and retention.

Risk Management: Risk management processes are integrated into every aspect of the branch’s
workflow. This includes regular monitoring of financial risks, operational risks, and compliance
with regulatory requirements. The risk management team collaborates with other departments to
mitigate potential threats to the stability.

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Reporting and Compliance: All branches, including the are required to submit regular reports
to the regional office and executive management. These reports include financial statements,
operational summaries, and risk assessments. The compliance department ensures that all
operations adhere to internal policies and external regulations.

This organizational structure and workflow are designed to support Injo Apparel manufacturing
PLC. mission of providing inclusive financial services while maintaining high standards of
internal control, particularly in areas critical to the bank’s operations, such as cash management.

1.4 Challenges Faced Injo Apparel manufacturing PLC in Internal Control Over
production and the Steps Taken to Address Them

During our internship at the Hawassa of Injo Apparel we observed several challenges related to
the internal control over , a critical aspect of the operations. These challenges, if not addressed
effectively, could impact the s ability to maintain operational integrity, financial stability, and
customer trust.

1.4.1 Challenges Faced in Internal Control over production

Production Handling Errors: One of the significant challenges observed was the risk of human
error in cash handling processes. Mistakes in counting, recording, or reconciling cash can lead to
discrepancies, which may affect the financial reporting and operational efficiency.

Security Risks: The security of purchasing within the branch posed a challenge, particularly in
safeguarding against theft or fraud. The physical handling of and the movement of large
amounts of money between the branch and its customers required stringent security measures to
prevent potential losses.

Inadequate Reconciliation Processes: We identified that the reconciliation of transactions was

sometimes delayed or not thoroughly conducted, leading to temporary discrepancies in the
company's records. This gap in the reconciliation process can undermine the accuracy of
financial statements and increase the risk of undetected errors.

Limited Automation: The Industry park reliance on manual processes for Campany
management was another challenge. While manual processes are common in many industries
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institutions, they are prone to errors and inefficiencies. The limited use of automated systems for
handling and reconciliation increased the workload for staff and the potential for mistakes.

Staff Training and Awareness: Ensuring that all staff members were adequately trained in
internal control procedures and aware of the importance of these controls was a challenge.
Variations in staff experience and understanding of the procedures led to inconsistencies in how
cash was managed and controlled.

1.4.2 Steps Taken to Address the Challenges

Strengthening production Handling Protocols: To minimize errors, the Hawassa branch

implemented more rigorous handling protocols, including mandatory double-checking of
Quality counts, enhanced verification processes, and clear documentation procedures. These
measures helped reduce the incidence of errors and improved accuracy in design management.

Enhancing Security Measures: The branch took steps to bolster the security of purchasing by
upgrading physical security systems, such as installing additional surveillance cameras and
secure storage facilities. The branch also introduced stricter access controls to areas where cash
is handled, reducing the risk of theft or fraud.

Improving Reconciliation Practices: The Hawassa branch made improvements to its

reconciliation processes by implementing more frequent and detailed reconciliations of cash
transactions. These adjustments ensured that any discrepancies were identified and resolved
promptly, enhancing the accuracy of financial records.

Investing in Automation: Recognizing the limitations of manual processes, the branch began to
explore the implementation of automated systems for packaging management. These systems,
once fully operational, are expected to streamline cash handling, reduce the potential for errors,
and improve overall efficiency.

Providing Comprehensive Staff Training: To address the variations in staff expertise, the
branch conducted additional training sessions focused on internal control procedures and the
importance of maintaining strict controls over design This training helped to standardize
practices across the branch and increase staff awareness of the critical role they play in
safeguarding the assets.
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By taking these steps, the Hawassa of Injo Apparel manufacturing PLC. has worked to
strengthen its internal controls over addressing the challenges that could potentially compromise
its operational integrity. These efforts have contributed to the ability to maintain accurate
financial records, secure its assets, and deliver reliable services to its customers.

CHAPTER TWO:

2 OVERALL INTERNSHIP EXPERIENCES

2.1 Our Overall Internship Experience at Injo Apparel manufacturing PLC

Our internship at Injo Apparel manufacturing PLC,. particularly at the in Hawassa City, was an
invaluable learning experience that provided us with a deep understanding of the internal
workings of a Campany institution, especially in the area of internal control over production.
Over the course of our four-week internship, we were exposed to various aspects of operations,
allowing us to apply theoretical knowledge in a practical setting and gain insights into the
complexities of the sector.

During the internship, we were actively involved in observing and participating in the daily
activities of the branch. Our primary focus was on the internal control over production, a critical
component of the operations. This experience allowed us to understand the importance of
maintaining stringent controls to ensure the accuracy and security of transactions.

We were given the opportunity to work closely with the Industry's staff, including tellers,
production and branch managers, who provided guidance and shared their expertise with us.
Through this hands-on experience, we learned about the various procedures involved in
handling, reconciliation, and reporting. We also gained exposure to the challenges faced by the
in managing such as the risks of errors, fraud, and security breaches, and the steps taken to
mitigate these risks.

One of the most significant takeaways from our internship was the importance of teamwork and
communication in ensuring the smooth operation of the branch. We observed how the Industry's
staff collaborated to maintain high standards of accuracy and efficiency, particularly in handling
large volumes of transactions. This experience reinforced the value of clear communication and
cooperation in achieving organizational goals.
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In addition to technical skills, the internship also provided us with an opportunity to develop our
professional skills, such as time management, problem-solving, and customer service. Interacting
with customers and addressing their concerns helped us understand the importance of customer
satisfaction in the production Injo Apparel market industry. We also learned how to manage
time effectively while handling multiple tasks, which is essential in a fast-paced environment
like a Injo Apparel manufacturing PLC.

Overall, our internship at Injo Apparel manufacturing PLC. was a highly rewarding experience
that not only enhanced our knowledge of operations but also helped us develop the skills
necessary for a successful career in the financial sector. The insights and experience we gained
during this period have significantly contributed to our understanding of the practical
applications of internal controls and the broader dynamics of the garment industry.

2.2 The Procedures We Have Been Following While Working as a Folder in the Internal
Control Over production Department
During our internship at the Hawassa of Injo Apparel we were assigned to work as folders in
the Internal Control Over production Department. This department plays a critical role in
safeguarding the recreational assets, ensuring accurate financial reporting, and maintaining the
integrity of cash handling procedures. Our responsibilities involved supporting the internal
control processes by meticulously managing and organizing cash-related documents.

Procedures We Followed in the Internal Control Over production Department

1. Document Collection and Verification: Our daily tasks began with collecting production-
related documents from various departments, including transaction records, cash deposit
slips, forms, and reconciliation reports. We verified each document for completeness,
accuracy, and proper authorization before proceeding.
2. Organizing production Records: After verification, we organized the documents
according to the internal control protocols. This included categorizing records by type (e.g.,
design, target's, reconciliations), date, and relevant account information. Proper organization
ensured that all documents were easily accessible and traceable.

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3. Filing and Storing Documents: We filed the organized documents into designated folders
and storage areas within the department. Each folder was labeled clearly with identifiers
such as account numbers, transaction dates, and document types to facilitate efficient
retrieval. Secure storage procedures were followed to protect sensitive related information.
4. Updating purchasing Records: To maintain accurate and up-to-date records, we entered
document details into the electronic financial management system. This step involved
inputting information from physical documents into the digital system, ensuring that all
records were aligned with the actual handling activities.
5. Ensuring Document Security: Security measures were paramount in our role. We followed
strict protocols to ensure that all cash-related documents were stored securely. Access to
these documents was restricted to authorized personnel only, and sensitive information was
handled with the utmost confidentiality.
6. Conducting Reconciliation Reviews: We assisted in the reconciliation process by
reviewing and verifying reconciliation reports against cash handling records. This involved
cross-checking physical documents with digital records to identify and resolve any
discrepancies, thus supporting the accuracy of cash reconciliation.
7. Supporting Internal Audits: During internal audits, we provided requested documents to
auditors and facilitated their review process. This included retrieving specific records,
ensuring their completeness, and re-filing them after the audit. We also helped address any
findings or issues identified during audits.
8. Handling Document Disposal: In accordance with the document retention policy, we
managed the disposal of obsolete or expired related documents. This process involved
securely shredding documents that were no longer needed to protect sensitive information
and maintain compliance with data protection regulations.
9. Monitoring and Reporting: We monitored the status of cash-related documents to ensure
they were processed and filed in a timely manner. Regular reporting to the department head
included updates on document management, highlighting any issues or areas for
improvement.
Our work as folders in the Internal Control Over production Department provided us with a
comprehensive understanding of the procedures necessary to maintain robust internal controls

10
over production. By adhering to these procedures, we contributed to the overall accuracy and
security of the Industry's handling processes, reinforcing the importance of meticulous record-
keeping in financial management.

2.3 Performing Our Work Tasks

During our internship at the Hawassa of Injo Apparel manufacturing PLC, performing our work
tasks in the Internal Control Over production Department involved a range of responsibilities
critical to the effective management and security of cash assets. Each task was designed to
ensure the accuracy, efficiency, and integrity of handling procedures. Here is a detailed account
of how we performed our work tasks:

1. Document Collection and Verification

Our day began with the collection of production-related documents from various departments
within the garment. This included transaction slips, target deposit and withdrawal forms, and
reconciliation statements. We carefully reviewed each document to verify that they were
complete and correctly authorized. This process involved checking for accurate amounts, proper
signatures, and supporting documentation to ensure that all records were accurate and valid.

2. Organizing and Categorizing Records

After verification, we organized the documents into appropriate categories based on type, date,
and relevance. We used the garment filing system to sort documents into folders labeled with
clear identifiers such as account numbers and transaction dates. This systematic organization was
crucial for maintaining order and ensuring that documents could be easily retrieved when
needed.

3. Filing and Secure Storage

Once organized, we filed the documents into designated storage areas within the department. We
adhered to strict procedures for document security, including locking filing cabinets and limiting
access to authorized personnel only. This ensured that sensitive production-related information
was protected from unauthorized access or potential tampering.

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4. Updating Digital Records
To maintain alignment between physical and digital records, we entered details from the physical
documents into the machine electronic staff management system. This task involved inputting
data accurately and checking for consistency between physical files and digital records. Regular
updates to the system were essential for maintaining accurate financial records and supporting
efficient cash management.

5. Assisting with Reconciliation

We played a role in the reconciliation process by reviewing and verifying reconciliation reports.
This involved comparing physical transaction records with digital entries to identify and resolve
any discrepancies. By ensuring that reconciliation reports matched the actual transactions, we
contributed to the accuracy of financial reporting and internal controls.

6. Supporting Internal Audits

During internal audits, we assisted auditors by providing requested documents and facilitating
their review process. We carefully retrieved the necessary records, ensured they were complete
and accurate, and re-filed them after the audit. We also addressed any findings or issues
highlighted by the auditors, contributing to the overall effectiveness of the audit process.

7. Managing Document Warehouse

In line with the garment document retention policy, we managed the disposal of obsolete or
expired documents. This involved securely shredding documents that were no longer needed to
protect sensitive information and ensure compliance with data protection regulations. Proper
disposal procedures were followed to maintain confidentiality and safeguard against data
breaches.

8. Monitoring and Reporting

We monitored the status of produ-related documents to ensure timely processing and filing.
Regular reports to the department head included updates on document management activities,
highlighting any issues or areas for improvement. This ongoing communication was vital for
maintaining transparency and addressing any challenges that arose.

9. Handling Special Tasks

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Occasionally, we were assigned special tasks such as assisting with the implementation of new
procedures or technologies related to production management. These tasks required adaptability
and a proactive approach to ensure that the department’s operations continued to evolve in line
with best practices and technological advancements.

Performing these tasks provided us with hands-on experience in managing cash-related

documents and understanding the critical role of internal controls in a garment environment. The
skills and knowledge gained through these activities have been invaluable in our development as
professionals in the sector.

2.4 The Challenges We Have Been Facing While Performing Our Work Tasks

During our internship at the of Injo Apparel manufacturing PLC. we encountered several
challenges while performing our work tasks in the Internal Control Over production Department.
These challenges were integral to our learning experience, providing insights into the
complexities of managing cash-related processes in a Ipdc environment.
1. Handling High Volumes of Documents
One of the primary challenges we faced was managing the high volume of cash-related
documents that needed to be processed daily. The sheer quantity of transaction slips, deposit
forms, and reconciliation reports sometimes led to difficulties in maintaining organization and
accuracy. Ensuring that each document was correctly verified and filed without errors required
significant attention to detail and efficiency.
2. Ensuring Accuracy in Data Entry
Accurate data entry into the electronic financial management system was crucial but challenging.
We encountered occasional discrepancies between physical documents and digital records,
which required thorough cross-checking and correction. Ensuring that all data was entered
correctly and consistently was essential for maintaining reliable financial records and supporting
effective cash management.
3. Managing Document Security
Maintaining the security of sensitive cash-related documents posed a challenge, particularly in
ensuring that access was limited to authorized personnel only. We had to be vigilant in securing
documents and handling them with confidentiality to prevent unauthorized access or potential

13
fraud. Balancing document security with the need for efficient access and retrieval was an
ongoing concern.
4. Navigating Complex Filing Systems
The complexity of the garment filing system sometimes made it challenging to organize and
retrieve documents efficiently. We had to familiarize ourselves with various categorization and
labeling conventions to ensure that documents were filed correctly. Misfiling or incorrect
categorization could lead to difficulties in locating documents and potential disruptions in
workflow.

5. Adapting to Changing Procedures

During our internship, we encountered changes in internal procedures and systems related to
cash management. Adapting to these changes required us to quickly learn new processes and
integrate them into our daily tasks. Keeping up with procedural updates while maintaining
accuracy in our work was a challenge that required flexibility and a proactive approach.
6. Addressing Reconciliation Discrepancies
Reconciliation of purchasing transactions often revealed discrepancies that needed to be
resolved. Identifying the source of these discrepancies and ensuring that they were corrected
involved careful investigation and coordination with other departments. This process was time-
consuming and required a thorough understanding of reconciliation procedures.
7. Meeting Tight Deadlines
We frequently faced tight deadlines for processing and filing documents, particularly during
peak times or audit periods. Meeting these deadlines while ensuring the accuracy and
completeness of our work was challenging. Effective time management and prioritization were
essential to handle the workload and avoid delays.
8. Dealing with Limited Resources
At times, we encountered limitations in resources such as outdated technology or insufficient
support staff. These limitations impacted our ability to perform tasks efficiently and effectively.
We had to find ways to work around these constraints while maintaining the quality of our work.

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Despite these challenges, the experience provided us with valuable lessons in problem-solving,
adaptability, and the importance of attention to detail in financial operations. Addressing these
challenges contributed to our growth as interns and prepared us for future roles in the production
and quality sectors.

2.5 The Measures We Have Taken in Order to Overcome These Challenges

In response to the various challenges encountered during our internship at the Hawassa of Injo
Apparel manufacturing PLC. we implemented several measures to effectively address and
overcome these difficulties. These measures were crucial in ensuring the smooth operation of our
tasks and maintaining the integrity of the internal control over production processes.

1. Implementing Efficient Document Management Practices

The high volume of documents we handled required us to develop and adhere to streamlined
document management practices. We recognized that the timely and accurate processing of
documents was essential to maintaining the integrity of the production records. To achieve this,
we created a systematic approach to sorting and filing documents. This approach included
prioritizing tasks based on their urgency and importance, which allowed us to focus on the most
critical documents first. We also employed a checklist system to ensure that no documents were
overlooked or misplaced during the filing process. By implementing these practices, we were
able to manage the document flow efficiently, reducing the risk of errors and improving overall
productivity.

2. Enhancing Accuracy in Data Entry

Accuracy in data entry is crucial for maintaining reliable financial records, particularly in a
garment environment where even minor errors can have significant consequences. To ensure the
accuracy of the data entered into the Injo electronic financial management system, we adopted a
meticulous approach to cross-checking information. We implemented a double-check system,
where every piece of data entered by one individual was reviewed by a second person before
being finalized. This additional layer of verification helped to reduce the likelihood of errors and
ensured that the production records were accurate and trustworthy. The focus on accuracy also
contributed to the smooth operation of the Internal Control Over production processes, as it
minimized discrepancies and facilitated easier reconciliation of accounts.
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3. Strengthening Document Security
Given the sensitive nature of the documents we handled, strengthening document security was a
top priority. We strictly adhered to the security protocols, which included using secure filing
cabinets for the storage of sensitive documents. Access to these documents was limited to
authorized personnel only, ensuring that they were protected from unauthorized access or
tampering. Additionally, we maintained a log of document access, which tracked who handled
the documents and when. This measure not only enhanced our ability to safeguard sensitive
information but also provided a clear audit trail in case any issues arose. By reinforcing
document security, we were able to protect the assets and maintain the trust of the clients and
stakeholders.

4. Addressing Reconciliation Discrepancies

Reconciliation discrepancies can pose significant challenges in a Industry environment, as they

can lead to inaccuracies in financial reporting and potential financial losses. To address these
discrepancies, we employed a systematic approach to investigate and resolve issues. We began
by identifying the source of each discrepancy, which often involved collaborating with other
departments to trace transactions and verify records. Once the source was identified, we made
the necessary corrections to align the records accurately. To prevent future discrepancies, we
conducted regular reconciliation audits, which allowed us to identify potential issues early and
address them before they could escalate. This proactive approach to reconciliation helped
maintain the accuracy of the bank’s financial records and ensured the reliability of the Internal
Control Over production processes.

In generally, by implementing these four measures, we were able to effectively overcome the
challenges we encountered during our internship at the Hawassa of Injo Apparel manufacturing
PLC. These actions not only contributed to the smooth operation of the Internal Control Over
production Department but also equipped us with valuable skills and problem-solving abilities
that will be beneficial in our future careers.

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 CHAPTER THREE

3 THE OVERALL BENEFITS I GAINED FROM THE

INTERNSHIP
3.1 Benefits We Gained in Terms of Improving Our Practical Skills

During our group internship at the Hawassa ranch of Injo Apparel manufacturing PLC. we
collectively gained several benefits that significantly enhanced our practical skills. These
benefits were crucial for our professional development and deepened our understanding of
internal control over production processes.

1. Enhanced Document Management Skills

As a team, we improved our document management skills by developing and implementing

efficient practices. We learned to systematically handle large volumes of documents, focusing on
accurate sorting, filing, and prioritization. The use of checklists and a structured approach
ensured that important documents were managed effectively, which streamlined our workflow
and minimized errors.

2. Improved Data Entry Accuracy

Our group’s meticulous approach to data entry significantly enhanced our accuracy. By adopting
a double-check system, we collectively ensured that data entered into the financial management
system was reviewed by multiple team members. This collaborative verification process reduced
errors and improved the reliability of financial records, underscoring the importance of accuracy
in financial management.

3. Strengthened Document Security Awareness

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We gained a comprehensive understanding of document security through our adherence to strict
security protocols. By employing secure filing methods and limiting access to sensitive
documents, we effectively protected confidential information. The practice of maintaining an
access log for tracking document handling further reinforced our awareness of security measures
and compliance with industry standards.

4. Effective Problem-Solving and Reconciliation Skills

Addressing reconciliation discrepancies as a group enhanced our problem-solving and analytical

skills. We developed a systematic approach to investigating and resolving financial issues,
collaborating with other departments to trace and correct discrepancies. Conducting regular
reconciliation audits as a team allowed us to identify and address issues promptly, which is
essential for maintaining accurate financial records and operational integrity.

Overall, our group internship at Injo Apparel manufacturing PLC. provided us with valuable
practical skills. From improving document management and data accuracy to enhancing
document security and problem-solving abilities, these skills are essential for effective internal
control in the production sector. The collaborative nature of our work helped us develop a solid
foundation for future professional roles and a deeper understanding of best practices in financial
management.

3.2 Benefits We Gained in Terms of Upgrading Our Theoretical Knowledge

During our group internship at the Hawassa of Injo Apparel manufacturing PLC, we collectively
benefited from a substantial upgrade in our theoretical knowledge. This experience provided
valuable insights into various aspects of internal control and management operations, enriching
our understanding of key concepts and practices.

1. Deepened Understanding of Internal Control Frameworks

Our internship allowed us to gain a comprehensive understanding of internal control

frameworks. We learned about the essential components of internal controls, such as control
environments, risk assessments, and control activities. This theoretical knowledge was reinforced

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through practical application as we observed and participated in the internal control processes.
Understanding these frameworks enhanced our ability to analyze and evaluate the effectiveness
of internal controls in a real-world setting.

2. Enhanced Knowledge of production Management Practices

Through our work with production management systems, we upgraded our theoretical
knowledge of production management practices. We gained insights into the principles of
financial accuracy, record-keeping, and reporting. This theoretical foundation was crucial for
understanding the importance of maintaining accurate financial records and the impact of data
integrity on financial decision-making and reporting.

3. Broadened Awareness of Security Protocols and Compliance

Our exposure to document security and compliance practices enriched our theoretical
understanding of security protocols. We learned about the principles of safeguarding sensitive
information and ensuring compliance with regulatory standards. This knowledge was essential
for grasping the importance of data protection in the production sector and understanding the
broader context of security measures.

4. Improved Grasp of Reconciliation and Auditing Concepts

Addressing reconciliation discrepancies and conducting regular audits provided us with a deeper
theoretical understanding of reconciliation and auditing concepts. We learned about various
reconciliation techniques, the significance of regular audits, and the role of reconciliations in
ensuring financial accuracy and integrity. This theoretical knowledge was crucial for developing
our problem-solving skills and understanding the importance of maintaining accurate financial
records.

Our group internship at Injo garment significantly enhanced our theoretical knowledge in
several key areas. From internal control frameworks and financial management practices to
security protocols and reconciliation concepts, the insights gained during this experience have
provided us with a robust theoretical foundation. This upgraded knowledge complements our
practical skills and prepares us for future roles in the and operational management sectors.

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3.3 Benefits We Gained in Terms of Understanding Work Ethics Related Issues

During our internship at the Hawassa of Injo Apparel manufacturing we gained valuable
insights into work ethics and related issues. This experience enhanced our understanding of
professional behavior and ethical practices in a production environment.

1. Emphasis on Integrity and Accountability

We learned the importance of maintaining integrity and accountability in all aspects of our work.
Adhering to ethical standards and being transparent in our tasks reinforced our commitment to
honesty and trustworthiness.

2. Importance of Confidentiality

Understanding the need for confidentiality in handling sensitive information was crucial. We
became aware of the ethical responsibilities involved in safeguarding client and bank data, which
is fundamental to maintaining trust and security.

3. Adherence to Professional Standards

Our exposure to the Injo professional standards highlighted the significance of following
established guidelines and protocols. We learned the importance of complying with regulatory
requirements and internal policies to ensure ethical and professional conduct.

4. Respect for Teamwork and Collaboration

The internship experience emphasized the value of teamwork and collaboration. We developed
an appreciation for respectful communication and cooperative work, which are essential for
fostering a positive and productive work environment.

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Our group internship at Injo Apparel manufacturing PLC. provided us with a deeper
understanding of work ethics, including integrity, confidentiality, adherence to professional
standards, and teamwork. These lessons are crucial for our future careers and contribute to our
overall professional development.

3.4 Benefits We Gained in Term of Entrepreneurship Skill

During our internship at the Hawassa of Injo Apparel manufacturing PLC. we developed several
key entrepreneurship skills that are valuable for future business endeavors. These skills are
essential for fostering innovation, problem-solving, and business acumen.

1. Strategic Thinking

We enhanced our strategic thinking abilities by observing and participating in decision-making

processes. We learned to analyze various scenarios, evaluate potential outcomes, and make
informed decisions, which are crucial skills for any entrepreneurial venture.

2. Problem-Solving Skills

The challenges we faced and overcame during the internship honed our problem-solving skills.
We learned to identify issues, devise practical solutions, and implement strategies effectively,
which are essential for addressing obstacles in any entrepreneurial context.

3. Project Management

Managing tasks and projects during our internship improved our project management skills. We
learned to plan, execute, and monitor projects efficiently, including managing timelines and
resources, which is vital for running successful business operations.

4. Staffing Acumen

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Exposure to financial management and internal controls provided us with a solid understanding
of financial principles. We gained insights into budgeting, analysis, and risk management, which
are crucial for making sound financial decisions in entrepreneurial ventures.

Our group internship at Injo Apparel manufacturing equipped us with valuable entrepreneurship
skills, including strategic thinking, problem-solving, project management, and acumen. These
skills are essential for our future business endeavors and contribute to our overall entrepreneurial
capabilities..

CHAPTER FOUR

4. SWOT ANALYSIS
4.1 SWOT Analysis of Injo Apparel manufacturing PLC

A SWOT analysis provides a comprehensive overview of the strengths, weaknesses,

opportunities, and threats related to the Hawassa of Injo Apparel manufacturing PLC. This
analysis helps in understanding the branch’s current position and strategic potential.

Strengths

1. Strong Local Presence: The Hawassa is well-established in Hawassa town, benefiting

from a strong local presence and familiarity with the community's needs.

2. Efficient Document Management: Effective document management practices and

robust internal control processes contribute to streamlined operations and reduced errors.

3. Experienced Staff: The branch employs skilled and experienced staff, enhancing its
ability to provide quality financial services and maintain operational efficiency.

4. Security Protocols: The implementation of stringent security measures ensures the

protection of sensitive information and maintains trust with clients.

Weaknesses

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 1. Limited Resources: Resource limitations can hinder operational efficiency and impact
the branch’s ability to fully address customer needs.

2. Challenges with Procedural Changes: Adapting to frequent procedural changes can be

challenging and may affect the consistency and effectiveness of service delivery.

3. Reconciliation Discrepancies: Occasional discrepancies in reconciliation processes can

lead to inaccuracies in financial records and require additional effort to resolve.

4. Document Overload: High volumes of documents can sometimes overwhelm the

system, leading to potential delays and inefficiencies.

Opportunities

1. Expanding Financial Services: There is potential for expanding financial services to

better meet the needs of a diverse clientele, including local businesses and residents.

2. Technological Advancements: Leveraging new technologies can improve operational

efficiency, enhance service delivery, and streamline internal processes.

3. Community Engagement: Increasing engagement with the local community can

strengthen relationships, build customer loyalty, and identify new business opportunities.

4. Training and Development: Investing in staff training and development can improve
skills, increase productivity, and support career growth within the branch.

Threats

1. Economic Instability: Economic fluctuations and instability can impact the financial
stability of the branch and affect its operations.

2. Competitive Market: The presence of other products institutions in the region can create
competitive pressure and affect the branch’s market share.

3. Regulatory Changes: Changes in regulations and compliance requirements can pose

challenges and require adjustments to current practices.

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 4. Security Risks: Increasing threats to data security and cybersecurity risks could
potentially compromise sensitive information and affect client trust.

The SWOT analysis of the Hawassa of Injo Apparel manufacturing PLC, highlights its
strengths, including a strong local presence and efficient document management, while also
addressing weaknesses such as resource limitations and challenges with procedural changes.
Opportunities for growth through service expansion and technological advancements are noted,
alongside threats from economic instability and competitive pressures. This analysis provides a
framework for strategic planning and decision-making to enhance the branch’s overall
performance and resilience.

CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1 Conclusion

Our internship at the provided a comprehensive learning experience, offering valuable insights
into the internal control over cash processes and the broader operations of the bank. Through this
practical exposure, we were able to apply theoretical knowledge, understand work ethics, and
develop essential skills relevant to the production sector.

The internship allowed us to gain practical experience in managing internal controls, handling
financial documentation, and adhering to security protocols. We developed a deeper
understanding of strategic thinking, problem-solving, project management, and financial
acumen. The experience also highlighted areas for improvement, including addressing resource
limitations and adapting to procedural changes.

The SWOT analysis of the identified key strengths, such as its strong local presence and
efficient document management, alongside weaknesses like limited resources and challenges
with procedural changes. Opportunities for growth were noted, including service expansion and
24
technological advancements, while threats from economic instability and competitive pressures
were also recognized.

Overall, our time at the Hawassa has equipped us with practical skills and a robust
understanding of operations, which will be valuable in our future careers. The insights gained
will contribute to our professional development and prepare us for various roles within the
company sector.

5.2 Recommendations
Based on our observations and experiences during the internship, the following
recommendations are proposed to ehance the operations and effectiveness of the
1. Enhance Resource Allocation: To address the issue of limited resources, the branch
should consider optimizing resource allocation and seeking additional support where
necessary. Investments in technology and staff training can improve operational
efficiency and service delivery.
2. Streamline Procedural Changes: The branch should implement a structured approach
to managing procedural changes. Regular training sessions and clear communication of
new procedures can help staff adapt more effectively and maintain consistency in
operations.
3. Strengthen Reconciliation Processes: To minimize discrepancies in reconciliation, the
branch should reinforce its reconciliation procedures and conduct regular audits.
Implementing additional checks and balances can improve accuracy and reduce the
likelihood of errors.
4. Expand assurance Services: Exploring opportunities to expand material services can
help the branch better meet the needs of its diverse clientele. This could involve
introducing new products or services tailored to the local community and business sector.
5. Enhance Community Engagement: Increasing engagement with the local community
can strengthen relationships and build customer loyalty. The should consider community
25
 outreach initiatives and programs that align with its mission of financial inclusion and
economic development.
6. Adopt Technological Innovations: Leveraging new technologies can improve efficiency
and streamline internal processes. The should stay updated with technological
advancements and explore solutions that enhance operational effectiveness and customer
service.
By implementing these recommendations, the Hawassa of Injo Apparel manufacturing PLC can
further improve its operational effectiveness, enhance customer satisfaction, and strengthen its
position in the production sector.

6, References
Amare, A. (2018). Internal Control and Its Impact on production Performance in Ethiopian Injo
Apparel manufacturing PLC. Ethiopian Journal of Economics and Investment 23(1), 32-
48.
Berhanu, M. (2019). The Role of Internal Controls in the Prevention of Fraud in Ethiopian .
Journal of Industry& Investment in Africa, 12(3), 67-82.
Sintayo, D. (2021). Operational Risks in Ethiopian Industry Institutions. Journal of Business and
Management.
Getachew, T. (2021). The Effectiveness of Internal Control Systems: A Case Study of Selected
Ethiopian Injo. International Journal of Financial Studies, 9(2), 89-105.
Mathiwos, A. (2023). General Management in Ethiopian Industry: A Comprehensive Overview.
Ethiopian Journal of Finance.
Sisahe, S. (2020). Internal Control Practices in EthiopianN Injo: An Assessment of Compliance
and Efficiency. Journal of Quality and staff, 15(4), 121-138.

Injo of Ethiopia. (2022). Annual Report 2021/2022. Addis Ababa: NG.

Sidama Region Economic Report. (2023). Economic Development and Production Inclusion in
Sidama. Sidama Regional Government.
Tesfaye, A. (2020). Internal Control Systems in Ethiopian Industry Institutions: Challenges and
Best Practices. Journal of purchasing & Finance, 14(2), 45-71.
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Hailemaram D, G. 2006). Internal Control Mechanisms in the Ethiopian Manufacturing plc
Sector: An Analytical Perspective. African Journal of Business Management, 18(6), 159-
195.

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