PREPARED BY:

Name: Nigusu Kassie Getaneh

Id.No. ExAcc 0232/06

Submitted To: Department of Accounting and Finance

January 2016

Adama, Ethiopia

ACKNOWLEDGEMENT
First of all, I would like to thank the almighty God who helped me throughout my life in
all aspects for all his sincere, faithful and immense devotion to help me for the
accomplishment of this practical attachment and to bring me here from the start.

Besides, I am thankful to Adama Science and Technology University, department of

Accounting and Finance in particular, for giving the opportunity to conduct this practical
attachment.

I also wish to express my gratitude to the officials and staff members of ERCA Adama
branch who rendered their help during the practical attachment by providing the relevant
documents and information.

ABSTRACT

This report is prepared to describe main issues about the hosting organization i.e. ERCA
Adama Branch Office, such as background, powers and duties, cardinal issues,
 organizational structure, performance, SWOT, and problems of the branch and
suggestions to solve the problem.

The report also describes the background, objectives, major responsibilities and activities,
and problems of Adama Customs and Revenues Branch Office procurement and finance
administration department. It also constitutes my responsibilities and contributions in the
department and performance evaluation of my activities.

Besides the report includes main points about the rationales and significances of the
practical attachment, relevance of the organization to my study, application theories in
the real world, and major problems that I face during the practical attachment and
solutions taken to solve the problem.

In the end, the report forwards the possible solution to be taken by ERCA Adama branch
to mitigate problems in the Procurement and Finance Department in particular and the
organization as whole.

Table of Contents

Contents Page

Acknowledgment-----------------------------------------------------------------------------------I
Abstract----------------------------------------------------------------------------------------------II

Table of content------------------------------------------------------------------------------------III

List of abbreviations-------------------------------------------------------------------------------V

PART ONE

1. Organizational Report--------------------------------------------------------------------------1

1.1. Background of the organization-------------------------------------------------------1

1.1.1. Establishment of ERCA-----------------------------------------------------1

1.1.2. Powers and Duties of ERCA Adama Branch Office--------------------2
1.2. Cardinal Issues (Vision, Mission, Values & Objectives)--------------------------3
1.2.1. Mission of the Office--------------------------------------------------------3
1.2.2. Vision of the Office----------------------------------------------------------3
1.2.3. Values of the Organization -------------------------------------------------4
1.2.4. Objectives of the Organization --------------------------------------------4

1.3. Organizational Structure --------------------------------------------------------------5

1.4. Performance of the Organization in Relation to its Objectives -------------------6

1.5. (SWOT) Analysis of the Organization -----------------------------------------------6

1.5.1. Strength of the Organization -----------------------------------------------6

1.5.2. Weakness of the Organization ---------------------------------------------7
1.5.3. Opportunities of the Organization-----------------------------------------7
1.5.4. Threats of the Organization-------------------------------------------------8
1.6. Problems Observed in the Organization ---------------------------------------------8
1.7. Suggested Solutions (Measures) to Solve (Minimize the Problem)--------------8

PART TWO
2. Activity Report ---------------------------------------------------------------------------------10
2.1. Background of the Department -------------------------------------------------------10
2.2. Objectives and Major Responsibilities of the Department-------------------------10
 2.3. The Responsibilities and Major Activities of me as a Member of
the Department --------------------------------------------------------------------------11
2.4. Performance Evaluation of my Activity----------------------------------------------12
2.5. Problems Encountered and Remedial Measures I have taken --------------------13
2.6. Problems of the Department and Suggested Solutions ----------------------------13

PART THREE
3. Attachment Evaluation-----------------------------------------------------------------------------14
3.1. Rationales of Practical Attachment ---------------------------------------------------14
3.2. Significance of Practical Attachment-------------------------------------------------14
3.3. Relevance of the Organization and my Activity------------------------------------15
3.4. Applicability of Theories and other Learnt in the Class----------------------------15
3.5. Major Problems that Face During the Attachment----------------------------------16
3.6. Suggested Solutions and the Way Forward for the Attachment-------------------16

PART FOUR
4. Conclusions and Recommendation --------------------------------------------------------------17
4.1. Summary and Conclusion--------------------------------------------------------------17
4.2. Recommendation------------------------------------------------------------------------18
Reference-----------------------------------------------------------------------------------19
Appendix------------------------------------------------------------------------------------20

LIST OF ABBREVIATIONS

ASYCUDA – Automated System for Customs Data

E.C – Ethiopian Calendar

ERCA - Ethiopian Revenue and Customs Authority

ICT - Information Communication Technology

MOFED - Ministry of Finance and Economic Development

SIGTAS - Standard Integrated Tax Administration System

SWOT – Strength, Weakness, Threat, and Opportunities

VAT - Value Added Tax

WWW – World Wide Web

PART ONE
1. ORGANIZATIONAL REPORT
 1.1. BACKGROUND OF THE ORGANIZATION

1.1.1. Establishment of ERCA

The Ethiopian Revenues and Customs Authority (ERCA) was established by the proclamation
No .587/2008 on 14 July 2008, by the merger of the Ministry of Revenue, Ethiopian Customs
Authority and the Federal Inland Revenue Authority for the purpose of enhancing the
mobilization of government revenues, while providing effective tax and Customs administration
and sustainability in revenue collection. The main objective of the establishment of ERCA was
to streamline the public revenue generation function by bringing the relevant agencies under the
umbrella of the central revenue collector body (www.ERCA.gov.et).

This structuring aimed at improving service delivering, facilitating trade, enforcing the tax and
customs laws and thereby enhancing mobilization of Government revenue in sustainable manner.
A study called "Business Process Re-engineering" had taken place before the merger of the
foregoing administrations. The study was undertaken for a year and half beginning from
November 2007 by teams of officials selected from within the administration
(www.ERCA.gov.et).

There are five divisions directly reporting to the Director General each headed by Deputy
Director General. The divisions are: 1) Domestic Tax Development and Support Division 2)
Customs Programs Development and Support Division 3) Tax Law Enforcement Division 4)
Modernization and Corporate Division, and 5) Addis Ababa City Tax Program Development and
Support Division. The five divisions are further organized into 30 directorates (six under
Domestic Tax Development and Support Division, four under Customs Programs Development
and Support Division, ten under Tax Law Enforcement Division, eight under Modernization and
Corporate Support Division, and three under Addis Ababa City Tax Program Development and
Support Division)

ERCA is also further organized into branch offices to administer domestic and customs duties.
Accordingly, ERCA administers domestic taxes and customs duties in its 34 branch offices
throughout the country of which two are coordination offices located outside of
Ethiopia at the port of Djibouti and at the port of Burbera, Somalia
Adama Revenues and Customs Branch Office is one of the branches under ERCA. The Branch is
found in Adama town and its offices are found around Sar Tera Mina Building and Tikur Abay
specifically Bekelcha Transport Share Company buildings. The branch is organized by three
divisions directly reporting to the Manager each headed by Deputy Manager. The divisions are:
1) Domestic Tax Development and Support Division 2) Customs Programs Development and
Support Division 3) Modernization and Corporate Division. Currently the branch has around 338
numbers of employees.

1.1.2. Powers and Duties of ERCA Adama Branch Office

The ERCA Adama branch office has the following powers and duties:

 Establish and implement modern revenue assessment and collection system;

provide services based on rules of transparency and accountability, efficient, equitable
and quality service within the sector;
 Properly enforce incentives of tax exemptions given to investors and ensure that such
incentives are used for the intended purposes;

 Implement awareness creation programs to promote a culture of voluntary compliance of

taxpayers in the discharge of their tax obligations;

 Carry out valuation of goods for the purpose of tax assessment and determine and collect
the taxes;

 Collect and analyze information necessary for the control of import and export goods and
the assessment and determination of taxes; compile statistical data on criminal offences
relating to the sector, and disseminate the information to others as may be necessary;

 Examine goods and means of transport entering into or departing from Ethiopia through
customs ports, frontier ports and other customs stations, and ensure that customs
formalities are complied with;
  Investigate customs and tax offences, institute and follow up criminal proceedings in
courts; for the discharge of such responsibilities, organize its own prosecution and
investigation units and supervise their performance;

 Inspect and seize documents under the possession of any person that are required for the
enforcement of customs and tax laws; organize and operate modern laboratory inspection
of goods and documents;

 Decide the place where import and export goods are to be deposited; establish
warehouses, issue warehouse licenses; supervise duty-free shops; control the handling
and care of deposited goods; suspend or revoke warehouse licenses; collect license and
service charges;

 Provide appropriate capacity building support to regional revenue collecting agencies

with a view to harmonizing federal and regional tax administration systems;

 Enter into contracts and international agreements regarding tax and customs
administration;

 Exercise the powers and duties that were granted to the Federal Inland Revenue
Authority and the Customs Authority by other existing laws;

 Own property, sue and be sued in its own name; perform such other related activities as
required for the attainment of its objectives.

1.2. Cardinal Issues (Mission, Vision, Values and Objectives)

1.2.1. Vision of ERCA

ERCA’s vision is being a leading, fair and modern Tax and Customs Administration in Africa by
2025 that will finance Government expenditure through domestic tax revenue collection.

1.2.2. Mission of Adama Revenues and Customs Branch Office

ERCA’s mission is to contribute to economic development and social welfare by developing a
modern Tax and Customs Administration that employs professional and highly skilled staff who
promote voluntary compliance amongst individuals and businesses, and take swift action against
those who do not comply.

1.2.3. Values of Adama Revenues and Customs Branch Office

ERCA understands its customers and their needs, treat them with trust and respect and help them
meet their obligations. It acts with integrity, transparency, accountability and professionalism to
enforce customs and tax related laws. It works closely with stake holders and ensures the
participation of women.

1.2.4. Objectives of Adama Revenues and Customs Branch Office

ERCA Adama branch office has the following objectives:

 Establish modern revenue assessment and collection system; and render fair, efficient and
quality service;
 Assess, collect and account for all revenues in accordance with tax and customs laws set
out in legislation;

 Equitably enforce the tax and customs laws by preventing and controlling contraband as
well as tax fraud and evasion;

 Collect timely and effectively all the federal and Addis Ababa tax revenues generated by
economy, and

 Provide the necessary support to the regional states with the objective of harmonizing
federal and regional tax administration systems.
 1.3. Organizational Structure

To achieve the aforementioned vissions, missions, vlues and objectives Adama Revenues and
customs branch office has the following organizational structure:

Director General

Branch Manager

Ethics following team

Risk management Team

Internal Audit Team

Law Enforcement work process

Females and youth affairs

Senior offices

Plan performance and

Follow up Team

Customs Affairs Inland Tax Affairs Modernization & Corporate

Deputy slinger Deputy Manager Affairs Deputy Manager

Tax assessment and

Customs Clearance work Human resource Team
collector work process
process
 Post clearance Audit Tax Audit work process Customer service work
Team process

Tax Register Team Information Technology

Customs warehouse
team
Administration Team
Tax collection centers
Resource Administration
Customs control station
work process
1.4. The extent to which the organization is realizing its visions and
missions, and Objectives

The organization is taking many measures to realize its vision, mission, values, objectives and
goals. The main activities that are done are developing of modern Tax and Customs
Administration, designing customer’s charter with a strong performance monitoring system,
establishing well developed operational policies and procedures, using computerized
recording system, and implementing SIGTAS and ASICUDA which facilitate the tax
administration functions.

Though the organization is doing so, it is not achieving its objectives and visions fully, because
of inefficient and ineffective performance towards the achievement of its vision, mission, values,
objectives, and goals.

1.5. SWOT Analysis of the Organization

A SWOT analysis is one of the instruments or bases for the development of Revenue collection.
It shows many factors, internal as well as external, which affect the tax and revenue collection
and administration of the tax authority and pointed out a number of strengths that need to be built
upon to enhance the effectiveness of the tax administration and some weakness that need
improvement. In addition, it identifies a number of opportunities that the tax authority should
exploit as well as threats to be overcome. ERCA Adama branch has the following SWOT;

1.5.1. Strength of the Organization

The branch has the following major strengths;

  Customers Charter with a strong performance monitoring system,
 Availability of office materials like chair, computer, etc.
 Well developed and established operational policies and procedures,
 Fairly widespread office local network,
 The organization uses computerized recording system,
 The prevalence of team work between employees,
 Good personnel relationship and information sharing between and among
employees of the organization,
 Implementation of SIGTAS and ASICUDA to facilitate the tax administration
functions,

1.5.2. Weakness of the Organization

Major weaknesses of adama revenues and customs branch office are;

 Shortage of experienced and professional employees in the office,

 Mismatch between the work and the skills of the worker,
 High turnover of qualified and experienced human resources,
 Inadequate health and safety measures for employees,
 Ineffective compliance risk management system,
 Inefficient allocation and management of internal resources,
 Ineffective implementation of the performance management system,
 Employees are not punctual in working time,
 Non existence of incentive reward to employees,
 The availability of the branch offices in different places,
 Failure to update tariffs, charges and their bases,
 Lack of standby generators to mitigate power failure,
 Weak tax assessment and auditing capacity,

1.5.3. Opportunities of the Organization

The branch has the following major opportunities;

 Availability of educated and affordable labor force in the labor market,

  Economic development of the country,
 Increment of investments,
 Training and material support from foreign countries,
 Government political commitment to enhance revenue collection,
 New developments in ICT and financial sector payment systems,
 National Anti-corruption Policy and legal framework,
 Upgrading of border, road, railway and other infrastructure by the Government,
 Government's decentralization policy,
 Ineffective and in appropriate technology usage,

1.5.4. Threats of the Organization

Major threats of Adama Revenues and Customs Branch Office are;

 Tax exemptions and concessions granted by Government,

 Low levels of tax compliance,
 Inadequate capacity of local ICT vendors,
 Negative image of the public about ERCA,
 Poor network especially poor internet services and power supply,
 Corruption or rent seeking behavior may thwart revenue collection,
 High proportion of informal sector activities,
 Deficient record keeping by the taxpayers,

1.6. Problems Observed in the Organization

The major problems that affect the organizations current time operation and its critical issues are;

 Low level of information on activities performed,

 Unavailability of interrelated or downward plan,

 Inefficient employee management,

 Unclear performance evaluation,

  Weak system of feedback flow between employee and management,

 Non existence of strong relation with stakeholders like regional police and revenue
offices,

 Inefficient customs warehouse management,

 Delivery of services below standards,

 Unfair assessment of taxes,

 Use of ASICUDA and SIGTAX systems improperly,

 Low level of audit quality and fairness,

 Unorganized information about customers,

 Inability to collect receivables timely,

 Inefficient utilization of resources like car,

1.7. Suggested Solutions (Measures) to Solve (Minimize the Problem)

I believe that the organization should take the following measures to minimize and reduce the
above problems;

 Recording all information about activities performed,

 Planning interrelated plan by distributing the branch plan to each managers and
employees of the organization ,

 Managing employee efficiently ,

 Establishing clear performance evaluation mechanism,

 Creating strong system of feedback flow between employee and management,

  Forming strong relation with stakeholders like regional police and revenue offices,

 Ensuring Management of efficient customs warehouse ,

 Developing the capacity to provide services on or above standards,

 Ensuring fair assessment of taxes using different mechanisms,

 Use of ASICUDA and SIGTAX systems based on the usage manual,

 Ensuring audit quality and fairness through compliance risk management and
developing the skills and competences of tax auditors,

 Recording all information about customers,

 Collecting receivables on time,

 Developing efficient and effective utilization of resources like car,

PART TWO

2. ACTIVITY REPORT
2.1. Background of the Department

ERCA Adama branch Procurement and Finance Administration department is one of the
forty-seventh departments in the organization. It is under the scope of resource
administration work process. Currently there are ten employees in the department those
are: one department head, one senior finance officer, two purchasing officers, one finance
officer, two junior finance officers, one casher and one secretary. However, the department
needs additional two finance officers.

2.2. Objectives, Responsibilities and Activities of the Department

The major objectives of the department are;

 Facilitating the transfer of the approved budget through preparing

procurement plan and cash forecast timely,
 Supplying materials based on each departments need and specification,
 Paying deferent expense timely,
 Closing the budget within 15 days after the end of the budget year.

The department has many responsibilities and activities. Among these activities the
following are the major ones;

 Preparing annual budget plan,

 Collecting procurement needs from each department,
 Costing all aspects of defined and assessed requirements (i.e., determining what
level of financial resources is needed,
 Preparing procurement plan based on the approved budget and collected
procurement needs,
 Reporting findings to the appropriate authorities in advance of preparing a budget,
 Adjusting the approved budget under directives from appropriate authorities
and/or in response to variances between planned and actual expenditures with the
approval of the concerned body,

 Ensure the applicability of all financial laws, regulations, directives, manuals and
instructions,
 Control expenditure and ensure that such expenditure is incurred economically,
efficiently and effectively,
 Establish and maintain cash controls,
 Establish, maintain and reconcile the general ledger
  preparing tender document,
 preparing quarterly and monthly cash forecast,
 Paying employs monthly salary and allowance,
 Paying different payables deducted from civil salary of employees,
 Ensure transactions are properly recorded and entered into the computerized
accounting system,
 Maintain financial files and records,
 Serving as an agent of tax authority, that means collecting withholding tax and
VAT from purchase payments,
 Maintain the accounts payable and accounts receivable systems,
 Reconciling book balance and bank statement balance,
 Preparing monthly, quarterly and annual financial and budget utilization report,

2.3. Major Activities and Contributions of me as a Member of the

Department

Major Activities and Responsibilities

I am a permanent employee in the organization starting from February 01, 2003 E.C, and now
I am a senior finance officer in the department. As a member of the department I have the
following major responsibilities and activities;

 Verifying annual budget plan and its disbursement,

 Verifying budget adjustment needs,
 Verifying quarterly and monthly cash forecast,
 Verifying the preparation and payment of payroll, allowances and overtime,
 Verifying voucher payments,
 Verifying different payable payments such as withholding tax and VAT
collected from payment for purchases of materials and service, cost sharing
collected from salaries of employs, etc
 Ensure that transactions are properly recorded and entered into the computerized
accounting system,
 Verifying Bank reconciliation,
 Verifying monthly financial and budget utilization report,
  Conducting all other activities delegated from the department head, resource
administration work process owner, modernization and corporate affairs deputy
manager and general manager.

My Contribution in the Department

My contribution is not only limited to the department, but also to the organization as a whole.
I am contributing a lot to the organization for the last six years in achieving its vision,
mission, values, objectives and goals, and demonstrating good professional ethics. In doing so
the organization certified me two times in 2006 and 2008 E.C. budget years (see the
certificate in the appendix).

As a member of the department I am contributing too much in ensuring payment of

expenditures are in accordance with the prevailing rules and regulations, the record of
transactions are in conformity with government accounting principles and standards, the
preparation of financial and budget utilization reports are on time, the efficient and effective
utilization of the approved budget, etc.

2.4. Performance Evaluation of my Activity

I believe that my performance was excellent. I was punctual, ethical, cooperative, effective in
work, systematic to solve problems, initiative to work, and positivist in the significance of
practical attachment. All in all I believe that I conducted everything expected from me during
the practical attachment using all my efforts, abilities, knowledge’s and skills.

2.5. Problems Encountered on the job and Remedial Measures I Have

Taken

Problems Encountered

 Work load due to absence of employees,

Remedial Measures Taken

 Conducting activities with tolerance,

2.6. Problems of the Department and Suggested Solutions

Problems of the Department

 Purchasing low quality and below standard materials by considering prices only,
 The existence of receivables balances for a long period of time,
 The existence of abnormal balances in the trial balances of the financial report i.e.
cash shortage on cashiers,
 Low time management,
 Lack of man power,

Suggested Solutions

 Purchasing quality and standardized materials by considering all inclusive

purchasing criteria’s like prices, quality, duration, strength, etc,
 Identifying the source document of receivables balances and take the necessary
measures like collecting the receivables from the concerned body or write off,
 Identifying the source document for abnormal balances and take the appropriate
adjustments,
 Developing the punctuality of employees,
 Employing professionals and capable accountants,

PART THREE
3. ATTACHMENT EVALUATION
3.1. Rationales of Practical Attachment

The following points are the main rationales for practical attachment;

 To enable students familiar with real professional practice,

 To give chance for the students to narrate and evaluate the applicability of theories
that they have learnt in class on real world,
 To develop the skills of the students beyond their theoretical understanding,
  To give chance for the student to know how to handle staff relationship,

3.2. Significance of Practical Attachment

Practical attachment has much significance for the students, for hosting and other non-
hosting organizations. Among these the following are the major significance of the
practical attachment for students;

 It enables students to relate theories learnt in class with the real world,
 It helps the students to increase creativity in work,
 It helps students to be ready for work,
 It increases the student’s productivity in the work area,
 It increases students initiation to work,
 It improves the student’s problem solving ability.

Not only the students but also the organizations that provide the chance for students are
beneficiary, because apprentices serve as temporary employees of the organization. It is also
significant for reducing the training cost of other employer organizations.

3.3. Relevance of the Organization and my Activity

The Ethiopian Revenues and Customs Authority (ERCA) is the body responsible for
collecting revenue from Customs duties and Domestic taxes. In addition to raising revenue, it
is responsible to protect the society from adverse effects of smuggling and contraband. It
seizes and takes legal action on the people and vehicles involved in the act of smuggling, any
tax evasion and avoidance while it facilitates the legitimate movement of goods and people
across the border. This is one part in which my department deals with. Therefore, I can say
that the organization is relevant to my study.
 3.4. Applicability Of Theories and Others In Class On Real World

The department conducts its activities based on the generally accepted accounting principles,
theories, financial regulations, rules, directives, manuals designed by ministry of MOFED.

In Strategic management it is believed that every organization, either

private or government, should have its own vision, mission, values,
objectives, SWOT and strategic goal. Likewise, Adama Revenues and
Customs Branch office concerned with all the above issues and is striving
for the achievements.

Ethical principles such as punctuality, transparency, responsibility,

accountability, rule of law, etc which are the main concern of civics and
ethical education are also really applicable in the organization.

The management functions such as planning, leading, controlling, staffing,

organizing and evaluating that we learnt in introduction to management are
applicable in the organization. Statistics concepts like collecting,
organizing, analyzing and interpreting data are used in risk management of
the organization.

All theoretical concepts of government budgeting and controls like

preparation of budget, budget control, requisition of funds, voucher types,
transaction registers and ledgers, cash in safe and monthly report
preparations are strictly applicable in the branch.

Accounting information system i.e. Peachtree accounting is also practiced

in the organization. The department records all the transactions in the
general journal of the Peachtree accounting.

Macro economics concepts related to inflation, budget surplus and deficit

are practiced in branches budget plan, approval, adjustment and
utilization. The concept of master budget in cost accounting also works in
relation to variances in budget.

3.5. Major Problems that I Face During the Attachment

Lack of advice and immediate supervision from Adama Science and

Technology University; Department of Accounting and Finance during the
practical attachment.

3.6. Suggested Solutions and the Way Forward for the Attachment

I tried to solve the above problem by asking other students, professionals,

reading related literatures and my own experiences.

PART FOUR

4. CONCLUSIONS AND RECOMMENDATION

4.1. Summary and Conclusion

The Ethiopian Revenues and Customs Authority (ERCA) was established by the proclamation
No .587/2008 on 14 July 2008, by the merger of the Ministry of Revenue, Ethiopian Customs
Authority and the Federal Inland Revenue Authority for the purpose of enhancing the
mobilization of government revenues, while providing effective tax and Customs administration
and sustainability in revenue collection. ERCA has 34 branch offices.

Adama Revenues and Customs Branch Office is one of the branches under ERCA. The Branch is
found in Adama town and its offices are found around Sar Tera Mina Building and Tikur Abay
specifically Bekelcha Transport Share Company buildings.

The branch has its own vision, mission, values, goal, objectives, organizational structure and
SWOT, and its own problems. It is striving to achieve its vision, mission, objectives and goals
by identifying its strengths that need to be built upon to enhance the effectiveness of the tax
administration and some weakness that need improvement, opportunities that the tax authority
should exploit as well as threats to be overcome.

ERCA Adama branch Procurement and Finance Administration department is one of the
forty-seventh departments in the organization. The department has its own responsibilities,
activities and problems.

As a senior accountant in the department I involve almost in all activities of the department. I
played the role of verifying the correctness of activities conducted by each finance junior
officer and finance officers. In doing so I am contributing too much in ensuring payment of
expenditures in accordance with the prevailing rules and regulations.

The practical attachment has significance of enabling students familiar with real professional
practice, giving students chance to narrate and evaluate the applicability of theories that they
have learnt in class on real world. It has also its own significances for the hosting and non
hosting organizations by enabling graduating students skilful and familiar with the real world.

4.2. Recommendation
I believe that, Adama Revenues and Customs Branch office should take the following
measures to mitigate problems in the Procurement and Finance Department in particular and
the organization as whole;

 Record all information about activities performed and establish clear performance
evaluation mechanism to achieve its performance evaluation,
 Plan interrelated plan by distributing the branch plan to each managers and employees of
the organization to minimize gap of expected plan and actual performance,

 Develop management of employee through situational management style,

 Create strong system of feedback flow between employee and management,

 Form strong relation with stakeholders like regional police and revenue offices,

 Ensure Management of efficient customs warehouse,

 Develop the capacity to provide services on or above standards develop its service
delivery and customers satisfaction,

 Ensure fair assessment of taxes using different mechanisms,

 Use ASICUDA and SIGTAX systems based on the usage manual,

 Ensure audit quality and fairness through compliance risk management and developing
the skills and competences of tax auditors,

 Record all information about customers using information systems,

 Collect receivables on time,

 Develop efficient and effective utilization of resources like car, fuel, computers, and
other office supplies,

 Purchase quality and standardized materials by considering all inclusive purchasing

criteria’s like prices, quality, duration, strength, etc,
 Identify the source document of receivables balances and take the necessary measures
like collecting the receivables from the concerned body or write off,
 Identify the source document for abnormal balances and take the appropriate
adjustments,
 Develop the punctuality of employees to develop its working time management,
 Employ professionals and capable accountants,
 Build its own building to reduce its rent expense and other expenses like expenses to
build network infrastructure,

References

 ERCA tax audit manual

 Adama Revenues and Customs Branch office annual reports
 Procurement and finance administration team charter
 The Ethiopian federal government chart of account manual
 The Ethiopian federal government program budget manual
 www.ERCA.gov.et.
APPENDIX