AAA GROWERS LIMITED, SIMBA FARM ATTACHMENT REPORT

ACKNOWLEGEMENT

I want to humbly thank AAA Growers Management since they offered me a great opportunity to get attached to their firm (Simba farm), and practice the precious experience they have in their firm management. My special thanks go to Mr. Anthony Njoroge, Mr. Eric Mwebia, Mr. David Ndungu, Mr Paul Ndavi who has been my supervisor, the Payroll group and all the workers for making my attachment successful. I acknowledge the fact that I learned more than I was expecting. 

Brief History of AAA growersOut of a small trial project growing tomatoes, the concept of AAA Growers was born. Initially, setup in conjunction with the lending arm of the World Bank, the International Finance Corporation (IFC), as a micro finance orientated project, today AAA Growers is one of the leading exporters of premium & prepared vegetables from Kenya and the largest commercial grower and exporter of chilies from Kenya. We aim to provide quality products which redefine what innovative, healthy and delicious vegetables should be. AAA Roses (Forest Gate (EPZ) Ltd.) entered the floriculture industry in 2011 and in 2012 began exporting roses to the Netherlands, Great Britain, Germany, the Middle East and other markets. In a relatively short time AAA Roses built its strong name in the Kenyan flower industry mainly due to high quality products, modern facilities and commitment and dedication of our professional team.Out of a small trial project growing tomatoes, the concept of AAA Growers was born. Initially, setup in conjunction with the lending arm of the World Bank, the International Finance Corporation (IFC), as a micro finance orientated project, today, AAA Growers is one of the leading exporters of premium & prepared vegetablefromKenya. The company currently harvests 30 MT of gross products a day and exports annually over 4,000 Mt of fresh produce by air all over Europe and South Africa to leading retailers. The company grew from its single production site to four sites, and now cultivates nearly 650 hectares of arable land from its in house production alone, and boasts four custom-built food processing factories. In total, AAA Growers employ over 3,500 workers spread across four geographical locations in Kenya; and approximately 70% of the workers are women.FarmsAAA Growers operates four production sites spread over different geographical regions in Kenya. These farms are Hippo Farm in Thika, Turi farm in Nanyuki, Chesnut farm in Naro Moru and Simba farm at Nyahururu. Altitude also differentiates each site, with Hippo farm lying at 1,450 metres, Turi farm at 1,800, Chesnut farm at 2,000 and Simba farm at 2,050 meters above sea level. The diversification in the growing regions ensures sustainable production year round, taking advantage of the differences in weather patterns between the farms. Intense crop rotations are practiced between the sites to further ensure the sustainability of the lands. AAA Growers maintains, at par, standards across all the farms to ensure that the best levels of production are achieved. Consequently, all the farms have been equipped and enabled with efficient irrigation, spray and agronomical facilities to assist in this objective. Irrigation across all the farms is drip enabled, agronomical data is computerized and all chemical and fertilizer programs are managed by the crop walker program.VegetablesWe currently harvest 30 MT of gross products a day and export annually over 4,000 Mt of fresh produce by air all over Europe and South Africa to leading retailers. We grew from a single production site to four sites, and now we cultivate nearly 650 hectares of arable land from its in house production alone, and boast four custom-built food processing factories. Nowadays we are of the leading exporters of premium & prepared vegetables from Kenya and the largest commercial grower and exporter of chillies from Kenya. HerbsDemand by some of our clients led to addition of herbs into the product range that AAA exports. The growing started mid 2010 in chestnut Farm on a small scale and currently the herbs are spread across our three farms.  Our herbs are grown both in-house and open field to ensure continued supply across the year and consistent quality. Under the greenhouse we have 4 hectares and 8 hectares in the open field. The herbs are either packed in bunches of 25/50/100gm or packed loose into 1kg bags. The length depends on the customer specification. Boxing is done using polystyrene boxes or card board boxes depending on customer needs.AAA RosesAAA Roses (Forest Gate (EPZ) Limited) entered the floriculture industry in 2011 and in 2012 began exporting roses to the Netherlands, Great Britain, Germany, the Middle East and other markets. In a relatively short time AAA Roses built its strong name in the Kenyan flower industry mainly due to high quality products, modern facilities and commitment and dedication of our professional team. Currently we have nearly 20 ha of rose greenhouses and we are targeting to get up to 50 ha in next few years. The altitude of 2000 metres close to the equator is an extremely favourable location for the floriculture industry.Sustainability strategiesThe company, on all its farms, has introduced integrated pest management (IPM) and composing of bio chemicals in a bid to attain a zero maximum residue level (MRL) policy on all crops supplied. All farms are also fully drip enabled to ensure efficient utilization of water and fertilizers. Multi sites – The Company grows product across 4 Different sites to ensure consistency in supply, and that products are grown in the most favourable climatic condition.Diversified growing – Products are grown under drip, pivots, greenhouses to mitigate weather risks.Own farm production – The company farms Just Under 400HA of cultivated land, and produces over 90% of its exports from In house controlled production. The balance 10% is supplemented from a small group of Key Out growers.Packhouses – Each farm has its own packhouse thereby reducing the need to transport raw material, and ensuring cold chain management!Multi growingWe adopt different techniques as follows:Drip farming : To ensure economical usage of water and avoiding loss due to evaporationPivot farming: To enable beans production during dry and hot spells thus continuous supply.Greenhouses: Ensures all year round production for herbs, chillies, mangetout/snaps.Rotations: We grow more than 20 crops and system of crop rotation allows the soil to regenerate before the same crop is planted back. The crops are ploughed back to enrich the soil.Water conservation75% of all the Irrigation is drip Irrigation, and thereby significantly reducing the amount of water used for production.In each farm we have dams/reservoirs to store surplus water during rainy season. Simba 180,000m3Chestnut farm 250,000 m3Turi 180,000m3Thika 1.4 million m3Catchment reservoir proposed to harvest runoff from greenhouses.Wet land areas to be sited to filter water.Self regulating weir at the river intake (Simba farm) utilized to ensure that water is drawn from the river only when enough amounts can flow to the communities downstream.EnergyWhere ever practical, solar power is being installed to reduce power usage:All lights on solar power.Vegetable office on solar.Packhouse lights on solar.Electric fence powered by solar.Police camp on solar.Solar heating and lights on new managers’ quarters.Packhouses’ lighting will be converted to LED solar lights.Crop protectionWe are now using about 40% bio pesticides as our crop protection products, targeting 50% before year end. We are working with Koppert biological, Real IPM, etc.Beneficial insects are used both in the greenhouses and on some outdoor crops.Continual trial assessments of new bio pesticides products being undertaken.All crop residues are incorporated back into the soil.Rotational crop management followed.Insectaries established alongside blocks.Pheromone trap trials also being evaluated.Environment conservationIn all the farms, there are adequate buffer zones left as insectaries, animals’ corridors and beetle banks these are treated as no spray zones.Where the farms bonder wildlife conservation areas, electric fences have been put to minimise human/ wildlife conflicts.We are working closely with Kenya wildlife service and Kenya Forestry service to conserve the animals and other natural resources close to our reach.All the farms have conformed to the national regulation of 10% tree cover on each farm. we target to continuously increase this through yearly planting.Windbreaks being established alongside greenhouses and along access roads.Perimeter road along fence line acts as firebreak.Records of fauna and flora being kept and monitored.Natural farm productionWormery established to produce tea.Compost from waste flowers and vegetables also established to return back and improve fertility and condition of vegetable blocks.Apiary being setup to help improve pollination and produce honey.Tree nursery being established to grow various tree species and other plants.

COORPORATE SOCIAL RESPONSIBILITY We build relationships with our customers, suppliers and the local communities which we serve by encouraging our Partners to consider the needs of others and involve themselves in public service. Our biggest contribution to the community is through creation of employment both in the farms and packhouses. This has helped improve the income and locals e.g. in Simba moving from unsustainable practices like charcoal burning and cattle rustling. We have employed so far more than 3,200 people in our farms and packhouses. We listen to the community right from the time we buy the farms and become part of them by supporting them. Examples of some of our community projects are described below. Simba FarmThere is a proposal to build a modern clinic/hospital in the farm. This shall be done in partnership with AAR/any other medical service provider. The essence of having this done is to first have our workers treated and fit/healthy to work. The local community shall also gain in that they shall also receive medical attention from the hospital. Qualified medical practitioners shall run this facility.The farm has maintained and improved the road to and outside the farm. The roads serve the local communities too. This has improved inter town, inter communities communication. Accessibility to the near schools, dispensaries, markets and other places have been made easier. Accessibility to work place is also now fast and safe. With the improved murrum roads, security around the area is also improved. More police patrols are done from the police camp within the farm.Police Post: AAA has funded building of police post and houses for police officers within the farm. Insecurity in the area has been a big concern and we are happy that since this initiative cases of insecurity have dropped. We also provide support for Police patrols.  COMMUNITY SUPPORTWe build relationships with our customers, suppliers and the local communities which we serve by encouraging our Partners to consider the needs of others and involve themselves in public service. Our biggest contribution to the community is through creation of employment both in the farms and packhouses. This has helped improve the income and locals e.g. in Simba moving from unsustainable practices like charcoal burning and cattle rustling. We have employed so far more than 3,200 people in our farms and packhouses. We listen to the community right from the time we buy the farms and become part of them by supporting them. Examples of some of our community projects are described below. Simba FarmThere is a proposal to build a modern clinic/hospital in the farm. This shall be done in partnership with AAR/any other medical service provider. The essence of having this done is to first have our workers treated and fit/healthy to work. The local community shall also gain in that they shall also receive medical attention from the hospital. Qualified medical practitioners shall run this facility.The farm has maintained and improved the road to and outside the farm. The roads serve the local communities too. This has improved inter town, inter communities communication. Accessibility to the near schools, dispensaries, markets and other places have been made easier. Accessibility to work place is also now fast and safe. With the improved murrum roads, security around the area is also improved. More police patrols are done from the police camp within the farm.Police Post: AAA has funded building of police post and houses for police officers within the farm. Insecurity in the area has been a big concern and we are happy that since this initiative cases of insecurity have dropped. We also provide support for Police patrols. We build relationships with our customers, suppliers and the local communities which we serve by encouraging our Partners to consider the needs of others and involve themselves in public service. Our biggest contribution to the community is through creation of employment both in the farms and packhouses. This has helped improve the income and locals e.g. in Simba moving from unsustainable practices like charcoal burning and cattle rustling. We have employed so far more than 3,200 people in our farms and packhouses. We listen to the community right from the time we buy the farms and become part of them by supporting them. Examples of some of our community projects are described below. Simba FarmThere is a proposal to build a modern clinic/hospital in the farm. This shall be done in partnership with AAR/any other medical service provider. The essence of having this done is to first have our workers treated and fit/healthy to work. The local community shall also gain in that they shall also receive medical attention from the hospital. Qualified medical practitioners shall run this facility.The farm has maintained and improved the road to and outside the farm. The roads serve the local communities too. This has improved inter town, inter communities communication. Accessibility to the near schools, dispensaries, markets and other places have been made easier. Accessibility to work place is also now fast and safe. With the improved murrum roads, security around the area is also improved. More police patrols are done from the police camp within the farm.Police Post: AAA has funded building of police post and houses for police officers within the farm. Insecurity in the area has been a big concern and we are happy that since this initiative cases of insecurity have dropped. We also provide support for Police patrols. Meeting the Demand for Social Responsibility – Our supply chain workplace conditions under which our products are manufactured have become a dimension of quality and an important part of the AAA business value proposition. These factors are becoming critical assets in growing and maintaining our point of difference.Worker’s Welfare – Each of our farms have a vibrant workers welfare committee.SOCIAL COMPLIANCEOur obligation is to recognise the National Labour laws of Kenya and all our customer requirements relating to Ethical issuesSedex ,Smeta Guidelines and ETI Implementation:We recognise the ETI standard and the following clauses are our guideline:No forced or bonded labourFreedom of association and the right to collective bargainingHealthy and safe working conditionsNo Child labour and young workersNational minimum wageNon-discriminationMaximum hours of workDisciplinary practicesSecurity of employment (right to clear and written terms of employment)  1.1  BUSINESS MISSION AND VISIONVisionTo be the leading grower and exporter of flowers, veges and other crops both locally and globallyMissionTo supply in the world market quality and demand driven horticultural products that meet and surpass customer expectationsCore valuesPunctualityHonestyCustomer focusTeam work

SECTION 1: INTRODUCTION

Organizational structure

 The company has a good management structure which facilitates the production, AAA Growers head office situated in Nairobi that heads all the operations which is headed by the Directors under different units to ensure core value is attained. 

• Managing Director (Ariff Shamji): Oversees all the business operation
• Finance and Marketing Director (Farah Shamji): Controls Finance and Marketing      
• Operation Director (Neville Ratemo): Oversees all the operation
• Commercial Marketing Manager (Dana Malaskova): Oversee all the marketing operations
• Technical Manager (Frank Obure): Concern with all technical aspects, products quality, compliances and certification scheme

SECTION 2: ATTACHMENT EXPERIENCES 

ADMINISTRATION OFFICE.

In administration office there are 3 departments. This includes payroll, administration and human resource. All playing different roles but correlated. Payroll is in charge of financial records of salaries for employees, wages, bonus and deduction that take place in a given month. Human Resource is in charge of all recruitments of labour. 

The administration is to foresee smooth running of day to day activities in the farm. Strength and needs of labour would be therefore identified in the department. Depending with expected produce, maximum number of employees should be within the economic thresholds. If employee’s number is below the recommended man power, requisition is filled. The requisition had to be filled by production manager before being taken to human resource department. 

2.1 General Activities Undertaken 

“Payroll officer” is a general term used to describe the person who calculates and distributes payroll to AAA growers employees . Some companies use other job titles, such as “Payroll Manager,” “Payroll Clerk” or “Payroll Administrator,” to describe the position. As a payroll officer, you are not responsible for determining or setting salary levels. Depending on the company, you’ll either issue payroll checks or make direct deposits to employee bank accounts.

Payroll officers have the important duty of handling timekeeping and payment processing within large and small companies. “They ensure that AAA growers employees  are paid on time and that their paychecks are accurate. Attention to detail and accuracy is needed throughout the position. Payroll officers deal with company employees and the Intc ernal Revenue Service to make sure that records and PAYE and other deduction information are accurate. The officer may work in a team environment or be the sole payroll processor.

Timekeeping

Payroll officers are in charge of keeping all time records of AAA growers employees . They are responsible for collecting time sheets or having them sent to their computer electronically. They then ensure that all AAA growers employees ‘ hours are complete and accurate. Officers check records for discrepancies and process vacation requests. If inaccuracies are found the payroll officer contacts the AAA growers employees  so that they can be fixed.

Payment Processing

After time sheets are collected payroll officers process employee paychecks. They calculate all earnings and make sure deductions, sick pay, and direct deposits are accounted for and accurate. Officers handle wage garnishments, worker’s compensation, and raises. They also handle severance packages. On payday, payroll officers pass out checks and pay stubs to AAA growers employees .

Records and Reports

Payroll officers have to keep excellent records, as the records may be called upon later. Officers store physical or electronic files of all employee timesheets, sick days and vacation times. They file payroll reports and pull files for audits. Payroll officers also perform many reports for their department and company. They pull records for annual, quarterly and monthly reports. Officers also print out reports for supervisors. Additionally, officers track expenditures and check department budgets for accuracies.

PAYE and other deductions

Payroll officers process PAYE and other deductions for employee earnings throughout the year. They calculate PAYE and other deduction deductions and deposits. If there are any employee contact changes, officers enter the data and check for accuracies before the end of the year. They process withholding like social security, Medicare and 401ks. They keep up with all PAYE and other deduction procedures and laws so that the company is sending correct information to the IRS. “Finally, they prepare and mail earnings and PAYE and other deduction withholding statements for AAA growers employees ‘ use in preparing income PAYE and other deduction returns,”

Collect Employee Information and Timesheets

A payroll officer gets detailed contact information from AAA growers employees so payroll checks can be accurately calculated, distributed and deposited. This information usually includes a legal name, address, phone number and Social Security number for all AAA growers’ employees, as well as bank account routing and checking numbers for AAA growers employees who receive direct payroll deposits. Most hourly AAA growers employees  sign time sheets or punch into a timekeeping clock, so you must collect the time sheets and punch cards to calculate the total number hours worked in a given pay period. Pay periods range from daily to monthly, but most employers have a weekly or bi-monthly pay period.

Administer Payroll

Administering payroll usually requires an accounting software program, allowing you to quickly and efficiently enter employee work hours, hourly wage levels or pay based on annual salary levels. Accounting and bookkeeping programs let you specify PAYE and other deduction withholdings, bonuses, commissions and deductions for employee-paid benefits, so each pay-check is current. a payroll officer is also responsible for keeping track of vacation time, personal leave and sick days for each employee. Software programs help you stay up-to-date with each employee’s work situation.

Calculate Payroll PAYE and other deductions

A significant and sometimes complicated payroll duty is configuring payroll PAYE and other deductions, including NHIF and National Social Security fund (NSSF). Most accounting software programs have setup menus that help you create formulas for calculating employee and employer payroll PAYE and other deductions, based on marital status and claimed exemptions. Accountants, PAYE and other deduction preparers and Internal Revenue Service agents can help you create accurate formulas, or you can do the research yourself. Since PAYE and other deduction laws are ever-changing, it’s often difficult to keep up with new payroll PAYE and other deduction laws, so advice from a PAYE and other deduction specialist is often necessary. Fortunately, most new payroll laws go into effect on Jan. 1 and usually last for a year.

 Specific activities undertaken

While on attachment, the specific activities were;

Automated timekeeping systems. Depending on the circumstances, i was involved in  installing a computerized time clock. These clocks have a number of built-in controls, such as only allowing employees to clock in or out for their designated shifts, not allowing overtime without a supervisory override, and (for biometric clocks) eliminating the risk of buddy punching. Also, you should send any exception reports generated by these clocks to supervisors for review.

Calculation verification. If you are manually calculating payroll, then have a second person verify all calculations, including hours worked, pay rates used, tax deductions, and withholdings. A second person is more likely to conduct a careful examination than the person who originated the calculations.

Hours worked verification. Always have a supervisor approve hours worked by employees, to prevent employees from charging more time than they actually worked.

Match payroll register to supporting documents. The payroll register shows gross wages, deductions, and net pay, and so is a good summary document from which to trace back to the supporting documents for verification purposes.

Match timecards to employee list. There is a considerable risk that an employee will not turn in a timesheet in a timely manner, and so will not be paid. To avoid this problem, print a list of active employees at the beginning of payroll processing, and check off the names on the list when you receive their timesheets.

Overtime worked verification. Even if you do not require supervisors to approve the hours worked by employees, at least have supervisors approve overtime hours worked. There is a pay premium associated with these hours, so the cost to the company is higher, as is the temptation for employees to claim them.

Pay change approval. Consider requiring not just one approval signature for an employee pay change, but two signatures – one by the employee’s supervisor, and another by the next-higher level of supervisor. Doing so reduces the risk of collusion in altering pay rates. 

2.3 An analysis of learnt knowledge and applied skill

While on attachment at AAA growers, the attaché attained the following knowledge and skills

Mathematical Abilities

A good payroll employee has solid mathematical capabilities. This trait is necessary because payroll involves the calculations of employees’ wages and taxes. Furthermore, the payroll employee has to ensure that the employer’s taxes are deducted and employees’ benefits (e.g. vacation days) and voluntary deductions (e.g. retirement plan) are accurately computed. Without good mathematical skills, the payroll person is apt to make an abundance of errors, which can lead to incorrect pay checks and tax issues.

Analytical Skills

The payroll professional should have above-average problem-solving and analytical skills. Regardless of whether an error is the result of the payroll person, supervisor, employee or a system glitch, the payroll person must have keen analytical skills to understand the problem and solve it quickly. If complex tax errors arise, the payroll employee must be knowledgeable enough to work with the accounting department to fix them.

Experience

The payroll employee with experience is often well sought after. If you have at least five years payroll experience, particularly with one company, employers will view you as dependable and knowledgeable. If you are new to the payroll field, for an employer to be willing to train you, your other skills and attributes must be top-notch.

Software Knowledge

Most companies use payroll software to simplify payroll processing. There are many types of software available, so the more you know, the more beneficial you are to an employer. For example, if you know ADP, Quickbooks and Ultipro, you will most likely stand out more than the individual with only ADP experience. A good payroll employee is willing to learn as many types of payroll software as possible.

Honesty and Confidentiality

The payroll professional must be trustworthy and able to keep information confidential. Payroll includes handling employees’ personal information (e.g. bank accounts) and having access to the company’s funds. A good payroll employee remains honest, never indulging in embezzlement or theft. She understands that revealing employees’ payroll information, such as pay rate and garnishments, is a violation of trust and is unfair to all employees.

Client/Employee Service

An efficient payroll employee is always courteous to clients and other employees. She must be even-tempered, particularly when employees are upset about payroll matters. She needs to be patient, understanding and always willing to help those who require her services.

2.4 Strategy for utilization of contacts established during attachment

Besides getting a foot in the door with a potential employer establishing contacts during attachment has other advantages:

1. The opportunity to “test drive” a career (Would I be happier in marketing or advertising? Am I more comfortable working with patients or in a lab?)
2. Chances to network and expand the social horizon
3.  Establishing relationships with mentor
4.  An introduction to the field’s culture and etiquette i.e what to do and what not to do so as to remain ethical, conform with the culture of the organization and etiquette
5. Accumulating new skills and Gaining a “real world” perspective on an occupation such as how much overtime do employees really work? How much time is spent behind a desk versus in the field?

SECTION THREE: OBSERVATIONS AND CRITIQUE

3.1 Observations and critique

The attaché made the following observations and critique and recommended the control for nearly all payroll systems, irrespective of how timekeeping information is accumulated or how employees are paid:

Audit. Have either internal or external auditors conduct a periodic audit of the payroll function to verify whether payroll payments are being calculated correctly, employees being paid are still working for the company, time records are being accumulated properly, and so forth.

Change authorizations. Only allow a change to an employee’s marital status, withholding allowances, or deductions if the employee has submitted a written and signed request for the company to do so. Otherwise, there is no proof that the employee wanted a change to be made. The same control applies for any pay rate changes requested by a manager.

Change tracking log. If you are processing payroll in-house with a computerized payroll module, activate the change tracking log and make sure that access to it is only available through a password-protected interface. This log will track all changes made to the payroll system, which is very useful for tracking down erroneous or fraudulent entries.

Error-checking reports. Some types of payroll errors can be spotted by running reports that only show items that fall outside of the normal distribution of payroll results. These may not all indicate certain errors, but the probability of underlying errors is higher for the reported items. The payroll manager or a third party not involved in payroll activities should run and review these reports.

Expense trend lines. Look for fluctuations in payroll-related expenses in the financial statements, and then investigate the reasons for the fluctuations.

Issue payment report to supervisors. Send a list of payments to employees to each department supervisor, with a request to review it for correct payment amounts and unfamiliar names. They may identify payments being made to employees who no longer work for the company.

Restrict access to records. Lock up employee files and payroll records at all times when they are not in use, to prevent unauthorized access. Use password protection if these records are stored on line. This precaution is not just to keep someone from accessing the records of another employee, but also to prevent unauthorized changes to records (such as a pay rate).

Separation of duties. Have one person prepare the payroll, another authorize it, and another create payments, thereby reducing the risk of fraud unless multiple people collude in doing so. In smaller companies where there are not enough personnel for a proper separation of duties, at least insist on having someone review and authorize the payroll before payments are sent to employees.

Check Payment Controls

When you pay employees with checks, several controls are needed to mitigate the risks of fraud and various errors. Key controls are:

Update signature authorizations. When check signers leave the company, remove them from the authorized check signer list and forward this information to the bank. Otherwise, they could still sign company checks.

Hand checks to employees. Where possible, hand checks directly to employees. Doing so prevents a type of fraud where a payroll clerk creates a check for a ghost employee, and pockets the check. If this is too inefficient a control, consider distributing checks manually on an occasional basis.

Lock up undistributed pay-checks. If you are issuing pay-checks directly to employees and someone is not present, then lock up their check in a secure location. Such a check might otherwise be stolen and cashed.

Match addresses. If the company mails checks to its employees, match the addresses on the checks to employee addresses. If more than one check is going to the same address, it may be because a payroll clerk is routing illicit payments for fake employees to his or her address.

Payroll checking account. You should pay employees from a separate checking account, and fund this account only in the amount of the checks paid out. Doing so prevents someone from fraudulently increasing the amount on an existing paycheck or creating an entirely new one, since the funds in the account will not be sufficient to pay for the altered check.

 A Profile of Skills and Competencies Gained/ Acquired

Communication and interpersonal skills: The communication skills enabled me relate well with the staff it also helped me to deal with other departments like the accounting department which its main work is mostly to release funds the projects.

Teamwork: I was able to enhance my ability to be an effective team player with the staff in the project department, accounting department as well as the other departments. One cannot work alone but needs to co- operate with others so as to achieve personal and organization goals.

Technical Skills: I gained thorough knowledge concerning the job/ work being carried out in the Project Department.  I was able to apply what I had learnt in my studies in real working situation. 

Conceptual Skills: Having been trained as a Project manager I was able to see issues in total perspective. I was able to see how the whole organizations’ departments are   interlinked and worked together as one unit. 

Problem solving skills: This was especially when dealing with members of the public who were sometimes difficult as well some of the staff. 

Self-management Competencies: Since I gained these competencies, I was able to manage and make effective judgments. This helped me to cope with the work assigned to me during the attachment and also keep up with learning and doing my assignments

Record Keeping: This helped to gain knowledge in filing documents and feeding data into the computer systems for reference.

SECTION FOUR

SUMMARY, CONCLUSION AND RECOMMENDATIONS

4.1 Summary 

The attaché noted the following on a payroll system:

Your payroll system must be able to accommodate your employees and their various working hours. Once a good system is in place, you will have an accurate record of the working hours of your employees. An automated system minimizes the possibility of human error, as the only real factor is whether employees remember to clock in and out. An in-house accountant or bookkeeper, however, can easily make corrections when employees forget to clock out for lunch or when your time clock breaks down. The payroll system functions as a neutral third party that accurately records work hours when you outsource your payroll functions.

Payroll systems do not simply record work hours and pay. They must be set up for more complex operations, such as deductions for tax and benefits purposes. Between state and federal taxes, Medicare and Social Security, plus whatever benefit plan each employee contributes to, a substantial amount of calculations are needed. Most payroll systems can be customized to accommodate your tax and benefits needs and can be further adjusted for the specific circumstances of each employee. In-house payroll personnel and outside contractors must be thoroughly knowledgeable about which deductions are required under the law. No matter which payroll system you use, however, you are ultimately responsible for the accurate reporting and paying of payroll taxes.

Another feature of a payroll system is that it can be used to keep detailed and accurate records. These records can be stored in a main database on site, online or in an outside record-keeping facility. Record-keeping can help you monitor trends such as how much overtime you’re paying and how many employees participate in your company retirement plans. Records also ensure that you’re complying with all relevant laws and can prepare you for an audit or any other type of investigation of your business when you set up your system to monitor those activities. A payroll system that accurately stores hours makes end-of-year tax preparation smoother as well.

An automated payroll system can help eliminate busywork by streamlining the whole process of scheduling, record-keeping and payment. Employees can access their records, print pay stubs and, in some cases, put in requests for time off through an automated payroll system. Effective payroll systems of all kinds can be standardized and streamlined with advance directions. You can direct third-party administrators, automated systems and in-house bookkeepers to deposit earnings directly into employees’ bank accounts, eliminating the need for you to write personal checks.

4.2 Conclusion

Although payroll is a major cost factor for organisations, it remains an area that is frequently excluded from improvement projects. Increasingly, however, payroll is becoming a focus area for a significant number of organisations. There are three key reasons for this:

6. HR or finance transformation programmes revive the age-old “turf war” between HR and finance as where payroll should sit within the organisation.
7. Payroll systems that have served the organisation well for years are becoming obsolete or are based on older programs that are no longer cost effective to run.
8. Long term payroll outsourcing contracts are coming to the end of their contract periods and organisations are seeking greater savings from this highly transactional function. These factors present a good opportunity to review the payroll processes and systems for the value they deliver.

4.3 Recommendations

Payroll activities are said to account for as much as 35 per cent of an average HR department’s time. To make the most of this time and to prevent or minimize errors, here are four payroll processing best practices to institute in your business: 

1. Conduct regular, ongoing audits.

Frequent employee complaints about payroll are signals you should be conducting regular audits of the entire process. The best way to isolate and identify an issue is through a comprehensive workflow analysis, itemizing each step of the process from beginning to end.

Obviously, a company that still makes use of a manual timecard system should expect employees will enter incorrect information on occasion. But automated systems aren’t immune to mistakes, either. These include incorrectly classifying a new employee’s tax status or forgetting to adjust pay rates after an employee is given a raise.

2. Institute a transparent payroll policy.

Problems often come about as a result of employee misunderstanding of the payroll system, most often in organizations where pay policies are either not accessible or inadequately presented to employees. Many payroll issues, such as underpaid taxes or employee mis-classifications, can be corrected by instituting a wholly transparent payroll policy.

3. Seek employee input to improve payroll process effectiveness.

Even with a policy of transparency, never assume that people fully understand the ins and outs of payroll processing. Communicating with employees can help identify areas of confusion and misunderstanding, such as improper timesheet submission or other issues related to the use of time cards. 

Hold an all-staff meeting dedicated to payroll issues. It’s likely you’ll get enthusiastic participation, since every employee is directly affected by the process. At this meeting, ask employees what payroll processes work for them and what areas need improvement. You may be surprised by the creative suggestions you receive. 

If senior management has issues with the payroll process, confer with the CFO and/or senior accounting manager. Consider sponsoring a company-wide survey of all managers and supervisors to determine their level of satisfaction with current procedures. Again, inviting suggestions on improvement will encourage support from these individuals after changes are implemented.

4. Know payroll tax policies inside and out.

The Kenya Revenue Agency (KRA) strictly enforces payroll tax policies for small businesses in Kenya. It’s important that you and your HR staff thoroughly understand the employer’s obligations in this area — and that you keep pace with changes in federal government policies. Areas of emphasis should include:

• Remittance. Companies that fail to remit payroll taxes on time are subject to fines. If, for example, a remittance due date coincides with a public holiday or weekend, remember that remittance is due the following business day.
• Payroll deductions. The federal government generates payroll deduction tables on a regular basis, so it’s necessary to keep pace with any updates or changes.

Bonuses and retroactive pay increases. Deductions must accompany any bonus or retroactive pay increase: Check with the KRA on how to calculate the appropriate amount of taxes.