MIDLANDS STATE

UNIVERSITY

FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING

WORK RELATED LEARNING

PRELIMINARY REPORT

 
BACHELOR OF COMMERCE ACCOUNTING HONOURS DEGREE
USHE TAFARA DENNIS, October 2017
 ` R152718E

NAME OF ORGANISATION: VINEYARD FUNERAL ASSURANCE (PVT) LTD

REGISTRATION NUMBER: R152718E

SURNAME: USHE

FIRST NAMES: TAFARA DENNIS

PROGRAMME CODE: HACC

PROGRAMME NAME: BACHELOR OF COMMERCE HONORS DEGREE

IN ACCOUNTING

ATTACHMENT SUPERVISOR: MAHWAHWA C (Mr)

REPORT APPROVAL
This report is approved as a true document reflecting a holistic view of the nature,
objectives and the behaviour of the organization. It also identifies and highlights the
activities and duties performed and what USHE TAFARA DENNIS is expected to learn
during his internship.

The student is currently studying Bachelor of Commerce Honours Degree in

Accounting at Midlands State University, during his attachment period from the month
of August 2017 to date stationed at VINEYARD FUNERAL ASSURANCE PVT LTD
head office in Harare.

Approved by: Mahwahwa CC

PAGE 1
 ` R152718E

Supervisor’s signature: _______________________________________________

STAMP

PAGE 2
 ` R152718E

TABLE OF CONTENTS
Preface 5

Acknowledgements 5

Purpose and Objectives of Work Related Learning 7

Purpose of work related learning 7

Objectives of work related learning 7

Foreword 8

Executive Summary 8

INTRODUCTION 9

CHAPTER ONE 10

Vineyard Funeral Assurance (Private) Limited: Overview 10

Vineyard Funeral Assurance (Private) Limited: Formation 11

Industry / Business Sector 11

Vineyard Funeral Assurance (Private) Limited: Company Profile 12

CHAPTER TWO 14

Organisational Structure 14

Board of Directors 15

Management 17

CHAPTER THREE 19

Operational Overview 19

Assurance Business Unit 19

Services Business Unit 22

CONCLUSION 24

PAGE 3
 ` R152718E

Preface
I would like to dedicate this work to my Mother and late Father Mr and Mrs D Ushe. The
virtues they have endowed me with from my infanthood to my adulthood have been a
guide and motivation that has made me a man of character and integrity purposed and
determined to lead a live that is standard to which many aspire to reach.

Acknowledgements
My profound appreciation and gratitude goes to…..

The Lord Jesus Christ for the gift of life and according me the opportunities that have
gotten me this far, your Grace, Mercy, Love and Power I say thank you Yahweh you are
forever faithful.

The wonderful family in which I was born in, on top of the list being my Mother
followed by my nine brothers and sisters. I want to say thank you for the love,
encouragement and support in cash or kind, the progress I have made in my life wouldn’t
have been possible without you.

The management and staff of Vineyard Funeral Assurance (Private) Limited special
mention to Mr C Mahwahwa our Finance Manager what a great mentor and father you
have been, thank you for your patience and confidence you have put in me. The entire
accounts department staff Mrs Nduna and Mrs Masunda and the rest of the permanent
members of staff thank you for your unwavering support, faithfulness and
encouragement.

My friends, Study mates and the MSU Christian Union Family. Singling out Trevor
Ramanzi my roommate and best buddy and Praise M Chombe my best friend, thank you
for your love and support you have always been there even through difficult patches of
life on campus. I love you.

PAGE 4
 ` R152718E

Finally the Midlands State University Faculty of Commerce, especially the Accounting
Department. Thank you for the coaching and training, you have instilled in and others
the statutes of professionalism and the accurate knowledge you teach us has given me the
greatest advantage that is needed for one to have a perfect accounting career and this
advantage is ‘competence’.

PAGE 5
 ` R152718E

Purpose and Objectives of Work Related Learning

Purpose of Work Related Learning

Industrial attachment is one of the pre-requisites which every student pursuing a degree at
Midlands State University is required to undergo at a certain level of study, depending
with the duration of the course. This is aimed at introducing the student to the Reality of
the Corporate Business World. As a requirement of the faculty of commerce, the
department of accounting has set aside the whole term of level 3 for work-related
learning. This helps a lot in equipping students to become future skilled employees,
entrepreneurs, directors and business minded people which our entire world is in need of.

Objectives of Work Related Learning

 To train students on how to put the theoretical knowledge they acquire from the
University into the practical hands-on knowledge of what is required by the
business world.
 To enhance employment opportunities for students from the experience gained
and provide the students with practical knowledge and experience making them
more attractive candidates for future employment opportunities.
 To give students an opportunity to gain confidence in what they are studying
through their exposure to the real business world.
 To provide opportunities for MSU to establish strong links with industry so as to
gain feedback on the relevance of its courses and the performance of its students.
 To give organisations a feel of the capabilities of the students and for them to
mould students into competent Business professionals.

PAGE 6
 ` R152718E

Foreword

This report was prepared in partial fulfilment of the Bachelor of Commerce Accounting
Honours Degree currently being pursued at Midlands State University. The report is
based on my work-related learning in the Accounts Department at Vineyard Funeral
Assurance PVT LTD starting from August 1 st 2017 to present date. This report is focused
on giving an account of the company’s brief description and background, and it is
finalised by a conclusion. Data was gathered through carrying out specific tasks,
literature review, sharing ideas, participatory observation and interviews.

Executive Summary

This is the first report prepared in partial fulfilment of the Bachelor of Commerce
Accounting Honours Degree in accordance to the requirements of the Faculty of
Commerce at Midlands State University. The purpose of this report is to provide an
overview of the operations of Vineyard Funeral Assurance (Private) Limited. The
purpose of industrial attachment is to equip students with hands on experience so that
they will not encounter challenges when they apply theory into practice upon completion
of their degrees. This will also enable them to qualify to form part of the workforce that
will benefit the Industry and the nation at large by grooming students into an efficient,
effective and productive workforce. The report is therefore regarded as a measure or
standard upon which theory is put into practice by undergraduate students and reveals the
importance thereof.

PAGE 7
 ` R152718E

INTRODUCTION

Vineyard Funeral Assurance (Private) Limited was established in the early 2000s as Life
Care Management (Private) Limited. Then, it was a funeral services provider and not an
assurance company, registered in terms of the Companies Act [Chapter 24:03]. The
company was then initially registered in 2003 to become a funeral assurer in terms of the
Insurance and Pensions Commission Act [Chapter 24:21] section 4(1)(a), (b) and (c) and
that is when her name was changed to Vineyard Funeral Assurance (Private) Limited.
Vineyard Funeral Assurance (Private) Limited is one of eleven funeral assurance
companies, that were re-registered by the Insurance and Pensions Commission in 2010
following promulgation of new US$ capital requirements. The company’s main thrust is
on targeting micro-small to medium enterprises as it steps up efforts to tap into the
estimated three million people employed in the sector.

PAGE 8
 ` R152718E

CHAPTER ONE

Vineyard Funeral Assurance (Private) Limited: Overview

Vineyard Funeral Assurance (Private) Limited is not yet fully fledged in the insurance
business sector but it is a serious player controlling 3% of the market share in terms
Gross Written Premiums according to the Insurance and Pensions Commission (IPEC)
quarterly reports published in 2016. Its head office is in the capital city, Harare and their
geographical spread through their branch network covers Bulawayo, Bindura, Karoi,
Kwekwe and Masvingo. Its core business is provision of funeral assurance products and
services through its two business units VINEYARD FUNERAL ASSURANCE and
VINEYARD FUNERAL SERVICES. Besides a need to improve its brand visibility,
Vineyard has shown that it’s a force recon with by the number of accolades it has
received over the years

 2017 Pensions and Social Protection Awards - Special Recognition Award

 2016 Southern Africa Zimbawe Micro Insurance Awards – Top Funeral Product
(STEMP: State Employee Package)
 Zimbabwe 2016 Business Awards - Top Emerging Funeral Services Company
of the Year.
 2015 Business Awards – Best Brand in the Assurance Category
 SME’s International Expo 2015 – Most Innovative Exhibitor
 SME’s International Expo 2015 – Gold Medal
 2011 MAZ Superbrand of the Year awards - Second Runner in the funeral
assurance category

PAGE 9
 ` R152718E

Vineyard Funeral Assurance (Private) Limited: Formation

Vineyard Funeral Assurance (Private) Limited was established in the early 2000s as Life
Care (Private) Limited, and then it was a funeral services provider and not an assurance
company, registered in terms of the Companies Act [Chapter 24:03]. The company was
then initially registered in 2003 to become a funeral assurer in terms of the Insurance and
Pensions Commission Act [Chapter 24:21] section 4(1)(a), (b) and (c) and that is when
her name was changed to Vineyard Funeral Assurance (Private) Limited. Vineyard
Funeral Assurance Company (Private) Limited is governed by a Board of Directors
comprising of eight members who are all captains of industry and commerce.

Industry / Business Sector

Vineyard Funeral Assurance (Pvt) Ltd is in the insurance sector and this is regulated by
the Insurance and Pensions Commission (IPEC). Licensing contributes to efficiency and
stability in the insurance sector. Strict conditions governing the formal approval through
licensing of insurance entities are necessary to protect consumers. The role of IPEC is to
ensure that players in the insurance sector are able to fulfil their obligations to
policyholders on an ongoing basis. The licensing procedure is the first step towards
achieving this objective. Thereafter IPEC is empowered to register and regulate insurers,
insurance intermediaries and loss assessors in terms of the Insurance and Pensions
Commission Act [Chapter 24:21] section 4(1)(a), (b) and (c). In terms of sections 7, 12
and 88 of the Insurance Act [Chapter 24:07] as well as section 15 of Statutory Instrument
49 of 1989 it is an offence for individuals and entities to operate as insurers, insurance
brokers, agents, loss assessor/risk management consultancy/claim investigator without
being registered by IPEC. It is IPEC’s responsibility to apply relevant licensing criteria to
prospective entrants consistently to ensure a level playing field at the point of admission

PAGE 10
 ` R152718E

to the insurance sector as well as enforce on-going supervision of licensed entities that
meet internationally recognized standards. This creates confidence in insurance sector.

In the funeral assurers’ sector where Vineyard Funeral Assurance controls 3% of the
market share, the other players are Cell Insurance, Doves, First Funeral, Foundation,
Moonlight, Passion, Ruvimbo and Sunset. Besides competition from these, there is also
the battle for the market from life assurers companies such as Nyaradzo and Old Mutual
in term of funeral products as well as banks and IT companies such as Econet who have
invaded the funeral assurers’ spare.

Like any other regulated sectors, this sector has seen its own share of unregistered
Funeral Assurers which has seen the regulator failing to stump them out specially in
Harare and Bulawayo. This is a cause for concern for the industry.

Vineyard Funeral Assurance (Private) Limited: Company Profile

 VISION - To be the market leader in the provision of diversified funeral

assurance products and services which match global standards and expectations.

 MISSION - To provide affordable quality funeral assurance, products and

services to our customers in the shortest possible time.

 VALUES - In pursuit of its vision and mission, Vineyard Funeral Assurance

(Private) Limited will be guided and uphold the following principles/core values.

Professionalism

We commit to honesty, integrity and professionalism in all

that we do for and in the name of the institution.

PAGE 11
 ` R152718E

Teamwork

We commit to teamwork and dependability for higher

productivity.

Integrity

We commit to upholding the integrity of the institution and

all its stakeholders.

Innovation

We commit to enhance products in line with the business

and its environment.

Respect

We commit to have respect for each person as an individual

deserving of our best service at all times without
discrimination.

PAGE 12
 ` R152718E
D
b
a
d
p
ste
n
o
H rIg
ily
w
m
T P
fc
R
k
v

PAGE 13
 ` R152718E

CHAPTER TWO

Organisational Structure

Vineyard Funeral Assurance (Pvt) Ltd is headed by the Board of Director’s followed by
the Executive Directors, Management team and the staff

ORGANISATIONAL STRUCTURE

Board of
Directors

Managing
Director

OPERATIONS FINANCE & MARKETING

MANAGER ADMINISTRATION MANAGER

BOOKKEEPER

SERVICES UNDERWRITING MARKETING BRANCH

CONSULTANTS CONSULTANTS ADVISORS CONTROLLERS

CLAIMS OFFICERS
MARKETING MARKETING
SALES AGENTS SALES AGENTS

UNDERTAKERS RECEPTIONIST PAGE 14

 ` R152718E

Board of Directors

The company is governed by a Board of Directors comprising of 6 members who are all
captains of industry and commerce. Vineyard Funeral Assurance (Pvt) Ltd is governed by
a board made up of a non-executive chairman appointed in accordance to the companies
Act chapter 24.03, managing director, executive director appointed by the managing
director and three non-executive directors. The Board meets after every 3 months to
discuss matters relating to operations of the companies, strategy and sustaining growth
being one of the core focus. The Boards comprises the following:

SAMSON MAVENDE (NON-EXECUTIVE CHAIRMAN)

SOLOMON T. CHIKANDA (MANAGING DIRECTOR)

WINFRED E. SANYIKA (NON-EXECUTIVE DIRECTOR)

TARISAI MUTANGI (NON-EXECUTIVE DIRECTOR)

DOUGLAS MARE (NON-EXECUTIVE DIRECTOR)

STEPHEN MUTEURA (EXECUTIVE DIRECTOR)

The board composition is very important in many perspectives and since the board
develops the mission, policies and overall direction of the organisation, people with
distinct values, opinions, relationships should comprise a board. The following profiles of
the Vineyard Funeral Assurance Board of Directors Members show a diverse inclusion
which provides an open opportunity to the building of multiple strategic alliances in
contrast to a homogeneous board:

CHAIRMAN – S. MAVENDE CA (Z), B ACC HONS (UZ)

PAGE 15
 ` R152718E

S. Mavende is the chairman of Vineyard Funeral Assurance (Pvt.) Ltd. He is a Chartered

Accountant by profession and is the founder of the company. He has worked for Kudenga
and Co Chartered Accountants. He has also worked for KPMG as an Audit Manager,
CAPS Holdings as Chief Financial Officer, ZSR as the Group Finance Manager and
currently he is the Financial Director for Olivine Industries.

MANAGING DIRECTOR – DR. S.T. CHIKANDA BBA IN MARKETING

MANAGEMENT (SA), DIPLOMA IN INSURANCE (IIZ) , DIP FINANCIAL
ACCOUNTING (IAC), DIP IN LEADERSHIP & MANAGEMENT, UZ

Dr. S.T. Chikanda is the Managing Director of Vineyard Funeral Assurance and is also
the Principal Officer of the company. Prior to joining Vineyard Funeral Assurance, he
was the Managing Director of Life Care Management Funeral Services (Pvt.) Ltd. He sits
on the Human Resources Committee of the company and is the current president of
ZAFA. He is a holder of a Diploma in Leadership & Management and currently he is
doing a Masters in Leadership & Management from the Midlands State University.

NON EXECUTIVE DIRECTOR – W.E. SANYIKA M ZIM, ACIS, RPAccZ

W.E. Sanyika is non-executive director of Vineyard Funeral Assurance (Pvt.) Ltd. He is a

Chartered Accountant by profession and is also an Associate Member of the Institute of
Chartered Secretaries (ACIS). Prior to joining Vineyard he worked for NSSA as a
Principal Pension Officer, Management Accountant and Senior Administrator. Currently
he does business and financial consultancy for a number of companies as a Managing
Consultant.

NON EXECUTIVE DIRECTOR – DR. T. MUTANGI LLB, PHD (UZ)

Dr. T. Mutangi is a non-executive director of Vineyard Funeral Assurance. He holds an

LLB Honours degree in Law and a PHD from the University of Zimbabwe. He is a senior

PAGE 16
 ` R152718E

partner at Donsa-Nkomo and Mutangi Legal Practitioners and he also sits on a number of
other boards.

NON EXECUTIVE DIRECTOR – D. MARE

D. Mare is a non-executive director and is a founder member of the company. He has

been in the financial services sector with ZB Bank from 1998 to date. He also sits on the
Human Resources Committee for the company and is currently studying for a Bachelor of
Commerce degree in Finance.

MARKETING / SERVICES DIRECTOR – S. MUTEURA

S. Muteura is a marketing/services director responsible for the marketing of assurance

funeral policies and services. He is a member of the Zimbabwe Institute of Management
and is one of the founder members of the company.

Management

The executive management team, tasked with the planning, organising, staffing, leading,
controlling and motivating in achieving the organisational objectives is made up of two
executive directors – Dr. ST Chikanda (Managing Director), S Muteura (Marketing
Director) and two managers:

OPERATIONS MANAGER – T. JINGO

T. Jingo is the Operations Manager of the company and is currently studying for an
Associateship qualification with the Insurance Institute of South Africa and an Executive
Diploma in Business Leadership with the Zimbabwe Institute of Management. He has 20

PAGE 17
 ` R152718E

years’ experience in the insurance industry having worked for Old Mutual from 1993-
2003 before joining the Company in May 2004. In 2001 to 2002 he was a columnist for
the weekly newspaper, The Business Tribune writing on pensions and other insurance
matters.

FINANCE & ADMINISTRATION MANAGER – C. MAHWAHWA

C. Mahwahwa is the Finance and Administration Manager and is an Accountant by

profession. Previously he was working as an accountant for Cochrane Engineering (Pvt.)
Ltd. Also, worked with World Vision Finance – Rwanda as a consultant and he is the
Board Chairman of MoneyMart Microfinance. Besides the professional qualifications, he
is currently studying for Bachelor of Commerce Honours Degree in Accounting with the
Midlands State University.

PAGE 18
 ` R152718E

CHAPTER THREE

Operational Overview

The operations for Vineyard Funeral Assurance are structured into two business units
(SBU) namely the Assurance SBU and Services SBU. Management generated this
organisational system in order to enhance operational efficiency to minimise cost and
maximise profit for the organisation thereby creating shareholder wealth. This also
ensures the organisation is conducting business at peak efficiency and ability, developing
and using resources necessary for delivery of goods and services to its customers.

Assurance Business Unit

The SBU is responsible for funeral policy products. Basically, there are three types of
products offered by Assurance SBU.

Vineyard Individual Life Funeral Assurance policies

Vineyard Group Life Funeral Assurance policies

Vineyard Prepaid (Green Route) scheme

Vineyard Individual and Group Funeral Assurance Schemes, the company provides
funeral services or cash in lieu of services in the event of death of a member, spouse,
child or any other dependant. Ever since its inception, the company has managed to
effectively and satisfactorily deliver its services to a broad base of clientele comprising of
both individual and corporate entities. The Company has a highly professional approach

PAGE 19
 ` R152718E

to service delivery and a customer relation management system that proactively focuses
on customer needs, problems and aspirations and it is against this background that the
company was second runner in the funeral assurance category in the 2011 MAZ
Superbrand of the Year awards.

Some of the Funeral Policy Products:

PAGE 20
` R152718E

PAGE 21
 ` R152718E

Services Business Unit

The Services SBU is responsible for the actual provision of the burial or cremation of the
deceased. Its synergy with Assurance SBU is that they are the providers of the Defined
Policy Benefits for the policyholders underwritten by the Assurance SBU. Services SBU
products include:

Provision of coffin/casket
Hearse to ferry deceased
Washing & dressing of deceased
Embalming
Provision of gown, shrouds and flowers
Mortuary services
Mourners’ transport
Cremation
Types of hearses available include a fleet of 20 hearses comprising of Ford Rangers,
Toyota Hilux Vigos, Nissan NP300s and executive hearses, as well as buses for provision
of mourners transport

PAGE 22
` R152718E

PAGE 23
 ` R152718E

Service Business Unit Products

PAGE 24
 ` R152718E

CONCLUSION
An understanding of the organisation to the attaché is vital in the fulfilment of the work-
related learning. The student must appreciate the entity’s nature of business; operating
environment – economic, regulatory, competition; products and service; and in that it
exposes the student on how the theoretical concepts learnt in the areas of study relate and
can be applied in the real business world. This also helps the attaché to make positive
contribution to the organisation besides self-development. Thus, the partnership of
Midlands State University and Vineyard Funeral Assurance is fruitful and beneficial to
all.

PAGE 25