Caa Finance Internship Report 6p1d2y

INTERNSHIP

REPORT

SUBMITTED BY: M. NABEEL RAJA

On

Submitted By :

M Nabeel Raja

From

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To My Beloved Parents For Having Firm Belief in My Abilities & Whom Prayers Enabled Me To Accomplish This Milestone and also the Staff of CAA For their guidance, moral and perseverance.

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F

irst of all I are thankful to Allah for giving me the valor

to remain dedicated to make this progress report. This underlying report is based on the analysis of different finance functions of CAA Pakistan. I present my gratitude to all the staff of Billing, G.P Fund and last but not least Disbursement department.

I hope the present efforts will live up through the Expectations of all who have invested time, Efforts and prayers in making it possible.

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TABLE OF CONTENTS Executive Summary ................................................. 1 - 2 CAA vision mission and core values ..............................3 Organizational Chart ....................................................4 Historical background of CAA ................................. 5 - 6 About Civil Aviation Authority .................................. 7 - 9 About Finance Department ......................................... 10 Internship Overview ............................................. 11 -13 Billing Department .............................................. 11 Disbursement Department .................................. 12 General Provident (G.P) Fund ............................. 13 Conclusion ................................................................. 14

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EXECUTIVE SUMMARY The internship in B.B.A program is very beneficial to have practical exposure of how things really go in business world. Being a student who wants to make a mark in the field of Business istration, the best place to gain practical understanding of Business istration was to do internship in the “Finance Department of Civil Aviation Authority Pakistan” which can be regarded as one of the most dynamic authority currently in Pakistan. I took the internship in CAA which stands as a prominent name in Pakistan. I am proud to work as an internee with CAA and this experience will surely help me in my future assignments as a Finance professional. The absolute guidance and concern of higher management, perfect working environment with immense cooperation of the staff of all departments especially the Cash Disbursement department facilitated in making my internship a wonderful learning experience in all aspect. The internship duration was of four weeks 30th June 2014 to 25th July 2014, though which i am able to get direct interaction with the staff of finance. Through this internship I am able to meet and interact with different vendors and people. The entire tenure of my internship was very informative & learning. All the employees

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cooperated with me which is very appreciated and provided us the sound information which was not only availed us in making report but also enhanced our knowledge, professional skills, managerial communication, communication skills, confidence and team work. In my first week i sent to billing department, In billing department my focus only on Aeronautical Billing in which I learn route navigation and airport charges and also learn billing adjustment. My second and Third week is related to Disbursement; there I observe all the core activities perform by disbursement branch, functions or procedures of procurement. I also work here or Enterprise Resource Planning (ERP) and learn how to make invoices on Enterprise Resource Planning (ERP). My fourth week is concerned with the G.P Fund, there was very friendly atmosphere they gave us opportunity to in which I learned the procedures for G.P Fund .

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CAA VISSION Be a world-class service provider in the aviation industry”. CAA MISSION “Provide safe, secure and efficient best-in-class aviation services to the stakeholders”. CORE VALUES Commitment Professional Excellence Customer Focus Safety and Security Integrity

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ORGANIZATIONAL CHART

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HISTORICAL BACKGROUND OF CAA HISTORY OF CAA The Civil Aviation Authority was created in December 1982 to handle all matters related to Civil Aviation in Pakistan. In order to keep up with the rapid advancement in the field of aviation, it was felt that an autonomous body was required to bring the country's aviation infrastructure and facilities at par with international standards.

FUNCTIONS The CAA not only serves as a regulatory body on behalf of the Government of Pakistan, its functions include provision of services such as facilitation, air space management, Air Traffic Control and Fire Fighting Services. The Authority is also responsible for the planning, development and maintenance of all civil aviation infrastructures in the country. For the fulfillment of its function as a regulatory body, the CAA ensures conformity to the standards laid down by the International Civil Aviation Organization (ICAO), regard to flight safety, aircraft maintenance and medical fitness of pilots, air traffic controllers and engineers. It is also responsible for negotiating of air services agreements with other countries. The functions of CAA are carried out by professionals, through various Directorates at the Headquarters, assisted by five Zonal offices, Jinnah International Airport, Karachi, and the Civil Aviation Training Institute (CATI) in Hyderabad. The Directorates at the headquarters include Personnel Licensing

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Office, Flight Standards, Airworthiness, Air transport, Legal and Accident Investigation Board

STRUCTURE: The Civil Aviation headquarters are located in Karachi. The Director General is the head and the Deputy Director General is next in line. The airports are managed by Airport Managers and their deputies. Terminal Managers and their deputies are also involved in airport management. Moreover, managers for enger Protocol, Porter Facility and Janitorial handle their departments.

ACHIEVEMENTS: Since, and the Aeronautical communication and control project providing total radar coverage to Pakistan's air space, is testament to CAA's commitment Pakistan. The number of airports has risen to 42 from 23 in 1982. Besides new airports, 11 new terminal buildings, 3 new runways, and two new Hajj lounges were constructed by the CAA, in addition to the maintenance, extension and renovation of existing lounges. Karachi's prestigious to bring Pakistan's aviation-related facilities up to par with the best in the world. its inception, the CAA has endeavored to improve the aviation facilities in Jinnah Terminal Complex and the Aeronautical communication and control project providing total radar coverage to Pakistan's air space, are the best in the world. Testament to CAA's commitment to bring Pakistan's aviation-related facilities up to par with the best in the world .

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ABOUT CIVIL AVIATION AUTHORITY Pakistan Civil Aviation Authority is a Public sector autonomous body working under the Federal Government of Pakistan through the Ministry of Defense. It was established on 7th December, 1982 as an autonomous body. Prior to its creation, a Civil Aviation Department in the Ministry of Defense used to manage the civil aviation related activities. The day of 7th December has significance, as it coincides with the date of creation of International Civil Aviation Organization (ICAO) in 1944 as a result of the famous Chicago Convention. Incidentally, the United Nations have declared 7th December as the International Civil Aviation day and celebrated as such every year all over the World. All kinds of Civil Aviation related activities are performed by CAA including the regulatory, air traffic services, airport management, infrastructure and commercial development at the airports, etc. Recently, Civil Aviation Authority under Int Restructuring and Change Management process to meet the present and future challenges. This organizational transformation process identified Structure, Culture, Skills, and Rewards as four tracks on which simultaneous emphasis is being laid. The Vision, Mission, and Core Values have been identified. Wide-angle buyin process by CAA senior management with staff and lower 13 | P a g e

levels for bridging communication gaps between different hierarchical levels of the organization has been taken.

As a result of the Restructuring process, the fundamental organization structure has been balanced to focus on three core areas namely Regulatory, Air Navigations Services, and Airport Services. These Core / Line functions are fully ed by the various Corporate functions of the organization. The restructuring process has helped Pakistan Civil Aviation Authority to fully focus on: Strengthening its safety and security oversight role as per

International Civil Aviation Organization requirements and standards.  To facilitate growth of the infrastructure development

(Airports and Airport Cities) on a fast-track basis. Private sector participation in the process is also being encouraged.  Enhanced Regulatory and air space management capabilities.

Moreover, emphasis is being laid on commercialization of its assets and land with improved customer / enger service standards, benchmarked with top performing international airports.  Development of a New Aviation Policy for the country in

consultation with the Ministry of Defence, Planning Commission, World bank, Airlines, and Aviation Experts (Expected to be considered by the Cabinet for approval shortly).

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 Investing in Human resource development through

structured approach with particular focus on quality of people and enhancing their professional capability.

Quality work on new initiatives is in progress such as introduction of Enterprise Resource Planning (ERP), Health, Security, Safety, and Environment (HSSE), Corporate Social Responsibility (CSR), Ethics Management Program, Customer mechanism at the airports, Employees Performance Management system, benchmarking, outsourcing of non-core and wasteful activities, etc. Recently, I have embarked upon a challenging phased program to acquire international standards of Integrated Management System (IMS) in CAA during which the international standards of ISO 9001:2000 (Quality Management System), ISO 14001:2004 (Environmental Management System), and OHSAS 18001:2007 (Occupational Health and Safety Management System) shall be acquired.

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ABOUT FINANCE Department Finance department is one of the biggest departments in CAA, which is responsible for provision of efficient and effective ing/budget. The feasibility of extending financial, istrative, technical facilities is control by this department. The duties and functions of a typical finance department can be classified into two generic categories. The first category is PLANNING and the second function is CONTROLLING. These activities are inter-related and inseparable because if there is no planning these will not be any control. Therefore, planning and control move together. Planning refers to the activities, which bridge the gap from the starting point to the terminal point. Planning in the finance department under review refers to the activities of Cash Flow and Budget preparation. These are the major activities (planning) in any such department.

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INTERNSHIP OVERVIEW BILLING DEPARTMENT Billing department do the process of sending an invoice to customers for goods or services. There are two type of billing in Civil Aviation Authority which are:  Aeronautical Billing  Non Aeronautical Billing

Aeronautical Billing: Following are the functions of aeronautical revenue 1.

Landing and housing fee

2.

Aircraft power supply

3.

Route navigation fee

4.

CIP lounge income

Non-Aeronautical Revenue Rent electricity & water charges. In billing department my focus only on Aeronautical Billing in which I learn route navigation and airport charges and also learn billing adjustment.

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DISBURSEMENT DEPARTMENT Disbursement means “To Distribute”, so the disbursement branch deals with the procedure for making payments to employees of salary Allowances and other benefits. Following is the list of procedure:  Payroll payments  Payroll adjustment  Casual workers It also deals with the procurement procedure which is to be made through the istration branch. The istration branch deals with the procurement of furniture and furnishing, medical store, R/M service contracts and the purchase of stationary for the Authority . Following Core activities perform by disbursement branch: 1) Financial concurrence 2) Issue of policies/procedure regarding Disbursement, Funds Salaries/Allowances. 3) Payment of bills/invoices. 4) Record of disbursement & returns. 5) Remittances 6) Salary/GP Fund & Pension payment.

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GENERAL PROVIDENT (G.P) FUND A general provident fund is a form of social safety net into which workers must contribute a portion of their salaries and employers must contribute on behalf of their workers. The money in the fund is then paid out to retirees or in some cases it gave to employee if they want. On that contribution CAA invest it to the banks that have A+ rating and higher bid and the return on that investment will add on employees . The Interest / Profit Rate for each Financial Year is announced by the Government i.e. by Finance Division for each financial year at the start of next fiscal year. If employee wants this money before his retirement, then there are two types of advances through which this fund would be given to employee.  Refundable Advance  Non-Refundable Advance.

Refundable Advance It’s a temporary advance can be taken from the General Provident Fund (GPF) and employee will return it to the employer and its add back in his G.P Fund.

Non-Refundable Advance Its non-refundable and employee wouldn’t return it to the employer.

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CONCLUSION As an internee in CAA the main focus of my internship was on Finance Department. In which included all the concerned sections (Billing, Cash Disbursement and G.P Fund) in these departments I have learned the Payment of bills/invoices, Record of disbursement, GP Fund payment. In my four weeks internship program i observe that the flow of work is very professional and up to date and atmosphere is very friendly and there is no difference between officers and staff. Everybody is so corporative and helpful. During my time at the CAA, i was involved in a lot of different tasks of office work.  Work with the finance team  Manage the monthly tracking  the payment processing team  Data entry My internship at the CAA was an outstanding experience. I got a deep and inspiring insight in the work of CAA Pakistan, but as well as the other friendly and cooperative staff took a lot of effort to make it a helpful visit for me in every way.

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