Internship Report: CAA Pakistan

Internship Report: CAA Pakistan

Submitted by:
Miss Anum Khan
Miss Maliha Khan
)

Submitted to:
Sir Ziaull Hassan
(CM Finance Coordination)

Date of submission: 09th July 2009

Internship Report: CAA Pakistan

TABLE OF CONTENT
SR.# Index Page #
1. Corporate information
2. CAA board member profile
3. CAA vision mission and core values
4. Future plans
5. Recent achievements
6. Dedication
7. Acknowledgment
8. Chapter # 1
8a Introduction
9. Chapter # 2
9a Historical background of CAA
10. Chapter # 3
10a. About CAA
11. Chapter # 4
11a. About finance department
12. Chapter # 5
12a Weekly overview about departments
13. Special thanks
14. Bibliography

Internship Report: CAA Pakistan

CAA BOARD MEMBER PROFILE
➢ Lt. Gen.(Retd) Syed Athar Ali : ( secretary defence/Chairman CAA
Board)
➢ Air Marshal Hifazat ullah Khan HI(M), S.Bt: ( Vice Chief of Air Staff/
Member CAA Board)
➢ Mr. Ashraf M,Hayat: (Secretary Planning and development
Division/Member CAA Board)
➢ Maj.Gen.Mir Haider Ali Khan HI(M) : (Additional secretary Ministry of
Defence/CAA Board)
➢ Mr.Sarshar Ahmad Khan:(Additional Secretary Military
Finance/Member CAA Board)
➢ Air Cdre (Retd) M.Junaid Ameen: (Director General CAA/Member CAA
Board)
➢ Capt.Mohammad Aijaz Haroon: (Managing Director PIAC / Member
CAA Board)
➢ Mian Muhammad Mansha: (Chairman MCB bank Ltd/Member CAA
board)
➢ Mr. Munnawar Hammid OBE: (chairman BOC Pakistan Ltd and Silk
Bank Ltd (formerly Saudi Pak Commercial Bank Ltd)/ Member CAA
Board)
➢ Mr.Qasim Rabbani: ( Director Invest Cap Bank /Member CAA Board)
➢ Syed Saleem Ahmed Zaidi: (Chief Executive, Glamour Int’I (Pvt)
Ltd/Member CAA Board)
➢ Mr. Khurshid Anwar: (Chief Executive Officer / Secretary CAA Board)

Internship Report: CAA Pakistan

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

Internship Report: CAA Pakistan

FUTURE PLANS

Internship Report: CAA Pakistan

Internship Report: CAA Pakistan
RECENT ACHIEVEMENTS

Internship Report: CAA Pakistan

Internship Report: CAA Pakistan
Executive Summary

The mandatory internship in BS (COMMERCE) 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 commerce, the best place to gain practical understanding
of commerce 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. We took the
internship in CAA which stands as a prominent name in Pakistan.
We are proud to work as an internee with CAA and this experience
will surely help us in our 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 Revenue
department facilitated in making my internship a wonderful
learning experience in all aspect.

The internship duration was of four weeks 12th June 2009 to 9th
July 2009, though we were able to get direct interaction with the
staff of finance. Through this internship we were able to meet and
interact with different vendors and people. The entire tenure of my
internship was very informative & learning. All the employees co-
operated with us which is very appreciated and provided us the
sound information which was not only availed us in making report
Internship Report: CAA Pakistan
but also enhanced our knowledge, professional skills, managerial
communication, communication skills, confidence & team work.

In our 1week we were sent to budget department, Budget involves

making of financial plan. Budget is always made on the basis of
past data, for particular year if the budget is to make, say for
example: purchasing of Machinery (Capital Expenditure), the need
to be on past data relevant to machinery expense and then budget
can be made, if there is any discrepancies, in particular year,
between actual and budgeted the reason should be find out and
must take appropriate action favorable to that circumstances.
Our second week is concerned with the Revenue department, there
was very friendly atmosphere they gave us opportunity to work
with Revenue Department, in which we learned the procedures for
accountability towards Income relevant to Head Quarters.

Third week is concerned with accounts; we visit all the sections in

accounts department. The work that was assigned to us was to
drive Outstanding Balance of Parties (and of locations
collectively).Against the Billing and Reconciliation of Monthly
Rent Return with General Ledger and their Adjustment.

Forth week is related to Disbursement; there we observe all the

core activities perform by disbursement branch, functions or
procedures of procurement. We also visited Payroll section and
saw how they maintain their cash book and bank book.

Internship Report: CAA Pakistan

 We dedicate this Report Book to

Our beloved Parents and Staff of CAA

For their guidance, moral Support
And perseverance.

Internship Report: CAA Pakistan

F irst of all we are thankful to Allah for
giving us 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.
We present our gratitude to all the staff
of Budgeting, Revenue, Accounts and last
but not least Disbursement department.

We hope the present efforts will live up

through the Expectations of all who have

Internship Report: CAA Pakistan

invested time, Efforts and prayers in
making it possible.

Thank You

CHAPTER # 1

INTRODUCTION

Back Ground of Study

As part of the academic requirement for completing Bachelor of
Commerce the students are required to under go 4 weeks of internship
with any reputed organization. The internship is to serve the purpose
of acquainting the students with practicing knowledge of the
discipline of Commerce. This report is about Pakistan Civil Aviation
Authority.
Purpose of the Study

Internship Report: CAA Pakistan

 The main purpose of the study in hand is to gather relevant
information to compile internship report on Pakistan Civil Aviation
Authority.

➢ To observe, analyze and interpret the relevant data competently

and in a useful manner.
➢ To know how to practically work in an organization.
➢ To develop interpersonal communication.

Scope of Study
As an internee in CAA the main focus of our internship was on
Finance Department. We included all the concerned sections in which
we learned how to make different types of reports and we were given
different responsibilities for certain durations. Wehave written about
these in Finance Sections Chapter.

Methodology of Study
The report is based on our 4 weeks internship program in CAA .The
methodology reported for collection of data is primary as well as
secondary data. The primary source of information is our personal
observation while working with staff and having discussion with
them. Formally arranged interviews and discussions also helped us in
this regards In Finance.

Primary Data:

➢ Personal observation
➢ Interviews of staff
Internship Report: CAA Pakistan
 ➢ Lectures by Finance Staff
➢ Practical work

Secondary Data:
➢ Annual Reports 2006, 2007 and 2008.
➢ Newspapers.
➢ Finance Manuals.
➢ Internet(www.caapakistan.com.pk,www.wikipedia.org.
www.google.com)

CHAPTER# 2
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
Internship Report: CAA Pakistan
 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 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 Passenger Protocol, Porter
Facility and Janitorial handle their departments.

Internship Report: CAA Pakistan

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.

Internship Report: CAA Pakistan

CHAPTER# 3

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 underwent 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 buy-in process by CAA
senior management with staff and lower levels for bridging
communication gaps between different hierarchical levels of the
Internship Report: CAA Pakistan
 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 supported 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 / passenger service standards,
benchmarked with top performing international airports
Development of a New Aviation Policy for the country in consultation
with the Ministry of Defense, Planning Commission, World Bank,
Airlines, and Aviation Experts (Expected to be considered by the
Cabinet for approval shortly).
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 feedback mechanism at the airports,
Employees performance management system bench marking,
outsourcing of non-core and wasteful activities, etc. Recently, we
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
Internship Report: CAA Pakistan
 (Quality Management System), ISO 14001:2004 (Environmental
Management System), and OHSAS 18001:2007 (Occupational Health
and Safety Management System) shall be acquired.

CHAPTER# 4

ABOUT FINANCE DEPRTMENT

Finance department is one of the biggest departments in CAA, which
is responsible for provision of efficient and effective
accounting/budget. The feasibility of extending financial,
administrative, technical facilities is control by this department. It is
also responsible for internal auditor of CAA. It has further divisions,
which are as under:

➢ Budget
➢ Revenue
➢ Disbursement
➢ Accounting

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.
Internship Report: CAA Pakistan
 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.

CHAPTER#5

WEEKLY OVERVIEW ABOUT DEPARTMENTS

Revenue Department
Revenue department deals with two main basic functions:

➢ Aeronautical revenue
➢ Non-aeronautical revenue

AERONAUTICAL REVENUE
Following are the functions of aeronautical revenue
1. Landing and housing fee
Internship Report: CAA Pakistan
 2. Aircraft power supply
3. Route navigation fee
4. CIP lounge income

NON-AERONAUTICAL REVENUE
Rent electricity & water charges

ADMINISTATION EXPENSES
Following are the administration expenses

✔ Salaries allowance and benefits

✔ Traveling and conveyance
✔ Training
✔ Telephone
✔ Electricity
✔ Rent rates
✔ Audit fee
✔ Horticulture
✔ CIP lounge
✔ And others

REPAIR AND MAINTENANCE

✔ Building
✔ Plant and equipment
✔ Vehicle
✔ Airplanes calibration
✔ Furniture and fixture
✔ Other fixed assets

Internship Report: CAA Pakistan

FINANCIAL CHARGES

• Interest and related charges on long term loans

• Exchange loss
• Bank charges

The function of revenue in CAA is to take the collection and invest it to the
banks that have A+ rating and higher bid. The investment should be made
according to the paid up capital the bank i.e. the PC must be 50% more than
the investment.

We observe that revenue department maintains the following files:

✔ Investments with banks

✔ Security refund
✔ Transfer of funds
✔ Inter bank transfer
✔ Bank guarantee

Budget Department

The budget is not only the most important plan of an enterprise, but also the
basic link of accounting with management. The use of budgets, particularly
Internship Report: CAA Pakistan
in connection with the control phase of management has been termed as
“budgetary control”. A company’s organization chart and its chart of
accounts from the basic framework on which to build a coordinated and
efficient system of managerial planning and budgetary control. The
organization chart defines the functional responsibilities for the budgets
rests with executive management; all managers are, responsible for the
preparation and execution of their departmental budgets. If a budgetary
control system is to be successful, these managers must fully cooperate and
must understand their role in making the budget system successful.

We learn while spending one week in budgeting department that they

prepare budget for over all locations, send inputs forms to the locations than
the locations fill those forms asking for how much money they want and
why they want. Than the budget department fulfill the requirement of the
location after checking all the conditions.

Accounts Department

Accounts branch is an integral part of finance directorate and plays vital role
in its working. Accounts branch is mainly responsible for processing
financial information which includes collecting financial information from
all online locations enter, verify and post data from returns on daily basis
where as accounts branch performs verification, posting and validation of
data from monthly returns received from offline locations.

The data from all sources in then compiled for the preparation of financial
statements on quarterly, half yearly and on annual basis, which is prepared
in accordance with approved accounting standards as applicable in Pakistan.
Approved accounting standards comprise of such international financial
reporting standards (IFRS) issued by the international accounting standards
board as are notified under the companies ordinance, 1984 and also the
provisions of Pakistan civil aviation authority ordinance 1982.

Internship Report: CAA Pakistan

Accounts branch is sub divided into following sections which included:

✔ Revenue accounting
✔ Disbursement Accounting
✔ Fix Assets
✔ Development

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 administration branch. The administration 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:

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
Internship Report: CAA Pakistan
 6) Salary/GP Fund & Pension payment.

OUR VIEWS

In our four weeks internship program we 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 our time at the CAA, we were involved in
a lot of different tasks of office work.

Our internship at the CAA was an outstanding experience. We got a deep

and inspiring insight in the work of CAA Pakistan, but as well as the
other friendly and cooperative staff members took a lot of effort to make
it a helpful visit for us in every way.

➢ Sir Saif Ullah (CM Revenue)

SPECIAL
➢ Sir AtherTHANK
(Accountant Revenue)
➢ Sir Ilyaas (Senior Accountant Revenue)
➢ Ma’am Rashida Syed (CM Finance)
➢ Sir Naseer (Budget)
➢ Sir Imtiyas (Budget)
➢ Sir Akhlaq Ahmed (DM Accounts)
➢ Arshad Ali (DM Revenue)
➢ Sir Junaid Siddique (Accountant)
➢ Sir Afzal Khokher (Accountant)
➢ Sir Shuja-ur-Rehman (DM Disbursement)
➢ Sir Akhlaq Ahmed khan (AM Disbursement)
Internship Report: CAA Pakistan
BIBLOIOGRAPHY

1. www.ccapakistan.com.pk
2. http://en.wikipedia.org/
3. Annual report of CAAPAKISTAN 2008.
4. An internship Report by MR Memon
5. www.google.com
6. www.scribd.com

Internship Report: CAA Pakistan