Presentation Finance Deptt

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FINANCE DEPARTMENT


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DIVISIONS & SECTIONS

DIVISION / SECTION HEAD COUNT

CFO secretariat 7AccountingDisbursementPayroll / TaxesGeneral Accounting

85

Financial Control

Head Office PaymentsFinance CellsEngineering FinanceP & L FinancePrecision Engineering FinanceFlight Services FinanceFlight Operations Finance

115

Fuel Control 26

Budget & Financial Monitoring 25

Revenue Accounting 533

Funds Management 31

Total 822


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Establish effective budgeting policies & procedures and annual preparation of operating and capital budgets.

Establish policies and procedures to produce clear, accurate and timely monthly financial reports for thepersonnel of top management, as a means of measuring results against profit targets and appraising individualperformance.

Establish effective capital budgeting and project evaluation techniques, to be used in annual budgeting andcontinuous project analyses.

Preparing and supplying accounting data, yield data, load factor data, budget assumptions, etc. as required.

Determine long range capital requirements and negotiate loans and finances with banks.

Accurate maintenance ofPIAs books of account, ensuring that professional standards are being met, adequatefinancial controls are in place, reports are accurate and meaningful and procedures are efficient.

To ensure that PIA is optimizing its corporate tax liabilities while adhering to tax statutes in all countries wherereturns must be filed.

To ensure that PIAs insurance coverage is adequate for potential liability risk or loss of property.

FUNCTIONAL OBJECTIVES


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Keep record and control over all Payments, Disbursements at all Domestic / Foreign stations other than:

Payroll

Fixed Assets

Inventories

Expenses accounted for by Departmental Finance Managers

Submit monthly foreign exchange earnings and expenditure statements to the State Bank of Pakistan.

Verify that all monthly station reports in the assigned region, are received on time.

Prepare the station reports for data processing and ensure that errors or anomalies are communicated back tostations.

Monitor timely receipt of D-15 and other reports i-e. Budget Register, Staff Payments Register, Disbursement

Accounting Summary, Bank / Imprest Reconciliation Reports from all Domestic / Foreign stations.

Ensure that Disbursement Observations Notes (DONS) are prepared on monthly basis in respect of stations.

Consolidation of Sales Tax input data from all Finance Cells and Domestic stations for submission to LTU.

Reconciliation of Withholding Tax.

SCOPE OF WORK DONE-

ACCOUNTING

(DISBURSEMENT)


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Preparation of monthly payroll.

Submit payroll data input directly to Data Processing.

Liaise closely with the Administration Department to ensure that changes to collective bargaining agreements or

interpretations thereof that impact salaries and allowances are incorporated in the payroll system.

Supervises and controls foreign salaries, taxes and allied expenses. Ensures that local staff of Foreign Stations

is paid their salary and other emoluments in accordance with their terms and conditions. Elaborates

Management's policy on pay and allowances at foreign stations.

Ensure that corporate regulations are being observed in respect of employee loans, loan repayments, expense

reimbursement, allowances, etc. and accurate accounts and records are being kept in this respect.

To arrange deduction of income tax from the employees of the Corporation.

Provide statistics for and communicate with tax consultants & FBR on any matter pertaining to withholding of

taxes.

Ensure the accurate and timely final settlement of accounts for employee retirements and terminations.

To coordinate with Audit/Legal and HR for the resolution of discrepancies in the final settlement of the retiringemployees.

SCOPE OF WORK DONE-

ACCOUNTING (PAYROLL /

TAXES)


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Propose and, once approved, implement improvements to financial policies and procedures to conform with

generally accepted accounting practices, to tighten financial controls or to speed up the preparation of financial

reports.

Maintain, the consolidated financial records of the company

Coordinate with all divisions of Finance to ensure timely and accurate data flow into the headquarters general

ledger.

Approve financial reports prepared for submission to third parties such as banks, IATA, government agencies,

etc.

Establish effective procedures to account for PIAs fixed assets and inventories.

Maintenance of chart of Accounts.

To provide fixed assets inventory list to all stations and concerned areas on net work basis for physical

verification and updating on periodic basis.

Liaise with government and statutory auditors to provide them with accounting records, discuss their findings and

implement any worthwhile recommendations.

Provide the Budget Section with monthly financial results to allow them to make comparisons to budgets and to

analyze variances.

SCOPE OF WORK DONE-

ACCOUNTING (GENERAL

ACCOUNTING)


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SCOPE OF WORK DONE-

FINANCIAL CONTROL (HEAD

OFFICE PAYMENTS) Arrange payment to Contractors, Government Organizations and other outside parties in respect of

disbursements relating to respective Divisions/Sections and Departments.

Exercise budgetary control over payments.

Exercise functional control over the Divisional Accounts Officers and provide guidance in the financial matters as

and when required.

Apprise Management about the Credit realization/Accumulation trends and suggest measures to curb any

increase and highlight weak areas.

Compile the annual budget estimates of Department after obtaining necessary Capital and Revenue expenditure

requirements duly discussed with the Sections concerned and finalize the same with G.M. (Budget).

Maintain proper files, record and correspondence etc of the section.


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SCOPE OF WORK DONE-

FINANCIAL CONTROL(FINANCE

CELLS) Provide support service to concerned user department for discharge of financial obligations, payments &

recording of transactions.

Preparing and disbursing the salaries of employees of user department.

Assist the user department in preparation of budgets.

Exercise the budgetary control on payments being made.

Maintaining accounting records and reconciling information system data with that maintained in general ledger.

Preparing MIS reports for top managements perusal.


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SCOPE OF WORK DONE- FUEL

CONTROL

Provisioning, procurement and supply of Aviation fuel.

Develop strategies and tactics for procurement of Aviation fuel for scheduled and non scheduled flights on

economical price.

Develop Fuel Hedging options and prepare recommendations for Fuel Hedging Committee.

Administer Aviation fuel contracts suggest modification and initiate action for review of existing contracts.

Negotiate contracts with oil companies for supply of Jet fuel and make recommendations for the consideration of

Management.

Ensure maintenance of accurate and adequate statistical data relating to cost of production, availability of

supplies, third parties charges, oil companies market shares.

Market research with respect to demand, supply and price of Jet fuel prevailing in the oil market. Responsible for arranging offline refueling for VVIP and charter flights.

Ensures that the standards, quality and quantity of fuel received by PIA is maintained to the prescribed level.

Makes efforts to remove all short-falls, pin-points areas of wastage in refueling/defueling in coordination with

Engineering and initiates remedial measures expeditiously.

Monitor Economic Tankering Policies for minimum expenditure in coordination with Flight Dispatch by providing

fuel prices.

Certification of Aeronautical bills in accordance with the PIA operations.

Certification of Landing / Overflying / Navigational / Parking / Aerobridge invoices as per approved NOTAMS.


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Prepare, as the final product of the annual budget cycle, a PIA consolidated earnings statement, a balance sheet,

a cash flow statement and foreign exchange cash flow statement before the beginning of the fiscal year being

budgeted broken down by month, by cost centre and route/sector Assist all levels of management in establishing their own budgets.

Verify / reconcile all monthly Budget vs Actual data with master Budget / General Ledger.

Assist in establishing a workable set of definitions of direct cost, fixed cost, cost centers and Head Office

allocations that will form the basis for monthly reporting of actual results.

Produces quarterly/six monthly/annually historical operating cost reports by type of Aircraft, Route, flying hours

etc. Based on actual performances and duly reconciled with Financial Books and Route-wise P & L statements

for management information.

Establish capital project evaluation techniques such as present value, discounted cash flow, Accounting returns

on investment, payback, etc, and assist management in the proper application of these techniques.

SCOPE OF WORK DONE-

BUDGET & FINANCIAL

MONTIORING


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Propose and, once approved, supervise the application of policies and procedures to process PIAs revenue

documents, to calculate consolidated revenues and establish outstanding balances of unused tickets.

Manage the continual processing of all system-wide revenue documents.

Liaise closely with the Marketing Department in establishing policies which impact the sales effort.

Receive, validate for completeness and accuracy and submit to Data Processing airway bills (AWB) issued by

PIA throughout the system.

Maintain historical records and statistics of cargo transactions.

Liaise closely with the Cargo Marketing section to provide them with all necessary accounting of statistical

support.

Supervise the printing, distribution and security of revenue documents used throughout the PIA network.

Receive from stations and prepare for data processing, flight coupons uplifted on PIA flights. (Average of 0.5

million coupons, paper and e-ticket are processed monthly)

Calculate monthly revenues and unused ticket balances for management reporting and as input to general

accounting.

Looking after the Refund Unit, to ensure that refund policies are observed throughout PIA network.

SCOPE OF WORK DONE-

REVENUE ACCOUNTING


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Deal with banks as to establish banking arrangements and operation of bank accounts on behalf of PIA at

network.

Prepare short and medium term cash flow analysis, incorporating forecasts from all operating units.

Placement of cash surplus in accordance with established policies as to pricing, currencies and maturities.

Assist in arranging short/long term financing as per PIA requirements.

Arranging bank guarantees, LCs, and other such instruments.

Ensure timely receipt of stations bank reconciliations and follow up discrepancies with respective station.

Ensure that all banking transactions are accounted for and reconciled with general ledger on monthly basis. Alldiscrepancies / errors are timely corrected / adjusted.

Preparing a host of MIS reports i.e., Daily Report of Availability/Non-availability Credit lines/loans, , Project

expenditure reports on Aircraft Financing as part of PIAs fleet replacement plan, preparing and updating the debt

servicing schedules for aircraft and working capital loans etc.

SCOPE OF WORK DONE- FUNDS

MANAGEMENT

Documents

Presentation Finance Deptt