CAA Internship Report 2019

Internship Report

On

By

HAFIZA TOOBA ZEDI

1 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Acknowledgement
Winter’s internship is a golden opportunity for learning and self-development. I consider myself
very lucky and honored to have so many wonderful people who led us in completion of this
internship.

I wish to express my indebted gratitude and special thanks to the management of Civil Aviation
Authority & all of the people who in spite of being extraordinarily busy with her/his duties, took
time out to hear, guide and kept me on the correct path. This was special for me under such an
esteemed organization and extending during the training. I do not know where I would be
without them.

A humble ‘Thanks’ to
 Mr. Amjad Siddiqui (Sr. Deputy Director, Treasury & Investment)
 Mr. Athar Shamim (Sr. Supdt, Treasury & Investment)

I express my deepest thanks to above mentioned officials and their respective teams giving
necessary advices and guidance and arranged all facilities to make my tenure easier. I choose this
moment to acknowledge their contribution gratefully.

HAFIZA TOOBA ZEDI

Student of BS Hon’s (MATHEMETICS) at University Of Karachi .

2 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Contents
Acknowledgement .................................................................................................................................... 2
Introduction ........................................................................................................................................... 4-5
Vision......................................................................................................................................................... 6
Mission ...................................................................................................................................................... 6
Core values................................................................................................................................................ 6
Organizational Chart ................................................................................................................................. 7
Hierarchy of Accounts/ Finance Department: .......................................................................................... 8
Some Branches of Finance at CAA ....................................................................................................... 9-11
Treasury & Investment: ..................................................................................................................... 12-13
Conclusion: .............................................................................................................................................. 14

3 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Introduction
Pakistan Civil Aviation Authority is a Public sector autonomous body working under the Federal
Government of Pakistan through the Ministry of Aviation. 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 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.

4 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019
 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, benchmarking, 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 (Quality Management System), ISO 14001:2004
(Environmental Management System), and OHSAS 18001:2007 (Occupational Health and
Safety Management System) shall be acquired.

CAA’s operations divided into two zones according to the movement of flights and region as
well, around 49 airports CAA have all over the Pakistan, but the zones are divided by the airports
of major cities, first is South Zone and the second one is North Zone, South Zone includes:

 Jinnah International Airport (JIAP) Karachi

 Quetta International Airport
 Gwadar International Airport
 Turbat International Airport

Whereas North Zone includes:

 Allama Iqbal International Airport (AIIAP)Lahore

 Benazir Bhutto International Airport, Islamabad
 Bacha Khan International Airport Peshawar.
 Multan International Airport
 Faisalabad International Airport

5 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Vision
"Be a world-class service provider in the aviation industry”.

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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University of Karachi
 CAA Internship Report 2019

Organizational Chart

Hierarchy of Accounts/ Finance Department:

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University of Karachi
 CAA Internship Report 2019

• DIRECTOR FINANCE

• SR.ADDITIONAL DIRECTOR

• ADDITIONAL DIRECTOR

• SR. JOINT DIRECTOR

• JOINT DIRECTOR

• SR. DEPUTY DIRECTOR

• DEPUTY DIRECTOR

• SR. ASSISTANT DIRECTOR

• ASSISTANT DIRECTOR

• SR. SUPERINTENDANT

• SUPERINTENDANT

8 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Some Branches of Finance at CAA

As my area of interest is finance, luckily I got the opportunity to work for six weeks as an
internee in finance department of Civil Aviation Authority; they have divided finance into
different branches like:

 Treasury & Investment

 Disbursement
 GP Fund/ Pension
 Project Finance (Procurement)
 Payroll
 Budget
 Billing

Treasury & Investment look after all the capital and movement of investment throughout the
organization, there essential roles are;

Cash management clearly forms part of the treasury’s core functions. In addition to
dealing with payment transactions; cash management also includes planning, account
organization, cash flow monitoring, managing bank accounts, electronic banking, pooling
and netting as well as the function of in-house bank.

The core duties of the treasury also comprise the procurement of finance and financial
investments, the function of the procurement of finance is cited much more frequently
than that of financial investments, the inclusion of systematic financial investments, in
the sense of active asset management, were found to be the exception.

One more function of treasury & investment department is to find and invest the capital
in medium and long term financing, particularly capital market instruments, ABS, group
financing, credit, leasing, promotion instruments, and shareholders’ loans and, in this
instance, the handling, monitoring, terms, conditions, hedging, periods and contractual
dates.

9 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019
Disbursement branch look after all the capital expenditures for goods and services that may be
currently tax deductible;

Cash outflows or the payments of money to settle down the business obligations such as
operation expenses and interest payments against loans and account receivables during a
particular period of time in order to carry out business activities, usually done in the form
of cash, plastic money, cheque, warrants and electronic or online funds transfer.

GP Fund branch manage all the transactions related to funds of employees, and also look after
the final settlement of the workers;

They deal with different types of payments which include refundable payments
(employee has to pay back in installments), nonrefundable payments (employee don’t
have to pay it back but it decreases the worth of final settlement) and final payment
(employee get when his/her period of service comes to an end).

Project Finance (Procurement) branch looks after all the hiring of goods from small budget to
large budget and mega projects;

The financing of short-term or small investment, procurement of daily routine goods and
financing of long-term infrastructure, industrial projects and public services based upon a
non-recourse or limited recourse financial structure where project debt and equity used to
finance the project are paid back from the cash flow generated by the project.

Payroll branch look after salaries and other payables of employees such as over time payment,
sick payment and etc.

Payroll manages all the payables (salaries, over time dues, project related dues, sick
payments etc.) to employees which can be defined as sum total of all compensation that a
business must pay to its employees for a set period of time or on a given date. Payroll can
also refer to the list of employees of a business and the amount of compensation that is
due to each of them.

10 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019
Budget branch manages and look after the allotment of funds to each unit or department or small
level or large level activities;

Analyzes funding requests and advises administrators of financial impact and presents
viable alternatives, analyzes an array of data ranging from minor budget increases to
facilitation of prison construction, provides an agency perspective in the management of
the individual department budgets providing oversight and coordination of agency budget
managers.

Billing branch maintain the billing on behalf of organization as well as on the behalf of the
supplier or vendor;

A billing department is the intermediary of the operations and accounting departments of

a company. Often seen as a subset of accounting, a billing department's duties include the
translation of a company's services or goods received from vendors to the services or
goods performed for clients.

Above described are some of the branches of finance at CAA, as my internship period is about 6
weeks that’s why we got the chance to work and learn in Treasury & Investment branch.

11 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Treasury & Investment:

I worked in T & I about Four weeks, my period starts from 8th JULY, 19 and ends at 2ND August,
19.

In T&I I worked under the supervision of Mr. Amjad Siddiqui and Mr. Athar Shamim (Sr.
Supdt.), I learned a lot about their daily routine activities and especially I learned the procedure
of how to reconcile the different accounts.

Reconciliation is the key process used to determine whether the money leaving an account
matches the amount spent, ensuring the two values are balanced at the end of the recording
period. Reconciliation is the activity in which first we cross check the two documents, first is
bank Statement (A record, usually sent to the account holder once per month, summarizing all
transactions in an account during the time from the previous statement to the current statement.
The opening balance from the prior month combined with the net of all transactions during the
period should result in the closing balance for the current statement.) And the second is
Cash/Bank book (A financial journal that contains all Bank receipts and payments, including
bank deposits and withdrawals. Entries in the cash/Bank book are then posted into the general
ledger. The Cash/Bank book is periodically reconciled with the bank statements as an internal
method of auditing.), Cash/Bank book is the document maintain by the CAA itself, while at the
other hand bank book is the bank statement given by the bank, by cross checking we got some
figures and discover some mistakes which we reconcile firstly at the Microsoft Excel and then
finalize on ERP.

In addition to reconciliation I learned about ERP and worked on it, I made entries of RV’s
(Receipt Vouchers) and PV’s (Payment Vouchers), it’s an easy process, just log on to the ERP
application go to the respective account and then submit the account information, amount, name
of the person or the company/business and add additional information if required, after
submission we got the “Document Number” on the next tab which we have to write down on the
RV or PV.

Another thing we learned there was their daily product and saving product Accounts. Our
supervisor guided us that they have accounts in many banks and they receive money from all the

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University of Karachi
 CAA Internship Report 2019
banks as their clients deposit it and the banks give CAA interest on it on daily basis and at the
end of the day all the banks transfer the money to one single account which is the main
Collection account of CAA i.e.; the saving one. The interest calculation was also a part of our
task. We calculated the profit on daily basis of different banks and then matched it with the bank
statement.

Third thing we have come to know was that the bank keeps 10% of the profit as withholding tax
which CAA claims and gets it back from the bank. This 10% sent it to the Govt. which CAA
pays every year by them. This task was based on single bank account. Apart from that we also
calculated the compound interest of different banks in which the Investment is made/ transferred
to banks. In this we calculated the interest not on daily bases but on the time period at which the
bank has the money on CAA accounts.

13 HAFIZA TOOBA ZEDI

University of Karachi
 CAA Internship Report 2019

Conclusion:
In my FOUR weeks internship program, I observe that the flow of work is very professional and
up to date. The atmosphere is very friendly and there is no difference between officers and staff.
Everybody is co-operative and helpful. During my time at the CAA, I was involved in a lot of
different tasks of office work. It was an outstanding experience, a deep and inspiring insight in
the work of CAA. A small time gave me a lot of things to learn which definitely enhance and
polish my skills and useful in my future professional lives.

It may be difficult for the internees to mingle in a new environment but for me it was very easy
as the people of CAA whether from lower rank to upper rank were very friendly, fun loving and
co-operative. The thing which we want to address to the management of CAA is that they have
to give sum amount to the interns whether they are doing internship for one month or else so that
they can easily afford their convince expenses because it is difficult for those interns who lives
far from airport.

14 HAFIZA TOOBA ZEDI

University of Karachi