Opf Internship Final
Transcript of Opf Internship Final
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CHAPTER # 1
1. Introduction to the Organization
1.1 Introduction
Overseas Pakistanis Foundation is an organization for welfare of Pakistanis working abroad
and their dependents in Pakistan with its Head Office in Islamabad and Regional Offices at
Karachi, Lahore, Peshawar, Quetta and Mirpur (AJK) and sub office at Multan.
This organization was,
Established under Emigration Ordinance, 1979.
Registered under Companies Ordinance on 8th July, 1979 as Company Limited by
Guarantee of Government of Pakistan.
OPF is controlled by a BOG (Board of Governors) headed by the Federal Minister
for Labour, Manpower & Overseas Pakistanis as its Chairman.
1.2 Vision
Overseas Pakistanis Division aims at providing better services to overseas Pakistanis through
improved facilities at airports, setting up suitable schemes in Housing, Education and
Healthcare sectors; facilitating the rehabilitation of returning overseas Pakistanis, besides
ensuring that Community Welfare Attaches (CWAs) maintain close links with them to help
resolve their problems and locate new job opportunities for intending overseas Pakistanis.
1.3 Functions
Undertaking Welfare Schemes & Personalized Services for OPs.
Establishment of Educational Institutions.
Provision of Health Facilities.
Development of Housing Colonies.
Assistance to overseas Pakistanis and their dependants at time of distress.
Facilitation of incoming and outgoing Overseas Pakistanis at International Air ports
of Pakistan.
Encouragement of Foreign Exchange Remittances through legal channels.
Settlement of dues and outstanding claims of OPs with their employers abroad.
Economic rehabilitation of overseas Pakistanis.
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2. Overview of the Organization
2.1 Main Objectives
To advance the social welfare of the Pakistanis working or settled abroad and their families in
Pakistan by identifying their problems and by contributing to their solutions.
To Establish & Manage:
Housing Schemes.
Educational institutions.
Foundation offices & branches.
To Receive & Manage:
Welfare Fund created under the Emigration Ordinance 1979.
The custodian-ship of security deposits of the overseas employment promoters.
To perform miscellaneous functions such as:
Grant of scholarship to the deserving Overseas Pakistanis children and grants to
community centers, mosques, libraries etc.
Make policies, rules and regulations necessary for the management of the Foundation.
Make policies, rules and regulations necessary for the management of the Foundation.
2.2 Sources of Finance
The major sources of finance of the Foundation are:
Welfare Fund created under Emigration Ordinance, 1979 and rules made there under.
Profit on Welfare Fund.
Any other source.
2.3 Board of Governors
The number of Governors shall not be less than seven but not exceeding nineteen.
All the Governors are appointed by the Federal Minister.
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They are not entitled to any remuneration except that the actual expenses incurred
by them during the course of performing their duties.
The board appoints a paid Secretary of the foundation who shall also be the
Secretary of the board.
2.4 No Of Employees
Total numbers of employees including contractual employees at the end of the year 2010 were
1,207 (According to the Admin records and audited Annual Report of OPF Year 2010).
2.5 Organizational Structure of OPF
Reference: Admin record & www.opf.org.pk
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Managing Director
J.D.R.O.
Peshawar
G.M.R.O.
Mirpur(AK)
J.D.RO
Lahore
G.M.R.O.
Quetta
G.M.(South)Karachi
GMInternal
Audit Div
GMWelfare
&Services
SecretaryOPF
&DirectorAdministration
GM
Housing&
Works
DirectorOPPT/MIS
DirectorEducation
DirectorHR
DirectorFinance
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CHAPTER # 2
Departments of Overseas Pakistanis Foundation (OPF)
Housing and Works Division
Education Division
Overseas Pakistanis Pension Trust (OPPT)
Marketing Division
Welfare & Services Division
Administration & HRM Division
Internal Audit Division
Finance Division
1.1 Housing & Works Division
To cater for the Housing need of Overseas Pakistanis and to provide them residential facilities,
OPF has planned and established a number of housing schemes in different cities of the
country.
The plots created in these schemes are sold to Overseas Pakistanis in OPFs housing schemes
located at the prime locations in the cities of Islamabad, Lahore, Gujrat, Peshawar, Larkana,
Dadu and Mirpur (AK)
1.1.1 OPF Housing Schemes
Valley Zone-V Islamabad
Raiwind Road (Phase-I) Lahore
Raiwind Road (Phase-II) Lahore
Raiwind Road (Extension) Lahore
Peshawar
Dadu
Gujrat
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Larkana
Mirpur (AK)
Rawat
i. Valley Zone-V Islamabad
OPF Valley Zone-V Islamabad is located on Japan road alongside the Sawan River, about 24
kilometers from Zero point. M/S NESPAK has been pointed the project consultant for
designing and planning of the scheme.
ii. Raiwind Road (Phase-I) Lahore
OPF Housing Scheme Raiwind Road (Ph-1) Lahore is located about 5 kilometers from Thokar
Niaz Baig. The scheme is completely developed.
iii. Raiwind Road (Phase-II) Lahore
OPF Housing Scheme Raiwind Road (Ph-II) Lahore is planed to be developed over an area of
App 627 Kanals 03 marlas.Out of which land measuring 559 Kanals and 4 marlas has already
been purchased whereas land measuring 67 Kanals and 19 marlas including existing pockets
and additional land adjoining to the boundary of the scheme area are required to be acquired
through Land Acquisition Act 1894.Efforts are underway to acquire/purchase for existing
pockets in the scheme area. Process for appointment of consultants for planning and designing
of the scheme is under process for approval.
iv. Raiwind Road (Extension) Lahore
OPF Housing Scheme Raiwind Road (extension) Lahore is located about 5 kilometers from
Thokar Niaz Baig adjacent to the phase-I.
v. Peshawar
OPF Housing Scheme Peshawar is located short of the main city, about 2.5 Kilometer from the
main GT road, near the Ring road. The scheme is planned over an area of 991 Kanals. The
infrastructure i.e. road, water supply and sewerage network is completed, whereas the external
electrification work of scheme is in process through PESCO. All residential plots have already
been allotted. Commercial plots in the scheme will be sold through open auction after of the
scheme. Possession of plots is also being handed over to those allotees who have cleared the
dues and interested for construction of houses on their plots.vi. Dadu
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OPF Housing Scheme Dadu is located on Dadu-Moro-Road. Total area of the scheme is 168
Kanals.
vii. Gujrat
OPF Housing Scheme Gujrat is located on Bhimber Road. It is spread over an area of 296
Kanals.The scheme is completely developed. Respective alloties have been asked to complete
construction of houses on their plot up to 30th September, 2012.
viii. Larkana
OPF Housing Scheme Larkana is located on Noudero Road. It is spread over an area of 228Kanals of land. The scheme is completely developed and all the 430 residential and 24
Commercial plots in the scheme have already been allotted.
ix. Mirpur (AK)
OPF Housing Scheme Chatterpari Mirpur (AK) is located short of Mirpur city towards Dina.
The scheme is completely developed. Total 2,894 Residential and 187 Commercial plots in the
scheme were created.2, 547 Residential and Commercial plots have already been allotted to the
respective alloties and sale of remaining plots is suspended.
x. Rawat
OPF Housing Scheme Rawat, Rawalpindi is planed over an area of about 754 Kanals.Out of
which land measuring 624 Kanals has already been purchased from the land owners will
remaining 130 Kanals of existing pockets in the scheme area are to be acquired through land
Acquisition Act,1894.
xi. Allocation of Two Sectors D-13 & E-13 for Overseas Pakistanis
It has been decided by the OPF BOG (Board of Governors) to reactivate the housing sector of
D & E-13.The Prime Minister of Pakistan has also very kindly consented with the proposals
summary for formal approval by the Federal Cabinet has already been sent.Necassery steps are
under way to finalize the modality of joint venture between OPF and CDA. After signing of
Memorandum of Understanding (MOU) and formal approval by the Federal cabinet,
acquisition process of land initiated by the OPF /CDA.
1.2 Education Division
Education Division was established in 1989 with the objective to look after the needs of the
children of Overseas Pakistanis in Education sector. In order to provide the quality education to
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the children of Overseas Pakistanis, OPF has established educational institutions all over the
country.
Twenty One OPF Public Schools and three Colleges at Rawalpindi and Islamabad have been
established so far. These institutions follow English as medium of education, lying due
emphasis on local languages and are affiliated with the Federal and respective Provincial
Boards of education and University of London and Cambridge for O/A levels purposes.
Due attention is given to the extra curriculum activities of the students. The total strength of
students is App 14, 058, with the number of OPs children is around 1,508.
1.2.1 CollegesOPF has established Three Colleges.
OPF Girls College F-8/2 Islamabad with hostel facilities.
OPF Boys College, H-8 Islamabad.
OPF Girls College, Rawalpindi
1.2.2 Public Schools
21 Public Schools established at:
Punjab (8) - Sialkot,Multan,Sheikhupura,Bhalwal,Dipalpur,
Gujrat, Kalar Sayedan, PakPattan.
Sindh (4) - Dadu, Larkana, Sanghar, Badin.
N.W.F.P (3) D.I.Khan, Mansehra, Hangu.
Balochistan (3) - Quetta, Turbat, Pashtoonabad
AJ & K (3) - Mirpur, Muzaffarabad, Kotli
1.2.3 Projects in Hand -CWIP
School Building Sheikhupura
School Building Hangu
Girls College Building Rawalpindi
Girls College & Hostel Building at Quetta.
Commercial Building At Lahore
1.3 Overseas Pakistanis Pension Trust (OPPT)
OPF has established a Self Contributory Pension Scheme for Overseas Pakistanis.
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i. Membership of the scheme is voluntary and is open to all overseas Pakistanis.
ii. Contributions by members are at fixed rates, for a predefined period.
iii. Contributions received are invested in profitable investments and earnings net of all
costs are credited to individual pension accounts of the members.
iv. Monthly Cash Stream Pension calculated on the basis of the annual earnings in each
account becomes due on maturity.
v. Option is available for total withdrawal from pension scheme at any stage.
vi. All members of the scheme are covered through an insurance package arranged through
State Life Insurance to ensure immediate pension payment to family without anyfurther pension contributions, in case of death or disability of a member before
maturity.
1.3.1 PENSION PLANS (See Appendix 1).
Current Position/Achievement
Total amount received in US $ 2.50 Million Equivalent to Pak rupees 149.562 Million.
Total Members = 301
1.4 Marketing Division1.4.1 Magazine Yaran-e-Watan
OPF publishes a monthly magazine Yaran-e-Watan to update the Overseas Pakistanis about the
schemes of their interest and other related information.
1.5 Welfare and Services Division
The main services provided by this department are as follows,
1.5.1 Services Provided to Overseas Pakistanis at OPF
Transportation of Dead Bodies
Hotel facilities for Incoming Overseas Pakistanis
Ambulance Service (free of cost)
Complaint Cell
Final Dues
Study Tours to Pakistan for Overseas Pakistanis students
Foreign Exchange Remittance Card
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Compensation /Assistance to the Gulf war affectees
Free Fax Service
i. Transportation of Dead Bodies
In the event of death of any Pakistani worker abroad, dead body of the deceased is transported
back to Pakistan through PIA on charge collect basis. Meaning to say, PIA transports the dead
body on the production of certificate by the Pakistan Mission and payment is made to PIA by
OPF in Pak rupees after transportation of dead body. This facility provided by OPF free of cost.
ii. Hotel facilities for Incoming Overseas Pakistanis
OPF is its endeavor to enhance services to its members has arranged for hotel package for
Overseas Pakistanis offering specially discounted rates for the best accommodation.37
hotels/motel shall offer this facility on discounted rates to Overseas Pakistanis on the
presentation of OPF membership card.
iii. Ambulance Service (free of cost)
OPF also extends all possible help and provides the facility of an ambulance free of cost from
air port to deceased /disabled Ops native town/village. So far, this facility has been provided in
1020 cases.iv. Complaint Cell
OPF has received about 25,805 complaint of various Overseas Pakistanis for varies individual
cases regarding telephone,Sui gas,water,electricity, bank problems, crime and property
disputes. Out of these, about 18,880 cases had been settled.
v. Final Dues
A total of 12,306 cases of blood money, death compensation, disability/family pension,
insurance claims and all types of dues of Overseas Pakistanis are under process and are being
pursued through Pakistani Mission abroad. Welfare & Services division is approaching the
entire concerned mission abroad to expedite the action required for early settlement of these
cases. On account of OPFs persistent efforts, it has succeeded in getting 5,601
vi. Study Tours
OPF has been organizing study tours for the younger generation of Overseas Pakistanis settled
in various countries, particularly in Western Europe and North America. The purpose of such
tours is to educate them about socio-economic developments in Pakistan and to improve their
awareness of their culture heritage.
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In the past the Foundation has organized 13 such tours involving 151 male and 93 female
students. The result have been very encouraging, as the participants have described these tours
to Pakistan as a unique and lifetime experience, acquainting them with Pakistani culture,
heritage and current level of development .Within a span of twenty days they are able to know
more about Pakistan then their accumulated stay abroad.
vii. Foreign Exchange Remittance Card
Special Allowance for Foreign Exchange Remittance Card Holders:
OPF has launched a new scheme called the Foreign Exchange Remittance Card (FERC)
Scheme on behalf of Ministry of Finance to encourage remittances by Overseas Pakistanisthrough normal banking channels. Under which non-resident Pakistanis remitting foreign
currency equivalent to at least US $ 2,500/- per annum and US $ 10,000/- or more per annum
to Pakistan shall be issued Silver and Gold cards respectively, which would make them entitled
to the following facilities:
i) Separate Counters for special handling at Arrival and Departure lounges at airports
(These Counters are become operational from 1st September 2001 at all the
International airports of Pakistan.)
ii) Free issuance and renewal of passport on an urgent basis.
iii) Duty free allowance of personal baggage of a value of US $ 1000/-(in the case of
those who remit US $ 2,500/-) and US $2,000/-(for those who remit US $ 10,000/-
or more) during calendar year.
iv) A cardholder shall be entitled to import the following items duty free provided that
these are within the limits of permissible allowance to the Silver or Gold card
categories of worth 1,000/ US $ 2,000/ US $ respectively:
Household items of any type operated only by solar energy.
One deep Freezer or Refrigerator operated by Gas.
Gas appliances including cooking range (not more than one of any item).
One Video cassette player or VCR(video cassette recorder) or One VCD or DVD and
Items of professional use.
The duty credit under this scheme shall not be utilizable on import of vehicles.
NOTE: The Incentives are available for one year from the date of issuance of remittance cards.
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viii. Compensation /Assistance to the Gulf War Affectees
OPF played a major role during Gulf war crises. A large number of Overseas Pakistanis arrived
in Pakistan from Kuwait without any belongings. At the time of their arrival in Pakistan, camps
were established by the OPF at Karachi,Lahore,Quetta and Taftan border to facilitate the war
affectees.These affected Overseas Pakistanis were paid a cash compensation of Rs 6,000/-
each.OPF contributed a huge amount of more than Rs 50 million for affectees at the time of
their arrival in Pakistan. After the Gulf war the task of compensation claims of the war
affectees was assigned to the OPF by the United Nations Compensation Commission (UNCC)ix. Free Fax Service
In case of an emergency the dependents of Overseas Pakistanis in Pakistan are provided free
fax facility by OPF Fax machines have also been installed at OPF head office as well as
Regional offices. OPF has introduced e-mail facilities for its members using the address
1.6 Administration and HRM Division
Strategically, perhaps the most important division at the head office is responsible for humanresource management, including recruitment staff training and evaluation. The division also
handles matters relating to administration. This division operates on future oriented strategy
focusing on employees personal and professional growth.
Staff development activities are geared to enhance their capabilities for applying the knowledge
and facts towards development of practical situations. Under Foundations human resource
management policy, it develop and groom its management personal for positions of greater
responsibilities analytical, interpersonal, conceptualized and specialized skills to enable them
understand cause-and-effect relationships and to think logically.
1.6.1 HR Process in OPF
In OPF an effort to anticipate future business and environmental demands on an organization
and to provide qualified people to fulfill that business and satisfy those demands. HRP includes
talent inventories, human resource forecast, action plans, control and evaluation.
1.6.2 Methods to Forecast HR Needs
The purpose of human resource forecasting is to estimate labor requirements at some future
time period. In OPF there are two main methods of forecasting.
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Forecasting External Human Resource Supply
Forecasting Internal Human Resource Supply
1.6.3 Forecasting External Human Resource Supply
Overseas Pakistanis Foundation regularly makes projections of external labor market
conditions and estimates of the supply of labor to be available in general categories. This
procedure of forecasting is helpful for the Organization find such projections of the external
labour market to be helpful in preventing surplus or deficits of employee.
1.6.4 Forecasting Internal Human Resource Supply
In Overseas Pakistanis Foundation under the method of internal forecasting a reasonable
starting point for projecting an Organization, future supply of labors its current supply of labor.
Under this method the simplest type of internal supply forecast is the succession plan.
Succession plan may be developed for management, non-management employees or both in
OPF this process for developing such a plan includes setting a planning horizon, identifying
replacement candidates for each key position, assessing current performance readiness for
promotion, identifying career development needs, and integrating the career goals of
individuals with Organization goals.1.6.5 Recruitment and Selection
In Overseas Pakistanis Foundation the process of recruitment and selection is very ethnic and
comprehensive as compared to the other organization in Pakistan. Although they adopted the
Government procedures but it give more accuracy and competency. All the selection and
recruitment are made purely on merit according to provincial quota of Government.
1.6.6 Sources of Candidates
Following are two main sources of candidates used in recruitment / selection process in OPF.
Internal Source
External Source
Procuring competent personnel requires positive recruitment efforts and the development of a
variety of recruitment sources. These sources must consider not only the nature and conditions
of the external labor market, but also the presence of qualified personnel who are
available to fill vacancies through internal promotions or transfers. Keep in mind the
requirement activities are integrated with diversity and Equal Employment Opportunity (EEO)
initiatives. Staffing needs must be anticipated sufficiently in advance to permit the recruitment
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and development of fully qualified personnel.
For proper administration of a cadre or post, the appointing shall cause seniority list of the
members for the time being of such cadre or post to be prepared but nothing herein shall be
construed to confer any vested right to a particular seniority in such cadre post.
1.7 Internal Audit Division
All organizations have strengths and weaknesses in their functional areas of business. For
analyzing the internal situation of the organization with regard to its management, marketing,
finance, operations and research and development, internal audit is performed. The internal
audit is executed parallel to the external audit. This process provides more opportunity for the
participants and the managers to understand the key areas within an organization.
1.7.1 Key Internal Forces
i. Marketing
ii. Finance
iii. Accounting
iv. Management
v. Management Information System
vi. Production/Operations
The audit division is responsible for checking and reporting on the management compliance
with the boards policies and directives, as also the prudential regulations and other directives
of the Companies Ordinance 1984. However their role is not intended to just that of fault
finding; but also guiding and assisting to Regional offices and other Departments in improving
their operations.
The division is responsible for evaluating every aspect of the OPF's operations with the goal of
improving the effectiveness of risk management and internal control. There is also a regional
audit function attached to each area office; the nature of this business is of more quality
assurance rather than strictly audit. The regional audit report to the area General Manager, and
assist them in ensuring that there is proper compliance with all the relative directives, and also
that customer service standards are maintained and improved, at the offices in the area.
1.8 Finance Division
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Responsible for book keeping and accounts, this division at head office, prepare all financial
returns and the MIS through its management-reporting wing. The division is actively involved
in preparing market comparative analysis, consolidation of OPF's budgets, Salary of
employees, preparing employees Gratuity and Provident funds, its monitoring and constant
review of various financial indicators.
Finance division works as the backbone for the OPFs operations. The division, which reports
directly to the Finance Director and Chief Executive of the OPF, has been instrumental in
preparation of Foundations business plans and future strategies. The budgetary performance
are constantly reviewed and through a sophisticated " monthly performance report which is acomputer based program, the division provides feed back to the senior on strategic issue like
reasons for budgetary variance and methods to arrest negative performance factors.
Preparing the Foundations annual accounts and coordinating external audit is also a direct
function of the finance division. Through the dedicated efforts of staff at this division, the
Foundation enables it self to meet its requirements.
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CHAPTER # 3
1. Internship Experience
One of the most important aims of the student life is to express his/her correctly and
adequately. This was the believe in my mind when I first decided to go to Overseas Pakistanis
Foundation to complete my internship program.
Determined, Confident and Persistent in the pursuit of knowledge and learning, I was on my
way to OPF Head Office Shahraye Jamhuriat G-5/2, Islamabad early morning of January 1,
2010. Just a few days before, I had given the exams of my final semester. Normally I wanted
rest and recreation in July after the tiring class but this time I was anxiously waiting for the
start of my internship.
1.1 Structure of the Finance Department
There are 24 employees working in the finance department at different positions and handling
different financial tasks like preparation of Gratuity, Provident fund, Salaries of employees
Bank accounts, Deposits and Investments etc.
1.1.1 Functions of Finance Department
i. Budget
Preparation & compilation of annual Budget Estimates for presentation to the
Board of Governors for its approval.
Effective budgetary controls by periodic review.
ii. Accounts
Maintenance of the Books of Accounts.
Preparation of periodic and annual accounts, as per statutory provisions.
Presentation of annual audited accounts to the SFC and the Board of Governors
for its approval.
iii. Financial Discipline
Instituting a proper financial system.
Maintenance of financial discipline and effective control, to safeguard interest
of OPF.
To render financial advice and guidance to the various Divisions and Offices of
OPF.
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Pre-audit and processing of various payments.
To keep effective control over expenditure in accordance with the approved
budget estimates and delegated financial powers.
iv. Collection of Welfare Fund and Financial Management
Maintenance of the welfare fund collection bank accounts.
Reconciliation of welfare fund.
The Welfare Fund receipts are exempted from I. Tax since assessment year
1992-93
Maintenance of bank accounts of OPF.
Investment of surplus funds in long terms and short terms securities / schemes, as
per Government instructions / policies.
Maintenance of investment accounts.
Periodic review of investment portfolio.
Negotiation / meeting with financial institutions for better rate of profit.
Financial review of various proposal / activities initiated by various Divisions
for consideration of Managing Director and approval of the Board of
Governors.
To arrange meetings of the OPF Investment Committee to consider / review
investment of OPF funds.
The Income from Investments and other resources are Taxable.
v. Annual Statutory Audit and Government Commercial Audit
Arrangement for annual statutory audit and government commercial audit.
Provision of records and related information to the Auditors for conduct of
audit.
Settlement of audit observations, if any.
Coordination with the Ministry for Public Accounts Committee meeting.
vi. Taxation
Filling of annual tax returns.
Pursuance of taxation matters with relevant authorities and courts
Guidance to Divisions / Offices on tax matters.
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Coordination with OPF Tax Consultants.
vii. Distribution Of UNCC Claims to Gulf War Effectees
Maintenance of foreign currency and local currency bank accounts for UNCC
funds.
Maintenance of record for receipt of funds from UNCC.
Maintenance of record for disbursement of claims to the beneficiaries
Preparation of cheques in favor of the beneficiaries.
Financial verification of the cases, before release of cheques.
Financial management of UNCC funds to earn profit.
1.1.2 OPF Investment Committee (OIC)
OPF Investment Committee (OIC) was constituted by OPF Board of Governor in its 83rd
meeting held on 22nd April, 2002. The committee was re-constituted in 90th Board meeting
held on 13th May, 2004 consisting of the following:
Managing Director, OPF - Chairman
Senior Joint Secretary, Ops Division - Member
Member BOG - Member
Member BOG - Member
Member BOG - Member
Director Finance, OPF - Member/ Secretary
1.1.3 Functions of OPF Investment Committee (OIC)
To identify attractive and safe investment avenues, plan and submit proposals to
the BOG.
To decide about long term investment of funds.
To submit investment reports for information of BOG.
i. Investment Policy
OPF Investment Committee has been considering the proposals for placement / investment of
OPF Funds in private banks and Government securities in the light of instructions / policy on
banking facilities for public sector enterprises and local / autonomous bodies issued by
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Government of Pakistan, Finance Division (Regulation Wing) vide its Office Memorandum
No.F.4(1)/2002-BR.II dated 2nd July, 2003.
ii. Working Balances
Bank / financial institutions taking a deposit should have a minimum A rating (long
term);
Selection of banks/(s) should be transparent. The selection of the bank/(s) as well as the
terms of deposits will be approved by the concerned Board of Directors / Governing
Body on the basis of competitive bids from at least three independent banks;
In cases where total working balance of an enterprise exceeds Rs.10 million, not more
than 50% of such balance shall be kept with one bank;
In case the rating of the deposit taking bank drops below A the new deposits will be
shifted within a period of one month and old deposits within a period of two months to
a bank/(s) with at least A rating; and
Working balance limit of each organization should be determined with the approval of
administrative ministry in consultation with Finance Division. The account of this
working balance may be maintained in a current or saving bank account.
Surplus Funds.
Public sector entities are allowed to invest 20% of the total funds under management in
the non-government securities / TFCs / shares. Eligibility criteria of non-government
investment instruments will be as follows:-
Non-government debt instruments should have a major rating category of A and
above;
Public listed shares/units should have a total return comprising the dividend paid and
appreciation in value, which exceeds the average six months Treasury Bills rate for the
last three years.
managed by the public sector entity, whichever is lower; and
Investment in shares of Greenfield project/companies will not be eligible.
Initial Public Offerings (IPOs) of shares of existing companies should have a track
record of three year profitability at least equal to the average of twenty best performing
companies on Karachi Stock Exchange;
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iii. Others
Setting up of an in house Investment Management Unit for assistance of the
Investment Committee.
Use of the services of professional fund manager approved by SECP.
Principal Accounting Officer of the Ministry concerned will be responsible for
the implementation of the instructions.
Chief Executive of PSE/Local Autonomous Bodies will be required to issue a
certificate on annual basis that the instructions are being followed in respect of
the working balance and surplus funds of the organization.
2. My Learning Experience at OPF
2.1 DUTIES
While during internship in Overseas Pakistanis Foundation all of the internees are given periodical rotator y
assignments across the various Finance functions. And internees are liable to work on it during his/her whole
internship period.
2.2 Week IST
In the first week in order to have acquaintance with the organization and to understand the processes followed at
your concerned department a brief introduction is given by each staff member of his/her job responsibilities and
activities. These include:
Head Office Payments
Regional Offices Accounts
Salary Accounts
Provident Fund/Gratuity
Welfare Accounts
Housing Accounts
Educations Accounts
P&MC Accounts
Internal Audit Accounts
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2.3 Week 2nd
After the first week I was given the following assignments one after one and I was to submit the findings in the
form of report to the concerned supervisor. During my internship period I was given the following assignments:
Assignment Nature
Head Office Accounts
Regional Offices/IAD/P&MC & Welfare Accounts
Provident Fund/Grautity & Salary
Investment
i. Head Office Accounts:
(Lutrur Rehman/DD-Fin)
All the internal & third party payments after approval from the concerned authority is made by
this section & includes:
Cash Payments against Employee Claims
Cheque/Debit Authority Payments against employee claims
Cheque/Bank Remittal Payment to third parties
Posting to General Journal Books
Trail/Bank Reconciliations
Submission of Taxes
Fixed Assets record maintenance
Scheduling the accounts
ii. Head Office General Ledger (G/L)
(Deal by Syed Adil Masood & Supervised by Mr. Ltfur Rehman)
The main activities perform by Mr. S.Adil Masood using Sidat Hyder Financials are:
Prepare and input journal Entries the general entry sheet is used for journal entries of all the
departments but each department has their own heads.
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Prepare and allocate debit Notes to from other location they receive the debit notes from head
office, then they allocate to the concerned department.
Reconciliation of Account current they check the trial once a month but the concerned department
must enter their data into system. Otherwise the reconciliation cannot be done.
Prepare monthly schedules the monthly schedule deals mostly in rent, insurance, wages, fixed
assets etc.
Coordinate interim/ Final Audit The audit is done mostly when the month of June ends. So the
audit team visits in afterwards. International audit is done after every year .the auditors visit the
finance department. They check all the operations done in past.
2.4 Week 3rd
Regional Offices/IAD/P&MC:
(Maintained by Mr. Haider Abbas & Supervised By Lutrur Rehman/DD-Fin):
All the internal & third party payments after approval from the concerned authority made at the
Regional Offices is maintained in the database by this section & includes:
All the activities highlighted in Head Office accounting practices.
Consolidation of Fixed Assets (using straight line method)
Submission of Monthly, Quarterly & Annual Tax statements
iii. Welfare Accounts
(Deal by Mr. Khalid M. Khokhar & Supervised by Mr. Khalid Ramazan/DD-Fin)a. Functions
Membership Cards
Emergency Relief Cell
Flood Camps
Eye Camps
Earthquake Camps
War effectees Welfare Projects
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Eye Hospitals
Financial Aids
All the internal & third party payments after approval from the concerned authority made at the
Head office, Emergency Cells, Eye Hospitals is maintained in the database by this section &
includes:
All the activities highlighted in Head Office accounting practices.
2.5 Week 4th-5th
i. Gratuity
(Deal by Mr. Shaoib Baqa & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)
Gratuity is a voluntary extra payment made to certain service sector workers in addition to the
advertised price of the transaction. Such payments and their size are a matter of social custom.
Gratuity varies among cultures and by service industry.
a. Accomplishments
I learned to prepare the computerized data of all the employees of OPF including, head officeRegional offices and schools for the year July 2008 to June 2009. After preparing the raw data
the next step was to verify that all the employees were included or not from the records of
salary. The data include the names of employees, their respected grades, basic pay and then net
pay after all deductions. The data was prepared separately both for executives and non
executive employees.
After all the verification the final data was entered in their special computerized programme
made for Gratuity.
ii. Employees Provident Fund
(Deal by Mr. Shaoib Baqa & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)
EPF grants employees retirement benefits via a body that is intended to manage their savings.
The EPF is intended to help employees from both private and non-pensionable public sectors
save a fraction of their salary in a lifetime banking scheme, to be used in an event that the
employee is temporarily or no longer fit to work. The EPF primarily applies to retirement, but
sickness, disabilities or unemployment are also covered. The EPF also provides a framework
for employers to meet legal and moral obligations to their employees.
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As of 2009, the EPF functions by procuring at least 10% of each member's monthly salary and
storing it in a savings account, while the member's employer is obligated to additionally fund at
least 10% of employee's salary to the savings at the same time. While in savings, a member's
EPF may be used as investments for companies deemed profitable and permissible by the
organization, from which dividends are banked to respective members' accounts.
a. Accomplishments
I learned to prepare the computerized data of all the employees of OPF including, head office,
regional offices and schools. After preparing the raw data the next step was to verify that all the
employees were included or not from the records of salary and deductions. The data include thenames of employees and employer and employees contribution for provident fund. The
contribution includes 10% deduction from both of the parties. The data was prepared separately
both for executives and non executive employees.
After all the verification the final data was entered in their special computerized programme
made for CPF.
iii. Salary Accounts
(Deal by Mr. Sajid Amin & Supervised by Mr. Khalid Ramadan/DD-Fin)
The salary section works on:
Salary Accounts of Head Office/Regional Offices/Projects
Loans Accounts of Employees
Payment of Taxes
Payables & Receivables Record
a. Salary Generation Process
The salary is generated using Oracle financials software developed by Sidat Hyder Morsheed pvt ltd.
Salary id disbursed on monthly basis & is transferred to each employee bank account along with the
salary slips
Taxes statements are generated respectively.
Adjustment of advance salary & loans accounts are maintained & settled by this department on
monthly basis.
2.6 Week 6th
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i. Investment
(Deal by Mr. Kamran Tehsin & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)
Sources of Funds:
Welfare Division Funds
Membership Fee
Income from hospitals
Income from welfare funds invested
Education Division Funds
Fee
Income from educational division funds invested
Housing Division Funds
Income from sale of Plots
Income from housing division funds invested
ii. Investment Decision/Criteria
Bank / financial institutions taking a deposit should have a minimum A rating (long term).
Selection of banks/(s) should be transparent. The selection of the bank/(s) as well as the terms
of deposits will be approved by the concerned Board of Directors / Governing Body on the
basis of competitive bids from at least three independent banks.Working balance limit of each
organization should be determined with the approval of administrative ministry in consultation
with Finance Division. The account of this working balance may be maintained in a current or
saving bank account.
Non-government debt instruments should have a major rating category of A and above;
Public listed shares/units should have a total return comprising the dividend paid and
appreciation in value, which exceeds the average six months Treasury Bills rate for the last
three years.
Public listed shares/units should have a total return comprising the dividend paid and
appreciation in value, which exceeds the average six months Treasury Bills rate for the last
three years. Managed by the public sector entity, whichever is lower; and Investment in shares
of Greenfield project/companies will not be eligible. Initial Public Offerings (IPOs) of shares
of existing companies should have a track record of three year profitability at least equal to the
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average of twenty best performing companies on Karachi Stock Exchange; Setting up of an in
house Investment Management Unit for assistance of the Investment Committee. Use of the
services of professional fund manager approved by SECP. Principal Accounting Officer of the
Ministry concerned will be responsible for the implementation of the instructions. Chief
Executive of PSE/Local Autonomous Bodies will be required to issue a certificate on annual
basis that the instructions are being followed in respect of the working balance and surplus
funds of the organization.
2.7 HOW EXPERIENCE IMPACTS MY CAREERWell my first professional exposure at OPF was a fantastic experience I learned a lot about the professional and
corporate life. And every staff member was very much cooperative and friendly. Besides this I have been
working with other internees, which was another excellent exposure to professional world. It can never be denied
that the things which are learnt thorough demonstration are never forgotten and thats what internship is all about.
It makes you professional; aware you of time management, how-to discuss anything with upper management or
lower management. Internship is a step to the professional world while in the midst of your studies. It brings
commitment and professionalism in ones life and makes one prepare for the thick and thin of future life
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CHAPTER # 4
Financial Analysis
1. Ratio Analysis of the Organization
1.1 Liquidity Ratios
i. Current Ratio
Current ratio is calculated as current assets divided by current liabilities. It shows a firms
ability to cover its current liabilities with its current assets.
Quick Ratio
Acid Test Ratio is calculated as current assets fewer inventories divided by current liabilities. It
shows a firms ability to meet current liabilities with its most liquid (quick) assets.
Year 2009 2008
Current Ratio 11.75 11.42
Quick Ratio 2.86 2.01
Formula = Current Assets
Current Liabilities
Formula = Cash + Short-Term Investments + Receivables
Total Current Liabilities
Interpretation
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In the year 2009, the Current ratio was 11.75:1 which indicates that as compared to previous
years, in this year the position of the foundation is better. It is important to note that a high
current ratio is indicative of good management practices.
While the Quick ratio is the refinement of current ratio. To arrive at this point, we need to
deduct short term investments and receivables from the current assets as it blocks the cash
requirement of the company. This is the most liquid point where organization can easily gauge
that how well organization has ability in cash to pay its short term requirements. This ratio also
shows an increasing trend.
2. Leverage Ratio2.1 Debt Ratio
This ratio measures the proportion of total assets financed by the firms creditors.
Year 2009 2008
Debt Ratio 0.24 0.28
Formula = Total Liabilities
Total Assets
Interpretation
Higher this ratio greater amount of other people being used to generate profits, also mean more
financial leverage a firm has. Less leverage leads to strong equity position. This ratio also
called debt to asset ratio. In year 2009 the ratio decreased which shows the good sign of
management practices.
3. Asset Utilization/Turn-over Ratio
3.1 Total Asset Turnover Ratio
It measures relative efficiency of total assets to generate revenue.
3.2 Total Fixed Asset Turnover Ratio
It measures relative efficiency of fixed assets to generate revenue.
Year 2009 2008
Total Asset Turnover -0.019 -0.004
Fixed Asset Turnover -0.353 -0.077
Formula = Net Sales/Income
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Total Asset
Formula = Net Sales/Income
Average Fixed Assets
Note: As the foundation has no sales account so total income is considered as sales.
Interpretation
Total asset turnover ratio measures the ability of the foundation to generate revenue through
the use of assets. It also includes that how much revenue contribution involved in the whole
business of the foundation. As per above figure, total Asset Turnover Ratio of the foundation is
increasing in a negative way, which is not a good sign, due to deficit in both years.
The fixed asset Turnover Ratio measures the firm ability to make productive and optimum
utilization of its assets or property. It should be high one, OPF performance in this regard is not
satisfactory as its fixed assets turnover ratio in the year 2009 is decreased as compared with
previous year due to deficit.
4. Profitability Ratios
4.1 Operating Expenses/ Revenue
This ratio signifies the proportion of the revenues that is used to cover the operating expenses
of the foundation.
4.2 Return on Assets
This ratio indicates the profit earned by the foundation on the total assets employed.
Year 2009 2008
Operating Expenses/ Revenue (%) 115 101
Return on Assets (%) -1.95 -0.43
Formula = Operating Expenses
Net Revenue
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Formula = Net income after taxes
Total Assets
Interpretation
Operating Expenses/Revenue ratio is showing that foundation is not earning sufficient
amount of revenues to meet the expenses of the operations operating on behalf of foundation.
As from the figures Return on assets ratio in year 2009 is less than that of balance in year
2008 which means that foundations return on assts in not satisfactory due to deficit
5.Capital Adequacy Ratios
5.1 Capital Funds to Total Assets Ratio
Year 2009 2008
Capital Funds to Total Assets Ratio 12.43 12.37
Formula = Capital Funds
Total Assets
Interpretation
This ratio indicates the extent of the funds employed by the foundation in the total resources as
shown in the balance sheet. This ratio has been increased in the current year with a very low
margin. For All Ratios References: (See Appendix 2 & 3).
2. Vertical and Horizontal Analysis of Organization
2.1 Vertical Analysis
An analysis of percentage financial statements where all balance sheet items are divided by
total assets and all income statements items are divided by net sales or revenues.
In addition to other financial ratios over time, it is often useful to express balance sheet items
and income statement items as percentages. Common size Analysis, also called Vertical
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Analysis, or Component Percentage, or 100 percent Statements as each statement is reduced to
the total of 100 and each individual item is stated as a percentage of the total of 100.
VERTICAL ANALYSIS OF THE BALANCE SHEET
2009 2008
ASSETS IN % IN %
NON CURRENT ASSETS
PRORETY,PLANT & EQUIPMENT 5.53 5.63
INTENGIBLE ASSETS 0.03 -
WORK IN PROGRESS ( HOUSING) 22.89 -
LAND AND DEVELOPMENT COST OF
HOUSING SCHEMES - 28.09
INVESTMENT IN OPF GIRLS COLLEGE 2.23 2.25
LONG TERM INVESTMENT 23.68 24.37
INVESMENT IN SUBSIDIARY 0.00 0.00
LONG TERM LOANS ADVANCES 2.86 2.39
LONG TERM DEPOSITS 0.03 0.03
CURRENT ASSETS
STORES 0.04 0.03
LOANS AND ADVANCES 0.79 0.65SHORT TERM PAYMENTS 0.51 0.53
ACCRUED INTEREST 1.80 1.28
OTHER RECIVABLES 3.98 3.21
SHORT TERM INVESTMENTS 30.07 29.11
TAXATION RECOVERABLE 2.01 1.52
CASH AND BANK BALANCES 3.55 0.92
TOTAL 100 100
LIABILITIES 2009 2008
IN % IN %
FUND AND RESERVE
WELFARE FUND 63.37 59.66CAPITAL RESERVE 0.00 0.00
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SPECIAL RESERVE (UNCC) EXCHANGE
FLUCTUATION RESERVE 0.22 0.22INTEREST ON UNCC DISBURSMENT BANK
ACCOUNT 11.87 11.76
REVALUATION RESERVE 0.34 0.39
NON CURRENT LIABILITIES
ADVANCES RECEIVED FROM PLOTS - 24.14
PROGRESS BILLING-HOUSING SCHEMES 19.06 -
EMPLOYEES COMPENSATED ABSENCE 0.82 0.57
DEFERRED TAXATION 0.68 -
CURRENT LIABILITIES
TRADE AND OTHER PAYABLES 3.59 2.45
PROVISION FOR TAXATION 0.04 0.81
TOTAL 100 100
Reference: (See Appendix 2)
Interpretation of Assets
In 2009, on one hand non current assets are increased due to increase in work in progress of
housing schemes. Advances have also increased from 2.39% in the previous year to 2.86% in
the current year which may indicate that the foundation utilize the funds raised in the other
activities primarily lending to the financial institutions as it is the most secure source of
financing available in the economy.
On the other hand in current assets Cash, short term investment, accrued interest is also
increasing. The property plant and equipment of the foundation is showing a little portion of
the foundations total assets.
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In the last the foundation is over all showing a good financial health and is going on healthy
tracks in near future it has no risk of bankruptcy. Although the foundation is showing good
results but we cant say that these are the best conditions prevailing in the foundation as we are
unaware of the market conditions and cant compare it with other welfare organizations.
Interpretation of Liabilities
The liabilities and capital reserves are side components of the foundation showing the
relationship as compared with the total of the liabilities and capital reserves. The welfare fund
is showing more percentage than the previous year by 3.71%. However it is also evident from
the data that the progress billing housing schemes, deferred tax and payables are increasing.Reference: (See Appendix 2).
VERTICAL ANALYSIS OF THE REVENUE AND EXPENDITURE ACCOUNT
2009 2008
IN % IN %
REVENUE
INTEREST ON WELFARE FUND BANK
DEPOSITS -265.93 -1171.89
HOUSING DIVISION -0.08 -59.32
WELFARE DIVISION -2.04 -13.08
TRAINNING DIVISION -0.16 -2.28
EDUCATION DIVISION -140.42 -545.84
PUBLICITY AND MARKETING CELL -0.26 -1.27
SERVICE CHARGES- UNCC -0.78 -62.77
OTHER INCOME -38.57 -172.61
EXPENSES
HOUSING DIVISION -19.07 -62.61
WELFARE DIVISION -55.48 -366.92
TRAINING DIVISION -6.93 -66.36
EDUCATION DIVISION -174.33 -695.48
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PUBLICITY AND MARKETING CELL -9.42 -30.56
ADMINISTRATIVE EXPENSIS -187.56 -748.65PROVISION FOR EARNED LEAVES -20.09 -37.56
PROVISION FOR GRATUITY FUND -42.38 -30.71
DEFICIT FROM OPERATIONS 67.04 9.80
PROFIT OF HOUSING SCHEMES -4.19 0.00
OTHER EXPENSES 0.02 0.09
DEFICIT BEFORE TAXATION 62.87 9.89
PROVISION FOR TAXATION
CURRENT -2.48 -90.11DEFERRED -34.66 0.00
DEFICIT AFTER TAXATION 100 100
Reference: (See Appendix 3)
Interpretation
The most important component of any organization is its revenue and expense account, which
shows its overall performance. As OPF is a welfare organization works for the betterment for
Pakistanis living abroad, so earning profit is not its main objective. However we observe that in
2009 the performance is not good as compare to previous year. The revenues increased little bit
but the expenses increased more than the previous year, which shows negative performance,
and organization showing a loss due to more gratuity payments and more deferred taxation.
Reference: (See Appendix 3).
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2.2 Horizontal Analysis
Trend Analysis, also called Horizontal Analysis of the financial statements is one directional-
upward or downward analysis and involves the computation of the percentage relationship that
each statement item bears to the same item in the base year.
HORIZONTAL ANALYSIS OF THE BALANCE SHEET
2009 2008 2007
IN % IN % IN %
ASSETS
NON CURRENT ASSETS
PRORETY,PLANT & EQUIPMENT 102.14
102.
72 100
INTENGIBLE ASSETS - - 100
WORK IN PROGRESS ( HOUSING) 82.57
116.
43 100
LAND AND DEVELOPMENT COST OF HOUSING
SCHEMES 124.57
100.
69 100
INVESTMENT IN OPF GIRLS COLLEGE 100.00
100.
00 100
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LONG TERM INVESTMENT 96.35
98.
48 100
INVESMENT IN SUBSIDIARY 100.00
100.
00 100
LONG TERM LOANS ADVANCES DEPOSITS 157.04
131.
96 100
CURRENT ASSETS
STORES 109.06
83.
64 100
LOANS AND ADVANCES, OTHER RECIVABLES,
PRE PAYMENTS & ACCRUED INTEREST 178.26
141.
82 100
SHORT TERM INVESTMENTS 110.08
105.
89 100
TAXATION RECOVERABLE 219.12
164.
03 100
CASH AND BANK BALANCES 333.12
85.
85 100
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Reference: (See Appendix 2)
Interpretation
First we discuss the assets side of the Organization. The performance in 2009 is much better
than previous years. In non current assets, the cost of housing schemes and long term loans and
2009 2008 2007
LIABILITIES IN % IN % IN %
FUND AND RESERVE
WELFARE FUND
132.1
6
123.6
1 100
CAPITAL RESERVE
100.0
0
100.0
0 100
SPECIAL RESERVE (UNCC) EXCHANGE
FLUCTUATION RESERVE
100.0
6
100.0
6 100
INTEREST ON UNCC DISBURSMENT BANK
ACCOUNT
104.6
8
103.0
0 100
REVALUATION RESERVE
119.7
8
136.2
9 100
NON CURRENT LIABILITIES
ADVANCES RECEIVED FROM PLOTS -
99.4
0 100
PROGRESS BILLING-HOUSING SCHEMES - - 100
EMPLOYEES COMPENSATED ABSENCE
145.3
7
106.1
0 100
DEFFERED TAXATION - - 100
CURRENT LIABILITIES
TRADE AND OTHER PAYABLES134.4
291.0
9 100
PROVISION FOR TAXATION
6.3
8
114.7
6 100
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advances are increased. In current assets all the item are increased. On the other hand in
liabilities the welfare fund is increased and revaluation reserves are decreased and in non
current liabilities the employees compensation and payables are increased at a huge amount
from the previous years. Reference: (See Appendix 2).
HORIZONTAL ANALYSIS OF THE REVENUE AND EXPENDITURE ACCOUNT
2009 2008 2007
IN % IN % IN %
REVENUE
INTEREST ON WELFARE FUND BANK DEPOSITS 186.34 180.77 100HOUSING DIVISION 36.84 60.52 100
WELFARE DIVISION 112.18 158.25 100
TRAINNING DIVISION 20.27 63.76 100
EDUCATION DIVISION 112.32 96.12 100
PUBLICITY AND MARKETING CELL 50.07 54.92 100
SERVICE CHARGES- UNCC 24.05 42.65 100
OTHER INCOME 132.62 130.67 100
EXPENSES
HOUSING DIVISION 129.76 93.79 100WELFARE DIVISION 98.72 143.74 100
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TRAINING DIVISION 53.39 112.48 100
EDUCATION DIVISION 120.61 105.93 100PUBLICITY AND MARKETING CELL 179.08 127.92 100
ADMINISTRATIVE EXPENSIS 121.26 106.55 100
PROVISION FOR EARNED LEAVES - - 100
PROVISION FOR GRATUITY FUND - - 100
DEFICIT FROM OPERATIONS -52.05 -36.74 100
PROFIT OF HOUSING SCHEMES - - 100
OTHER EXPENSES 47.04 47.04 100
DEFICIT BEFORE TAXATION -48.83 -39.69 100PROVISION FOR TAXATION
CURRENT 7.77 62.23 100
DEFERRED - - 100
DEFICIT AFTER TAXATION -24.96 -5.49 100
Reference: (See Appendix 3)
InterpretationThe performance of Organization is good both in 2009 and in 2008 with respect to revenue as
compare to 2007. As the amount of interest and income from education division and other
income showing profit, but on the other side the expenses are also increased from the same
speed in both years as compare to base year in almost every department and causes the deficit
and showing the negative performance, which is not a healthy sign.
Reference: (See Appendix 3).
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CHAPTER # 5
1. SWOT Analysis
1.1 Strengths of the Organization
Very good accounting system is in place.
A transparent system for assets acquisition is in placed.
There is proper internal control over purchase of assets acquisition.
Disposal through open auction is also very transparent.
Pick & drop facility to the employees of the Organization
Very effective platform to meet the Overseas Pakistanis from all over the world
Free Medical facility for employees.
Concession in tuition fee for the children of Overseas Pakistanis as well as
employees of Foundation.
1.2 Weaknesses of the Organization
Members of Board of Directors are not the employee of OPF.
Poor Planning regarding the recruitment of contract employees.
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Bad labor, management relations.
Promotion criteria are not excellent.
Lack of communication between staff and management.
Ideas and suggestions are not encouraged.
There is no concept of creativity.
Late coming of executive staff creates problems for non executive staff.
1.3 Opportunities of the Organization
Most of OPF Schools/Colleges are not running well, a careful planning and
interest can turn them into profitable institutions in future.
The higher authorities should take serious action to cut down extra
expenditures.
The new recruitment should be on merit.
They should improve the standard of services particularly for OPs.
Proper marketing techniques should be use to increase the revenue.
1.4 Threats of the Organization
The percentage of the Political influence of the employees in the foundation is
increasing as compare to the past five years.
The management should take serious action against the recruitment under
political influence.
OPF should take the serious action to increase the members (Overseas
Pakistanis)
The work on the housing schemes is very slow, try to work fast to keep and
increase the interest of the Pakistanis as well as Overseas Pakistanis.
Political influence.
2. PEST Analysis
PEST is the Acronym for:
P- Political
E- Economical
S- Social
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T- Technological
2.1 Political
The political situations are very important for proper working of any organization owned by the
Government of that country. Due to political instability and interference, the performance of
the organization decreases and that situation also leads to decrease in employees performance,
job commitment and efficiency e.g. political recruitments or references of the political and
influential people. As OPF is a government organization so it has a high political effect.
2.2 Economical
Economical situation are also very important for public owned organizations. When theeconomic conditions of the government are not in a good position the government is unable to
provide the required funds and not in a position to boost up the economic position of the
organizations to meet the inflation and other challenges. The OPF is providing economic
rehabilitation facilities to the Pakistanis living abroad e.g. Bila Sood Qarz Scheme, Financial
Aid Scheme and Settlement of Dues Cases etc.
2.3 Social
Socially when the productivity of publicly owned organizations increases the confidence of
employees and customers also increases, which help to build a good name and repute of the
organization which leads to more confidence, reliability and satisfaction, so it boosts up the
economy. As OPF is a welfare organization so it is involve in the social welfare of the
Pakistanis living abroad.
2.4 Technology
Technological advancements are very important to compete globally. From technological
advancement the work can easily be done, quality of services and products improved. The
technology safe the precious time of both, customers and employees. Customers are more
satisfied and customers loyalty also increased. OPF is now having an up to date technology for
the welfare of the Pakistanis living abroad.
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CHAPTER # 6
1. The Problems I Faced
1.1 Lack of Communication among the Employees
During the period of my internship I found this problem as a biggest problem that, employees
were not very effective in communication. They did not share the experience with each other
and did not care the other employees. If one employee had a problem, he asked from other, but
the other did not give clear solution to that problem. They used to show the facial expressions
against each other. They used to talk against each other in front of me. So, finally it is very
needy for a public services organization to keep atmosphere friendly among the management
and employees. In my opinion in Foundation there is lack of communication skills among the
employees.
1.2 Lack of Commitment
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Lack of commitment was also a big problem faced by the OPF. Employees were not committed
to the work and their duties. This was very common problem. Top management was also not
very committed to this Foundation. So, I finally concluded that there was a lack of commitment
from employees and top management.
1.3 Low Efficiency of Employees
Efficiency of employees was also low in this Foundation.
1.4 Not Very Regular and Punctual
Regularity and punctuality shows the character of a big and good executive. But this problem
was also faced by the OPF; many executives were not come at time.
1.5 Lack of Computing Skills
Computing skills were also low, some executive are very efficient in computing skills but some
were not totally aware from this system.
1.6 Misuse of Resources
Resource are very needy, so there must be avoid to misuse the resources but in this foundation
it was reverse case, there was very wrong use of the resources, employees did not take care of
resources and not used them in right direction. For example wrong printing, extra printing, after
service time.
Finally it is suggested that if these problems are solved there are much more chances for
increase the performance of OPF.
2. New Knowledge Acquired
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During the internship there is practical knowledge acquired about the field of finance. What
activities are performed by organizations and how to deal with public? Also commitment about
work and operations of organizations. Financing and credits and other public services are
performed by the organizations and much learns about the various executives experiences and
their skills. What is role of higher authority (manager) in decision making and how to solve the
problems? How much money or reserves are used to meet the requirements in the foundation.
Doing the internship was a wonderful experience for me but as far as preparation of the report
is concerned it was the most difficult part of the project. Preparing for report become most
difficulty and tedious as most of the information was not available not only on net but also
from the foundation also. I was unable to get the following material.
History of the Foundation
Accounts related information
Career ladder
Job description
I was fortunate to have wonderful Annual reports of the foundation. Especially it was rested
according to the circular of the Companies Ordinance 1984, therefore it was quite easy for me
to analyse the income statements of the foundation. There are some other necessary
requirements for doing the financial analysis of the income statements i.e.
Information about the trends prevailing in the market,
And information regarding the positions of the competitors of the foundation
that is the reason that I was unable to depict the true picture of the financial
position of the foundation.
I was also unaware about the off balance sheet finance of the foundation so, can
say nothing regarding the true liabilities of the foundation.
Anyhow, it was a very learning experience for me that I will never forget in my entire life.
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3. Recommendations
After spending six weeks at different departments of the foundation, interacting with the
employees, getting their views, observing the organizational structure and design, I have come
up with the following suggestions that in my view, will definitely improve a few weaknesses
observed in the foundation by me.
Members of Board of Directors must be employees of OPF.
Eliminate political influences.
Establish policy to accommodate the contract employees.
Improve CBA and Management relations.
Up-gradation / promotion criteria.
Need to reduce communication gap between executive and non executive staff.
The work on housing schemes is very slow, they should improve their
strategies.
Provide proper training to the staff.
They should improve the standard of services particularly for OPs.
Employees should be punctual and come on time.
Most of OPF Schools/Colleges are in huge deficit which create a lot of
problems in future.
The higher authorities should take serious action to cut down extra
expenditures.
Different computer training programs can enhance the employees performance.
Refresher Courses for the staff are most important in any international
organization. All the employees should have these courses according to their
requirements.
4. Conclusion
Overseas Pakistanis Foundation is a company limited by guarantee with the objects to advance
social welfare of the Pakistanis working abroad. According to my point of view there are many
deficiencies in the organization. They have poor recruitment and selection criteria to appointemployees. The main cause is management and political pressure. There is no concept to
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evaluate training need assessment of employees; training is given just after a fixed time by
management and to the some selected employees and departments. Performance is evaluated by
using some performance appraisal methods only, they should be change. Similarly no
motivation, appreciation is given to employees on excellent performance.
All Compensation and benefit of hardworking, capable, intelligent, willing worker and
incompetent employees are same. There is gap between officers and staff which is needed to
reduces immediately to establish friendly working environment, to exchange views, ideas, and
suggestions, to discuss the problems of organization freely.
Organization need to overcome its weaknesses and improve the performance of all thedepartments to enhance organizational performance, importance, and protect employees rights.
References and Sources used:-
PRIMARY DATA
Personal Observations.
Interview with OPF personnel.
Informal meetings with OPF personnel.
SECONDARY DATA
Internship Reports on OPF.
Journals and newspapers.
Unpublished documents available at each department.
Annual reports of OPF year 2008 and 2009.
OPF website (http:// www.opf.org.pk)
http:// www.google search.com
http:// www.wikipedia.com
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Annexure/Appendices
Appendix-1
Type
Of Plan
Contribution(Rs) Period OF
Contribution
Maturity
After
Expected Pension
Payment On
Maturity(Rs)/ PM
Plan - AA-01 120000 LUMP SUM 5 years 1541
A-02 120000 LUMP SUM 10 years 2482
A-03 120000 LUMP SUM 15 years 3997
Plan - BB-01 24000 Per Annum For
10 Years
10 years 3355
B-02 24000 Per Annum For
15 years
15 years 6689
Credit to members @ 10% per annum net of all costs
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Reference: -Admin record & www.opf.org.pk
Appendix-2
OVERSEAS PAKISTANIS FOUNDATION
BALANCE SHEET AS AT 30 JUNE 2008 & 2009
2009 2008
ASSETS RUPEES RUPEES
NON CURRENT ASSETS
PRORETY,PLANT & EQUIPMENT 216,924,683 219,381,239
INTENGIBLE ASSETS 1,213,868 -
WORK IN PROGRESS ( HOUSING) 898,105,000 -
LAND AND DEVELOPMENT COST OF
HOUSING SCHEMES - 1,095,232,336
INVESTMENT IN OPF GIRLS COLLEGE 87,647,127 87,647,127
LONG TERM INVESTMENT 929,472,563 950,003,849
INVESMENT IN SUBSIDIARY 110,200 110,200
LONG TERM LOANS ADVANCES 112,062,739 93,103,741
LONG TERM DEPOSITS 1,064,995 1,061,311
CURRENT ASSETS
STORES 1,763,299 1,352,177
LOANS AND ADVANCES 30,886,754 25,376,428SHORT TERM PAYMENTS 20,063,027 20,473,764
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ACCRUED INTEREST 70,562,408 49,986,733
OTHER RECIVABLES 156,246,909 125,131,218SHORT TERM INVESTMENTS 1,180,089,185 1,135,093,218
TAXATION RECOVERABLE 79,005,227 59,141,265
CASH AND BANK BALANCES 139,143,306 35,861,176
TOTAL 3,924,361,290 3,898,955,782
2009 2008
FUND AND LIABILITIES RUPEES RUPEES
FUND AND RESERVE
WELFARE FUND 2,486,946,553 2,326,060,387
CAPITAL RESERVE 156,250 156,250
SPECIAL RESERVE (UNCC) EXCHANGE
FLUCTUATION RESERVE 8,648,754 8,648,754
INTEREST ON UNCC DISBURSMENT BANK
ACCOUNT 465,850,556 458,367,711
REVALUATION RESERVE 13,277,906 15,107,777
NON CURRENT LIABILITIES
ADVANCES RECEIVED FROM PLOTS - 941,290,851
PROGRESS BILLING-HOUSING SCHEMES 747,879,505 -
EMPLOYEES COMPENSATED ABSENCE 32,185,913 22,139,966
DEFFERED TAXATION 26,582,906 -
CURRENT LIABILITIES
TRADE AND OTHER PAYABLES 141,074,658 95,593,633
PROVISION FOR TAXATION 1,758,289 31,590,453
TOTAL 3,924,361,290 3,898,955,782
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Appendix-3
OVERSEAS PAKISTANIS FOUNDATION
REVENUE AND EXPENDITURE ACCOUNTAS AT 30 JUNE 2008 & 2009
2009 2008
Rupees Rupees
REVENUE
INTEREST ON WELFARE FUND BANK DEPOSITS 203,981,761 197,886,619
HOUSING DIVISION 64,611 10,016,149
WELFARE DIVISION 1,565,400 2,208,217
TRAINNING DIVISION 122,534 385,320
EDUCATION DIVISION 107,705,069 92,170,858PUBLICITY AND MARKETING CELL 195,997 214,955
SERVICE CHARGES- UNCC 597,617 10,598,768
OTHER INCOME 29,582,383 29,146,532
343,815,372 342,627,418
EXPENSES
HOUSING DIVISION 14,628,433 10,572,849
WELFARE DIVISION 42,552,906 61,958,838
TRAINING DIVISION 5,318,970 11,205,375
EDUCATION DIVISION 133,720,047 117,438,573
PUBLICITY AND MARKETING CELL 7,224,776 5,160,605
ADMINISTRATIVE EXPENSIS 143867140 126,416,981
PROVISION FOR EARNED LEAVES 15413000 6,342,848
PROVISION FOR GRATUITY FUND 32,510,084 5,185,586
395,235,356 344,281,655
DEFICIT FROM OPERATIONS (51,419,984) (1,654,237)
PROFIT OF HOUSING SCHEMES 3,213,153 -
OTHER EXPENSES (15,000) (15,000)
DEFICIT BEFORE TAXATION (48,221,831) (1,669,237)
PROVISION FOR TAXATION
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CURRENT 1,899,154 15,216,843
DEFERRED 26,582,906 -
DEFICIT AFTER TAXATION (76,703,891) (16,886,080)