CHAPTER # 1

1.
1.1

Introduction to the Organization

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. 1

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.

 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

Managing Director

GM Internal Audit Div

GM Welfare & Services

Secretary OPF Director

Education

GM

& Director Administr ation

Housing & Works

Director OPPT/ MIS

Director HR

Director Finance

J.D. R.O. Peshawar

G.M. R.O. Mirpur (AK)

J.D. RO Lahore

G.M. R.O. Quetta

G.M. (South) Karachi

Reference: Admin record & www.opf.org.pk

CHAPTER # 2
1. 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

 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 5

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 228 Kanals 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 6

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 Colleges OPF 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, Sindh (4) N.W.F.P (3) Balochistan (3) AJ & K (3) Gujrat, Kalar Sayedan, PakPattan.

Dadu, Larkana, Sanghar, Badin.

D.I.Khan, Mansehra, Hangu. Quetta, Turbat, Pashtoonabad

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. 7

i. ii. iii. iv. v. vi.

Membership of the scheme is voluntary and is open to all overseas Pakistanis. Contributions by members are at fixed rates, for a predefined period. Contributions received are invested in profitable investments and earnings net of all costs are credited to individual pension accounts of the members. Monthly Cash Stream Pension calculated on the basis of the annual earnings in each account becomes due on maturity. Option is available for total withdrawal from pension scheme at any stage. All members of the scheme are covered through an insurance package arranged through State Life Insurance to ensure immediate pension payment to family without any further 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 Division

1.4.1 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 8

 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. 9

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 Pakistanis through 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) iii) Free issuance and renewal of passport on an urgent basis. 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 [email protected].

1.6 Administration and HRM Division

Strategically, perhaps the most important division at the head office is responsible for human resource 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. 11

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 12

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. ii. iii. iv. v. vi. Marketing Finance Accounting Management Management Information System 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 a computer 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. 15

 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. 16

 Coordination with OPF Tax Consultants. 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

vii.

Preparation of cheques in favor of the beneficiaries. Financial management of UNCC funds to earn profit.

Financial verification of the cases, before release of cheques.

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 Senior Joint Secretary, Ops Division Member BOG Member BOG Member BOG Director Finance, OPF Member Member Member Member Chairman

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 17

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; 18

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. 20

 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 a. Functions Membership Cards Emergency Relief Cell Flood Camps Eye Camps Earthquake Camps War effectees Welfare Projects

(Deal by Mr. Khalid M. Khokhar & Supervised by Mr. Khalid Ramazan/DD-Fin)

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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 office Regional 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. 22

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 the names 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 ii. Income from sale of Plots Income from housing division funds invested

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

24

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 CAREER Well 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

25

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 Current Ratio Quick Ratio Formula = 2009 11.75 2.86 2008 11.42 2.01

Current Assets Current Liabilities

Formula

Cash + Short-Term Investments + Receivables Total Current Liabilities

Interpretation

26

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 Ratio
2.1 Debt Ratio This ratio measures the proportion of total assets financed by the firms creditors. Year Debt Ratio Formula = 2009 0.24 2008 0.28

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 Total Asset Turnover Fixed Asset Turnover Formula 2009 2008 -0.019 -0.353 = -0.004 -0.077

Net Sales/Income 27

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 115 -1.95 101 -0.43

Operating Expenses/ Revenue (%) Return on Assets (%) Formula

= Operating Expenses Net Revenue

28

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 12.43 12.37

Capital Funds to Total Assets Ratio

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

29

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
ASSETS NON CURRENT ASSETS PRORETY,PLANT & EQUIPMENT INTENGIBLE ASSETS WORK IN PROGRESS ( HOUSING) LAND AND DEVELOPMENT COST OF HOUSING SCHEMES INVESTMENT IN OPF GIRLS COLLEGE LONG TERM INVESTMENT INVESMENT IN SUBSIDIARY LONG TERM LOANS ADVANCES LONG TERM DEPOSITS CURRENT ASSETS STORES LOANS AND ADVANCES SHORT TERM PAYMENTS ACCRUED INTEREST OTHER RECIVABLES SHORT TERM INVESTMENTS TAXATION RECOVERABLE CASH AND BANK BALANCES TOTAL 2009 IN % 2008 IN %

5.53 0.03 22.89 2.23 23.68 0.00 2.86 0.03

5.63 28.09 2.25 24.37 0.00 2.39 0.03

0.04 0.79 0.51 1.80 3.98 30.07 2.01 3.55 100

0.03 0.65 0.53 1.28 3.21 29.11 1.52 0.92 100

LIABILITIES FUND AND RESERVE WELFARE FUND CAPITAL RESERVE

2009 IN %

2008 IN %

63.37 0.00

59.66 0.00

30

SPECIAL RESERVE (UNCC) EXCHANGE FLUCTUATION RESERVE INTEREST ON UNCC DISBURSMENT BANK ACCOUNT REVALUATION RESERVE NON CURRENT LIABILITIES ADVANCES RECEIVED FROM PLOTS PROGRESS BILLING-HOUSING SCHEMES EMPLOYEES COMPENSATED ABSENCE DEFERRED TAXATION CURRENT LIABILITIES TRADE AND OTHER PAYABLES PROVISION FOR TAXATION TOTAL Reference: (See Appendix 2) 19.06 0.82 0.68 24.14 0.57 0.22 11.87 0.34 0.22 11.76 0.39

3.59 0.04 100

2.45 0.81 100

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. 31

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 -265.93 -0.08 -2.04 -0.16 -140.42 -0.26 -0.78 -38.57 -1171.89 -59.32 -13.08 -2.28 -545.84 -1.27 -62.77 -172.61

DEPOSITS HOUSING DIVISION WELFARE DIVISION TRAINNING DIVISION EDUCATION DIVISION PUBLICITY AND MARKETING CELL SERVICE CHARGES- UNCC OTHER INCOME EXPENSES HOUSING DIVISION WELFARE DIVISION TRAINING DIVISION EDUCATION DIVISION

-19.07 -55.48 -6.93 -174.33

-62.61 -366.92 -66.36 -695.48

32

PUBLICITY AND MARKETING CELL ADMINISTRATIVE EXPENSIS PROVISION FOR EARNED LEAVES PROVISION FOR GRATUITY FUND DEFICIT FROM OPERATIONS PROFIT OF HOUSING SCHEMES OTHER EXPENSES DEFICIT BEFORE TAXATION PROVISION FOR TAXATION CURRENT DEFERRED DEFICIT AFTER TAXATION

-9.42 -187.56 -20.09 -42.38 67.04 -4.19 0.02 62.87 -2.48 -34.66 100

-30.56 -748.65 -37.56 -30.71 9.80 0.00 0.09 9.89 -90.11 0.00 100

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).

33

2.2 Horizontal Analysis

Trend Analysis, also called Horizontal Analysis of the financial statements is one directionalupward 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 IN % ASSETS NON CURRENT ASSETS 102. PRORETY,PLANT & EQUIPMENT INTENGIBLE ASSETS WORK IN PROGRESS ( HOUSING) 82.57 LAND AND DEVELOPMENT COST OF HOUSING SCHEMES INVESTMENT IN OPF GIRLS COLLEGE 124.57 100.00 102.14 72 116. 43 100. 69 100. 00 100 100 100 100 100 2008 IN % 2007 IN %

34

98. LONG TERM INVESTMENT INVESMENT IN SUBSIDIARY LONG TERM LOANS ADVANCES DEPOSITS CURRENT ASSETS 83. STORES LOANS AND ADVANCES, OTHER RECIVABLES, PRE PAYMENTS & ACCRUED INTEREST SHORT TERM INVESTMENTS TAXATION RECOVERABLE CASH AND BANK BALANCES 109.06 178.26 110.08 219.12 333.12 64 141. 82 105. 89 164. 03 85. 85 100 100 100 100 100 96.35 100.00 157.04 48 100. 00 131. 96 100 100 100

35

LIABILITIES FUND AND RESERVE

2009 IN %

2008 IN %

2007 IN %

132.1 WELFARE FUND 6 100.0 CAPITAL RESERVE 0 SPECIAL RESERVE (UNCC) EXCHANGE FLUCTUATION RESERVE 6 INTEREST ON UNCC DISBURSMENT BANK ACCOUNT REVALUATION RESERVE NON CURRENT LIABILITIES 8 119.7 8 9 0 100.0 6 104.6 0 1

123.6 100 100.0 100 100.0 100 103.0 100 136.2 100

99.4 ADVANCES RECEIVED FROM PLOTS PROGRESS BILLING-HOUSING SCHEMES EMPLOYEES COMPENSATED ABSENCE DEFFERED TAXATION CURRENT LIABILITIES 134.4 TRADE AND OTHER PAYABLES PROVISION FOR TAXATION 2 6.3 8 6 9 114.7 100 91.0 100 7 0 145.3 0 100 100 106.1 100 100

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 36

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 HOUSING DIVISION WELFARE DIVISION TRAINNING DIVISION EDUCATION DIVISION PUBLICITY AND MARKETING CELL SERVICE CHARGES- UNCC OTHER INCOME EXPENSES HOUSING DIVISION WELFARE DIVISION 186.34 36.84 112.18 20.27 112.32 50.07 24.05 132.62 180.77 60.52 158.25 63.76 96.12 54.92 42.65 130.67 100 100 100 100 100 100 100 100

129.76 98.72

93.79 143.74

100 100

37

TRAINING DIVISION EDUCATION DIVISION PUBLICITY AND MARKETING CELL ADMINISTRATIVE EXPENSIS PROVISION FOR EARNED LEAVES PROVISION FOR GRATUITY FUND DEFICIT FROM OPERATIONS PROFIT OF HOUSING SCHEMES OTHER EXPENSES DEFICIT BEFORE TAXATION PROVISION FOR TAXATION CURRENT DEFERRED DEFICIT AFTER TAXATION

53.39 120.61 179.08 121.26 -52.05 47.04 -48.83 7.77 -24.96

112.48 105.93 127.92 106.55 -36.74 47.04 -39.69 62.23 -5.49

100 100 100 100 100 100 100 100 100 100 100 100 100

Reference: (See Appendix 3)

Interpretation The 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).

38

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. 39

 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 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. increase the members (Overseas

2. PEST Analysis
PEST is the Acronym for: P- Political E- Economical S- Social 40

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 the economic 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.

41

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

42

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

43

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.

44

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 appoint employees. The main cause is management and political pressure. There is no concept to 45

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 the departments 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 46

Annexure/Appendices

Appendix-1 Type Of Plan Contribution(Rs) Period Contribution OF Maturity After Expected Payment Maturity(Rs)/ PM Pension On

Plan - A
A-01 A-02 A-03 120000 120000 120000 24000 24000 LUMP SUM LUMP SUM LUMP SUM 5 years 10 years 15 years 1541 2482 3997 3355 6689

Plan - B
B-01 B-02 Per Annum For 10 years 10 Years Per Annum For 15 years 15 years Credit to members @ 10% per annum net of all costs 47

Reference: -Admin record & www.opf.org.pk

Appendix-2 OVERSEAS PAKISTANIS FOUNDATION BALANCE SHEET AS AT 30 JUNE 2008 & 2009

ASSETS NON CURRENT ASSETS PRORETY,PLANT & EQUIPMENT INTENGIBLE ASSETS WORK IN PROGRESS ( HOUSING) LAND AND DEVELOPMENT COST OF HOUSING SCHEMES INVESTMENT IN OPF GIRLS COLLEGE LONG TERM INVESTMENT INVESMENT IN SUBSIDIARY LONG TERM LOANS ADVANCES LONG TERM DEPOSITS CURRENT ASSETS STORES LOANS AND ADVANCES SHORT TERM PAYMENTS

2009 RUPEES

2008 RUPEES

216,924,683 1,213,868 898,105,000 87,647,127 929,472,563 110,200 112,062,739 1,064,995

219,381,239 1,095,232,336 87,647,127 950,003,849 110,200 93,103,741 1,061,311

1,763,299 30,886,754 20,063,027

1,352,177 25,376,428 20,473,764

48

ACCRUED INTEREST OTHER RECIVABLES SHORT TERM INVESTMENTS TAXATION RECOVERABLE CASH AND BANK BALANCES TOTAL

70,562,408 156,246,909 1,180,089,185 79,005,227 139,143,306 3,924,361,290

49,986,733 125,131,218 1,135,093,218 59,141,265 35,861,176 3,898,955,782

FUND AND LIABILITIES FUND AND RESERVE WELFARE FUND CAPITAL RESERVE SPECIAL RESERVE (UNCC) EXCHANGE FLUCTUATION RESERVE INTEREST ON UNCC DISBURSMENT BANK ACCOUNT REVALUATION RESERVE NON CURRENT LIABILITIES ADVANCES RECEIVED FROM PLOTS PROGRESS BILLING-HOUSING SCHEMES EMPLOYEES COMPENSATED ABSENCE DEFFERED TAXATION CURRENT LIABILITIES TRADE AND OTHER PAYABLES PROVISION FOR TAXATION TOTAL

2009 RUPEES

2008 RUPEES

2,486,946,553 156,250 8,648,754 465,850,556 13,277,906

2,326,060,387 156,250 8,648,754 458,367,711 15,107,777

747,879,505 32,185,913 26,582,906 -

941,290,851 22,139,966 -

141,074,658 1,758,289 3,924,361,290

95,593,633 31,590,453 3,898,955,782

49

Appendix-3 OVERSEAS PAKISTANIS FOUNDATION REVENUE AND EXPENDITURE ACCOUNT AS AT 30 JUNE 2008 & 2009
2009 Rupees REVENUE INTEREST ON WELFARE FUND BANK DEPOSITS HOUSING DIVISION WELFARE DIVISION TRAINNING DIVISION EDUCATION DIVISION PUBLICITY AND MARKETING CELL SERVICE CHARGES- UNCC OTHER INCOME EXPENSES HOUSING DIVISION WELFARE DIVISION TRAINING DIVISION EDUCATION DIVISION PUBLICITY AND MARKETING CELL ADMINISTRATIVE EXPENSIS PROVISION FOR EARNED LEAVES PROVISION FOR GRATUITY FUND 14,628,433 42,552,906 5,318,970 133,720,047 7,224,776 143867140 15413000 32,510,084 395,235,356 DEFICIT FROM OPERATIONS PROFIT OF HOUSING SCHEMES OTHER EXPENSES DEFICIT BEFORE TAXATION PROVISION FOR TAXATION (51,419,984) 3,213,153 (15,000) (48,221,831) 10,572,849 61,958,838 11,205,375 117,438,573 5,160,605 126,416,981 6,342,848 5,185,586 344,281,655 (1,654,237) (15,000) (1,669,237) 203,981,761 64,611 1,565,400 122,534 107,705,069 195,997 597,617 29,582,383 343,815,372 197,886,619 10,016,149 2,208,217 385,320 92,170,858 214,955 10,598,768 29,146,532 342,627,418 2008 Rupees

50

CURRENT DEFERRED DEFICIT AFTER TAXATION

1,899,154 26,582,906 (76,703,891)

15,216,843 (16,886,080)

51