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From 1st August, 2019 to 16th August, 2019 , I got training in different departments of Finance
Directorate MEPCO Multan. The detail of the department is narrated below:
2. Establishment Cell
Budget means” the expected Revenues and Expenses for specific period”. Budget making
is very effective tool for the management to run its operations smoothly.
This section is all about the budget control and for corporate planning. This section deals
with preparation of the budget of each office/ division of the company. After approval of the
budget the funds are issued to each office according to their budget requirement. In this
section I learnt that how the budget is allocated to all the offices of MEPCO. Company’s
business year starts from 1st of July and ends on 30th June of next year. Budget deals with
the allocation of resources according to needs of offices, and it is issued up to January.
Corporate planning deals with any kind of purchasing for the company.
2. Capital budget.
1. Operating Budget:
Operating budget consist of the following types of budget.
1.1- Operating Expense Budget
1.2- Operating Revenue Budget
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Third Fortnight Report Multan Electric Power Supply Company
1.1.2- Maintenance
1.1.1- General Establishment
General Establishment consist of the following:
Salary ( Pay and allowance)
Free electricity supply
Medical free supply
Office expense
Telephone bills
Gas bills
Travelling Allowance bills
1.1.2- Maintenance
Maintenance consist of the following:
Insurance
Vehicle expense
Repair and Maintenance of building
Line Maintenance
2- Capital Budget
Its utilization is more than one year. Estimation should be based upon genuine requirement of capital
expenditure like furniture & fixture and computer. This section is so much importance because of its
working scope.
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Third Fortnight Report Multan Electric Power Supply Company
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Third Fortnight Report Multan Electric Power Supply Company
2- Establishment Cell
The main working of this section is also to pre-audit. In this section pre-audit of internal activities is
done. In start there was only one section for pre-audit of internal as well as external activities, later
company divided this section into two sections. And now both the sections work accordingly.
In establishment section record all benefits and expenses of employees and also check all the claims
of employees in this section.
Same rule applies to medical allowances. If the employee lives in the residential area under
MEPCO, or the company pays rent of house where the employee live, in these cases he is not
eligible to claim any accommodation allowances. If the company provides medical facilities to their
employees then they also cannot claim any medical allowances. In case of petty expenses paid by
employee, he/she can claim with providing proofs like; payment bill, or any other authenticated
document which shows that the employee really paid the expenses from his own pocket.
For these claims voucher is made and comes in this (establishment) section for pre-audit. After
completing the pre-audit process, this section sends that statement for approval from finance
director. Employee is issued his claimed salary, allowances, and other expenses paid by him after
approval. It is not necessary that he gets full amount of claim what he has mentioned in his claim. It
depends on the approval from the authority how much he approves the claims of employees.
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Third Fortnight Report Multan Electric Power Supply Company
After check the claims the voucher transfer to the payment section, then payment section ready
cheques and one copy kept there and other copy send to the cashier. Claims more than 50000/- are
passed for payment by Deputy Director and forward to the relevant sections i.e. audit, payment and
banking for approval of demand.
The procedures of all claims are as follows:
All claims received
Make entry in receipt register
Handling over claims to respective officer
Checking, applying rates, watching allocated budget make entry in a relevant register and fill
up the claim.
Then hand over the all claims to Account Officer for double checking
Claims are 50000/- are passed for payment
This is the main working of establishment. This section is only responsible and able to pre-audit of
internal matters and is not concerned about the pre-audit of payments to outsiders or third parties.
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