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Structure And Function Of
Finance Department
Presenter: Syed Muhammad Azeem
Financial Management Financial Management means
planning, organizing, directing and controlling the financial
activities such as procurement and utilization of funds of the
enterprise.
Functions Of Financial Management
• Estimation of capital requirements• Determination of capital
composition• Choice of sources of funds• Investment of funds• Disposal of surplus• Cash management and control
State Bank Of Pakistan
• The State Bank of Pakistan (SBP) is the central bank of Pakistan.
• Founded In 1948 • The headquarters are located in the
financial capital of Pakistan, Karachi with its second headquarters in the capital, Islamabad.
Finance department of SBP
Financial Accounts Division (FAD)•Preparation of annual financial statements.•Weekly statement of affairs to be published in govt. gazette. •Quarterly Profit updates to the board of directors.
FAD (Cont.)• To provide information for
informed decision making.• Preparation of daily balance
position and communicating to federal division and provincial finance department.
• Consolidation of all departmental budgets.
Forex, Securities and investment division
• Maintenance and record of cash reserve requirement.
• Fcy payments of Govt. and SBP.• Maintenance and revaluation of
fcy assets and liabilities.• Revaluation of IMF Loans
System And Procedure Division
• Representing finance department in various automation projects.
• It recommends continuous business process refinement.
• Participates in automated system development/Implementation.
Payment Controller Division
• Payments to external suppliers and to the employees.
• Checking and verifying selected transactions/cases referred by director finance.
Asset Management Division• Keeping track of physical location of
assets.• Maintaining financial information of
assets.• Ensure smooth running of fixed asset
management function.• To record all expenses regarding
repair/ maintenance and taxes for SBP building and Equipment.
Currency management Division
• Policy making and currency management includes Designing, Printing and issuance of Notes.
• Preparation of balance sheet of “issuance department” at fiscal year end.
• Issuance of statement of affair of “issuance department” on weekly, Monthly or quarterly basis.
Support services division• Deals with administrative problems in
Finance department.• Develops healthy environment in
finance department. • Dissemination of any revision in law,
policy and regulation matters to concerned division.
SWOT Analysis
Strengths• It is state bank.• Strong internal control.• Formalization and simple
structure.
Weakness• Lacks IT advancement.• Less training programs.• Not adopting latest
practices.
Opportunities• Can attract best talent.• Can adopt latest IT
programs to Enhance speed and efficiency.
Threats• Political instability.• Excessive govt.
borrowings.
Recommendations
• Latest version of Globus and Oracle should be used.
• Training sessions should be increased.
• Finance department should adopt latest practices to cope with challenges.