GEPCO:Introduction:GEPCO establish in 1998 under company's ordinance 1984. There are 60 units of GEPCO. It is a power supply company. It encompassed the areas of existing Districts of Gujranwala Hafizabad Sialkot Narowal Gujarat Mandi Bahauddin. It is the part of distribution network of NTDC (National Transmission & Dispatch Company (NTDC) Limited). NTDC distribution network:National Transmission & Dispatch Company (NTDC) Limited has distribution network which includes 11 companies.CompaniesCity nameProvince

LESCOLahorePunjab

GEPCOGujranwala.

IESCOIslamabad.

FESCOFaisalabad.

MEPCOMultan.

KESCOKarachiSind

HESCOHyderabad.

SEPCOSakkhar.

QESCOQuettaBaluchistan

TESCOTribal AreaKPK

PESCOPeshawar.

Departments of GEPCO:The main departments of GEPCO are as follows,1. Finance department2. Customer Support Department3. Purchase Department4. Internal Audit Department5. Operation Department6. Human Resources Department7. Legal DepartmentMain functions of departments:Finance department:Control all functions related the finance Customer support department:It is the debtor /account receivable section. It controls over billingPurchase department:It includes all functions related the purchases such as meter and transformer.Internal audit department:It includes audit functions.Operation department:It includes the functions of supply of electricity.Human resources department:There is no basic HR department but it performs the functions of hiring the new employees.Legal department:It performs the activity related the legal cases.Board of directors:There are 11 members of board of directors in GEPCO which are appointed by the Government.All departments complaints are reported to CEO.Hierarchy of finance department:

18 Grades 19 Grades

Functions of grade 18:1. Deputy Manager (General Account and Financial Reporting):Consolidation:It includes all accounts/ trails/ sales of all 60 units of GEPCO.Asset:Fixed assets register /maintainIOT (inter office transaction):Handle the cases of transaction related the units/ branches of GEPCOReceivable and payable section:Handle the cases of transaction related the units/ branches of WAPDA with in Pakistan.2. Deputy manager (Payment and Admin):He performs functions related the pension, payment (periodically, cashier, admin, salary).3. Deputy manager (CPC):He performs the functions related the costing, budgeting, capital expenditure, operational expenditure, loan management (loan calculation, markup of loan, repayment of loan), Tariff (related the billing) and fund releasing.In these Tariff is a important function.4. Deputy manager (Banking and Taxation):It performs two types of functions.

CPC Section:At the start of next financial year decisions relating to budgeting. Operational and capital expenditure are made.Budgeting:Normally on the basis of previous 2 or 3 year expenses estimation is made for current budget and then transferred to relate to providences then finalize the tariff quotation. Budget is approved by NEPRA (National Electrical Power Regulatory Authority).Capital expenditure to update the system capital budgeting is done every year with condition and planning of coordination department.It generally includes: New electrical units AMR meters Upgrade lines and system Mew transformer MeterThen it is passed on to the NEPRAIf the project is big than needs more funds and needs capital budgeting.Own Sourcing:Own funds or have to take loan.Loan Calculation: Follow up of loan Markup payment Need of loan Repayment of loanAll are covered under this head of loan calculations.Reporting:All the issues are reported to NEPRA by CPC sections.These issues involves Finance issues Accounts issuesRelending:Loan from Asian development Bank to Government and Government to WAPDA at the high rateOperational Expenditures:These includes, Salaries and wages Repairing expendituresTariff petition:It is a per unit rate of electricityFrame work provided by NEPRA is followed fill the form of NEPRA and follow the direction of NEPRA for tariffWAPDA file the quotation of tariff on the basis of Estimation of units Cost of electricitySubsidies:The NEPRA finalize tariff and this is determined by considering by subsidies by government.Example:Determined rate is 13 the government gives instruction that the rate should be 11 per unit and the difference of 2 is subsidy by government.

Per Unit decided by GovtPer Unit decided by GEPCO

1113

2 RS is subsidy

Operational budget: Cash budget Sale budget Electricity costBudgeting is transfer to all heads: Salary Travelling allowance

Rolling budget:Update budget every monthAdjust budget with actual budget

Flexible budget: Changeable budget Can change expensesChangeable budget according to decided standardFlexible budget on excel model

DemandAndReleaseFunction:

Demand and release function:When any office demands funds for any expense from GEPCO and GEPCO gives approval only after pre audit of activity.The demand is match with the budget, if the amount of demand is low than the budget then it is passed.Pre Audit:Audit before performing any activity is called as pre audit.Post audit:Audit after performing any activity is called as the post audit.Steps of demand:

In this there is written the demand values.SUBJECT: APPROVEL FOR RETENTION OF FUNDSWORTH RS. FROM GEPCOThis office is in receipt of additional fund demands as per detail given here under:

AMOUNT. .BANK .DETAIL OF ADDITIONAL FUND DEMANDNAME OF OFFICE DEMAND NO.&DT S. NO. .

In this there is written the demand values.

Nature of demandIt is written in demand record with stamp.It is mentioned in demand record.Sr. No. Is always 1

In this there is written the demand values.

RS. TOTAL: The chief executive GEPCO may please be approach to accord approval for retention of RS. From GEPCO Revenue collection main account to general account to meet with the expenses against the above stated demands.

Approved from himASSTT. MANSGER (CPC)

Approved from himDY. MANAGER (CPC)

Approved from himFINANCE DIRECTOR

Approved from himCHIEF EXECUTIVE OFFICER (GEPCO

IOT (Inter office transaction)

IOT (Inter Office Transaction):There are 60 units of GEPCO.R.O offices (Revenue) + XEN offices (material)Total accounts 63 or 64 after including R.O & XEN.Type of advices:

Steps of IOT: First of all advices are made in this section. For this purpose we enter the total amount of every unit in excel and enter the registration number. After this advices are automatically made. There are taken out prints and approve these advices. The debit and credit account of every unit is clarified. There are posting of ledger of all advices and accounts.

ReceivableAndPayable:

Receivable and payable:In this section there is involved the transaction with other distribution companies such as LEPCO or MEPCO.The transaction is recording with the different types of companies in this section such as 9 distribution companies 4 generation companies 1 NTDC (national transmission and dispatch companies) 1MF treasury (management finance) WAPDAMain function of receivable and payable:In this section there is recording of transaction of the free supply and other recording of the transaction which is given from the other companies.Example:An employee of GEPCO wants to send his free supply to the LESCO due to his family then LESCO send the free supply on the behalf of GEPCO. In this section there are 82 to 85% transactions related to the free supply. Free supply:It is a core function of the receivable and payable.Facility of free units is provided to all employees is called as free supply. This facility is provided with the scale wise such as,ScaleFree units

1 to 4100 per month

5 to 10150 per month

11 to 15200 per month

16300 per month

17450 per month

18600 per month

19880 per month

201100 per month

211300 per month

All the employees can avail this facility anywhere in Pakistan except Karachi. Employee can consume all the units either in one month on in one year. T.V and Meter fees are not exempt for employees.Journal voucher:Creation of receivable and payable is called as journal voucher; this function is performed in this section on monthly basis.Example:If an employee of GEPCO takes loan from GEPCO and transferred to LESCO but is still liable to repay the loan then GEPCO debit that employees account and credit the LESCO account.1. Wrongly deposit:When one companys fund is wrongly transferred to other companys account then receivable and payable department adjust that wrong transaction.Example:If consumer of GEPCO submits the bill payment in LESCO account. At the end of month after checking account, it is shown that LESCO have more funds. Then LESCO credit GEPCO and GEPCO debit LESCO.2. Statement of account:After every quarter each companies issues statement of account to another company. Then reconciliations are made to tally accounts.These four functions are mainly performed by receivable and payable department. Distribution companies:These companies which purchase or supply electricity and receive bill payments. These are called DISCO.Generation companies:These companies produce electricity and are called producer or GENCO.These are follows

3. MF Treasury/CPPA:Central power purchasing agencyDistribution companies cannot directly purchase electricity from generation companies. So, they purchase from CPPA & CPPA from GENCO.

LESCOGEPCOMEPCOFESCOPESCOHESCOSEPCOTESCOISCOQESCO

CPPA issues invoices to distribution companies. These invoices include income tax.4. NTDC: National transmission and Dispatch Company All the decisions about the placement of grid, transformers and lines are related to this head.5. PEPCO: Pakistan electric power company This is the holding company of all and has controlling authority. Head of PEPCO is in Lahore.

Consolidation:

There are 60 units of GEPCO through which our financial statement will be completed.There are 5 circles in the electricity sales. It is an operation system, means through which we are earning money.Operational system:R.O.: keep billing record. All those customers who have complain then they go to the customer services and gives complain.GEPCOs debtors are their customer to whom we are billing. These come in revenue office.The division NO.1 and R.O.1 are maintaining the record and up to date the system Manager operation control all the activities. in the cant circle there is a operational manager cant. All the subdivisions and the divisions send money to head quarter together.Compile section:Convert trail; balance into the soft form. These trail balance get from the all accounting units or every circle. There are section codes from 0 to 9Section codeName

0Balance sheet

1Balance sheet

2Balance sheet

3Balance sheet

4Operating revenue

5Salary expenses

6Salary expenses

7Salary expenses

8Salary expenses

9Salary expenses

Note of account:Note of account includes working of the account. In every month quarterly the financial statement is made and analysis of this statement. Every record is maintained in the hard form because in this way it is consider a evidence.Working in consolidation:

Sir FaisalIn this section the monthly trail balance of every accountThen the posting of these account in excelAfter posting there is tally of accountThen notes of account are madeThen made p/L statement Then made balance sheet

Banking sector:

Core function: Collection money Calculation of money Reconciliation of statement Salary consume the remaining money give to WAPDACollection of money: