Accounts Department is responsible for the entire financial affairs of Myanma Port Authority.
• Financial Accounts of Myanma Port Authority.
• Ship owners' Accounts.
Financial Management of Ports
The Task of management is to:
(1) Set aims and objectives (5) Co –ordinate
(2) Plan (6) Control
(3) Initiate (7) Measure
(4) Communicate (8) Assess
(9) Re-plan of necessary
In order to carry out these duties ,and achieve the objectives set for the port , managers must plan for the future and not respond solely to events as they occur . They must be creative in approach , identify opportunities well in advance and so react in a way most beneficial to the port and the community .
Financial planning for the future can be divided into three main areas :
1 ) Short –term profit planning –usually for one year ahead – the Revenue Budget .
2) Long - term planning , perhaps covering 10 or 15 years , including the construction and
purchase of capital or major assets –capital budgeting.
3) Cash budgeting , which involves scheduling future inflows and outflows of cash arising from
(1) and (2) above as well as the borrowing and repayment of loans , sale of major assets etc.
in the following pages we cover only the aspects of short - term profit planning and cash budgeting , as the long - term planning is comprehensively discussed in other UNCTAD publications.
Profit planning over a number of years can be scheduled in such a manner that , for example , in a five - year budget , as each separate year passes , that year is dropped from the budget , year number 5 becomes year number 4 , and another budget year ,year 6 ,enters the schedule as year 5 . This is called a rolling budget.
The annual revenue budget
The annual profit or revenue budget for a 12- month period, starting perhaps on 1 January, must be based on a traffic forecast provided by the commercial department. Such a forecast should indicate the most likely pattern of trade and list which commodities are expected to pass through the port, when the could arrive, and whether they will be import, export or coastwise traffic. This information assists the harbour master in consultation with the cargo handling manager to draw up his berthing schedules. The commercial department (sometimes called the marketing department) should complete its forecasts by the end of the August prior to the budget year. Information is usually compiled from port records which cover the traffic trends for the last few years , together with any information obtainable from governments, trade associations, foreign trade missions, economists etc. The marketing department should not shirk responsibility for providing as accurate a forecast as is possible, but cannot be held responsible for changes in the pattern of trade outside its control. A poor harvest, a cold winter, or an economic depression could make nonsense of such forecasts. Due allowance should be given for such events should they occur, when comparing budgeted traffic with actual traffic. Nevertheless, should an anticipated traffic fail to materialize, the task must be to replace it with another.
From the marketing department’s traffic forecast, which should specify commodities, tariffs, quantities, and the time expected at the port, the revenue Budget of the port can be compiled. The First Step is to lay the trade forecast before the budget committee. This committee, which should comprise individuals drawn from the different function of the port –conservancy, marketing , engineering , cargo handling , administration , etc . -is presided over by a chairman and serviced by the committee secretary. The committee would include the management accountant, Whose task it is to collate, publish and explain the regular budget reports. The traffic forecasts indicate the facilities required to handle the cargoes and the area of the port (cost centre) best suited for this task. They indicate the level of costs and expenses management must expect to meet during the coming year.
Where standard costs have been computed for classes or groups of cargoes, these greatly assist in calculating the total resources needed to service the traffic. As already noted in all but purpose built, one commodity ports eg; oil terminals, traffic usually consists of many different cargoes and is consequently handled in different parts of the port i.e. different income/ cost centres, With the forecasts before them, the budget committee would allocate the traffic over the various sections of the port. The officers in charge of these centres then assess the resources they can command against the traffic they are expected to handle. The resources may or may not be adequate. At this point the person responsible for servicing the trade will itemise the assets required to accomplish his part of the work. This is the first step in preparing the annual revenue budget. The income arising from this traffic will be calculated of by the marketing department. Each productive/ cost centre of the port scheduled to handle the cargo, having reviewed its resources and drawn up its own budget in physical terms, then requires the management accountant and his staff to translate this into financial terms. These preliminary budgets are sent to the budget committee for discussion and assessment, preferably before the end of September. The centres concerned with the traffic forecasts are operating and income producting sections of the port. Their income reflects the volume of traffic multiplied by the tariff rates. Their expenditure is partly fixed, because of minimum staff levels and assets required, and partly variable, in respect of costs related to tonnage throughput and wage rates.
In addition to these are the service centres - or cost centres - whose task it is to provide the services required for the port to operate Effectively.
Administration and engineering (mechanical, civil and electrical ) are the two largest services centres without which the port could not operate and these are responsible for a high proportion of the total costs of the organization. These departments submit their budgets along with the income/operating sections. Unlike income / operating budgets, which tend to rise or fall with the volume of traffic, the call of service centres upon resources trends to remain reasonably stable in the short term. But it is obvious that a rise in the general level of prices might result in a much bigger financial budget than that of the previous years , so the budget for all the separate section of the port will respond differently to the traffic forecast according to whether they are income earning or service departments.
Organization of Accounts Department
Accounts Department consists of four Divisions as follows.
• Planning and Budget Division.
• Ledger and Accounts Division .
• Bills Receivable Division.
• Agency Accounts Division.
Planning and Budget Division
The followings are the responsibilities of Planning and Budget Division.
• Budgeting and forecasting of long term and short term plan.
• Preparing of Capital Expenditure Budget,Current Expenditure Budget, Appropriation of Budget and Surrendering of Budget annually.
• Preparing of Financial statements and Reporting.
• Maintaining the Fixed Assets Register.
• Maintaining the Cargo throughputs statistics data.
• Maintaining Navigational and Passengers statistics data.
• Preparing of Out Ports budget estimates and revised budget estimates
• Taking action on audit reports of the Office of the Auditor General.
Ledger and Accounts Division
These are the responsibilities of the Ledger and Accounts Division.
• Making receipt and payment of cash transaction and dealing with Myanma Economic Bank.
• Making receipt and payment of foreign currency transaction and dealing with Myanma Foreign Trade Bank.
• Maintaining the Income and Expenditure Ledger.
• Controlling the Fund of Current and Capital Expenditure.
• Maintaining the Suspense Ledger & Fixed Assets Ledger.
• Controlling of Advanced payment.
• Preparing of Cost Accounting.
• Controlling of Outside Party Job Accounts.
• Controlling of Store Accounts.
• Preparing of Ledgers for the Out Ports.
• Preparing of Monthly Trial Balance.
• Preparing of Weekly , Monthly ,Quarterly and Annual Reports.
• Administrating the staff of Accounts Department.
Bills Receivable Division
Bills Receivable Division is taking the following responsibilities.
• Calculating and Issuing the Combined Bill of Port Dues Charges, Pilotage Charges,Berthing Charges, Mooring Charges, Ship Hiring Charges, Stevedoring Charges etc. and Controlling Debtors Account.
• Controlling the income of Land rent, Building rent, Warehouse rent, Shop house rent, Buoy hiring charges, Electricity charges , Sales of fresh water and other receivable Accounts.
• Maintaining the income received by Challan.
• Controlling the Deposit accounts.
Agency Accounts Division
The responsibilities of the Agency Accounts Division are as follows.
• Checking and Disbursing the expenditure of vessels on behalf of ship owners.
• Controlling the Ship owners' Deposit Accounts and reconcile with ship owners.
• Checking the fund, making the repatriation of surplus fund to ship owners.
• Dealing with Myanma Economic Bank and Myanma Foreign Trade Bank on behalf of ship owners .
• Preparing the Disbursement Accounts and General Accounts for ship owners.
Receiving the Port Charges by Challan
The following Cash Receipt Counters will be opened from 9:30 am to 15:30 pm during office hours.
• Cash Receipt Counter at Shipping Agency Department will be opened for receiving Port Charges for those who make stevedoring at Myanmar International Terminals Thilawa’s Ports, Myanmar Integrated Port Limited ports, Myanmar Oil and Gas Enterprise Ports and Bo Aung Kyaw Wharf No.(1), No.(2), No.(3) .
• Cash Receipt Counter at Sule Wharf No.(3) will be opened for receiving Port Charges for those who make loading/unloading at Sule Wharf No.(1) to No.(7), Myanmar Industrial Ports and Asia World Port Terminals .
• Cash Receipt Counter at the Accounts Department of Myanma Port Authority Head Office will be opened for receiving the port charges of seagoing vessels, the port charges of depositors, and other receipt and payment transactions.
Remark : In case for the convenience of making payment for Port Charges on holidays, one can deal with Cashier of Accounts Department at Sule gate No.(5) from 09:30 to 12:00 on holidays.