AIESEC as an NPO
An NPO(not for profit organization) means an
organization where the additional profit is invested for the well being of the organization and not distributed as commission or dividend among the employees.
What is Finance?
Finance studies and addresses the ways in which individuals, organizations raise, allocate and use monetary resources over time, taking into account the risks
WHAT IS THE JOB ROLE OF A VICE PRESIDENT FINANCE
Vice President Finance Planning
Budgeting Contingency /Corpus Cash Flow
Operating Principles
Governance
Book Keeping
Payments & Receipts
Income & Expense Sheet
FSC
Audits Monthly Tally 5th
Recon Quarterly
Financial Education Finance Basics
Events & Project Finance
Management
Cash Flow
Bank Transactions
Accountability External Audits Investments
Price Structure
oGCDP
August 31st
General Model
Raise
3000
5000
Match
0
0
Realization
7000
5000
iGCDP
• TN:
Raise
0
Realization
3500
• EP 200$(Approx. Rs. 12000)
oGIP
Duration
2-3 months
3-12 months
12-16 months
Raise Realization
5000 7000
5000 10000
5000 13000
Total
12,000
15,000
18,000
iGIP
Duration
9-12 Months
12 or More
6000 13000
8000 16000
10000 16000
19000
24000
26000
1-3 Months 3-6 Months 6-9 Months
Raise Realization
3000 7000
Total
10000
4000 11000 15000
Reconciliation
Reconciliation or Recon in short is a fee that an LC pays which is a part of its inflow from an EP or TN to the MC for the services that they provide such as myaiesec.net, LC goal setting and servicing
New Financial Structure
CALCULATION
TOTAL EXCHANGES(Realizatio ns)of all 21 LCs (Per quarter)
TOTAL EXPENSES INCURRED BY THE MC (Investments made towards the welfare of the LC-50% share)
RECON PER EXCHANGE(per quarter)(PAID DURING REALIZATION)
300000
200000
100000
10000 10
16666.66667 Income
20 Recon
18750 30
AIESEC in Ahmedabad Finance State of Local Affairs
Financial Status: • Bank Balance as on 5th August’2013: 82,731 • Total outstanding's: Income: 12000(NEP), 7000(iGIP PDPU), 16000(iGIP raise) , 27500(PDPU iGCDP realization) • Expenses: 89500(Recon)+12000(maintainance)
Contribution Department wise for Debt Repayment 9250 24050
18500
133200
oGCDP
oGIP
iGCDP
iGIP
RECOVERY RATES 82.46753247
81.81818182
58.03571429 48.99103139
oGCDP
oGIP
iGCDP
iGIP
Inferences • Basic Processes Implemented • Recovery not up to mark due to Legal limitations • Lack of financial awareness within the LC • Bank Balance can manage around 70% of Outstanding Income • Less efficient implementation of financial Policy • iGIP outstanding cleared more than a month later than realization and forms being raised before collection of raise money from corporates and no certificates obtained for TDS.