LETTER FROM THE MCVP F&L HISTORY: HOW THE NETWORK WAS RECEIVED LEGACY: HOW THE NETWORK IS DELIVERED • HOW THIS HAPPENED
INCOME EVALUATION • PLANNED VS EXECUTED EXPENSES EVALUATION • PLANNED VS EXECUTED AIESEC GUATEMALA ACCOUNTS • LOCAL ENTITIES ACCOUNTS F&L ADVANCES AND ACTIVITIES LEGAL STATUS
Along this journey of being Vicepresident of Finance and Legality in AIESEC for Guatemala, all ends with so much things learned and so much to tell in the future written by us, the members. I, as a member of the organization, urge you to continue taking challenges within it, to challenge yourself daily and achieve the best version for yourself and be the leader that Guatemala deserves. I appreciate your unconditional support, your friendship and above all, the willingness to dare to develop from finance and I am grateful for all the experiences lived in this role. AIESECly yours,
At the time of starting the management as MCVP F & L, there were no clear roles in finance at the local level, there was only one VP in the URL committee and three committees with accumulated debts from previous years. Always the focus project was to ensure the sustainability of the entity through the income of the Global Talent product, as it had been doing in previous efforts. The product focus on the local committees is Global Volunteer and for the income that the product is generally the indicator of financial sustainability.
It began focusing on the alignment of financial standards, where there are clear criteria for the entity and guarantee the ability to operate in 6 specific objectives: Legality, Accounting, Reportability, Budget and projection, Audits, Sustainability. Based on the aforementioned 6 objectives, all legality points were executed, which allows us to operate in Guatemala as a non-profit organization, the budget approved by the national assembly was executed, registration and control of all the national and local movements that guarantee the transparency of the donations we receive and the operating costs, was reported monthly to the Global Finance Board to meet the criteria of Full Member, audits were carried out from the local offices to guarantee the legality of each one. the experiences and continues working with sustainability criteria. Thanks to the implementation of the 6 objectives, two committees are delivered at the end of the administration with sufficient funds that guarantee the financial independence of the operations that run by product.
Revenues plan were made based on the needs of the entity's financial sustainability. Then you can find them in graphics and numbers.
Revenues were made based on the needs of the entity's financial sustainability. Then you can find them in graphics and numbers.
For incomes details, link to Cash Flow of AIESEC Guatemala: http://bit.ly/CashFlowGuatemala1718
Here you can find the graphic of the behavior of the revenues of AIESEC in Guatemala along the 2017.2 and 2018.1 of the term.
REVENUES PLAN VS DONE PLAN
DONE
350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 Q1
Q2
Q3
Q4
It is worth noting that there is still unrecognized income within the IGT product collection processes that add up to a gross amount of Q 781,558.03 which will continue to be worked on by the 1819 Member Committee.
Here you can find the graphic of the behavior of the revenues of AIESEC in Guatemala along the 2017.2 and 2018.1 of the term. 9% 0% 5% 2% 0%
84%
Direct Exchange Income
Income from Partners & Enablers
Project Income
Entity Affiliation Income
Sponsorships and Donations
Other Income
TOTAL A B C D E F
Direct Exchange Income
84%
Q476,189.74
Income from Partners & Enablers
0%
Q2,804.80
Project Income
2%
Q12,626.50
Entity Affiliation Income
5%
Q25,600.00
Sponsorships and Donations
0%
Q0.00
Other Income
9%
Q49,470.90
TOTAL INCOMES
Q566,691.94
Direct Exchange Income iGV iGT oGV oGET
Q476,189.74 Q12,042.50 Q299,861.33 Q159,165.91 Q5,120.00
3% 63% 33% 1%
The costs incurred in the management are based on boosting revenues by product, as our costs are divided by variable costs focused on products and fixed costs in the investment of the national office and the team that works within it.
To see the Last AIESEC Guatemala Budget, approved by General Assembly on Aug 27st 2017, see link: http://bit.ly/BugetAIESECGT1718
Here you can find the executed expenses, the main investments were for GV products with the funds provided by Global Talent.
The main challenge in the term for smart investments was the ability to execute the budget aligned to strategies that would represent a tangible return on investment, the alignment of work corners for the execution of projects focused on growth occurred as of February, but the investments still did not represent the full amount planned for to be able to grow
EXPENSES PLAN VS DONE Plan
Done
350000 300000 250000
200000 150000 100000 50000 0 Q1
Q2
Q3
Q4
0% 1%
10% 2% 0%
33% 18%
36% Direct Exchange Costs
Functional Summits and LC Education
Project Income
Conferences & Meetings
HR Costs
OFFICE AND FLAT COSTS
Entity Affiliation Fee
Other expenses - Non Budget
TOTAL A B C D
Direct Exchange Costs Functional Summits and LC Education Project Income Conferences & Meetings Overhead Costs
E F G H
10%
6202412%
2%
1418014%
0%
0%
19% 11876840% 69%
43730555%
Direct Exchange Costs
iGV
Q6,081.27
15%
Q9,436.27
75% Q46,506.58
HR Costs
36% 22866071%
iGT
OFFICE AND FLAT COSTS
33% 20864484%
oGV
Entity Affiliation Fee
1%
414750%
Other expenses - Non Budget
0%
157940%
TOTAL COSTS
Q638,005.11
Q62,024.12
10%
oGT
0%
Q0.00
The local entities are defined based on the organizational development model, they must comply in their structure for the expansion of financial managers and for the local committees vice-presidents of the area with a focused role to be able to direct the investments and manage their resources in a way that the return on investment is the growth in the criteria of the model. The finances specifically of the expansions are managed by the national executive board in order to generate national strategies that can generate greater impact. For the following management, it is recommended to establish a specific financial model to define when it is a sustainable expansion by its own means and that it has the capacity to grow in all organizational health criteria. Below you will find the financial situation of each of the committees that correspond since the close of July 31, 2018.
Committee
Amount of money to invest.
URL
Q. 15,865.86
USAC
Q. 14,449.88
 The main financial processes in this management were based on guaranteeing the sustainability of the entity through the income of the Global Talent product. Another approach that was worked together with the membership was the implementation of reporting tools for alignment in financial standards. Although not all the standards were implemented at the local level, it remains in the process of continuing with the incoming management.  The processes of software innovation and means of payment were also carried out. The accounting can be handled through quickbooks making monthly reports exist more aligned to clear information and reduce the use of manual tools.  The payment methods were tried to diversify and third parties so as to be able to manage a faster decision making by our consumer, managing the packaging of our experiences and achieving promoters of the same. The project was tried to take with VISA and is being followed up with the advising accountant to our organization.
 Corresponding to the legality of AIESEC in Guatemala, we comply with the criteria of Non-Governmental Organization before the entities of the Government of Guatemala, the Tax Administration System, the trademark rights and the most important, meet the criteria of legal representation to guarantee the legality of all our operations.  Regarding the process of visa and legal advice, we have two law firms that help us in the legal processes that we must follow specifically in immigration processes and processes of change of legal representation.
My recommendations as Vice President of finance and legality of AIESEC in Guatemala, are the following: 1. That the focus of development be local focused on the guidelines of the organizational development model, guarantee the education of the financiers and push the decision-making based on return of investment and at the end of the management deliver local committees with sustainability level number two in all its products. 2. Work hand in hand with accounting advice and the staff we have since May, since this will ensure a flow of operations more transparent and easy to carry month after month. 3. Focus on the product focus, in this case Global Talent given that they are the income that the entity maintains. 4. Evolution of the financial model and that this is a jump to stable financial committees with investment capacity to the costs of the national entity. 5. It is essential to comply with the full member criteria and the monthly GFB reportability is part of the process. Guatemala at this time is not a full member in the international assembly, so it should focus on recovering the IPM status of the next term.
Member Committee Vice President 17-18 AIESEC en Guatemala ilsee.castillo@aiesec.net