Financial and Legal Report 2012-13: Quarter 1 (Jun – Sep): Executive Summary Budget – Quarter 1 Profit & Loss
Investments
Overall € 25k surplus in quarter Costs in line with budgets Global Partner revenue is healthy but down from 12 months ago
Quarter 1 investments made Strategic Project: Process Optimization - Better analysis menus for improved matching and supply and demand alignment: € 12k Business Development delivery (Y2B and partners’ dinner and corporate video): € 9,1 k Strategic Project: Online Presence and Engagement - PR/Marketing (student video): € 0.8k Strategic Project: Brand evolution – Redesign for visual brand elements: € 12k Global Strategy meetings [Brand, Talent Capacity, ER principles, Customer Experience Delivery GCDP, Steering Team]: € 15 k
Cost control Expense lines generally on budget External Audit will probably be an expense this year which will be taken from AI operational reserves (around € 15k), due to ending of sponsorship of service Few or no unexpected operational costs in the quarter Revenue and sales Sales revenue € 27k above break-even budget for the quarter Projected sales result € 100k above minimum budget (down from € 250k last year)
Upcoming: NPS phase 1 implementation: € 30 k Expansion investments: € 5-10k Long term evolvements: Under consideration renewal with TCS for myaiesec.net NPS Customer Feedback system in global budget around € 65k per year
Cash and liquidity
Legality of AIESEC International
Corporate Receivables € 187k as of 30.09.2012 (€ 69k older than 90 days) Heavily improved situation from 12 months ago – still a focus
Tax
Entities in debt: (payment over last 12 months compared to simulated year fee) Ireland:€ 20,590 (€ 5000 paid back; Simulated yearly fee € 5,596): 89% UAE: € 12,983 (€ 300 paid back; Simulated yearly fee € 4,223): 7% Botswana: € 2,865 (€ 1,400 paid back; Simulated yearly fee € 1,580): 88% Rep. of Macedonia: € 970 (€ 712 paid back; Simulated yearly fee € 1,394): 51% Cash flow: € 300,000 positive cash flow Q1 (mainly due to Member Committee Fees paid) Net cash end of Q1: € 2m (includes Global Funds and AI investments and reserves) Operational Reserves (end 11-12 financial year): € 1,171m (12 months operations)
No outstanding issues with Tax authorities We have just initiated inquiry with lawyers to establish corporate tax agreement
Employment No legality issues regarding employment All internationals have approved work permits, residency and social security (improved and faster process compared to previous years) Articles of Association To be re-legislated and approved at IPM 2013 to be in accordance with AIESEC Way – were on hold due to various tax and legality issues since IPM 2009 Trademark Global Trademark Survey shows large gaps in trademark registration of logo and name across the world Y2B trademark registration again a discussion on AI team would like repeated conversation with SG on it