Financial and Legal Report 2012-13: Quarter 3 (Dec – Feb): Executive Summary Key achievements and strategy analysis
Project Description: Sustainable Financial Management of AI. Invest organizational resources towards AIESEC 2015 MoS achievement. Managing Legality of AI Impact on team purpose: Allow s AIESEC International to operate.
Budget – Quarter 3 Profit & Loss
Investments
Overall • € 13k surplus in quarter (total for Q1-Q3: € 44k) [Q2 and Q1 results adjusted down since last report] • Costs in line with budgets • Global Partner revenue is dropping from 12/24 months ago
Quarter investments made • € 10k EUR invested into reprogramming of back end and redesign of front end of aiesec.org for security purposes and brand/marketing purposes • € 7k Expansion CEED programme • € 8k Culture-Shock Phase 2
Cost control • Expense lines generally on budget • No unexpected costs in Q
Long term evolvements: • Delayed: Long term TCS contract (3 years) of yearly € 107k under negotiation for myaiesec.net System Development and. To be signed in May 2013 • AI new external auditor RSM Tempelman pending ratification by Global Plenary • Further investments in Matching menus as well as HR menus for myaiesec.net expected
Revenue and sales • Sales revenue € 18k above break-even budget for the quarter • Projected sales result € 85k above minimum budget (down from € 250k last year) • Projected revenue for 2013-14 with renegotiations of all partnerships currently at 93% of next years budget • This means that around € 40k must come from up sales or new sales to break even next financial year.
Cash and liquidity Corporate Receivables • € 57k as of 28.02.2013 (€ 0 older than 90 days) • AI no longer has old receivables after significant efforts over last 2 years Entities in debt: Ireland:€ 19,590 (Are repaying debt over time) UAE: € 12,983 (Long term concern over sustainability of entity) Rep. of Macedonia: € 675 (Long term concern over sustainability of entity) Botswana: €0 (are now debt free after repaying debts to Plenary) Cash flow: • € 146,000 positive cash flow Q3 – as predicted due to member fees • Net cash end of Q1: € 2m (includes Global Funds and AI investments and reserves) • Operational Reserves (end 11-12 fin year): € 1,171m (12 months operations)
Legal Update of AIESEC International Tax • •
No outstanding issues with Tax authorities Corporate Tax agreement process started with lawyers – initial phase.
Employment • All employees legally working and residing in the Netherlands • AI 13-14 team, registration process started Articles of Association • Re-legislated at IPM: New Articles of Association will be notarised in Netherlands in new Financial Year. Trademark • Some speed on trademark registration as Membership Critieria are under revision to make this absolute