ANALYSIS SWOT : FINANCE MANAGEMENT AT LOCAL LEVEL, NATIONAL LEVEL AND MC—LC RELATION

1. At local Level

Human talent has potential and is motivated

Talent capacity in almost all entities.

2. At National Level (MC)

Financial performance in terms of liquidity.

Budget execution tracking tool is well implented.

Administrative performance ( efficient response

MC—LC, Bancolombia partnership)

Smart and strategical investments

Leadership in terms of quality in education,

support by the NFT and tracking for the National

office

Sinergy with all areas in terms of tracking, strategy

definition, execution and investment.

1. At local Level

Improve the educational cicle with partners such as

Universtities and organizations

Take GCPs for others LCs

Product development through new alliances to

generate financial returns and growth in results

(Exchange)

Take adventage of BoA and GAL advice to

improve the financial performance.

Bussines Development and F&M Sinergy

2. At National Level (MC)

New partnerships that allow a financial growth and

administrative strengthening.

Financial cooperation with national entities and

goverment.

Knowledge cooperation.

1. At local Level

There is no process well defined ( optimization)

Information management is poor in term of accounting, budget execution and investments ( there is no traceability and efficient tools) there is no information on time.

Poor liquidity and financial execution according with the results on exchange and operations. (financial risk).

There is no a risk plan for each entity and program or product

Audit tracking process are not well implemented

Local financial culture does not exist in the majority of entities.

Lack knowledge in legal and finance process.

2. At National Level (MC)

Information managment is poor in terms of accountability, It does not exist an Accountig Information System between MC—LC, LC—MC and an accounting documents

There is no a risk plan for each program or product

Financial dependence on BD results.

Process standardization

1. At local Level

New laws could affect some core and administrative

process.

Quality cases outside the country

University, companies and social strike

2. At National Level (MC)

Trainees safety (there is no a risk plane made for

prevent that extreme situation).

Our finance and management reality AIESEC in Colombia during the last 2 years has been taking and important growth in terms of operation, talent capacity, administrative performance and financial resources. In this case the financial management has been performing focused to guarantee a quality and sustainable growth, as we can see one year ago we modified and improved the national administrative model aiming to guarantee liquidity at local level and build a colaborative financial performance. As well, by the administrative side three months ago, when AIESEC In Colombia changed the bank partneship in order to increase the resource management efficiency. Likewise, the legal and education focus at national lavel have been parte of this change According with these improvements, the new challenges and projects in the middle term, the National office and the local entities must correct many things: Management and legality: At local level there is a big issue about management information process definiton, accounting track plus the legal lack knowledge. What will happen with an organization that don´t have its process well documented ?. The last audit report showed that reality. As well the leadership in the diferents entities must be improved, there is no a finance entity culture. At national level according to the new changes need to implement and define a standar risk plan per program, as well modife how to track the accounting between MC—LC, LC—MC and keep standardizing the finance - core processes. Finance: The national results at national leve represents a good prospect, there is liquidity but it’s important to review the funds performance. The real issue lies in the local level performance, the majority of entities according with their exchange performance don´t have enough resources to guarantee capacity, big amounts of receivable accounts that allows us thinking how the local entities are investing their resouerces for that reason the national administrative model doesn´t represent a real balance

Strengths Weaknesses

Opportunities

Threats

In counclusion the real state of F&M in AIESEC in Colombia according to the last analysis is:

BOTTLENECKS

According to the reality both locally and nationally in all core exchange areas, there are some changes to

implement in order to guarantee the goals fullfilment and the growth in terms of quality, sustainability and

volume AIESEC in Colombia has to be ready to the market and then the financial and legal management

too.

Administrative and legal strengthening

Investment by projects

Optimization and knowledge management: At local and national level the finances and legal process

must be documented taking into account all the obligation with core processes. Implementing and

interactive flowchart of macroprocesses wil help us to delivery excellent products and guarantee quality.GO

TO HERE

In this flowchart we can find all the documents, requirements,,deadlines and booklets to delivery every

actitvity according to each exchange area. Based on this and the right use of tools like PODIO the audit

process And the fast responding will be guaranteed at local and national level.

Education support

1 Generate finance culture at local level: To obtain results it is importan to build a strong culture

enviroment in each entity where the values, are well implemented not only in F&M área but in every

process and in defferent areas.

2. Special training to LCs and new entities: ( Educate our memership) Its about to build a Natioanl Finance

education Cycle taking into account the reality of new entities, LCs and other áreas. In this case the NFT

will be in front of this initiative. Finance management at local level needs to be improveed as much as we

can in terms of legality, ifinance managment and management, to

guarantee a sustainable growth. TOPICS :

Quality tracking cases, Legal processes , financial management and TM

It is no only about investment at national level, the most important investments are made at local level in

local projects, the CFO must organize and guarantee smart investments, the new focus must to be by

specific projects per programs, example: Project summer for OGCDP , this focus allow us generate

efficiency and take a real control.of our operations According to that it will posible to track the investment

and think strategically. Taking into account the exchange areas these investments have to be focused on:

1. International cooperation on IGIP—IGCDP Matching process is a big bottleneck in these areas, the

local committees must innovate in this field ( ceeders, International congress) it is an obligated step

to growth with volume.

2. Diversification and product developement (all areas) The finance managment have to be in contact

with the market and take adventage of that opportunities in order to guarantee volume. The

innovation in raise will be the focus on investmen

Quality and legal shield : Our growth at local and national level requires us

to implement and have control of the legality and quality affairs . By the

legality side AIESEC in Colombia needs to define and implement a risk

master plan for each program aiming to know how to act and what to do, as

well organice the visas processes for IGIP—OGIP and IGCDP. By the quality

side is not enough to have a CSI to solve and track de quality cases AIESEC

in Colombia more than that need a NCB ( National Control Board) where

can make decisión about quality cases, and setting quality standards.

NFT

Budget execution and goal achieved until September of 2013

STRATEGIES AND CHANGES TO BE IMPLEMENTED

OUR REALITY IN EACH EXCHANGE PROGRAM / VIDEO LINK : FINANCE AND MANAGEMENT MILESTONES

OGIP

1 Sales force at local leve, according to de information below the goals

were not achieved. It ‘s necessary to diversify products.

2.Quality cases ( at local level the F&M VPs don´t know how to suppot

it)

3. Poor legal support at local level there are not optimizated processes

at local leve between F&M and OGIP

OGCDP

1. Poor CRM management

2. The local sales culture and force is not enough despite the program

is sustainable as we can see below.

3. Slow RA processes and legalization.

4. there are no documented information per each EP experience.

IGCDP

1. Lot accounts receivable , as we can see below there is a GAP of 35%

to reach the financial goal. This happen both local and national level.

2. Match results are nor enough, it’s important to invest on that.

3. Poor sinergy at local level between F&M - IGCDP , there are no

estandardized processes.

4. There are no documented information per each trainee

IGIP

1. Match processes at local.

2 Lot accounts receivable at local level.

3. Processes standardization at local level , it’s necessary to improve

the relation between F&M and IGIP.

4. Legal knowledge at local level and documented information

BUSINESS DEVELOPMENT 2014—2015

Colombia since the last 7—8 years, has shown and lived an interesting general

economic growth: new opportunities in foreing direct investment, opening and

development of new economic sectors, decrease in unemployment rates and

improve foreing trust. Nowadays Colombia continues growing like never

before, we can see how our economy year per year changes in a positive way,

in 2013 the GDP rate growth seems to be almost 4.5% and for 2014 has positive

perspectives as well the new International tride agreements have been

increasing, which means more opportunities to grow for some economic sectors

and the society in terms of education, health, employment, and of course, new

challenges: improvement in infraestructure , a better coverage and quality in

education, social and political balance in order to be competitive in all posible

contexts. This implies to an AIESEC in Colombia thinking bigger, it’s a big

opportunity to grow, spand and impact in more economic sectors through

our BD product

According to the new positive perspectives, the profitability of the sectors, the

internationalization and them sells, the potential sectores that will allow the

growth in BD for 2014 and next years are: Oil , gas and mining, construction

and Energy, TICs. Manufacture Industry,(cosmetics, pharmacist,) tourism, retail

trade , wholesale business, services in: health finance and insurance and the

Government .

This goal is defined and was projected by 4 important parameters taking into account the last

contextualization analysis.

1. Projections according to the lasts 3 years results: the average growth is 82.% considering that

2013—2014 goal will be achieved, for that reason it was defined a margin of error at least of 10%

in the projection. This results show how big AIESEC in Colombia would could grow and as well

the potential and opportunities that

we have to take.

2. Talent capacity at national and

at local level: There will be 4

negotiators at the national office plus

the local sellers in defferent entities ,

with these team surely this goal will

be reached.

3. Economical growth in sectors: With the opening and development of new economic sectors and

the good economic perspectives AIESEC in Colombia will have excellent opportunites in the

market, Tatking into account the strong reltation between AIESEC and the Government,

4. Strengthened relationships and innovation: To continue with the old partners in middle term will

help to grow in that sector and in new ones, but is not only mantain and strengthen relations,

this goal will be reached if you continue with the innovation in new and more products.

Our future partners will not be only in Bogotá, the economical

grow is happening in Colombia in more cities and regiones,

this is the focus for the next year, take the BD to all the

network where the local committes and new ones are

interested and motivated to grow like never before.

Therefore if we will grow at local level the internal processes

and the financial performance must

to be ready in terms of finance

management, administrative process

and legality. Invest in expansion

building teams of negotiators per

regions lead by the national office

and NST must be the first step to

strengthen BD at local level. Is time

to think big and be ambicious. What

about LCVP BD at local leve or

managers per regions?

CONTEXTUALIZATION GOAL!!! $ 610.000.000GOAL!!! $ 610.000.000GOAL!!! $ 610.000.000

HOW THE FINANCIAL MANAGEMENT WILL HELP TO REACH $ 610.000.000?

Grow in terms of BD at local and national level means to have

an strong administrative environment, it means to have a legal

shield and optimized processes in order to prevent RISKS. The

growth perspectives for AIESEC in Colombia during the next

term are ambicious, for that reason the RISK management

have to be ready and organized in terms of financial results

and legality in order to respond sustainability to our liabilities.

The propuse is to build and define a Risk master plan for

AIESEC in Colombia at local and National level. This plan will

define processes, leader per processes and surely modife

some core—F&m processes. What to do if the goverment or

some partenrs do not pay on time ? Whit wich resources are

we going to operate and respond? What to do in case a

trainee die? Have we a defined process? The idea to have a

risk plan is to prevent and know how to define a contingency

plan in every Project.

Prices and costs must be in order according to the

competitive market, during the last semester

OGIP started like another BD product, as well

IGIP has improved and OGCDP and IGCDP surely

in short time will take off .

The National BD team with the finance

management must define and review what will be

the competitive costs per each program as well

define the prices per program. It’s important take

into account the differences between regions.

The idea is to define a cost structure based on

guarantee a volume growth and sustainable

products.

Invest on Business Development Network Legal and administrative support Cost and price structure to all programs

AIESEC IN COLOMBIA AUDIT CULTURE

The audit in AIESEC in Colombia both at local level and at National level have been unorganized because there is no a structure based on processes, documents and

polítics well defined, nowadays exist three diferents kind of Audit process: GAL made at local level to review the financial and legal management, the NAT at national

level made for the NAT ( National Audit Team) in order to guarantee documented processes per each program and a good delivery and finally, the Internal Auditor

in charge of analyze the MC performance in terms of operations, legal and finance management. To do that is important have a strong information system with

defined processes, The accounting procces needs an efficient

system, the core areas need to standardize and document their

processes. According to the last audit made by the internal Auditor

the report showed that is necessary to have more control at local level

of these processes; as well the report made by the NAT proved the

big GAP that exist at local level in terms of information management

and processes standardization in CORE areas.

To implement an audit culture in whole the network the

administrative strengthening at local and national level must be a

priority and F&M must do many changes to lead it.

FINANCE AND MANAGEMENT CHALLENGES AND

CHANGES IN ORDER TO GUARANTEE A

SUSTAINABLE NATIONAL AUDIT SYSTEM

THE PROPOSAL:NATIONAL AUDIT SYSTEM The idea is to define, build and start the NAS (Nacional Audit System) this system will be

conformed and will take into account the three different audit processses made in AIESEC in

Colombia :

1. NAT (National Audit Team) Audit made in every local entity in terms of legality and quality

on exchange, this team will check all the documents per Trainee and EP.

2. GAL (Local Audit Group) Audit made at local level in terms of financial and resources

management

3. Internal Audit: Made at the National office in terms of operation , finance and resources

management .

Unify these three different audits on a policy is the next step, define deadlines, documents , MoFs

penalties and processes as welll restructure them.

The NAT must take a leading role because it is a

big bottleneck the audit process on exchange areas,

there is no a effcient track at local level, as well, does

not exist processes to guarantee quality in

information , for that reason there will be some important changes to strengthen the performance

and work of these team.

Complet its Mof in order to give to it and strategical role performance.

Take the example of AIESEC in Brazil, the NAT or Time Nacional de Auditoria, has and

importat role into the audit process, these team get a payment of 25% of MC salary, its

Mof incluides audit all membership criteria , give advices, propose strategies at national level

according the results , give training and visit local entities.

According with the Brazilian case and in orden to generate and administrative

strengthening, this policy would could help to do track of all membership criteria at local

level , the NAT could do this work and give the results to the general assembly every

quarter.

About the GAL and the Internal Auditor the policy will define all the conditions, rules, deadlines

and information to be audited.

With these change AIESEC in Colombia wiil have and excellent audit system that will bring

efficiency , governance and administrative strengthening,

The base to do and guarantee and efficient audit process

lies on have processes well defined and a strong

information systems. As we know there is still a lot of work

to do on this field both at local and national level. What has

AIESEC in Colombia do and change in order to guarantee

quality on processes and then implement an Audit Culture?

1. Get certifed on quality

The growth that AIESEC in Colombia has been having,

needs to be a accompanied of strong processes , It´s

time to invest on quality, it exists an excellent certificated in Colombia, the

NTC 6001 for PYMES, AIESEC in Colombia specially the national office

could get certified, we have PODIO on this plataform we could do many

things.

2. Accounting Information System ( AIS)

One of big the bottlenecks of finance managment is the accounting

process in LCs , between LC –MC and finance admnistration at local level ,

in order to have a good accounting system an then an excellent finance

performance is necessary to invest on that, AIESEC in Brazil for example

the last month began a partnership with an accounting service company,

it’s efficient and cheap .t’s time to improve our accounting system between

LC—MC and innovate in this field. In Colombia surely there are these

kind of services, that AIESEC In Colombia can invest. For example Go to

Go to here