Financial Management

The mindset and the people…

Why is financial management so important?

@XP

Investments Sustainability

The profile…

The profile of a VP F:

The selection, transition and the job description of a VPF needs to be such so that you have a good consultant, analyst and proactive person for this

position.

What does it mean proper financial management in AIESEC?

It’s when you know how much money,

when and where you spend; are able to

analyze incomes and expenses and make

decisions based on that; have a clear

strategy and tools to implement it.

To have a clear understanding of legal

aspects that affect our organization and

how to deal whit these aspects.

It’s when you know how much resources you have and are able to use them effectively, together with a legal frame for our operations and activities

It’s what helps you to achieve organizational goals.

The processes…

How can you be excellent in driving the car, if you are good in steering the wheel but cannot control the gear?

How can you be excellent in financial management, if you are good in budgeting but bad in reporting and reviewing? Is it possible?

The processes…

1.Budget and Cash Flow:

A proper budget and cash flow need to be in place! These are the basic financial management tools.

This helps you to make sustainable decision making in the short and long term.

The processes…

2.Internal Financial Policies:

The policies facilitate the implementation of proper financial management in your LC and support financial decision-making.

The processes…

3.Reserves Management:

In order to build up and manage your reserves you need a clear plan and a clearer objective. Start with small steps but be assured that the benefits will be immense.

The processes…

4.Restricted Fund:

If you want to restrict some part of your revenue for a specific purpose in order to facilitate its reporting and management, then this is the way on how to do it

The processes…

5.Investments:

In case you want and are allowed by your laws to invest, then here is another process that you need to take in consideration and structure in your LC if it´s needed.

The processes…

6.Fundraising at local level:

Here you include the fundraising in government, private entities, universities, etc, that FL people could run.That means, funds or grants in this entities in which we can apply to get money for your LC Activities.

The processes…

7.Bookkeeping, Tracking and Review:

Enter it, track it and review it! It is very important to be always updated on the past, current and future financial performance of your LC. There is no other way to do; enter it! Track it! Review it!

The processes…

8. Legal management at local level:

In our area, you don´t need only to manage the financial side of our organization, also our legal side. The legal involvement in our partnership, trainees and EP management, etc also will be one of the most important processes to ensure and track.

The processes…

9. Auditing and financial disclosing:

From the above, you must be able to prepare correct financial data andstatements. As an audit could be required as a possible membership criteria, it is important that an internal auditor and your Board are checking your finances as well.

The processes…1.Budget and cash flow2.Internal Financial Policies3.Reserves Management4.Restricted Funds5.Investments6.Fundraising at local level7.Bookkeeping8.Legal management at local level9.Auditing and Financial Disclosing

The Structure…

Our current structure is suitable to support this processes?

Which are the advantages and disavantages of our structure?

The Structure…

Which could be a suitable structure to organise this processes??

The Report…

Now… if we have the processes, the structure that support them and the thinks in the area are happen… what we need to do?

The Report…

Yeeees… To Report!!

Report our performanceReport our results

Report our continuos processes

The Report…

Which mecanism we could implement to report inside and outside of our area?

Specially for MC?

Specially for LC?

Ask me Famous !!!!