Entity Disbandment Report !

- EXPANSION PU - (President University)

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AIESEC INDONESIA

Jakarta, 20th Feb 2014

!Date of Disbandment: 4 February 2014 Main reason of disbandment: did not pass the internal audit (result score: D). !Here are the summary findings from the audit: !

1. Lack of Education 2. Dishonesty and fraud committed by exchange controller manager 3. There is no application booklet for manager 4. Lack of maintaining asset 5. Inappropriate talent selection 6. Lack of reviewing and delegating job description 7. Inefficient transition 8. Inefficient in ER Department 9. Outgoing Exchange Global Internship Program Department still do not know the amount of

stamp used and where to put it in EP contract 10. Incoming Exchange Global Internship Program job handled by LCP not by Vice President

related !Perspective from Membership Subcommittee Board:

1. Internal Audit result & Compendium Alignment As stated in Compendium, Appendix 7: Procedure for Opening a New Local Committee point 7 - Full Member (page 65): “To be qualified for full member, the full member criteria for LC‟s of AIESEC Indonesia will need to be fulfilled, given in article 1.15 with a minimum time period of 1 complete national conference circle.” AIESEC Expansion PU officially became Official Expansion by NEC, January 2013 which means they had apply to be full-member LC by the latest NEC 2014. According to MMC stated in Compendium, internal audit is one of the criteria, which they did not pass. And since they applied to be full-member LC by NEC 2014, they did not have extension time and they had to be disbanded. !2. Fraud Without MC knowing or being told, a fraud was done in Expansion PU by one of the member. The person took Rp 16,000,000,- (around USD 1600), but AIESEC PU “tried to solve it by their own first, by asking the person to give back the money by credit” instead of told national plenary about it. This was found during the internal audit. Fraud case like this has always been taken seriously by AIESEC in Indonesia. !3. LC Sister Tracking (in several area) Though we are aware how UI as LC Sister has given proper treatment and service towards their expansions, MSC Board thought that it was not enough in terms of their preparation applying as full-member LC, especially in terms of finance. Especially in fraud case, had they tracked and found earlier—especially before auditing—case like this would have been avoided. UI has been very good in terms of tracking the performance and operation, however, HR and Finance parts need improvement. !

Perspective from LC Sister:

LC UI as the LC Sister admitted the mentioned reasons. They are aware that HR and Finance are even more important than the operation, and these has been the roots problems so far. LC UI thinks there was no intense and proper tracking in finance part, specifically for expansion, and so does HR or TM—since this is also the problem currently happening in LC UI itself, and it affects their other entities. In terms of HR/TM, there was no smooth and good touchpoint or proper attention in advance. This, they said, would be their main focus (Finance and HR intense tracking) for the next one in terms of handling their expansion entities. !

Perspective from MCVP Expansion: Expansion PU has almost been disbanded once, but they grew significantly, making them one of the most performing expansions. But things are not seen from surface or merely numbers, like what was discovered during internal audit, are the most important things. And it turns out that that’s what PU was lack of. From what she knows of, in around half Q1 and half of Q2, there was the time where the Expansion President had internal problem with the team. Half of the LCVP were lost, so he took over. It was not good decision since it is not always about the number or result; process is what matters the most. This what failed them in internal audit. Nevertheless, MCVP Expansion proposed them to be recalled as Expansion Applicant again. Until date (20th Feb 2014), PU status is now Expansion Applicant (since 18th Feb 2014. Acceptance letter will be attached) and will reapply again as Expansion Initiative today (20th Feb 2014). !

In Conclusion: PU has been disbanded since 4th February 2014 since they could not fulfill the MMC, point: 1.13.9 Governance & accountability: !

4) Passing the Internal Audit standard through an opinion of Full assurance level (A rating) with cretia low perceived risk area, substantial assurance level (B rating), or moderate assurance level (C rating) with minor risk identified. !

PU is recalled to be Expansion Applicant by 18th February 2014, and will have Expansion Presentation to become Expansion Initiative today, 20th February 2014. !AIESEC Expansion PU is still handled by LC UI as LC Sister. !! !!!!

Regards, !!!!!!!! Yuricia Vebrina Lahar MC VP Expansion AIESEC in Indonesia 1314