Entity Disbandment Report !

- EXPANSION UMM - (Universitas Muhammadiyah Malang)

!!!!!!

AIESEC INDONESIA

Jakarta, 20th Feb 2014

!Disbandment !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. Numbering format letter 2. MOU, EP contract, TN AN, EP AN not centered in Finance Department 3. Lack of project tracking 4. Wrong AIESEC logo color in physical national compendium 5. Lack in almost all financial system and operational 6. Lack of reviewing tracking, and delegating job description 7. There is no project booklet for OCP and OCVP 8. Lack of compliance on SOP !

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 UMM 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. !

Perspective from LC Sister: LC UB was the LC Sister of Expansion UMM. From their perspective, they agreed with the decision, not only because of the reasons above, but UMM also showed the risk to become a full-member LC right now, due to their lack of knowledge about basic operation, which leads to weak operation, looking by the audit result itself. Not only in terms of operational stuff, their infrastructure also could not support their operation. They still did not have settled office and clarity of operational assurance. !

Perspective from MCVP Expansion: MCVP Expansion agreed with the decision. Yes, Expansion UMM might have the potential in the future, but looking by their readiness and their internal audit result, she agreed that we should not rush things up. Moreover, rules are rules and if in compendium stated so, no matter how such-a-shame it would be, we should just follow. However, MCVP Expansion proposed them to be recalled as Expansion Applicant again. Until date (20th Feb 2014), UMM 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). !!

LC Sister Withdrawal !Not only disbandment, but in the legislation national plenary agreed to withdraw AIESEC UMM from their previous LC Sister, LC UB, due to lack of capacity and service given to respective expansion. UMM’s lack of knowledge and weak operation were believed as impacts from the LC Sister itself. However, LC UB could not be blamed 100% in this part, because according to current AIESEC Indonesia LCD Framework, expansion should not be handled by LC unless they are in Big Clusters (UB is in medium cluster), due to the capacity to manage expansion itself. Meanwhile UB has handled UMM since NPC 2012 as mandated by AIESEC in Indonesia (UMM was proposed themselves to be expansion, not from UB). !In Conclusion: !

UMM 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. !

UMM is recalled to be Expansion Applicant by 18th February 2014, and will have Expansion Presentation to become Expansion Initiative today, 20th February 2014, and the are handled directly under MC. !!!

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