Finance Standards 

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Want to be able to explain them to your entity in a simple way?


How to improve? 

  1. LOOK AT THE ANALYSIS (in the bottom of the page)

  2. FIND KPIS WHICH YOU DON'T FULFILL FOR EACH STANDARDS

  3. IDENTIFY ACTION STEPS HOW TO FULFILL THEM TILL NEXT QUARTER


Accounting

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It is the process of collecting, recording, classifying, interpreting and communicating financial information.

It reveals profit or loss for a given period of time, and the value and nature of a organization's assets, liabilities and equity.

It shows overall wealth, profitability and liquidity (cash-flow).

It shows the resources available, how those resources are financed and the results achieved through using them.

Audit

Systematic examination and verification of an organization's books of account, transaction records, other relevant documents, and physical inspection of inventory by auditors.

The organization's management (VP F and/or MCP) role:

Prepares the financial report. It must be prepared in accordance with legal requirements and financial reporting standards.

Auditors role:

Examine the organization's information, identify and assess risks that can impact financial performance, and review internal controls.

They make a judgement as to whether the financial report as a whole presents a true and fair view of the financial results and position of the organization and its cash flows, and is in compliance with financial reporting standards.

Auditors prepare an audit report stating their opinion

Budgeting

Is an action plan to achieve a set goal, expressed in values and financial terms that has to be achieved in a set time frame and under expected conditions.

Is the numeric translation of our action plan.

It enables:

Financial control of the organization.

Tracking of the organization’s action plan.

Preventive or corrective role in the organization.

Legality

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Operating and behaving according to the national law (e.g. using the right work permits for foreign MC and GT interns, reporting to fiscal authorities, signing contracts for our exchnage partners and out Eps, etc).

Operating and behaving according to the Global Compendium (e.g. fullfilling global membership criteria, having democratic elections for MC).

Establishing internal governance and following it (e.g. having a national compendium, having LCP and EB elections in the LCs).

Ensuring we have external legal advice to protect our entities and the brand(e.g. by having a probono lawyer, inhouse lawyer or a lawyer in the BoA). 

Reporting

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Is providing organized information in the form of a document.

Financial reporting refers mainly to external financial statements (balance sheet, income statement, statement of cash-flows).

Other reports may be monthly, quarter and annual reports (performance and financial) to the national plenary and AI.

Sustainability

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Bruntland Report for the World Commission on Environment and Development (1992).

“Sustainability is managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet” – Financial Times.


Overall fulfillment Q4 2016

Which standards does your entity fulfill and which it does not? 

Look at the report!

based on GFB Survey Q4 answers

1. 94% Turkey

2. 90% Hungary

3. 89% Portugal

4. 87% Romania

5. 87% Mainland of China

6. 86% Georgia

7. 86% India

8. 86% Serbia

9. 85% Greece

10. 85% Austria

11. 84% Panama

12. 83% Slovakia

13. 83% Finland

14. 83% Indonesia

15. 82% Bulgaria

16. 81% France

17. 81% Venezuela

18. 81% Uganda

19. 81% Italy

20. 81% Czechia

21. 81% Lithuania

22. 81% Egypt

23. 80% Russia

24. 80% Sweden

25. 79% Argentina

26. 79% Croatia

27. 77% Canada

28. 77% Nigeria

29. 77% Norway

30. 77% Mexico

31. 76% Germany

32. 76% Peru

33. 76% Brazil

34. 76% Poland

35. 75% Afghanistan

36. 75% United States of America

37. 75% Switzerland

38. 75% Ecuador

39. 75% Belgium

40. 75% Kenya

41. 75% Latvia

42. 74% Pakistan

43. 74% Bolivia

44. 73% Sri Lanka

45. 73% Burkina Faso

46. 73% Australia

47. 73% Ghana

48. 72% Malta

49 72% Mauritius

50. 72% Hong Kong

51. 72% Spain

52. 71% Colombia

53. 71% Togo

54. 71% United Kingdom

55. 71% Vietnam

56. 70% Rwanda

57. 70% Bosnia and Herzegovina

58. 70% Estonia

59. 68% Slovenia

60. 68% Nepal

61. 68% Costa Rica

62. 68% Denmark

63. 68% Oman

64. 67% Cambodia

65. 67% Armenia

66. 67% Montenegro

67. 66% Ukraine

68. 66% Bahrain

69. 65% Ireland

70. 64% Korea

71. 64% Moldova

72. 64% Iceland

73. 63% Chile

74. 63% Thailand

75. 63% Nicaragua

76. 63% Mozambique

77. 63% Lebanon

78. 62% Singapore

79. 62% Senegal

80. 61% Albania

81. 61% Macedonia

82. 60% Benin

83. 60% Uruguay

84. 59% Netherlands

85. 59% Ethiopia

86. 59% Tunisia

87. 59% Morocco

88. 59% Philippines

89. 58% Japan

90. 58% Cameroon

91. 58% Guatemala

92. 56% Belarus

93. 56% Liberia

94. 56% Taiwan

95. 53% Azerbaijan

96. 53% South Africa

97. 52% Dominican Republic

98. 51% Jordan

99. 51% Puerto Rico

100. 50% Mongolia

101. 49% Namibia

102. 49% Kyrgyzstan

103. 48% New Zealand

104. 48% Iran

105. 48% Tanzania

106. 47% Myanmar

107. 47% El Salvador

108. 47% Malaysia

109. 44% Paraguay

110. 35% Kuwait

111. 34% Bangladesh

112. 33% Laos

113. 30% Algeria

Check them in details!

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more on aiesec 2020, strategy #5 finance and legal