You are on page 1of 10


in 6th of October
Internal Audit
June 2012

The purpose of this document is to present the findings of the internal auditing process. Additionally, it will highlight the method with which the data in the audit report was gathered as well as highlighting the areas that were covered in the process. Khaled Zikry 01118741374

Areas Covered in Audit

Finance: 1. Updated LC Budget 2. Updated Cash Flow 3. Monthly Expense Planning 4. Updated list of Receivables and Liabilities 5. Documentation and storage of invoices 6. Quarterly Financial Statements 7. Long Term Financial Planning 8. Bank Account IM: 1. Updated membership Tracker 2. Updated EP Tracker 3. Updated TN Tracker 4. Account Management Tracker 5. Updated Alumni Database 6. Documentation of all MoUs and contracts Legalities: 1. Certification document or Acknowledgement of existence from university or other Public Entity. 2. Signed and stamped Contracts 3. Local Compendium Asset Management: 1. Office 2. Meeting Rooms Compliance: 1. Compliance to Local Compendium 2. Compliance to National Compendium 3. Compliance to XPP 4. Compliance to NXQB Guidelines 5. Compliance to AMS Guidelines 6. Compliance to National and Local Strategies

Planning: 1. Strategic LC Plan 2. Functional Operational Plans 3. Plans are time-bound to an LC Calendar Brand Management & Operation: 1. Compliance of branding in : a. Posters b. Banners c. Flyers d. Brochures e. Product Proposals f. Web Materials 2. Brand Audit on Campus Exchange operation: 1. Satisfactory TN Surveys 2. Satisfactory Intern Surveys 3. Satisfactory EP Surveys 4. Compliance to goals External Relations: 1. Alumni Surveys 2. Partner Surveys 3. Compliance to ER goals

Audit Process
Ideally, the audit was supposed to rely a lot more heavily on the review of documents such as contracts, surveys etc. in order to be as objective as possible. However, apart from the financial affairs, this audit was conducted mainly through interviews and meetings, as the time was limited. The meetings conducted during this audit included: Omar Rateb LCP Nadine El Mowaled VP Finance Gina El Gamal VP OGX (ex VP COMM) Rana Hesham VP ER (ex VP F) Mohammed Fouda VP ICX Omar Fawzy VP TM Yasmine El Kersh VP COMM Rasha El Shiaty PM Global Eye of Egypt (GEE) Ahmed Mazhar Reception and Servicing (R&S) member

Finance: The responsibility of handling the Finances of the LC has been changing hands several times this term until finally reaching its current responsible, Nadine, VP F. This transition of responsibility was not performed as completely or coherently as possible causing the loss of information regarding financial transactions in the first 2 quarters. Furthermore, The budget set at the beginning of the year is not a usable one as it has several discrepancies with reality, numerical and logical mistakes (e.g. revenues put in expenses), as well as the fact that it is not planned with regular intervals within the term. Only the totals of the whole year have been planned but there has been no budget plan on when these revenues and expenses will be accrued. Due to the poor transition of accounts the cash flow document is not entirely accurate in recording the transactions of Q1 and Q2. Finally, before VP F assumed responsibility, there were several hands in the EB handling cash, which is not recommended at all. On the other hand, the total values in the budget revenues seem to be realistic and achievable. The pouches method of dividing expenses is also found to be innovative and promising. Recommendations: VP F should try and close all the accounts for Q1 and Q2 in the cash flow with as much information she can obtain from the previous responsible. A new budget needs to be planned after matching it to the monthly goals and operations of the other functions in order to have a complete month by month budget. VP F should approve any cash transactions including transactions by LCP. VP F should start using Journals and Ledgers in book-keeping to make financial documents more legible. Keep monitoring, improving and tweaking the pouches model until the best percentages and best model is achieved. Maximise communication with MCVP F, SG and Internal Auditor in order to achieve full transparency. Always account for Unearned Service Revenue (EP Fee Refundable).

IM: There have been no big issues observed with regards to IM. It was found that all contracts and MoUs were documented. Furthermore, There are complete EP, TN and membership trackers. However, these documents might not be organized well. Recommendations: Legalities: The LC documentation seems to be in order. The LC has a document of certification from Nile University. However, the LC is facing trouble in gaining certification in MSA ( the most promising campus in 6th October). The LC Compendium is currently in the process of development. All contracts are in AIESEC Egypts name. Recommendations: Consult with SG and MC on setting LC compendium before legislating it in local plenary. Work on creating relationships with MSA administration from different departments in addition to any personal contacts (not only depending on personal contacts) to be more sustainable in relationship. Possibly, consider opening the position of MSA account manager in charge of relationship with university. Asset Management: Nile University provides the LC with all needed spaces regarding office and meeting rooms. Recommendations: Attempt to make agreement with NU more formal and documented to make it more sustainable. Research the possibility of affiliation with Ministry of Higher Education to access MSA. Develop a method of indexing and organizing documents such as contracts, MoUs and receipts/invoices, whether digitally or hard copy.

Research the possible effects on AIESEC facilities with the potential move of Nile University to other campus.

Compliance: After meeting with both X functions, it was found that they are generally compliant to all XPP and NXQB standards and have not had any cases raised against them, on the contrary, it is expected that they raise a quality case against China for ICX. As for aligning with a national direction, there has been minimal communication in OGX with MCVP OGX 2011/2012. This, however, is improving now with MCVP elect through collaborating on national partnerships. As for AMS, there have been many issues with the AMS nationally, this year, and it is hard to judge compliance except that they have had no NXQB cases against the LC. Recommendations: Communication with functional MCVPs needs to increase in order to maintain alignment to national direction. Ensure that members are educated on XPP and NXQB standards as it is only the EB that know them which is unsustainable for the next term. Planning: Planning was not consistent between functions, with some functions having operational plans while others not having one. In general, goals and plans are not very time-bound. An LC Calendar is used as a timekeeper of plans but it is not detailed enough. Plans are too basic and incomplete, e.g. in ER there was only a goal in terms of money raised but there was no goal for number of company visits. Overall, the LC and functional plans are too basic and incomplete, missing many KPIs, with few exceptions. Try to maintain minimum AMS compliance with the MC until technical difficulties are over, without compromising ER and ICX performance.

Recommendations: Brand Management: It was found that all LC materials were aligned to the international brand guidelines. However, there seems to be work needed when it comes to the image of AIESEC in the different campuses of 6th October. There is a relatively good presence for AIESEC in Nile University as it is small and there are a lot of people from it already in AIESEC. As for MUST and ACU, the presence is much weaker and unclear. With MSA, it depends mostly on word of mouth and is pretty clear. Recommendations: Focus on awareness campaigns in ACU and MUST as potential campuses for AIESEC engagement (and ot necessarily membership or exchange [2015]) Fixing up legal status in MSA is a must in order to be able to increase awareness and presence on campus. Start making use of Nile University administration in networking and warm calling for ER and ICX. Maintain management of social media, while increasing the engagement with youth through these channels. Exchange Operation: In OGX, the LC is falling behind on their goals due to discrepancies between LC calendar and university calendars as well as issues with the administration of MSA. The members recruitment was also not planned for the peak and led to a lack of members capacity during raising peak. It has alos been found that there was a lack of transparency between the middle management and the VP and there was a lack of proper expectation setting with the EPs. Finally, there was lack of co- ordination between ICX and OGX in the execution of the GEE project as the timeline was not set between the two functions. ICX is relatively on track with their goals and have raised several diverse TNs with proper expectations set with the TN takers. The function, however, has not paid Re-plan all functional plans ASAP, making use of MC guidance in the planning process.

any attention to interns learning in Egypt. Overall, EPs and Interns are satisfied from LC with the exception with some EPs that have faced unresponsive members. Recommendations: ICX needs to ensure proper documentation and account management so that they can ensure sustainability of accounts to the future years as it is their first year. VP ICX needs to assign responsible for learning of interns (besides servicing). Continue raising MATCHABLE TNs and ensure that members are trained on matching. Because of membership issues faced throughout the LCs, VPTM needs to stay up to date with the status of all membership and implement HR system properly. This should be complemented by pocket recruitments when needed. EB should meet and decide on an action plan regarding active membership retention suring the summer months. OGX needs to plan beforehand when to start raising for the next peak giving themselves enough sandbag for 2nd recruitments. Work on matching all current forms in order to achieve goal and open ongoing online recruitment for realizations during the summer months. Evaluate the success/failure of GEE and develop keep/start/stop before starting further PBoXs. VPTM should make use of experience sharing with national VPTMs in order to get ideas on how to solve membership issues. External Relations: There has been very little activity in the ER function this year. Very few company visits have been conducted and, hence, results were not achieved. The function faces inactivity of the members partly due to their apathy and partly due to the VPs lack of direction and guidance. Recommendations: VP ER needs to start tracking the team leaders as well as the members as this has not been happening. Raising Manias are necessary to kick start a wave of new company visits

Create incentives for people to come up with personal contacts to approach in company visits. Make use of the entire LC. Make use of Nile University administration to get contacts Collaborate with VP TM to create an LC-wide ER raising competition. LCP needs to get more involved with tracking ER operations.