AIESEC India Finance Summit - February 2016

2.  Recon is the amount paid to the MC for the services
provided.
 Recon is divided as 3 parts :
1. Affiliation Fees
2. Exchange
3. TMP/TLP
 It is paid at the end of every quarter for the realizations that
have happened in the quarter.

3.  Recon is of 2 parts : Fixed & variable
 The amount to be contributed by all LCs will be based on
ratified annual budget of MC.
 The payment is made within the 10 days of the succeeding
month of the recon.

4. Old ReconModel NewRecon Model
Every exchange programme had a fixed price
that was charged per exchange.
There is a fixed amount derived from MC
budget which is variable every quarter.
No. Of exchanges * Standard price per
exchange
Amount / number of exchanges done & TMP
TLP * No. Of exchanges & TMP TLP
More exchange you do, more you pay The more you do, the less you pay.
Regressive & redundant, no financial incentive
to perform better.
Since you pay less per exchange, you have
more profits to re-invest back in the LC.

5.  To infuse growth directed by higher profits
 To evolve the state of financial management
 To add an element of accountability in the national
association.
 To improve performance in all cycles.
 To increase accountability of the MC to its budget.

6. Division of
Budget
Affiliation Fees Administration
National
Services
Investments

7.  Standard fees to be paid to AIESEC India as affiliation.
 Does not fluctuate every quarter.
 AI Fees, GN Fund, MC Subsidies, Auditing Fees, Accounting
Fees, Legal Fees.

8.  Expenses that are involved in running daily operations of the
MC.
 Divided as 60% paid by AIESEC India, 40% by all LCs.
 MC salaries, office renovation, internet, electricity, national
events, CRM, campaigns & RnR, etc. Are examples of admin
expenses.

9.  Expenses for services carried out by AIESEC India for LCs.
 Helps in improving productivity & operations. Aligning LCs
to MC.
 100% borne by LCs.
 National Conferences, Regional Conferences, LEADs,
Information Management, Summits, University Relations,
Marketing & PR cost, digital experience & growth &
innovation, etc.

10.  Investments done by AIESEC India to grow the network and
increase operations.
 50% by LCs, 50% by MC.
 Outgoing CEEDs, Incoming CEEDs, Printing & Publications,
Alumni events, etc.

11. Division of
Budget
Affiliation Fees
Fixed every
quarter
Administration
Fees
60% MC
40% LC
National
Services
100% LC
Investments
50% MC
50% LC

12. Recon
Model
Affiliation
Fees
GCDP/GIP TMP/TLP

13.  Standard fees paid every quarter.
 Does not fluctuate as per exchanges.
 Calculated as :
Affiliation fees as per AIESEC India budget / No of LCs of
AIESEC in India.
 Standard amount : Fixed cost

14.  As per AIESEC India’s budget, LC’s share of contribution is
taken down.
 It is divided between all quarters as :
Q1 – 20%
Q2 – 25%
Q3 – 30%
Q4 – 25%

15.  Amount to be paid by all LCs of AIESEC India for that
quarter/No. of realizations done by AIESEC India *
Realizations done by LC.
 Example :
10,00,000 MC Budget
20 % or 2,00,000 is Q1 contribution
200 exchanges done by AIESEC India
Cost per experience = 2,00,000/200 = Rs. 1,000 per exchange

16.  TM & LnD budget will be divided equally by amount as per
contribution of the number of unique members in determining
time period.
 This gives the amount to be paid for every unique members by
every LC.
 Example :
8,00,000 MC Budget
2,00,000 for Q1
2000 unique members in AIESEC India
Cost per experience = 2,00,000/2000 = Rs. 200.

17. Affiliation
Fees
GCDP/GIP TMP/TLP
Total Recon
Payable