1. Jakarta, 20th Feb 2014
Entity Disbandment Report
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- EXPANSION PU (President University)
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AIESEC INDONESIA

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Date of Disbandment: 4 February 2014
Main reason of disbandment: did not pass the internal audit (result score: D).
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Here are the summary findings from the audit:
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Dishonesty and fraud committed by exchange controller manager
There is no application booklet for manager
Lack of maintaining asset
Inappropriate talent selection
Lack of reviewing and delegating job description
Inefficient transition
Inefficient in ER Department
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.
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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.
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3. LC Sister Tracking (in several area)
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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:

3. 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.
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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).
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In Conclusion:
PU has been disbanded since 4th February 2014 since they could not fulfill the MMC, point: 1.13.9
Governance & accountability:
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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.
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AIESEC Expansion PU is still handled by LC UI as LC Sister.
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Regards,
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Yuricia Vebrina Lahar
MC VP Expansion
AIESEC in Indonesia 1314