Changes to a project budget affecting the outputs, completion date or total estimated project costs require a formal budget revision that is agreed by the signatories of the original project document, and may need the approval of the donor, UN pooled fund steering committee or vertical fund, if relevant. The UNDP programme manager alone may sign the revision provided the other signatories have no objection. This procedure may be applied, for example, when the purpose of the revision is only to re-phase activities among years.
A project document may be revised at any time by agreement among the signatories to the document, the donor, UN pooled fund steering committee and/or vertical fund, as relevant, and following consultation with the project board. The purpose of the revision is to make substantive or financial adjustments and improvements to the project. Restrictions apply for GEF- and GCF-financed projects.
To ensure the programme remains relevant and effectively contributes to outcome level results, the programme board may approve some changes to the programme without the need to resubmit the programme document to the UNDP Executive Board. These include: (a) removal of outputs that would not adversely affect the achievement of agreed outcomes; (b) adding new outputs necessary to achieve a given agreed outcome identified after the approval of the programme document; and c) changing outcome or output indicators that measure the progress of the programme.
If the problems have not been resolved in a reasonable time, the project must be cancelled. Unspent funds defined as a target resource assignment from the core that result from a cancelled project may be reprogrammed, considering the outstanding obligations of the cancelled project. Third-party contributions may be reprogrammed subject to approval by the donor (unspent funds must be returned to vertical funds such as the GEF or GCF). The implementing partner proceeds with the steps required for financial completion as described in project closure. If cancellation means significant changes in the approved country programme document, an amendment may be needed.
Suspension. A project is cancelled after a period of suspension. During this period, the parties consult and try to resolve the problems by corrective measures. If the problems are resolved, the project activities may be resumed. The programme manager/Resident Representative confirms to the parties the date for resuming the activities. In an emergency situation, it is often clear that corrective measures cannot be taken. If so, UNDP proceeds directly with cancellation.
Substantive revisions are changes to the project design, approach, implementing partner, theory of change or results framework made in response to changes in the development context or new evidence and learning. Revisions may be made any time in response to monitoring, evaluation and review activities. When there is a substantive change in the design, the inputs and the budget will normally also need to be changed.
A country programme may be suspended by UNDP when the situation in the country makes it impossible to achieve programme outcomes. The relevant Regional Bureau Director decides on suspension in consultation and agreement with the Associate Administrator. The Executive Board will be notified of programmes that have been suspended at the next practical session.
Tolerance is the permissible deviation from a plan (in terms of time and cost) without bringing the deviation to the attention of the next higher authority .