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1
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Steps
Authority for Approving PCA.
Delegates his/her authority to HO for approving the PCA for any single advance up to $25,000 per PCA Custodian and per one-time project activity of limited duration, not exceeding two weeks.
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Responsible Party
Treasurer
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Template/Guideline
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Explanatory Notes
This delegation provides the flexibility for a specific project requirement that cannot be met by the normal banking arrangement. However, this delegation also demands accountability of the CO that issues PCAs to ensure timely closure of the PCAs 30 days (one month from the date the advance was issued.
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2
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Steps
Retains the authority to approve any single PCA higher than $25,000 based on the CO's request. The key considerations in approving such requests are: - Business needs
- Alternative solutions not available.
- Security assessment and arrangement (must identify secured route for travel and escort).
- CO's track record in timely and accurate closing the PCAs.
- The CO must submit the AP Data Entry Form signed by respective officers as the supporting documents
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Responsible Party
Treasurer
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Template/Guideline
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Explanatory Notes
Caution: Failure to timely and accurately reverse PCA, record the expenses, and reconcile GL PCA Account 16108 may lead to inaccurate valuation in the financial statements.
Caution: Failure to make proper security arrangement may lead to the delay in Treasurer’s approval of higher PCA amount until the situation is corrected by the CO
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3
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Steps
PCA Custodian Appointment
Appoint the PCA Custodian
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Responsible Party
RR/DRR(O)
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Template/Guideline
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Explanatory Notes
Following Appointment criteria apply:
Staff holds UNDP Fixed Term Contract (FT) or holder of Personnel Services Agreement (NPSA/IPSA) with limit up to $5,000 (only RR can appoint NPSA/IPSA, not to be further delegated).
Staff is competent to fulfill the responsibilities including safeguarding, proper use of, and timely accounting for the PCA.
Staff signs the PCA Appointment Form.
Staff agrees to fully report and account the PCA 30 days after the advance has been issued.
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4
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Steps
Physical Security for PCA
Ensure, jointly, the security of the PCA as follows:
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Responsible Party
DRR(P) and DRR(O) (or equivalent and higher, as applicable)
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Template/Guideline
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Explanatory Notes
DRR(P) is responsible for the security assessment at project activity site and PCA Custodian appointment.
DRR (O) is responsible for security arrangement (working with UNDSS or a third party escort service if applicable)
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5
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Steps
Issuance and Encashment of the PCA Cheque
Set up the one-time PCA Custodian as a ‘Supplier’ in Quantum.
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Responsible Party
Country Office staff who are authorized to create and approve suppliers in Quantum
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Template/Guideline
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Explanatory Notes
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6
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Steps
Raise an Invoice to the Custodian/supplier as type “prepayment” set up as a “temporary Prepayment” by checking off the flag “Allow prepayment application” with proper supporting documents
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Responsible Party
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Template/Guideline
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Explanatory Notes
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7
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Steps
Payment will be processed by GSSC.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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8
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Steps
Withdraw the cash and safekeeps the advanced cash until completing the final disbursements and accounting
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
The PCA Custodian is responsible for safekeeping of PCA between the time of receipt of cash and final disbursements of the cash (if the third party provider is not used for transporting and distributing the cash) as well as any unused cash advance until the amount is returned to DRR (O)
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9
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Steps
Disbursing PCA Maintain invoices and receipts for purchases
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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10
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Steps
Maintain the PCA Pay List including the beneficiary name, organization affiliation (if applicable), phone ID name and number, and amount of the cash disbursement
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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11
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Steps
Verify validity of the identification before making cash disbursement to each intended recipient.
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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12
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Steps
Collect the signature from each recipient acknowledging the receipt of payment from UNDP
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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13
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Steps
Calculate the total for all disbursements made and determine the unused balance for PCA
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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14
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Steps
Submit the PCA Pay List, invoice/receipts, along with unused PCA balance, if any, to DRR(O) immediately upon completion of the activity
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Responsible Party
PCA
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Template/Guideline
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Explanatory Notes
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15
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Steps
Internal Controls for PCA
Disburse the cash to authorized beneficiaries for Qualifying PCA Expense only for the specific one-time project activity
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
Separation of duties must be maintained at all times for PCA request, PCA approval, AP non-PO Invoice creation and approval, and issuance of PCA
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16
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Steps
Maintain the Pay List with supporting documents
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
This will include records to identify who was paid, for example by retaining copies of identification of the beneficiaries
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17
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Steps
Submit all invoices and receipts to the DRR(O)
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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18
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Steps
Submit the final accounting 30 days after the advance has been issued, including returning the unused PCA cash balance and documents listed in 2 and 3 above to DRR(O).
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Responsible Party
PCA Custodian
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Template/Guideline
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Explanatory Notes
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19
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Steps
Reviews steps above and ascertain if the PCA is disbursed according to the procedures and is fully accounted for and proceed to perform the closure accounting entries.
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Responsible Party
Finance/Operations
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Template/Guideline
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Explanatory Notes
The review should include phone calls to beneficiaries selected randomly to verify the actual payments
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20
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Steps
Use the PCA Status Monitor (Annex 6) to ensure that all onetime project activities concluded by 23rd do not have outstanding PCAs at the last day of the month
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Responsible Party
The assigned Finance Associate responsible for tracking PCA status
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Template/Guideline
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Explanatory Notes
Annex 6: PCA Status Monitor
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21
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Steps
Review the PCA Status and Monitor at each month end.
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Responsible Party
Operations Manager
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Template/Guideline
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Explanatory Notes
Tips: The Operations Manager must assign one Finance Associate the responsibility to monitor all PCAs issued and ensure proper actions listed above take place within the required timeline. Caution: All PCAs are to be fully closed and accounted 30 days after the advance has been issued. This is very important to the fair and accurate presentation of a) UNDP financial position and operating results (reflected in the Balance Sheet and Income Statement Accounts) and b) UNDP’s project delivery status and balance for donor reporting under IPSAS at all times. N.B.: FX gain/loss adjustment entries are monitored by GSSC Cash Management team on a monthly basis
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22
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Steps
Reconciling Outstanding PCA Balance with GL Balance for PCA
Ensure that the Invoice and AR/Credit Memo use the correct COA
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Responsible Party
Assigned Finance Associate who monitors PCA issued
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Template/Guideline
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Explanatory Notes
Caution: pay attention to the currency in GL. Reconciliation is to be done for the currency for which the PCA is issued. Typically, this means local currency for majority of the PCAs
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23
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Steps
Run AAA report for GL Account 16108 for the last date of each month
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Responsible Party
Assigned Finance Associate
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Template/Guideline
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Explanatory Notes
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24
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Steps
Reviews and confirm that the balance in GL Account 16108 represents the outstanding PCAs that have not concluded as of the 23rd of each month
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Responsible Party
Assigned Finance Associate
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Template/Guideline
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Explanatory Notes
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25
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Steps
Review the reconciliation completed by the assigned Finance Associate. If there any concerns for unclosed PCAs, he/she must take appropriate actions to ensure the internal controls for PCA are followed
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Responsible Party
Operations Manager
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Template/Guideline
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Explanatory Notes
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26
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Steps
Prepare, at each quarter-end or at each UNDP financial closure date, the PCA Reconciliation Schedule
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Responsible Party
Assigned Finance Associate
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Template/Guideline
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Explanatory Notes
Annex 7: PCA Reconciliation Schedule
The GL Account 16108 balance must be substantiated by the PCAs that are outstanding in details.
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27
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Steps
Review and certify the PCA Reconciliation Schedule
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Responsible Party
Operations Manager
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Template/Guideline
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Explanatory Notes
Caution: The above steps are critically important to ensure UNDP cash advances are accounted for timely and accurately
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28
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Steps
Ensure routine monitoring of GL Account 16108 for data quality and completeness
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Responsible Party
Head of Office
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Template/Guideline
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Explanatory Notes
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English
Locations