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Programme and Operations Policies and Procedures

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POPP>Financial Resources Management

Announcement

Combined Delivery Report (CDR) Policy

January 1st, 2017

The updates are intended to reduce the staff burden and expedite compliance process in respect of CDRs.

  1. Offices are now required send CDRs to Implementing Partners (IPs) for verification and signature, only for the 2nd, 3rd and 4th quarters of the year. The 2nd quarter CDR will cover January to June expenses.
  2. If no response is received from the IP within 30 days, a follow-up request should be sent indicating that "the Combined Delivery Report will be deemed accepted if no response received within 15 calendar days. Copies of the CDR (or evidence of follow-up where no responses are received), should be uploaded to the CDR Library (in UNDP's Corporate Planning System) no later than 45 calendar days after the end of each quarter.

Expenditure of Income Accrued from Cost Recovery Policy​

January 1st, 2017

The policy provides clarification and guidance as to how to use differentiated funding codes to track allocation, revenue, and expenditure on core and non-core institutional funding lines. This reflects the Cost Centre approach recently approved by the Executive Group.

 
Procedure on Recording Contribution from International Financial Institutions (IFIs) and Development Banks

June 22nd, 2015

Contributions from IFIs and Development Banks to UNDP rose by 44% in 2016 compared to the previous year. In addition to IFI direct contributions, it is important to record indirect contributions received via Government Cost Sharing (originating from loans to governments). As a result, an additional procedure to the Non-Core Contribution Policy ​was created to provide a guidance on how to record contributions from IFIs and development banks, with a list of fund codes to be used for loans, and a list of donor codes to be used for grants. 
 

Direct Project Costs Policy

April 26th, 2017 

A new fund code and operational procedures have been clarified for Expert Advisory Services provided by the Headquarters' staff. 

DPC Implementation through Multiple Funding Lines for Positions Policy  

 

April 26th, 2017

A new position type "Structure Post (SP) – Direct Project Costing" in Atlas is available to track the positions better that routinely provide project implementation support services (UPL/LPL based) or advisory services through Development Effectiveness (DE) fund source.

Use of Universal Price List (UPL) and Local Price List (LPL) for Attributing DPC Policy  and Attribution of DPC through a Stand-Alone DPC Project Policy

April 26th, 2017

DPC account codes with better definitions to attribute UPL/LPL based services and DE advisory services have been added.

Attribution of DPC through a Stand-Alone DPC Project Policy

April 26th, 2017

A new fund code has been provided for CO stand-alone projects where a pre-financing could be essential.

GMS Fee Set-up and Collection

January 1st, 2017

Adjustments to the POPP content on GMS income to reflect the changes arising from the 2017 enhanced planning and budgeting exercise, including:

  • A discontinuation of internal distribution of GMS income for all funds except those from Vertical Funds, which are the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM); Global Environment Facility (GEF); Green Climate Fund (GCF); and Montreal Protocol (MP); and
  • A revised GMS rate calculator for UNDP, GEF, GFATM, and MP projects
Creating and Approving Vendors  

February 8th, 2017

To provide clarity, a background note on Background Note on Global Economic Sanctions and Procedural Guidance has been added to a procedure for creating and approving vendors. UNDP must facilitate each bank’s exercise of its obligations by providing full, accurate and complete information about a payment and the beneficiary. This information may be captured at different stages of procurement or accounts payable processes, but in all cases, the preparer must capture full and complete information.

Updated Purchase Orders (Commitments, Maintenance and Closure)

November 30th, 2016

For greater efficiency and better financial tracking, offices are now able to set up multi-year POs for projects that have future year resources and budgets. This allows UNDP to better track deliverables of a supplier for a given procurement action through a single PO reference. When raising multi-year PO lines in Atlas, offices must ensure that corresponding multi-year budget and resources are available. For projects where Annual Spending Limits (ASLs) are limited to one year, multi-year PO lines should not be used.

Previously, goods or services, which are expected to be received over more than one financial period, a separate PO had to be raised for each of the respective financial periods, and offices were requested to close POs annually. Multi-year contracts for projects were also maintained outside Atlas. Such requirements are no longer relevant. For questions on this process, please contact Helen Hall at helen.hall@undp.org, the Chief of Account, Office of Financial Resources Management, Bureau for Management Services.

Updated Atlas Financial Closure Instructions

November 29th, 2016

We have reflected the International Public Sector Accounting Standards (IPSAS) closure process and linked the technical year-end closing guidance.

Revised UNFCU Share Account Management

August 5th, 2016

Following the recommendations of the High Level Committee for Management (HLCM) Finance and Budget Network to foster interagency harmonization, UNDP has made changes to the existing policy and arrangement for UNFCU Share Account Management for locally recruited staff. Following are the highlights of the policy changes:

  1. Deposit into UNFCU accounts:
    1. UNFCU accounts will no longer be treated as restricted accounts. Restrictions, if any, to any account or its operation will be purely subject to UNFCU rules and regulations.
    2. Staff members will be able to deposit their salary or portion of into UNFCU accounts through payroll administration as it is in the current process. The current limitation of 50% of monthly gross salary will no longer be applicable to deposit into UNFCU accounts.
  2. Withdrawal from UNFCU accounts:
    1. Staff members will be free to choose any withdrawal method offered by UNFCU.
    2. Withdrawal from staff member’s account will be subject to the arrangement between the staff members and UNFCU; no withdrawal services through UNDP offices will be available after the implementation of this policy change.
  3. Implementation timeline: This change will be implemented effective with August payroll. Locally recruited staff members who maintain accounts with UNFCU are encouraged to contact UNFCU with any questions. After August 2016, UNDP offices will no longer provide withdrawal services. The UNFCU dedicated contact for this change is:

            Email: LocalStaff@unfcu.com  Call: +1 347-686-6000 or go to www.unfcu.org/toll-free-numbers for toll free international numbers.

New Policy on Provision of Services to UN Entities

April 5th, 2016

The Policy provides measures to address UN clients' needs to obtain service provision at the Regional Hub and Global Shared Service Center levels to collaborate with, and support for Country Offices. This Policy also clarifies institutional arrangements for corporate Framework Agreements at Headquarters level, and Service Level Agreements for technical details to avoid duplication of efforts and arrangements.

New Universal Price List (UPL) and Local Price List (LPL)

November 5th, 2015

This Policy clarifies cost drivers of UPL for standard services and provides a step-by-step guide to formulate LPL. This also incorporates three main options for implementing DPC, which are 1) application of the CO workload study results, combined with multiple funding lines for posts; 2) application of the Universal Price Lists (UPL) or Local Price List (LPL) for transactional costs recovery; and 3) creation and management of a stand-alone DPC project.

Revised Direct Implementation (DIM) Reporting

September 14th, 2015

The requirement for Regional Bureaus to submit annual consolidated reports on directly implemented (DIM) projects has been removed.

New content on the Valuation of the In-Kind Contribution from the Host Government

May 20th, 2015

As part of improving UNDP's application of IPSAS, new content on the Valuation of the In-Kind Contribution from the Host Government provide Bureau and Country Offices guidance on the valuation of GLOC In-Kind Contributions, and the procedures to follow to facilitate a systematic and structured regular valuation and revaluation of in-kind contributions received from the host Governments. The valuation of the in-kind contribution will form the basis for GLOC-in-Kind contribution that is taken into account in determining annual GLOC Targets for host governments.

Revised section on General Management Support (GMS) fee Set Up and Collection

May 20th, 2015

The General Management Support (GMS) fee Set Up and Collection section of the POPP has been revised to reflect the changes to GMS rates and GMS distribution, with a new link to the revised GMS calculator. Under the new guidance, offices should note that only "earn-as-you-go" method of GMS computation should be entered when setting up projects in the Atlas grants module. OFRM is working with OIST to reflect the GMS changes in Atlas and a separate communication will be issued when the setup is completed.

Revised content on Cost Recovery from Other Resources - (GMS)

May 20th, 2015

Revised Cost Recovery from Other Resources - GMS POPP content have been issued to operationalize the Harmonized Conceptual Funding Framework approved by the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN. The guidelines reflect the new GMS rates approved by UNDP's EB (EB decision 2013/9) effective 1/1/2014, and the new GMS distribution rates approved by UNDP's Executive Group in January 2015. The content details the Management Activities that should be funded from GMS income, and the transition required for non-Management Activities that were previously funded from GMS. The revised policy also highlights the key messages on Cost Recovery that offices need to understand and convey to UNDP's development partners.

New Guidance on UNDP's Harmonized Funding Framework

May 20th, 2015

New Guidance on UNDP's Harmonized Funding Framework has been posted in POPP and reflects the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN to harmonize the classification and attribution of programme and organizational costs and highlights how this has been reflected in UNDP's integrated budget. The harmonized framework covers the realignment of resources between Regular and Other Resources to help successfully deliver on the results outlined in UNDP's Strategic Plan.

New Direct Project Costing (DPC) Policy

May 10th, 2015

This policy is based on the Harmonized Conceptual Funding Framework and Cost Recovery Methodology. Direct project costs are organizational costs incurred in the implementation of a development activity or service that can be directly traced and attributed to that development activities and/or services. These costs are included in the project budget and charged directly to the project budget.

Revised National Implementation (NIM) Chapter

May 8th, 2015

The revision reflects that the HACT macro- and micro-assessments is the basis for selection of the cash transfer modality used for each implementing partner (IP) and the level of assurance activities used for the IP. The revision also reflects UNDP support services to NIM in terms of requisitions, procurement and accountability. Audit reports of NIM and NGO implemented projects can be shared by UNDP with the Government Coordinating Agency, in addition to supreme audit institution and implementing partner. The audit becomes due in the year following which the cumulative expenditure has reached or exceeded the threshold of $300,000.

Revised Refund to Donor Policy (minor change)

March 18th, 2015

This policy introduced the following new text as part of required procedures to refund to donors. "The AP voucher must be processed as soon as practicable after the transfer of funds to account 21030 and after the donor provides written confirmation of its bank account details."

Revised HACT Framework

February 13th, 2015

The revised HACT prescriptive content operationalizes the inter agency agreed HACT framework (2014) in UNDP. It clarifies relevant processes/procedures in UNDP as well as provides additional clarifications of UNDP-specific requirements for the purpose of implementing the UNDG-approved revised HACT framework in UNDP. This prescriptive content shall be read in conjunction with the revised HACT framework (including all appendices) issued by UNDG as well as the UNDP NIM/NEX Manual issued in July 2011.

New GL Account for Project Cash Advance

February 13th, 2015

The GL Account for Project Cash Advances has changed from 16007 to 16108.

Language English | Español | Français
Page Properties
Focal Point
Helen Hall,George Kyriacou
Effective Date
01/01/2012
Planned Review Date
None
Summary of Changes/Comments
Minor -- focal point.