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Programme and Operations Policies and Procedures

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POPP>Financial Resources Management

Announcement

34. Inventory Management, July 13th, 2018

The latest Inventory Management procedure updates reflect the current inventory counts practice, which changed from a quarterly to a semi-annual occurrence.

33. Service Clearance Account (SCA), July 3rd, 2018

The policy update reflects an additional fee row through the automated process as per the 2018 UPL. Activity4 Travel management simple (1 travel management simple + 1 payment fee). 

32. GMS Fee Set-Up and Collection, June 12th, 2018

The latest procedure table updated with the most recent link to the Guidance note on GMS setup and reports.

31. Cost Recovery from Other Resources – GMS, June 12th, 2018

The latest Cost Recovery policy update reflects the recent change in the Green Climate Fund (GCF) Fee for Accredited Entities (AE). The revised GCF policy on AE fees continues to institute a fee cap up to a certain fixed percentage based on the total size of the project/program (i.e. the total of GCF funding and co-finance).

30. Attribution of DPC through a Stand-Alone DPC Project Procedures, April 20th, 2018

The procedures updated in accordance with the institutional budget allocations in 2018 and with additional Atlas queries to assist the quarterly review of expenses to attribute to development.

29. Combined Delivery Report (CDR) Policy, February 21st, 2018

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

  1. Offices are now required to 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 cumulative expenses. The 3rd quarter CDR will cover from January to September cumulative expenses; and the 4th quarter CDR will cover from January to December cumulative 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 is 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.

28. Service Clearing Account (SCA), Charging, Billing and Fee Collection, December 15th, 2017

The policy name has changed to Service Clearing Account (SCA) for non-Atlas UN Entities: Charging, Billing and Fee Collection. The following are changes made in the policy:

1. For UN entities who do not use Atlas (the "Non-Atlas agencies"), a dedicated Service Clearing Account (SCA) is established for each UN entity. Through SCAs, all global advance pre-payments from UN Agencies are recorded, and all services provided by UNDP offices to these UN entities are recorded. A dedicated Service Clearing Account is not applicable to Atlas Agencies (UNFPA, UN Women, UNU, UNCDF, UNV). For Common Services, please refer the NEW guidelines HERE.) 

2. To ensure the UN entity has sufficient funds deposited with UNDP in order for UNDP to provide services, a budget sufficiency check is performed based on the chart field combination of "Fund" (Atlas fund code 12000) and "Donor" (a dedicated donor code for each Agency). As long as the UN entity has enough funds deposited with UNDP, the budget check will pass and be valid.

3. The daily batch process posts the bills to debit the agency Service Clearing Account (SCA) and credit the CO income account respectively.

27. Memorandum for Provision of Services (MPS), December 12th, 2017

The new policy enables UNDP to provide management and support services that contribute to a programme government's results upon the agreement of the programme government. This modality cannot be used to deliver development results that UNDP is accountable to achieve under UNDP's programme. The MPS replaces the 2007 Management Service Agreement (MSA), where UNOPS was designated as a service provider.  

26. Expenditure of Income Accrued from Cost Recovery, November 9th, 2017 

Income earned from cost recovery, such as GMS fee from non-core programme projects (refer to POPP), implementation support services to UN Agencies based on UPL or LPL (refer to POPP UN Agency Services), administrative agent fee for joint programme and other adhoc service fees to external parties, together constitute a major funding source for institutional budget to fund management activities.

25. GMS Fee Set-Up and Collection, August 29th, 2017 

'Guidance note GMS setup and reports -2017' link fixed. (Procedure 1, Step 2)

24. Direct Project Costs Policy, April 26th, 2017 

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

23. DPC Implementation through Multiple Funding Lines for Positions Policy, April 26th, 2017

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

22. 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.

21. 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 pre-financing could be essential.

20. Creating and Approving Vendors, February 8th, 2017

To provide clarity, a 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.

19. Combined Delivery Report (CDR), January 1st, 2017 

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

18. 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.

17. Cost Recovery from Other Resources – GMS, January 1st, 2017

Adjustments to the POPP content on GMS income to reflect the changes arising from the 2017 enhanced planning exercise, including:
a.      A discontinuation of internal distribution of GMS income for all funds except those from Vertical Funds;
b.      A revised GMS rate calculator for UNDP, GEF, GFATM and MP projects
c.      Recording of DPC in relation to GMS exceptions.

16. 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.

15. 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.

14. 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.

  1. Withdrawal from UNFCU accounts:

1.     Staff members will be free to choose any withdrawal method offered by UNFCU.

    1. Withdrawal from staff member's account will be subject to the arrangement between the staff member and UNFCU; no withdrawal services through UNDP offices will be available after the implementation of this policy change.

2. 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.

13. 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 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.

12. 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.

11. 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.

10. 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 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.

9. 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.

8. 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.

7. 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.

6. 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.

5. 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.

4. 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.

3. 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."

2. Revised HACT Framework, February 13th, 2015

The revised HACT prescriptive content operationalizes the interagency 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.

1. New GL Account for Project Cash Advance, February 13th, 2015

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

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