Programme and Operations Policies and Procedures

 

Regular Resources

•  Core Contributions
•  Government Contribution to Local Office Costs (GLOC) from LIC and MIC
•  Government Local Office Cost (GLOC) Valuation of the In-Kind Contribution

Other Resources

•  Government Contributions from Net Contributing Countries (NCCs) and High Middle-Income Countries (High-MICs)
•  Non-Core Contributions
•  Revenue Management for Joint Programming
•  Accounts Receivable
•  Memorandum for Provision of Services (formerly Management Service Agreements)
•  US Letter of Credit (LOC) Agreements

UNDP resources and funding mechanisms fall into two main categories:

• Regular Resources: UNDP resources that are co-mingled and untied. These will include voluntary contributions, contributions from other governmental, intergovernmental or non-governmental sources and related interest revenue and miscellaneous revenue. 

• Other Resources: resources received for specific programme purposes, consistent with the policies, aims and activities of UNDP and for the provision of management and other support services to third parties. When a programme country government or another partner (also called third-party), such as a donor government, contributes resources to specific UNDP programmes or projects, the arrangement is known as cost-sharing. The revenue generated through cost-sharing forms part of the other resources of UNDP.
  
  Cost-sharing resources are fully integrated into UNDP's budget and are used in accordance with UNDP's mandates, regulations and rules. Cost-sharing co-mingles the funds used to cover the costs of a given set of project outputs, whether they come from UNDP's regular budget or are contributed by various donors. It does not result in the creation of a separate accounting entity.
  
  There are two types of cost-sharing agreements:
  ·        Programme Country Government cost-sharing, and
  ·        Third party cost-sharing