Skip Ribbon Commands
Skip to main content

Programme and Operations Policies and Procedures



Please Wait ...Processing
POPP>Financial Resources Management>Pipeline and Revenue Management>Government Contribution to Local Office Costs (GLOC) from LIC and MIC
Government Contribution to Local Office Costs (GLOC) from LIC and MIC
1.0 Relevant Regulations and Rules
UNDP Financial Regulations and Rules (2012)
Financial Rule 118.08 a - c
2.0 Policies
Main Policy
Government Contribution to Local Office Costs (GLOC) from LIC and MIC
 Related Policies
IPSAS 23 Policy Paper
3.0 Procedures
Main Procedures

Government Contribution to Local Office Costs (GLOC) from LIC and MIC

Loading .. Please Wait!!

Language English | Español | Français
Page Properties
Key Words
None
Focal Point
George Kyriacou
Effective Date
01/05/2020
Planned Review Date
01/05/2023
Summary of Changes/Comments
January 08, 2021 - The GLOC from LIC and MIC (Low- and Middle-Income Countries) policy is now available in French. To access the document, click on the French language tab.

November 19, 2020 - The Government Contribution to Local Office Costs from LIC and MIC policy and procedures have been updated based on the previously announced accounting policy changes for contributions.
The summary of the changes and their implication on UNDP Offices are:
• With a few exceptions, the announced accounting policy changes for contributions, require the full revenue, including for future periods, to be recorded in the year an agreement/or other binding document is signed and not upon the receipt of cash.
• The recording of the revenue in Atlas remains with the GSSU Revenue team. UNDP Offices are required to submit the signed agreements to the GSSU within 1 week after an agreement is signed via the Service Request Portal : https://undp.custhelp.com/app/main.
• The policy revision did not change the ability for UNDP Offices to spend or enter into commitments in Atlas which is still dependent on funds being received (except for USAID Letters of Credit where the current process of enabling the spending ability in Atlas remains unchanged). As is currently the case, UNDP Offices can only incur expenditures or enter into commitments upon receipt of funds or by following budget override procedures outlined in the UNDP’s Risk Management Guidelines.
• For UNDP Offices receiving funding from MPTF, in the past UNDP Offices have been submitting the signed disbursement notifications to GSSU but going forward, the full approved amount committed to UNDP should be provided. Therefore, UNDP Offices should provide the signed Project Document (ProDoc) and the Steering Committee minutes that reflects fully the approved amount for UNDP and not just what is being disbursed in the next tranche.
• Country Offices are required to submit signed amendment agreements/ letters/amendments within 1 week of signing the agreements/amendment to GSSU so that the revenue can be recorded or adjusted accordingly.
• At the end of every year, the Head of Office will be required to certify in the annual assertion that all signed agreements/amendments to agreements have been submitted to GSSU on a timely basis prior to the closure of the financial ledgers. This will help ensure that UNDP revenue is captured in a timely manner as any late submission of these documents poses a significant management reporting risk and audit risk as revenue will not be reported accurately in the UNDP financial statements, including quarterly financial statements.
• For the POPP on Government Contributions to Local Office Costs (GLOC) from Low and Middle Income Countries (LIC and MIC), a new GL account (i.e. GLOC – Gov contr Locl Cost Future – 51017) was created to track cases, if and when host governments settle their cash targets in advance, especially when a multi-year target is successfully negotiated.

September 24, 2020 - Paragraph 16 was added to the Government Contribution to Local Office Costs (GLOC) from LIC and MIC policy. The paragraph was added to reflect decisions adopted by the Executive Board during the second regular session in 2020. GLOC contributions are a major funding source for country offices’ core institutional budgets, and their utilization is subject to UNDP Financial Regulations and Rules. The Executive Board (EB decision 2020/14) recognizes the importance of host government contributions to UNDP local offices costs, and encourages UNDP to work with the respective governments to agree, where possible, to annual and multi-year contributions.

June 03, 2020 - The GLOC from LIC and MIC (Low- and Middle-Income Countries) policy is now available in Spanish. To access the document, click on the Spanish language tab.

May 01, 2020 - The revised GLOC from LIC and MIC (Low- and Middle-Income Countries) policy provides a detailed explanation of GLOC formulation from host governments in low- and middle-income countries, along with a computation of annual cash targets, recent flexibilities in target setting, and tracking and reporting of annual cash targets and payments. The procedures section has also been updated with the most recent reporting tools and guidance notes.

December 2015 - Content reviewed and edited (without changing substance).

Version#
8