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Programme and Operations Policies and Procedures

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POPP>Financial Resources Management>Resource Planning and Cost Recovery>Cost Recovery from Other Resources - GMS
Cost Recovery from Other Resources - GMS

1.0 Relevant Regulations and Rules
Executive Board Decision 2013/9
Roadmap to the integrated budget: Joint UNDP, UNFPA and UNICEF review on the impact of cost definitions and classification of activities on harmonized cost-recovery rates

UNDP Financial Regulations and Rules (2012)
Financial Rule 118.08 a - c
Regulation 21.02
Regulation 5.07
2.0 Policies
Main Policy
Cost Recovery from Other Resources - GMS
 Related Policies
Harmonized Conceptual Funding Framework and Cost Recovery Methodology
GMS Fee Set-up and Collection
The Universal Price List (UPL) and the Local Price List (LPL)
United Nations Agencies Services
3.0 Procedures
Main Procedures

Cost Recovery from Other Resources - GMS

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Language English | Español | Français
Page Properties
Key Words
Focal Point
Andrew Rizk,Hnin Hla Phyu
Effective Date
Planned Review Date
Summary of Changes/Comments

August 27, 2021 - Updated the links on the Related Policies section. Updated links on step 2 of the Procedures table. Added template for inter-office memorandum on step 3 of the Procedures table.

June 11, 2020 - On June 11, the EG approved BMS’ recommendation to change the policy on the application of the GMS rates for International Financial Institutions (IFIs). A GMS rate of 5% is now applicable for all IFIs with an annual volume that exceeds $50M for loan or credit guarantee implementation support. The current GMS rate of 8% will continue to apply for grant financing, and to financing from IFIs below the annual volume threshold.
A Guidance Note on GMS (Indirect Costs) for International Financial Institutions is available as a hyperlink in the table under clause 7 of the Cost Recovery from Other Resources - GMS policy and is available in the POPP library (document ID POPP-11-3262).

April 15, 2020 - A table in clause 7 of the Cost Recovery from Other Resources - GMS policy was updated to include an additional line to clarify applicable cost recovery rates for the resources for Engagement facilities.

June 21, 2019 - The Cost Recovery from Other Resources - GMS policy was amended as follows in order to provide greater clarity. The various costs that are funded from projects and GMS are now presented in paragraph 17 instead of hyperlinks.

March 22, 2019 -The Cost Recovery from Other Resources - GMS policy is now available in French. To access the document, click on the French language tab.

January 17, 2019 - Section 7 of the Cost Recovery from Other Resources - General Management Support (GMS) policy was updated to reflect that regarding agencies’ contribution to RCO activities, GMS should be applied in line with the corporate cost recovery policy, since the 2016 Advisory note for the UNDG Cost Sharing Funds for the RC system no longer applies and is hereby revoked as of 1 January 2019.

September 11, 2018 - The following disclaimer was added to the Spanish translation of the Cost Recovery from other sources GMS policy: “This document was translated from English into Spanish. In the event of any discrepancy between this translation and the original English document, the original English document shall prevail. / Descargo de responsabilidad: esta es una traducción de un documento original en Inglés. En caso de discrepancias entre esta traducción y el documento original en inglés, prevalecerá el documento original en inglés.”

June 12, 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).

April 16, 2018 - The Cost Recovery from Other Resources - GMS main policy is now available in Spanish. To access the document, click the Spanish language tab.

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.