| United Nations Development Programme

1	Step Manual Bank Accounts Reconciliation requires matching transactions from the AP, AR and TR sub-modules in Quantum with transactions from bank statements manually loaded via spreadsheet into Quantum. Once the spreadsheet is loaded, the automatic reconciliation button should be triggered to reconcile the statement and system side. Entries that match are marked as Reconciled in Quantum. Quantum will consider the values date in the statement as the reconciliation date.	Responsible Party GSSC B2B	Template/Guideline	Explanatory Notes
2	Step Processing and reconciling items that are in the bank statement and not in Quantum will depend on the nature of the transaction. Interest, Bank Fees and Forex Gain or Loss are recorded through External Transactions in Quantum. Specific Chart of Accounts are provided by the CO to charge Bank Fees. Interest and Forex Gain or Loss will be charged to the generic Chart of Accounts. The External Transactions created for Bank Fees and Interest will be immediately reconciled using the auto reconciled function. Once reconciled GSSC B2B must run the accounting entries for the External Transactions to be posted into the Cash General Ledger.	Responsible Party GSSC B2B	Template/Guideline	Explanatory Notes
3	Step Unidentified payments or deposits should be booked immediately in Quantum as AP invoices for payments or AR deposits for deposits once identified. In the case that payments or deposits remain unidentified as at the finalization date, the line item should remain pending in the statement lines with unreconciled status. Once identified and recorded in the following month after the closure of the previous period, the items should be reconciled and it will be posted into the Cash General Ledger in the open period where it is recorded.	Responsible Party GSSC B2B	Template/Guideline	Explanatory Notes
4	Step If you believe that the unidentified item in the bank statement is an error on part of the bank, the item will remain in the statement line and only reconciled once the reversal is reflected in the statement.	Responsible Party GSSC B2B	Template/Guideline	Explanatory Notes
5	Step After every Global Payroll run, whether it's monthly or semi-monthly, GSSC B2B will compare the payroll recorded in system in the manual reconciliation page with the payroll payment in the statement and reconcile it. Any discrepancies between system and statement are treated differently based on the tolerance. If the difference is within the allowed tolerance, the payment is marked as reconciled with the difference being transferred through journal entries from Cash Management to General Ledger and not through Payroll. In the case that the difference is outside of the allowed tolerance, the Payroll Manager and Country Office must resolve the discrepancy.	Responsible Party GSSC B2B / GSSC Payroll / CO Finance	Template/Guideline	Explanatory Notes

1	Step Opening an account with UNFCU: Contact UNFCU directly through the link provided.	Responsible Party Staff member	Template/Guideline UNFCU account opening form	Explanatory Notes
2	Step Once Account is approved, Submit the form “Authorization for Payroll Deductions – UNFCU deposits" to GSSC Local Payroll Team in KL (gssc.localpayroll@undp.org). *This gives UNDP a written consent to deduct funds from their salary. All deductions can be set in local currency or USD based on staff member's choice.	Responsible Party Staff member	Template/Guideline UNFCU Authorization for Payroll Deduction Form	Explanatory Notes Note: Personnel Services Agreement (I-PSA/N-PSA) holders are not permitted to use UNFCU unless exceptionally approved by BMS.
3	Step Enter the UNFCU 11 or 13 digit account number in Quantum HCM	Responsible Party GSSC Local Payroll Team in KL	Template/Guideline	Explanatory Notes UNFCU account number must be accurate and in correct format either 11 or 13 digits
4	Step Setup payroll deduction using a one-time or recurring entry page as appropriate and request for payroll calculation to pick up deduction.	Responsible Party GSSC Local Payroll Team in KL	Template/Guideline	Explanatory Notes
5	Step Accounting for Deposits by GSSC: Once ALL local payrolls have been finalized each month, run the UNFCU Quantum report listing UNFCU deductions for all offices, prepare voucher payment to UNFCU vendor and provide this information to the UNFCU directly, together with a list of staff and their UNFCU bank account numbers. Global Payroll interface automatically transfers these deductions to the GL account in the General Ledger. The deductions are verified by agreeing to payroll records. Raise a regular AP voucher with payment made by electronic funds transfer using TRF payment method to UNFCU Supplier ID 0000000123 in US Dollars. Notify UNFCU through the established channel and contacts.	Responsible Party Payroll Finance Unit, GSSC-KL	Template/Guideline	Explanatory Notes This process is centralized for all country offices and outposted HQ units. No UNFCU voucher permitted to be processed by individual country offices.
6	Step Withdrawal of funds: No withdrawal services will be provided through UNDP offices. Staff member will utilize the withdrawal methods provided by UNFCU.	Responsible Party Staff member/UNFCU	Template/Guideline	Explanatory Notes
7	Step Loan services from UNFCU Loan services, if any offered by UNFCU to locally recruited staff members will be subject to UNFCU rules and regulations.	Responsible Party Staff member/UNFCU	Template/Guideline	Explanatory Notes
8	Step When Contract Type changes to International Staff Category When a staff’s contract type is changed to international staff category, UNFCU payroll deduction should be discontinued. Staff may choose to continue using the same account to receive payroll in line with established procedures.	Responsible Party GSSC KL for clustered offices	Template/Guideline	Explanatory Notes
9	Step When Staff Separate UNDP will not provide any UNFCU related services for retirees. Staff member must consult with UNFCU prior to retirement if he/she wishes to continue using UNFCU services.	Responsible Party Staff member	Template/Guideline	Explanatory Notes

Step

Handling Cash Shipments - Information regarding the movements of cash must be restricted to the minimum number of people, on a need to know basis.
Communication of information regarding cash movements should be encrypted or coded, where possible. Where codes are possible they should be changed approximately every six months.
The timing of cash movements should be as unpredictable as possible. Vary flight schedules and ground routes. The frequency of such shipments should be weighed carefully against the risk arising from keeping the cash on the premises.
Where conditions permit, at least two security guards must accompany all movements of cash, in excess of US$50,000. The guards should be equipped with radio or telephone and have pre-arranged distress signals.
Arrangements must be in place to collect cash directly from the airplane or armored car upon arrival. Cash may not be stored in airport vaults, hotel rooms, unsecured offices or railway terminals etc.
Determine the feasibility of utilizing national law enforcement, armed forces or international or regional peacekeeping forces to enhance security.
To the greatest extent possible avoid using facsimiles, e-mail, the telephone or insecure radio frequencies to convey information about the movement of cash.
Cash transportation should be arranged and effected only after receiving prior written authorization of the Designated Official (DO) at the duty station.

Responsible Party

Operations Manager – Office,

Contracted Courier

Template/Guideline

Explanatory Notes

Procedures are designed by the Cash Manager after consultation with the Operations Manager.
The Resident Representative and Operations Manager must ensure that these procedures are followed during cash transfer and storage

Step

Physical Premises
Ensure that all windows and doors that are part of the area or room where cash is stored are sturdy and are securely anchored to the superstructure. Windows should be protected with steel grills, bolted from the inside.
Where possible, a burglary and anti –hold-up system with a direct link to 24 hour security staff should be installed in offices.
A 24-hour security service should be arranged

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Step

Control Procedures
Cash must be stored in a secured safe that is under dual control of designated UNDP personnel. The safe should be located in a locked room to which access is restricted. Keys to this room must be held by the DO at the duty station. It is preferable that there be two safes, one in the locked restricted room where the bulk of the cash would be stored, the other, in the secured finance area, to store the daily cash needs. This should limit the need for frequent access to the major safe.
Cash received on a daily basis by the Finance Section should be counted by two designated staff members under the supervision of the Operations Manager/ARR (Admin)/Administrative Officer or other designated Senior Staff, who signs-off on the amount of the count.
The smaller cash balances should be counted and reconciled daily, as should the major cash balance.
Surprise counts of total cash should be conducted randomly, with a minimum surprise count once monthly.
The designated "Safe Custodians" will be accountable for cash discrepancies discovered during cash counts.
Surprise cash counts should be done by a designated Senior UNDP Staff Member who does not have direct or supervisory responsibility for accounting for receipt and disbursements of cash.
Any cash theft should be reported immediately to the Treasurer and the Office of Audit and Investigations (OAI).
Decisions relating to the inclusion of local authorities should be made after consultation with the Office of Human Resources, BOM and probably reference to the United Nations Department of Safety and Security (UNDSS) at UNHQ.

Responsible Party

Treasury,

Resident Representative,

Operations Manager

Template/Guideline

Explanatory Notes

1	Step Budgeting for Hospitality Expenses	Responsible Party	Template/Guideline	Explanatory Notes The reimbursement method is the same for special events and vouchered hospitality, with the maximum reimbursable amount, per person, also being the same. Each organizational unit (bureau/division/office/country office/regional center) may budget for its hospitality expenses within the unit's overall management budget authorized spending limit. When necessary, the unit may budget separately for (additional) hospitality expenses within its extra-budgetary (XB) resources. When preparing the budgets, the organizational units should keep in mind the overall objectives of official UNDP hospitality. The hospitality budget is prepared in two segments: Hospitality – Special Events (including Fund codes, etc.); Hospitality – Vouchered Expenses (including Fund codes etc.). In country offices, the UNDP hospitality budget covers hospitality events undertaken/hosted by UNDP and hospitality events undertaken/hosted by the UN Resident Coordinator (RC). For the sake of transparency and in support of the separate [SB2] RC accountability framework, it is recommended that country offices budget separately for UNDP hospitality events and RC hospitality events in keeping with established rules for use of the RC funds. All hospitality expenses on behalf of an organizational unit must be charged to the approved hospitality budget, with the single exception detailed in the programme funds clause
2	Step Authorization	Responsible Party	Template/Guideline	Explanatory Notes Because of the special character of hospitality expenses, official UNDP hospitality events can only be authorized by the Head of the organizational unit (bureau/division/office/country office/regional centre). Each head of unit is responsible and accountable for ensuring that a hospitality expense is in accordance with the present hospitality guidelines. S/he must ensure that only appropriate hospitality expenses, reasonable and necessary, are charged to the Hospitality Budget
3	Step Ensure that a hospitality expense is in accordance with the present hospitality guidelines. Hospitality Budget	Responsible Party Head of Organizational Unit	Template/Guideline	Explanatory Notes
4	Step Ensure that only appropriate hospitality expenses, reasonable and necessary, are charged to the Hospitality Budget	Responsible Party Head of Organizational Unit	Template/Guideline	Explanatory Notes
5	Step Include, in a request for approval for an official UNDP hospitality event: Indicate the nature and specific purpose of the event and identify the persons invited, indicative listing UNDP personnel and Guests separately; Estimate the total amount to be reimbursed; Include a status of the balance amount available under the relevant budget; Be presented well in advance. (It should be noted that the approval of the hospitality event must be submitted with the actual claim for reimbursement)	Responsible Party	Template/Guideline	Explanatory Notes A request for approval of an official UNDP hospitality event must be made in advance and must:
6	Step Submission of claims Support claim with: The name and title of the Host; A description of the nature and specific purpose of the event; A statement of expenses and related invoices or paid invoices; List of guests actually attended the event – name, title and organization; List of UN staff members attended the event – name, title and organization; The pre-approval of the hospitality event by the head of bureau/division/office/country office/regional center. (It should be noted that the approval of the hospitality event must be Claims should be submitted within two weeks after the expense has been incurred or, for hosts on travel status, within two weeks of their return to their duty station. In either case, the claims must be submitted in the calendar year in which the hospitality event took place. Unless archived in accordance with the record retention policy , all original documentation related to payments towards hospitality expenses must be available in the custody of the Operations Manager and must be presented when required during audits. attached to the actual claim for reimbursement.)	Responsible Party	Template/Guideline F10 (Voucher for Reimbursement of Expenses)	Explanatory Notes When a UNDP staff member has hosted an official UNDP hospitality event and has incurred reimbursable costs in that connection, s/he must submit a claim for reimbursement using form F10 (Voucher for Reimbursement of Expenses). The claim must be supported by: Claims should be submitted within two weeks after the expense has been incurred or, for hosts on travel status, within two weeks of their return to their duty station. In either case, the claims must be submitted in the calendar year in which the hospitality event took place. Unless archived in accordance with the record retention policy, all original documentation related to payments towards hospitality expenses must be available in the custody of the Operations Manager and must be presented when required during audits.

1	Step Deliver Works	Responsible Party Supplier	Template/Guideline	Explanatory Notes Completion of Milestones/Works
2	Step Submit documentation for works completed	Responsible Party Supplier	Template/Guideline	Explanatory Notes Submit appropriate supporting documentation, such as a CP, Report, and Timesheet etc. for works completed, to supervisor (Project Manager / Requester).
3	Step Prepare the AP Invoice	Responsible Party Directly by the supplier through the Supplier Portal (preferred for transparency and efficiency of payment process) or indirectly via UNDP Finance Staff and managers	Template/Guideline	Explanatory Notes Submissions through the supplier portal are stored electronically. Finance staff are the custodians for the hard copies of the supporting documents. Finance staff / managers: Review the accuracy of the payment amount. Ensure that the payment modality is correct. Ensure that the Distribution and PPM chart field is correct. Confirm that payment has not already been paid. Verify supplier banking details. Ensure credit notes received will be offset against the amount paid. Ensure payments are entered into the system with the correct due date (term), so that payment can be scheduled in accordance with the agreed payment terms. In addition, for PO invoice, finance staff must: Ensure that the terms and conditions of payment are consistent with the PO or contract document; Verify, if the Project Manager (or his/her designate) has recorded satisfactory receipt of goods/services in Quantum (or confirm outside Quantum that services were delivered in case of travel payments) and attach to the invoice in Quantum, Bring any exceptions such as exceeding tolerance breaches, use of wrong account codes, currencies and accounting dates etc. to the attention of the approving manager who approved the PO. In addition, for non-PO Invoices, finance staff must: Verify that the request for non-PO payment is approved by the Project Manager (including where applicable, verifying of satisfactory receipt of goods/services); Verify if the payment does not require a PO (i.e. NIM/ DIM advances, advances to implementing UN Agencies, national utility payments, staff salary advances, etc.); Verify that the payment is in compliance with UNDP procedures; Obtain explanations for any exceptions from the Project Manager such as lack of a documented receipt, lack of adequate budget, lack of an expense authorization etc., and bring these to the attention of the Approving Manager, prior to his/her approval of the non-PO payment The invoice should be managed and stored in accordance with Records Management. Important dates for GMS computation in PPM and posting to GL - Non-PO Invoice: The date of the transaction shall be the invoice date (on the invoice header). If the supplier submits the invoice through the supplier portal, the invoice date defaults to the date that the supplier uploads the invoice, not to the date printed on the invoice. This is to ensure that payment due date is calculated appropriately. If the supplier sends the invoice to UNDP by post or by email, and a UNDP Finance User enters the invoice, the invoice date is defaulted by Quantum to today's date but should be manually changed to reflect the date printed on the supplier's invoice since Quantum derives accounting date, and all other dates, from the invoice date. Users should not adjust any date in Quantum other than the invoice date on the header when entering a transaction. The “accounting date” in Quantum is the basis for recording the transaction in UNDP’s ledgers and for recognising the expenditure for financial and donor reporting purposes. If the financial period of the invoice date is open, “accounting date” is the same as the invoice date; if the financial period is closed, “accounting date” is the first day of the earliest open financial period in Quantum. Expenditure should be recognised in the period it occurred or as close as possible if the earlier periods are closed. The “conversion date” is the date used to translate non-USD transactions to USD and is defaulted to the accounting date in the invoice header. The “budget date” is defaulted to the “accounting date” and should not be overwritten. The “expenditure item date” is defaulted to the accounting date Important note: when the transaction currency is in non-USD, the GMS amount is calculated on transaction currency (i.e. a local currency e.g., AFN) using the UNORE based on the "Expenditure Item Date".
4	Step Validate the invoice and initiate approval (optional for PO and Non-PO invoice, otherwise Quantum batch process will validate invoice and initiate approval every 4 hours beginning 6 am, NY time and again every other 4 hours)	Responsible Party Finance staff	Template/Guideline	Explanatory Notes The CO should review validation errors and fix them. Errors could arise from insufficient budget, budget period is not open, insufficient receipt or lack of receipt, wrong receipt line selected for matching, etc.
5	Step Correct errors related to inconsistent distribution combination and PPM chartfields and ensure all errors are corrected, validated and resubmitted for approval.	Responsible Party Finance Officer	Template/Guideline	Explanatory Notes
6	Step Approve AP PO Invoice PO Invoice is approved automatically once it is validated. If the amount excedes USD20,000 or equivalents, the PO Invoice requires 2nd approval by GSSC .	Responsible Party	Template/Guideline	Explanatory Notes Ensure that the details match the PO; Check the following agree to the PO Invoice: Goods received note (GRN) attached, Invoice information such as amount, currency, date supplier must be correct and consistent with the supplier invoice.
7	Step Approve non-PO Invoice CO needs to approve all Non-PO Invoices. If the amount exceeds USD5,000 or equivalent, the non-PO Invoice requires 2nd approval by GSSC.	Responsible Party CO approvers and GSSC approvers	Template/Guideline	Explanatory Notes Confirm that supporting documents are attached, correct dates including Expenditure Item dates are correctly stated, correct Paygroup and payment method are selected.
8	Step Follow up with relevant staff in the procurement office or with the project manager to ensure future due diligence when the error is on the supplier information.	Responsible Party Finance staff	Template/Guideline	Explanatory Notes
9	Step Follow up with suppliers on failures on their part, and return the goods and invoices, as required	Responsible Party	Template/Guideline	Explanatory Notes
10	Step File the signed and the approved AP invoice together with all supporting documentation	Responsible Party Finance staff	Template/Guideline	Explanatory Notes The following documents are mandatory and the hard copies must be attached as supporting documentation to the AP invoice: For PO voucher: Signed and authorized PO; Signed and authorized Receipt of Goods; Supplier invoice. For Non-PO voucher: For small value payments and for utilities provided by a Government – a receipt document is not required, but goods and services must be received before raising an AP invoice; However supporting documents such as requests for payment signed by the Project Manager and suppliers invoices must be attached. Agency services – Agency Service Request form duly signed and authorized by the appropriate agency official for Non-Quantum Agency payments; prepayments to Responsible Party –, FACE forms duly signed and authorized by the appropriate Responsible Party's official; Letter of Agreement (LOA) or Responsible Party Agreement(RPA), Low Value grant – LVG agreement, Request for payment or invoice from the grantee for subsequent payments after the first.

1	Step Invoices requiring attention (either "pending approval" or "rejected” or “invoices on hold” or “instalments on hold”) Regularly review the payables infolet/dashboard and undertake regular maintenance and monitoring.	Responsible Party	Template/Guideline	Explanatory Notes The invoices includes both unpaid and paid. The paid invoicess are generally those where a manual payment was made outside Quantum and subsequently linked to an invoice. Complementary information can be found in the link section on Quantum Financial Closure Instructions.
2	Step Review the invoices and take the following action as required: For unpaid invoices Consider whether a manual payment was made outside Quantum and, if so, link the manual payment to the invoice, approve and fund-check so that the invoice is considered complete; If the invoice is no longer needed, cancelit after Validation has been attempted. (There is no need to set the accounting date when deleting invoices since accounting has not yet been generated. The expense will be reversed in Budget Control according to the budget year the invoice was originally recorded in.) For unpaid and paid invoices if the invoice is for goods or services receipted on or before the closing date, ensure that the invoice is approved and fund-checked with an accounting date on or before the closing date	Responsible Party	Template/Guideline	Explanatory Notes OFM will take the following course of action for invoices that are still not approved after the monthly closure of the General Ledger Paid invoices. Management of each CO remains accountable for ensuring that payments made against these invoices were made in strict compliance with UNDP rules and regulations; Unpaid invoices. OFM will move the invoices that are not under approved status to next accounting period by the end of the monthly closure of the General Ledger. The list of such invoices will be extracted before they are deleted or cancelled, for future references and for audit trail. If payments still need to be made for any of these invoices, a new invoice must be created by the respective CO or HQ Unit.
3	Step Invoices with match exceptions	Responsible Party	Template/Guideline	Explanatory Notes Matching can be "two-way" or "three-way". Matching links POs with receipts and invoices, to help ensure that suppliers are not overpaid. The invoices includes both unpaid and paid. The paid invoices are those where a manual payment was made outside Quantum and subsequently linked to the invoice. In addition to actions described, refer to Overview of Matching Process, a guide for Quantum users, for help on the appropriate actions required to clear matching exceptions
4	Step Review the invoices with "pending approval" status and take the following actions: For approver Go to the requiring my approval tab under the invoices requiring attention dashboard, click on the item, review with the document attached and approve or reject if wrong Chart Fields or information have been input. For non-approver Go to the pending approval from others tab under the invoices requiring attention dashboard, check who is the approver and notify the approver to review and approve before the AP closure date. If you are unable to clear the exception, contact UNAll for further assistance. For IT support, please use the "Create Incident" service in the UNall service management portal	Responsible Party	Template/Guideline	Explanatory Notes
5	Step Review the invoices with “Rejected” status. Go to the rejected tab under the invoices requiring attention dashboard, check the reason of the rejection, amend/make correction accordingly and send for approval again. If you are unable to clear the exception, contact UNAll for further assistance. For IT support, please use the “Create Incident” service in the UNall service management portal	Responsible Party	Template/Guideline	Explanatory Notes
6	Step Review the invoices with “Invoices on hold” status. Go to the invoices on hold tab under the invoices requiring attention dashboard and take one of the following actions: For cases where funds could not be reserved for invoice line, check the budget set up in the budget control. Under such circumstance, the following actions must be taken. Confirm with the Project Manager if the Chart Field combination provided is correct; If it is correct and there is not sufficient funding for that particular Chart Field combination, the Project Manager should be informed and the Project Manager should conduct the appropriate project budget revision to ensure funding availability. For cases where total of invoice distributions/lines does not equal invoice amount, re-check the amount input and make correction. For the project cost attributes which failed business rule and transaction control validations, check the validation rule that stops the process and make correction on the attribute. For billed quantity exceeds ordered or received quantity; amount billed exceeds amount ordered; Invoice price exceeds purchase order price for PO or receipt matched invoice line and exceeds consumption advice price for consumption advice matched invoice line, adjust the purchase order, the invoice or the receipt accordingly. For Potential Duplicate Invoice for the supplier, invoice date and Invoice amount combination is identified, verify that this is not a duplicate.	Responsible Party	Template/Guideline	Explanatory Notes
7	Step Review the invoices with "System Hold" or "Instalments on hold" status. For instalment on hold, Go to the instalments on hold tab under the invoices requiring attention dashboard, check the reason of the payment hold and release payment once the issue stated in the reason resolved. For system hold, first identify the reason of hold on the invoice status, then go to the invoice actions and select Manage Holds. Release hold once the issue stated on the reason resolved.	Responsible Party	Template/Guideline	Explanatory Notes

1	Step PPR – selection of invoices for payments: Set criteria by selecting date range, currency, payment method and bank account – Pay Group	Responsible Party Finance staff	Template/Guideline	Explanatory Notes
2	Step Review invoices selected by PPR prior to disbursement: Check all details of supporting documents of approved AP invoices; Where this is not practical due to large volumes, the batch should be reviewed for reasonableness; Check unusual AP invoices, such as those with large amounts, unfamiliar Supplier names, unfamiliar/unusual disbursement to staff, etc. Print the list of invoices selected (known as the Pay List) and use to control issuance of cheques in those cases where cheques are collected from the office (see below); Mark rejected payments on the pay list; Sign, date and file a copy of the Pay List to evidence internal control review of cheques; Instruct finance staff to void or cancel rejected payments as appropriate. Senior Finance Officer Key internal control – the 3rd and final approval on expenses	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes Key internal control – the 3rd and final approval on expenses
3	Step Void or cancel payments as instructed by Senior Finance Officer in cases where invoices are not approved	Responsible Party Finance staff	Template/Guideline	Explanatory Notes
4	Step Present cheques for signature together with supporting documentation: Agreed amounts and payee to approved AP invoices	Responsible Party Cheque Signatories(Dual signatories )	Template/Guideline	Explanatory Notes Cheques must be signed by at least two signatories
5	Step Manual Payments Select "record" option on the payment tab of a given AP invoice to effect payment; Add cheque number or payment reference, as appropriate; Manually raise a cheque, where appropriate, taking care that the amount, date, payee and cheque number match the Quantum entry.	Responsible Party Finance staff	Template/Guideline	Explanatory Notes Manual Payment is best used to record those items that are on bank statements but not in the cash book, such as interest and bank charges, where an entry to the cash book is required but issuing a cheque is not QUANTUM queries and reports can be used to monitor the payment exceptions
6	Step Review of Manual Payments – review the following prior to signature and dispatch: Agree all amounts, currencies, payees and dates to approved AP invoices; Repeat step 3 above for signature of Manual Payment	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes
7	Step Timeliness of recording entries in Quantum Ensure that an entry is made in Quantum before issuance of a cheque to a Supplier. In emergency situations only, record manual payment in Quantum after issuance of the cheque. Even then, every effort must be made to complete the Quantum record within 48 hours of issuance of the cheque. Communicate, in writing to the Treasurer, any instance where payment cannot be recorded in Quantum within 48 hours after issuance of a cheque to a Supplier	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes As the recording in Quantum and the manual raising of a cheque are two separate tasks, careful attention is required to ensure that an entry is made in Quantum before issuance of a cheque to a Supplier
8	Step Issuance, signature and safeguarding of checks: Keep cheques that are not immediately mailed or delivered to payees in a secure location within the Finance Unit, and placed in the safe during non-working hours Following issuance and signing. During working hours, the cheques must also be kept in a secure manner in the custody of the responsible officer; Compare cheques with the Pay List before releasing them to payees when held for pick up; Maintain a register for issuing cheques. The proof of identity of the payee must be provided and recorded on the cheque register along with the signature of the recipient; In the event that a cheque is not collected within 5 days of issuance, it must be cancelled and reissued when required.	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes
9	Step Management of cheques: Request the bank to provide serially numbered cheques. If no such serial numbering system exists, the field office must number the cheques serially, in ink, starting with No. 1, upon receipt of the cheques. The numbering sequence must be continued without interruption for cheque books received subsequently. Advise the Treasurer if, for any reason, the local bank is unable to provide cheques bearing the official name of the account.	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes The stock of cheque books must be controlled by a register. All cheques must be accounted for. Only one cheque book must be used at any one time for each bank account; spare cheque books must be kept in the custody of the Representative or his/her delegate. Cheques should not have erasures or corrections. If a mistake is made in any field on a cheque, it should be voided and a new cheque prepared. Cheques must be made out to a payee who is the provider of goods and/or services as evidenced by supporting documentation and should be the same as the Supplier record in Quantum. Cheques should never be made out to third parties or to non-defined payees (e.g., bearer, cash). Country offices are required to send cheques together with the deposit slip to the Treasurer for deposit to the ZBA account if the cheque is greater than USD 50,000 in value and is not drawn on a local bank. The cheque items should be listed in the summary of enclosures accompanying the pouch. The deposit slip must indicate the Quantum chart of account to credit and the purpose of the dollar payment (e.g., refund of unused airline tickets). Each country office must have a secured safe where unused cheque books and, if necessary, official monies can be stored. Under no circumstances should personal property or monies be held with UNDP monies in the UNDP safe. Country offices which are authorized to operate cash accounts in the office should prepare a certified daily count of monies on hand
10	Step Management of lost or damaged cheques If a cheque is lost or damaged, a letter to the bank should be prepared to stop payment. The letter should contain the following information: date the cheque was issued; payee; and amount. Send requests for stop payments on zero-balance accounts to the bank with a copy to the Treasurer. Send a letter of indemnity (Form F.18) to the payee of the lost cheque. Return the signed original to the country office. Cancel the invoice against which the lost cheque was originally issued will be cancelled upon receipt of the bank's confirmation that they have stopped payment on the cheque and received the signed letter of indemnity from the payee. Void the payment invoice in Quantum to reverse the payment entry. Include the invoice in the next PPR or use manual payment to create a replacement cheque / EFT	Responsible Party	Template/Guideline	Explanatory Notes In the event that a damaged cheque is returned, the same procedures for a lost cheque as described above shall be used; however, no stop payment order or a letter of indemnity is to be issued. The damaged cheque must be retained for account reconciliation
11	Step Management of voided checks and checks returned without encashment If a cheque is returned un-cashed by the payee, or needs to be voided due to error in preparation, it should be voided and the payment placed on hold with reissue. A new cheque can then be issued. The voided cheques must be retained. Any cheques outstanding for clearance for 2 months or more must be followed up with the payee. If, upon investigation, it transpires that the cheque has been lost, the procedure outlined above for lost cheques must be followed. If the cheque is located, but cannot be honored by the bank because of the old date or some other imperfection, it must be returned by the payee, voided and replaced with a new cheque. The voided cheque must be retained. If there are any cheques outstanding for 6 months or so in spite of all steps taken to follow up of outstanding cheques, payment for such cheques must be voided and the procedure outlined above followed. In line with the above, all cheques on UNDP bank accounts must indicate "Not valid after X days", where X equals the local period of validity	Responsible Party Finance staff	Template/Guideline	Explanatory Notes
12	Step Review exception reports listed on the Finance Dashboard relating to AP and PO invoices: Take action to ensure exceptions cleared on a timely basis	Responsible Party Senior Finance Officer	Template/Guideline	Explanatory Notes Key internal control

Step

Create Pre-payment – Create Purchase Order

Responsible Party

Template/Guideline

Explanatory Notes

In order to make a prepayment, an approved purchase order (PO) for the entire procurement transaction (not just the prepayment amount) must exist in Quantum. See Purchase Orders/Commitments.

Step

Complete Prepayment invoice Request (Prepayment) form

Responsible Party

Staff

Template/Guideline

Explanatory Notes

Based on pro-forma invoice, contract, or other supporting documentation, a Prepayment Invoice Request form is completed, referencing the related approved PO#. The Prepayment Invoice Request form along with a hard copy of the PO and all other supporting documentation must be forwarded to the Project Manager for approval.

The Payable Infolet-Prepaid shows all aged & outstanding prepayments which can be exported to Excel.

Step

Review Prepayment Invoice Request Form

Responsible Party

Project Manager

Template/Guideline

Explanatory Notes

Review the Prepayment Invoice Request form and supporting documentation and decides whether or not to approve. If approved, the Prepayment Invoice Request form and supporting documentation are forwarded to Finance.

Step

Create Prepayment Invoice

Responsible Party

Template/Guideline

Explanatory Notes

Create and complete the prepayment invoice with supporting document in Quantum, validate and initiate approval. Quantum will automatically route to designated Approving Manager who needs to check PO reference (if any), COA (which includes only GL distribution combination) and supplier information. The project segment of the CoA should not be included in the prepayment invoice given that the PO has already encumbered resources at PPM level during the approval process. Upon liquidation of the prepayment the full project COA is required, which includes the PPM segment.

Step

Approve the Prepayment Invoice

Responsible Party

Template/Guideline

Explanatory Notes

Review supporting documentation and approve the prepayment invoice in Quantum if appropriate. Unlike in the case of a standard PO matched invoice, the information from the PO is not automatically copied on the prepayment invoice. Therefore, approving manager should ensure that:

The amount and timing of the prepayment are consistent with the contract, agreement, TOR, PO, etc.

The supplier and COA (GL Segment only) are correct.

Step

Disburse the prepayment

Responsible Party

Template/Guideline

Explanatory Notes

Disburse the prepayment once the prepayment invoice is approved by the Approving Manager.

Step

Prepare and send letter to bank to open Zero Balance Account (ZBA). Request appropriate payment and reporting mechanisms for the account and ensure that all mechanisms are functioning after account is opened

Responsible Party

Treasurer,Cash Manager and treasury System Analyst

Template/Guideline

Explanatory Notes

Ensure timely reporting through Online Banking Platforms, Positive Pay (for Bank America) daily bank statement import to Quantum, Fed Wire and ACH payment ability

Step

Country Office uses the Zero Balance account to fund local currency needs by self –replenishment and make supplier/staff payments. Replenishments and supplier/staff payments are done by checks or Electronic Funds Transfer (EFT). Country offices should use HQ bank accounts not ZBA to receive contributions and reimbursements from other UN Agencies and staff.

Responsible Party

Template/Guideline

Explanatory Notes

All payments from the ZBA must be created and approved in Quantum before they are sent out to supplier/staff. All receipts to ZBA must be booked in Quantum within one business day. Tardy booking of ZBA transactions will delay and complicate ZBA bank reconciliation

Step

ZBA’s will have intraday net debit or credit balances. Where there is a net debit balance, the balance at the end of the day is brought to zero by a transfer from the ZBA Master Account to the ZBA. Where a ZBA has a net credit balance at the end of the day, this credit balance is transferred to the Master Account to bring the ZBA balance to zero. These end-of-day transfers are automatically done by the bank holding the Master ZBA and accounted for by Quantum after the bank statements are uploaded into Quantum. Uploads are normally done one business day after the transaction date recorded by the bank.

Responsible Party

Template/Guideline

Explanatory Notes

Timely bank reconciliations will identify errors and anomalies

Step

The Master ZBA is funded daily by Treasury to ensure that sufficient funds are available to offset daily total net disbursements by country offices. Country offices must inform Treasury of any payment for USD 500,000(or Euro equivalent) or more from their ZBA in order to prevent an overdraft in the Master ZBA.

Responsible Party

Template/Guideline

Explanatory Notes

Close daily monitoring of the disbursement trend from Master ZBA is necessary. Senior Treasury Associates must also be aware of periods of increased expenditures - for example, the final quarter of the year

Step

Previous day electronic bank statements for bank accounts that are part of the UNDP Global Interface are reported and uploaded daily using the following navigation in Quantum:

Cash Management>Bank Statements and reconciliation. Each bank statement is loaded with a statement ID, statement end date and numbers of statement lines.

Responsible Party

GSSC B2B

Template/Guideline

Explanatory Notes

Establish controls to ensure that uploaded statements match with those reported.

Bank statements may be reviewed in Quantum by using the following navigation.

Reports and Analytics>Browse Catalog>Financial>Cash Management>Bank Statements>

Step

Opening and closing bank balances are also automatically loaded into Quantum. The balances can be viewed at the following navigation in Quantum: Cash Management>Bank Statements and reconciliation>Task Bar>Bank Statements>Manage Bank Statements

Responsible Party

GSSC B2B

Template/Guideline

Explanatory Notes

Opening and closing bank balances may be manually loaded using the following navigation.

Cash Management>Bank Statements and reconciliation>Task Bar>Bank Statements>Create Bank Statements

Step

Automatic Reconciliation is run as a batch process centrally and reconciles transactions from the most recent bank statements loaded to Quantum with transactions from Accounts Payable (AP), Accounts Receivable (AR) and Treasury (TR) sub modules.

Responsible Party

GSSC B2B

Template/Guideline

Explanatory Notes

Step

The Automatic Reconciliation Exceptions
For each one to one automatic reconciliation rule, exceptions are looked for in the following order:
1)    Ambiguous - This exception occurs when either there is more than one application transactions that could match to the line or the transaction could match to more than one statement line.
2)    Date - This exception occurs when a system transaction meets all the matching criteria except the date of the transaction is out of the tolerance range.
3)    Amount - This exception occurs when a system transaction meets all of the matching criteria except the amount of the transaction is outside the tolerance range.

Responsible Party

GSSC B2B

Template/Guideline

Explanatory Notes

Transactions with exceptions are required to be investigated and reconciled by GSSC B2B

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Policy Areas

Preparation and Review of Manual Bank Account Reconciliation

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UNFCU Share Account Management

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Management of Cash in Crisis or Emergency Situations

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Hospitality Expense

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