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Project Petty Cash Fund (PPCF) Procedure

1
Step

Procedures for PPCF are the same as PCF Procedures except for the key differences listed below:

  • Authority is delegated to the RR only (not to be further delegated) to appoint a holder of Personnel Services Agreement (NPSA/IPSA) as the Custodian for PPCF. When the PPCF Custodian is a NPSA/IPSA, the replenishment request must be reviewed and approved by the Operations Manager and above, not by the Project Manager or the manager for the project office. (Refer to further guidance in ICF)
  • The CO's main office is required to review and approve the PPCF monthly APJV and the Operations Manager must certify the monthly reconciliation.
  • If the total of all PPCFs (whether one PPCF or multiple PPCFs) required is higher than the maximum level, the Head of Office must send the request to Treasurer for approval (see Annex 5: Request for Treasury Approval).
  • The GL Account for Project Petty Cash Fund_PPCF is 16106.
  • The chart fields ('COA') for PPCF AP non-PO Invoice, APJV and AR Direct Journal must be filled with the following data:

a)     Account = 16106

b)     Fund =  relevant fund code for the project

c)     Operating Unit

d)     Dept

e)     Impl. Agent

f)       Donor

g)     Project ID (this ID must be the same as the project ID in the request sent to the Treasurer)

h)     Open Item Key = PPCF Custodian Staff Index ID or Supplier ID.

Year-end certification must certify the status of each PPCF, including those issued for UNDSS, by submitting the PPCF list with details (follow the exact year-end closing procedures as PCF including deposit the remaining cash in the safe into CO's bank account and full accounting/reconciliation).
 
Responsible Party
Template/Guideline
Explanatory Notes

Caution: Be completely familiar with the procedures for PCF and follow them for PPCF noting the differences above (especially on Internal Controls, Accounting, Reconciliation and Year-end Closure)​

Salary Surveys

1
Step
​Consult Salary Survey Manual for further information
Responsible Party

Staff member

Template/Guideline

Salary Survey Manual

Explanatory Notes

Medical insurance: UN NY Empire Blue Cross PPO Medical Insurance

1
Step

Flowchart - Medical insurance: UN NY Empire Blue Cross PPO Medical Insurance
Responsible Party
Template/Guideline

Flowchart - Medical insurance: UN NY Empire Blue Cross PPO Medical Insurance

HR_Insurance Plans_Empire Blue Cross PPO Flowchart

Explanatory Notes

2
Step

Enrollment of staff: 

Application/ Request for Change Form completed and submitted together with supporting documents in respect of staff member’s participation, including his/her eligible family members, where relevant
Responsible Party

Staff member

Template/Guideline
Explanatory Notes

Staff members who have no insurance coverage under a United Nations plan or through a family member must be strongly urged to obtain medical insurance coverage for themselves and their eligible family members, as the cost of medical care can result in financial hardship for individuals who fall ill and/or injured and have no coverage 

If staff member or eligible family members are not enrolled within 31 days after an event that gives rise to an entitlement for coverage, an application for coverage may be submitted during the annual enrollment campaign. See UN ST/IC/2014/15 

In the case of a staff member married to another staff member, the insurance coverage, whether at the two-person or family level, must be carried by the higher salaried staff member 

Education of staff about the provisions under the insurance plan and distribution of materials by the person most familiar with the scheme is absolutely necessary 

If an office administers personnel on behalf of another agency, the same rules procedures for UNDP staff must be followed.

3
Step

Enrollment of staff: 

The completed application for enrollment form is certified and submitted to the Insurance and Disbursement Services within 31 days of eligibility for the entitlement
Responsible Party

BES/GSSC

Template/Guideline
Explanatory Notes

The administration of this category of employees is centralized in the Benefits & Entitlements Services Unit in GSSC BES in Copenhagen

The UN Health and Insurance Unit administers the workflow of enrollment and reporting directly with the Insurance Carrier on behalf of UNDP

4
Step

Enrollment of staff: 

Staff member records in Quantum are validated, contributions are computed, and coverage is activated
Responsible Party

UN Insurance Unit

Template/Guideline
Explanatory Notes

5
Step

Managing eligibility data in Quantum

Data on enrollment form is verified and validated and any change in coverage is processed into Quantum promptly
Responsible Party

UN Insurance Unit

Template/Guideline
Explanatory Notes

6
Step

Issue ID card: 

Identity cards are issued to the staff member and eligible dependent(s)
Responsible Party
Template/Guideline
Explanatory Notes

It is the responsibility of the staff member to ensure that the correct mailing address is submitted. Incomplete or incorrect mailing addresses in Quantum will result in misdirected mail or failure to receive important information.

7
Step

Claims:

Insurance claims are submitted, in a sealed envelope together with supporting documents, on a claim form directly to the insurance carrier, following the instructions on the claim form.
Responsible Party

Staff member

Template/Guideline
Explanatory Notes

Subscribers should note that claims for reimbursement must be submitted to the insurance carrier no later than two years from the date on which the medical expense was incurred. Claims received later than two years after the date on which the expense was incurred will not be eligible for reimbursement. 

The administration and management of the health insurance plans for internationally recruited staff governed by the UN Staff Regulations and Staff Rules are administered by the UN Health and Life Insurance Unit. Any questions/queries on the provisions under the plan or any disputes regarding claims must be submitted directly to this unit, located at 304 East 45th Street, 3rd Floor.

8
Step

Verification and reimbursement of claims: 

Insurance carrier reimburses staff member directly
Responsible Party
Template/Guideline

P-2 Form Designation of Beneficiaries

HR_Insurance Plans_Designation, Change or Revocation of Beneficiary Form P-2

Explanatory Notes

Payment is made to the insured person, but, if the subscriber is no longer alive, payment will be made to his/her beneficiary as per P-2 Form Designation of Beneficiaries

9
Step

Request a review if a claim is denied: 

A claim denied in whole or in part must be submitted to the insurance carrier. The insurance carrier will provide the subscriber with a written notice explaining the reason for the denial and the appeal procedure
Responsible Party

Staff member

Template/Guideline
Explanatory Notes

The request for review must be submitted in writing within 60 days of receipt of the notice. The subscriber should include the reasons for requesting the review and submit the request to the insurance carrier. The insurance carrier will review the claim and ordinarily notify the subscriber of its final decision within 60 days of receipt of the request. If special circumstances require an extension of time, notification will be given to that effect.

Accounts Payable

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. 

Compressed working schedules

1
Step

Request for a compressed working schedule
Responsible Party

Staff member

Template/Guideline

Annex 4 – Compressed Work Schedule Template

Explanatory Notes

Compressed working schedule requests should be submitted in writing to the staff member’s immediate supervisor and head of office.

2
Step

Review of request for a compressed working schedule
Responsible Party

Head of Office

Template/Guideline
Explanatory Notes

The immediate supervisor and head of office review each request on a case-by-case basis, with particular concern for ensuring adequate staff coverage.

3
Step

Discussion within unit/team 
Responsible Party
Template/Guideline
Explanatory Notes

The unit/team meets to discuss set goals, work objectives and distribution of work.

4
Step

Approval 
Responsible Party

Head of Office

Template/Guideline
Explanatory Notes

The head of office decides on requests for a compressed working schedule.

5
Step

Communication of decision to staff member and unit/team
Responsible Party
Template/Guideline
Explanatory Notes

The staff member on a compressed working schedule must be made aware that, due to the exigencies of service, he/she may be requested to resume normal working hours; 

Inform HR administrator.

Certificate of Service

1
Step
Request a certificate of service in writing
Responsible Party

Staff member

Template/Guideline

Generic certification letter

Explanatory Notes
Submits a request to the person who administers the staff member’s contract (HR administrator)

2
Step
Process certificate of service HR administrator
Responsible Party
Template/Guideline
Explanatory Notes
Factual information, such as period of service, positions held, and earnings, in response to such inquiries will be given in a written statement on UNDP letterhead

Upon the staff member's written request, the statement also refers to the quality of his/her work and official conduct

Temporary part-time employment

1
Step

Request for temporary part-time employment
Responsible Party

Staff member

Template/Guideline

Annex 3 – Temporary Part-Time Employment Costing Sheet

Explanatory Notes

Part-time employment requests should be submitted in writing to the staff member’s immediate supervisor and head of office; 

The request should include the reason for the temporary conversion to part-time employment, a suggested start date and an estimate of how long he/she wishes to work part time.

2
Step

Review of request for temporary part-time employment
Responsible Party

Head of Office

Template/Guideline
Explanatory Notes

The immediate supervisor and head of office review each request on a case-by-case basis, with particular concern for ensuring adequate staff coverage.

3
Step

Discussion within unit/team
Responsible Party
Template/Guideline
Explanatory Notes

The unit/team meets to discuss set goals, work objectives and distribution of work.

4
Step

Approval
Responsible Party

Head of Office

Template/Guideline
Explanatory Notes

The head of office decides on requests for temporary part-time employment;

Requests to work temporarily on a part-time basis may be approved initially for a minimum of six months and no more than 12 months; 

Any extension beyond the introductory six months requires the mutual agreement of the Organization and the staff member; 

Once the request is approved, a copy should be sent to initiate the necessary administrative action (including personal action form) regarding:
- International staff stationed outside New York: to the HR associate serving the duty station;
- International and local staff stationed in New York: to the HR associate serving the organization unit; and
- Local staff stationed outside New York: to the local operations manager.

5
Step

Communication of decision to staff member and unit/team
Responsible Party
Template/Guideline
Explanatory Notes

The staff member on temporary part-time employment must be made aware that, due to the exigencies of service, he/she may be requested to resume normal working arrangements; 

Inform HR administrator to permit the appropriate administration of benefits and entitlements.

Regular Maintenance Accounts Payable

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
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