| United Nations Development Programme

1	Step Estimate annual preliminary GLOC targets to country offices	Responsible Party	Template/Guideline OFM site	Explanatory Notes GLOC target tables include GOC targets in cash and GLOC in-kind contributions
2	Step Issuance of GLOC targets to country offices	Responsible Party	Template/Guideline	Explanatory Notes A joint memo from OFM and RBx sent to the Resident Representatives
3	Step Communicate GLOC targets and settlement of arrears to Host Governments	Responsible Party Country Offices	Template/Guideline Create UNALL case with GSSC to create master contract	Explanatory Notes
4	Step Create a master contract for GLOC cash targets	Responsible Party	Template/Guideline	Explanatory Notes Cash payments from host governments are applied to the respective year’s master
5	Step Clarify any issues related to GLOC cash and in-kind contributions to host governments	Responsible Party	Template/Guideline	Explanatory Notes Support will be provided from OFM and Regional Bureau
6	Step Revise and communicate GLOC targets if necessary, based on the final year-end certification of the GLOC in-kind and GLOC master contracts based on revised final GLOC targets	Responsible Party	Template/Guideline Refer to Government Local Office Cost -GLOC- Valuation of the In-Kind Contribution from the Host Government	Explanatory Notes Upon closure of the year-end certification, OFM reviews and updates in-kind GLOC contributions on annual basis
6.a.	Step Receive GLOC contributions and submit a request through UNALL for all GLOC payments (current, arrears and advance) Send “Thank you” letters to host governments	Responsible Party	Template/Guideline Submit GLOC contributions information through UNALL	Explanatory Notes CO should indicate the contribution amounts with a corresponding GLOC target year including the future years, in case of advance payments.
6.b.	Step Apply cash payments to GLOC cash targets Transfer an annual portion of deferred revenue to the current year target account	Responsible Party	Template/Guideline	Explanatory Notes COA- GLOC fund – 00200; accounts: Current year payment – 51015 Arrears payment – 51014 Advance payment – 51017
7	Step Issue GLOC performance reports	Responsible Party	Template/Guideline GLOC Performance Report	Explanatory Notes GLOC performance report is updated automatically from Quantum.
8	Step Apply accounting linkage, if any, to outstanding GLOC targets	Responsible Party BERA	Template/Guideline	Explanatory Notes BERA – validates and confirms voluntary contributions (VC) GSSC & OFM – determines the amount of accounting linkage from VC and posts the entries in GL Based on voluntary contributions received from host governments, any shortfall in GLOC targets are settled through GLOC accounting linkage
9	Step Report annually to UNDP stakeholders and UNDP Executive Board Issue an appreciation letter for the payment of GLOC cash and in-kind	Responsible Party ExO and Regional Bureaux	Template/Guideline UNDP financial statements The United Nations Board of Auditors Annual Review of the Financial Situation, table 4 and 8 The Documents for the Executive Board sessions	Explanatory Notes A letter from UNDP Associate Administrator is sent after the closure of Contract Module in Quantum upon finalization of revenue entries.
10	Step Report to UNDP Executive Board through Integrated Budget	Responsible Party	Template/Guideline	Explanatory Notes Integrated budget documents

1	Step Issuance of GLOC targets to country offices	Responsible Party	Template/Guideline	Explanatory Notes GLOC target tables which will include GLOC targets in cash and GLOC in-kind contributions GLOC guidelines
2	Step Country Office determines the approach for market valuations, and assesses whether an independent valuation is required	Responsible Party	Template/Guideline	Explanatory Notes
3	Step Request host governments to provide the most recent valuation of office premises, if any	Responsible Party	Template/Guideline Annex 2: Sample Questionnaire - Office Premise Provided by Government to UNDP Country Office	Explanatory Notes Annex 2 – Sample Questionnaire
4	Step Collect market-based evidences to examine the current market prices for similar buildings that are available for a sale or a lease	Responsible Party	Template/Guideline Annex 3: Template - Summary of market evidence for similar type of office premises in the same/similar area	Explanatory Notes Annex 3 - template to summarize market evidence
5	Step Submit annual certification form to OFM	Responsible Party	Template/Guideline Annex 4: GLOC Valuation Annual Certification	Explanatory Notes This template will be incorporated in the annual certification on donated right to use assets to OFM Annex 4 – Annual certification template
6	Step Hire an independent appraiser, if an independent valuation is required	Responsible Party	Template/Guideline Annex 1: Sample Terms of Reference for Determining the Fair Market Annual Rental Valuation of UNDP Premises Provided by Host Governments	Explanatory Notes UNDP procurement procedures Annex 1 –TOR
7	Step Submit final valuation report to HQ & annual certification form	Responsible Party	Template/Guideline Annex 4: GLOC Valuation Annual Certification	Explanatory Notes Annex 4
8	Step Final validation of valuation of in-kind GLOC contribution and financial statement entries for in-kind contributions	Responsible Party	Template/Guideline	Explanatory Notes UNDP’s share attributable towards the core institutional operating expenses will be the basis for GLOC in-kind entry GLOC performance tables
9	Step Inform host government on any remaining cash obligations	Responsible Party	Template/Guideline	Explanatory Notes

1	Step Negotiate and sign agreements at Business Unit level (sign with the local US Federal Government Agency)	Responsible Party	Template/Guideline	Explanatory Notes
2	Step Agree on frequency of interim FFR-425 reporting requirements and deadline with local COTR/AOTR	Responsible Party	Template/Guideline	Explanatory Notes Prior to signing agreement
3	Step Submit a copy of signed grant agreement to GSSC for recording in Quantum Portfolio Project Management (PPM) Contract Module	Responsible Party	Template/Guideline	Explanatory Notes As soon as grant agreement is signed (within 1 week of signature)
4	Step Creation of Project in the Portfolio Project Management (PPM)	Responsible Party	Template/Guideline	Explanatory Notes As soon as the project budget is finalized (before agreement is signed)
5	Step Credit revenue to project in PPM	Responsible Party	Template/Guideline	Explanatory Notes Upon receipt of signed agreement or amendment and after confirming the grant has been obligated
6	Step File quarterly FFR-425 to local US Federal Government Agency office	Responsible Party	Template/Guideline	Explanatory Notes As agreed with COTR/AOTR
7	Step Manage agreement against required filing dates and expiry date	Responsible Party	Template/Guideline	Explanatory Notes As per agreement requirements
8	Step File final FFR-425 (individual grant)	Responsible Party	Template/Guideline	Explanatory Notes Within 90 days of grant expiry following expenses certification by UNDP Office
9	Step File quarterly FFR-425 (consolidated for all grants)	Responsible Party	Template/Guideline	Explanatory Notes Within 30 days of quarter’s end following expenses certification by UNDP Office
10	Step Expenses certification	Responsible Party	Template/Guideline	Explanatory Notes Submit quarterly and upon grant expiry to GSSC
11	Step Year-end Adjustment of Revenue	Responsible Party	Template/Guideline	Explanatory Notes At year-end as part of year-end closing
12	Step Project Operational Close	Responsible Party	Template/Guideline	Explanatory Notes By the grant expiry date
13	Step Project Financial Close	Responsible Party	Template/Guideline	Explanatory Notes UNDP Office to submit UNITY/ UNall informing GSSC to financially close the project after operational closure but not more than 90 days after grant expiry
14	Step Cash Draw-Down	Responsible Party	Template/Guideline	Explanatory Notes Quarterly or other period to be determined by GSSC
15	Step Grant Extension Notification to GSSC	Responsible Party	Template/Guideline	Explanatory Notes UNDP Office within 1 week of extension approval
16	Step Notification of Grant Expiry	Responsible Party	Template/Guideline	Explanatory Notes 60 days prior to grant expiry date
17	Step Processing Refunds and De-Obligations	Responsible Party	Template/Guideline	Explanatory Notes After submission of Final FFR-425

Step

Review results of assessment conducted.

Responsible Party

Office

Template/Guideline

HACT Annexes A-D

Explanatory Notes

In consultation with programme and operations team to consider additional variables in the assurance planning process.

See Annex D for the roles and responsibilities in implementing the HACT framework.

Step

Develop Assurance activity plan for Partners.

Responsible Party

Office

Template/Guideline

HACT Tables

Explanatory Notes

The coverage, type and frequency of assurance activities is guided by the overall risk rating associated with the Partner, as determined through the micro assessment.
See Table 2 for UNDP specific guidelines assurance activities required for each Partner based on Partner risk rating.

Step

Approve Assurance activity plan.

Responsible Party

Office

Template/Guideline

HACT Annexes A-D

Explanatory Notes

The final assurance activity plan must be approved by the Head of Office or his/her designate.
See Annex A for additional UNDP specific guidance on the conduct of spot checks. See Annex B for additional guidance on financial audits.

Step

Solicit third party service provider for planned assurance activities.

Responsible Party

Office

Template/Guideline

HACT Long Term Agreements (LTA)

Explanatory Notes

Offices are encouraged to use the service providers engaged through the HACT Long Term Agreements (LTAs).

Step

Upload results of assurance activity conducted.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Results of Partner Assurance Activities shall be reviewed by Head of Office or his/her designate and remedial actions shall be discussed with the Partner.

The reports of assurance activities should be uploaded in the HACT Platform. Issues highlighted in the report including the action plan needs to be documented in the HACT Platform.

Step

Conduct review of implementation of Assurance Plan.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Offices are required to monitor the findings identified and necessary action plan should be documented in the HACT Platform. To ensure that the risk does not materialize the action plan should be executed and identified findings promptly closed in the HACT Platform. The execution of the action plan is the responsibility of the Office.

The action plan needs to be communicated and agreed with the Partner.

Step

Follow up of findings of periodic on-site reviews (spot checks) and special and scheduled audits.

Responsible Party

Office

Template/Guideline

HACT Tables

Explanatory Notes

See Table 4 for triggers prompting review of Partner Adjusted Risk Rating arising from spot checks.
See Table 5 on triggers prompting a change of Partner risk rating arising from scheduled audits.

Step

Finalize Partner Risk Rating.

Responsible Party

Office

Template/Guideline

HACT Tables

Explanatory Notes

See Table 4 for triggers prompting review of Partner Risk Rating arising from spot checks
See Table 5 on triggers prompting a change of Partner Risk Rating arising from scheduled audits

Step

Determine the appropriate Cash Transfer Modality.

Responsible Party

Office

Template/Guideline

HACT Tables

Explanatory Notes

See Table 3 Cash transfer modality for Partner based on adjusted risk rating.

Step

Review FACE form prior to disbursement and reporting.

Responsible Party

Office

Template/Guideline

Direct Cash Transfers and Reimbursements procedure

UNSDG HACT Framework

Explanatory Notes

Refer to Direct Cash Transfers and Reimbursements procedure when using the standard FACE forms.

See Appendix VI of UNSDG HACT Framework for template of FACE form and Appendix VII for guidelines for completing FACE form.

Step

Determine and prioritize which Partner require micro assessment.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Micro Assessment should be carried out before programme funding is provided. Where two or more programmes have similar start dates, prioritization should be based on the assessed relative amount of risk to UNDP (funding quantum, and past experience with the Partner).

Step

Develop micro assessment plan.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Final Micro Assessment Plan must be signed off by the Head of Office or his/her designate.
The relevant planning process should be completed in the HACT platform.

Step

Solicit third party service provider.

Responsible Party

Office

Template/Guideline

Explanatory Notes

UNDP office should consider Long Term Arrangements with one or more service providers for micro assessments. Global LTAs for service providers are available at HACT Long Term Agreements (LTAs).

See TOR of service provider for the micro assessment.

Step

Perform micro assessment.

Responsible Party

Service Provider

Template/Guideline

Revised Partner Capacity Micro Assessment

Explanatory Notes

Key output are:

(1) An overall risk rating related to cash transfers to Partner.
(2) Significant issues of Partners

Step

Review results of micro assessment.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Results of micro assessment shall be reviewed by Head of Office or his/her designate and remedial actions shall be discussed with the Partner.

The micro assessment report should be uploaded in the HACT Platform. Issues highlighted in the report including the action plan needs to be documented in the HACT Platform.

Step

Establish impacts and implications on AWP design.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Office to assess the impact of the micro assessment and implications on AWP design

Step

Identify requirement for HACT assurance planning.

Responsible Party

Office

Template/Guideline

Explanatory Notes

Office to assess the impact of the micro assessment and implications on HACT assurance plan.

Step

Document Partner risks as appropriate.

Responsible Party

Office

Template/Guideline

Explanatory Notes

The specific risks identified in the micro assessment are also incorporated into country level risk management activities and logs, as appropriate.

Step

Solicit third party service provider for macro assessment.

Responsible Party

Office / UNCT

Template/Guideline

UNSDG HACT Framework

Explanatory Notes

RC is to advocate with government and major development partners for macro assessment.

See Appendix 1 Appendix 1 UNSDG HACT Framework for TOR of service provider to be engaged.

Step

Conduct desk review research.

Responsible Party

Service Provider

Template/Guideline

UNSDG HACT Framework

Explanatory Notes

Key outputs are:

(1) PFM risk assessment and

(2) SAI capacity assessment

See Annex 1 and Annex 2 of Appendix I in page 50-54 of UNSDG HACT Framework for Macro assessment check list and risk consideration checklist respectively to be used.

Step

Review of results of macro assessment.

Responsible Party

Office

Template/Guideline

UNSDG HACT Framework

Explanatory Notes

The final macro assessment must be signed off by the Resident Coordinator on behalf of the UNCT.

See Annex 1 and Annex 2 of Appendix I in page 50-54 of UNSDG HACT Framework for Macro assessment check list and risk consideration checklist respectively to be used.

Step

Determine impact and implications of assessment on programme design.

Responsible Party

Office

Template/Guideline

UNSDG HACT Framework

Explanatory Notes

Each agency implementing the HACT framework is required to document its understanding of the assessment, recognition of the identified risks and understanding of the effects at country level that are specific to the agency, including programme design.

See Annex 1 and Annex 2 of Appendix I in page 50-54 of UNSDG HACT Framework for Macro assessment check list and risk consideration checklist respectively to be used.

Step

Document decisions and risks identified.

Responsible Party

Office

Template/Guideline

UNSDG HACT Framework

Explanatory Notes

A summary of the macro assessment should be incorporated into the Common Country Assessment.

See Annex 1 and Annex 2 of Appendix I in page 50-54 of UNSDG HACT Framework for Macro assessment check list and risk consideration checklist respectively to be used.

1	Step Chartfields Create chartfield in Quantum General Ledger.	Responsible Party OFRM/BMS/CFRA	Template/Guideline	Explanatory Notes The only exception is the Project chartfield, which is created in the QuantumProjects and Portfolio Management (PPM).
2	Step Request a new chartfield or make changes to existing chartfields (if necessary). Complete and forward the appropriate QuantumChart of Accounts Maintenance forms with appropriate supporting documentation as indicated on the forms	Responsible Party OFRM/BMS/FBA	Template/Guideline	Explanatory Notes Send the form to cfra.mdm@undp.org Quantum Account code creation forms
3	Step Funds Reviewed any change to the Fund.	Responsible Party OFRM/BMS/FBA	Template/Guideline	Explanatory Notes Quantum fund code creation/modify form
4	Step Ensure that any chartfield trees affected by the change are updated immediately as soon as a change occurs in the Fund chartfield table	Responsible Party	Template/Guideline	Explanatory Notes
5	Step Assign at least one individual responsible for reviewing requests for chartfield changes	Responsible Party Business owner	Template/Guideline	Explanatory Notes The assigned individuals should also be responsible for maintaining and updating related chartfield trees.
8	Step Donor Code Create a Donor Code by setting up a new customer identification code in Quantum Accounts Receivable	Responsible Party	Template/Guideline	Explanatory Notes Send the form to BMS OFM PDI bms.ofm.pdi@undp.org Quantum customer form
9	Step Record contributions from donors using account 51005 and enter the relevant operating unit , cost entre, fund ID and the donor code	Responsible Party	Template/Guideline	Explanatory Notes If the fund code is cost-sharing or project level co-financing, the project ID, project business unit and a default activity should also be entered
10	Step Record expenses using the appropriate expenditure account in the 6xxxx or 7xxxx series.	Responsible Party	Template/Guideline	Explanatory Notes The cost centre ID entered for expenses should be the detailed cost centre ID (not the budgetary cost centre).
11	Step Include chartfields in all expenses without any exception	Responsible Party	Template/Guideline	Explanatory Notes
12	Step Other asset or liability accounts in the 1xxxxx or 2xxxx series should include, as a minimum, the following chartfield values: account, operating unit, fund and cost centre	Responsible Party	Template/Guideline	Explanatory Notes
13	Step Forward the request form to Accounts Division and update the donor tree as soon as a new donor code is created	Responsible Party	Template/Guideline	Explanatory Notes
14	Step Ensure that no duplicate values exist	Responsible Party	Template/Guideline	Explanatory Notes A review of the donor chartfield values should be regularly undertaken to “inactivate” the duplicated values.

1	Step Create record and maintain record	Responsible Party Finance staff	Template/Guideline Records Management Guidelines	Explanatory Notes Ascertain accuracy and correctness of the record and its supporting documentation Financial records should be created, managed and stored in accordance with paragraphs 4, 5 and 6 of the Record Retention policy Documents to be filed in a sequential order and in safe storage. When the office is closed, chequebooks, issued cheques and petty cash must be placed in the safe for safekeeping
2	Step Store records permanently for staff payments/ payroll	Responsible Party Finance staff	Template/Guideline	Explanatory Notes
3	Step Establish an area for archiving according to the following guidelines: a) The files/records storage area must be secure and locked at all time b) Files must be easily retrievable c) There must be a log and master list for everything archived and its anticipated disposal date	Responsible Party CO	Template/Guideline	Explanatory Notes
4	Step Ensure regular monitoring of the contracted storage space	Responsible Party Administrative Services Division (ASD) at Headquarters and country offices	Template/Guideline	Explanatory Notes
5	Step Store records for a minimum of seven years for all other financial documents except staff payments/ payroll	Responsible Party	Template/Guideline	Explanatory Notes
6	Step Decide whether to dispose of financial records older than 7 years (apart from documents related to staff payments/payroll)	Responsible Party Resident Representative	Template/Guideline	Explanatory Notes Disposal at the discretion of Res. Rep. after seven years in accordance with paragraphs 7 and 8 of the Record Retention policy on the POPP However, if further guidance is required, please contact the Office of Finance
7	Step Dispose of records	Responsible Party Senior GS Finance staff	Template/Guideline	Explanatory Notes Files will be disposed of by incineration and/or shredding

1	Step Flowchart - MIP process	Responsible Party	Template/Guideline Flowchart - MIP process	Explanatory Notes
2	Step Enrollment of staff: MIP 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 MIP Application/ Request for Change Form	Explanatory Notes Education of staff about MIP 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 for MIP purposes, the same rules procedures for UNDP staff must be followed
3	Step Enrollment of staff: Staff member and eligible dependents (where relevant) are enrolled in MIP in Quantum.	Responsible Party	Template/Guideline	Explanatory Notes In addition to ensuring the correct payroll calculation of these elements, the data entry process is also critical for reporting purposes and for the timely and accurate payments of MIP reimbursement claims
4	Step Managing eligibility data in Global Payroll: Data on enrollment form is verified and validated and any change in coverage is processed into Quantum promptly	Responsible Party	Template/Guideline	Explanatory Notes
5	Step Eligibility Data: Reviews and validates eligibility data in the system and transmits file to claims administrative company	Responsible Party MIP HR Technical Support	Template/Guideline	Explanatory Notes A technical interface uploads enrollment and eligibility data from Quantum and the claims administration company (TPA)
6	Step ID Cards: Uploads eligibility data; issues ID cards; and communicates exceptions, if any, to HR Technical support	Responsible Party	Template/Guideline	Explanatory Notes
7	Step Claims: MIP claims are submitted through the online Claiming tool in a sealed envelope containing the MIP Refund Claim form and supporting documents directly to the company that administers MIP, following the instructions on the claim form	Responsible Party Staff member	Template/Guideline MIP Refund Claim form	Explanatory Notes Effective January 2004, UNDP outsourced the administration of MIP claims to an independent administration brokerage company. The TPA company is responsible for administering MIP claims and for ensuring compliance by subscribers with the MIP rules and avoiding unreasonable or abusive use of the plan.
8	Step Reimbursement of claims: Claims are verified and processed as follows: - If the claim fully meets requirements, a payment instruction is processed through interface between the TPA and UNDP and a Statement of Benefits is sent to the staff member - If the claim does not meet requirements, a notification and/or request for further information/documentation is sent to the staff member	Responsible Party Claims Administration Company	Template/Guideline P-2 Form Designation of Beneficiaries	Explanatory Notes Payment of claims is made through an interface between the claims administration company and Quantum. Payment that goes through this interface will not indicate the nature of the medical services provided. 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. Patient confidentiality will be protected as any MIP.
9	Step Payments: The payment instruction file received from the MIP Administration Company (TPA) is uploaded into system and an instruction is sent to UNDP to effect payment	Responsible Party MIP HR Technical Support	Template/Guideline	Explanatory Notes
10	Step Payments: Vouchers are uploaded, payments are processed and staff member is notified	Responsible Party	Template/Guideline	Explanatory Notes In order to effect prompt and timely payment, staff member must be properly set up as a vendor in Quantum

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Policy Areas

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

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Government Local Office Cost (GLOC) Valuation of the In-Kind Contribution

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