| United Nations Development Programme

1	Step Generate/Create Contract/Purchase Order	Responsible Party	Template/Guideline	Explanatory Notes
1.1	Step Three Document Styles exist for Orders: Purchase Orders Contact Order Contract Work Order Purchase Order Purchase Order similar as in Atlas. Includes obligation of funds, schedules and distributions. Supporting amount / fixed price, rate based and quantity based lines. The Purchase Order lines may be associated to or created from Agreements / LTAs. Contract Order The Contract Order is a new concept in Quantum which combines the contract legal templates and deliverables with the obligation of funds of the Purchase Order. Meaning no additional Purchase Order is needed for a Contract Order. Supporting amount / fixed price, rate based and quantity based lines. Includes start and end date for contract in addition to the defined deliverables on the schedules. Contract Work Order Contract Work Order is similar to Contract Order but tailored for civil works and service only contracts, e.g. for Individual Contractors. No Incoterms or shipping information Only supporting line type “Fixed Price” Schedule description is editable. This enables buyers to create or process often a single line from Solicitation or Requisition only representing what to buy, e.g. “Consultant”, and enter detailed deliverable information in the schedule. Future option: Work confirmation from suppliers in the Supplier Portal with approval and automatic receipt.	Responsible Party Procurement Buyer	Template/Guideline	Explanatory Notes
1.2	Step When completed, the Contract or Purchase Order must contain enough information to make it legally valid, to reserve funds and to enable reporting.	Responsible Party Procurement Buyer	Template/Guideline	Explanatory Notes
2	Step Apply Contract Terms The buyer must add Contract Terms to create a legally viable Contract.	Responsible Party Procurement Buyer	Template/Guideline	Explanatory Notes
3	Step Approve Contract and Purchase Order All Contract and Purchase Orders are sent for approval. The process serves multiple purposes: Validation of Data Budget check override Financial / budget approval Purchasing approval Supplier change order control The buyer can pre-view the Approval flow and future approvers using the “Manage Approvals” setting. The process includes data validation controls which should be done prior to submission for approval: Requestor must have a value Requestor not have a buyer	Responsible Party PO Approver	Template/Guideline	Explanatory Notes

1	Step Authority for Approving PCA. Delegates his/her authority to HO for approving the PCA(s) up to $25,000 per one-time project activity of limited duration, not exceeding two weeks.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes This delegation provides the flexibility for a specific project requirement that cannot be met by the normal banking arrangement. However, this delegation also demands accountability of the CO that issues PCAs to ensure timely closure of the PCAs 30 days (one month from the date the advance was issued.
2	Step Retains the authority to approve PCA(s) higher than $25,000 based on the CO's request. The key considerations in approving such requests are: Business needs Alternative solutions not available. Security assessment and arrangement (must identify secured route for travel and escort). CO's track record in timely and accurate closing the PCAs. The CO must submit the AP Data Entry Form signed by respective officers as the supporting documents	Responsible Party Treasurer	Template/Guideline	Explanatory Notes Caution: Failure to timely and accurately reverse PCA, record the expenses, and reconcile GL PCA Account 16108 may lead to inaccurate valuation in the financial statements. Caution: Failure to make proper security arrangement may lead to the delay in Treasurer’s approval of higher PCA amount until the situation is corrected by the CO
3	Step PCA Custodian Appointment Appoint the PCA Custodian	Responsible Party	Template/Guideline	Explanatory Notes Following Appointment criteria apply: Staff holds UNDP Fixed Term Contract (FT) or holder of Personnel Services Agreement (NPSA/IPSA) with limit up to $5,000 (only RR can appoint NPSA/IPSA, not to be further delegated). Staff is competent to fulfill the responsibilities including safeguarding, proper use of, and timely accounting for the PCA. Staff signs the PCA Appointment Form. Staff agrees to fully report and account the PCA 30 days after the advance has been issued.
4	Step Physical Security for PCA Ensure, jointly, the security of the PCA as follows:	Responsible Party	Template/Guideline	Explanatory Notes DRR(P) is responsible for the security assessment at project activity site and PCA Custodian appointment. DRR (O) is responsible for security arrangement (working with UNDSS or a third party escort service if applicable)
5	Step Issuance and Encashment of the PCA Cheque Set up the one-time PCA Custodian as a ‘Supplier’ in Quantum.	Responsible Party	Template/Guideline	Explanatory Notes
6	Step Raise an Invoice to the Custodian/supplier as type “prepayment” set up as a “temporary Prepayment” by checking off the flag “Allow prepayment application” with proper supporting documents	Responsible Party	Template/Guideline	Explanatory Notes
7	Step Payment will be processed by GSSC.	Responsible Party	Template/Guideline	Explanatory Notes
8	Step Withdraw the cash and safekeeps the advanced cash until completing the final disbursements and accounting	Responsible Party	Template/Guideline	Explanatory Notes The PCA Custodian is responsible for safekeeping of PCA between the time of receipt of cash and final disbursements of the cash (if the third party provider is not used for transporting and distributing the cash) as well as any unused cash advance until the amount is returned to DRR (O)
9	Step Disbursing PCA Maintain invoices and receipts for purchases	Responsible Party	Template/Guideline	Explanatory Notes
10	Step Maintain the PCA Pay List including the beneficiary name, organization affiliation (if applicable), phone ID name and number, and amount of the cash disbursement	Responsible Party	Template/Guideline	Explanatory Notes
11	Step Verify validity of the identification before making cash disbursement to each intended recipient.	Responsible Party	Template/Guideline	Explanatory Notes
12	Step Collect the signature from each recipient acknowledging the receipt of payment from UNDP	Responsible Party	Template/Guideline	Explanatory Notes
13	Step Calculate the total for all disbursements made and determine the unused balance for PCA	Responsible Party	Template/Guideline	Explanatory Notes
14	Step Submit the PCA Pay List, invoice/receipts, along with unused PCA balance, if any, to DRR(O) immediately upon completion of the activity	Responsible Party PCA	Template/Guideline	Explanatory Notes
15	Step Internal Controls for PCA Disburse the cash to authorized beneficiaries for Qualifying PCA Expense only for the specific one-time project activity	Responsible Party	Template/Guideline	Explanatory Notes Separation of duties must be maintained at all times for PCA request, PCA approval, AP non-PO Invoice creation and approval, and issuance of PCA
16	Step Maintain the Pay List with supporting documents	Responsible Party	Template/Guideline	Explanatory Notes This will include records to identify who was paid, for example by retaining copies of identification of the beneficiaries
17	Step Submit all invoices and receipts to the DRR(O)	Responsible Party	Template/Guideline	Explanatory Notes
18	Step Submit the final accounting 30 days after the advance has been issued, including returning the unused PCA cash balance and documents listed in 2 and 3 above to DRR(O).	Responsible Party	Template/Guideline	Explanatory Notes
19	Step Reviews steps above and ascertain if the PCA is disbursed according to the procedures and is fully accounted for and proceed to perform the closure accounting entries.	Responsible Party	Template/Guideline	Explanatory Notes The review should include phone calls to beneficiaries selected randomly to verify the actual payments
20	Step Use the PCA Status Monitor (Annex 6) to ensure that all onetime project activities concluded by 23rd do not have outstanding PCAs at the last day of the month	Responsible Party	Template/Guideline Annex 6: PCA Status Monitor	Explanatory Notes
21	Step Review the PCA Status and Monitor at each month end.	Responsible Party Operations Manager	Template/Guideline	Explanatory Notes Tips: The Operations Manager must assign one Finance Associate the responsibility to monitor all PCAs issued and ensure proper actions listed above take place within the required timeline. Caution: All PCAs are to be fully closed and accounted 30 days after the advance has been issued. This is very important to the fair and accurate presentation of a) UNDP financial position and operating results (reflected in the Balance Sheet and Income Statement Accounts) and b) UNDP’s project delivery status and balance for donor reporting under IPSAS at all times. N.B.: FX gain/loss adjustment entries are monitored by GSSC Cash Management team on a monthly basis
22	Step Reconciling Outstanding PCA Balance with GL Balance for PCA Ensure that the Invoice and AR/Credit Memo use the correct COA	Responsible Party	Template/Guideline	Explanatory Notes Caution: pay attention to the currency in GL. Reconciliation is to be done for the currency for which the PCA is issued. Typically, this means local currency for majority of the PCAs
23	Step Run AAA report for GL Account 16108 for the last date of each month	Responsible Party	Template/Guideline	Explanatory Notes
24	Step Reviews and confirm that the balance in GL Account 16108 represents the outstanding PCAs that have not concluded as of the 23rd of each month	Responsible Party	Template/Guideline	Explanatory Notes
25	Step Review the reconciliation completed by the assigned Finance Associate. If there any concerns for unclosed PCAs, he/she must take appropriate actions to ensure the internal controls for PCA are followed	Responsible Party Operations Manager	Template/Guideline	Explanatory Notes
26	Step Prepare, at each quarter-end or at each UNDP financial closure date, the PCA Reconciliation Schedule	Responsible Party	Template/Guideline Annex 7: PCA Reconciliation Schedule	Explanatory Notes Annex 7: PCA Reconciliation Schedule The GL Account 16108 balance must be substantiated by the PCAs that are outstanding in details.
27	Step Review and certify the PCA Reconciliation Schedule	Responsible Party Operations Manager	Template/Guideline	Explanatory Notes Caution: The above steps are critically important to ensure UNDP cash advances are accounted for timely and accurately
28	Step Ensure routine monitoring of GL Account 16108 for data quality and completeness	Responsible Party Head of Office	Template/Guideline	Explanatory Notes

1	Step Assess and document the reasons for any recommendation made to carry out the Cash Operations, including external environment, banking service assessment, potential operating risks to the CO and its staff, and risk mitigation strategies and procedures.	Responsible Party Head of CO	Template/Guideline	Explanatory Notes
2	Step Review and approve the CO’s recommendation for Cash Operations	Responsible Party	Template/Guideline	Explanatory Notes
3	Step Sign recommendations as the final approval	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
4	Step Reassess, annually or when the external environment changes, whichever comes first, leading to the availability of a functional banking system/services in the CO and/or the project location	Responsible Party Head of CO	Template/Guideline	Explanatory Notes This reassessment shall include a recommendation from Head of Office to either continue or cease the Cash Operations
5	Step Review the assessment and validate the recommendation through external sources (UN agencies, NGOs, and banking partners).	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
6	Step Communicate the decision to accept or reject the recommendation	Responsible Party Treasurer	Template/Guideline	Explanatory Notes There will be consultations among above involved parties in the process to ensure the recommendation is suitable to support the CO’s ongoing business and to mitigate risks. On a case by case basis Treasury will issue Guidelines and SOPs based on the circumstances of the situation that requires a CO to carry out Cash Operations

1	Step Authority to Establish the PCF and Level. Delegates his/her authority for establishing PCF to the Head of Office, up to the PCF maximum level for normal business as defined above	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
2	Step Seek Treasurer’s approval in advance by written request with detailed justifications.	Responsible Party	Template/Guideline	Explanatory Notes Any CO with PCF requirement above $2500
3	Step Evaluate such request, in addition to the consideration of the CO’s business needs, the CO’s track record of compliance with internal control framework (‘ICF’) and POPP, particularly in the areas of accounting, reconciliation, and year-end procedures for PCF, and make the decision to authorize the higher level requested	Responsible Party Treasurer	Template/Guideline	Explanatory Notes Caution: Failure to accurately and timely record PCF expenses and reconcile GL PCF Account 16105 may lead to delay or denial of the request until the internal control issues are resolved
4	Step Qualifying Expenses for PCF. Pay expenses qualified to be paid from PCF, which are, as follows: Small purchases for office's management operations (not programmes), and Each such purchase not to exceed USD 250 equivalent.	Responsible Party	Template/Guideline	Explanatory Notes
5	Step PCF Custodian Appointment. Appoint the PCF Custodian with the following criteria: a. Staff holds UNDP Fixed Term Contract (FT). b. Staff is competent to fulfill the responsibilities including safeguarding, proper use of, accounting for, and physical counting of the PCF and maintaining PCF Register. c. Staff agrees to the terms and conditions of Petty Cash Custodian Appointment Form and signs the document (see Annex 1) including that any losses in the PCF are to be reimbursed to UNDP by the PCF Custodian or a deduction shall be taken from his/her salary	Responsible Party Head of Office	Template/Guideline Annex 1: Cash Custodian Appointment Form	Explanatory Notes
6	Step Physical Security for PCF Ensures the physical security for PCF as follows: a. Provide a safe with strong security features. b. Place safe in a room with limited access by authorized personnel only. c. Keep cash in the safe at all times.	Responsible Party DRR(O) or Operations Manager	Template/Guideline	Explanatory Notes
7	Step PCF Custodian Responsibilities Cash the cheque and place the cash for PCF initial funding and subsequent replenishment in the office safe	Responsible Party	Template/Guideline	Explanatory Notes
8	Step Maintain the PCF Register to record all activities in the PCF	Responsible Party	Template/Guideline	Explanatory Notes
9	Step Use pre-sequentially numbered PCF invoice for each disbursement made from the PCF.	Responsible Party	Template/Guideline	Explanatory Notes
10	Step Ensure each PCF invoice is filled out for accounting/budget purposes and properly approved and has an invoice/receipt as the supporting document.	Responsible Party	Template/Guideline	Explanatory Notes
11	Step Count PCF balance after each disbursement and replenishment to ensure the amount is equal to the running balance on the PCF Register under supervision of the Operations Manager	Responsible Party	Template/Guideline	Explanatory Notes
12	Step Make every reasonable effort to prevent theft	Responsible Party	Template/Guideline	Explanatory Notes For example, include maintenance of PCF in secured location (i.e., office safe), requiring two keys to enter the safe room and the presence of two persons when safe is opened
13	Step Request the replenishment when PCF balance reaches 20% of the initial opening balance	Responsible Party	Template/Guideline	Explanatory Notes
14	Step Initial funding of PCF is done by a Permanent Prepayment Invoice payable to the PCF Custodian as the “Supplier” recorded against Debit GL Account: 16105 - Petty Cash Fund PCF Operating Unit: CO’s operating unit Fund Code: 00001 for GL acct 16105 always Department: Respective department Supplier : PCF Custodian’s Staff/Supplier ID	Responsible Party	Template/Guideline	Explanatory Notes The supporting document for the AP non-PO Invoice is the approval from the Head of Office or Treasurer, as applicable.
15	Step Subsequent replenishment is done by Payment payable to the PCF Custodian. The amount of the subsequent replenishment should equal the amount of the total disbursements made during the period prior to the replenishment.	Responsible Party	Template/Guideline	Explanatory Notes The amount of the subsequent replenishment should equal the amount of the APJV (see Internal Control and PCF Accounting) that records the total disbursements made during the period prior to the replenishment. The APJV and attached invoice/receipts serves as the supporting document for the subsequent replenishment.
16	Step Ensure that, after the subsequent replenishment, the PCF balance equals the initial opening balance.	Responsible Party	Template/Guideline	Explanatory Notes
17	Step Review, certify and approve the following (as the case may be) for subsequent replenishment to the PCF:	Responsible Party Finance Manager or Operations Manager (other than the PCF Custodian)	Template/Guideline	Explanatory Notes
18	Step APJV created by PCF Custodian for recording PCF disbursements, relevant supporting documents for charged expenses, and observance of the $250 limit for each disbursement (see PCF Accounting).	Responsible Party	Template/Guideline	Explanatory Notes
19	Step Physical count to ensure the PCF balance in the safe equals to the balance on the PCF Register	Responsible Party	Template/Guideline	Explanatory Notes
20	Step PCF reconciliation to ensure that GL PCF Account 16105 balance is the same as the actual cash in the safe (after the APJV is posted) and on the PCF Register	Responsible Party	Template/Guideline	Explanatory Notes
21	Step AP non-PO Voucher to pay the PCF Custodian as the replenishment for the PCF	Responsible Party	Template/Guideline	Explanatory Notes
22	Step Internal Controls for PCF Maintain separation of duties at all times.	Responsible Party	Template/Guideline	Explanatory Notes
23	Step Use pre-sequentially numbered PCF Vouchers (either in paper form or in spreadsheet form with password control) to request the PCF disbursements; the proper approval obtained, and full Chart of Accounts (COA) indicated	Responsible Party	Template/Guideline	Explanatory Notes
24	Step Attach invoice/receipt for small purchases to each PCF Voucher	Responsible Party	Template/Guideline	Explanatory Notes
25	Step Raise APJV to record the PCF disbursements on a monthly basis or prior to each replenishment request, whichever comes first	Responsible Party	Template/Guideline	Explanatory Notes Use the “Related Voucher” field in the invoice information page to include the voucher ID of the initial advance related to the disbursement being recorded to facilitate the review and liquidation process.
26	Step Maintain PCF Register on per transaction basis and issues on the close of business of the last day of the month or prior to each replenishment period with no further alteration	Responsible Party	Template/Guideline	Explanatory Notes
27	Step Create a new PCF Register for a new month or a new replenishment period	Responsible Party	Template/Guideline	Explanatory Notes
28	Step Generate a report for GL Account 16105 for each month end or each replenishment period to compare the balance in the PCF safe and review PCF Register.	Responsible Party DRR(O) or Operations Manager	Template/Guideline	Explanatory Notes
29	Step Perform a physical cash count at the month end or prior to each replenishment request, whichever comes first, and sign the PCF Count Form (see annex 3).	Responsible Party Operations Manager	Template/Guideline Annex 3: Cash Count Form	Explanatory Notes The signature on the PCF Count Form certifies that the balance in the safe equals to the balance in the PCF Register and the balance in the GL Account 16105.
30	Step Investigate and resolve any discrepancies identified in the steps PCF register check; running GL account 16105; physical cash count within 7 days	Responsible Party	Template/Guideline	Explanatory Notes Perform every month without exception as monthly PCF reconciliation
31	Step Notify the Head of Office of the discrepancy and the resolution	Responsible Party	Template/Guideline	Explanatory Notes Perform every month without exception
32	Step Deposit the PCF balance in the safe into the CO’s bank account on or before 31 December of each year	Responsible Party CO	Template/Guideline	Explanatory Notes If the CO does not deposit the PCF balance in the safe into the bank account at the year-end, the office must notify Treasury and explain the circumstances preventing this action
33	Step PCF Reconciliation and Year-End Closure Perform monthly PCF reconciliation without exception, including the year-end closure	Responsible Party DRR(O)	Template/Guideline	Explanatory Notes If the CO follows the Guidelines and Procedures herein, the AAA report for GL 16105 at 31 December should show the balance to be zero in local currency
34	Step Review the monthly PCF reconciliation results, complete and sign the Year-end PCF Certification and PCF Count Form.	Responsible Party DRR(O)	Template/Guideline	Explanatory Notes These two documents must be uploaded to designated SharePoint on or before 31 January as part of the routine year end close procedures. Caution: Pay attention to the currency in GL. Reconciliation is to be done for the currency in which the PCF is held. Typically, this means local currency. The CO should not reconcile the USD balance. Caution: The DRR(O) is accountable for the accuracy and consistency of the balances in AAA report, in PCF Register, and in the safe.
35	Step PCF Monitoring Ensure routine monitoring of GL Account 16105 for data quality and completeness.	Responsible Party Head of Office	Template/Guideline	Explanatory Notes
36	Step Ensure compliance with the Guidelines and Procedures: The PCF level not to exceed the authorized level by the Head of Office or Treasurer at any time. The per disbursement limit not to exceed USD 250 equivalent. The expenses are recorded on a monthly basis or at each replenishment period. No GLJE is used. All transactions recorded are in the currency for which the initial PCF balance is established. At 31 December, balance in AAA report for GL 16105 in local currency is zero.	Responsible Party CO	Template/Guideline	Explanatory Notes Caution: Strictly following the procedures are critically important to ensure UNDP cash assets are accounted for timely and accurately

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 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

Step

Gather data/information and prepare the cash flow forecast on a regular basis

Responsible Party

Template/Guideline

Explanatory Notes

On a daily basis, staff should ensure that no idle balance or overdraft occurs in the bank account(s)

Step

Review cash flow forecast to ensure liquidity and resources are properly managed and to take appropriate actions if there is a red flag

Responsible Party

Template/Guideline

Explanatory Notes

COs can use weekly cash forecast to prepare USD/local currency conversion, to request HQ for replenishment (if the CO does not have a ZBA dollar account), etc.

1	Step Determine total available cash for the period. Available Cash equals Opening Balance from bank account + Cash inflows (contributions, investments maturities, fees for services rendered)	Responsible Party Finance Assistant (in Country Office) Treasury Associate (in Headquarters	Template/Guideline	Explanatory Notes Country Offices should minimize local currency balances to that needed for seven days. Minimize idle balances in bank accounts controlled by Headquarters
2	Step Determine total Cash Outflows/Payments (supplier/staff payments, NEX advances and other payments to governments, payments to implementing partners, Non-UNDP related payments on behalf of other UN Agencies, check payments not cleared through bank accounts)	Responsible Party Finance Assistant (in Country Office) Treasury Associate (in Headquarters	Template/Guideline	Explanatory Notes
3	Step Determine Cash Requirements for the period by subtracting total Cash Outflows from Total Available Cash.	Responsible Party	Template/Guideline	Explanatory Notes
4	Step Fund Local Currency Requirements through sale of US Dollars or EURO from respective Zero Balance Account (ZBA). For Country Offices without a ZBA, complicated banking arrangements, or sanction restrictions, direct replenishment should be requested from Treasury.	Responsible Party	Template/Guideline UNDP Country Office Weekly Detailed Cashflow Projection Sheet UNDP Country Office Weekly Cash Flow Projection Guide for Country Offices	Explanatory Notes UNDP Country Office Weekly Detailed Cashflow Projection Sheet UNDP Country Office Weekly Cash Flow Projection Guide for Country Offices

1	Step Maintain local interface if CO has already established local interface with prior approval from the Treasury.	Responsible Party	Template/Guideline SOP for Web e-Banking	Explanatory Notes Country Offices must establish and approve the SOP for implementation of local e-banking interface using banks web/online tool.
2	Step Seek Treasurer approval prior to implementing electronic interfaces with local banks	Responsible Party CO	Template/Guideline E- Banking with Quantum Design and Implementation Guidelines	Explanatory Notes The description of the UNDP banking interface given above also pertains to local banking interfaces. Please refer to attached template: E-Banking with Quantum Design and Implementation Guidelines.
3	Step Provide guidance (on interfaces with local banks).	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
4	Step Certify and approve payments in Quantum	Responsible Party CO	Template/Guideline	Explanatory Notes Quantum generates payment instructions files.
5	Step Send payment instructions for AP, Payroll, and T&E to the local bank via an agreed transmission protocol	Responsible Party CO	Template/Guideline	Explanatory Notes
6	Step Confirm receipt and status of the payment instructions	Responsible Party Local bank	Template/Guideline	Explanatory Notes

Subscribe to

Policy Areas

Purchase Orders and Commitments

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Project Cash Advance (PCA)

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step