| United Nations Development Programme

Step

Review whether or not a Transactional Signer is required for the account and inform Treasury.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

Signatories that operate a bank account are defined as “Transactional Signers.” Transactional Signers are only payment instructions (such as cheques or transmittal letters) to the bank.

Step

Recommend suitable staff to be members of the signatory panel for the Zero Balance Account (ZBA) controlled by his/her office.

Responsible Party

Head of Office

Template/Guideline

All Bank Accounts Signatory Update Request Form

BOA 2019 Signature Card latest version template

Explanatory Notes

Step

Designate the recommended staff as signatories to operate the Zero Balance Account after receiving the request from the Head of the Office on the Bank of America signatory update form

Responsible Party

Treasurer

Template/Guideline

Explanatory Notes

Step

Request the changes in the signatory panel through the established channel. Provide the full details of designated signers to the Treasurer by including title, index number and contract status of the individual along with a legible copy of a currently valid Laissez Passer or national passport in requests to add signatories to the ZBA

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

Step

Delegate the Head of Office to designate and maintain the panel of signatories for locally domiciled bank accounts.

Responsible Party

Treasurer

Template/Guideline

Explanatory Notes

UNDP staff cannot serve as signatories on the bank accounts of other UN entities or national execution (NEX)/NIM projects.

Step

Maintain a central data base of signatories to all UNDP Accounts and retain the responsibility to maintain the signatory panel for zero-balance accounts.

Responsible Party

Treasurer

Template/Guideline

Explanatory Notes

Step

Review whether or not a Transactional Signer is required for the account and inform Treasury through the established channel.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

Signatories that operate a bank account are defined as “Transactional Signers.” Transactional Signers are only authorized to sign written payment instructions (such as cheques or transmittal letters) to the bank.

Step

Obtain written permission from Treasurer if less than two signatories will be used in the operation of UNDP bank account.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

The operation of UNDP bank accounts requires two signatories. Exceptions to this rule require the written approval of the Treasurer.

Step

Select members of signatory panel, who shall have the following characteristics:

Signatories must hold a UNDP FTA or TA contract
Locally recruited staff may be signatories
Two JPOs cannot sign jointly
Personnel Services Agreement holders (IPSA, N-PSA), UNV contract holder and consultants cannot be signatories
Staff of other UN Agencies cannot be signatories

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

The Head of the Office is accountable for the selection and performance of the panel member. The Head of the Office should nominate only those individuals who he/she feels demonstrate the integrity, and competency to perform the responsibilities of the role.

Step

Inform Treasury of the Head of the Office approved changes through the established channel. Provide the full details of designated signers to the Treasurer by including the title, index number and contract status of the individual along with a legible copy of a currently valid and signed Laissez Passer or national passport.

Request the changes in the signatory panel through the usual IDAM role assignment process (once the bank signatory change processes are migrated to IDAM).

Responsible Party

Operations Manager,

Head of Finance

Template/Guideline

Explanatory Notes

Step

Review a list of staff who are authorized to sign routinely to ensure that the information is current and that there are sufficient - but not too many - signatories to ensure the smooth functioning of the office.

Responsible Party

Business Unit Head

Template/Guideline

Explanatory Notes

Signatory Panels are necessary to proper functioning of "Internal Controls" and function as one of the three authorities outlined in the Internal Control Framework.

Step

Ensure compliance with the segregation of duties for the role described in the Internal Control Framework.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

I.e., a bank signatory must not prepare the bank reconciliation, nor create A/P vouchers or deposits; and where only one bank account signatory is authorized by the Treasurer, the signatory cannot also be a supplierapprover (i.e., cannot hold a Supplier Maintenance role in IDAM).

Step

Ensure that all disbursements from UNDP bank accounts are valid and approved payments.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

This responsibility is executed when signatories sign checks and/or approve bank transfers.

Step

Ensure that UNDP bank accounts are used for UNDP business only.

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes

This responsibility is executed when signatories sign checks or transmittal letters and/or approve manual payment instructions.

1	Step Receive reliable information of the imminent insolvency and/or closure of the bank where UNDP cash is held.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
2	Step Seek the Treasurer’s authorization to close the UNDP bank account.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
3	Step In emergencies, if unable to contact the Treasurer, withdraw balance(s) held in UNDP bank account(s) and deposit this amount to a new account opened with another bank.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
4	Step Inform the Treasurer of closing of bank account.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
5	Step If the Treasurer can be contacted, await their approval.	Responsible Party Business Unit Head	Template/Guideline	Explanatory Notes
6	Step Withdraw balances held in the UNDP account(s) with that bank and deposit these amounts to a new account.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
7	Step Send the official letter to close the bank account.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes

1	Step Receive official opening letter from the Treasurer, shortly after verbal or written authorization.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
2	Step In an emergency, open UNDP back account without the authorization of the Treasurer if the CO Representative is unable to contact the Treasurer.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
3	Step Inform the Treasurer about the new bank account as soon as possible after the action is taken.	Responsible Party RR/Business Unit Head	Template/Guideline	Explanatory Notes
4	Step Document the account opening action, create the bank account in Quantum, provide necessary instruction to CO.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes

1	Step Request Treasurer to open a bank account.	Responsible Party Resident Representative	Template/Guideline	Explanatory Notes
2	Step Review bank account opening request, assessing the need for the bank account.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
3	Step Approve/decline bank account opening request.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
4	Step Arrange for preparation of the official letter to open the bank account if the request is approved.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes Normally, the official title of the account will be “UNDP Representative (currency designation) Account” for Country Office bank accounts. The titles for Headquarters accounts will vary depending on the purpose of the account.
5	Step Send Official Letter to open bank account to bank.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes
6	Step Provide UNDP an account number and advise that the bank account is operational. This information must be documented in writing on the bank’s letterhead and provided to Treasury.	Responsible Party Bank,	Template/Guideline	Explanatory Notes
7	Step Create the bank account in Quantum and communicate the Quantum details to CO.	Responsible Party Treasurer	Template/Guideline	Explanatory Notes

1	Step Provide guidance at all stages of bidding process.	Responsible Party Treasurer	Template/Guideline User Guidelines for RFP for Banking Services User Guidelines for RFP for Banking Services_French User Guidelines for RFP for Banking Services_Spanish RFP for Banking Services RFP for Banking Services_French RFP for Banking Services_Spanish	Explanatory Notes
2	Step Evaluate proposals	Responsible Party CO	Template/Guideline RFP Evaluation Tool RFP Evaluation Tool_French RFP Evaluation Tool_Spanish	Explanatory Notes To evaluate the proposals, follow the steps outlined in User Guidelines for RFP for Banking Services
3	Step Inform the Treasurer of the following: Start of the procurement process. List of banks recommended for participation in the bidding process. Recommendation of the local CAP as to which bank will provide best value for money.	Responsible Party CO	Template/Guideline	Explanatory Notes The Treasurer must receive this information along with a copy of the evaluation documents and the minutes of the ACP before a final decision can be taken at HQ
4	Step Evaluate, separately, the technical and financial proposals	Responsible Party CO	Template/Guideline	Explanatory Notes
5	Step Present the results to the local Committee on Contracts, Assets and Procurement (CAP)	Responsible Party CO	Template/Guideline	Explanatory Notes
6	Step Review and endorse project	Responsible Party CAP	Template/Guideline	Explanatory Notes
7	Step Recommend the change to the Treasurer	Responsible Party Business Unit Head	Template/Guideline	Explanatory Notes
8	Step Manage the bank relationship, annual review of existing or most recent bank services.	Responsible Party CO	Template/Guideline Annual Bank Services Scorecard	Explanatory Notes Bank Scorecard must be completed to evaluate services of existing banker on annual basis and a copy should be provided to the Treasurer.

Step

Based on the HACT capacity assessment, make a decision to adopt full UNDP support to national implementation.

Responsible Party

Template/Guideline

Explanatory Notes

Refer to the POPP HACT chapter.

Step

Ensure that the annual work plan specifies outputs and corresponding implementation modalities.
Describe the nature and scope of services in annexes to the project document or annual work plan.
Sign a letter of agreement between UNDP and the government

Responsible Party

Implementing Partner

Template/Guideline

Letter of Agreement (LOA) between UNDP and an Implementing Partner for the Provision of Support Services

Explanatory Notes

Letter of agreement between UNDP and an Implementing Partner for the Provision of Support Services

The implementing partner has full programmatic control and so full accountability for and ownership of project activities.

Step

Undertake services following UNDP regulations, policies and procedures.

Responsible Party

Template/Guideline

Explanatory Notes

UNDP is accountable for the provision of the services required, and their quality and timeliness.

Step

Review preliminary Combined Delivery Report in the CDR Bridge Platform or in Atlas.

Verify that all financial information is complete and correct. Ensure the report is consistent with the annual work plan and Atlas project budget.

Make required adjustments, including rejection or correction of recorded expenses in Atlas before the quarterly/year-end closure of the ATLAS general ledger and submodules by OFM.

Responsible Party

Template/Guideline

CDR Guide

UNDP Programme and Project Management - PPM POPP

Explanatory Notes

CDR Bridge platform

CDR Bridge Navigation Guide

Atlas CDR Navigation:

Main Menu > UN Reports > Project Management Reports > Portfolio Analysis > Combined Delivery Report

Main Menu > UN Reports > IPSAS Reports > IPSAS CDR by Project.

Step

Quarterly/year-end closure of ATLAS general ledger and submodules automatically triggers creation of CDRs in the CDR Bridge Platform.

Responsible Party

OFRM Chief of Accounts

Template/Guideline

Explanatory Notes

Quarterly closure of the general ledger and submodules is communicated via email by OFM Accounts Unit.

CDR Bridge platform

Step

Grants access to UNDP programme staff authorized to approve CDRs in the CDR Bridge platform

Responsible Party

RR/DRR/Operations Manager

Template/Guideline

Explanatory Notes

RR/DRRs/OMs have rights in the CDR Bridge platform to grant access to staff in their office.

CDR Bridge platform

Step

Responsible Party

Template/Guideline

Explanatory Notes

Programme staff enters the email of the Implementing Partners certifying official against individual Atlas Awards in the CDR Bridge Platform.

CDR Bridge platform

Step

Confirm CDR Report by Atlas Award is complete and accurate in the CDR Bridge Platform.

Responsible Party

Template/Guideline

Explanatory Notes

The confirmation triggers an email to be sent to the implementing partner registered against the Atlas Award with a cover letter requesting the implementing partner to certify the CDR within 15 calendar days from the date the request is sent.

If no implementing partner was assigned to the Atlas Award, the CDR can be printed manually and mailed to the partner.

Certification is only mandatory for the 2nd, 3rd and 4th quarters.

Step

Certify CDR report in the CDR Bridge Platform

Responsible Party

Implementing Partner Certifying Official

Template/Guideline

Explanatory Notes

The CDR is certified (or rejected) by the implementing partner authorized official in the CDR Bridge platform. If CDR is rejected, the implementing partner enters comments in the CDR Bridge Platform explaining the rejection.

If the CDR was mailed to the partner, the certified hard copy is mailed back to UNDP.

Step

CDR Bridge platform sends an automated follow-up request to the implementing partner if no response is received within 15 calendar days of the initial request.

Responsible Party

CDR Bridge Platform

Template/Guideline

Explanatory Notes

The follow-up request states that the CDR shall be deemed to have been accepted if no response is received within 15 calendar days from the date the follow-up request.

If the CDR certification was mailed to the partner, the follow-up request also needs to be printed and mailed to the partner.

Step

Receipt of certified CDR

Responsible Party

Template/Guideline

Explanatory Notes

If the CDR is certified in the CDR Bridge Platform by the implementing partner, the CDR is flagged green.

If no response is received within 15 days of the second request, the CDR is flagged blue and is deemed to have been accepted.

If a manual copy of the certified CDR was mailed back by the partner, it needs to be scanned and uploaded into the CDR Bridge Platform.

UNDP Programme staff should follow-up on rejected CDRs and take appropriate actions.

Step

The Q4 certified CDR is required by auditors as the basis for auditing expenses of nationally implemented projects.

Responsible Party

Auditor firms (service providers)

Template/Guideline

Explanatory Notes

OAI requires audit firms (service providers) who carry out HACT financial audits or DIM audits to include in their audit reports a copy of the signed CDR for Q4. Therefore, at year-end, offices should ensure all Q4 CDRs are certified.

Step

Send signed FACE forms with copies of supporting documents as necessary to UNDP, including the ICE template. Maintain all original supporting documentation.

Responsible Party

Partner

Template/Guideline

UNDP Itemized Cost Estimate (ICE) Template

FACE form Template

Explanatory Notes

Since the partner is responsible for procurement copies of supporting documentation are only supplied when specifically requested by UNDP (when a greater degree of oversight is deemed necessary).
The FACE form signed by the designated official is the supporting documentation used by UNDP to process payment.

Step

Ensure signature on the FACE form matches with the record of partner authorized signatures.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Internal control—first approval

Note that as the procurement has been performed by the partner, the transaction for UNDP begins with Quantum Accounts Payable (AP) module Invoice regardless of amount.

Step

Review request and background documents where applicable for reasonableness and consistency with the project budget and annual work plan

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Step

Confirm that request is within the available Quantum project budget and available resources.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Report (PowerBI) and Quantum Project Budget Balance Report can be used to monitor the reported Partner expenditures and budgets.

Step

Ensure supplier name, address and banking details are supplied.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Periodically review the supplier master file to avoid duplication of suppliers.

Step

Verify that the supplier is authentic, is not on the UN Security Council 1267 Committee's list of terrorists and terrorist financiers, and is not on the UNDP list of suspended and removed suppliers.
If the supplier does not already exist, create and approve the supplier profile in Quantum.
If the Quantum external access facility is used, then the partner creates the supplier profile and the accounts payable (AP) invoices. Before approving the supplier and payment invoice, UNDP verifies the supplier.

Responsible Party

Buyer/supplier maintenance officer [level approver]/GSSC Approver

Template/Guideline

Explanatory Notes

Check the Lexis-Nexis dashboard to confirm if the supplier is listed in the sanctioned list, and if so the Office will need to contact Vendor Review Committee(VRC) for advise on how to proceed with the pending payments due to the sanctioned supplier

Step

If all is in order, the FACE form shall be approved by the Head of Office, accept the payment request and raise invoice in Quantum AP module; sign and submit it to the approving officer.

Responsible Party

UNDP Programme Officer,

UNDP CO Approver

Template/Guideline

Explanatory Notes

Direct Payments shall only be made in local currency. Requests for non-local currency payments should be submitted to UNDP HQ Treasury for appropriate approval in line with POPP.

When the project document or the annual work plan have clearly identified activities and expenditures to be incurred in non-local currency, UNDP HQ Treasury approval is not required.

All such cases should be approved by the Head of the Office.

Offices should submit to GSSC the necessary supporting related to non-local disbursement.

Step

Reject payment request where results of review are not satisfactory.
Communicate with the partner to resolve contentious matters.

Consider any other knowledge that should prevent payment by UNDP i.e., fraud red flags, and seek adequate explanation as appropriate.

Responsible Party

UNDP CO Approver

Template/Guideline

Explanatory Notes

Step

Review Quantum Invoice, FACE forms and supporting documents for consistency and proper authorization (i.e., signed by authorized official).

Responsible Party

GSSC Second Approver

Template/Guideline

Explanatory Notes

Internal control—second approval

Step

Disburse funds. See POPP: Disbursing Funds

Responsible Party

Template/Guideline

Explanatory Notes

Internal control—third approval

Step

Inform partner when payments are made.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Step

Reject the expense where information becomes available that questions the appropriateness of direct payments already made.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

In Quantum, expenses recorded from direct payment are reversed in the Quantum AP module and a corresponding accounts receivable is recognised in GL account 14095 Non-Staff Receivable - Miscellaneous. .

Step

Open bank account to receive advances.

Note: The opening of a dedicated bank account for project/(s) is encouraged as a risk mitigation measure where deemed appropriate. However, where this option is not feasible or practical due to local regulations or other valid reasons, UNDP may permit the funds to be deposited in a central government bank account or bank account with funds from other sources provided the partner has a robust financial accounting system which accurately tracks funds provided by UNDP and is able to meet UNDP reporting requirements.

Responsible Party

Partner

Template/Guideline

Explanatory Notes

Bank accounts opened by the Partners for advances should not be owned by UNDP or opened in UNDP’s name. UNDP offices should not make arrangements for opening or closing of project bank accounts operated by Partners, and UNDP staff should not be signatories on these accounts. The Partner is responsible and must implement strict controls including performing bank reconciliations at least monthly and must maintain supporting documents, in accordance with UNDP document retention policy, related to the utilization of funds provided by UNDP.

Any interest earned in bank accounts from advances provided by UNDP must be distinctly itemized on the FACE forms. For traceability and reconciliation purposes, the earned interest needs to be reported on the Combined Delivery Report (CDR), which is the official document used by auditors and government counterparts. However, the use of revenue account (5xxxx) will prevent the earned interest to be reflected in CDR reports. As a result, offices should record this earned interest through Zero Dollar Invoice (ZDI):

1. When the interest is reported as earned by the partner (but has not been remitted to UNDP): Debit account 16005 (NEX Advances) and Credit account 74510 (Bank Charges) with the total amount of interest reported by the partner for a specific reporting period.
2. When the interest is refunded to UNDP or utilized by the partner to cover project expenses: Debit the related Cash account 4xxxx) for refund; OR Debit Expenses (7xxxx) when the funds have been utilized; and Credit the NEX Advance account (16005)

The UNDP programme and finance team should ensure that the bank statement(s) are verified for evidence of the earned interest during assurance activities (audit or spot check).

Step

Provide the UNDP office with a detailed record of authorized project personnel, including samples of their signatures.
At a minimum, include a principle signatory and an alternate.

Responsible Party

Partner

Template/Guideline

Explanatory Notes

These authorities will have signed the annual work plan and UNDP offices should ensure FACE forms are signed by these designated officials. This record has to be kept in the UNDP office for internal control and assurance activities purposes.

Step

Keep project files and related records, and make necessary updates including:
- Bank account details
- List of authorized signatories with samples

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Where a separate bank account is maintained by the Partner for receiving and tracking UNDP funds, UNDP offices should maintain up to date records of the bank account.

Step

Plan project activities in line with annual work plan for the next quarter
Establish availability of funds.
Review that funds requested are in line with the annual work plan.

Responsible Party

Partner,

Project Director

Template/Guideline

Explanatory Notes

All payments against advance funds must be supported with purchase orders (for procurement reaching purchase order level), original quotations, invoices, goods received notes and original signed payment vouchers. All these documents must be kept by the Partner in their original forms and made available to the auditor and/or UNDP monitoring team when they request them during assurance activities (audits and spot checks etc)

The amount requested must reflect a realistic forecast of funds needed for the period requested. A single advance must not exceed the realistic quarterly work plan which is ( Jan – Mar, April – June, July – Sept and Oct – Dec) of the accounting year). However, within the quarter, depending on the availability of funds and timing of receipt of contributions, more than one advance may be provided. A single advance must not provide funds that will be utilized over two quarters.

Step

Prepare, sign and submit FACE forms, including the ICE template, each time the project needs funds, and at least quarterly. Include a copy of the bank statement showing the closing cash balance for the relevant quarter. As necessary, include a reconciliation to the balance of cash funds available as shown in the FACE form. (The reconciliation does not apply if the Partner does not maintain a separate bank account for the project in question)

Responsible Party

Partner

Template/Guideline

UNDP Itemized Cost Estimate (ICE) Template

FACE Form

Explanatory Notes

FACE forms to liquidate advances should be submitted to UNDP no later than 15 days after the end of each quarter. Offices may agree to reasonable extensions to this deadline after consultation with OFM but any extension should take into account the need to have the expenditures recorded before the quarterly closure of financial ledgers in UNDP's Quantum system.

UNDP offices should ensure FACE forms are signed by designated officials as indicated in the annual work plan.

Step

Verify FACE forms as submitted by the Partner.

-Confirm that advance request is within available Quantum project budget and available resources.
-Confirm Quantum Distribution ( Operating Unit – Fund – Expenditure Department – Responsible Party – Donor) is the same in the annual work plan and Quantum project budget.
-Check Partner signature against sample in project agreed specimen signatures submitted by Partner
-Check that opening balance equals the closing balance of the last FACE form.
-Check the arithmetic accuracy of the FACE form.
-Determine that the reported expenses and requested advance are appropriate and necessary to achieve programme outcomes, within the period covered by the advance, as set out in the annual work plan, project budget and other available documentation.

-Consider assurance activities (audit and spot checks) and existing assessment reports, and whether there are any grounds to withhold or reduce funding.
-Verify the following criteria has been met before approving an advance request:

Criteria I (partner and individual output): At least 80% of the previous advances to the output have been liquidated, and;
Criteria II (partner and individual output): 100% of all earlier advances (i.e. advances before the latest previous advance) have been liquidated. This rule applies to outstanding advances preceding the last advance (penultimate advance), and;
Criteria III (partner's aggregate outputs): for partners managing more than one output, the partner has no outstanding advances greater than 12 months on any particular output. All outputs managed by the partner should be taken into consideration in determining whether the partner has met criteria #3.

A Quantum AP invoice cannot be created unless all the above 3 criteria are met and for proper assessment of the rule, FACE forms liquidating previous advances must be processed prior to recording new advances included in the same FACE form. In the event of non-compliance, the CO should seek pre-approval from the Regional Bureau on the exception(s). Where the bureau exercises exceptional approval for new advances that do not meet these 3 criteria Offices must document these exceptions and archive it in the project file for audit trail

Ensure the Partner's complete vendor details including payments instructions are in Quantum and for any request to revise payment details, offices should follow established procedures for changes to vendor master data including procedures for review and approval.

Upon review and verification of the above, the UNDP Head of Office shall:
Accept: sign and approve the FACE form;
Request the Partner to amend the FACE form for any errors or omissions and resubmit; or
Reject the FACE form, keeping a copy on file; returning it to the Partner stating reasons for rejection.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Internal control check one of three

Do not neglect programme issues including findings from audits, assurance activities and capacity assessments. This is not simply a bookkeeping process. The advances should only be made where the programme officer agrees this is appropriate and necessary to achieve the programme outcomes.

The Quantum UN Account Analysis Report (General Account Analysis Report) can be used to monitor advance issued to partners

Advances should be requested by the Partner and charged in Quantum to the corresponding donor/fund combination, depending on activities involving expense and their associated funding. In this way, the reservation of funds corresponding to advances will be recorded in the correct donor fund.

Only approve and sign the FACE form if all requirements of this section are successfully met.

Step

Submit payment request and approved FACE form to GSSC for Payment.

Responsible Party

Template/Guideline

UNall

Explanatory Notes

The UNDP Office should submit the request for payment together with the approved FACE form to GSSC.

Step

Raise a Quantum accounts payable (AP) prepayment invoice charging Advances account 16005 (NEX Advances) for advances or GL Expense account 7xxxx for reimbursement with the Partner (government department or other national institution) as the payee and the corresponding donor and fund combination.

Ensure amount, currency, payee, account codes are consistent with the supporting FACE form.

The FACE forms should be reviewed and approved by the UNDP programme officer who should ensure the appropriate distribution fields are reflected in the FACE form and in request to raise a prepayment invoice.

The Quantum AP module invoice with supporting FACE form needs to be shared to the approving manager for the second approval level.

Responsible Party

UNDP office Finance Officer/GSSC Payables unit

Template/Guideline

Quantum

Explanatory Notes

Never make vouchers payable to individual government or UN agency employees. The Partner should be the payee and ensure it matches the name on the recipient bank account.

Advances shall only be made in local currency. Requests for non-local currency payments should be submitted to UNDP HQ Treasury for appropriate approval in line with POPP.

When the project document or the annual work plan have clearly identified activities and expenditures to be incurred in non-local currency, UNDP HQ Treasury Approval is not required.

All such cases should be approved by the Head of the Office.

Any unspent balance must be returned by the partner in the same currency in which the advance was received.

Offices should submit to GSSC the necessary supporting documents related to non-local disbursement.

Supporting documents for reported expenditure should be verified during assurance activities (spot checks and audits). If expenditures are not adequately supported, the programme office should a) seek adequate explanation from the Partner, b) consider performing alternative procedures, c) corroborate explanations provided by the partner with other sources, d) consider performing additional assurance activities to verify there are no more occurrences, e) documented in a Note to File signed by the Head of Office or his/her designee how the issue has been addressed.

Any unsupported/ unexplained expenses which have not been explained to the satisfaction of UNDP offices should be rejected and offices should ensure the expenses are not resubmitted in subsequent reports by the Partner.

Step

Approve payment after review of the AP invoice and supporting FACE form for accuracy, consistency (amount, currency, payee, account codes) and proper authorization.

Take into consideration any factors that would prevent UNDP from making payments e.g. fraud red flags and seek adequate explanation as appropriate

Responsible Party

GSSC Payables unit

Template/Guideline

Quantum

Explanatory Notes

Internal control check two of three

Approve Quantum accounts payable (AP) prepayment invoice in accordance with UNDP Office or GSSC payment approval thresholds.

For Budget Checking:

The voucher follows the same process as any other Quantum accounts payable (AP) prepayment invoice and disbursement (see POPP: Expense Management). All fields in the Quantum AP module Distribution in “Manage Distribution” including the Project Distribution segment (e.g. Project ID, Task ID, Responsible Party).

Step

Disburse funds. See POPP: Disbursing Funds.

Run the PayCycle for approved payments and send the payment details to the designated bank in accordance with the established SOP.

Responsible Party

GSSC Payments unit

Template/Guideline

Quantum

Explanatory Notes

Internal control check three of three.

Note: Payments for national implementation projects shall only be made in local currency.

Non-local currency payments shall only be made, after the necessary approval stipulated in paragraph 9 of the Direct Cash Transfers and Reimbursements policy is obtained.

Step

Liquidation of direct cash transfers (advances) based on FACE forms:

* Review reported expenses on the FACE form for reasonableness and consistency with programme activities, annual work plan, project document and/or other related agreements with UNDP. Verify that progress is being made towards the achievement of expected results.

- Verify in Quantum that expenses have been disbursed and are reported in accordance with the provisions of the project budget and annual work plan and are consistent with project budget structure and chart of accounts (Project, Activity, Donor, Fund and Account).

- Confirm that expenses are within available Quantum PPM budget, as well as available advance balances.

* Ensure expense Distribution in Quantum AP module (Managed Distribution) matches the previously recorded advance Distribution. All fields in the Quantum AP module Distribution in “Manage Distribution” including the Project Distribution segment (e.g. Project ID, Task ID, Responsible Party).

Ensure that expenses are in the same currency as related advances.

Check the Partner signature for certification of expenses against the sample signature in project files.

Based on the above verification and review steps:

Accept: sign and approve the FACE form;
Request amendment to the FACE form from the Partner; or

Reject the FACE form, keeping a copy on file; return to the Partner with reasons for rejection.

Responsible Party

UNDP Programme Officer

Template/Guideline

Quantum

Explanatory Notes

First internal control approval
Upon receipt of FACE forms, the UNDP Programme Officer exercises UNDP's accountability by diligently undertaking all review and verification steps. The FACE form is only accepted (approved and signed) when reported expenses meet all of UNDP's requirements.
Useful Monitoring Reports:
The GL Account Analysis Report (PowerBI) and Quantum Project Budget Balance Report can be used to monitor the reported expenditures and budgets to Partners

Step

Recording of reported expenditures against the prepayment:

The Partner uses a FACE form to report the expenses incurred from the cash advanced, after which a standard invoice is raised in Quantum AP module and applied against the prepayment invoice to recognise the expenditure.

Credit: Advance GL account 16005
Debit: Expense accounts (7xxxx) in line with Quantum budget and signed annual work plan

For reimbursements that are reported after the closure of the pay cycle for the year. The excess expenditure reported above the prepayment amount will become payable on the standard invoice. If the excess expenditure is not paid by the year end, it will appear in Quantum as unpaid invoice, like any other unpaid invoice.

Submit the Quantum AP module Invoice and supporting FACE form(s) to the approving manager.

Responsible Party

GSSC Payables unit

Template/Guideline

Quantum

Explanatory Notes

In Quantum accounts payable (AP) module, the standard invoice used to apply the prepayment liquidation will be paid if the reported expenditure exceeds the amount advanced to the partner.

The funds are budget-checked (validated) for funds availability when the advance is made and recorded in account GL 16005 (NEX Advances), and when the expenditure is recorded. i.e., both the prepayment invoice and the standard invoice need to be validated.

Step

Approval of Quantum accounts payable (AP) standard invoice to record expenses:
Review Quantum Payable module standard invoice and ensure the voucher agrees to the FACE forms and that both are approved and signed by the programme officer. Verify consistency of amounts, currency and account codes.

Take into consideration any factors that would prevent UNDP from making payments e.g. fraud red flags and seek adequate explanation as appropriate.

Ensure the payment is recorded in the period that the expenses were incurred by the partner and not when UNDP has signed off on the FACE form.

Responsible Party

GSSC Payables unit

Template/Guideline

Quantum

Explanatory Notes

Second and final internal control approval

The approving manager /officer approves the applied standard invoice in Quantum.

The invoice will record expense, and only at this point is delivery (i.e. expense) recognized in Quantum.

Step

Receive funds and make disbursements.

Responsible Party

Partner,

Project Director

Template/Guideline

Explanatory Notes

The partner makes disbursements according to the annual work plan and keeps records of all transactions. When more funds are needed, the project director proceeds again from step 3.

Step

Reconcile the cash funds available as stated on the FACE forms to:

Balance as stated in Quantum a/c 16005
Project bank statement where a separate project bank account is used
Sign the FACE forms to affirm a reconciliation review. Make these available for audit inspection.

Responsible Party

UNDP Programme Officer

Template/Guideline

Explanatory Notes

Where there are errors in either the FACE form or Quantum, follow up promptly to resolve.
Make adjustments in Quantum accounts payable (AP) as required (see POPP: Expense Management).

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Policy Areas

Designating Signatories for Zero Balance Accounts

Step

Responsible Party

Template/Guideline

Explanatory Notes

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Delegation of Signatories

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Closing a Bank Account in an Emergency Situation

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