| United Nations Development Programme

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

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.

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Policy Areas

Forecasting Cash Flows

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Management of Cash Planning

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

Establishment and Use of Electronic Banking Systems

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

Designating Signatories for Zero Balance Accounts

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

Delegation of Signatories

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party