| United Nations Development Programme

Step

Provision or Impairment of Financial Assets and Accounting for Fraud and Financial Loss

Responsible Party

Template/Guideline

Standard Operating Procedure: Provision or Impairment of Financial Assets and Accounting for Fraud and Financial Loss

Explanatory Notes

The Standard Operating Procedure document provides the procedures to be applied for the recognition of an allowance for doubtful accounts, as well as the treatment of losses due to fraud and financial loss. The procedure contains two sections:

The first section provides the process and procedure for determining an allowance/impairment for financial assets in the UNDP accounts.
The second section depicts the accounting procedures related to losses due to fraud and financial loss.

Step

Submission of the request for termination of appointment.

Responsible Party

Bureau or Country Office

Template/Guideline

Explanatory Notes

Step

Review of the request in section 1.0.

Responsible Party

OHR Business Partner and Legal Office

Template/Guideline

Explanatory Notes

Review by Legal Office necessary in all cases

Step

Approval of the request in section 1.0.

Responsible Party

Assistant Administrator and Director, BMS

Template/Guideline

Explanatory Notes

Approve termination of appointment.

Step

Implementation of the decision.

Responsible Party

OHR Business Partner,

Staff member

Template/Guideline

Explanatory Notes

Notify Staff Member and prepare Request for Personnel Action.

Receive notification.

Calculation of indemnities.

Implement termination decision.

1.0

Step

Establish grant selection committee (if different from project board and/or portfolio board).

Responsible Party

Project Developer and/or Portfolio Developer

Template/Guideline

Low Value Grants Operational Guidance

Explanatory Notes

Low Value Grants Operational Guidance

2.0

Step

Define grant selection criteria.

Responsible Party

Project Developer and/or Portfolio Developer

Template/Guideline

Explanatory Notes

Note that grant selection criteria are often determined or influenced by the funding source.

Low Value Grants Operational Guidance.

2.1 OPT

Step

Conduct specific implementing partner capacity assessment for on-granting in line with the selection criteria.

Responsible Party

Project Developer and/or Portfolio Developer

Template/Guideline

The PCAT tool is a macro excel file which contains macros. To complete the download of the PCAT, please follow the quick guide under the explanatory notes.

Partner Capacity Assessment tool

Explanatory Notes

The partner capacity assessment tool has a worksheet for on-granting, which is enabled only when on-granting is used. (Quick Guide to Downloading the PCAT).

3.0

Step

Solicit grant proposals in line with the project document and/or portfolio document.

Responsible Party

Project Manager

Template/Guideline

Self Certification (Programming Entities)

Explanatory Notes

Both the overall project and/or portfolio purpose and the grant selection criteria should be referenced.

Low Value Grants Operational Guidance

Grant proposals to include the signed Self Certification (Programming Entities)

4.0

Step

Selection of grantees and award of grants.

Responsible Party

Grant selection committee or project board and/or portfolio board

Template/Guideline

Low Value Grant agreement

Partner Capacity Assessment Tool

Explanatory Notes

The process of selection is described in the terms of reference of the grant selection committee.

Low Value Grants Operational Guidance

Grantees’ capacities are assessed through the Partner Capacity Assessment Tool, which assesses the grantee management and other capacities. The PCAT is completed for low value grants. (Quick Guide to Downloadingthe PCAT).

Step

Create a user map of all external partners who will require, or potentially require, electronic signatures

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

The CO may need to interface with an external partner in using e-signatures on electronic documents.

Step

Determine whether current UNDP electronic signatures solutions are compatible with and acceptable to external partners.

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Review of the current e-signatures solutions and their use will provide an update on status and gaps when compared to the users of electronic signatures.

Step

Compare new or current solutions with the authenticity and integrity of the electronic signatures policy (Corporate and Regional LTAs for e-signatures) and with the list of existing and emerging corporate systems and solutions for electronic approvals.

Responsible Party

Operations Manager/IT Manager,

Procurement

Template/Guideline

Electronic Signatures Policy

List of UNDP Systems and Tools for Electronic Records and Approvals

Explanatory Notes

It’s important to ensure that the solutions suit and comply with the policy, and that the list of existing and emerging corporate systems, and solutions for electronic approvals has been considered.

Step

Compare new or current solutions with the other policies mentioned in the Electronic Signatures Policy

Responsible Party

Operations Manager

Template/Guideline

Information Security Policy

Electronic Signatures Policy

Minimum Standards for ICT Infrastructure and Technology

Explanatory Notes

It’s important to ensure that the solutions suit and comply with existing POPP Policies.

Step

Based on the results of the review, technological solutions can either be used or replaced with more appropriate solutions

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Ensure that technical solutions are kept current and meet the technical requirements for electronic signatures.

Step

Complete a brief report on the review and repeat this procedure annually

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

The report should be filed for auditing purposes.

Step

Communicate new procedure and technological use

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

The system will only work if users know how to use it. It’s important to spend time training staff and communicating the method for employing electronic signatures.

Step

Determine and prioritize which Partner require micro assessment.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

Step

Develop micro assessment plan.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

Step

Solicit third party service provider.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

See TOR of service provider for the micro assessment.

Step

Perform micro assessment.

Responsible Party

Service Provider

Template/Guideline

Revised Partner Capacity Micro Assessment

Explanatory Notes

Key output are:

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

Step

Review results of micro assessment.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

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

Step

Establish impacts and implications on AWP design.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

Step

Identify requirement for HACT assurance planning.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

Step

Document Partner risks as appropriate.

Responsible Party

Office

Template/Guideline

Explanatory Notes

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

1.0

Step

Identify and estimate costs in all anticipated programmatic and operational support from UNDP country offices and HQ cost.

Include all support services and DE in development project proposals.

Responsible Party

Country Office Project Manager(s)

Template/Guideline

Project Document Template

Guidelines for Project Budgeting and Costing Funding from the European Union

Project Costing and UNDP Support Services GEF Financed Projects

Guidance Note on Planning and Costing Global Fund (GF) Projects

Explanatory Notes

All project inputs, including those provided by UNDP staff, should be fully budgeted and included in the multi-year work plan.

The requirements for developing a project budget are outlined in Prepare Fully Costed Budgets for Projects.

Refer to the detailed procedures for Costing and Budgeting of projects funded by the following partners:

2.0

Step

Assess and budget annually, support services required from UNDP HQ and country offices in each development project.

Responsible Party

Country Office Project Manager(s)

Template/Guideline

Guidelines on UNDP Country Office Workload Survey

Guidelines on UNDP Country Office Workload Survey - French

Guidelines on UNDP Country Office Workload Survey - Spanish

UPL or LPL

Annual Position Proforma

Workload Study Template

Explanatory Notes

Apply workload study results to estimate and validate the cost of support and DE services from UNDP CO and HQ to projects.

3.0

Step

Determine appropriate methodology to finance all support and DE services from development projects.

Responsible Party

Template/Guideline

Guidance note for Atlas position type - Guidance for Quantum will be available soon-

User guide on DES (DPC) account codes

User Guide for DES (DPC) Entries in Quantum

DPC webinars corporate communications and FAQs

Annex 1: Managing a Delivery Enabling Services Project for Pre-Positioning Capabilities Until Information on Projects to be Charged Becomes Available

Explanatory Notes

Delivery Enabling Service Cost, formerly known as “Direct project costs" (services) can be charged via multi-COA positions (payroll) -preferred method, UPL/LPL billing, zero-dollar Invoices (in Quantum Payables module) and quarterly reversals from a delivery enabling services project (refer to pre-positioning capacity needs as per Annex 1 of this policy).

3.1

Step

Pre-financing:

When the development project COA is not available, the units can establish a delivery enabling service project (pre-financing) until information projects to be charged becomes available.

Responsible Party

Template/Guideline

DPC Exception Reports

Explanatory Notes

Atlas query for 2022 data- UN_DPC_PRE_FINANCING (KK) – KK data of all projects with fund code 11309 revenue, expense and resource balances from KK – This could be useful to monitor the budget utilization of pre-financing in KK;

Atlas query for 2022 data - UN_DPC_PRE_FINANCING (GL) – GL data of all projects with fund code 11309 revenue, expense and resource balances from GL.

HQ and COs pre-financing project can be set up with Atlas Quantum fund 11309.

Provide a pre-financing either from XB ASL or a fund transfer from country co-financing cost-sharing fund (11888).

Enter annual budget in Quantum for a pre-financing.

On monthly or quarterly basis, review actual costs incurred in a pre-financing project and distribute the costs to development projects viaa zero-dollar Invoice in Quantum Payables module.

3.2

Step

Pre-financing:

At year-end, attribute all expenses from a pre-financing project to development projects to ensure a NIL expense in a pre-financing project.

If expenses cannot be transferred to development projects due to change in workload, reverse such expenses to the office institutional budget.

Responsible Party

Template/Guideline

Explanatory Notes

Year-end guidelines may require a certification on DPC account and balances in pre-financing fund (11309) by each office.

Review DPC exceptions reports and clear incorrect use of DPC accounts.

Any expenses remaining in pre-financing project at year-end should be reviewed and documented by the office management.

4.0

Step

Provide services to projects.

Responsible Party

HQ and Country Offices

Template/Guideline

Explanatory Notes

5.0

Step

Review regularly actual delivery of support services vis-à-vis actual costs incurred: Revise project budgets if necessary.

Responsible Party

Country Office Project Manager(s)

Template/Guideline

DPC implementation report is available on a quarterly basis.

DPC Implementation Report

Explanatory Notes

Revise position COA distribution and speed charts to reflect services required for projects; distribute expenses via a zero dollar Invoice in Quantum Payables module based on workload and UPL/LPL.

1.a.

Step

Estimate annual minimum contributions from host government

Responsible Party

CO Regional Bureaux

Template/Guideline

Explanatory Notes

Refer to an illustrative computation template in paragraph 11 of the policy

Support will be provided by OFM and Regional Bureau.

1.b.

Step

Perform biennial updates in income status for the programme countries

Responsible Party

Template/Guideline

Explanatory Notes

Biennial updates in income status for the programme countries can be found here.

Step

Inform and negotiate annual contributions with host government

Responsible Party

CO Regional Bureaux

Template/Guideline

Explanatory Notes

A letter from UNDP Resident Representative to the host government.

Annual contributions from host governments are normally made through exchange of letters based on SBAA.

But some countries have signed agreements for their annual contribution to local offices. These agreements are available from UNDP HQ: RBx, LSO and OFM.

Step

Submit a request via UNALL to create a master contract for expected contribution

Create annual contract for host government contribution

Responsible Party

CO,

Template/Guideline

Explanatory Notes

Cash payments from host governments are applied to the respective year’s master contract.

Step

Receive contributions and submit a request through UNALL.

Send “Thank you” letters to host governments.

Responsible Party

Template/Guideline

Explanatory Notes

COA
High-MIC and NCC fund – 11303
Account 51016 – current year and arrears

Prepaid for multi-year
Fund 11303
Account 51017

(to be reversed in the subsequent years to 51016 by GSSU upon CO request)

Step

Apply cash payments to a revenue event

Responsible Party

Template/Guideline

Explanatory Notes

Step

Report annually to UNDP stakeholders and UNDP Executive Board

Responsible Party

Template/Guideline

Explanatory Notes

UNDP financial statements, The United Nations Board of Auditors

The Documents for The Executive Board sessions, Annual review of Financial Situation, table 4

Step

Report to UNDP Executive Board through Integrated Budget

Responsible Party

Template/Guideline

Explanatory Notes

Integrated budget documents

Step

Initiate formal resolution by reporting incident(s) to OAI.

Responsible Party

Template/Guideline

Explanatory Notes

Send email to: reportmisconduct@undp.org

Anyone with information regarding allegations of misconduct can report it using one of the following means:

By email to OAI at reportmisconduct@undp.org or directly to the Director, Office of Audit and Investigations, or Deputy Director, Head of Investigations, Office of Audit and Investigations.
Through an online form accessible through the "Report fraud, abuse and misconduct" link at www.undp.org
Through UNDP's telephone answering system (toll-free):
- Worldwide: +1-770-776-5678 (with interpreters available 24 hours/day)
- In the United States: 1-877-557-8685
By fax: +1-770-409-5008 (worldwide)
By mail addresssed to: Director, Office of Audit and Investigations, or Deputy Director, Head of Investigations, Office of Audit and Investigations, One United Nations Plaza, DC1, 4th Floor, New York, NY 10017, USA
Use of external sexual harassment helpline for reporting sexual harassment.

Step

Initial screening.

Responsible Party

OAI

Template/Guideline

Explanatory Notes

During initial screening, OAI will look at, inter alia, whether the complaint falls within OAI's investigative authority. If it does not, OAI may refer the case to the appropriate entity.

People reporting misconduct have the option to leave relevant contact information or to remain anonymous. An anonymous complaint should contain enough detailed information to allow OAI to obtain independent corroboration of the facts. If there is no way to independently corroborate the information provided by the anonymous source, OAI will not be able to investigate the complaint and may be required to close the case.

Individuals are encouraged to be as specific as possible, including the basic details of who, what, where, when and how the incident(s) occurred. Specific information will allow OAI to properly investigate the alleged misconduct.

OAI will acknowledge receipt of a complaint as soon as possible, usually within 48 hours after its receipt.

There are no time limitations for reporting cases involving allegations of sexual harassment.

Other complaints of workplace harassment, abuse of authority or discrimination must be submitted to OAI by no later than one year after the last incident. OAI's Director has the discretion to accept a complaint after the time limit has passed in extraordinary circumstances.

To ensure process efficiency, OAI will further assess if a written statement in a standardized format is required.

Step

Conduct Assessment.

Responsible Party

OAI

Template/Guideline

Explanatory Notes

During the assessment, OAI will look at, inter alia, whether there is sufficient information to warrant a formal investigation and whether an investigation by OAI is the most appropriate action

To ensure process efficiency, OAI will further assess if a written statement in a standardized format is required

Decisions as to whether investigations should be pursued are made in accordance with the rules, policies and procedures of the Organization.

OAI has the exclusive authority for determining whether to close a case or proceed with an investigation on the basis of OAI's assessment.

Step

Assessment decision

Responsible Party

OAI

Template/Guideline

Explanatory Notes

If OAI’s assessment indicates that the complaint falls within OAI’s investigative authority, that there is sufficient information to warrant a formal investigation, and that an investigation by OAI is the most appropriate action, an investigation will be initiated in accordance with the OAI Investigation Guidelines and the UNDP Legal Framework for Addressing Non-Compliance with UN Standards of Conduct.

OAI will prioritise cases of sexual harassment. It will conduct the investigation expeditiously within the constraints of available resources.

OAI will close the case when, for instance, there is insufficient evidence to warrant an investigation, the allegations do not fall within OAI’s mandate, or when an investigation by OAI is not the most appropriate action.

OAI will notify the complainant of the closure.

Step

Conduct investigation.

Responsible Party

OAI

Template/Guideline

Explanatory Notes

OAI will conduct its investigation in accordance with OAI’s Investigation Guidelines.

Step

Investigation reporting.

Responsible Party

OAI

Template/Guideline

Explanatory Notes

When the investigation is completed and it reveals enough evidence to reasonably conclude that misconduct has occurred, the investigator will prepare an investigation report in accordance with OAI’s Investigation Guidelines. The complainant is not entitled to receive a copy of the investigation report concerning allegations of misconduct against the investigation subject.

Step

Notify complainant and subject of outcome.

Responsible Party

OAI

Template/Guideline

Explanatory Notes

OAI and/or the relevant authority will notify the complainant and the subject of the outcome of the investigation.

1	Step Initiate discussions with Partner Entity on NRLA.	Responsible Party Requesting Bureau or Office	Template/Guideline Model Non-Reimbursable Loan Agreement (English) Model Non-Reimbursable Loan Agreement (French) Model Non-Reimbursable Loan Agreement (Spanish)	Explanatory Notes Discussions should be based on NRLA template.
2	Step Secure agreement from Partner entity in accordance with paragraph 19 (c).	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes
3	Step Certify that the proposal does not involve financial liability for UNDP.	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes
4	Step If any changes to the NRLA template are made secure review and clearance by LO.	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes
5	Step Inform BERA’s Partnership Group of NRLA.	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes
6	Step Calculate the value of the services offered on the basis of the salary element of the pro-forma cost for the grade and obtain account codes from OFM.	Responsible Party	Template/Guideline	Explanatory Notes Use pro forma costs as indication. Where the ToRs do not indicate an equivalent grade for the services offered, the pro forma cost for a staff member at the P4 step 5 can be used. The income from cost recovery is used to fund UNDP’s institutional costs in line with approved budget processes. Income from cost recovery should be recorded under the following COA: Operating Unit :H18 Account:54010 Fund:11820 Dept ID:11006
7	Step Consult Security Office.	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes Necessary if NRLA is being considered in a non-family duty station.
8	Step Fill out conflict of interest form and consult Ethics Office if necessary.	Responsible Party Requesting Bureau or Office	Template/Guideline New Personnel Conflict of Interest Declaration Form	Explanatory Notes
9	Step Sign NRLA MOA.	Responsible Party Requesting Bureau or Office	Template/Guideline	Explanatory Notes
10	Step Address request for NRLA to Director, OHR.	Responsible Party Director of Requesting Bureau/Requesting Bureau Management	Template/Guideline	Explanatory Notes Request to include information on services to be performed and draft ToRs, and where known partner entities were approached collectively, a selection strategy.
11	Step Assist in selection procedure, if and when required, and approve candidate.	Responsible Party OHR	Template/Guideline	Explanatory Notes
12	Step Assist in obtaining clearances and visas necessary to assignment.	Responsible Party	Template/Guideline	Explanatory Notes BMS will assist in obtaining visa clearances in New York.
13	Step Raise RPA.	Responsible Party OHR	Template/Guideline	Explanatory Notes Request GSSC to register candidate so that non-staff individuals serving with UNDP can be accounted for.
14	Step Register candidate in Quantum	Responsible Party	Template/Guideline	Explanatory Notes Candidate to be registered in Atlas in a non-pay group as a Person of Interest (POI).

1	Step In the event that the requester is not satisfied with the response from the Legal Office to the request to review, and a request for a document remains denied in whole or in part, the requester may submit an appeal against this response from the Legal Office to the Information Disclosure Oversight Panel, providing reasons for the appeal. Requests for appeals should be directed to: Coordinator of the Information Disclosure Oversight Panel: Effectiveness Group, Bureau for Policy and Programme Support United Nations Development Programme 304 East 45th Street, FF-16th Floor New York, NY 10017 USA Email: IDPOversightPanel@undp.org	Responsible Party Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes
2	Step Every request for Appeal will be acknowledged. The Panel shall review the denial of requests to disclose a document or portion of a document as described in the appeal to a member of the public. The Panel will have the authority to make the final decision and will make its best efforts to do so within 45 calendar days of receipt of the appeal.	Responsible Party Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes
3	Step The Panel will share its decision with the appellant, the UNDP Administrator and the relevant internal unit or office. If the Panel determines that the requested information will not be disclosed, its reasons will be provided to the appellant.	Responsible Party Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes
4	Step Functions: The Panel’s primary function is to review appeals submitted to it, and to consider whether UNDP’s Information Disclosure Policy has been properly applied. Such consideration shall be guided by the principle of seeking amicable solutions in the context of the request and the parties who may be affected by the release of the information.	Responsible Party Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes
5	Step The Panel may also review the implementation of the Policy, and recommend, as appropriate, more detailed mechanisms and procedures for the review of denied requests in light of operational and other changes within UNDP.	Responsible Party Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes
6	Step Membership. The Panel consists of three members who are independent to UNDP: one from a non-governmental organization; one from a foundation and one from a UN agency other than UNDP. The Chair of the Panel will be selected from amongst, and by, the Panel members.	Responsible Party , Information Disclosure Oversight Panel	Template/Guideline	Explanatory Notes Criteria for selection of Panel members. Members are selected through a competitive selection process on the basis of the following criteria: keen understanding of UNDP policies, structures, programmes and operations at Headquarters and Country Office levels; knowledge of programmes and operations of UNDP’s associated Funds and Programmes; knowledge of, and familiarity with, information disclosure and access to information policies; and proven ability to work with development partners. All members are appointed by the UNDP Administrator. Members serve for a term of three years, which may be extended for another term at the discretion of the Administrator. Appointments are made at the expiry of the term of a member any time during the course of the year or when a vacancy arises.

Subscribe to

Policy Areas

Provision or Impairment of Financial Assets and Accounting for Fraud and Financial Loss

Step

Responsible Party

Template/Guideline

Explanatory Notes

Termination of appointment in the interest of the good administration of the Organization without consent of the staff member (Staff with continuing appointments).

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

Grantees

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

Electronic Signatures Solution (External)

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

Micro Assessment

Step

Responsible Party

Template/Guideline

Explanatory Notes

Step

Responsible Party