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Harmonized Conceptual Funding Framework and Cost Recovery Methodology

Effective Date

May 20, 2015

Summary of Changes
New Guidance on UNDP’s Harmonized Funding Framework has been posted in POPP and reflects the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN to harmonize the classification and attribution of programme and organizational costs and highlights how this has been reflected in UNDP’s integrated budget. The harmonized framework covers the realignment of resources between Regular and Other Resources to help successfully deliver on the results outlined in UNDP’s Strategic Plan.​

Cost Recovery from Other Resources - GMS

Effective Date

May 20, 2015

Summary of Changes

Revised Cost Recovery from Other Resources - (GMS) POPP content have been issued to operationalize the Harmonized Conceptual Funding Framework approved by the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN. The guidelines reflect the new GMS rates approved by UNDP's EB (EB decision 2013/9) effective 1/1/2014, and the new GMS distribution rates approved by UNDP's Executive Group in January 2015. The content details the Management Activities that should be funded from GMS income, and the transition required for non-Management Activities that were previously funded from GMS. The revised policy also highlights the key messages on Cost Recovery that offices need to understand and convey to UNDP's development partners.

GMS Fee Set-up and Collection

Effective Date

May 20, 2015

Summary of Changes

The General Management Support (GMS) fee Set Up and Collection section of the POPP has been revised to reflect the changes to GMS rates and GMS distribution, with a new link to the revised GMS calculator. Under the new guidance, offices should note that only "earn-as-you-go" method of GMS computation should be entered when setting up projects in the Atlas grants module. OFRM is working with OIST to reflect the GMS changes in Atlas and a separate communication will be issued when the setup is completed​

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

Effective Date

May 20, 2015

Summary of Changes

As part of improving UNDP's application of IPSAS, new content on the Valuation of the In-Kind Contribution from the Host Government provide Bureau and Country Offices guidance on the valuation of GLOC In-Kind Contributions, and the procedures to follow to facilitate a systematic and structured regular valuation and revaluation of in-kind contributions received from the host Governments. The valuation of the in-kind contribution will form the basis for GLOC-in-Kind contribution that is taken into account in determining annual GLOC Targets for host governments.​

Non-Core Contributions

Effective Date

Jun 22, 2015

Summary of Changes

​Contributions from IFIs and Development Banks to UNDP rose by 44% in 2016 compared to the previous year. In addition to IFI direct contributions, it is important to record indirect contributions received via Government Cost Sharing (originating from loans to governments). As a result, an additional procedure to the Non-Core Contribution Policy was created to provide guidance on how to record contributions from IFIs and development banks, with a list of fund codes to be used for loans, and a list of donor codes to be used for grants.

Protection against Retaliation

Effective Date

Jul 14, 2015

Summary of Changes

This revised policy includes the increased timeframe for a person could seek protection, from 60 days to six months. Additional clarification is made by adding "more likely than not" a causal connection exists between the protected activities and the detrimental action that has been taken or threatened against the individual, in order to establish a prima facie case.

Individual Contract

Effective Date

Sep 03, 2015

Summary of Changes

​With this revised Policy, Delegated Procurement Authority for the management of ICs is USD 150,000 for all Business Units (over 100k, the case must be reviewed by Contract Assets and Procurement Committee.)​

  • COs may have ICs with durations up to 24 months (over 24 months, Bureau Director or Resident Representative (if delegated) approval of duration is required) – though it is important to note that consultancies are typically recommended for short-term interventions, usually up to 12 months
  • COs may have IC daily fees up to USD 1,350 (over $1,350, RR approval is required with notification to the Bureau Director).

Direct Implementation (DIM) Modality

Effective Date

Sep 14, 2015

Summary of Changes

​The requirement for Regional Bureaus to submit annual consolidated reports on directly implemented (DIM) projects has been removed​.

Engaging CSO/NGO as a Responsible Party

Effective Date

Oct 20, 2015

Summary of Changes

The new approach under this policy takes into account the objectives of the programme or project; the scope, nature and value of the NGO/CSO engagement; the capacity of the NGO/CSO; and the level of development of the civil society (considering its NGO/CSO environment and availability). The policy also includes the following key features:

  • Identification of relevant NGOs as Responsible Party
  • Capacity assessment-driven
  • Risk assessment-driven
  • Unique collaborative advantage to be determined against a project-specific ToR
  • Designed to engage CSOs that are not legally recognized, under specific circumstances.​​​

Universal Price List (UPL) and Local Price List (LPL)

Effective Date

Nov 05, 2015

Summary of Changes

This Policy clarifies cost drivers of UPL for standard services and provides a step-by-step guide to formulate LPL. This also incorporates three main options for implementing DPC, which are:

  • application of the CO workload study results, combined with multiple funding lines for posts;

  • application of the Universal Price Lists (UPL) or Local Price List (LPL) for transactional costs recovery; and

  • creation and management of a stand-alone DPC project.​

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