Direct Payments

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Home
Financial Resources Management
Financial Management and Implementation Modalities
National Implementation (NIM) Finances and NGO Implementation Finances
Direct Payments

Main navigation

Inventory Management
- Inventory Management
Cash Banking and Investment
Financial Closure of Development Projects and Trust Funds
Financial Management and Implementation Modalities
Financial Operations Management
- Corporate Operations and Information Management
- Statutory Financial Reporting
Pipeline and Revenue Management
Expense Management
Resource Planning and Cost Recovery
Working with External Auditors
- Working with External Auditors

Focal Point

Adam Phillion, Catherine Muli, Kanesh Babu Letchumanan

Effective Date

29/01/2021

Planned Review Date

29/01/2024

Version

7.0

Latest updates

June 02, 2023 - The policy and the procedures have been updated to reflect UNDP’s transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system.

January 29, 2021 - The updated Direct Payments policy is now available. The summary of the major changes and their implication on UNDP Offices are as follows:- Clarification has been made in para 2 that direct payments must be performed through an approved FACE form, requesting UNDP to make payment directly to the vendor on behalf of the Partner, and the Implementing Agent code must be the Partner’s code;- Clarity has been added for non-local currency denominated payments to national implementation projects in para 8 which should be

June 02, 2023 - The policy and the procedures have been updated to reflect UNDP’s transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system.

January 29, 2021 - The updated Direct Payments policy is now available. The summary of the major changes and their implication on UNDP Offices are as follows:- Clarification has been made in para 2 that direct payments must be performed through an approved FACE form, requesting UNDP to make payment directly to the vendor on behalf of the Partner, and the Implementing Agent code must be the Partner’s code;- Clarity has been added for non-local currency denominated payments to national implementation projects in para 8 which should be submitted to UNDP HQ Treasury for appropriate approval in accordance with UNDP Financial Regulations and Rule 125.06;- Clarification has been added on reviews of FACE form, including the list of red flags in para 12 and 13 that potential signs of fraud or misuse of funds shall be observed, reviewed, investigated and documented. Direct payment should not be processed until the potential red flags are fully investigated and confirmed to be valid;- Procedures offices should take to address unsupported payments reflected in assurance reports, including audits and spot checks, has been added in para 14.

January 29, 2021 - The Direct Payments policy and procedures have been further updated as follows: Guidance has been added to Para 2 on the ICE template. ICE template guidance has been added to procedure step 1. Fraud red-flags guidance have been added to procedure step 9.

November 16, 2018 - The Direct Payment policy is available in French. To access the document, click on the French language tab.

April 06, 2018 - The Direct Payment policy is now available in Spanish. To access the document, click the Spanish language tab.

EXPAND

Relevant Regulations and Rules

UNDP Financial Regulations and Rules

Policies

Main Policy

Direct Payments

DOCX (91.7 KB)

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Procedures

Related Procedures

1

Steps

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

Responsible Party

Implementing Partner

Template/Guideline

Explanatory Notes

Since it is responsible for procurement, the implementing partner supplies copies of supporting documentation only 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.

2

Steps

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

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

Internal control—first approval

Note that as the procurement has been performed by the implementing partner, the transaction for UNDP begins with an AP voucher regardless of amount.

3

Steps

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

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

4

Steps

Confirm that request is within available Atlas project budget and ASL/AX1 funding ceilings.

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

Useful Atlas Reports: Project Budget Balance - UN Reports>IPSAS Reports>Project Budget Balance and Budget Details - Commitment Control>Review Budget Activities>Budget Details

5

Steps

Ensure vendor name, address and banking details are supplied.

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

Periodically review the vendor master file to avoid duplication of vendors.

6

Steps

Verify that the vendor 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 vendors.
If the vendor does not already exist, create and approve the vendor profile in Atlas.
If the Atlas external access facility is used, then the implementing partner creates the vendor profile and the non-purchase order payment vouchers. Before approving the vendor and payment vouchers, UNDP verifies the vendor.

Responsible Party

Buyer/Vendor/Approver

Template/Guideline

Explanatory Notes

7

Steps

If all is in order, accept the payment request and raise AP voucher; sign and pass to approving officer.

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

8

Steps

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

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

9

Steps

Review AP voucher, FACE forms and documentation for consistency and proper authorization (i.e., signed by authorized official).

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

If in order, approve AP voucher with signature and in Atlas.

Responsible Party

Approving Manager

Template/Guideline

Explanatory Notes

Internal control—second approval

10

Steps

Disburse funds. See POPP: Disbursing Funds

Responsible Party

Operations Manager/Finance Officer

Template/Guideline

Explanatory Notes

Internal control—third approval

11

Steps

Inform implementing partner when payments are made.

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

12

Steps

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

Responsible Party

Programme Officer

Template/Guideline

Explanatory Notes

If the combined delivery report has already been finalized and signed, rejection of direct payments is no longer possible.

In Atlas, expenses recorded from direct payment are reversed by GLJE and a corresponding accounts receivable from the government recorded in account 14155 - Receivable from Third Parties.

Upon receipt of the refunded direct payment amounts, the receivable is reversed.

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Development Programme

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