Government Contribution to Local Office Costs (GLOC) from LIC and MIC

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Government Contribution to Local Office Costs (GLOC) from LIC and MIC

Government Contribution to Local Office Costs (GLOC) from LIC and MIC

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

Nadda Chotiwichit

Effective Date

09/01/2023

Planned Review Date

09/01/2026

Version

8.0

Latest updates

January 09, 2023 - The policy and 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 08, 2021 - The GLOC from LIC and MIC (Low- and Middle-Income Countries) policy is now available in French. To access the document, click on the French language tab.

November 19, 2020 - The Government Contribution to Local Office Costs from LIC and MIC policy and procedures have been updated based on the previously announced accounting policy changes for contributions.
The su

January 09, 2023 - The policy and 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 08, 2021 - The GLOC from LIC and MIC (Low- and Middle-Income Countries) policy is now available in French. To access the document, click on the French language tab.

November 19, 2020 - The Government Contribution to Local Office Costs from LIC and MIC policy and procedures have been updated based on the previously announced accounting policy changes for contributions.
The summary of the changes and their implication on UNDP Offices are:
• With a few exceptions, the announced accounting policy changes for contributions, require the full revenue, including for future periods, to be recorded in the year an agreement/or other binding document is signed and not upon the receipt of cash.
• The recording of the revenue in Atlas remains with the GSSU Revenue team. UNDP Offices are required to submit the signed agreements to the GSSU within 1 week after an agreement is signed via the Service Request Portal : https://undp.custhelp.com/app/main.
• The policy revision did not change the ability for UNDP Offices to spend or enter into commitments in Atlas which is still dependent on funds being received (except for USAID Letters of Credit where the current process of enabling the spending ability in Atlas remains unchanged). As is currently the case, UNDP Offices can only incur expenditures or enter into commitments upon receipt of funds or by following budget override procedures outlined in the UNDP’s Risk Management Guidelines.
• For UNDP Offices receiving funding from MPTF, in the past UNDP Offices have been submitting the signed disbursement notifications to GSSU but going forward, the full approved amount committed to UNDP should be provided. Therefore, UNDP Offices should provide the signed Project Document (ProDoc) and the Steering Committee minutes that reflects fully the approved amount for UNDP and not just what is being disbursed in the next tranche.
• Country Offices are required to submit signed amendment agreements/ letters/amendments within 1 week of signing the agreements/amendment to GSSU so that the revenue can be recorded or adjusted accordingly.
• At the end of every year, the Head of Office will be required to certify in the annual assertion that all signed agreements/amendments to agreements have been submitted to GSSU on a timely basis prior to the closure of the financial ledgers. This will help ensure that UNDP revenue is captured in a timely manner as any late submission of these documents poses a significant management reporting risk and audit risk as revenue will not be reported accurately in the UNDP financial statements, including quarterly financial statements.
• For the POPP on Government Contributions to Local Office Costs (GLOC) from Low and Middle Income Countries (LIC and MIC), a new GL account (i.e. GLOC – Gov contr Locl Cost Future – 51017) was created to track cases, if and when host governments settle their cash targets in advance, especially when a multi-year target is successfully negotiated.

September 24, 2020 - Paragraph 16 was added to the Government Contribution to Local Office Costs (GLOC) from LIC and MIC policy. The paragraph was added to reflect decisions adopted by the Executive Board during the second regular session in 2020. GLOC contributions are a major funding source for country offices' core institutional budgets, and their utilization is subject to UNDP Financial Regulations and Rules. The Executive Board (EB decision 2020/14) recognizes the importance of host government contributions to UNDP local offices costs, and encourages UNDP to work with the respective governments to agree, where possible, to annual and multi-year contributions.

June 03, 2020 - The GLOC from LIC and MIC (Low- and Middle-Income Countries) policy is now available in Spanish. To access the document, click on the Spanish language tab.

May 01, 2020 - The revised GLOC from LIC and MIC (Low- and Middle-Income Countries) policy provides a detailed explanation of GLOC formulation from host governments in low- and middle-income countries, along with a computation of annual cash targets, recent flexibilities in target setting, and tracking and reporting of annual cash targets and payments. The procedures section has also been updated with the most recent reporting tools and guidance notes.

December 01, 2015 - Content reviewed and edited (without changing substance).

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Relevant Regulations and Rules

UNDP Financial Regulations and Rules

Policies

Main Policy

Government Contribution to Local Office Costs (GLOC) from LIC and MIC

DOCX (101.88 KB)

View Download

Related Policies

IPSAS 23 Policy Paper

Procedures

Main Procedures

1

Steps

Estimate annual preliminary GLOC targets to country offices

Responsible Party

OFM

Template/Guideline

OFM site

Explanatory Notes

GLOC target tables include GOC targets in cash and GLOC in-kind contributions

2

Steps

Issuance of GLOC targets to country offices

Responsible Party

OFM Regional Bureaux

Template/Guideline

Explanatory Notes

A joint memo from OFM and RBx sent to the Resident Representatives

3

Steps

Communicate GLOC targets and settlement of arrears to Host Governments

Responsible Party

Country Offices

Template/Guideline

Create UNALL case with GSSC to create master contract

Explanatory Notes

4

Steps

Create a master contract for GLOC cash targets

Responsible Party

GSSC

Template/Guideline

Explanatory Notes

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

5

Steps

Clarify any issues related to GLOC cash and in-kind contributions to host governments

Responsible Party

Country Office

Template/Guideline

Explanatory Notes

Support will be provided from OFM and Regional Bureau

6

Steps

Revise and communicate GLOC targets if necessary, based on the final year-end certification of the GLOC in-kind and

GLOC master contracts based on revised final GLOC targets

Responsible Party

OFM Regional Bureaux,

Country Office,

GSSC

Template/Guideline

Refer to Government Local Office Cost -GLOC- Valuation of the In-Kind Contribution from the Host Government

Download

Explanatory Notes

Upon closure of the year-end certification, OFM reviews and updates in-kind GLOC contributions on annual basis

6.a.

Steps

Receive GLOC contributions and submit a request through UNALL for all GLOC payments (current, arrears and advance)

Send “Thank you” letters to host governments

Responsible Party

Country Office

Template/Guideline

Submit GLOC contributions information through UNALL

Explanatory Notes

CO should indicate the contribution amounts with a corresponding GLOC target year including the future years, in case of advance payments.

6.b.

Steps

Apply cash payments to GLOC cash targets

Transfer an annual portion of deferred revenue to the current year target account

Responsible Party

GSSC

Template/Guideline

Explanatory Notes

COA- GLOC fund – 00200; accounts:

Current year payment – 51015
Arrears payment – 51014

Advance payment – 51017

7

Steps

Issue GLOC performance reports

Responsible Party

OFM

Template/Guideline

Coming Soon - Refer to powerbi report - GLOC performance report

Explanatory Notes

GLOC performance report is updated automatically from Quantum.

Quantum query to be developed.

8

Steps

Apply accounting linkage, if any, to outstanding GLOC targets

Responsible Party

BERA,

GSSC,

OFM

Template/Guideline

Explanatory Notes

BERA – validates and confirms voluntary contributions (VC)
GSSC & OFM – determines the amount of accounting linkage from VC and posts the entries in GL

Based on voluntary contributions received from host governments, any shortfall in GLOC targets are settled through GLOC accounting linkage

9

Steps

Report annually to UNDP stakeholders and UNDP Executive Board

Issue an appreciation letter for the payment of GLOC cash and in-kind

Responsible Party

OFM,

ExO and Regional Bureaux

Template/Guideline

UNDP financial statements The United Nations Board of Auditors Annual review of Financial Situation, table 4 and 8 The Documents for The Executive Board sessions

Explanatory Notes

A letter from UNDP Associate Administrator is sent after the closure of Contract Module in Quantum upon finalization of revenue entries.

10

Steps

Report to UNDP Executive Board through Integrated Budget

Responsible Party

OFM

Template/Guideline

Explanatory Notes

Integrated budget documents

United Nations
Development Programme

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