1
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Step
Prepare and send letter to bank to open Zero Balance Account (ZBA). Request appropriate payment and reporting mechanisms for the account and ensure that all mechanisms are functioning after account is opened
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Responsible Party
Treasurer,Cash Manager and treasury System Analyst
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Template/Guideline
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Explanatory Notes
Ensure timely reporting through Online Banking Platforms, Positive Pay (for Bank America) daily bank statement import to Quantum, Fed Wire and ACH payment ability
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2
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Step
Country Office uses the Zero Balance account to fund local currency needs by self –replenishment and make supplier/staff payments. Replenishments and supplier/staff payments are done by checks or Electronic Funds Transfer (EFT). Country offices should use HQ bank accounts not ZBA to receive contributions and reimbursements from other UN Agencies and staff.
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Responsible Party
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Template/Guideline
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Explanatory Notes
All payments from the ZBA must be created and approved in Quantum before they are sent out to supplier/staff. All receipts to ZBA must be booked in Quantum within one business day. Tardy booking of ZBA transactions will delay and complicate ZBA bank reconciliation
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3
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Step
ZBA’s will have intraday net debit or credit balances. Where there is a net debit balance, the balance at the end of the day is brought to zero by a transfer from the ZBA Master Account to the ZBA. Where a ZBA has a net credit balance at the end of the day, this credit balance is transferred to the Master Account to bring the ZBA balance to zero. These end-of-day transfers are automatically done by the bank holding the Master ZBA and accounted for by Quantum after the bank statements are uploaded into Quantum. Uploads are normally done one business day after the transaction date recorded by the bank.
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Responsible Party
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Template/Guideline
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Explanatory Notes
Timely bank reconciliations will identify errors and anomalies
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4
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Step
The Master ZBA is funded daily by Treasury to ensure that sufficient funds are available to offset daily total net disbursements by country offices. Country offices must inform Treasury of any payment for USD 500,000(or Euro equivalent) or more from their ZBA in order to prevent an overdraft in the Master ZBA.
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Responsible Party
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Template/Guideline
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Explanatory Notes
Close daily monitoring of the disbursement trend from Master ZBA is necessary. Senior Treasury Associates must also be aware of periods of increased expenditures - for example, the final quarter of the year
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