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1
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Step
Authority to Establish the PCF and Level. Delegates his/her authority for establishing PCF to the Head of Office, up to the PCF maximum level for normal business as defined above
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Responsible Party
Treasurer
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Template/Guideline
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Explanatory Notes
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2
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Step
Seek Treasurer’s approval in advance by written request with detailed justifications.
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Responsible Party
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Template/Guideline
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Explanatory Notes
Any CO with PCF requirement above $2500
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3
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Step
Evaluate such request, in addition to the consideration of the CO’s business needs, the CO’s track record of compliance with internal control framework (‘ICF’) and POPP, particularly in the areas of accounting, reconciliation, and year-end procedures for PCF, and make the decision to authorize the higher level requested
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Responsible Party
Treasurer
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Template/Guideline
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Explanatory Notes
Caution: Failure to accurately and timely record PCF expenses and reconcile GL PCF Account 16105 may lead to delay or denial of the request until the internal control issues are resolved
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4
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Step
Qualifying Expenses for PCF. Pay expenses qualified to be paid from PCF, which are, as follows: Small purchases for office's management operations (not programmes), and Each such purchase not to exceed USD 250 equivalent.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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5
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Step
PCF Custodian Appointment. Appoint the PCF Custodian with the following criteria:
a. Staff holds UNDP Fixed Term Contract (FT).
b. Staff is competent to fulfill the responsibilities including safeguarding, proper use of, accounting for, and physical counting of the PCF and maintaining PCF Register.
c. Staff agrees to the terms and conditions of Petty Cash Custodian Appointment Form and signs the document (see Annex 1) including that any losses in the PCF are to be reimbursed to UNDP by the PCF Custodian or a deduction shall be taken from his/her salary
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Responsible Party
Head of Office
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Template/Guideline
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Explanatory Notes
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6
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Step
Physical Security for PCF
Ensures the physical security for PCF as follows:
a. Provide a safe with strong security features.
b. Place safe in a room with limited access by authorized personnel only.
c. Keep cash in the safe at all times.
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Responsible Party
DRR(O) or Operations Manager
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Template/Guideline
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Explanatory Notes
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7
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Step
PCF Custodian Responsibilities
Cash the cheque and place the cash for PCF initial funding and subsequent replenishment in the office safe
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Responsible Party
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Template/Guideline
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Explanatory Notes
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8
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Step
Maintain the PCF Register to record all activities in the PCF
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Responsible Party
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Template/Guideline
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Explanatory Notes
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9
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Step
Use pre-sequentially numbered PCF invoice for each disbursement made from the PCF.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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10
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Step
Ensure each PCF invoice is filled out for accounting/budget purposes and properly approved and has an invoice/receipt as the supporting document.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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11
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Step
Count PCF balance after each disbursement and replenishment to ensure the amount is equal to the running balance on the PCF Register under supervision of the Operations Manager
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Responsible Party
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Template/Guideline
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Explanatory Notes
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12
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Step
Make every reasonable effort to prevent theft
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Responsible Party
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Template/Guideline
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Explanatory Notes
For example, include maintenance of PCF in secured location (i.e., office safe), requiring two keys to enter the safe room and the presence of two persons when safe is opened
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13
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Step
Request the replenishment when PCF balance reaches 20% of the initial opening balance
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Responsible Party
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Template/Guideline
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Explanatory Notes
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14
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Step
Initial funding of PCF is done by a Permanent Prepayment Invoice payable to the PCF Custodian as the “Supplier” recorded against Debit GL Account: 16105 - Petty Cash Fund PCF Operating Unit: CO’s operating unit Fund Code: 00001 for GL acct 16105 always Department: Respective department Supplier : PCF Custodian’s Staff/Supplier ID
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Responsible Party
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Template/Guideline
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Explanatory Notes
The supporting document for the AP non-PO Invoice is the approval from the Head of Office or Treasurer, as applicable.
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15
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Step
Subsequent replenishment is done by Payment payable to the PCF Custodian. The amount of the subsequent replenishment should equal the amount of the total disbursements made during the period prior to the replenishment.
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Responsible Party
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Template/Guideline
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Explanatory Notes
The amount of the subsequent replenishment should equal the amount of the APJV (see Internal Control and PCF Accounting) that records the total disbursements made during the period prior to the replenishment. The APJV and attached invoice/receipts serves as the supporting document for the subsequent replenishment.
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16
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Step
Ensure that, after the subsequent replenishment, the PCF balance equals the initial opening balance.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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17
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Step
Review, certify and approve the following (as the case may be) for subsequent replenishment to the PCF:
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Responsible Party
Finance Manager or Operations Manager (other than the PCF Custodian)
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Template/Guideline
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Explanatory Notes
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18
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Step
APJV created by PCF Custodian for recording PCF disbursements, relevant supporting documents for charged expenses, and observance of the $250 limit for each disbursement (see PCF Accounting).
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Responsible Party
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Template/Guideline
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Explanatory Notes
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19
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Step
Physical count to ensure the PCF balance in the safe equals to the balance on the PCF Register
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Responsible Party
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Template/Guideline
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Explanatory Notes
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20
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Step
PCF reconciliation to ensure that GL PCF Account 16105 balance is the same as the actual cash in the safe (after the APJV is posted) and on the PCF Register
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Responsible Party
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Template/Guideline
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Explanatory Notes
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21
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Step
AP non-PO Voucher to pay the PCF Custodian as the replenishment for the PCF
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Responsible Party
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Template/Guideline
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Explanatory Notes
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22
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Step
Internal Controls for PCF
Maintain separation of duties at all times.
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Responsible Party
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Template/Guideline
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Explanatory Notes
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23
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Step
Use pre-sequentially numbered PCF Vouchers (either in paper form or in spreadsheet form with password control) to request the PCF disbursements; the proper approval obtained, and full Chart of Accounts (COA) indicated
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Responsible Party
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Template/Guideline
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Explanatory Notes
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24
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Step
Attach invoice/receipt for small purchases to each PCF Voucher
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Responsible Party
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Template/Guideline
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Explanatory Notes
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25
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Step
Raise APJV to record the PCF disbursements on a monthly basis or prior to each replenishment request, whichever comes first
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Responsible Party
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Template/Guideline
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Explanatory Notes
Use the “Related Voucher” field in the invoice information page to include the voucher ID of the initial advance related to the disbursement being recorded to facilitate the review and liquidation process.
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26
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Step
Maintain PCF Register on per transaction basis and issues on the close of business of the last day of the month or prior to each replenishment period with no further alteration
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Responsible Party
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Template/Guideline
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Explanatory Notes
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27
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Step
Create a new PCF Register for a new month or a new replenishment period
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Responsible Party
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Template/Guideline
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Explanatory Notes
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28
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Step
Generate a report for GL Account 16105 for each month end or each replenishment period to compare the balance in the PCF safe and review PCF Register.
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Responsible Party
DRR(O) or Operations Manager
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Template/Guideline
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Explanatory Notes
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29
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Step
Perform a physical cash count at the month end or prior to each replenishment request, whichever comes first, and sign the PCF Count Form (see annex 3).
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Responsible Party
Operations Manager
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Template/Guideline
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Explanatory Notes
The signature on the PCF Count Form certifies that the balance in the safe equals to the balance in the PCF Register and the balance in the GL Account 16105.
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30
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Step
Investigate and resolve any discrepancies identified in the steps PCF register check; running GL account 16105; physical cash count within 7 days
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Responsible Party
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Template/Guideline
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Explanatory Notes
Perform every month without exception as monthly PCF reconciliation
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31
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Step
Notify the Head of Office of the discrepancy and the resolution
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Responsible Party
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Template/Guideline
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Explanatory Notes
Perform every month without exception
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32
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Step
Deposit the PCF balance in the safe into the CO’s bank account on or before 31 December of each year
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Responsible Party
CO
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Template/Guideline
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Explanatory Notes
If the CO does not deposit the PCF balance in the safe into the bank account at the year-end, the office must notify Treasury and explain the circumstances preventing this action
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33
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Step
PCF Reconciliation and Year-End Closure
Perform monthly PCF reconciliation without exception, including the year-end closure
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Responsible Party
DRR(O)
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Template/Guideline
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Explanatory Notes
If the CO follows the Guidelines and Procedures herein, the AAA report for GL 16105 at 31 December should show the balance to be zero in local currency
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34
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Step
Review the monthly PCF reconciliation results, complete and sign the Year-end PCF Certification and PCF Count Form.
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Responsible Party
DRR(O)
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Template/Guideline
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Explanatory Notes
These two documents must be uploaded to designated SharePoint on or before 31 January as part of the routine year end close procedures.
Caution: Pay attention to the currency in GL. Reconciliation is to be done for the currency in which the PCF is held. Typically, this means local currency. The CO should not reconcile the USD balance.
Caution: The DRR(O) is accountable for the accuracy and consistency of the balances in AAA report, in PCF Register, and in the safe.
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35
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Step
PCF Monitoring
Ensure routine monitoring of GL Account 16105 for data quality and completeness.
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Responsible Party
Head of Office
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Template/Guideline
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Explanatory Notes
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36
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Step
Ensure compliance with the Guidelines and Procedures:
The PCF level not to exceed the authorized level by the Head of Office or Treasurer at any time.
The per disbursement limit not to exceed USD 250 equivalent.
The expenses are recorded on a monthly basis or at each replenishment period.
No GLJE is used.
All transactions recorded are in the currency for which the initial PCF balance is established.
At 31 December, balance in AAA report for GL 16105 in local currency is zero.
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Responsible Party
CO
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Template/Guideline
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Explanatory Notes
Caution: Strictly following the procedures are critically important to ensure UNDP cash assets are accounted for timely and accurately
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