US Letter of Credit (LOC) Agreements

Skip to main content

Programme and Operations
Policies and Procedures

Policy Areas
What's new
Index
Glossary

Search

Login

Policy Areas
What's new
Index
Glossary

English

Locations

Policy Areas

Programme and Project Management
Crisis Response
- Standard Operating Procedure for Crisis Response and Recovery
  - Standard Operating Procedure for Crisis Response and Recovery
- Financial Resources for Response
  - Allocation of TRAC 3 Resources for Crisis Engagements
Financial Resources Management
Human Resources Management
Procurement
Partnerships
Administrative Services
Accountability
Information and Communications Technology
Security

Select Language

Programme and Project Management
Crisis Response
Financial Resources Management
Human Resources Management
Procurement
Partnerships
Administrative Services
Accountability
Information and Communications Technology
Security

Programme and Project Management

Programming Standards
Design
Implement
Close
- Close and Transition

Crisis Response

Standard Operating Procedure for Crisis Response and Recovery
- Standard Operating Procedure for Crisis Response and Recovery
Financial Resources for Response
- Allocation of TRAC 3 Resources for Crisis Engagements

Financial Resources Management

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

Human Resources Management

Duties, Obligations and Privileges
- Standards of Conduct
  - UNDP Legal Framework for Addressing Non-Compliance with UN Standards of Conduct
- Harassment, Sexual Harassment, Discrimination, and Abuse of Authority
  - Harassment, Sexual Harassment, Discrimination, and Abuse of Authority
Classification of Posts
- Job Evaluation
Salaries and Related Allowances
Appointment and Promotion
Annual and Special Leave
Social Security
Travel and Removal Expenses
- Entitlement Travel
- Relocation Shipment
  - Relocation Shipment
Separation from Services
- Entitlements upon Separation
- Types of Separation
Disciplinary Measures and Appeals
- UNDP Legal Framework for Addressing Non-Compliance with UN Standards of Conduct
Non-Staff
Workforce Management
- Organizational Unit Restructuring
  - Organizational Unit Restructuring
- Performance Management
  - Performance Management and Development
  - Probation upon Appointment

Procurement

Procurement Overview
Procurement Strategy and Planning
- Procurement Forecasting and Delivery
- Transactional Procurement Strategies and Procurement Planning
Requisition
- Requisition and Procurement of Goods, Civil Works and Services
Sourcing of Suppliers
- Sourcing and Market Research
- Vendor Sanctions
Procurement Methods
- Procurement Methods
Innovation, CSO engagement
Solicitation Process
Evaluation of Offers and Pre-award Negotiations
- Evaluation of Offers
- Pre-Award Negotiations
Procurement Review Committees
- Procurement Oversight and Procurement Review Committees
Award and Management of Contract
Construction Works
- Construction Works
Individual Contract
- Individual Contract
Long Term Agreements (LTAs) and Cooperation with UN Entities
- Long Term Agreements (LTAs) and Cooperation with UN Entities

Partnerships

Managing Partnerships
- Managing Partnerships
Private Sector
- Policy on Due Diligence and Partnerships with the Private Sector
- Private Sector Partnerships
Foundations
- Foundations

Administrative Services

Asset Management - Property, Plant and Equipment
Asset Management (Intangible Assets)
- Intangible Assets
Vehicle Management
- Vehicle Management
Lease Management (Premises and Equipment)
Management of Local Presences
- Establishing UNDP-supported presence outside a country office
- Closing a Local Presence
Duty Travel
Corporate Purchasing Card
- Corporate Purchasing Card

Accountability

Accountability System Policy
- Accountability System Policy
Information Disclosure
- Information Disclosure
Internal Control Framework (ICF)
- Internal Control Framework
- Anti-Fraud Policy
Risk Management
- Enterprise Risk Management
- Anti-Money Laundering and Countering the Financing of Terrorism Policy
Business Continuity Management
- Business Continuity Management
Delegation of Authorities
- Delegation of Authorities
- Participation and Role of UNDP Delegates at Major International Conferences and Events
Ethics
Evaluation
- Evaluation Policy
Managing Prescriptive Content
- Managing Prescriptive Content

Information and Communications Technology

ICT Security
ICT Oversight
- Change Control and Release Management Standards
Enterprise Solutions
Global Services
- UNDP ICT Standards

Security

Framework of Accountability for Security
- Framework of Accountability for Security
Security Policy
- Security Policy
Commercial Air Travel Safety
- Commercial Air Travel Safety Guidelines

Home
Financial Resources Management
Pipeline and Revenue Management
Other Resources
US Letter of Credit (LOC) Agreements

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

Effective Date

01/01/2019

Planned Review Date

09/01/2026

Version

2.0

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 19, 2021 -

The US Letter of Credit (LOC) Agreements policy and accompanying guidelines have been updated as follows:

1. For USAID, there are sometimes contributions to support GEF, Covid-19 and other activities. The policy and related guidance previously limited funds to fund codes 30000 and 16610 for LOC contribution. Therefore, the policy and related guidance were updated to include fund codes for these other activities.
2. The DUNS number: 793511262 was replaced with DUNS number: 645521498. DUNS: 6455214

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 19, 2021 -

The US Letter of Credit (LOC) Agreements policy and accompanying guidelines have been updated as follows:

1. For USAID, there are sometimes contributions to support GEF, Covid-19 and other activities. The policy and related guidance previously limited funds to fund codes 30000 and 16610 for LOC contribution. Therefore, the policy and related guidance were updated to include fund codes for these other activities.
2. The DUNS number: 793511262 was replaced with DUNS number: 645521498. DUNS: 645521498 is the official DUNS number for UNDP which is used by UNDP Business Units applying for a USAID Grant.

November 19, 2020 -

The US Letter of Credit Agreements policy has been updated based on the previously announced accounting policy changes for contributions. Additionally, the US Government Letter of Credit Guidelines and Procedures for funding UNDP projects has been updated and linked under the main policy and in clause 3 of the policy.
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.

December 01, 2015 -

Content reviewed.

EXPAND

Relevant Regulations and Rules

UNDP Financial Regulations and Rules

Policies

Main Policy

US Letter of Credit (LOC) Agreements

DOCX (88.96 KB)

View Download

The US Government Letter of Credit Guidelines and Procedures for Funding UNDP Projects is available here for reference purposes.

Related Policies

IPSAS 23 Policy Paper

Procedures

Main Procedures

1

Step

Negotiate and sign agreements at Business Unit level (sign with the local US Federal Government Agency)

Template/Guideline

Explanatory Notes

After submission of Final FFR-425

United Nations
Development Programme

Twitter
LinkedIn
Facebook
Instagram
Youtube

About the Portal
Contact Us
Terms of Use