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Revised Cost Recovery from Other Resources - (GMS) POPP content have been issued to operationalize the Harmonized Conceptual Funding Framework approved by the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN. The guidelines reflect the new GMS rates approved by UNDP's EB (EB decision 2013/9) effective 1/1/2014, and the new GMS distribution rates approved by UNDP's Executive Group in January 2015. The content details the Management Activities that should be funded from GMS income, and the transition required for non-Management Activities that were previously funded from G ...

Revised Cost Recovery from Other Resources - (GMS) POPP content have been issued to operationalize the Harmonized Conceptual Funding Framework approved by the joint decision of the Executive Board of UNDP/UNFPA, UNICEF and UNWOMEN. The guidelines reflect the new GMS rates approved by UNDP's EB (EB decision 2013/9) effective 1/1/2014, and the new GMS distribution rates approved by UNDP's Executive Group in January 2015. The content details the Management Activities that should be funded from GMS income, and the transition required for non-Management Activities that were previously funded from GMS. The revised policy also highlights the key messages on Cost Recovery that offices need to understand and convey to UNDP's development partners.

Adjustments to the POPP content on GMS income to reflect the changes arising from the 2017 enhanced planning exercise, including:
a. A discontinuation of internal distribution of GMS income for all funds except those from Vertical Funds;
b. A revised GMS rate calculator for UNDP, GEF, GFATM and MP projects
c. Recording of DPC in relation to GMS exceptions.

The latest Cost Recovery policy update reflects the recent change in the Green Climate Fund (GCF) Fee for Accredited Entities (AE). The revised GCF policy on AE fees continues to institute a fee cap up to a certain fixed percentage based on the total size of the project/program (i.e. the total of GCF funding and co-finance).

​Section 7 of the Cost Recovery from Other Resources - General Management Support (GMS) policy was updated to reflect that regarding agencies’ contribution to RCO activities, GMS should be applied in line with the corporate cost recovery policy, since the 2016 Advisory note for the UNDG Cost Sharing Funds for the RC system no longer applies and is hereby revoked as of 1 January 2019.

The Cost Recovery from Other Resources - GMS policy is now available in French. To access the document, click on the French language tab.

​The Cost Recovery from Other Resources - GMS policy was amended as follows in order to provide greater clarity. The various costs that are funded from projects and GMS are now presented in paragraph 17 instead of hyperlinks.

​A table in clause 7 of the Cost Recovery from Other Resources - GMS policy was updated to include an additional line to clarify applicable cost recovery rates for the resources for Engagement facilities.

​On June 11, the EG approved BMS’ recommendation to change the policy on the application of the GMS rates for International Financial Institutions (IFIs). A GMS rate of 5% is now applicable for all IFIs with an annual volume that exceeds $50M for loan or credit guarantee implementation support. The current GMS rate of 8% will continue to apply for grant financing, and to financing from IFIs below the annual volume threshold.A Guidance Note on GMS (Indirect Costs) for International Financial Institutions is available as a hyperlink in the table under clause 7 of the Cost Recovery from Other Res ...

​On June 11, the EG approved BMS’ recommendation to change the policy on the application of the GMS rates for International Financial Institutions (IFIs). A GMS rate of 5% is now applicable for all IFIs with an annual volume that exceeds $50M for loan or credit guarantee implementation support. The current GMS rate of 8% will continue to apply for grant financing, and to financing from IFIs below the annual volume threshold.

A Guidance Note on GMS (Indirect Costs) for International Financial Institutions is available as a hyperlink in the table under clause 7 of the Cost Recovery from Other Resources - GMS policy and is available in the POPP library (document ID POPP-11-3262).

Updated the links on the Related Policies section. Updated links on step 2 of the Procedures table. Added template for inter-office memorandum on step 3 of the Procedures table.


​The GMS rate table is updated to reflect a minimum 7% for UN Secretariat Offices, Funds and Departments identified in the UN System Chart (yellow section) under the section on UN to UN Agency Contribution Agreement.