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Direct Payments

3 January 2025

Harmonized Approach to Cash Transfers (HACT)

The Direct Payments policy has been updated in paragraphs 2, 4 and 6 to clarify the funding requirements for the full costs of processing direct payments and providing support services.
Cost Recovery from Other Resources - GMS

19 December 2024

Cost Recovery from Programmes funded by Regular and Other Resources

The Guidance Note on GMS (Indirect Costs) for International Financial Institutions (IFIs) has been revised to reflect that the GMS cost recovery rate applied for IFIs is based on the configuration of parties that enter into financing agreements with UNDP (and not on the ‘form’ or agreement template used). The revised guidance note further details that IFI preferential rates (5%) are applicable to financing agreements signed between UNDP and an IFI (or a tripartite agreement concluded by UNDP, IFI and the Government), where both of the following criteria apply:...

The Guidance Note on GMS (Indirect Costs) for International Financial Institutions (IFIs) has been revised to reflect that the GMS cost recovery rate applied for IFIs is based on the configuration of parties that enter into financing agreements with UNDP (and not on the ‘form’ or agreement template used). The revised guidance note further details that IFI preferential rates (5%) are applicable to financing agreements signed between UNDP and an IFI (or a tripartite agreement concluded by UNDP, IFI and the Government), where both of the following criteria apply:

- UNDP anticipates signing financing agreements of $50m or more in a calendar year with funding provided by the respective IFI, including through respective national governments; and

- The financing agreement is mainly to support the government’s implementation of sovereign loan or credit guarantees.

EXPAND
Management of Cash Planning/Forecasting of Cash Flows

2 December 2024

Cash Management

The policy has been updated with the following changes: ...

The policy has been updated with the following changes: 

  • Introduction of a new rule of 5% of imprest level added to the current threshold of $50,000 for acceptance of local receipts with the following revised wording: “Country offices (COs) may accept the cumulative of all receipts, up to equivalent USD 50,000 monthly or 5% of their established imprest level, whichever is higher, without prior authority from Treasury, provided the receipt of funds locally will not create or add to an accumulation of non-convertible or convertible bank balances in their local bank accounts.”  The higher of the two figures will be the threshold of reporting to Treasury if an exceptional approval from Treasury is required from the CO for accepting local receipts. 
  • Expansion of the scope of currencies to USD and EUR, as long as these are received locally in the country office bank accounts.
  • Clarification to apply the cost of currency conversion to the respective projects. 
  • Other minor editorial changes. 
EXPAND
Pipeline Management

2 October 2024

Pipeline and Revenue Management

The policy has been updated to incorporate references to portfolio in alignment with the Portfolio Policy as a new delivery instrument.
UN Agency Services

30 September 2024

UN Agency Services

The UNDP Service Level Agreement (SLA) template has been updated as follows:  ...

The UNDP Service Level Agreement (SLA) template has been updated as follows:  

  • Paragraph 3 has been expanded to state that services provided under the SLA do not include the conducting of investigations related to the contractors, personnel or staff under a UNDP Letter of Agreement (LoA) with services limited to the Client related to or arising from any of the services provided.  The paragraph further indicates that if the client requests incidental legal and or investigations services, and UNDP agrees to provide them, these services will be subject to full cost recovery plus reimbursement of all actual costs and expenses incurred by UNDP, without the need for a separate agreement.
  • Paragraph 4 has been expanded to specify: 1) Appendix I to the SLA template shall apply to Partner Personnel Services Agreement (PPSA) services only; 2) In the event of a conflict between any term of Appendix I and the main body of the SLA, Appendix I shall prevail with respect to such PPSA services only.  
  • Paragraph 5 has been updated to clarify that a request or requests for PPSA services shall be processed in accordance with Appendix I.
  • Paragraph 6 has noted options for the calculation of direct cost recovery: UPL/LPL, GSSC Cost Recovery List, or the cost recovery rates for PPSA services as indicated in Appendix I.
EXPAND
Handling of Cash and Receipts Treasury

30 September 2024

Cash Management

The policy has been updated in para. 5 to clarify the link with the Management of Cash Planning/Forecasting of Cash Flows policy which specifies the amounts of payments that offices can receive locally directly from the agencies.
Direct Cash Transfers and Reimbursements

9 July 2024

Harmonized Approach to Cash Transfers (HACT)

The following clarification and editorial updates have been implemented:
Direct Payments

9 July 2024

Harmonized Approach to Cash Transfers (HACT)

The following clarification and editorial updates have been implemented:
Harmonized Approach to Cash Transfers (HACT)

9 July 2024

Harmonized Approach to Cash Transfers (HACT)

The following clarification and editorial updates have been implemented:

  • HACT policy: A clarification sentence has been added at the end of para. 40 (g) regarding postponement of assurance activities due to reasons beyond the control of the partner and the office.
  • HACT Tables: All text references of ‘medium’ risk have been adjusted to ‘moderate’ risk in line with the HACT policy. 
  • Annexes A-D: All text references of ‘adjusted risk rating’ have been amended to ‘partner risk rating’ in line with the HACT policy.
Accounts Payable

30 May 2024

Expense Management

The Accounts Payable policy has been updated to align with the requirements of the Procurement Methods policy on micro-purchasing (purchases below $5,000). These purchases now require a PO in line with the requirements stipulated in Procurement Methods Policy (paragraphs 18 - 23).