Financial Management and Cash Transfer Procedures in UNFPA Programmes
This document outlines the financial management and cash transfer procedures involved in UNFPA programmes, including steps such as agreement signing, fund requests, disbursements, and financial reporting. It covers aspects like direct cash transfers, reimbursements, and direct payments to vendors or suppliers. The eFACE system is used for financial reporting, and various documents such as invoices, bank statements, and progress reports are required to be submitted.
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Government and UN agree on UNDAF based on CCA Government and UNFPA agree and sign country programme action plan IPs and UNFPA sign IP agreement for the duration of the programme UNFPA Executive Board approves the Country programme UNFPA selects and assesses IPs Government issues National Developmen t plan IP and UNFPA agree and sign workplan (for 1 year or more) IPs report on implementatio n on FACE and workplan progress report (Q) IPs IPs request funds through FACE (per quarter) IPs and UNFPA monitor implementation (Q) UNFPA releases funds (Q) implement activities (Q) IPs and UNFPA conduct reviews and assess progress (per year) IPs prepare for and undergo external audit (per year)
Cash Transfer Procedures 3 Cash Transfer Modalities To: 1. Direct Cash Transfer (Advance payment by UNFPA) IP s Bank Account 2. Reimbursements (UNFPA reimburses) IP s Bank Account 3. Direct Payment (by UNFPA) IP s vendors/ suppliers bank account on IP s behalf (goods/-services received) procurement processed by the IP for activities agreed in workplan 1. e-FACE+2. Invoice+ 3. Satisfactory letter with supporting documentation (if requested, and in any case keep on file for 5 year after programme) Planned obligations and expenses for activities agreed in the workplan Cash disbursements for goods/services received for activities agreed in the workplan for: 1.e-FACE+2. ICE (keep supporting documentation on file for 5 years after programme) Step 1. Cover letter+2.ICE+3. RARF and UNFPA will authorize by written reply to IP ; after then Step 2. IP implement & complete activities & report Step 3. submit eFACE (keep supporting documentation on file for 5 years after programme) On quarterly or on an activity based which required to implement the activities agreed in Work Plan. - Enter nature of expense & expenditure amount col. B in activity page; eFACE auto refresh to Col. D & G based on submissio n: Not exceeding 3 months. Longer then 3 months approval by the Rep & Regional director -Enter request amount in col.E -Enter nature of expense & expense amount in col. B in activity page, eFACE auto On an activity based upon goods or services received Period Columns of eFACE to complete - Enter nature of expense & expenditure amount col. B in activity page; eFACE auto refresh to Col. D & G
eFACE-Financial Reports Reimbursements (Expenses are reported based on information from IP s accounting Systems) DCT expense reports (Expenses are reported based on information from IP s accounting Systems) Direct Payments (Expenses are based on information from IP s procurement processed & systems) Required to upload to GPS eFACE: Required to upload to GPS eFACE: Required to upload to GPS eFACE: 1. Signed ICE & eFACE & Cover letter 2. Detailed list of individual transactions by WP activity & nature of expense for which expenses have been reported 3. Bank reconciliation 4. Bank statement 5. GL book 6. Explanation note if actual expenses report variances against ICE previously submitted at category & activity level 7. Quarterly WP Progress Report 1. Signed eFACE & cover letter; 2. Copies of IP s vendor invoices 3. Letter of satisfactory with a vendor performance assessment/and other appropriate supporting documents evidencing the receipt of goods/services procured by IP. 4. Inclusive in the quarterly WP Progress Report 1. Previous signed approved RARF & ICE & cover letter 2. Signed eFACE&cover letter 3. Detailed list of individual transactions by WP activity & nature expense for which expenses have been reported 4.Bank statement 5. GL book 6. Explanation note if actual expenses report variances against ICE previously submitted at category & activity level 7. Quarterly WP Progress Report
Cash Transfer Procedures/ Advances Reimbursements Direct Payments UNFPA cannot advance funds if: UNFPA cannot reimburse The IP undertakes the procurement process according to its own procurement procedures & subject to audit/ spot check. 1. IPs have not yet reported on an outstanding advance from previous periods 2. IPs have not cleared or refunded amounts that the auditors found unsupported or ineligible in a spot check/audit report The activities amounts that were not agreed to 1. in advance in the RARF and 2. in the workplan (or through 3. a Work Plan revision) even if the IP incurred additional expenses from other or their own funds The procurement process will be audited/spot check. Before making the payment, the UNFPA office will request the copies of vendor(s) invoices and confirmation that the delivery of goods or services and products were satisfactory
UNFPA RARF Reimbursement Authorization Request Form IP Name: Country Name: Transaction currency: Period: To be completed by UNFPA Reimbursement Authorization Amount Activity ID / Project ID Amount Authorized by UNFPA Activity Title Fund Subtotal by Activity 0 0 Subtotal by Activity Grand Total: 0 0 0 0 The undersigned authorized officer of the above mentioned implementing partner hereby certifies that: [ ] The reimbursement authorization request for the period stated above represents estimated expenditures required to implement activities per the approved WP and attached itemized cost estimates. Authorized Officer of IP: Date: Name / Title / Signature IP Comments: Authorized Officer of UNFPA: Date: Name / Title / Signature UNFPA Comments:
ARTICLE X REPORTING REQUIREMENTS; (A) Financial reporting Ineligible Expenditures not include in the FACE. (c). The following are Ineligible Expenditures and, therefore, shall not be included in the FACE form: (i). Expenditures not made for activities, or not necessary for the implementation of the activities, included in the WP ; (ii). Expenditures for value added tax ( VAT ) unless the IP can demonstrate to the satisfaction of UNFPA that it is unable to recover the VAT; (iii). Expenditures covered by or relating to another WP/Project; (iv). Expenditures paid or reimbursed to the IP by another donor or entity; (v). Expenditures in relation to which the IP has received an in-kind contribution from another donor or entity; (vi). Support costs, if any, exceeding the support cost rate referred to in Article VI, paragraph 2, of this Agreement; (vii). Expenditures other than support costs, if any, referred to in Article VI, paragraph 2 of this Agreement, that are not verifiable by records as provided in Article IX of this Agreement. (viii). Salaries for IP s hired employees exceeding the established salary or pay scale rates of the IP for comparable functions, and in no case exceeding the rates payable by UNFPA for comparable functions performed by locally recruited staff members at the relevant duty station (ix). Expenditures in respect of fees for individual consultants retained by the IP exceeding the rates payable by UNFPA for comparable services rendered by individual consultants.
ARTICLE X REPORTING REQUIREMENTS; (A) Financial reporting Ineligible Expenditures not include in the FACE. (x). Expenditures for travel, daily subsistence and related allowances for the IP s employees or consultants exceeding the rates payable by UNFPA to its staff members or consultants, as applicable; (xi). Expenditures for the IP s activities if the implementation of the activity has not been concluded. (The IP s use of cash-based accounting, as the case may be, notwithstanding, the IP recognizes that UNFPA uses accrual-based accounting and, therefore, the expenditures for the IP s activities constitute Ineligible Expenditures and may not be reported on the FACE form prior to the conclusion of the implementation of the activity. However, expenditures by the IP to its vendors or subcontractors are eligible for Cash Transfer and may be reported on the FACE form if the underlying contract specifies a payment and delivery schedule that supports the expenditure); (xii).Expenditures that merely represent financial transfers between administrative units or locations of the IP; (xiii)Expenditures that are not reasonable and justified under principles of sound financial management, in particular the principles of value for money and cost-effectiveness; (xiv). Expenditures that relate to obligations that were entered into after the end date of the relevant WP; (xv)Debt and debt service charges; (xvi)Expenditures made in contravention of any of the terms of this Agreement.
Time line for advance request and expenditure reporting Request Q1 advance: 10thJanuary Quarter 1 (Jan Mar) Request Q2 advance & Report Q1 expenditure: 10thApril Quarter 2 (Apr Jun) Request Q3 advance & Report Q2 expenditure Q-2: 10th July Quarter 3 (Jul Sep) Quarter 4 (Oct *Dec) Request Q4 advance & Report Q3 expenditure: 10thOctober Report Quarter 4 (Oct *Dec) Report Q4 Expenditure:31/Dec/20 * Last quarter activities should be completed before if possible 25 Dec 2020
