refresher session on joint programmes finance and budgeting 7 february 2006

Refresher Session on

Joint Programmes

Finance and Budgeting

7 February 2006

2

Current Policy

• UNDG Guidance Note on Joint Programming (19 December 2003)

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Existing Guidance

1. http://content.undp.org/go/units/bom/photos/joint-programming

• UNDG Guidance Note on Joint Programming (19 December 2003).

• UNDP guidance on three JP options.

• Atlas Pass through instructions.

2. UNDP Finance and Budget User Guide

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Fund Management Options

1.Parallel

2.Pooled

3.Pass Through

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Parallel Funding

• UNDP works towards common results with other UN agencies in a joint programme.

• Each agency works independently following the common workplan.

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Parallel Funding

• Standard UNDP co-financing agreements and accountability.

• UNDP AWP and project budgeting procedures.

• UNDP’s cost recovery policies (GMS & ISS).

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Parallel Funding

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Pooled Funding

• Donors and UN organizations pool funds together to one UN organization – Managing Agent (MA).• Complete programme and financial accountability rests with the MA.• UNDP contributes by transferring funds to the MA through standard AWP/project budget.• MA is the implementing partner.

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Pooled Funding

• When UNDP is the MA, it accepts funds from the participating UN organizations using the standard MOU in the Joint Programming Guidance Note.

• Standard UNDP co-financing agreements apply for donor funding.

• The MA records all JP funds received as co-financing contributions.

• Standard AWP/project budget.• UNDP’s cost recovery policies (GMS &

ISS) apply for all funding received as MA.

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Pooled Funding

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Pass Through Funding

• Donors and UN organizations agree to channel funds through one UN organization – Administrative Agent (AA).• When UNDP is a participating UN organization, funds received from the AA (including UNDP) are recorded as project level co-financing.• The AA is reflected as the donor.• Standard AWP/project budgeting and cost recovery policies apply.

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Pass Through Funding

• UNDP as AA earns a 1% AA fee on the entire JP contribution ($20,000 minimum & $100,000 maximum). This fee covers administrative costs, including treasury functions, preparation of a sources and uses report, and consolidation of certified reports received from the participating organizations.

• Funding passed through to the participating UN organizations is not recorded by UNDP/AA as income.

• Each participating UN organization records the portion of the JP it is implementing as a co-financing contribution for which it is fully accountable.

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Pass Through Funding

• A unique fund code is established for all JPs where UNDP is AA.

• Pending items are recorded (JP fund code and actual donor).

• All contributions are received at HQ.

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Pass Through Funding

• Agreements (UNDG Guidance Note)Standard MOU between participating

UN organizations and AA.Standard letter of agreement

between donors and AA.

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Pass Through Funding

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Financial Reporting•Each UN organization prepares Certified Financial Reports annually and at programme end for its programme components

•Responsibility should be assigned for the preparation of aggregated/consolidated Financial Reports

•The Managing Agent prepares Certified Financial Reports annually and a final Certified Financial Statement at the end of the joint programme

Parallel

Pooled

Pass-through

AA

Participating Agencies

• AA prepares aggregated/consolidated Financial Reports• Prepares a Sources and Uses of Funds Report after the

completion of the joint programme

•Prepares Certified Financial Reports annually and and a final Certified Financial Statement at programme end for its components of the programme

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JP Identification in Atlas

• For identification & tracking, use Attributes page

• Grants>Awards>Award Profile>Attributes tab.

• Attribute Code= JPGPARA (JP – Parallel)= JPGPOOL (JP – Pooled)= JPGPASS (JP – Pass Through)

• Attribute Value= JP Pass Through Fund code.