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  • 1. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS FINANCIAL MANAGEMENT AND REPORTING - Financial Accountabilities - Systems of Fund Transfer - Fund Disbursement - Accounting System - Financial Reporting Financial accountability The implementing partners are responsible for the management of all UNDP resources allocated to a nationally executed programme or project. In this capacity, implementing partners are accountable to UNDP for the entirety of UNDP programming resources under their management. The implementing partners are responsible for maintaining a sound accounting system that contains records and controls sufficient to ensure the accuracy and reliability of programme or project financial information and reporting. The accounting system must also ensure that the receipt and disbursement of UNDP funds is properly identified and that budgetary categories approved are not exceeded. The system of accounting and/or record keeping must track the advances received and disbursed, expenditure records by implementing agents and direct payments made by UNDP. The accounting system that is maintained by the executing agent must also be kept current. The executing agent must maintain an inventory recording the acquisition and disposition of property and equipment used. This inventory contains information on all property and equipment, whether purchased directly by the executing agent from funds advanced to it by UNDP or purchased by others (implementing agent, contractor) on behalf of the executing agent. The UNDP country office must maintain an internal control system designed to ensure that the UNDP county office could adequately monitor the financial activity and budget of a programme or project within the scope of her/his responsibilities. The UNDP Resident Representative is accountable to the UNDP Administrator and is responsible for the financial monitoring of programme and projects, for ensuring proper use of UNDP funds and for providing advances of funds based on appropriate financial reporting. 10.2 Advances of funds The UNDP country office makes advances of funds to the designated institution only on receipt of a completed and signed financial report. The financial report contains both a report of the current period’s expenditures and a request an advance of the next period. Advances are made for a three-month period or less, depending on the needs of the programme or project. The frequency is agreed on between the implementing partners and the UNDP
  • 2. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS country office at the outset of the programme or project. The implementing partners requests an advance of funds on the basis of the work plan and its corresponding budget. The request is documented in the financial report and specifies the cash required under two headings, as follows: (a) Outstanding obligations: the costs of inputs that have been contracted for but for which payment has not yet been made. Only obligations that will be paid in the next period are included; (b) Planned expenditures: the costs of new inputs that will be procured and paid for during the next period. Advances of funds are normally made in the local currency. Any request for advances in currencies not available to the UNDP country office must be forwarded to the Treasury Section at UNDP headquarters. The key steps in requesting and making an advance of funds are: (a) The designated institution sends the request for the advance to the UNDP country office in the standard financial report format. To ensure efficient use of UNDP resources, the request must reflect a realistic forecast of expenditures for the next period, in line with the programme or project work plan; (b) The UNDP country office verifies that resources are available and uses the work plan to verify that the amount requested does not exceed the expenditures that may reasonably be expected during the next period. It also verifies the use of funds for the previous period and whether progress is being made towards the achievement of the expected results; (c) The UNDP country office pays the advance of funds into the programme or project bank account of the implementing partners. (d) The implementing partners disburses funds against the advance and records the transactions in its accounting system; (e) The designated institution prepares the financial report, showing the actual expenditures for the period covered by the report. The implementing partners makes the request for advance for the next period, repeating step (a). Bank account. The implementing partners operate a separate bank account in order to receive and disburse UNDP funds. The implementing partners have to provide the separate bank account title and number to the UNDP country office at the outset of the programme or project. Unused advances. At the end of a programme or project, the implementing partner returns any unused advances to the UNDP country office. Any interest earned on the programme or project bank account from the advances is recorded as miscellaneous income.
  • 3. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS The following special procedures apply for projects with budgets of less than $150,000 and duration of less than one year, (a) The UNDP country office may provide the advance of funds to the implementing partners in a single installment at the start of the project. This disbursement is recorded as expenditure against the approved account, (b) The implementing partners must send a final financial report marked “Project previously expended on (date)” to the UNDP country office, showing the amount advanced and the expenditure by budget sub-line. Any significant changes from the original budget and remaining funds must be adjusted. To facilitate transfer of UNDP funds, the following procedures shall be followed under the NEX modality: Summary of Fund Transfer Procedures AGENCY FLOW OF FUNDS REQUIREMENTS TRIGGER FOR FUND TRANSFER 1. Executing Direct from UNDP- Separate accounting Approved Quarterly Agency CO to the and reporting on UNDP WP; Financial (EA) institution upon funds Forecast to UNDP- receipt of request CO for direct payment from EA 2. UN Agency Direct from the Separate accounting Initial: Approved as UNDP HQ and reporting on UNDP Quarterly WP, Implementin (Treasury Section funds Financial Forecast, g Agency to the UN Agency) approved Letter of Agreement with the UN Agency Subsequent: Quarterly Project Delivery Report to UNDP-CO within 30 days from end of quarter Direct payments UNDP may be requested by an executing agent to make direct payments to other parties for goods and services provided to the programme or project. When UNDP makes a payment on behalf of an executing agent, the latter must forward to the UNDP country office a standard form “Request for direct payment”, duly completed and signed by the executing agent. The implementing partners keeps original documents. Documentation of payment by the country
  • 4. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS office (vouchers, copies of cheques, and other documents) must be made available to the implementing partners by UNDP. Disbursement Methods Direct Payment Method - UNDP-CO shall review requests for direct payment PMO Consults with UNDP-CO on Request on a case-by-case basis - PMO shall ensure: a. Appropriateness of budget line against which PMO submits request payment shall be charged and availability of for Direct Payment to resources/allocation in the project UNDP-CO b. Enclosure of supplier’s billing or certification on satisfactory delivery of services by the contractor (certification also to cover compliance with technical specifications) (Refer to Request for Direct Payment form) UNDP-CO reviews documentation and pays - UNDP-CO shall: supplier/contractor on behalf of UNDP a. Review completeness of documentation b. Verify budget line and project budget UNDP-CO shall furnish PMO a copy of supplier’s UNDP-CO notifies PMO on payment made receipt Financial reporting The three main reports are; (a) The financial report, (b) The combined delivery report and (c) The expenditure statement from United Nations agencies (also called project delivery reports or expenditure reports). a) The financial report: The implementing agency must submit the Financial Report to the UNDP country office not later than 15 days after the end of the quarter. The Financial Report presents quarterly expenditures. The financial report is prepared by the implementing agency in order to record the expenditures in the current period against the advance of funds received and request an advance of funds for the next period in line with the programme or project work plan and corresponding budget. The implementing agency must submit the financial report to the UNDP country office each
  • 5. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS time a request for advance is made. The review of the financial report by the DEX unit in the UNDP should be linked to the substantive reporting on progress towards results and to monitoring. The review of the financial report, verifies that resources are available and uses the work plan to verify that the amount requested does not exceed the expenditures that may reasonably be expected during the next period. The officer also verifies the use of funds for the previous period and whether progress is being made towards the achievement of the expected results. The UNDP country office records the expenditures into its records and uses the financial report to prepare the combined delivery. For the final period of the programme or project, the implementing agency certifies “FINAL” on the financial report. Refer to Annex of the financial report form and Instructions on how to prepare the Financial Report are provided in annex and Instructions for the financial report. The submission by the implementing agency of the Financial Report at least every quarter is mandatory. If the UNDP country office does not receive the Financial Report from the implementing agency within 15 days of the end of the quarter, it ensures follow up with the implementing agency. If an advance is outstanding for two quarters and either the Financial Report are not received or the Financial Report reflects no spending against the advance, the UNDP Resident Representative must follow up with the implementing agency. The programme or project implementation strategy must be reviewed to decide on measures to be taken to solve any difficulties with execution or implementation. The UNDP Resident Representative also informs UNDP headquarters (Country Programme Accounting) of all decisions taken. b) The combined delivery report (CDR): The combined delivery report summarizes all programme or project expenditures at the end of each quarter, for the periods ending 31 March, 30 June, 30 September, and 31 December. The CDR comprises the disbursements of; i. The implementing agency, from advances of funds; ii. The UNDP country office, as direct payments or for country office support services to national execution; iii. UNDP headquarters as direct payments; iv. Other UNDP country offices as direct payments; v. United Nations agencies under national execution; and vi. United Nations agencies under NGO execution. The key steps for processing a combined delivery report (CDR) are: i. The UNDP country office verifies that expenditure reported by the executing and implementing agents is correctly entered in UNDP accounting records. ii. To ensure the accuracy and completeness of the CDR, data relating to advances and direct payments maintained in the accounting records must be reconciled with the data processed and maintained by the implementing agencies. iii. The UNDP country office also checks the payments made through Headquarters and other country offices against the report submitted by Headquarters. iv. The UNDP country office sends the CDR to the designated institution. The designated institution verifies and certifies the report within 30 days of receipt, and returns it to the country office. If there are discrepancies, in the records of the UNDP country office and the designated institution, the parties must consult each other and agree on corrective action. v. For the final period of the programme or project, the designated institution certifies “FINAL” on the combined delivery report.
  • 6. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS The year-end report constitutes the official record of expenditure for the past year. The annual mandatory PSD or project budget revision must reflect the figures of the report. The implementing agency arranges for the year-end report to be audited promptly to facilitate the completion of the audit by the deadline of 30 April. c) The project delivery report: United Nations agencies undertaking activities under national execution must report their expenditures every quarter with a project delivery report. This report is made in accordance with the schedule of expected advances in the letter of agreement established between the designated institution and the United Nations agency. The report shows the expenditures by component and budget sub- line. The report is submitted to the designated institution through the UNDP country office not later than 30 days after the end of each quarter. 10.5 Recording of transactions at UNDP headquarters To keep track of advances under national execution and NGO execution, the Country Pro- gramme Accounting Unit establishes an operating fund account (OFA) for each programme or project. The OFA records; (a) The advances of funds made to the designated institution; (b) The disbursements made by the implementing agency out of the advances. The UNDP country office may not close a programme or project financially unless there is a zero balance in the OFA as shown on the OFA statement prepared by the Country Programme Accounting Unit. Payments made by the UNDP country office or by UNDP headquarters on behalf of the designated institution are not treated as advances of funds. Accordingly, they are not recorded in the operating fund account. These direct payments are recorded as disbursements by budget account. Expenditures reported by United Nations agencies for a nationally managed programme or projects are recorded as expenditures also by budget account. 10.6 Petty Cash 10.6.1. Use of petty cash To the extend possible, payments must be made by cheque or bank transfer. However, if it is not practical or possible to make payment by cheque for minor items, payments may be made from a petty cash fund up to the local currency equivalent of USD 50.00 per individual payment. Payments of advances, salaries, overtime and allowances must not be made from petty cash. Establishment of the petty cash fund The level of the petty cash fund must be determined based on the estimated local petty cash disbursement for one month, rounded off to a round figure in local currency. However, the sum must not exceed equivalent of US$ 500. Operation of the petty cash fund
  • 7. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Upon establishment of the fund, a cheque must be drawn on the local currency bank account for the exact amount of the fund. The cheque must be issued in the name of the petty cash custodian. (a) The amount drawn must be deposited in a steel cash box, which can be locked. The box, together with the keys, must be given against a written receipt into the custody of the petty cash custodian. (b) Written instructions must be given to the petty cash custodian concerning the physical arrangements necessary to ensure the safekeeping of the petty cash funds and the types of expenditure, which may be paid from the petty cash funds. Prior to payment, the custodian must refer to the committing (certifying) officer any proposed payments, which do not clearly fall within the original instructions. If approved, the certifying officer will initial the petty cash voucher. (c) Receipts of cash other than replenishment to petty cash must not be deposited in the petty cash fund. (d) The petty cash box must be locked in the office safe after working hours. The duplicate key to the box must be kept in a sealed envelope in the office safe of the project or programme and the custodian of the petty cash must sign on the sealed envelope. Surprise verifications must be made from time to time to ensure that these instructions are adhered to. These verifications should be documented to provide an audit trail. Recording of petty cash during the month (a) The petty cash custodian showing all petty cash transactions must keep a separate cash book. All payments must be clearly described in the Petty Cash Book and recorded when effected. (b) When submitting the request for replenishment, the custodian must submit the original of the Petty Cash Book to be attached as supporting documentation for the replenishment. Petty cash voucher must be retained by the custodian and properly filed. (c) For the purposes of the monthly accounts, the petty cash will be regarded as a pending account entitled "Petty cash”. The recording of transaction in the petty cash account is as follows: I. Establishment or increase of the approved petty cash level. The amount of cash drawn from the bank to establish or increase the approved petty cash impress level must be entered in the petty cash ledger as a payment and recorded as a debit in the Petty Cash account. II. Recording payments during the month Each payment made during the month is not recorded in the Petty Cash account as a credit. It is only recorded as credit in the petty cash book as a memorandum until the replenishment is made. III. Replenishment of petty cash expenditures
  • 8. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS When the replenishment of the petty cash is being recorded in the Country Office Accounting System, the individual transactions shall be debited to the respective projects/budget lines expenditure and credit to cash at bank account. Clearance of petty cash All petty cash on hand at 31 December, or, as applicable, the last business day of the year, must be deposited in the project’s bank account, so that it may be included in the year-end bank balance and the un replenished petty cash payments should be debited to the respective budget line as expenditure and credited to the petty cash account to show a NIL balance as of 31 December (At the period end). The petty cash fund may be re-established on 2 January of the following year. Financial Report Financial Report FR01 To be used by institutions implementing UNDP projects starting end of first quarter 2004 (a) Designated Institution: _____________________________________ (b) Programme/Project number _____________________________________ Programme/Project title _____________________________________ (c) For the period: _______________ to __________________ (d) Currency: _____________________________________ (I) (II) (III) Item Chart of Account Amount (f) Opening Balance: (g) Advanced Received: (h) Available Funds: (f) + (g) Detail Expenditures: Account Fund Donor Project ID Activity ID Budget Description Activity ID Budget Description Activity ID Budget Description (i) Total Expenditures (j) Closing Balance: (h) – (i) (k) Outstanding Obligations:
  • 9. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS (l) Planned Expenditures: (m) Total Requirements: (k) + (l) (n) Advance Requested: (m) – (j) Designated institution approval/signature: Country office approval/signature: Title: [Name and title of authorized official] Title: [Resident Representative] Date: Date:
  • 10. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Instruction for the Financial Report Introduction The new Financial Report (FR) shall be used by institutions who receive advances of funds from UNDP in order to help them manage budgets and expenditures. Its main features are similar to those of the Financial Report used in previous procedures:  It incorporates the Request for Advance.  It requires only summarized reporting over a given period rather than month-by-month reporting.  Advances of funds are requested in a lump sum based on the agreed work plan. The Financial Report (FR) presents several modifications to accommodate the changes deriving from the ERP implementation:  It reflects the new structure oriented towards outputs budgeting, and the reporting is therefore made against activities  Expenditures are recorded based on the new Chart of Account (COA) The FR, including the request for advance, is submitted at the end of the quarter. The UNDP country office must provide the advance within two weeks of receipt of the FR. Each UNDP country office and institution should discuss how to manage this change during the transitional period. The calculation of exchange gains and losses to UNDP is now automated with the ERP, therefore the submission of a second table in US dollars is no longer required. When the advance is given, the local currency amount is set in US dollars at the exchange rate in effect. All expenditures made from that advance during the quarter will be recorded at that rate. At the end of the quarter, any outstanding advances are revalued at the exchange rate in effect at the end of the quarter and gains or losses calculated. The institution should begin using the new Financial Report as soon as the first revision in PeopleSoft has been approved (i.e. no later than 15 March 2004), and stop using the previous format. The institution must submit the Financial Report as soon as possible after the end of the quarter/period to ensure that the next advance may be provided on a timely basis. The FR must be submitted to the UNDP country office no later than 15 days after the end of the quarter. The institution must submit the Financial Report to the UNDP country office whenever a new advance is required, and for every calendar quarter as a minimum. More frequent reporting is encouraged if agreed to by the UNDP country office and the institution. The template for the Financial Report is available in Microsoft Word from Country Offices Finance Unit, and on the UNDP Portal . Instructions for the institution How to fill out the top of the FR  Field (a) : Fill in the name of the institution  Field (b) : Fill in the title and number of the programme or project.  Field (c) : Fill in the period for which expenditures are being reported. The period can be the quarter or a different period if advances are made on a more frequent basis.
  • 11. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS  Field (d) : Fill in the currency in which the advance from UNDP is requested. If the institution receives advances in more than one currency for the same programme/project, complete the form for each advance.  Field (f) “Opening balance” : Fill in the local currency amount of the advance outstanding at the beginning of the period. It must agree with the Closing Balance of the last Financial Report. For new programmes or projects, this amount will be zero (See Requesting an Initial Advance below).  Field (g) “Advance received” : Fill in the local currency amount of the advance received this period. Only one advance received is recorded for each Financial Report.  Field (h) “Available funds “: This is the sum of (f) Opening Balance and (g) Advance Received.  Expenditures by Activity/Budget Description: Based on its accounting books, the institution records the total expenditures against budget description under each activity for the period. This includes all expenditures incurred since the last Financial Report to the date of the end of the period. For projects which started prior to 2004, budget lines are translated in PeopleSoft to Budget Description. Expenditures must be recorded according to the fields indicated under the new Chart of Accounts.  Field (i) “Total expenditures” : Add up all the expenditures by activity/budget category recorded above.  Field (j) “Closing balance”: Calculate (h) Available Funds minus (i) Total Expenditures.  Field (k) “Outstanding obligations”: Record here all expenditures that the institution has a legal obligation to pay but that have not yet been paid at the end of the period. This will include any contract amounts to be  paid for service rendered, any goods ordered and/or received, invoices not paid, that will be paid in the next quarter.  Field (l) “Planned expenditures”: Record here all cash expenditures planned for the next quarter/period according to the latest project work plan. Do not include expenditures already reflected in (k) Outstanding Obligations.  Field (m) “Total requirements” : This is the sum of (k) Outstanding Obligations and (l) Planned expenditures.  Field (n) “Advance requested”: This is the amount of funds needed for the next quarter/period. It consists of (m) Total Requirements minus (j) Closing Balance. After review and approval, the UNDP country office will provide this amount as advance to the institution through a cheque/bank draft/wire transfer. The authorized official of the institution must sign and date the Financial Report before sending it to the UNDP country office. Requesting an initial advance When the institution wants to request an initial advance for a new project, it fills out the top of the report and fields (l) Planned Expenditure, (m) Total Requirements, Closing Balance (put zero), and (n) Advance Requested of the Financial Report. All other lines and columns are left blank. Instructions for the UNDP Country Office Upon receipt of the Financial Report, the UNDP country office performs the following steps.  Ensure that the Opening Balance agrees with the Closing Balance in the last Financial Report;
  • 12. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS  Verify that the Advance Received agrees with the UNDP country office records;  Validate the arithmetic of the report;  Check the reasonableness of the Outstanding Obligations, Planned Expenditures and Advance Requested to the project budget, work plans and other documentation available;  Prepare and provide advances to the government executing agent using Pre-payment process in PeopleSoft; and  Sign and date the Country office approval/signature.
  • 13. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Combined Delivery Report (CDR) UNITED NATIONS DEVELOPMENT PROGRAMME COMBINED DELIVERY REPORT PERIOD ENDED_______________ CURRENCY IN USD Comp. EXPENDITURE Budget Govt./NEX UNDP Other CO UNDP HQ Implementing agency TOTAL Line Description CO Certified by:_________________________________ approved by:______________________________ Accountant Project Director ___________________________________ Audit Certificatio
  • 14. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Request For Direct Payment RDP01 To be used by projects executed by National Agencies or NGOs To: UNDP Country Office From: [Requesting Agency to [Agency to complete] complete] Attn: UNDP Resident Authorizing [requesting Agency to Representative Officer: complete] [Agency to complete] FAX Country Office fax number [Agency to complete] Signature: Cc Request Date: Subject: Request for Direct Payment to be made by UNDP In accordance with the activities as defined in the Annual Work Plan (APW), we hereby request UNDP to make the following direct payment to the payee below Project Title and Number Total Amount Purpose of Short description Payment Name: Address: Invoice n.: Contract n.: Payee: Due date: [one time date or recurrent monthly date] (please provide as Payment mode requested: Cheque/Transfer much details as possible) Blanket payment for monthly salaries/personnel: from dd/mm/yy to dd/ mm/yy For Bank Transfer only Bank Name: Account n.: Cost distribution Project ID Activity Donor Fund Budget Account Curr/Amount Certification: The authorized official hereby certifies:  That this payment has not previously been made;  That this payment is in accordance with the Annual Work Plan (AWP);  That this payment is covered by funds available in the project budget;  That this payment is for goods and services that have been delivered to the satisfaction of the requesting agency;
  • 15. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS  Those copies of invoices and other supporting documentation will be available for audit verification. Supporting Documentation for Direct Payment Transactions Required Supporting Documents1 Payment of monthly salaries and benefits Request for Direct Payment (RDP), submitted for NPPP or support personnel monthly, certifying actual work (full month or partial month). A blanket RDP may be made for monthly payments for long-term personnel. Relevant documentation and contract should be on file with DEX Unit. Payments to consultants RDP, Consultant’s invoice and copies of tickets, certified by the PM for actual work done. Relevant contract should be on file with DEX Unit. DSA and Travel RDP, Completed approved Travel Authorization and claim form with ticket stubs and receipts for miscellaneous expenses Procurement of supplies, services or RDP, Invoice, three quotations from supplies, equipment (including fuel, maintenance recommendations/justification for selection charges, repairs, insurance, etc) Contracts for services RDP for full installment payment, certifying work done according to contract provisions. Copy of Purchase Order. Relevant contract should be on the file with the Finance Section. Translation or editing RDP, Translator’s or Editor’s invoice stating agreed upon with UNDP-CO rate per page, number of pages and type of translation or editing Communication (phone and fax) RDP, Service provider’s notice 1 All supporting documentation should be accompanied by a completed Request for Direct Payment Form
  • 16. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Petty Cash Ledger Project Number and Title ______________________________________ For the month of ________ ______ Date Reference No. Payee Purpose Received Paid Balanc B/L e Opening Balance 10/1 10/2 10/3 [month/receipt TOTAL: #] Summary B/L Amount TOTAL Certified by Approved __________________ ____________________ Petty Cash Custodian National Project Director The following type of expenses cannot be paid from Petty Cash: Salaries, DSAs, Advance payments to vendors, Stationary Timing of replenishment: once in a month upon submission of the report for the previous amount the replenishment is for amount of the report submitted. NB: This is not a standard format; it is also possible to use other format.
  • 17. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS INPUT MOBILIZATION PROCUREMENT OF SERVICES/WORKS AND GOODS - Background on Procurement - Procurement Process - Shipping and Issuance Background on Procurement The use of rules and procedures is addressed at the time of programme or project formulation, based on key considerations for execution. As a principle, government policies, procedures and rules governing procurement of services/works and goods will be used, while respecting the principles of UNDP regulations and rules. Alternatively, if UNDP support services are required, UNDP rules and procedures will be followed. General principles on procurement All procurement, in all cases and situations will apply and follow and observe the principles of: • Competitiveness, • Integrity, • Fairness, • Transparency, • Best value for money, • UNDP best interest, • Cost effective, economy and efficiency. Generally, procurement is executed through the establishment of a Contract. A Contract or Sub-contract is an agreement between two entities to carry out specific activities, or to provide specific goods or services. It incorporates "general conditions" which are attached as an Annex to the contract document. The contract is used for all entities which are private or public and which compete with private entities. A Memorandum of Agreement is likewise a "contractual document," but without separate general conditions. It is used, particularly in the case of sub-units of Government Ministries and Municipalities, when their services are sought in accordance with specific objectives or requirements in the PRODOC. The Purchase Order (PO) is the most important document in the procurement process for goods. The standard UNDP form of the PO is always accompanied with UNDP General Conditions for Purchase Order. It constitutes the legal agreement for the sale of equipment by the seller to the project authorities.
  • 18. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS The Advisory Committee on Procurement (ACP) The Advisory Committee on Procurement (ACP) has been established to review and render written advice to the Assistant Administrator, Bureau of Management, in his capacity as Chief Procurement Officer (CPO) of UNDP, on UNDP’s procurement actions in respect of the following categories: a) Proposed contract which involve commitments to a contractor in respect of a single requisition for a specific project or purpose, or a series of requisitions relating to the same specific project or purpose, totaling USD100,000 or more in a calendar year (January – December). b) Proposed contracts or series of related contracts which involve income to UNDP of USD100,000 or more; and any contacts relating to activities where the annual income therefrom when aggregated with the estimated annual income from any other contract or contracts already made with the same purchaser in the same year amounts to USD100,000 or more, provided that contractual arrangements resulting from the recommendations of the UNDP Property Survey Board shall not be referred to the ACP. c) Any contract amendments or series of amendments which in aggregate have a value of USD100,000 or more or which would increase the amount of the contract as previously recommended by the Committee by more than 20 per cent, whichever is less. d) Proposed contracts of any value which could reasonably lead to a series of related contracts the total of which may be USD 100,000 or more; and e) The Assistant Administrator, BOM, may refer such other matters relating to procurement as to the Committee. Contracts, Assets and Procurements Committee (CAP) The Contracts, Assets and Procurements Committee is established at every UNDP Country Office, to render written advice to the Resident Representative on the following procurement actions: a) Proposed contracts of any value that could reasonably lead to a series of related contracts, the total of which may be USD 30,000 to USD 99,999. b) Any contract amendment, or series of amendments, which in aggregate either has a value between USD 30,000 to USD 99,999 or which would increase the amount of an already approved contract, as previously recommended by the Committee, by more than 20 percent, whichever is less. c) The Resident Representative may refer such matters relating to procurement as to the Committee. This may, if the Resident Representative/Director of the Bureau or Office so decides, include contracts or series of contracts totaling less than USD 30,000 as well as those totaling USD 100,000 or more, the latter for which final approval authority rests with the ACP.
  • 19. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Submission to the CAP The submitting UNDP official shall monitor the preparation all documentation related to the procurement of goods or services. The CAP will require, as a minimum, the following documentation: • Completed submission form containing the minimum information necessary for a reasonable assessment to be made, and • Copy of the Request for Quotation/or Invitation to Bid (ITB) or Request for Proposals (RFP). Steps in the Procurement and Contracting Cycle The stages in the procurement cycle are: 1) Preparation of technical specifications/TOR, selection of vendor/supplier/service provider and purchase or contracting; 2) Delivery or provision of services, if contracting, receipt and payment; 3) Inventory control and management; and 4) Transfer or disposal of equipment. The procedures for each of these stages are described below. Though the same principles are to be applied both for preparation of a Purchase Order and a Contract for Services, the following outline is divided into two separate “check-lists” to be followed by projects. The procurement process generally involves three phases: The Preparation Phase, whereby the requirements for the contract are defined and provisions for funding are ensured; The Selection Phase, whereby qualified entities: a) are identified; b) are solicited for proposals or bids and selected or selected on basis of justifications for directly negotiated contracts; and c) negotiate and sign a contract/agreement or PO; and The Administration Phase, which involves monitoring the progress of the contract/agreement/PO, delivery & customs Clearing arrangements, Receipt and Delivery Inspection Report, addressing claims, and evaluating the final product, inventory actions, making payments. Procurement process Preparation Phase UNDP/Project authorities must ensure that the proposed contract activity is provided for in the PRODOC as well as in the project work and financial plan (WFP) and Procurement Plan (for goods), after being approved by UNDP Development Advisor, will be monitored by the project authorities and UNDP, who are responsible to ensure that: − Proposed items for international and local purchases are in accordance with the Project Document and the project WFP;
  • 20. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS − Estimated costs of equipment and supplies to be purchased, are within the budget line(s) for the current budget year. Requests for ad-hoc procurement of equipment, which are not included in the Procurement Plan must be submitted to UNDP for expeditious approval. Terms of Reference The TOR is a document of critical importance, and thus, should be as clear and precise, as the type of assignment will allow. It eventually becomes an integral part of the contract. The TORs should be prepared preferably by project management and included in Requests for Proposals to invited entities to inform them of the contract requirements. The TOR also provides the basis for evaluation once the contract is completed. Clear and precise TORs limit the chances of disputes and claims over the contract later. TOR attached to the Request for Proposal, should include these elements: • Detail all tasks the contractor must perform, and specify coordination requirements, • Specify the data that must be submitted for approval, • Also define the schedules for initial submission and the review/approval time required, • Describe all the standards the contractor must fulfill that are applicable to the project, • If applicable, a detailed list of all data services, which will be provided to the contractor by you for his use in performing the contract. Specifications Specifications are used normally for procuring goods or works. Specifications must fully and completely state the requirements. They should be generic (neutral) in nature to maximize the competition. The specifications may be stated as 'hybrid' or combination of one or more of the following types: • Functional: Which defines the function or duty to be performed. This concentrates on what a product is to do. This type of approach is less interested in materials and dimensions. • Performance: This concentrates on the performance required of an item. To assure the quality, a reference to concerned product standards (International i.e. ISO or National) and environmental requirements such as energy-star rating, recycled materials, etc should be made. • Design Requirements: This calls for providing exact dimensions, materials or characteristics. It should be noted that there are many situations where design specifications can cut out competition unnecessarily because of differences in engineering practices. For dimensions, the metric system should be used. Selection Phase Identification of entities Prospective entities are identified for a short list or for a negotiated contract through a UNDP roster of entities, through open advertisement in business and development publications,
  • 21. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS through recommendations received from other UNDP offices or recipient governments, as well as through direct contact from interested entities. Some of the tools which can be used for these purposes are: • IAPSO web site ( ). • Other UN organizations, • Foreign Embassies in the country, • Other procurement related websites, • Yellow Pages for local suppliers, • Trade publications, directories, suppliers catalogues and professional journals, The Shortlist For contracts less than $30,000, no formal short list is required; however, it is recommended that a short list be drawn up for all expected contracts, unless there is justification for a waiver of competitive bids/proposals. The short list must be prepared for all contracts of $30,000 or more, unless a negotiated contract/waiver situation applies. For procurement actions estimated valued from US$ 30,000 to US$ 99,999 a minimum of 5 firms should be short-listed. For procurement actions estimated valued at US$ 100,000 or more, 5 to 7 firms (6 to 12 in case of goods) should be short-listed. However, more than these minimum numbers of firms should be used where achieving appropriate competitiveness may so require. The short list is prepared on the basis of the following criteria indicated in. Whenever the purchase is complex or very large, or it is difficult to identify suppliers for a short list, advertisements may be placed in Development Business or other appropriate international publications. UNDP RR must approve the shortlist prior to issuance of any solicitation (ITB or RFP) Solicitations Once the short list is prepared, either a "proposal" or a "bid" from the short-listed entities is solicited. The modality depends upon the nature of what is being sought. In general, a Request for Proposals (RFP) is used for purchase services/works or complex goods when you are not sure of the functional specifications and wish to seek proposals. A RFP leads to the selection of the proposal that is more responsive to the specified requirements, including price and other factors. Where appropriate, a RFP may indicate that negotiation may be undertaken with respects to one or more proposals prior to the award of the contract. This method is recommended for all contracts exceeding USD 100,000. An RFP
  • 22. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS may also be used for purchase of equipment when specifications cannot be precise. Through the RFP, UNDP seeks the qualified contractor who is most responsive to the needs of UNDP and the activity concerned, while at the same time meets the considerations for economy and efficiency. The proposal containing the lowest price, therefore, is not determinative for the award of the contract. The RFP is a package of information sent to short-listed entities to enable them to submit responsive proposals. The RFP includes: • The cover Letter of Invitation, which should highlight any special conditions or criteria; • The TOR; • General Terms and Conditions for Professional Services or Works; • UNCITRAL Conciliation and Arbitration Rules. An Invitation to Bid is normally used whenever the entity is to provide its cost requirements to meet precise specifications sought by UNDP. This is normally the case when UNDP buys goods. It may also apply in works contracts, though the norm is for proposals in those cases as well. Either by open advertising or by inviting bids from a short list of qualified bidders, UNDP seeks to procure for the lowest price meeting specifications. Purchases of USD 1,000 or more but less than USD 30,000 At least three responsive quotations or proformas are required for all contracts exceeding $1,000, in order to demonstrate the competitiveness of the process. Written contracts or written purchase orders shall be used for every purchase from a single supplier for an aggregate amount of at least starting from $2,500 for one or more items. The outlined purchasing process is as follows: Preparation of technical specifications, approved by the Project Director. • Preparation of a shortlist with 3 to 6 possible potential suppliers. • In establishing shortlists, it is advisable to use rosters of suppliers. • Invitation of possible suppliers to quote prices. • Reception of quotations within a deadline set by Project/UNDP. • Project, evaluates bids, comparing prices, delivery dates, guarantees, etc. according to criteria established previously. • Award of contract to the best offer. Project may ask the UNDP Contracts, Assets and Procurements Committee to submit a recommendation for award. • UNDP places purchase order. • Supplier's acceptance of the purchase order. • Delivery of equipment or supplies. The PMO certifies receipt and acceptance of goods. • The PMO receives official invoice and sends the invoice and receipt report to UNDP, for payment. It must be agreed that full payment will be subject to receipt and acceptance of goods. • Payment to supplier. • Registry in Project's Property Ledger for Goods and Equipment.
  • 23. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Purchases of $30,000 or more but less than $100,000 • Preparation of technical specifications, approved by the project authorities, or the person on whom he has delegated authority. • Preparation of a short list with 6 to 12 possible suppliers. Competitive international and national suppliers must be included, seeking fairness. It is advisable to have a roster of registered suppliers. • Invitations To Bid (ITB) is sent to all of the companies on the shortlist. • Receipt of bids, submitted in a sealed envelope, within a deadline set by Project/UNDP. • On the specified bid opening date, the bids are opened in the presence of at least one witness and immediately draws a Bid Opening Report is prepared. The report lists the invited bidders, those who responded, declined and those who did not reply at all and records the total bid of each bidder in the dollar equivalent (if the bid is made in a foreign currency). • Project evaluates bids according to criteria established previously. • Appropriate documentation for submission to UNDP's Contracts, Assets and Procurements Committee, accompanied with the shortlist, bid analysis and recommendation for award, is prepared. • UNDP's Contracts, Assets and Procurements Committee make a recommendation for award. If the Resident Representative does not concur with the recommendation he/she must justify his decision in writing and start a new bidding process. • Award of contract to the successful bidder, according to recommendation submitted by UNDP's Contracts, Assets and Procurements Committee and the Resident Representative's concurrence with the recommendation. • Project/UNDP places a purchasing order mentioning the date of the successful bid. • Supplier's acceptance of the purchase order. • Delivery of equipment or supplies. The Project Manager fills in the receipt report, to certify that goods have been received, as established in the purchase order. • The Project submits official invoice and receipt report to UNDP for payment. • Payment to supplier. • Registration in Project's Property Ledger for Goods and Equipment. Purchases of more than $100,000 Procurement of goods or services valued at more than US$ 100,000 must be submitted to OLPS for review by the ACP and obtain approval by the CPO, before making any contractual arrangements. This applies when any of the following cases occurs: • Proposed contracts which involve commitments to a single contractor in respect of a single requisition for a specific project or purpose, or a series of requisitions relating to the same specific or purpose, totaling $100,000 or more in a calendar year (January - December); • Any contract amendment, or series of amendments, which in aggregate either has a value of $100,000 or more or which would increase the amount of the contract as previously recommended by the Committee by more than 20 per cent, whichever is the less; • Proposed contracts of any value which could reasonably lead to a series of related contracts, the total of which may be $100,000 or more;
  • 24. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Bid Evaluation After opening and recording the bids, they are evaluated by the project authorities, who prepare a Bid Analysis Report. When necessary, a specialized consultant may be engaged to assist in the analysis of the bids. The evaluation and analysis of the bids must be based on the factors outlined in the ITB. Considerations of eligibility include: • Meeting technical specifications; • Timeliness; • Local service requirements; • Delivery of equipment; • Meeting other defined requirements; and • Being fully "qualified and responsive" pursuant to a background check Rejection of Bids Any and all bids may be rejected if it is in the interest of UNDP. Rejection of bids must not be taken lightly. Fairness, transparency and maintenance of adequate competition are always a priority. Bids may not be rejected on the basis of mere expediency or caprice. Bids may be rejected during two phases of the procurement process: the bid opening and the evaluation process. The criteria for rejecting bids during the bid opening includes: • Late bids The criteria for rejecting bids during the evaluation normally includes: • Failure to confirm to technical specifications or to other ITB requirements; • Change in circumstances; • Failure of the bidder to be qualified (eg., pursuant to a background check); In the case that any or all bids are rejected, UNDP shall record the reasons for rejection and shall make a determination whether to invite new bidding or to seek approval for a negotiated contract. Waiver of Competitive Bidding ITB and RFP are not required when the intended contract is for a value of less than $30,000, provided that the responsible officers have sought qualified and responsive entities and determined that the price quotation for the services/goods is competitive. There is a need to develop a short list of prospective entities; Quotations should be sought in writing on the basis of supplied TOR or specifications, and should indicate the time for responding in writing and period for keeping the quoted price open. The process is less formal than the RFP, but it must be evidenced in the file. • For waiving of contracts of $30,000 or more see.
  • 25. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Direct Contracting Direct contracting without competition may be used as an appropriate method under the following circumstances: The value of the procurement is less than USD 2,500. However, the buyer needs to assess that he/she is getting the best price. • There is no competitive market place for the requirement, such as where a monopoly exists, where legislation or government regulation, or where the requirement involves a proprietary product or service fixes prices. • There has been a previous determination or there is a need to standardize the requirement. • The proposed procurement contract is the result of cooperation with other organizations of the United Nations system. • Offers for identical requirements have been obtained competitively within the last twelve months and the prices and conditions offered remain competitive. • A formal solicitation conducted within last 12 months has not produced satisfactory results. • The proposed procurement contract is to purchase or lease real property. • There is a genuine exigency for the requirement. • The proposed procurement contract relates to obtaining services that cannot be objectively evaluated. Award of Contracts/PO valued at less than $100,000 Once the bids have been evaluated, the project authorities/UNDP CAP prepare(s) a recommendation for award of contract for approval by the Resident Representative. Contracts are awarded to the qualified (responsible) and the most responsive supplier submitting the lowest bid. When an informal Request for Quotations has been issued, contracts shall be awarded to the qualified and responsive contractor submitting the lowest offer. When formal Invitations to Bid have been issued, contracts shall be awarded to the qualified bidder whose bid conforms to the requirements set forth in the solicitation documentation and offer lowest cost to UNDP. The term "lowest cost" takes into account the cost associated with payment schedule, operating and maintenance costs, or in short "life-cycle cost". In absence of these costs, the contract should be awarded to the contractor offering lowest price. When a formal Request for Proposals have been issued, the procurement contract shall be awarded to the proposal whose technical offer meets the qualifying requirements and the financial has the lowest bid. The contract may be written as per the standard format. For assistance, please contact the Office of Legal and Procurement Support. Award of Contracts/PO valued at $100,000 or more Proposed contracts of $100,000 or more (see cases listed below) shall be submitted to the UNDP ACP and CPO. The CAP should review such proposed contracts before being submitted to the above. In addition, where, under the proceeding, the advice of the ACP (or
  • 26. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS CAP as appropriate) is required to be sought, no commitment may be entered into before the CPO or the Resident Representative or their authorized delegates act upon such advice. In cases where the CPO or UNDP Resident Representative decides not to accept the advice of such Committee, he/she must record the reasons for such decision. Submission shall take place in the following cases: • Purchases of $100,000 or more; • Multiple purchases totaling $100,000 or more with the same supplier and under the same project or relating to the same specific purpose. • Any amendment or series of amendments which in aggregate has a value of $100,000 or more or which would increase the amount of a previously-approved Purchase Order amount by more than 20%, whichever is the lesser amount. Any attempt to avoid review by the ACP by dividing a single order into several smaller orders, or to ignore evidence suggesting the involvement of ACP, is considered to be a contravention of Financial Rules. Again, prudence dictates that ACP is consulted in questionable cases. All contracts valued less than project authorities can approve $30,000 after notifying and receiving clearance by UNDP. In specific cases, project authorities may request UNDP CAP to review the proposal for award. For contracts valued at $30,000 or more but less than $100,000, based upon competitive bidding, project authorities submit the proposal for award to the UNDP CAP, which make a recommendation to the Resident Representative for award. For contracts above $100,000, the proposal for award is submitted to UNDP APC for approval. Issuance of Purchase Order A Purchase Order is issued for all purchases exceeding $1,000 and shall, as appropriate, specify in detail: • Nature of materials being provided; • Quantity being provided; • Unit prices; • Conditions to be fulfilled; • Period covered; and • Terms of delivery and payment. Retro/Post-Facto Contracts Services or works are not to commence until a contractual obligation between UNDP and the entity has been established either by written "offer" and "acceptance" or by signature of both parties to the contract. Project authorities are expected to make every effort to avoid post- facto or retroactive cases. When they nevertheless do occur, special approval of UNDP is required before related payments are made.
  • 27. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Administration Phase Monitoring the contract UNDP must remain informed of ongoing activities in the field, which relate to the contract, as UNDP is responsible for the overall monitoring of the contract. Wherever possible, UNDP should require monthly progress reports for all contracts of a relevant duration or size. Such assistance from the field will permit UNDP to take timely actions, such as pay invoices, consider proposed modifications, prepare contract amendments when changes to the contract become necessary, or prepare for and handle disputes and claims. Verifying and making payments UNDP verifies all invoices for payment. Verification involves ensuring that all invoiced items (services/materials/etc) have been satisfactorily performed/delivered in accordance with the terms and conditions of the contract. This usually entails confirmation from the project authorities in the field. Once satisfied, the "Request for Payment" accompanying the invoice is presented to. Which is responsible to pass it to the. /Finance Unit for processing. Contract amendments Amendments usually are required in two (2) situations: • At some point during the implementation of a contract certain aspects of the contract need to be changed; or • The original contract is executed as planned and it is decided that further related services should be rendered by the same entity. Amending a contract involves amending the relevant Terms of Reference to include all the services to be performed under the totality of the contract (original plus amendment), amending the clauses relating to cost and payment, and any other relevant provision (e.g., length of contract period). The amendment is concluded by a cover letter from UNDP offering the amendment (with reference to the relevant clause requiring all amendments in writing), and attached replacement clauses and TOR, which will cancel and supersede the original provisions. Contract conclusion/Hand Over When the contract is completed the PMO ensures for the Final Certificate of Completion to be duly filled and signed and stamped from both contractual parties. PMO and . will organize for the full handover of the completed works to the last beneficiary. VAT issues The contractual commitments will include the cost of the VAT when the executing local companies are locally registered under VAT registration in Liberia. PMO must fully ensure that the invoicing must be done in compliance with the local laws in force and request for the exemption to the concerned government authority. UNDP/DEX UNIT will also follow up for the possible reimbursable amounts and cases.
  • 28. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Shipping and Issuance Modes of Transport a) Five different methods are used, either singly or in some combination, to transport goods internationally. These are: by sea, by rail, by road, by air and by parcel post. An important decision for the buyer is to decide the mode or modes of transportation that he/she should use so as to minimize the sum of visible and not so visible transportation costs. In general, transportation costs by rail, road and air are comparatively higher than by sea. In UNDP, sea transport is by far the most important mode of transport. a) To ensure better delivery, it is preferable to select conference liner, since they operate along definite routes and call at specific ports. In case of non-conference liner, the routes and delivery time is uncertain. Markings To facilitate the identification of goods and handling whilst in transit, the suppliers should be instructed to provide “shipping marks” on all packages as per following format: • Consignee • Destination • Port of Unloading • Project identification • Order number • Case number. Suppliers Performance Evaluation To develop and maintain the list of qualified suppliers, existing suppliers must be evaluated. The evaluation can be based on reviewing the performance in meeting the requirements under the following attributes. • Quality of good and services • Delivery • After-sales service • Accuracy of documentation • Speed of response • Cooperation The method is simple and calls for grading the supplier’s performance under the above listed attributes. The grading could be “meets the expectation”, or “Does not meet the expectation” or “Exceeds the expectation”. After reviewing the above grading under above listed Attributes, the supplier may be evaluated as “good”, “satisfactory” or “not satisfactory
  • 29. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex 11.1: Checklist for procurement of equipment and supplies Less than $50 May be purchased through Petty Cash Fund 3 Quotations – Evaluation Report Between $50 - $999 1. Quarterly Work Plan and Procurement Plan Between 2. Preparation of Technical Specification 3. Preparation of Request for Quotation 4. Identification of Suppliers $1,,000-$99,999 5. Evaluation of Vendor based on Quotations received --------------------------------------------------------------------- *6. Review by CAP of contracts for $30,000 and more 7. Final Approval by RR 8. Issuance of Purchase Order Over $100,000 1. Quarterly Work Plan and Procurement Plan 2. Preparation of Invitation to Bid (Intern. Competitive Bidding) 3. Identification of Suppliers 4. Evaluation of Vendor based on Invitation to Bids received ----------------------------------------------------------------- **5. Recommendation by CAP to ACP in HQs *6. Review by ACP *7. Final approval by CPO *8. Issuance of Purchase Order Annex 12.2: Check-list for procurement of services, goods and works (1) Quarterly Work Plan and Procurement Plan (2) Preparation of TOR (3) Identification of Service Providers (4) Evaluation and Selection of Service Provide Up to $99,999 based on quotations received -------------------------------------------- * (5) Review by CAP of contracts for $30,000 and more * (6) Final approval by RR * (7) Issuance of contract (1) Quarterly Work Plan and Procurement Plan Over $100,000 (2) Preparation of Request for Proposal (RFP) (3) Identification of Suppliers (4) Evaluation of Proposals * (5) Recommendation by CAP to ACP in New York * (6) Review by ACP * (7) Final approval by CPO * (8) Issuance of Contract
  • 30. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Subcontracting Procedures STEPS GUIDELINES 1. Preparation of the Terms of 1. PMO to prepare the TORs for approval by the UNDP-CO Reference 2. TOR to indicate: • Background/objective(s) of the consultancy • Scope of work/tasks involved • Required output(s) • Expected timeframe for completion of work • Minimum qualification requirements for the Consultant • Duty station • Coordination arrangements • Logistic and travel support • Debriefing arrangements • Training arrangements (where applicable) 1 Solicitation of Proposals 1. PMO shall announce through: • Posting in strategic areas within the relevant institutions in the sector • Advertisement of invitation for bids at least two times within two weeks in at least 2 newspapers of national circulation 2. All proposals shall indicate the breakdown of costs as follows: • Rate per work-month for each consultant and staff in case of group or firm • Projected number of travels and costs based on project DSA rates; and • Other costs such as supplies and reproduction/printing costs 3. Creation of a Pre- 1. PMO shall facilitate creation of the PEAC which shall pre- Qualification Evaluation and qualify consultants, evaluate proposals and award contracts Awards Committee (PEAC) 2. For the Evaluation Committee of an Implementing Agency – EA shall ensure the participation of an agency member not directly involved in the project 4. Technical Evaluation of 1. The PEAC shall set its criteria and rating system for technical Proposals evaluation of proposals 2. Minimum criteria with TOR as point of reference shall include: • Plan of approach and methodology: - substance of the proposal as to problem interpretation and required solutions; clarity of proposed methods and approaches (including applicability to local conditions), completeness the proposal and compliance with TOR’s mandatory requirements; and proposed timetable for accomplishment of work • Qualifications of consultant(s)/personnel: - general qualifications and competence in terms of education, training, nature and length of relevant experience, responsible positions held in the firm and suitability to the tasks 3. At least three short-listed consultants shall be considered for final evaluation
  • 31. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS 5. Awarding of Contracts 1. PEAC shall submit final recommendations to the UNDP-CO for selection, approval and awarding of contract 2. PMO shall ensure documentation of the evaluation and selection process 6. Contracting 1. UNDP-CO shall issue contract and the PMO shall ensure the consultant’s performance under the terms of the contract by monitoring progress and quality of work 2. All contracts shall be cleared by the PM and approved by UNDP-CO 3. All contracts (Annex 1..) shall be output/performance based and shall indicate: • Services to be rendered • Outputs to be delivered • Schedule of delivery of outputs • Cost of services (with breakdown) • Terms/schedule of payment • Penalty clause • Responsibilities of parties • Duration of the contract • Title rights to material produced • Disclosure of information • Arrangements in cases of injury, disability or dearth • Contract Termination; and • Taxation 4. Final payment shall be conditioned on the acceptability of the output to the UNDP-CO. The PM shall issue a certification on satisfactory compliance with required output(s) to support final payment 5. PMO shall furnish UNDP-CO with copies of all contracts, final outputs and assessment of subcontractor performance for information (Refer to Annex 11A) for subcontractor assessment form. 6. Extension of contract duration for reasons other than PMO imposition of additional outputs and tasks shall not entail payment of additional fees. 7. All contract extensions shall be cleared by the PM and approved by UNDP-CO. 8. Multiple extension of a subcontract shall necessitate UNDP- CO review of the subcontractor’s performance and project implementation strategies.
  • 32. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Sub-contractor Assessment Form DATE: ________________ I. GENERAL Consultant Name: ________________________ Contract Number: ________________________ Project Number: ____________________________________________________________________ Project Title: ____________________________________________________________________ Brief Description of Tasks Completed: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Start Date: _______________________ End Date: _________________________ II. PLEASE RATE THE CONSULTANT’S FOLLOWING ATTRIBUTES: (1=Excellent, 2=Very Good, 3=Fair, 4=Poor, and 5=Unsatisfactory) 1. Technical expertise in the subject area of the assignment? 2. Imagination and flexibility? 3. Initiative and contribution? 4. Interpersonal skills? 5. Quality of the reports submitted? 6. Timeliness of reports submitted? 7. Linguistic skills? Language Written Spoken III. PLEASE EXPLAIN BELOW ANY 1 OR 4 RATINGS THAT WERE ASSIGNED IN PART II. YOU MAY ALSO ADD ANY COMMENTS THAT YOU FEEL SHOULD REMAIN IN THE CONSULTANT’S FILE SHOULD THIS CONSULTANT REMAIN ON THE ROSTER? (CHECK ON) YES NO IV. DO YOU WANT RESTRICTED AREAS (ACCESS WILL BE PROVIDED AT THE DISCRETION OF THE MANAGEMENT) FOR THE INFORMATION IN PARTS II AND III? (Check one) YES NO NAME AND SIGNATURE OF EVALUATOR: ___________________________________________________ DESIGNATION: _______________ AGENCY/PROJECT: ___________________ TEL: _________________
  • 33. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS SUBMISSION TO THE CAP/ACP: CHECKLIST • Check for the availability of funds and its approval. • Funds are sufficient to cover the amount of contract. • In case of contracts exceeding USD100,000 was the advance procurement notice advertise? • If not, check for transparency and geographical distribution in developing the short list of suppliers. • Check, if sufficient time was provided to the contractors for the submission of offers. • Has the copy of the solicitation Document been provided? If not, ask for it. • Are the specifications generic and unbiased? • What method of procurement is used? Is it in line with Procurement Manual? • Are the evaluation criteria very clear to ensure value for money? • Check if sufficient information was provided to the suppliers for the preparation of responsive offers. • Check, if any Supplier was given preferential treatment during evaluation. • Check, if the lowest evaluated responsive offeror has been recommended in the Evaluation Report. • If not, then check the justification given in the Evaluation Report for recommending any other Supplier. • In case of direct contracting, check if appropriate approval/waiver was obtained. • Check if in case of Services, a justification has been provided to confirm that the consulting fees and the number of workdays are fair and reasonable. • In case of purchase orders, please check that cargo insurance covers all risks. • Check if the contract calls for an advance payment and/or progress payment. • If yes, check that the advance payment is covered by a bank guarantee and progress payments are against completion of deliverables. • Check if the general terms and conditions comply with the UNDP General Conditions for Services or General Terms and Condition for Goods. • If not, check whether OLPS approval has been sought.
  • 34. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Quotation Evaluation Format for Purchases less than $1,000 Date. Subject: FROM: PMO Through: (Technical Person) TO: ./UNDP SUPPLIER NR. 1 SUPPLIER NR. 2 SUPPLIER NR. 3 Technical Specifications Required Warranty Terms Delivery Terms Net Cost TOTAL Cost (USD/ERN) After-Sale-Service Remarks
  • 35. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Factors Involved in Consideration to Waive Competitive Bidding • Prices or rates are fixed pursuant to national legislation or by regulatory bodies; • Standardization of supplies, equipment or spare parts renders competition impracticable, e.g., items of the same brand must be purchased to replenish or add to existing stock of equipment, or because in the local area services/spare parts are available for such equipment; • Exigencies of service do not permit the delay attendant upon issuance of an RQ/RFP, e.g. a true emergency exists, such as a natural disaster or procurement of perishable supplies; • An RQ/RFP would not give satisfactory results or be in the interest of the Government or UNDP, e.g., previous competitive bidding failed to produce responsive bids or proposals that meet requirements; • A proposed procurement or contract is from a sole source supplier, e.g., ,of a proprietary technology; • Commodities can be immediately procured at prices which are not likely to be maintained; • A previous order has been awarded to the lowest bidder and it is advantageous to award an order for a new identical requirement to the same bidder at the same price; • A proposed contract relates to the obtaining of services of specific individuals; • Bids or proposals from short-listed firms have been received, but all bids/proposals are rejected, and approval has been provided for waiver of competitive negotiation through the Contracts, Assets and Procurements Committee ($1,000 - $29,999) or Chief Procurement Officer ($30,000 - $99,999; $100,000 and more).
  • 36. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Criteria for Selection of Companies for Short List The following factors are to be considered when creating a short-list of firms for participation in a Request for Quotation/Request of Proposal during a standard procurement or contracting process. • Known reliability or general reputation of firm • Availability of product servicing or other remedial services after sales through in-country representation • Ability to provide training and/or user Handbooks in required language • Track-record of providing previous satisfactory performance • Credit worthiness (to be checked via data-bases, bank records, credit checks, etc.) • Monetary value of the purchase (based on previous experience with firm) • General availability of competing product or consulting sources • Distance of firm, i.e., consideration of transport costs • When issuing an RFP for a large and/or complex assignment, conformity to general short- listing considerations which recommend that 1-4 short-listed firms come from major under-utilized UNDP donors; 1-3 from developing countries; and 1-2 from countries that may not have been included in earlier procurement short-lists for a project is to be observed.
  • 39. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Local Purchase Order Project No: Project Title: DATE: PURCHASE ORDER No: VENDORS’ NAME AND ADDRESS: PAYMENT Cheque Bank Transfer MODE TERMS OF DELIVERY PAYMENT DATE: ITEM DESCRIPTION UNIT Q’TY CURRENCY NUMBER OF GOODS/ UNIT PRICE AMOUNT SERVICES DELIVERY MARKS TOTAL AMOUNT CHARGEABLE ACCOUNT CODE: COMMITMENT No: /MOD AUTHORIZING OFFICER: Name: Date: THE ABOVE PURCHASE ORDER IS THE GOODS SUPPLIED UNDER ABOVE ACCEPTED HEREWITH: PURCHASE RECEIVE HEREWITH: I hereby certify that the goods supplied under this I hereby certify that the goods supplied under this Purchase Order come from/have been Purchase Order received fully in manufactured or assembled in: operation/completely/in good condition. ……………………………….. …………………………….. (Agency’s Stamp and Signature) Date (Vendor’s Stamp and Signature) Date
  • 40. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex 11J: Request for Quotation ISSUING OFFICER: DELIVER TO: Tel: Fax: e-mail We would appreciate your assistance in providing us with the quotations as listed below: ITEM NO: DESCRIPTION OF GOODS/SERVICES UNIT QTY CONDITIONS • UNDP General Condition are applicable • Delivery Terms (incoterms 1990) • Payment Terms • Deadline for submission • Validity of quotation • Language of documentations PLEASE STATE • Delivery time • Shipment weight and volume (kg/ m3) • Warranty conditions and availability of local services • Validity of quotation • Discounts
  • 41. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Bid Opening Records BID OPENING RECORD Invitation to Bid/Request for Proposal for: Project number and title: ……………………………………………………………………. Date of issue: Opening date and time: Closing date: Place: No. of Bidders No. of bids received invited: Remarks/Corrections Country of Total Complete/ Bidder Origin No of pages Amount Incomplete Bid The original bids with attachments were opened in our presence and all pages duly numbered and initiated by us Name Title Signature Initial Date Note: If UNPD is managing the procurement process, at least one more UNDP staff (besides the Procurement/Programme Officer) should be present at the opening. In situations where the Government is managing the procurement process, presence of one UNDP official is sufficient.
  • 42. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Sample Format for Service Contract No. 2001-0001-0X UNITED NATIONS DEVELOPMENT PROGRAMME in LIBERIA ___________________________ MEMORANDUM OF CONTRACT MADE (date) between the United Nations Development Programme (UNDP), a subsidiary organ of the United Nations, and (name) ( hereinafter referred to as "the subscriber") whose address is: . It is noted that UNDP, being part of the United Nations, is not subject to and cannot be obliged to submit to local laws and regulations on labour-related matters. Therefore this contract spells out all conditions of employment of the subscriber, as it cannot be supplemented by any other rule or regulation. 1. DURATION OF CONTRACT This contract will come into effect on _______(date)_______, and expire on __________(date)____ subject to the provisions in paragraph 9 below. This contract carries no expectation of renewal. 2. TERMS OF REFERENCE The subscriber agrees to the terms of reference as set forth in the Annex “A” to this contract. 3. STATUS, RIGHTS AND OBLIGATIONS OF THE SUBSCRIBER The subscriber is not being considered in any respect as being a staff member of the UNDP (or other UN agency), and is covered neither by the UN Staff Rules and Regulations nor by the Convention on Privileges and Immunities. The subscriber recognizes and accepts the fact that the terms of employment are different from those which apply to UNDP staff members under the UN Staff Rules and Regulations. The rights and obligations of the subscriber are strictly limited to the terms and conditions of this contract. Accordingly, the subscriber is not entitled to any benefit, payment, subsidy, compensation or pension from UNDP, except as expressly provided in this contract. 4. REMUNERATION As full consideration for the services performed by the subscriber under the terms of this contract , UNDP will pay the amount of __________________ gross per month worked. No other remuneration, benefits, compensation or subsidy will be paid under this contract. No social security contributions will be made by UNDP, except as provided for in paragraph 6 below. Daily subsistence allowance for official travel will be paid to the subscriber by UNDP on the basis of rates established for this purpose. 5. ANNUAL LEAVE, SICK LEAVE, HOLIDAYS AND HOURS OF WORK The relevant conditions will be those, which are specified in Annex "B" of this contract, attached.
  • 43. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS 6. SOCIAL SECURITY <UNDP will make any legally required minimum payments into the national social security plan to meet its obligations as employer, in order to facilitate coverage of the subscriber for old age and health benefits. The subscriber will meet his/her own obligations under the mentioned plan.> or <The subscriber is responsible for payment into the national social security plan and to this end the UNDP will pay to the subscriber, as part of the monthly remuneration, the amount due from the employer, so as to enable appropriate coverage for old age and health benefits. Accordingly, the UNDP is exempt from any liabilities regarding the national social security legislation.> or < In lieu of participation of the subscriber in a national social security plan providing coverage for old-age and health benefits, the subscriber will participate in a private local social security scheme and a private health insurance scheme. UNDP will make the contributions required directly to such schemes. The subscriber will be personally responsible for making any contributions due from him/her.> or < The subscriber has demonstrated that he/she has appropriate coverage for old-age benefits (and/or health coverage) and UNDP’s obligations will be limited to providing a cash compensation, included in the total remuneration cited in para. 4 above, instead of making contributions to a social security (and/or health) scheme. Further information is provided in the attached Conditions of Service, Annex B. 7. INCOME TAX The subscriber is solely responsible for all taxation or other assessments on any income derived from UNDP. UNDP will not make any withholding from salary for the purposes of income tax. UNDP is exempt from any liabilities regarding taxation and will not reimburse to the subscriber any amount. 8. COMPENSATION FOR INJURY, DISABILITY OR DEATH In the event of disability or death during the period of service which may be attributable to the performance of services under the terms of this contract, the subscriber is covered through a global policy, and will be entitled to compensation only as set forth in the policy, which may be subject to change. 9. TERMINATION Either party may terminate this contract at any time giving the other party 14 days written notice in advance of the date of termination. Notwithstanding any provision of this contract that expressly remains binding upon either party after the contract expiration, all contract obligations will cease upon termination. The subscriber will only be entitled to reasonable compensation, equivalent to one week of gross salary for each un expired month of the contract remaining after the date of termination, unless such termination is the result of the subscriber's improper conduct or violation of any term of this contract, in which case the subscriber will not be entitled to either a period of notice or other compensation. 10. DESIGNATION OF BENEFICIARY The subscriber has designated (name) whose address is (address) as his/her beneficiary for all amounts outstanding to the subscriber’s credit under the terms of the contract in the event of the subscriber’s death, to the extent that such amounts can legally be awarded to this person under the laws of the country. 11. TITLE RIGHTS The title rights, copyrights and all other rights of whatsoever nature in any material produced under the provisions of this contract will be vested exclusively in UNDP. 12. UNPUBLISHED INFORMATION The subscriber will not communicate to any person, government, or other entity external to UNDP any unpublished information made known to the subscriber by reason of performing his/her duties under the terms of
  • 44. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS this contract, except as required by the assignment or upon authorization by UNDP. This provision will survive the expiration or termination of the contract. 13. DISCLOSURE The subscriber will disclose to the representative of UNDP any business or professional employment or activity in which he may be engaged prior to or at any time in the course of the present contract. These activities may not be incompatible with the performance of services called for in this contract nor represent a real or perceived conflict of interest. 14. STANDARDS OF CONDUCT The subscriber will conduct himself/herself at all times with the fullest regard for the purposes and principles of the United Nations and its Agencies, and in a manner befitting his/her relationship with the United Nations under the contract. The subscriber may not engage in any activity that is incompatible with those purposes and principles or the discharge of his/her duties with the government. He/she will avoid any action and in particular any kind of public pronouncement which may adversely reflect on that relationship , or on the integrity, independence and impartiality which is required by that relationship. While the subscriber is not expected to give up any national sentiments or political and religious convictions, he/she will at all times bear in mind the reserve and tact required by reason of his/her relationship with the United Nations and its Agencies and the government. The subscriber will not accept any favour, gift or remuneration from any source external to the United Nations without first obtaining approval from the Secretary-General of the United Nations or the Administrator of UNDP. 15. SETTLEMENT OF DISPUTES Any claim or dispute relating to the interpretation or execution of the present contract which cannot be settled amicably will be settled by binding arbitration. UNCITRAL arbitration rules will apply. Binding arbitration must in all cases be preceded by a conciliatory procedure under UNCITRAL rules. By _____________________ By ________________________ Resident Representative Subscriber on behalf of the United Nations Development Programme Date: Date:
  • 45. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS NEX Audits The premise of NEX and NGO execution is that UNDP is entrusting a governmental agency or an NGO with its resources, in order for the entity to carry out project activities. The overarching objective of a NEX or NGO audit, therefore, is to provide UNDP with assurance as to whether the resources are, in fact, being properly used. UNDP and the Executive Board have long recognized the need to conduct audits in order to provide this assurance. Financial Regulation 16.04 includes the requirement that each UNDP programme activity is audited "at least once in its lifetime" and, until it was amended in August 2001, Financial Rule 116.04 included a requirement for biennial audits. For the biennium 1998-99, the expectations of the Board of Audit in terms of what they needed to have assurance on the expenditures reported in the financial statements exceeded the audit requirements stated in Regulation 16.04 and Rule116.04. For the biennium 1998-99, the Board required audit coverage of at least 80 per cent of the total NEX expenditures in a country, in order for it to have assurance that expenditures were fairly stated. The qualification of $723 million consisted of NEX expenditures in those countries that did not achieve 80 per cent coverage. For the biennium 2000-2001, the Board of Audit is taking a somewhat different approach. Its primary focus is on whether UNDP is effectively monitoring resources managed by governments and NGOs. In this respect the Board will be looking for compliance with our audit and monitoring procedures, as documented in the Financial Rules and Regulations and the Programming Manual, and for appropriate justification where exceptions are made. In order to make this assessment, the Board plans to select a large number of NEX projects and to gather documentation for each project. They also plan to visit a number of countries to review our monitoring practices. Accordingly, in November or December you may be asked to provide project information, such as minutes of meetings with stakeholders to discuss progress, documentation of project visits, and evaluation reports. 14.2 Objective The overarching objective of a NEX audit is to provide UNDP Administrator with assurance as to whether the sources are, in fact, being properly used in accordance with: • UNDP Financial regulations, rules, policies and procedures that apply to programmes and projects • The PSD or project document and work plans, including activities, management and implementation arrangements, expected results, monitoring, evaluation and reporting provisions; and • The key considerations for management, administration and finance
  • 46. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS 14.3 Scope The audit of NEX programme or projects must cover, but not necessarily be limited to, the following: • Substantive performance • Rate of delivery • Financial accounting, monitoring and reporting • Systems for recording, documenting and reporting on resources • Equipment use and management; and • Management structure, including the adequacy of internal control and record-keeping mechanisms. 14.4 Contents: The audit must confirm and certify that: • Disbursements are made in accordance with the activities, work plans and budgets of the PSD or project document; • Disbursements are supported by adequate documentation; • Financial reports are fairly and accurately presented and represent correctly the financial provision • Appropriate management structure, internal controls and record-keeping systems are maintained • Monitoring and evaluation of activities and the progress towards expected results are undertaken as planned and according to the key considerations for management • Procurement, use, control and disposal of non-expendable equipment are in accordance with the Government’s or UNDP requirement; and • Satisfactory measures have been taken by UNDP-CO to comply with the recommendations of prior audits. 14.5 Funds to be audited The Audit shall cover the funds channeled through the government by advances of funds. Expenditures incurred on behalf of the programme or project by UNDP CO providing support to national execution or other UN agencies acting as implementing agents, shall be covered by the appointed auditors of these agencies. In this case, the auditors of the programme or project, provide a scope restriction to the audit stating that the audit opinion is limited to the funds received and expenditures incurred by the Government only.
  • 47. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS 14.6 The audit process The audit must be conducted in conformity with generally accepted International Standards on Auditing standards and in accordance with the professional judgement of the auditor. The standards applied are normally referred to in the audit report. The legally recognised auditor of the Government normally conducts the audit. However, in instances when such arrangements are not feasible, the audit may carry out by a commercial auditor engaged by the executing agent. The audit authority must be mentioned in the PSD or project document. Governments are responsible for funding the costs of audit. However, the UNDP Resident Representative may exceptionally approve the use of the programme or project funds for audit costs if a commercial auditor carries out the audit. In that case, adequate financial provision for the audit must be included in the programme or project budget. The UNDP country office must organise briefings with the auditors before the audit exercise and upon the completion of the audit. The briefings must occur even if the auditors have prior experience of auditing UNDP programmes or projects. The findings of the draft audit report must be discussed in detail with the executing agent, including appropriate programme or project management staff, the government co-ordinating authority and the UNDP Resident Representative. Their comments are included in the final report. The executing agent is the recipient of the final audit report. The executing agent forwards it to the UNDP Resident Representative. The UNDP country office reviews the audit report from its perspective and forwards the report to UNDP headquarters. The audit report is to reach UNDP headquarters (Office of Audit and Performance Review) no later than 30th April to enable the United Nations Board of Auditors to comment on the report and incorporate their comments in their report to the General Assembly and the Executive Board of UNDP. The executing agent also shares the audit report with the government coordinating authority and other concerned parties, as appropriate. 14.7 Responsibility and Follow-up actions The audit report is an integral part of the monitoring and evaluation process. Its contents are taken into account in the annual progress review of programmes or projects, in programme or project evaluation and in the annual and triennial country review. The executing agent must ensure that appropriate action is taken by relevant parties to implement audit recommendations. The UNDP Resident Representative is responsible for following up with the executing agent and programme or project management on the implementation of the recommendations made in the audit report that pertain to them.
  • 48. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS The UNDP Resident Representative, in order to ensure that appropriate and timely action is taken on adverse findings and recommendations of the auditors, must introduce a control mechanism within the UNDP country office to follow up on the recommendations until they are implemented. Audit as Part of Monitoring and Evaluation The audit report shall be an integral part of the monitoring and evaluation process. Its contents shall be taken into account in the annual progress review, in evaluations, and in the country review.
  • 49. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex 14A: Audit Procedures This annex provides guidance to the UNPD-CO and auditors on how to ensure and conduct audits for UNDP-supported programme and projects. The concerned parties should in each case adapt the proposed instruments necessary. These instruments are: 1. Audit plan 2. Standard TOR for audit 3. Standard contract for auditors 4. Standard audit programme 5. Checklist of documentation 6. Checklist of issues for auditors 7. Outline for the standard audit report 1. AUDIT PLAN The UNDP-CO draws up an annual audit plan by November. The audit plan lists the programme and project scheduled to be audit on that given year, considering whether the programme or project has previously been audited, the volume of funds, number of programme and projects, workload, among other things. The annual audit plan will be established based on the following: a) Application of August 2001 Financial Regulation 116.04, which is an amendment to Financial Regulation 16.04; a requirement for biennium audit for projects exceeding annual expenditure of USD 100,000; b) Inclusion in the current year’s audit of large programme/projects, particularly if they were not included in the prior year’s audit c) Identification of problem programme/projects d) Identification and selection of programme/projects for audit, if they are at the peak of their life-long delivery The annual audit plan must reach UNDP headquarters by 15 January for review by the UNDP External Auditor. A listing of estimated total expenditures must be sent to UNDP HQ together with the annual audit report for review purposes
  • 50. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex 14B: Standard Terms of reference for audit These terms of reference are to be used locally and adapted for each audit as necessary. These terms of reference are attached to the audit contract/agreement. 1. Background The General Assembly of the United Nations has established the United Nations Development Programme to support and supplement the national efforts of developing countries at solving the most important problems of their economic development and to promote social progress and better standards of life. UNDP receives funds from donors, for which it is accountable, and allocates these funds to programme countries in support of sustainable human development programmes. National execution is an arrangement whereby UNDP entrusts these resources to national government authorities to undertake and manage UNDP-supported programmes/projects. The national government authority responsible for the overall management of the programme/project is called the executing agent. Governments are responsible for the management, including audits, of all UNDP resources of nationally executed programmes/projects, and they are accountable to UNDP for the entirety of UNDP resources under their management. Each nationally executed programme/project must be audited if the total expenditure for the year exceed USD 100,000 and projects that had important activities in that year. The timing of an audit of a specific programme/project is determined by an audit plan established annually for each programme country. 2. Purpose Under the overall supervision of the executing agent and in close collaboration with other concerned entities (the UNDP country office, the government coordinating authority and the implementing agents), the auditors will conduct audits of the programme/projects. The overall objective for the audit of nationally executed programmes/projects is to provide the UNDP Administrator with reasonable assurance and audit opinion that UNDP resources are being managed in accordance with: (a) The Government financial regulations, rules, practices and procedures 2; (b) The terms and conditions of the programme support document (PSD) or project document, including the delivery of planned outputs, the management and implementation arrangements, and the provisions for monitoring, evaluation, and reporting; and (c) The UNDP procedures and standards for accounting, financial management and reporting of nationally executed programmes/projects. 2 When the application of these regulations and rules cannot be undertaken by the Government, the Government may want to use the general policies and procedures set out in the relevant UNDP manuals and the UNDP procedures and Financial Regulations and Rules.
  • 51. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS 3. Audit scope The audit of nationally executed programmes/projects must cover the financial operations and the use and control of non-expendable equipment as well as provide detail observations and comments on the management structure and the monitoring, evaluation and reporting mechanisms. The following aspects are to be considered: a) Assessment of the rate of delivery; b) Financial accounting, monitoring and reporting; c) Systems for recording and reporting on resource utilization; d) Equipment use and management; e) Management structure, (which entails overall organization,staffing and the like), including the adequacy of appropriate internal control and record-keeping mechanisms; .and f) The audit shall only cover nationally implemented budget lines, and not those implemented by the associated UN Agencies. 4. Audit certification The audit of nationally executed programme/project must confirm and certify that: a) The disbursements are made in accordance with the activities and budgets of the PSD or project document; b) The disbursements are supported by adequate documentation; c) The financial reports are fairly and accurately presented and represent correctly the financial position; d) An appropriate management structure, internal controls and record-keeping systems are maintained; e) The executing agent and the UNDP country office have undertaken and have prepared reports for monitoring and evaluation of the substantive activities and of the management systems of the programme/project; f) The procurement, use, control and disposal of non-expendable equipment are in accordance with the Government’s or UNDP requirements; and g) Satisfactory measure has been taken by the executing agency and by the UNDP to comply with the recommendations of the prior audits. 5. Methodology and timetable The audit is conducted in accordance with the professional judgement of the auditor, and with appropriate reference to: a) The International Standards on Auditing (ISA), namely the standards on auditing promulgated by the International Federation of Accountants; b) Generally accepted common auditing standards in the programme country; c) The standards and terms of reference established for the United Nations Board of Auditors, which are described in the annex to the UNDP Financial Regulations and Rules.
  • 52. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS The auditors must undertake the following activities, among others : a) Consult with relevant units as necessary (the executing agent, the UNDP country office, implementing agents, the government coordinating authority, other concerned parties) ; b) Obtain and analyse existing documentation; c) Review the procedures and systems currently in UNDP programming Manual, 6.8; d) Perform test-checks on accounts and documents; e) Write the audit report with recommendation for action; f) Present the findings of the report to the parties concerned and submit five copies to the executing agent. The timetable of the audit depends on the complexity of the programme/project to be audited. [The executing agent should indicate duration of audit in these terms of reference or in the audit contract.] 6. Sources of information The executing agent and the UNDP country office, and other concerned entities as appropriate, must provide the auditors with all relevant information required by them for conducting the audit. A checklist of documentation is attached. 7. The audit report The auditors must produce an audit report, and shall do so to the extent possible, in the suggested format. The audit report must contain comments, observations and an opinion on each of the audit scopes above, as well as a general opinion on the programme/project. Before finalising the audit report, the auditors must discuss their findings with the executing agent, the government co-ordinating authority and the UNDP Resident Representative. The auditors will present or incorporate the responses in the audit report. The auditors must submit the final audit report to the executing agent in five copies. The auditors must also stamp the latest annual financial report of programme/project dated 31 December, certified by the executing agent and attach it to the audit report. The UNDP country office to reach UNDP headquarters must forward the audit report by 30 April following the year of audit.
  • 53. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex: Checklist of documentation for auditors To conduct the audit in an efficient manner, the auditors require access to the originals or copies of all relevant documents and files on the programme/project. The executing agent and the UNDP country office are responsible for ensuring that the following documentation, at a minimum, is available to the auditors for their work : Documentation should be available at UNDP country Document office Executing agent Programme support document or project document X X All budget revisions X X The original and revised work plans X X Requests for direct payment by UNDP X X Implementing agents’ expenditure statement X X The financial report X X Combined delivery report X X Disbursements and payment vouchers (DVs) with supporting documentation X X Inter-office vouchers (IOVs) X X Annual programme/project reports (APR) X X Tripartite review reports X X Evaluation reports, other review reports, the terminal X X report Annual inventory of equipment X X Logbooks for vehicles X Documents transferring ownership of equipment X X List of government officials with specimen X X signatures, authorized to sign financial reports United Nations operational exchange rates for the X X period audited
  • 54. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Annex: Outline of standard audit report The audit report shall include, but not be limited to, the following elements: I. INTRODUCTION In terms of the scope of work identified in letter [number of letter]/Terms of reference/contract dated [date of letter to auditors] and also in terms of the provisions contained in programme support document/project document [programme/project number and title] financed by UNDP, and the Government of [programme country] we carried out an audit of the transactions pertaining to this programme/project for the period ending 31 December [year]. II. BACKGROUND The programme support [or project] document was signed on [date of approval of document] with the following contributions: (a) Government of [programme country] USD (b) UNDP USD (c) Other inputs USD TOTAL USD The programme/project commenced its operations as from [day, month, year] with an estimated duration of [insert number of years or months] years/months; with a detailed work plan of activities and target dates against which outputs are to be produced. III. SCOPE OF AUDIT The audit was conducted in conformity with the provisions of the programme support/ project document, generally accepted common auditing standards, and the principles and procedures prescribed for the United Nations with respect to funds obtained from or through UNDP. The audit accordingly included such tests of accounting records, internal controls and other procedures as were considered essential for due performance of this audit. Discussions on management and accountability were held with the Resident Representative and his/her staff, the government coordinating authority, executing agent and [insert other parties consulted]. The audit opinion is limited to the funds received and expenditures incurred by the Government, and the opinion does not cover expenditures incurred by United Nations organizations. [This is called a scope restriction and is used for expenditures incurred on behalf of the programme or project by United Nations
  • 55. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS agencies acting as implementing agents or by the UNDP country office providing support to national execution. Audit of these expenditures are carried out by the appointed auditors of those organizations.] IV. THE AUDIT REPORT WITH OVERALL OPINION ON: [insert opinion for points a-d below] (a) Financial operations and controls: (b) Adequacy of the management structure: (c) Equipment use and control: (d) Monitoring, evaluation and reporting: V. EXECUTIVE SUMMARY [Insert a brief summary on the main findings and recommendations] VII. OBSERVATIONS, FINDINGS AND RECOMMENDATIONS [Insert a detailed description of the main findings and recommendations, and indicate who is responsible for follow-up of each recommendation. Incorporate responses from the parties concerned after consultation with them. ] Except for the matters referred to in paragraphs [insert appropriate paragraphs from section 4] above, we, based on the audit work carried out by us, believe that: (a) The rate of programme/project delivery is as per the work plan ; (b) The disbursements have been made in accordance with the programme support document/project document; financial rules, regulations, practices and procedures of the Government; and, in the absence of financial governance of the Government, are in accordance with UNDP rules and regulations; (c) The programme/project disbursements are valid and supported by adequate documentation; (d) The programme/project financial statements present fairly and accurately the financial position at the end of the period audited ; (e) The equipment management is proper; (f) The programme/project management maintains an appropriate financial management structure, internal controls and record keeping systems. Name and signature of auditor Enclosures: Report with observations, findings, and recommendations; Combined delivery report;
  • 56. DEX UNIT - LIBERIA NEX/NGO GUIDELIENS Financial report [stamped/certified by auditors]