Financial Resources Management Unit

The Financial Resources Management Unit (FRMU) is responsible for providing high quality and timely services to internal as well as external clients. Other responsibilities include ensuring that recommendations of audits are systematically managed through regular spot checks on projects and programmes, as well as through the implementation of activities under the Harmonized Approach to Cash Transfers (HACT), at country level

UNDP cost recovery refers to the additional resources that the country office mobilizes in order to ensure that UNDP’s work in Jordan is sustainable.

UNDP facilitates cost recovery for the services provided to its projects through charging for:

 

• General Management Support (GMS): Service charges for the administration provided in the implementation of donor contributions.
• Implementation Support Services (ISS): Service charges based on the actual number of services received, based on a Universal Price List (UPL).

UNDP enables cost recovery by charging for the services provided to its UN sister agencies through :

• The use of standardized services based on the Universal Price List, and
• Ad-hoc services which are individually negotiated.

International Public Sector Accounting Standards (IPSAS) are independently-developed financial reporting standards widely considered as best practice for public sector organizations, as they impose the most stringent requirements for clarity and transparency.
 

Over fifty governments have adopted IPSAS, or are in the process of doing so. UNDP is presently in the process of adopting IPSAS, to be completed in 2011.
IPSAS standards are based on full accrual accounting, in contrast to the United Nations System Accounting Standards (UNSAS) currently used, which are based on a modified accrual method.
 

IPSAS compliance will ensure that UNDP’s financial reports give a complete and accurate picture of its financial situation. Adopting IPSAS will mean:
 

• Improved accountability
• Greater transparency
• Greater credibility
• Improved overall management and planning
• Improved programme management
• Harmonization of reports and statements across the UN system

To learn more about IPSAS, visit below link and see our IPSAS presentation
http://www.undp.org/about/ipsas/index.shtml

The Harmonized Approach to Cash Transfers (HACT) was launched globally in April 2005. HACT introduces a new way of managing the process of transferring cash to our implementing partners. The Approach is outlined as part of a framework that is applicable to UNDP, UNFPA, UNICEF and WFP only – the United Nations Development Group Executive Committee agencies (or UNDG ExCom).

The United Nations is changing the way it does business both in terms of programme and operations, to keep pace with the changes in the world of development cooperation. To meet these challenges, mapped out in the Millennium Declaration, national partners will have to concentrate their energies on removing barriers to progress as well as on building local capacity.

The management of cash transfers to Implementing Partners is shifted by the HACT from a system of rigid controls to an approach based on risk management, that aims at:

• Reducing transaction costs pertaining to country programmes of the UNDG ExCom agencies, by simplifying and harmonizing rules and procedures as well as facilitating the requesting of information and reporting on funds.
• Strengthening the capacity of Implementing Partners to manage resources effectively ;
• Helping to control the risks related to the management of funds, thereby increasing overall effectiveness.

Before implementing HACT, macro- and micro-assessments are conducted in order to determine the levels of risk in transferring large amounts of funds and to identify knowledge gaps so that a programme can be developed to tackle these gaps.

The macro assessment is an element of the UNCT’s support for country analysis. It highlights the needs for capacity development in the national public financial management system, which should be addressed in the UNDAF.

Micro-assessments are conducted by the UN agencies together with selected Implementing Partners, as the CPAPs are developed. On the basis of the results of an assessment, assurance activities are planned with each of the Implementing Partners. These are described, along with the agreed cash transfer modality, in the project document, and before the inception of the project.

Jordan has been implementing HACT since mid-2007. During this period, the UNDGExCom agencies, along with the Government of Jordan, implemented the main HACT requirements in order to become compliant by end of 2009. These requirements include carrying out the macro- and micro-assessments as well as developing a joint assurance plan. Assurances that range from on-site reviews, which include spot checks, audits and field visits, to reviews of programmes. By the end of 2009, Jordan was declared HACT compliant.

The taskforce responsible for carrying out HACT activities comprises representatives from the different UN agencies in Jordan, mainly UNICEF, UNFPA, UNDP, UNIFEM and WFP. UNDP has been the lead agency for the past three years.
 

The Financial Resources Management Unit administers the monthly of salary/payroll procedures for:

• Fixed term staff
• Service contract holders (SCs)
• Special Service Agreement (SSAs)
• Monthly Payment Order (MPOs)
• UN Volunteers (UNVs)
• Junior Program Officers (JPOs)
• Fellows

The staff member, when recruited, is requested to complete a vendor form stating his/her full name, contact numbers and personal banking details.

Financial Resources Management Unit  process payments to UNDP and non-UNDP staff travelling on official business .
 

Staff entitlement is to 80% of  the amount stated in the authorization (unless otherwise mentioned), the balance being paid upon return and completion of an F10 Claim Form: "Voucher for Reimbursement of Expenses".

The required period for processing is five working days from the date the authorization is received by the FRMU.

The following is a checklist for submission of a complete F10 claim form:

• F10 Claim Form duly filled with the Payee name & Signature, Departure and arrival information.
• Ticket Subs and departure tax slip.
• Official authorization issued by traveler"s agency.
• Travel itinerary sent by travel agent.
• Copy of passport containing airport stamps from both destinations.

For further information about Travel, please see Travel Management section in the General Services Page.  

The Financial Resources Management Unit  provides financial orientation training to new UNDP and project staff, as well as ongoing in-house training to enhance the understanding of UNDP’s financial processes and systems by existing staff.

The FRMU continues to undertake financial training missions to other country offices when requested.  Recent missions have included UNDP offices in Saudi Arabia, Tunisia and Morocco.  The FRMU also provides, upon request,  training to UN sister agencies based in Jordan, such as

• Higher Education and POGAR
• UNIDO – Jordan
• UNIDO – Iraq
• UNCTAD
• UNICEF – Jordan and Regional Office