UN Development System Guiding Principle

1. UN Development System Guiding Principle

2. Modalities for Financial Partnerships IP is Government IP is NGO (includes universities and intergovernmental agencies) IP is UN Agency IP is UNFPA UNFPA Rep signs AWP Register Implementing Partner UNFPA funds another entity to… UNFPA funds a UN agency to…. Country Programme (CP) Global and Regional Programme (GRP) …undertake ad-hoc/one time inter-agency activities, i.e., a workshop, document, World AIDS day support etc as part of a UNFPA AWP (which does NOT need to be signed by the other UN agency) 1 …provide goods from a private sector business; or specific services, (such as printing, design services, evaluation) from an NGO or a private sector business (Procurement) “…strengthen the capacity of a non IP-NGO to undertake work related to UNFPA mandate” and are part of CPs/GRPs through a grant. This applies to NGOs only Signs AWP with UNFPA (incl. proposal) Sign LoU for CP1 Sign LoU for CP1 Sign LoU for GRP1 Sign Basic Agreement with UN Agencies Signs AWP with UNFPA (incl. proposal) UNFPA signs Contract for professional services with vendor UNFPA signs MoU with NGO (grantee)4 UNFPA signs Basic Agreement with UN Agencies If IP contracts another entity, IP signs written agreement with contractee, according to IP rules and regulations IP’s (NGO) & UNFPA’s Financial Management Procedures Apply NGO’s Procurement Procedures Apply for Procurement Components2 IP’s (UN) and UNFPA’s Financial Management Procedures Apply4 UN Agency’s Procurement Procedures Apply for Procurement Components4 IP’s (Government) & UNFPA’s Financial Management Procedures Apply Government’s Procurement Procedures Apply for Procurement Components2 UNFPA Programme and Financial Management Procedures Apply UNFPA Programme and Financial Management Procedures Apply UNFPA Procurement Procedures Apply 4Max: $30,000 per entity per year for CP (signed by CO Representative), or $100,000 per entity per year for GRP (signed by Regional or HQ Director) 1 LoU is signed only once for the duration of the programme cycle 2 When not possible or desirable for entity to apply its own procurement procedures, procurement components can be transferred back to UNFPA for implementation. 3 UN Agencies do not fill out FACE forms

3. Cash Transfer Modalities • 4 cash transfer modalities within the frame work of programme content and operational agreement described in the CPAP • Direct Cash transfer to IP for the obligations and expenditures to be made by term in support of activities agreed in the AWP • Direct Payment to vendor and other 3rdparties, for the obligations incurred by IP in support of activities agreed in the AWP • Reimbursement to IP for obligations made and expenditures incurred by them in support of activities agreed in AWPs • Direct agency implementation through which the Agency makes obligations and incurs expenditure in support of activities agreed in AWPs.

4. Cash Transfer Procedure • All agencies providing cash transfers under any of the modalities (direct cash transfer , direct payment, reimbursement, direct agency implementation) • The Basic elements of cash transfer procedures • Basis for disbursement AWPs & request by IP part of FACE form • Periodicity of disbursement: • Reporting of cash utilization • Assurance over accuracy of reporting (spot checks, frequent and in-depth programmatic monitoring activities, more frequent audit) .

5. Managing Risk • There is a risk that a cash transferred to IP may not be used in accordance with the agreement between the Agencies and IP. The level of risk can be different for each IP. • That depends on the Agencies effectively and efficiently mange this risk. Some of the elements considered are the IP system of Accounting , Reporting , Auditing, and Internal controls. • The overall risk rating for management of cash transfer is rated low , if the IP system: • Is considered capable of correctly recording all transactions and balances • Supports the preparation of regular and reliable financial statement • Safeguards the entity’s assets • And is subject to acceptable auditing arrangements