Session 3: Overview of responsibilities of implementing agencies

1
Session 3 Overview of responsibilities of
implementing agencies
Giulia Vallese, Deputy Representative UNFPA
Office for the Pacific
2
Topics

• Roles and responsibilities of implementing
  agencies incl
• Work Plan, Financial Reporting, Report on
  non-Expendable Property
• Audit
• Feedback on questionnaire

3
An implementing Agency has

• Substantive accountability
• Financial Accountability
• Custodial accountability

4
Modalities for Implementing UNFPA Supported
Projects

• Government Ministry/Department
• NGOs and Regional Organizations
• UN Specialised Agencies such as WHO
• UNFPA as an Implementing Agency
• Split Implementation

5
Key Responsibilities of an Implementing Agency
Partner

• Legally binding
• Signed documents (Impl. Agency and UNFPA). Future
  document will consist of Budget and Annual
  Workplan
• One Letter of Understanding (for Government and
  NGOs) for all activities during programme cycle

6
Key Responsibilities of an Implementing Agency

• Establishing and operating financial system. If
  possible, open a separate bank account
• Quarterly or six-monthly submission of COE -
  Certificate of Expenditure (COE)
• Annual Workplan and Workplan Monitoring tool for
  the quarter with COE linking resources with
  results
• Summary of Assets (Form C) Annual Expenditures
  Forms D and E)
• Review and finalisation of annual workplan
• Fostering monitoring and evaluation of activities
  and outputs
• Ensuring closure of projects once financially and
  operationally closed
• Ensuring audit based on accounting standards

7
Financial Transactions

• Budget allocated on yearly basis
• Budget Revisions
• Supplementary approvals
• Different funding modalities
• Direct payment
• Reimbursement
• Advance
• Grants/service contracts for specific activities

8
Commitment

• Commitment of UNFPA
• Commitment to specified budget based on signed
  LOU, subject to availability of funds
• Commitment to specified amount from other
  resources subject to donor interest
• Commitment of Government
• A statement of government's contribution (in kind
  or monetary contribution to the CP
• Commitment to support UNFPA in raising funds
  required to meet the financial needs of the
  country programme (assist in developing Resource
  Mobilisation Strategy)
• Commitment to review implementation and take
  corrective actions

9
Financial reportingCertificate of Expenditure
(COE)

• Following Reporting period
• Quarterly Advance Quarterly Expenditure
  Deadline
• Qrt 2 May-Jul Qrt 1 Jan Mar 30 April
• Qrt 3 Aug-Oct Qrt 2 Apri Jun 31
  July
• Qrt 4 Nov - Jan Qrt 3 Jul Sept
  30 Oct
• Qrt 1 Feb-Apr Qrt 4 Oct Dec
  15 Dec for expend
• 31 Jan for Advance
• Six Monthly Reporting
• Advance Six monthly expenditures Deadline
• 1 July 30Dec 1 Jan 30 June 31 Jul
• 1 Jan 30June 1 July 31 December 15 Dec
  for Expend
• 31Jan for advance

10
COE
11
COE- Quarterly/Six-monthly Advance

• What needs to be submitted
• Workplan for Advance breakdown by Activity ID in
  local currency. Workplan Monitoring Tool when
  reporting (see ME session)

12
Asset Management Non expendable property

• Definition
• Any item which costs USD1,000 FOB and which
  has a service life time of at least three years.
  In addition, items regarded as attractive items
  shall also be included on the Form
• Attractive Items laptops, printers, CD burners,
  DVDs, Digital cameras, mobile phone, televisions
  etc..

13
Form C Non expendable property report

• Form C should clearly mark
• A) The date of acquisition
• B) Equipment Number and description
• C) Serial Number
• D) The cost
• E) Location
• Only include items which have not been officially
  transferred to implementing agency

14
Annual Year End Forms

• Annual Status of Funds Report
• Annual Disbursement Report
• Both reports have to be certified and included as
  part of the audit

15
Audit outline

• 1) Definition GVT NGO implemented projects -
  Accountability
• 2) Audit Plans
• 3) Audit Reports - requirements scope
• 4) Assessment and Action Plan
• 5) Evaluation of Audit Reports
• 6) Policies and procedures

16
Audits Government and NGO implemented projects

• Governments or Non-Governmental organizations
  (NGOs) assume responsibility for ensuring the
  adequacy of the overall supervision and
  management of UNFPA-financed component projects
• Accountability financial, custodial, substantive

17
Audit Plan

• Need to submit to the Audit Services Branch (ASB)
  HQ by 31 October each year
• Audit Plan includes the following
• 1) Estimated expenditures
• 2) estimated audit costs
• 3) and name of audit entity

18
Audit Report

• Audit reports to be submitted by 31 March each
  year
• Audits performed by
• Government Auditors (Auditor General)
• Contracted professional accounting firms
• Originals of the reports should be submitted

19
Audit Report - Scope

• Audit Scope includes the review of
• Project internal controls
• Accounting books and records
• Certification statements
• Financial Forms (accuracy and timeliness of
  submission)
• Closure requirements if project is closed

20
Audit Report

• Audit reports should include
• Audit opinion
• Management Letter audit observations,
  recommendations and management comments
• Certified financial forms

21
Evaluation of audit reports-Example of Audit
observations

• Audit reports submitted late or not submitted for
  some projects
• Financial Forms not included in the report or not
  certified
• Management action plans not submitted
• Specific Audit Issues
• Bank reconciliation not performed.
• Supporting documentation for expenditures not
  available or not adequate
• Non-expendable equipment not tagged and physical
  inventory not performed
• Quotations for purchases not obtained

22
Project Closure

• Operationally closed all activities completed
• Inventory of Non-expendable equipment
  disposed/transferred
• Financially completed all funds accounted for
  or returned to UNFPA
• Way forward SWAPs, Budget Support?

23
Thank you!