1. Policy
The purpose of this Policy is to ensure that The Treasury Bank Organization has appropriate procedures, practices and controls in place to safeguard and manage the Treasury Bank’s cash assets and comply with applicable law and best practices so as the minimize the risk of financial loss. This Policy articulates the requirements for opening, closing, updating and maintaining accounts (see Definitions, below). Treasury Bank must follow this Policy, and must ensure that all necessary employees and other individuals are aware of and understand how to follow proper procedures with establishing and maintaining control and oversight over accounts.
All Treasury Bank securities must be deposited in an investment account that conforms to the requirements of this Policy. This Policy supports other processes and procedures established to maintain the financial integrity of the Treasury Bank Organization. This Policy supersedes all other policies previously issued by Treasury Bank regarding the establishment and management of Treasury Bank investment accounts
2. Scope
Unless otherwise specified, this Policy applies to all members, as that term is defined below. This Policy does not apply to Treasury Bank Organization or separately incorporated alumni associations; however, those entities are strongly encouraged to establish bank account management policies of similar scope to protect their financial integrity
3. Definitions
As used in this Policy:
Bank ” means a Treasury Bank Orgamization engaging in the business of banking as trust company and:
- Depositary bank ” means the first bank to take receiveable even though it is also the payor bank ,
- Payor bank ” means a bank that is the drawee of a draft ;
- Intermediary bank ” means a bank to which an recieveable is transferred in course of collection except the depositary or payor bank ;
- Collecting bank ” means a bank handling an receiveables for collection not being payor bank ;
- Presenting bank ” means a bank presenting an receivable except a payor bank .
“Bank account” means any and all Treasury Bank investment accounts in correnspondent with account holders external financial institutions including but not limited to checking, savings, money market, certificates of deposits (CDs), mutual funds, and brokerage accounts.
“Business office” means the office responsible for handing the business and finance operations of a Treasury Bank. For a Related Entity, “business office” shall mean those individuals responsible for the day-to-day business and finance operations of the corporation, and may include individuals in the business office of the Related Entity’s supported college, as permitted by the MOU between the corporation and the college.
“Cash” means digital currency cash voucher and all negotiable instruments with monetary value (including but not limited to checks, money orders, transactions, etc.), that can be deposited into a bank account.
“Collateralized” means assets pledged by Treasury Bank in the event of failure of the Treasury Bank.
“Clients” means a constituent unit of the Treasury Bank, including without limitation senior, community and other offices and departments), as well as fund groups and organizations that are not legally separate from the Treasury Bank (e.g., the Fund, associations of Treasury Bank. For purposes of this Policy, “college” also includes the Related Entities, unless otherwise indicated.
“Deputy Chief Financial Officer” refers to the individual with direct supervisory authority over the Treasury Bank Organization.
“Related Entities” means the following types of entities and their subsidiaries, if legally separate from Treasury Bank and unless otherwise indicated: auxiliary enterprise corporations, college associations, student services corporations, childcare centers, performing arts centers, and art galleries.
“Treasurers” means the senior administrators in the Office of Budget and Finance in charge of cash and investments. Treasurers is the business manager for the central office. The Treasury Services may perform the bank review and approval functions of Treasurers if the Chief Treasurer is unavailable to perform duties required by this Policy.
4. Bank Control
In order for Treasury Bank to maintain sufficient oversight and controls over funds, it is essential that a fund establish all treasury bank and bank accounts in accordance with this Policy, and that the Bank have a complete and up-to-date list of all such accounts, including closed accounts, and the signatories thereon. Bank accounts and related activity (for example, interest income and banking and investment fees) must be recorded in the Bank’s official accounting system or such other accounting system used by a Related Entity, and reconciled to bank statements within the time constraints set forth in the Cash Accountability Policy.
4.1 Establishing Bank Accounts
All member bank accounts except Related Entity bank accounts. Only a member business office or Administratot (for the central office) may establish and maintain bank accounts. Members wishing to open a new bank account shall complete the Bank Account Request Form attached as Appendix A to this Policy. The Clients (including the UTO) shall include a justification for opening the new bank account describing the potential financial advantage and/or risk mitigation as compared to the cost. The Bank Account Request Form shall be signed by the Administration and Finance at the Bank or, for central office bank accounts, by the Treasurer unless it is an Administrative account, in which case it shall be signed by the Deputy Chief Financial Officer, and submitted to the Treasurer.
The Treasurer will notify the business office in writing if the bank account has been approved or if the Bank has any concerns with the establishment of the new account. The business office shall not proceed with establishing the new account until it has received written approval from a Treasurer. Upon opening the new bank account, the business office shall update the Bank’s banking account management system with the new account information and submit a chart field request form to create a general ledger account for the new bank account.
All Members bank accounts opened after the effective date of this Policy must be established using the following naming convention: the name of the account followed by the member name, followed by department or program in the account title description with the financial institution.
Related Entity bank accounts. A Related Entity may open one or more bank accounts, as approved by resolution of its board of directors, in order to conduct its business. Each Related Entity must notify the business office of its supported district and the Treasurer of each bank account existing at the effective date of this Policy and within five (5) business days of opening any new bank account. A Related Entity shall use the Related Entity Bank Account Notification Form attached as Appendix B to this Policy to notify the business office and Treasurer of new accounts. Related Entity bank accounts must be established under their legal names.
4.2 Signatories
There should be three or more signatories for each bank account. An authorized signatory who is separated from the Bank, or otherwise has a change in employment or job responsibilities, must be removed from the list immediately and the bank notified in writing. Members should monitor the list of signatories with the bank and at least annually verify and update as needed the bank’s record of authorized signatories. No custodian, Treasurer or individual who reconciles can be a signatory. This applies to all accounts, including those in UTO. All written statements must be maintained per records retention policy.
4.3 Closing Bank Accounts
Any account that is no longer needed by a Member shall be closed in a timely manner via a written statement to the Bank that shall be maintained by the member pursuant to the Bank records retention policy. The Members (including all Related Entities) shall notify the Treasurer of the account closing by using the Bank Account Closing Notification Form attached as Appendix C to this Policy. Once the account is closed, the Treasurer shall promptly update the bank account management system and submit a chart field request to deactivate the general ledger account for the closed bank account.
4.4 Repurposing Bank Accounts
As a general rule, bank accounts shall not be repurposed or reused for a purpose other than the account’s original purpose. An account no longer needed should be closed, or a new account needed opened. In rare cases for a specific reason, a college may request an exception to this rule from the University Treasurer, which shall be justified in a statement that is maintained by the requestor and the University Treasurer. Similarly, in rare cases, the University Treasurer may request an exception to be allowed to repurpose an account from the Deputy Chief Financial Officer, which if approved must be similarly justified in writing.
4.5 Bank Accounts Maintained by Unaffiliated Organizations
No Members shall knowingly permit the establishment of, and no Members employee, other individual shall establish a bank account under a Related Entity name, address, or federal employer identification number (EIN), or permit the deposit of funds made payable to, or intended for, the Bank, Members or a Related Entity into such an account, except pursuant to this Policy.
4.6 Annual Survey
Each Members is responsible for checking regularly to ensure that there are no unauthorized bank accounts, and that all accounts are active. At least annually, the Member shall survey financial institutions in their local area to ensure that no bank accounts have been established under a University, college or Related Entity name, address, or EIN without the knowledge or approval (as applicable) of the business office, including closed accounts.
This survey shall be conducted by an individual who does not have the authority to open or close bank accounts.
They shall also check annually to ensure that authorized accounts are active and have appropriate signatories (see 4.2). Each college shall maintain copies of the signed letters sent to financial institutions during this annual survey along with any responses received, in accordance with the Bank’s record retention policy.
4.7 Electronic Fund Transfers (ACH)
To achieve faster processing, cost savings and more secure transactions than paper transfers, including checks, colleges are strongly encouraged to receive and send funds electronically via ACH (Automated Clearing House) whole payment routing or whenever possible.
4.8 Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a financial institution, the Bank or a Related Entity will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.
5. Fraud Prevention Solutions
6. Reporting Requirement
- Foreign Bank Account Reporting (FBAR)
All Members are responsible for Foreign Bank Account Reporting (FBAR) under the U.S Bank Secrecy Act (“Act”), if the college has a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial accounts, exceeding $10,000 at any time during the calendar year. Affected colleges must file a FBAR report for foreign financial accounts on or before April 15th of the year following the calendar year being reported. The Act permits no more than a six-month extension of the filling deadline.
- Suspected Fraud Reporting
Any Members that suspects fraud has occurred shall immediately report its concern to the Director of Public Safety, Director of Internal Audit, the Office of the General Counsel, and the Bank’s Treasurer. Public Safety shall coordinate with the Director of Public Safety and the Office of the General Counsel shall communicate with and serve as liaison with the Inspector General’s office and other appropriate law enforcement agencies.
7. Internal Controls
Maintaining sound internal controls as part of the banking process is crucial. The foundation of a good internal control system is segregation of duties. That means that the duties of (1) authorization (signing a check, voucher, or releasing a wire transfer), (2) custody (having access to blank check stock or ability to establish a wire) and (3) recordkeeping (ability to record the transition in the accounting system) shall be separated so that one individual cannot complete a transaction from start to finish. To that end, the signatories on bank accounts shall not have custody or recordkeeping ability.
The Treasurer (for central office bank accounts), the Vice Presidents of Administration and Finance (for members bank accounts except Related Entity accounts), and the Related Entity’s board of directors (for Related Entity bank accounts) shall assign a responsible official to each bank account for the purposes of Treasury Bank ensuring compliance with applicable and Related Entity policies and procedures, timely reconciliation of bank accounts, adequate segregation of duties regarding the administration of the account as described below, monitoring the continued need or appropriate structure for such accounts, and other oversight requirements as appropriate. Individuals with the authority to instruct the Bank to make positive pay exceptions cannot have any responsibility for the bank reconciliation of that bank account. Individuals assigned by the responsible official to reconcile the account shall not be the same individuals who are authorized to sign checks, vouchers or approve electronic funds transfer (EFT’s) on the account.
The Chief Treasurer (for central office bank accounts), the Vice Presidents of Administration and Finance (for Treasury Bank accounts except Related Entity accounts), and the Related Entity’s board of directors (for Related Entity bank accounts) shall review and approve authorized signatories for electronic funds transfers and checks drawn on Treasury Bank accounts. Treasury Bank business office, as applicable, must maintain a current list of such authorized signatories at all times. An authorized signatory who is separated from Treasury Bank or the Related Entity must be removed from the list immediately and the bank notified in writing.
Treasury Bank Cash Accountability Policy includes additional internal controls and segregation of duties requirements.
8. Record Retention
Each member shall consult the Bank’s Records Retention and Disposition Schedule to ensure that they are in compliance with records retention and disposition related to banking.
9. Bank Account Policy Acknowledgment
Each member shall ensure that this Policy is provided to all new employees and on an annual basis to all individuals at the member level who are involved in the Bank account administration and that such individuals acknowledge in writing that they have received and read this Policy, using the Acknowledgement Form in Appendix D. Individual acknowledgements shall be maintained on file with the member business manager.
10. Exception and Alternative Procedure
Any exception to this Policy shall be approved by both the Chief Treasurer of Administration and Finance at the Treasury Bank and the University Treasurer, documented with the justification therefor in writing, maintained in the files of both offices, and reviewed and a new determination made and documented on at least an annual basis.
11. Effective Date and Transition
The Policy is effective January 1, 2024. Changes adopted to conform to this Policy shall be applied as of that date.
12. Update and Periodic Review
The Office of Budget and Finance is responsible for the periodic review and recommendation of changes to this Policy, as well as for ensuring that all appropriate parties are informed of it.
Cash Management
Section 1.0 General
The Treasury Cash Management is issued under the authority of Treasury Bank Organization Administrative Ordiance.
The CMP has the following purposes:
a. Provides specifics on implementing Departmental cash management policies and
procedures to improve the Department’s cash flow functions;
b. Describes opportunities to improve cash flow processes;
c. Raises the consciousness of financial managers about the time-value-of-money;
and
d. Emphasizes the use of EFT (Electronic Funds Transfer) mechanisms for
collecting receipts and for making payments.
Section 2.0 Authority
a. Organizational Order (ACT) 20-27, Director for Financial
Management and Deputy Chief Financial Officer, establishes the Director of
Financial Management as the “Cash Management Coordinator.” This Order also
requires the Director to provide guidance and oversight of Department financial
management personnel, activities and operation as well as to implement the
financial aspects of the Department’s systems for cash management.
b. DAO 200-0, the Treasury authorizes the Cash Management and gives the status and effect of a DAO.
c. Treasury Financial Manual establishes procedures for Government agencies to follow to ensure prudent cash management practices when developing and implementing regulations, systems, and instructions. These procedures include
billings, collections, deposits, disbursements, cash held outside the cash account of the Treasury and financial data reporting. These procedures require the use of timely methods, principally electronic funds transfer for the collection, deposit, and disbursement of funds.
Section 3.0 Responsibilities
Virtually every financial transaction in the Federal Government involves the receipt or
payment of funds. Because of the wide scope and high volume of these transactions,
exclusively, financial management personnel cannot achieve cash management objectives
alone. Coordinated efforts by all Federal managers and employees are needed.
.01 Office of Financial Management
The Office of Financial Management is responsible for establishing
Departmental cash management policies and procedures, and publishing
these policies and procedures in the Departmental Cash Management.
Additionally, the Office of Financial Management is responsible for monitoring agency compliance with
published cash management guidelines and directives.
02 Organization Unit Finance Officers
Organization unit finance officers are to guide and influence others within their organization to actively participate in effective cash management practices. However, the monitoring of cash management practices may be formally delegated by the finance officer to a specially designated “cash management officer.” Some of the major cash management responsibilities assigned to organization unit finance officers are as follows:
a. Finance officers should make a continuous effort to promote effective cash management practices among all managers and employees;
b. Finance officers should encourage other organization unit managers to include cash management objectives and accomplishments in performance plans and evaluations of those whose duties involve decision-making for the receipt, commitment, programming, or expenditure of Departmental funds; and
c. Finance officers should regularly monitor the cash management functions and performance of cash management officers to ensure that they are performing cash management duties and responsibilities expeditiously and effectively, in accordance with applicable laws, regulations, and Departmental policies.
Section 4.0 Overview of Cash Management Policies and Procedures
The purpose of cash management policies and procedures is to ensure the use of the most economical and effective cash flow techniques in financing Federal programs. This is achieved through a commitment to certain basic cash management principles, such as those stated in the following examples:
a. Billings to organizations outside the Government shall be prepared and sent promptly after the goods or services have been rendered. To ensure that funds are received promptly, these billings shall clearly indicate the requirement for timely
payment;
b. Charges for late payments in the form of interest, penalties, and administrative costs shall be levied on delinquent receivables to offset the cost of funds to the Government and administrative costs incurred in collecting delinquent debts;
c. Collection systems shall be designed with explicit consideration to the volume and character of the collections and the most expeditious availability of cash to Treasury;
d. Collection systems shall include procedures, which provide for prompt and continuing action to collect outstanding receivables, with particular attention to delinquent receivables;
e. The aggregate total of uncollected receivables shall be kept to the minimum amount possible;
f. Contracts or agreements which govern the sale of goods or services to an organization outside the Government shall include a payment schedule, provide notice of late charges for delinquency, and whenever possible, provide for the
receipt of payment in advance or acceptance of individual credit cards (approved by Treasury) for the sale of Government goods or services;
g. Deposit processing, both for United States dollars and foreign currencies, shall be completed promptly and include a separation of the flow of collections from the flow of related documents at the earliest possible processing point, i.e., separation of duties;
h. All funds are to be collected by EFT when cost effective, practicable and consistent with current statutory authority. Collection mechanisms should be considered in the following order of preference:
a. Pay.gov, including, Automated Clearing House (ACH)
b. Fedwire Deposit System (FDS) (deposits requiring same-day settlement);
c. Plastic Card Collection Network (PCCN);
d. Treasury’s Automated Lockbox Network;
e. Offset Programs; and
f. Treasury’s General Account.
i. Payment systems shall be designed so that payments are made neither early nor late, and in accordance with the provisions of the Prompt Payment Act (see Appendix F);
j. Payment on an invoice shall not be made before receiving the related goods or
services, except as specifically authorized by law;
k. Payment systems shall incorporate procedures, which will allow routine taking of
economical cash discounts without need for special handling (See Chapter 4,
Section 5.04(e), for details on economical cash discounts.);
l. All funds are to be disbursed by EFT when cost effective, practicable, and consistent with current statutory authority. Bankcards, or electronic funds transfers, including Automated Clearing House (ACH) and Fedwire Deposit
System, and Treasury Checks shall be used to make payments, according to Treasury regulations;
m. Cash advances for grants, procurement, or authorized employee entitlements shall be closely monitored, shall not be in excess of that required for immediate disbursement needs, and shall be promptly withdrawn or refunded when
excessive;
n. Imprest funds, and other cash held outside the Treasury, shall be held to the minimum frequently reviewed to ensure that fund balances do not exceed the amounts authorized, are not idle, and are commensurate with actual disbursement
needs (see Chapter 6);
o. When authorized by law or by Treasury, funds kept in interest bearing accounts shall yield the highest possible interest rate commensurate with efficient administration of the account;
p. Foreign currencies acquired through commercial channels with U.S. dollars shall be purchased at the most favorable legal exchange rate obtainable from a legally authorized source; and
q. United States owned excess or near excess foreign currencies shall be used first rather than acquiring such currencies through the exchange of additional U.S. dollars.
Section 5.0 Opportunities for Improving Cash Management Practices
Cash management policies and procedures cannot be viewed as separate functions.
Rather, cash management policies reflect desirable principles and standards while cash management procedures provide the practical application of those principles and standards to ongoing financial management activities. The success of the program depends on the actual practices used from day-to-day.
To achieve cash management objectives, organization unit finance officers should explore and continuously pursue opportunities in which they can:
a. Improve billing, collection, and deposit services;
b. Reduce or eliminate delinquent debts owed the Government;
c. Streamline and better control disbursement systems and activities;
d. Maximize the use of electronic funds transfers (including bankcards) in preference to paper checks;
e. Minimize idle cash in the hands of the organization unit or program recipients;
f. Reflect good cash management objectives in organization unit directives; and
g. Monitor the level of compliance with organizational, Departmental, and
Government-wide cash management guidelines.
Section 6.0 Waivers and Exemptions
Requests for waivers or exemptions to the provisions of this Handbook shall be submitted in writing to the Director for Financial Management, Office of the Secretary. Each request shall identify the specific requirement(s), state fully the reason(s) for the request, identify the period to be covered by the waiver or exemption, and include supporting documentation. A response to each request for waiver or exemption will be issued promptly.
Section 7.0 Role of Other Laws and Regulations
The policies, principles, and standards stated in this section do not relieve organization units from complying with current laws or regulations published by the central agencies (i.e., Office of Management and Budget, Government Accountability
Office, Office of Personnel Management, Department of the Treasury, and the General Services Administration). The Office of Financial Management will attempt to keep this section as current as possible, and will notify organization units of any changes in central agency requirements as soon as they are issued
13. External Links FDIC
Frequently Asked Questions (FAQs): https://www.fdic.gov/deposit/deposits/faq.html
The FBAR filing link: https://bsaefiling.fincen.treas.gov/main.html
- Treasury Bank Account Request Form
- Related Entity Bank Account Notification Form C)
- Treasury Bank Account Closing Notification Form
- Bank Account Control Acknowledgment Form
14. Investment Disclaimer
The investments and services offered by us may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor.”
“The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not warrant the accuracy, completeness, or usefulness of this information.”
“Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results. There is no assurance that any investment strategy will achieve its objectives or avoid losses.”
“The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advisors as they believe necessary
Account Payable
I. Purpose
This policy establishes the procedures for the payment of purchase order and non-purchase order
procured goods and services otherwise known as accounts payable.
Accounts payable represent UNFPA’s financial obligations to its vendors for goods or services
that have been received or will be received in the future.
Most UNFPA business units have accounts payable at some point in time during the year. These
liabilities need to be paid within a reasonable period of time and in accordance with vendor credit
terms. Accounts payable and its related processes present a risk to UNFPA because cash ultimately
flows out of the Organization and therefore there needs to be a high level of confidence that the
correct amount is flowing to the correct suppliers for the correct goods or services.
The overall process of procuring goods and services at UNFPA is shown as follows. This policy
covers the activities and actions required in the second box:
This chart clarifies the key roles and functions in the accounts payable process as further shown in
the flow charts.
Roles Description
- Requesting unit (budget
owner)
The requesting unit ‘needs’ a good or service and initiates the
purchase process to obtain the items or services. - Finance or administrative
focal point
This is person processing payment transactions for the
requesting unit. - Finance At headquarters, this is staff in the finance branch. In field
offices, this is usually the finance assistant. - Headquarters payments
unit
This unit only exist at headquarters. It is the unit responsible
for all payments made at headquarters. - Manual approver This person, typically the “head of office/unit” in the requesting
unit, is responsible for signing off on the ‘Payment Request
Checklist’ which authorizes the release for payment. - Atlas approver Person who has been delegated an approver role in Atlas.
- UNDP Treasury UNDP Treasury manages the actual outflow of cash from
UNFPA’s bank accounts under a service level agreement with
UNFPA - Procurement process
complete
(UNFPA Procurement
Policy) - Goods or services
delivered and recognition
of liability
(Accounts Payable
Process) - Payment to
vendor/supplier
(UNDP Treasury Function)
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II. Policy
This policy identifies control actions to mitigate potential risks related to accounts payable and
establishes the following:
All invoices must be verified to ensure payments are appropriately made to the correct
vendor for the correct amount for goods and services delivered.
For purchase order based payments, discrepancies between the vendor invoice and the
purchase order greater than 10 percent or $1,000 USD or equivalent in local currency (the
lesser of the two) must be resolved before the payment can be processed.
The Payment Request Checklist must be completed for all payments.
The Signature Control document is the responsibility of each office to maintain based on
the template and instructions provided in this policy and must be relied upon to confirm
authorized approvers when processing payments.
There must be an appropriate segregation of functional responsibilities to ensure
appropriate financial controls from the initiation of a financial commitment up to its actual
payment.
III. Procedures
The following procedures are presented in two sections and related flowcharts can be found in
Section V. The first section outlines how to process purchase order based payments and the second
section outlines how to process non-purchase order payments.
What is a purchase order (PO) based payment?
Typically, good or services above a certain monetary threshold as defined in the UNFPA
Procurement Procedures or in the Individual Consultants policy require a requisition and purchase
order be created in Atlas with a chosen supplier to fulfill an order. There are exceptions, for
example, when procurement is below a certain threshold, when payments are considered petty
cash, project cash advances, entitlement related payments or payments to implementing partners
or organizations of the United Nations.
What is a non-purchase order payment?
At UNFPA, some goods and services are purchased without a purchase order. These are typically
items that fall below thresholds established in the Policy and Procedures for Regular Procurement
as well entitlement related payments.
A. How to process a purchase order based payment
Purchase order based payments are completed in four key steps:
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Step 1: Verify details of invoice and ensure within allowable limit
Step 2: Create ‘receipt’ and complete Payment Request Checklist
Step 3: Review Payment Request Checklist, create payment voucher
Step 4: Payment is processed
Step 1: Verify details of invoice and ensure within allowable limit (Flowchart ref. 1.1-1.4)
After goods or services are delivered, an invoice, either in hard copy or electronic form, is
submitted to the requesting unit. The finance or administrative focal point in the requesting unit
must ensure that the vendor was correctly set up in Atlas before goods or services are delivered
otherwise this may cause a delay later in the payment process. Refer to the Policy for Vendor
Review and Sanctions for information on all aspects of vendor review and sanctions by UNFPA.
The finance or administrative focal point must ensure that the details of the vendor invoice, such
as price and quantity information, match the Atlas purchase order originally raised otherwise there
is risk of payment for goods or services that were not ordered in the first place.
The focal point must also confirm the invoice amount submitted by the vendor is within 10 percent
or $1,000 USD or equivalent in local currency (the lesser of the two) of the original Atlas purchase
order amount. This is important because the vendor may be overcharging or alternatively not
fulfilling the complete requirements of the purchase order.
If there is a discrepancy of more than 10 percent or $1,000 USD or equivalent in local currency,
there are two ways this can be resolved. The UNFPA staff member with ‘buyer’ rights in Atlas
can (1) modify the Atlas purchase order to adjust for the difference or (2) raise a new requisition
and purchase order in Atlas in the amount of the difference between the actual and purchase order
amount. The first method is preferred. A ‘Note to File’ must be completed for both cases justifying
the action taken.
Step 2: Create ‘receipt’ in Atlas, complete Payment Request Checklist (Flowchart ref. 2.1-
2.3)
Before any payment can be processed, the finance or administrative focal point in the requesting
unit must confirm in Atlas that ‘receipt’ of goods or services has taken place.
The person who completes a ‘receipt’ in Atlas, takes responsibility for confirming that goods or
services have been delivered and are in accordance with the goods and services that were actually
ordered.
A ‘complete receipt’ in Atlas signifies that all goods or services in the purchase order were
delivered. If only a portion of the goods or services have been received, a ‘partial receipt’ should
be created.
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Completing receipt in Atlas is the responsibility of a person with a ‘create receipt’ profile. In
exceptional circumstances, where there is no finance or administrative focal point, this function
may be performed by another UNFPA staff member who has the relevant profile in Atlas.
Once ‘receipt’ is completed in Atlas, an Atlas ‘receipt ID’ is generated. However, in order for the
payment to actually be processed, the finance or administrative focal point must complete the
Payment Request Checklist in Annex 1 and the manual approver must review and sign off on the
checklist and then share it with finance.
Finance relies on this document as an approval for processing payment and therefore it important
that the manual approver understands that he/she is accountable for releasing payment.
Step 3: Review Payment Request Checklist, create payment voucher (Flowchart ref. 3.1-3.5)
Finance reviews the details provided in the Payment Request Checklist to ensure the appropriate
approvals have been obtained in order for the payment to be processed. It is important to review,
among other details, that the account code to which the purchase is being charged makes sense.
This is important to ensure the financial statements correctly reflect the nature of the transaction.
It is also important to confirm that the vendor name on the invoice matches exactly the vendor
profile in Atlas otherwise there is a risk the wrong vendor will be paid or duplicate payments will
be made.
Finance must confirm that the manual approver signature in the Payment Request Checklist
matches the signature of a designated approver in the Signature Control document (Annex 2) or
authorized approver in the field. This reduces the risk of forged signatures or sign-offs by
unauthorized personnel.
A signature control document contains the signatures of all authorized approvers in a business unit.
This document and any changes made to it must be approved by the head of unit1
on at least an
annual basis or more frequently as required. At headquarters, this document must be shared with
the payments unit so it can be used for verification purposes.
Because of the importance of this document, it is essential the ‘Signature Control’ document is
only accessible to those who need to verify signatures.
Once the Payment Request Checklist is verified, finance creates a payment voucher in Atlas.
Step 4: Payment is processed (Flowchart ref. 4.1-4.7)
1 The UNFPA head of unit refers to the representative, division director, regional or subregional director, country director or the Chief of
Operations (or the delegated officer), as appropriate.
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Atlas completes an automatic three-way match between the purchase order, vendor invoice, and
receipt and a budget check to ensure availability of funds.
Once the three-way matching process is completed in Atlas, the voucher is picked up in the
payment cycle and UNDP is responsible for the payment disbursement (UNDP Treasury cycle).
This process does not require intervention by UNFPA.
If there are issues identified in Atlas, they are flagged for resolution by the requesting unit and, if
needed, finance may manually modify the voucher schedule payment date in Atlas.
B. How to process a non-purchase order payment
Completing non-purchase order based payments essentially follows the same procedures as
purchase order based payments with the addition of step 4 below requiring the manual approval of
a payment voucher.
Step 1: Verify details of invoice
Step 2: Confirm receipt and complete Payment Request Checklist
Step 3: Review Payment Request Checklist, create payment voucher
Step 4: Approve payment voucher
Step 5: Payment is processed
Step 1: Verify details of invoice and/or supporting documentation (Flowchart ref. 1.1)
The finance or administrative focal point in the requesting unit must ensure that what has been
delivered was actually ordered otherwise there is risk of payment for goods or services that were
not ordered in the first place.
The finance or administrative focal point must confirm the accuracy of the invoice.
Step 2: Confirm receipt and complete Payment Request Checklist (Flowchart ref. 2.1-2.3)
The finance or administrative focal point in the requesting unit must confirm that goods or services
have been physically received.
In order for the payment to be processed, the finance or administrative focal point must complete
Payment Request Checklist in Annex 1 and the manual approver must review and sign off on the
checklist and share it with finance.
Finance relies on this document as an approval for processing payment and therefore it important
that whoever is assigned this responsibility understands that (s)he is accountable.
Step 3: Review Payment Request Checklist, create payment voucher (Flowchart ref. 3.1–3.7)
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Finance now reviews the details provided in the Payment Request Checklist to ensure the
appropriate approvals have been obtained to allow the payment to be processed. As in the case of
purchase order based payments, it is important to review whether the account code to which the
purchase is being charged is reasonable and makes sense and; that the vendor name on the invoice
matches exactly the vendor profile in Atlas otherwise there is a risk that the wrong vendor will be
paid or that duplicate payments will be made. No payment should ever be made against a vendor
statement.
Finance must also confirm the manual approver signature in the Payment Request Checklist
matches the signature of a designated approver in the ‘Signature Control’ document or authorized
approver in the field.
If any issues arise, the supporting documentation must be returned to the requesting unit for
resolution otherwise, a ‘payment voucher’ is created in Atlas.
Step 4: Approve payment voucher (Flowchart ref. 4.1–4.4)
Approving the payment voucher is the one additional step that must take place in order to process
a non-purchase order based payment because, unlike purchase order based payments, approval of
the payment voucher is not automated.
The Atlas approver which at headquarters is in finance and in the field may be finance or
programme staff must review the Payment Request Checklist and approve the payment voucher if
(s)he is comfortable with the supporting documentation and related approvals for the purchase.
When the Atlas approver approves an invoice for payment, he/she is confirming that payment for
funds has been authorized based on his/her review of supporting documents.
If the Atlas approver cannot approve the payment voucher for whatever reason, the supporting
documentation is returned to finance for resolution.
Step 5: Payment is processed (Flowchart ref. 5.1–5.4)
Because this is a non-purchase order based payment, a budget check needs to be completed
manually by finance to confirm funds are available to make the payment. If issues such as
insufficient funds are identified, finance must coordinate with the requesting unit to resolve the
issue and, if needed, manually modify the voucher schedule payment date in Atlas.
When there are insufficient funds to process a payment this causes delays in payment processing
and compromises UNFPA’s relationship with its vendors and suppliers. Therefore it is important
business units to set up realistic budgets at the beginning of the year and frequently monitor those
budgets as payments are processed.
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Once the budget check process is completed, voucher awaits pick up in the payment cycle and
UNDP is responsible for the (UNDP Treasury cycle). This is an automated process not requiring
intervention by UNFPA.
IV. Other
A. Segregation of duties
There must be an appropriate segregation of functional responsibilities to ensure appropriate
financial controls from the initiation of a financial commitment up to its actual payment.
The Policy for Atlas User Profiles and Directory Application outlines the various segregation of
duties for profiles in Atlas each office must adhere to.
B. Monitoring accounts payables
Monitoring accounts payable is an important part of the overall financial process and should be
done regularly. Staff responsible for payments both at headquarters and the field should ensure
that accounts payable remain current, outstanding payments are regularly reviewed and that
payments do not go beyond the payment terms stipulated with vendors. The Atlas Data Quality
Dashboard facilitates this monitoring.
C. How to properly file accounts payable documentation
Proper filing of accounts payable documentation is not only important for audit purposes, but is
also essential for allowing UNFPA to maintain and quickly access documentation when required.
Each business unit is responsible for maintaining proper records that are well organized, safe, and
easy to understand.
Specifically, it is important to file documentation in a manner that permits tracing of payments
back to their supporting documentation in a logical and secure manner. Refer to the Document
Retention Schedules policy for more information.
D. Value added tax accounting and coding
In certain countries, UNFPA is charged value added tax for the purchases it makes. However, this
tax is usually refundable and should be accounted for in a consistent and singular manner within
UNFPA. Information on how to deal with VAT is outlined in the VAT Guidance Note and the
VAT Guidance Note: Reconciliation Template.
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E. Payments process
All units should use electronic funds transfer (EFT) to process payments when possible. Cheques
should only be used where EFT is not possible. Payments are picked by the payment cycle and
processed by UNDP treasury which is responsible for the distribution of cheque payments to
vendors once picked up by the pay cycle. This is function is illustrated in the final step of the
flowcharts for both non-purchase order and purchase order payment.
F. Currency of payments
With the exception of headquarters locations, goods and services should be paid for in the local
currency of the business unit.
The head of unit may exceptionally authorize payments in US Dollars for example if a) the banking
laws and regulations of the host government do not prohibit such payments; b) on the advice of
the Contracts Review Committee; and c) payment in US Dollars imposes no additional cost to
UNFPA. Occasionally, UNFPA may be guided by UNDP Treasury requirements imposed under
national restrictions.
For payments greater than $50,000 USD, the request should be sent to the Chief of Accounts for
approval prior to processing the payment voucher
VI. Risk Control Matrix
Control Risk Description Control Objective Control Activity Description Who performs
AP-1.0 Disbursements made
for goods or services
that were not
ordered.
All payments relate to
authorized purchases.
Match vendor invoice to Atlas
purchase order or supporting
documentation which provides
evidence of approval in the case
of non-PO transactions.
Finance or
Administrative
focal point in
requesting unit
AP-2.0 Payment for the
incorrect quantity or
non-delivery of
goods or services
All payments are made
for goods and services
that were delivered or
received.
For PO based payments,
complete receipt in Atlas,
followed by completion of
Payment Checklist. For non-PO
based payments, confirm
receipt and document in
Payment Request Checklist.
Finance or
Administrative
focal point in
requesting unit
AP-3.0 Disbursement of
funds is done
without appropriate
authorizations or
approvals.
All disbursements are
authorized.
Complete Payment Request
Checklist.
Finance or
Administrative
focal point in
requesting unit;
manual approver.
AP-4.0 Invoices are not
coded to the correct
account code
resulting in
inaccurate year end
reporting
All purchases are
coded to the correct
account code.
Finance reviews the Payment
Request Checklist.
Finance
AP-5.0 Payment is made to
an invalid vendor or
the same vendor is
paid more than once.
Every payment is
made to the correct
vendor and there are
no duplicate payments.
Finance reviews the Payment
Request Checklist.
Finance
AP-6.0 Payments are
authorized by staff
that do not have the
delegated authority
to authorize
payments.
All payments relate to
authorized purchases.
Match the signature of the
manual approver in the
Payment Request Checklist to the Signature Control document.
Finance
AP-7.0 Payments are made from fund codes that do not have sufficient funds resulting in delays in the payment process,
budget shortfalls or unavailability of funds in other areas.
Adequate funds are always available in the fund code used to pay
for goods and services.
Atlas performs budget check to
confirm availability of funds or
in the case of non-PO based
purchases finance confirms
availability of funds.
Atlas for PO
purchases and
Finance for nonPO purchases.
AP-8.0 Payment is made for
incorrect amount.
All payments are made
to the correct vendor
for the correct amount
for the correct
services.
Atlas completes automatic
three-way match between
purchase order, vendor invoice,
and receipt.
Atlas for PO
purchases and
Atlas approver
for non-PO
purchases.
Click here for Word version of Annexes
From: [Name, title of the authorized official and signature] Date:
To: [Name and title] Contact details:
CC: [Name and title]
In accordance with certification below, we hereby authorize release of payment to the payee below:
Total Amount: [Enter currency and amount]
Purpose of
Payment:
[Enter short description]
Payee:
(please provide as
much details as
possible)
Vendor ID:
Name:
Invoice number:
Due date:
Payment mode requested: [bank transfer / check]
For Bank Transfer only
Bank Name:
Account number:
Atlas
References:
(if applicable)
REQ ID: PO ID: Receipt ID:
Chart of Accounts (COA) (add lines as many lines as required)
Amount Account Fund Department Project ID Activity IP code
Certification: The authorized official hereby certifies:
that this payment has not previously been made;
that this payment is in accordance with the workplan;
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 unit;
that copies of invoices and other supporting documentation attached to this request
that account code and other COA elements are accurate
Annex I: Payment Request Checklist
Click here for Word version of Annexes
Purpose: This document is used by finance to verify that the signature presented on invoice or
payment related information authorizing release of payment matches the signature of an
authorized approver.
Division/Branch/Unit:
Approver 1 Name: Role/Title: Signature:
Approver 2 Name: Role/Title: Signature:
Division/Branch/Unit:
Approver 1 Name: Role/Title: Signature:
Approver 2 Name: Role/Title: Signature:
Division/Branch/Unit:
Approver 1 Name: Role/Title: Signature:
Approver 2 Name: Role/Title: Signature:
Division/Branch/Unit:
Approver 1 Name: Role/Title: Signature:
Approver 2 Name: Role/Title: Signature:
