Treasury Services to Country Offices 14 July 2015

Treasury Tips for new RR’s Your authority for banking and treasury matters is delegated (See Chapter 25 of UNDP FR&R). This means you don’t have authority to choose a bank or open/close bank accounts. You do have authority to name bank signatories, so…be sure you know the ICF limitations. Get to know your banker, don’t rely exclusively on your operations staff. Know what’s in your office safe.

Key Treasury Services Develop Cash Management Guidelines, SOPs Monitor CO compliance (including ICF compliance) Promote and implement best practices Recommend UNORE Support countries in crisis Solve cash related prob lems

Function 1 – CO Liquidity Management Goal – provide adequate (not excess) liquidity to CO timely – no local investing is permitted without HQ authorization Means – CO self-funding and/or direct transfer from HQ Other source of liquidity – local currency contributions, support other UN agencies Analysis – annual imprest level review and reset; monthly bank balance review

Function 2 – Fraud Risk Management Goal – Reduce/eliminate potential monetary loss due to fraudulent activities Means – Daily review ‘ZBA’ cheque clearance exceptions vs. AP vouchers and payroll records in Atlas Analysis – Determine the causes (internal or external) Guidance – Help COs strengthen internal controls over cheque issuance to reduce exceptions Recovery – When necessary, claim funds from the responsible parties

Function 3 – Agency Service Clearing (SCA) Goal – To ensure sufficient balances in SCAs for COs to provide uninterrupted disbursement services for UN agencies Means – Daily Atlas data review; alert to agencies, and deposit application by GSSC for funds received Analysis – Annual review agency funding level; ensure efficient operation of SCAs UNJSPF – Retiree payments that can’t be made through banking channel UNFCU staff withdrawals – Locally recruited staff withdraw funds from their UNFCU bank accounts payable in local currency through UNDP offices. Agency transfers $$$ to UNDP HQ & sends disbursement requests to COs CMU applies the deposit, monitors balance & communicates to all parties as needed COs process agency disbursement requests & record them SCA Unit performs SCA account reconciliation and provides reports to agencies

Function 4 – Agency Payments/ Special Requests Goal – To settle obligations with agencies timely and accurately Means – AP vouchers Authorization – SCA Unit (for implementing agencies); Treasury (for local currency ‘purchases’ from agencies) Flexibility to respond to changing agency needs, ‘one-off’ requests Receipt of Government Contributions in the CO bank accounts on behalf of agencies

Function 5 – UNORE UN Operational Rate of Exchange Goal – To ensure UNORE reflects the reality of the local market Means – Collect data from COs, Atlas, and Bloomberg Analysis – Evaluate the data from various sources and recommend the UNORE to UN Treasury System update – Atlas upload of the published UNORE Frequency – monthly (mid-month if an exchange rate moves > 10%) UN Treasury site –

Function 6 – Portfolio Review Goal – To assess COs cash management practice, compliance with POPP Guidelines and ICF, and help implement changes as appropriate Detailed Individual CO Review – annually and on demand Regional Bureau Review – periodically Ongoing dialogue with RBx counterparts on special issues

Function 7 – Bank Account Management Goal – To ensure bank account structure and management align with FR & R and POPP Guidelines Analysis – Evaluate new account opening request and make recommendation to the Treasurer; analyze account activities to recommend closure of inactive accounts Signatory changes – Enforce document requirements, ICF compliance on separation of duties IBAN Implementation On payments - support on sanction and OFAC issues.

Function 8 – Bank Relationship Management Engage global bank and regional bank service providers Understand corporate objectives and footprints Evaluate new products for CO requirements or enhancements Coordinate implementation Address service issues Provide feedback on bank performance

Function 9 – Global Process Owner for Treasury and Revenue Monitor outstanding aged contributions, pending refunds to donors, non-standard agreements Monitor exceptions to policy in the use of cash (petty cash, project cash advances) Support technical solutions on B2B Monitor foreign exchange impacts (e.g., revaluation losses generated from country office bank balances)