Project Closure

WebEx Session, 15 June 2015

IPAS Finance, SPMPG and FPG

Overview of Presentation

Update on Projects in Closure in UNOPS

Project Closure Tool / Process

Atlas Statuses

Roles and Responsibilities

How to Prevent Common Closure Issues

How to Overcome Closure Challenges

Update on Projects in Closure

Projects ended on or before 30 June 2014 but NOT yet closed

financially :

434
O On Going

Y - Closing

C Operationally
Closed

Z - Freeze

14

27

200

193

1 January 2016:
Agresso will be introduced so projects pending
closure is to be prioritized to avoid carrying them over
from Atlas.

Project Closure Process Operational Closure (PM/ECM)

Tools Project Closure Tool

a) Operational Closure Checklist

Complete the operational closure checklist
Upload the required documents
Change status of project to C in ATLAS

b) Initiate Financial Closure

Initiate financial closure and submit it to RFMO/IPAS
Upon initiating financial closure, an email is sent to
RFMO/IPAS to complete financial closure checklist.
Operationally Closed (C)

Please ensure that all POs are closed before

initiating financial closure

Project Closure Process Financial Closure (RFMO/FPG)

a) Financial Closure

Financial closure checklist

Review Balance sheet accounts
Prepare Financial Statement
Submit Financial Statement

b) Certify Final Financial Statement

Financially Freeze (Z)
Refund/write-off/Collection
Approve refund/write-off
Process/refund/write off

c) Final Closure
Request Financial Closure
Financially Closed (F)

Atlas Statuses

All transactions possible in project

Will appear in PCT once the end date has passed

All transactions possible in project

A project should be set at Y as soon as the
project is ready for closure

All Transactions possible in projects with Status

C EXCEPT for Requisitions, POs and Receipts

Z
(financial Freeze)
ONLY FPG CAN SET
STATUS AT Z

No transactions possible; project is inactive

Once a project is set at Z, it should remain in Z

F
(financially closed)
ONLY FPG CAN SET
STATUS AT F

No transactions possible; project is inactive

O
(on-going)
Y
(closing)
C
(operationally closed)

Roles and Responsibilities in Project Closure

Role

Responsibility

Engagement Authority

Formal authority from the ED to accept engagements; therefore

the EA role in project closure is authorization of operational
closure of projects

Project Manager

Operational closure
Changes Atlas status to Y and C
Proper handover to ECM

Engagement Closure
Manager (ECM)

RFMO

Complete financial closure checklist

Prepare project final financial statement
Verify and recommend for refund to FPG

FPG

Manage process from handover to financially closed

Make final adjustments to Project GL if requested by RFMO
Communication between UNOPS and client/funding source
Obtain clients acceptance of FFS
Good client relations
Archives files

Review balance sheet accounts

Certifies Final Financial Statement (FFS)
Change Atlas status to Z
Create AP Voucher in case of refund
Change Atlas status to F

How to Prevent Common

Closure Issues

Planning and Monitoring

Closure negotiations with the client/funding source must be carried out

during the start of a project and planned in advance:

START
a project

Negotiated

RUN
a project

Planned

CLOSE
a project

Implemented

If the right foundation is not in place closure can become a major liability
for the organization.

Closure Plan

Closure cost

Audit
requirements

Personnel
drawdown

Timing of asset
disposal

Financial close
down

Transfer of
archives

Reporting

Release of
resources

Release of
personnel

Completion of
Final narrative
report

Transfer of
documents to
OC/PC/Cluster

Issuance of
interim & final
financial report
to funding
source/client

Defects and
Liability
(infrastructure)

A closure plan is prepared as part

of subsequent stages and is approved
by the Project Board before
implementing the Final Stage.

The more included in the legal

agreement on closure during project
initiation, the easier it is to ensure that
product acceptance and closure
activities go smoothly.

Key considerations

Client Acceptance

Electronic Blue File

Client acceptance is an important

confirmation that a project or work
package is completed and the agreed
deliverables are delivered. Obtaining
this acceptance from the client for
both operational and financial closure
in the Final Stage of the project is a
must.

Ensure the EBF is up to date

Archive
Documents archives are in
good shape

Lessons Learned
Ensure the lessons learned
during life cycle of project are
documented and uploaded on
EBF

Asset Disposal
Asset disposal is a key element for close
down of any engagement and it
represents a serious risk to the
organization if not handled correctly

Common problems during project closure

Operational Closure
No objection on completion of
project activities

Financial Closure
Transactions in open period
Fees not applied correctly

Final narrative report

Transactions not posted to correct COAs

Assets not transferred or

Outstanding balance under advanced

properly documented / handover

accounts (VAT, operational advance, petty

documentation missing

cash)

POs not closed

Interest utilized without client permission

Project is overspent

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Project Closure Monitoring

Assign Engagement Closure Managers
Generate closure report from PCT to track progress and next action pending
PCT status (next action)
PM: change the status to final stage closing (Y) or extend the end date of project
PM: Operational closure checklist
RFMO: prepare financial statement
RFMO: financial closure checklist
FPG: certify financial statement
FPG: change the status of the project to financially frozen
PM: Request refund / write-off / collection
RFMO: Approve refund / write-off
FPG: Change project status to Operationally Closed (C) to allow processing of refund or reject the refund
request
FPG: Process refund / write off
PM: Request financial closure
Etc.

Remember to check the comments section in the PCT on progress

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How to Overcome Project

Closure Challenges

Project Closure Tool (PCT)

When will a project appear in the PCT?

When the status is set at Y or when the project end date in Atlas
has passed

Does PM need to send reminders to FPG and RFMO for next step
actions in closure?
No, FPG and RFMO receive notifications automatically

Can assigned users initiate financial closure / request refund or writeoff?

No, only the current PM of the project can do that

Project Closure Tool (PCT)

How do I change the PM in PCT?

You need to change the Atlas PM. Instructions can be found here or
you can contact SPMPG at projectmanagement@unops.org

Do I need to close admin projects through the PCT?

No, admin projects can be closed by contacting the Strategic Planning
and Reporting Specialist: Sven Eckert (SvenE@unops.org)

What if I have technical issues with the PCT?

Please get in touch with pct.support@unops.org

Client Refund / Final Financial Statement (FFS)

What do I do when Im not able to get client confirmation for a refund?

In case the client does not respond to the FFS, it is possible to proceed with the
closure if there has been enough attempts made to reach them. This would require
preparation of a detailed note to file with supporting documentation to be uploaded
in the PCT after which FPG should be requested to close the project.

It is recommended that UNOPS should try every option to reach the donor in
order to refund the surplus and all these efforts should be documented in
chronological order for audit purposes. So please keep track of all types of
communication with the client.

A clause has been included in the FFS cover letter that any surplus/deficit below
USD 2,500 will be absorbed by UNOPS if client does not come back within 3
months

Over-expenditure and Write-offs

What do I do in case a project is overspent?

1. Contact client: Retrieve the outstanding amount and explain the reason for overexpenditure

If it is not possible to retrieve outstanding amount after exhausting all

efforts:
2. Write-off (in accordance with OD 32)
< USD 2,500: write-off template to be filled by ECM, uploaded in the PCT along
with FFS showing the deficit (for internal use only). To be certified by FPG.
> USD 2,500: write-off template to be pre-cleared by RFMO before submitted to
HQCPC. Certified FFS required, showing the over-expenditure and certified by
FPG for internal use only

Defects Liability Period (infrastructure projects)

How to deal with projects with defects liability period?

Set the Atlas status at Y (all transactions are still possible in Y)
Complete the operational closure checklist to the extent possible
After defects liability period has ended:
Proceed with closure as normal (complete operational checklist, set
Atlas status at C, initiate financial closure etc.

Vendor bank details

The vendor banking details are not correct. What do I do?

Please ensure that bank details match information from Atlas and client
confirmation
In case of multiple bank accounts in Atlas, please ensure the bank
account for the refund is included in the client confirmation letter
If needed, please ask client to complete and return the Atlas vendor form
For issues related to vendor establishment, please contact:
vendor.approval@unops.org
Cheques can be issued

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Further Guidance and Templates

Guidance

Templates

Project closure tool

PCT User Manual

Financial closure of projects

FFS Cover Letter Template

Closing an engagement

Client confirmation and Bank

Closure plan

Negotiation on closure

Atlas vendor form

Engagement closure

Template request for write-off

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Final Financial Statement

Template

Account Details

THANK YOU
For any questions related to project closure, please contact:
Marianne PEDERSEN, SPMPG
MarianneP@unops.org
Faisal Jamal KHAN, FPG
FaisalK@unops.org
Ana TSIVTSIVADZE, IPAS Finance
AnaT@unops.org

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