Welcome

UNOPS Finance Workshop November 4, 2008 Colombo

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Agenda

Welcome Role of Finance Disbursements / Payments Settlements Situation Analysis Bank Charges / Reconciliations Procurement Salaries & other HR Issues Atlas System Field Practical Problems

Joel Joel Chithra Rushdhi Joel Angelo Shankar Stanley & Kalani Chithra / Rushdhi Participants

Disbursements
Regular

Payments Advances

Operational Advance Supplier Staff

Advances

Operational Advances are meant to pay for pro(ject expenses incurred at the field offices Replenishment of operational Advances must be with in the established limit of the Cash Custodian Each request for Advances must be supported by: Cash Forecast, Cash and or Bank Book Extract Listing of All Outstanding advances given in the field Cash Count Sheet Bank Reconciliation Reconciliation of Funds Received and Settlements All the above documents to be certified by the Cash Custodian

Advances - Supplier
Can

only be made, If:

The Goods / Services are specialist in nature and is not provided by any one else. Is expressly stated at the time of quoting / bidding for goods / services by the supplier Payment of advance must have been expressly authorized in the Contractual document (Contract, Purchase Order)

Advances - Staff
Mainly

paid for:

authorized official Travel related expenses To purchase project related items, that have to be paid for in Cash (Eg: Purchase from Government Departments, etc Other project expenses authorized in writing by the Cash Custodian / Project Manager

PAYMENTS

Types of Payments
Payment

for Purchases Rental / Lease payments Progressive payments Payments to Staff Payments for Services rendered Petty Cash Payments

COMMON DOCUMENTS NEEDED FOR ALL TYPE OF PAYMENTS PO Payment

Original Payment Request to be signed by authorized person Original Atlas PO (Approved and Vendor signed) Atlas Receipt Original Payment Request to be signed by authorized person
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NO PO Payment

ADDITIONAL DOCUMENTS NEEDED FOR DIFFERENT TYPES OF PAYMENT

PAYMENT FOR PURCHASES

Original Invoice Original RIR Vendor Evaluation Table (Signed, dated) Quotations Purchase Requisition

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ADDITIONAL DOCUMENTS NEEDED FOR DIFFERENT TYPES OF PAYMENT

PAYMENT

FOR FUEL

Original Invoice from supplier Original Fuel coupons (with authorized signatures from fuel station and UNOPS) Original Contract agreement (if relevant) Vehicle log sheet(Vehicle No, date, no of liters filled and signature) Price Fluctuation to be supported in writing by the supplier as per the contract
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Rental / Lease Payments

Original Contract/Lease agreement Original Invoice(if relevant)

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Progressive Payments

Progressive payments are made mainly against Contracts for Civil works and will require : Copy of Contract Certificate of Payment Works/Services certification report and measurement sheets signed by the Contractor and UNOPS Copy of variation orders where relevant Final Completion certificate(For final payment only) No claim certificate certified by the Contractor(For final payment only)
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ADDITIONAL DOCUMENTS NEEDED FOR DIFFERENT TYPES OF PAYMENT

PAYMENT TO SUB-CONTRACTORS Advance Payment Copy of Contract An Invoice from client requesting payment (amount should be indicated) Advance Payment Guarantee Should be given in advance to get confirmation from the financial institution) Performance Guarantee(Should be given in advance to get confirmation from the financial institution)
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Payments to Staff
TRAVEL Related Payments

Original approved Travel Authorization Original F10 Form(Foreign mission) To claim on actual basis, original invoices and other relevant documents need to be submitted (Exceptional) Overseas Travel to be supported by copy of Ticket and Boarding Pass Credit Card charges are not reimburseable International Staff paid in Colombo. National Staff paid at Field Office
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Payments to Staff
ICA

Staff Salaries

Original Certificate of Payment duly completed, approved and authorized Original Time Sheets Original Leave Forms (Sick leave exceeding 2 days to supported by a medical certificate) Copy of Contract Agreement

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Payments for Services rendered MAINTENANCE / WAGES ETC.) Original Contract agreement (where relevant) Copy of Log sheet(E.g:Generator maintenance log, Time sheet, Vehicle Running Chart)

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Petty Cash

Meant to pay for expenses that are petty in nature Must not be used to circumvent procurement procedures Must not be used to purchase assets Single payment must not exceed US$100.00 or its equivalent Payments must be authorized by an authorized / approving officer.
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PRACTICAL ISSUES AND PROBLEMS IN DISBURSING PAYMENTS Vendor

Vendor / Bank details does not match with Atlas vendor profile No letters authorizing the collection of check by third parties

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PRACTICAL ISSUES AND PROBLEMS IN DISBURSING PAYMENTS

PAYMENT DOCUMENTS Invoice not addressed in the name of UNOPS Not in chronological order No date and validity period mentioned on quotations Qty, amount etc. stated in the invoice does not match the quotation/requisition Quotation / Evaluation does not match with requisition details. E-mail quotation does not contain company name, logo and or contact details
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PRACTICAL ISSUES AND PROBLEMS IN DISBURSING PAYMENTS

All

the documents provided should be legible and readable. When submitting copies of purchase requisition and quotations reference must be made to the original payment request or PO.

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PRACTICAL ISSUES AND PROBLEMS IN DISBURSING PAYMENTS contd..

RIR does not match the description/quantities in the invoice/requisition/quotation RIR does not reference vendor name and invoice no and Atlas PO no RIR does not have the sequential no RIR is not signed by the authorized person Vehicle Log Sheets are not properly filled (missing vehicle number, fuel filled, service, etc)

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Payments below US$2,500

Upto

US$100 US$100 and US$2,499

Original Invoice from Supplier or Vendor

Purchase Requisition 3 written Quotations Original Invoice from Supplier RIR

Between

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Monthly Submission
Bank

Reconciliation Statement Cash Book Extract Cash Forecast Fund Reconciliation Statement Advance Outstanding Listing All the above to be certified by the Cash Custodian
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Advances issued in Field

Contract

Payments Salary Advances Field Petty Cash Deposits The above records to be maintained separately and available on request

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Settlements contd..

Are supported by the following documentation

Request for purchase of goods / services must be approved in advance Have gone through a competitive bidding process and are substantiated by Quotes from the bidders Evaluation and basis of selection of supplier is documented Reasons for deviation are documented, approved by an authorized person and attached to the payment request. Invoice(s) are authentic, reflect the descriptions of items, quantities, amounts requested, arithmetically correct. RIR details match those with Requisition, Quotes and Invoices Name of Payee and on Invoice are same. All the above follow chronological sequence

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Settlements
Settlements

are disbursements made at the field office from the operational advance. Prior to making a disbursement, you must ensure the following :

That the payment requested is in accordance with the approved budget of the Donor

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Settlements contd..

All Payment Vouchers must be serially numbered Every Payment Voucher has been reviewed for accuracy of information against the attached supporting documentation and bears the names and signatures of approving and authorizing officials. Check issued against the payee Name, Signature, ID# and Date of person receiving the payment
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Settlements contd..
Payment

Vouchers for settlements must be despatched to Colombo Finance with the following Documents for posting settlements to ATLAS.

Disbursement Voucher Listing in Voucher Serial Order(must contain the following information; Date, Voucher Number, Payee Name, Description, Acount Code, Amount) Voucher Analysis by Account Code Electronic copy of above
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Settlements contd..

It is the responsibility of the Field Finance Staff is to ensure that all relevant supporting documentations are attached to payment vouchers prior to despatching same to Colmbo. Settlements can be sent to Colombo as frequently as required, but at minimum it should be once a month. Since settlements have an impact on future Advances that can be given it is imperative that they are submitted timely to avoid any cash crunch.
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Procurement / Logistics
Requisition

must be raised for purchases of goods / services and approved by the authorizing official. Minimum 3 Quotes must be called to ensure that procurement process is competitive and transparent. Evaluation and Recommendation of supplier selected
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Procurement / Logistics
Logistician

to raise RIR upon receipt of

Goods. RIR must be dated and serially numbered RIR Must reference PO Number, Name of Vendor, Invoice number, Description and Quantities of goods received. RIR must have the relevant signatures.

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Human Resources
Salary

Payments to Staff must be made only from Colombo Salary Advances, if any and authorized can be made from only Colombo

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Atlas Payment Process

Cheques written manually and EFTs uploaded to Bank Document Received & logged in Finance 8.30 9.00 AM 1.30 3.30 PM

Atlas Pay Cycle run at 3.00 PM

Documents Reviewed and entered to Atlas

Matching Process in New York

Atlas vouchers are Budget Checked

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Atlas Payment Issues

Problems: No Funds in the Budget results in Budget error Automated matching process runs in New York only once a day Match Exceptions are errors detected due to Vendor not in approved status Invalid PO Status, etc Pay Cycle / Matching Process either delayed or does not run due to system problems Wrong Banking Information for Vendor

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Atlas Payment Issues

Contingencies: Minimum 2 work days required to effect payments In case of other urgent payments, normal processing time will be longer

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Atlas Payment Issues

Constraints

Cheque number is system assigned Cheques / EFT Manually written and uploaded to Bank If receipient bank is not in the Electronic banking network, then this will be sent as a manual transfer from UNOPS bank which might take a minimum of 5 working days Availability of Signatories Local Bank Holidays including Saturdays Central Bank cut-off time for EFT payments

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