Interest Revenue

Article 3(b) of the UNDP-Global Fund Grant Regulations states, “Any interest or other earnings on funds disbursed by the Global Fund to the Principal Recipient under this Agreement shall be used for Program purposes, unless the Global Fund agrees otherwise in writing.”   In this respect, Country Offices (COs) should seek approval from the Global Fund for the use of interest or any other earnings and to ensure that such income is used for agreed programme activities.

Interest generated on Global Fund resources is calculated by the Office of Financial Resource Management (OFRM) at year-end on a quarterly basis using quarterly interest rates. The interest revenue is posted to the respective Global Fund projects in Atlas in the current year at year-end under General Ledger account ‘53045’ (Allocated Interest Income) and Donor ‘00327’ (Global Fund). (Note: Any adjustment or transfer of interest in subsequent years is recorded through GL account 51035.)

Interest recordings can be identified using the Account Activity Analysis (AAA) and Cash Balance Report in Atlas. Interest earned for Global Fund projects must be reflected in the next Disbursement Request and Progress Update Report.

Interest earned in SR bank accounts is reported in the Funding Authorization and Certification of Expenditures (FACE) and recorded in Atlas in the miscellaneous income account 55090.