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Global Fund Processes

  1. The Principal Recipient (PR) negotiates an agreement with Global Fund, the donor, and incorporates a performance framework and summary budget. Once both parties agree, the Global Fund Grant Confirmation is signed.
  2. A designated Revenue Focal Point of UNDP Country Office (CO) will upload the signed face sheet of the active Global Fund Grant Confirmation, budget summary, performance framework and the first page (only) of the email from the Global Fund which has the Notification Letter attached to it thru UNall within 7 days of the last signature date. The Global Shared Service Centre (GSSC) will process this after ensuring that the correct Chart of Accounts information has been included in the Confirmation, as well as the total amount outstanding at the date of uploading the document.
  3. The GSSC will input the information from the Agreements into the Contracts Module where the accounting entries will be generated once the Letter of Notification has been received. Business units will be able to access reports with detailed information of all contracts created in the contract module and accounting entries processed.
  4. UNDP will submit a Progress Update/Disbursement Request (PU/DR) to the Global Fund to initiate the disbursement of funds.
  5. Once the PU/DR has been received and approved, a DR Notification Letter is received by UNDP from the Global Fund. This is immediately uploaded by the Revenue Focal Point in UNall for the GSSC to trigger the accounting entries in the Contract Module as follows:
    • DR Unbilled Accounts Receivables
    • CR Revenue
    • When the billing process starts based on the milestones achieved and the cash flow forecast, the following accounting entries will be triggered:
    • CR Unbilled Accounts Payable
    • DR Accounts Receivables
  6. Once the Notification of Grant Disbursement letter has been processed by the GSSC, they will send an email advising the CO of the Revenue Contract Reference number and the Accounts Receivable (AR) Item ID created. This information will be used by the GSSC when applying Global Fund disbursements.
  7. When the funds are received, cash is applied by Contribution Unit/Treasury and the accounting entries are as follows:
    • DR Cash/Bank
    • CR Cash Control
    • On application of the Funds to Accounts Receivable:
    • DR Cash Control Account
    • CR Accounts Receivable Once the GSSC has processed the disbursement, they will create a Contract Reference number that will be entered into the Deposit/Disbursement Information section of the DMS. This reference number can be used by the Country Offices to look up the AR item ID in the Contracts Module.
  8. Any amendments to agreements must be communicated to the GSSC as soon as possible. The amended agreement (e.g. Implementation Letters) must be uploaded to the DMS for the GSSC to update the Contracts Module and process any corresponding accounting entries.
  9. The following procedures should be adhered to at the end of each quarter:

    • Check that all Confirmations have been submitted in UNall .
    • Check that any amendments to Confirmation have been updated in the Contracts module by the GSSC.
    • Follow up with donors on outstanding amounts where applicable.
    • Ensure timely application of all unapplied deposits at year-end.
    • Review funds received in advance account and verify accuracy and completeness.

The country offices are advised to use the revenue management reports such as

UN PPM Revenue Contract Report

UN PPM Pending Event Report – all pending accounts receivables

UN Generate AR Invoices Report – all cash deposits received

UN PPM Project revenue and invoice Recon report

Practice Pointer

Although the Global Fund has procedures for direct payments to suppliers, these were primarily designed for the benefit of national entities that do not have the same international financial structures in place as UNDP. UNDP does NOT use the Global Fund’s direct payment procedures for payments to Sub-recipients (SRs) or suppliers. Should the Global Fund and/or Local Fund Agent (LFA) request this modality of payment, the request should be referred to the UNDP Global Fund Partnership Health Systems Team.

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