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Progress Update/Disbursement Request

The Progress Update/Disbursement Request (PU/DR) provides the following:

  • Progress report on the latest completed period of programme implementation
  • Request for funds for the next/following execution and buffer period
  • An update on the programmatic and financial progress of a Global Fund-supported grant
  • An update on fulfilment of conditions, management actions and other requirements
  • The basis for the Global Fund’s annual funding decision by linking historical and expected programme performance with the level of financing to be provided to the Principal Recipient (PR)

The PU/DR template can be found at Global Fund Guidelines: Templates>Finance and Audit>Progress Update and Disbursement Request Excel Template.

The PU/DR consists of six sections/tabs:

1. Principal Recipient Financial Information

  1. PR Cash Reconciliation:
    Provides information on:
    • PR’s cash position based on:
      • Grant income – All income received under the grant
      • Grant cash outflows – Expenditure on cash basis
      • Reconciling adjustments
    • Total cash balances – end of reporting period
    • Principal Recipient commitments and other obligations
    PR expenditure for purposes of the cash reconciliation should include only payments (cash outflow including prepayments) regardless of when goods or services are received/delivered.
    Cash balances should include amounts held by the PR (or on behalf of the PR), including any grant funds held with fiduciary agents.
  2. PR Bank Statement Balance (UNDP provides the Global Fund Cash Balance Report in place of the bank statement) and Cash In Transit
  3. Principal Recipient Ineligible Transactions
    Obtained from:
    • PR review and verifications of Sub-recipient (SR) reports
    • Global Fund Performance Letters
    • PR and SR Audits

2. Sub-Recipient Cash Reconciliation

The SR cash reconciliation statement provides the reconciliation of funds provided to SRs at a given progress update period end date.

SR open advances are defined as disbursements made to SRs and other SR income less SR expenditures validated and recorded by the PR in its records as fully liquidated amounts (i.e. recognized officially as SR expenditure by the PR in its own records).

This section is not mandatory but is provided at the request of the Global Fund. 

3. Principal Recipient Budget Variance and Funding Absorption Analysis

This report provides a summary of key financial data for variance and funding absorption analysis for the grant through the period of the progress update, including:

  • an update on the PR’s spending vis-à-vis the budget, both for the period covered by the progress update and on a cumulative basis from the beginning of the implementation period
  • disaggregation of the reported budget and expenditure amounts for “Principal Recipient’s total expenditures (including any direct-disbursements to third-parties)” and “disbursements to Sub-Recipients”
  • disaggregation of “Health Products - Pharmaceutical Products” and “Health Products – Non Pharmaceuticals & Equipment”

For detailed guidance refer to Lessons Learnt – Guidance to UNDP COs Information on Budget and Expenditure Variance Analysis for PU/DR Reporting (Information Note on Budget and Expenditure Variance Analysis - Finance Clinic 10).

4. Annual Financial Reporting

Annual Financial Reporting (AFR) covers in-country expenditures and variance analysis against the approved activity plan and funding for the PR and SR, reported for the current grant cycle year and cumulatively from the beginning of the implementation period.

The financial information reported should include the approved budgets, expenditures and variance analysis by: (a) cost grouping, (b) modules and interventions, and (c) implementers (PRs and SRs).

For AFR preparation, PRs will use the modified cash basis of accounting (limited to the following):

  • Expenses are recorded and included when obligations are incurred (includes expenses as per Atlas General Ledger (GL)/Global Fund Financial Reporting (GFFR) plus full asset cost less depreciation plus inventory)
  • Annual depreciation expenses are not included and equipment acquired during the year is expensed fully in the year of acquisition
  • Full cost of equipment is included in the year of acquisition
  • SR advances and prepayments are not included in the AFR

The following exchange gain/losses are included in the AFR:

  • Realized exchange gain/loss –due to difference in UNORE between the dates of the voucher and date of payment
  • Unrealized exchange gain/loss – translation of US$ cash balances in Atlas into Euro grant currency

The exchange gains /losses are reported in the AFR as follows:

  • Cost Grouping – 11.0 Indirect and Overhead Costs
  • Module – Intervention: Programme Management – Grant Management
  • Implementing Entity – UNDP

5. Annual Cash Forecast

The Annual Cash Forecast provides the annual cash expenditure forecast for the period immediately following the period covered by the progress update (as well as for an extra cash “buffer” period of up to three months). The forecast information reported should include activities in the approved budgets required for the payment of goods and services for the next 12 months including the buffer period.

The forecast should be provided by cost grouping (at minimum) and by (a) modules - interventions; and (b) implementers (PRs and SRs) upon the request of the Country Coordinating Mechanism (CCM) or if readily available.

The forecast should include new activities to be implemented (new contracts/procurement for goods and services), open existing contracts (commitment and payables) from which payments will be made during the period covered by the forecast.

Refer to the Cash Forecasting tool template Feb 2016.

6. Funding Request

The Funding Request provides the disbursement amount requested by the PR based on the cash balance, the forecasted expenditure for the period immediately following the period covered by the progress update (as well as for an extra cash “buffer” period of up to six months) and cash “in transit” (if any).

For detailed guidance on PU/DR, refer to: