Umoja Presentation to OAH

Umoja Presentation to OAH
Grants Management Functionality 17 December 2012

Content 1. Introduction to Umoja - What is Umoja?
- Deployment Approach - Governance - What is in Foundation 2. Grants Management Umoja Solution - Grantee Management Module - GM Master Data - Grant Budgeting - GM Grant Budget Validity Periods - Time Slices - Grant Availability Check Ledger - Indirect Cost Calculation - Grants Management reporting 3. Next steps 4. Recap, Q&A Umoja Presentation to OAH - Grants Management Functionality

What is Umoja? is an administrative reform initiative designed to help the United Nations operate more effectively by integrating and streamlining business processes that manage financial, human and physical resources within a single global solution for the entire Secretariat. Umoja Presentation to OAH - Grants Management Functionality

Umoja Overview Project – Umoja System – SAP
Umoja is an administrative reform initiative that will provide the United Nations with modernized business processes and an Enterprise Resource Planning (ERP) system. System – SAP SAP Enterprise Resource Planning (ERP) 6.0 is the system that is being implemented by Umoja. It will replace some UN systems and will be connected with others in order to share information. SAP will provide a financially integrated and robust centralized system. SAP stands for Systems, Applications and Products in Data Processing. Umoja Presentation to OAH - Grants Management Functionality

Deployment Approach To accelerate progress, Umoja functionality will deployed as follows: Umoja Foundation – Deployment: 2013 Essential to support IPSAS requirements Functionality to be delivered: finance (funds management and financial accounting), supply chain (real estate, plant maintenance, logistics execution, and procurement), project management, and sales & distribution (third-party procurement services and billing) Umoja Extension 1 – Deployment: 2014 Functionality to be delivered: organizational and position management, personnel administration, entitlements, benefits, time management, payroll, travel initiation, travel expenses, and on-line booking Umoja Extension 2 – Deployment: 2016 (TBC) The rest of the processes to complete full scope: budget formulation, force planning, programme management, supply chain planning, warehouse management, conference and event management, full grants management, and commercial activities This approach enables the Organization to mitigate delay, absorb change at a tolerable rate, and address some of the risks associated with deploying a comprehensive solution in a global organization. Umoja Presentation to OAH - Grants Management Functionality

Umoja Implementation Schedule
Umoja Presentation to OAH - Grants Management Functionality

Umoja Deployment Schedule & Clusters

Umoja Governance Structure

Key elements of the governance structure
The United Nations Management Committee is responsible for considering internal reform and management-related issues requiring strategic direction from the Secretary- General. It receives quarterly updates from Umoja, with a particular focus on monitoring the interdependencies of the Umoja and IPSAS implementation strategies. The Umoja Steering Committee provides leadership and strategic guidance to the Umoja initiative, and is chaired by the USG of the Department of Management Yukio Takasu. The Committee meets monthly. The Change Advisory Board assists in addressing and monitoring any proposed changes impacting the Umoja project’s scope, schedule, deliverables and costs. It provides advice and recommendation of actions to be taken to the Umoja Steering Committee for approval. The five Process Owners are the principal change agents for their end-to-end, cross- functional processes, regardless of which functional area performs each transaction. They are the ultimate authority across the different UN Secretariat entities for the processes they lead. The Umoja team is responsible for the day-to-day planning and execution of the project. Umoja Presentation to OAH - Grants Management Functionality

Umoja Sponsors Secretary-General, Ban Ki-moon Project Owner
Yukio Takasu, Under-Secretary-General (USG), Department of Management Steering Committee Yukio Takasu (Chair), USG, Dept of Management Susanna Malcorra, Chef de Cabinet Ameerah Haq, USG, Dept of Field Support Kim Won Soo, ASG, Change Implementation Team Catherine Pollard, ASG, Office of Human Resources Management Gina Casar, ASG, Office of Programme Planning Budgets and Accounts Warren Sach, ASG, Office of Central Support Services Franz Baumann, ASG, Dept of General Assembly and Conference Mgmt Dennis Thatchachaiwalit, Director of Management, UN Office at Vienna Craig Boyd, Logistics Support Division, Department of Field Support ASG, Chief Information Technology Officer (TBD) Umoja Presentation to OAH - Grants Management Functionality

Umoja Process Owners Gina Casar, ASG, Office of Programme Planning Budgets and Accounts Warren Sach, ASG, Office of Central Support Services Craig Boyd, Director, Department of Field Support (DFS) Catherine Pollard, ASG, Office of Human Resources Management Franz Baumann, ASG, Dept of General Assembly and Conference Management Umoja Presentation to OAH - Grants Management Functionality

Umoja SAP Solution Overview – Umoja Foundation
Supply Chain Central Support Services Finance & Programme Management Financials (FI) Controlling (CO) Controlling Sales & Distribution (SD) Funds Management (FM) Materials Management (MM) Real Estate (RE-FX) SAP ERP Modules Project Systems (PS) Grants Management (GM) Supplier Relationship Management (SRM) Plant Maintenance (PM) Facilitates management and external reporting of legally required financial information and documents Immediately after data is entered, the system displays information on updated accounts, account totals, and balances Allows Umoja to measure its flow of costs and revenue and is used for internal management and control of costs Tracks spending against budgeted programs and project structure Helps record customer sales and ship products to customers – also known as order fulfillment Helps optimize all the tasks and activities in sales, delivery and billing – includes pricing and addresses for customers Provides ability to budget, monitor, and control Commitment, Obligations, and Expenditures; reduce available budget as Purchase Requisitions and/or Purchase Orders are created; and prevent budget overruns by causing hard stops when funds are depleted Supports the procurement and inventory functions of day-to-day business operations (e.g., purchasing, inventory management) Master data is maintained Manages supplier contracts for procurement Creates more transparency across UN property portfolio and in investment decisions Saves money on expense leases and increases revenue from income leases Manages inspection, preventative maintenance, and repair of equipment SAP Descriptions Umoja Presentation to OAH - Grants Management Functionality

Process Overview & SAP – Umoja Foundation
Cost & Management Accounting Accounting for Specific Events and Activities - Internal Orders Overhead Accounting - Cost Centre Accounting Financial Accounting Accounts Payable Accounts Receivable Asset Accounting General Ledger Taxes and Insurance Financial Management Budget Implementation Grants Management FM FI-AR GM FI & CO FI-AP FI-GL Services to the Public & Staff Cash Management & Treasury Sales (third-party procurement services and billing customers) Bank Management Cash and Liquidity Management Investment Accounting Treasury and Risk Management – Investments SD Project Management Project Initiation Project Planning Project Execution and Performance Monitoring FI-TR Source to Acquire PS Requisition to Purchase Order Low Value Acquisition Contract Management SRM Facilities Management Employ to Dispose Real Estate Administration Real Estate Planning Receive to Distribute Set Assembly and Execution Equipment Assignment and Management Equipment Maintenance and Operations Decommission and Disposal RE-FX Inbound Processing Outbound Processing Warehouse and Storage MM PM Human Resources will be deployed in Umoja Extension Umoja Presentation to OAH - Grants Management Functionality

Grants Management Umoja Solution

Overview – Grants Management Umoja Solution
Summary of Umoja Scope: Grants Management Umoja Grantee Management Module Grants Management Master Data Fund Sponsor Grant Grant Type in Umoja Solution Grant Frameworks Grant Life Cycle Sponsored Program Sponsored Class - Grant Budgeting - Grant Budget Validity Period – Time Slices - Grant AVC Rules - Reporting Umoja Presentation to OAH - Grants Management Functionality 17

Summary of Umoja Scope: Grants Management
Umoja Foundation Grantee Management solution Functionality: Grant Status Management – Tracking throughout the life of the Grant from application to the closing Grant Budget (Unreleased and Released) Financial postings resulting from integration with other modules Financial reports to Donors Tracking and reporting of the Expenditure Reports submitted by Implementing Partners Possibility to attached scanned agreement to the Grant Umoja Extension SAP Fund Raising Module Functionality: Resource Mobilization Donor proposal/agreement management Donor Profile SAP Grantor Management Module Application process and agreements with Grantees Reporting from Grantees Grantee Profile Umoja Presentation to OAH - Grants Management Functionality

Umoja Grantee Management Solution Functionality
Provide separate views for the financial transactions of the UN and the Sponsor (Donor) Relate sponsor requirements to the financial structures of the UN Budget internal and external funding sources Accommodate funds availability checking for budget items Control postings Accommodate funding period differences between the UN and sponsors Provide integrated billing solutions Calculate indirect costs ( overhead costs ) Assign responsibilities (limited in Foundation) Provide authorizations Umoja Presentation to OCHA - Grants Management Functionality

New Concepts: Umoja Grants Management Master Data Objects

New Concepts - Grants Management Objects
Fund Sponsor Grant Sponsored Program Sponsored Class Umoja Presentation to OAH - Grants Management Functionality

Fund Fund - is: a separate and distinct accounting object
containing a self-balancing set of accounts used to identify source and use of funding from voluntary contributions. It is established for the purpose of financing wholly or in part the cost of programme and project activities consistent with the Organization’s aims and policies. Umoja Presentation to OAH - Grants Management Functionality 22

Sponsor A Sponsor: a Donor in UN terminology,
is a government, institution or individual that provides funding to a grantee organization, in this case, the UN. Umoja Presentation to OAH - Grants Management Functionality

Grant – Details and Examples

Grant Grant A Grant is an object that is used to maintain the terms and conditions of the Grantor’s contribution. In cases where the UN is a Grantee, that is the UN receives contributions from Donors, the Grant represents the Donor’s Agreement. In cases where the UN is a Grantor, that is the UN gives money to an Implementing Partner, the Grant represents the Funding Agreement. Grant is a “central” piece of the Grants Management which ties together all the Grants Management Master Data Objects, e.g. Fund, Sponsor, Sponsored Program, Sponsored Classes, Grant Budget Rules. Different level of information is recorded on the Grant at a different stage of the Life Cycle of the Grant Umoja Presentation to OAH - Grants Management Functionality

Grant: General Tab Umoja Presentation to OAH - Grants Management Functionality 26

Grant: Dimensions Tab Umoja Presentation to OAH - Grants Management Functionality 27

Grants: Terms and Conditions for Donor Agreement
Umoja Presentation to OAH - Grants Management Functionality 28

Grant Types The Grant Type is a key master data element that allows management of Grants to meet both the Donor’s requirements and the financial recording and reporting requirements of the UN. Grant Type is a customizable feature, therefore the UN can create as many Grant Types as needed to classify and describe UN Grants according to business requirements. Grant type is used to define Grant’s controls and behavior. Once the Grant is saved the Grant Type can not be changed. In Umoja Solutions there are four types of Grant: Simple Grant Resource Mobilization Grant Main Implementation Grant, and Passthrough Grant Umoja Presentation to OAH - Grants Management Functionality

Grant Object in Umoja – Grants Frameworks
Why four Grant Types? – Dictated by different Donor requirements to reporting Grants Framework I Donor requires to report on Contribution Grants Framework II Donor requires reporting on Pooled Expenditures Umoja Presentation to OAH - Grants Management Functionality

Grant Object in Umoja: Framework I: Donor requires reporting on the Contribution
Agreement Simple Grant A Passthrough Grant Passthrough Grant -1 Relationship Simple : Passthrough 1 : N Incoming Cash Posted Expenditures and Payments Posted Refunds of Cash Posted Refunds by Implementing Partners Umoja Presentation to OAH - Grants Management Functionality

Grant Object in Umoja: Framework II–Donor requires the reporting on “pooled” expenditures
Contribution Agreement Donor 1 Agreement 1 Main Implementation Grant - 1 RMG2 (D3) RMG2 (D2) RMG1 (D1) Passthrough Grant Passthrough Grant -1 Relationship MIG : Passthrough 1 : N RMG : MIG N : 1 Expenditures and Payments Posted Incoming Cash Posted Refunds Posted Expenditures and Payments Posted Refunds by Implementing Partners Umoja Presentation to OAH - Grants Management Functionality

Framework I - Determination criteria:
Donor requires reporting on the contribution. Donor is providing voluntary contribution for a specific project, an activity on the project, group of projects, non-project related activity, material, service, program/subprogram objective, etc. The purpose of the contributions is reflected in Donor Agreement. Maximum Donor control and restrictions and Minimum discretionary authority for the UN. Programme Support Cost is unique to the donor agreement. The Approving Budget officer based on the reports ensures that the grant budget is released based on cash availability. Return of Interest and unspent balance could be required by the donor in the Donor Agreement. Umoja Presentation to OAH - Grants Management Functionality

Framework II - Determination criteria:
Donor requires reporting on pooled expenditures. Donor does not require reporting on his individual contribution separately. Donor is providing voluntary contribution for a specific project, group of projects (thematic grouping of projects), on-going activity, programme/sub-program objective, etc. reflected either in Donor Agreement or Note Verbal or Pledge Letter. Minimum control from Donors – Maximum discretionary authority for UN. Program Support Costs rate should be consistent for all participating donors. Resource Mobilization Grants do not have budget. Main Implementation Grant has a budget. The Approving Budget officer based on the reports ensures that the budget is released based on cash availability. Interests earned and / or unspent balances can be carried forward to a new organization and budget period (in case of the on-going activity). Interests and unspent balance will have the consistent treatment for all participating donors. Umoja Presentation to OAH - Grants Management Functionality

Grant Execution – UN Execution
Business Scenario Description Umoja Solution UN Execution Direct Expenses to the project Any expense from procurement, travel, payroll etc. charged to Simple or Main Implementation Grant Umoja Presentation to OAH - Grants Management Functionality

Grant Execution – UN Execution: Grants-Out (Outright Grants)
Business Scenario Description Umoja Solution Grants-out (outright grants) to end beneficiary. Outright grant with payment to the end beneficiary and reporting by nature of expenditure is not required; the full amount shall be recorded as an expense at the point of signature/confirmation of the arrangement. End Beneficiary is an entity/person that does not charged any administrative costs (overheads). PO and payment against the PO at the time of signing the funding agreement to the end beneficiary, charged to Simple or Main Implementation Grant Umoja Presentation to OAH - Grants Management Functionality 36

Grant Execution – UN Execution with Implementing Partner
Business Scenario Description Umoja Solution UN execution with Implementing Partners (e.g. UN agencies and NGOs) UN transfers the portion of the contribution to the Implementing Partner(s) through issuing the advances. The timing of expense recognition should be based on delivery as evidenced in the reports from the implementing partners. PO and down payment (advance) to IPs from Passthrough Grant. Upon receipt of expenditure reports, expenditures will be recorded against the PO and offset the advance. Note: Both UNFIP and CERF will follow this approach under IPSAS. Umoja Presentation to OAH - Grants Management Functionality

Grant Life Cycle for Simple and Resource Grant
Initial Application Award Closing Closed Cancelled In-Process Approved by Donor Rejected by UN Operational Suspended Financial End 2 3 1 4 5 Ready for Closing to Close Umoja Presentation to OAH - Grants Management Functionality

Grant Life Cycle for Main Implementation Grant
Initial Award Closing Closed Cancelled Operational Suspended Financial 2 1 3 4 Ready for Closing to Close Umoja Presentation to OAH - Grants Management Functionality

Grant Life Cycle - Passthrough Grant Status Management
Initial Application Award Closing Closed Cancelled In-Process Approved by IP Rejected by Donor by UN Operational Suspended Financial End 2 3 1 4 5 Ready for Closing to Close Umoja Presentation to OAH - Grants Management Functionality

Grant Life Cycle - Change status to Application/ Approved By Donor

Sponsored Program – Details and Examples

Grants Management Master Data – Sponsored Program
A Sponsored Program identifies a program of the Sponsor. It identifies the purpose of the Sponsor’s contribution. Sponsored Program is a GM Master Data Object that is derived and cannot be manually entered. Sponsored Program can be created for a specific project, an activity on the project, a group of projects, non-project related activity, material, service, program/subprogram objective, associated experts and so on, according to the specific Donor requirements. Interpretation of the Donor Agreement will determine the Sponsored Program(s). Umoja Presentation to OAH - Grants Management Functionality

Sponsored Program in Umoja – Basic Data Tab

Sponsored Program in Umoja – Budget Transfer Tab

Sponsored Class – Details and Examples

Grants Management Master Data – Sponsored Class
a Master Data Object which is used to provide budgetary control and to support reporting to Donors based on their specific requirements records sponsor by revenue and expense classifications. Umoja Presentation to OAH - Grants Management Functionality

Sponsored Classes Umoja Solution – Example
Sponsored Class Description Income AS1-VC-CASH Contribution in Cash AS1-VC-GOODS VC Goods in Kind AS1-VC-SERVICES VC in Services AS1-INTEREST-INCOME Interest Income AS1-MISC-INCOME Misc income Expenditures AS1-STAFF-PERSONNEL Staff and other personnel cost AS1-SUPPL-COM-MATER Supply, Commodity, Material AS1-EQUIP-VEH-FURNIT Equip, Vehicles and Furniture AS1-CONTRACT-SERVICE Contractual Services AS1-TRAVEL Travel AS1-OPER-OTHER-COSTS Operating & Other Direct Cost AS1-GRANTS-OUT Grant Out Expenditure w/o PT AS1-TRANSFER-IP Transfers to IPs w/ PT PSC-EXP-UN PSC UN Umoja Presentation to OAH - Grants Management Functionality

Sponsored Class Umoja solution – Basic Data Tab

Grant Budgeting Umoja Presentation to OAH - Grants Management Functionality

Grant Budgeting Unreleased Grant Budget – amount of the agreement signed by the Donor but not yet available for consumption Released Grant Budget – based on cash received the budget is released for consumption (equivalent to “spending authority” document in IMIS) Grant Budget by combination of Fund Grant, Sponsored Program, Sponsored Class, Time Slice (unreleased Grant Budget) Grant Budget by combination of Fund Grant, Sponsored Program, Sponsored Class, Time Slice + Funds Management Dimensions such as Funded Program, Fund Centre, Functional Area, Commitment Item, Budget Period (released Grant Budget) Umoja Presentation to OAH - Grants Management Functionality

Grant Budgeting - Unreleased Budget document with PSC calculation posted successfully

Grant Budgeting - Released Budget Document is posted successfully

Time Slice - Definition

Grants Management Master Data – Time Slice
Time Slices for Grant Budget Validity Periods: are time slices to split the budget according to the sponsor’s rules exist for each release status: unreleased and released budget Purpose: consumption control and correct reporting to donor, e.g. Donor gives 200K for the first six months of the year and 300K for the second six months of the year and expect the reporting accordingly. identify consumable (i.e. released) budget amounts Splitting Rule = Life of the Grant Umoja Presentation to OAH - Grants Management Functionality

Grant: Budget Tab – Budget Validity Periods

Grant Availability Check (AVC)
Examples of the rules for availability check to choose per Grant. Grant amount is always AVC Fund Sponsored Program Sponsored Class Time Slice Rule 1 YES Rule 2 NO Rule 3 Rule 4 Umoja Presentation to OAH - Grants Management Functionality

Indirect cost (IDC) i.e. Program Support Cost posting
The Rules for IDC calculation are defined on the Grant record. UN has one rule = IDC is calculated on commitments plus expenditures. The Percentage for IDC calculation is defined for each Grant on the combination of Sponsored Program and Sponsored Class. It is also time bound. The Sponsored Classes are marked as IDC-relevant on the Grant Umoja Presentation to OAH - Grants Management Functionality

Reporting in the Grants Management Umoja Solution

Grants Management Umoja Solution: Reporting Approach
Umoja report strategy is being designed It is envisaged that the Umoja Grants Foundation solution will include: several standard reports provide by SAP “out-of-the-box” with the functionality to drill down to source documents approximately 10 additional managerial and financial reports to be developed using the SAP Business Intelligence (BI) tools It will be possible for experienced end-users / reporting analysts to design and develop additional reports tailored to specific needs of a particular “entity” Umoja Presentation to OAH - Grants Management Functionality

Reporting in Grants Management: Budget Compared to Commitment/Actuals: Selection - establishing criteria for report Umoja Presentation to OAH - Grants Management Functionality 61

Reporting in Grants Management: Budget Compared to Commitment/Actuals: Selection – results of the report Umoja Presentation to OAH - Grants Management Functionality 62

Reporting in Grants Management: Budget Compared to Commitment/Act
Reporting in Grants Management: Budget Compared to Commitment/Act.: Selection – results of the report continue Umoja Presentation to OAH - Grants Management Functionality 63

How to Learn More about Umoja

Join Umoja Online Umoja NET is a password-protected online portal for Umoja stakeholders found at All UN Staff members are welcome to join Most staff members have accounts, click here to activate yours Select “Forgot my password” Enter your UN address You’ll receive a temporary password and can log in right away! Umoja NET gives you access to: Dashboard: information on the status and progress of the project, up-to-date information on the solution, and access to process materials My Umoja: personalized view of Umoja information, including: Previous participation in Umoja Events Customized content Umoja Presentation to OAH - Grants Management Functionality

Learn More About Umoja For general information about Umoja visit the Umoja Website at: For general questions about upcoming events, your participation, or help with Umoja NET and your user account, please contact Umoja directly at Umoja Presentation to OAH - Grants Management Functionality

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