1. UN Development System Guiding Principle National Ownership (Priorities) National leadership (Reliance on National system) National Capacity including utilization and strengthening of National System, Accountability, and Management for Results (Capacity development; improve capacity of partners to effectively manage aid; overall effectiveness) Development Results Framework Management Results Framework 1

2. UNFPA funds a UN agency to…. …provide goods from a private sector business; or specific services, (such as printing, design services, evaluation) from an NGO or a private sector business (Procurement) If IP contracts another entity, IP signs written agreement with contractee, according to IP rules and regulations UNFPA signs Contract for professional services with vendor Contract for professional services IP is UN AgencyUN Agency IP is UN AgencyUN Agency IP is GovernmentGovernment IP is GovernmentGovernment Sign LoU for CP 1LoU for CP IP’s (Government) & UNFPA’s Financial Management Procedures ApplyGovernment Government’s Procurement Procedures Apply for Procurement Components 2 IP’s (NGO) & UNFPA’s Financial Management Procedures ApplyNGO NGO’s Procurement Procedures Apply for Procurement Components 2 IP’s (UN) and UNFPA’s Financial Management Procedures Apply 4 UN Agency’s Procurement Procedures Apply for Procurement Components 4 UNFPA Procurement Procedures Apply Procurement Procedures UNFPA Programme and Financial Management Procedures Apply Programme Sign Basic Agreement with UN AgenciesBasic Agreement with UN Agencies UNFPA signs Basic Agreement with UN Agencies Basic Agreement with UN Agencies Sign LoU for GRP1LoU for GRP Global and Regional Programme (GRP) Country Programme (CP) IP is NGONGO (includes universities and intergovernmental agencies) IP is NGONGO (includes universities and intergovernmental agencies) IP is UNFPAUNFPA IP is UNFPAUNFPA Signs AWP with UNFPA (incl. proposal) …undertake ad-hoc/one time inter-agency activities, i.e., a workshop, document, World AIDS day support etc as part of a UNFPA AWP (which does NOT need to be signed by the other UN agency) 1 UNFPA Rep signs AWP Modalities for Financial Partnerships UNFPA signs MoU with NGO (grantee) 4 MoU “…strengthen the capacity of a non IP- NGO to undertake work related to UNFPA mandate” and are part of CPs/GRPs through a grant. This applies to NGOs only UNFPA Programme and Financial Management Procedures Apply Programme UNFPA funds another entity to… Signs AWP with UNFPA (incl. proposal) Sign LoU for CP1LoU for CP Register Implementing Partner 4 Max: $30,000 per entity per year for CP (signed by CO Representative), or $100,000 per entity per year for GRP (signed by Regional or HQ Director) 1 LoU is signed only once for the duration of the programme cycle 2 When not possible or desirable for entity to apply its own procurement procedures, procurement components can be transferred back to UNFPA for implementation. 3 UN Agencies do not fill out FACE forms

3. Cash Transfer Modalities 4 cash transfer modalities within the frame work of programme content and operational agreement described in the CPAP  Direct Cash transfer to IP for the obligations and expenditures to be made by term in support of activities agreed in the AWP  Direct Payment to vendor and other 3 rd parties, for the obligations incurred by IP in support of activities agreed in the AWP  Reimbursement to IP for obligations made and expenditures incurred by them in support of activities agreed in AWPs  Direct agency implementation through which the Agency makes obligations and incurs expenditure in support of activities agreed in AWPs.

4. Cash Transfer Procedure All agencies providing cash transfers under any of the modalities (direct cash transfer, direct payment, reimbursement, direct agency implementation) The Basic elements of cash transfer procedures  Basis for disbursement AWPs & request by IP part of FACE form  Periodicity of disbursement:  Reporting of cash utilization  Assurance over accuracy of reporting (spot checks, frequent and in- depth programmatic monitoring activities, more frequent audit). 4 TypePeriodicity of DisbursementReporting Direct cash transferQuarterlyFACE Direct payment to VendorActivity based (request signed by designated officialFACE Reimbursement of expensesActivity BasedFACE Direct Agency ImplementationN/ABy Agency

5. Managing Risk There is a risk that a cash transferred to IP may not be used in accordance with the agreement between the Agencies and IP. The level of risk can be different for each IP. That depends on the Agencies effectively and efficiently mange this risk. Some of the elements considered are the IP system of Accounting, Reporting, Auditing, and Internal controls. The overall risk rating for management of cash transfer is rated low, if the IP system: Is considered capable of correctly recording all transactions and balances Supports the preparation of regular and reliable financial statement Safeguards the entity’s assets And is subject to acceptable auditing arrangements 5