Chapter6 Section V

163
Expenses
V
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1 General Definition 3.12 Technical Approver

3.13 Payment Approver
2 Authority to Incur Expenses 3.14 Execute Payments and Pay Cycle
2.1 Fundamental Requirements
before Expending Resources 4 Management of Partnership
2.2 Control Over Expenditures Related Transactions
2.3 Administrative Expenses 4.1 Partnership Agreements
2.4 Operational Expenses 4.2 Expense Recognition
2.4.1 Staff Safety and Security 4.3 First Instalment and Accounts
Expenses Payable to Partners
2.5 Staff Expenses 4.4 Project Financial Reports (PFR)
2.6 Expenses on Behalf of other 4.5 UNHCR Contribution Towards
UNHCR Field Offices Partner Integrity Capacity and
Support Costs
3 Procure to Pay Process 4.6 Bank Accounts for Partnership
3.1 Controls in Procure to Pay Agreements
Process 4.7 Implementation and Liquidation
3.2 Delegation of Authority Plan Period
(DOAP) 4.8 Refund of Unspent Funds and
3.3 Requisition Receivables from Partners
3.4 Procurement Process 4.9 Goods and Property Procured
3.4.1 Formal Methods of Solicitation under Partnership Agreement
3.4.2 Non-formal Methods of Solicitation 4.10 Goods and Property Transferred
3.4.3 Summary of Solicitation Methods by UNHCR to Partners
3.4.4 Vendor Management and 4.11 Audit of UNHCR Funded Projects
Administration 4.12 Closure of Projects
3.4.5 Centralized Procurement 4.13 Project Control
3.5 Committees on Contracts 4.14 Management of Partnership
3.5.1 Scope of Committees on Contracts Related Issues - Key References
3.5.2 Regional Committee on Contracts
(RCC) 5 Financial Management of
3.5.3 Local Committee on Contracts (LCC)/ Cash-based Interventions
SUB-LCC 5.1 What are Cash-based
3.5.4 Roles And Responsibilities of Interventions?
Chairpersons of Committee on 5.2 Choice of Implementation
Contracts Methods
3.5.5 Roles And Responsibilities of 5.3 Direct Implementation -
Members of Committee on Contracts Physical Cash Distribution to
3.6 Purchase Orders Beneficiaries by UNHCR Staff
3.6.1 Fundamental Elements of 5.4 Direct Implementation through a
Contract Administration Financial Service Provider
3.6.2 Recording Agreements with 5.5 Implementation through
Partners
UN Agencies in MSRP 5.6 Common Arrangements
3.7 Receipt with other UN Agencies for
3.8 Po Vouchers CBIs Delivery
3.9 Po Vouchers – 3 Way Matching 5.7 MSRP for CBIs
3.10 Non-PO Vouchers 5.7.1 The CBIs Account and Item Codes
3.11 Non-PO Voucher Preparer 5.7.2 MSRP DOAP
5.7.3 Documentation
5.7.4 Reconciliations
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5.7.5 Year-end Procedures
V 6 Supplies And Consumables For

Beneficiaries
7 Travel
7.1 Travel on Official Business
7.2 Travel Entitlements of
Internationally Recruited
Consultants 16 Hospitality
7.3 Travel Entitlements for 16.1 Representational Allowance and Hospitality
Local Consultants Budgets
7.4 Travel Authorization and 16.2 Rates and Conditions of Reimbursement for
Travel Documents Hospitality
7.5 Travel Claims 16.3 Reimbursement Procedure
7.6 Travel by Private Car for 16.4 Special Hospitality
Official Business (Official Functions Protocol)
8 Temporary Assistance 17 Commercial Rental of Vehicles
9 Medical Insurance 18 Accomodation Equipment and

9.1 Medical Insurance Plan (MIP) Buildings
9.2 UN Staff Mutual Insurance
Society Against Sickness and 19 Advertising and Public
Accident (UNSMIS) Information Activities
10 Accumulated Annual Leave 20 Private Sector Partnerships

(PSP) Budget
11 Overtime
21 Bank Charges
12 Operating Expenses
12.1 Rental of Premises 22 Equipment and Office Supplies
12.2 Maintenance of Premises
12.3 Improvements to Premises 22.1 Computer and Communications
12.4 Maintenance of Furniture and Equipment
Office Equipment 22.2 Materials And Office Supplies
12.5 Repairs and Maintenance of 22.3 Security And Safety Equipment
Official Vehicles
12.6 Communication Services 23 Fuels And Lubricants
12.7 Office Equipment
12.8 Utilities 24 Individual Consultants and
Contractors
13 Contractual Services 24.1 Consultants
24.2 Individual Contractors
14 Vehicles
14.1 Vehicle Rental Charges 25 Other Expenses
14.2 Vehicle Rental Period 25.1 Bad Debt Expense
14.3 Accounting Procedures for 25.2 Training
Vehicles under Global Fleet 25.3 Foreign Exchange (Gains and
Management (GFM) Losses)
14.4 Purchase of Vehicles Outside the 25.4 Miscellaneous Expenses
GFM Programme
26 Cost Recovery
15 Insurance
15.1 Third Party Liability Vehicle Insurance
15.2 UNHCR Global Vehicle 27 Adjustment Vouchers
Insurance Scheme
15.3 Insurance Office Furniture
and Equipment
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UNHCR Financial Management Manual, Section V
SECTION V – EXPENSES
1 GENERAL DEFINITION
Expenses
Employee Payments to POs (goods Non-PO

Provisions
Benefits IPs and services) purchases
Expenses represent the consumption of resources, depletion of assets or the incurrence of

liabilities. In most cases, the delivery principle applies to the recognition of expenses, when
goods or services are received and come under the control of UNHCR. Refer to Section I, part
6.2 of this Manual for additional information on the Delivery Principle.
However, if a given specific transaction or event gives rise to an expense that does not fall
under the Delivery Principle, such an expense will be recorded at the time when a liability is
first recognized or increased or when an asset is being consumed. The following are examples
of expenses that do not fall under the delivery principle:
• Depreciation expense;
• Provisions;
• Allowances for doubtful accounts;
• Write-off of assets where no allowances have been previously recorded.
2 AUTHORITY TO INCUR EXPENSES

Budget Owners are responsible senior managers who have been given delegated authority to
manage resources (operations plans/budgets, positions, structures and operating level) as
regulated by the resource allocation framework. The Budget Owner remains individually and
solely responsible for all actions taken with respect to the resources under their delegated
authority. DSPR/ARBAS maintains operations plan budgets and operating levels in MSRP for
each operation. Confirmation from DSPR/ARBAS that the operating level for a given financial
period is available in MSRP will serve as authorisation to process detailed budgets, enabling
Budget Owners to commence implementation and exercise their delegated authorities.
For guidance on expenses on behalf of other UNHCR offices including headquarters, refer to
part 2.6 below.
Refer to Section I of the Manual for additional guidance on:
• Financial management;
• Financial accountability; and

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• Principles of financial management.

2.1 FUNDAMENTAL REQUIREMENTS BEFORE EXPENDING RESOURCES
Heads of Office and Budget Holders with authority to approve expenses must adhere to the
following criteria before authorizing expenses:
a) The expense is necessary for the operation and will contribute to the achievement of
the office’s objectives.
b) Budget is available. The expense can be accommodated within the approved ABOD or
Operations budget. The expense is within agreed earmarking.
c) Funds are available. Funds have already been allocated to the ABOD or Operations to
which the expense will be charged.
d) Accounting event. An event occurs which triggers a requirement to record expense
(e.g. accrual journal posted).
2.2 CONTROL OVER EXPENDITURES
Heads of Office must control expenses to ensure that they remain within the spending
authority.
The total of disbursements and unliquidated commitments must not at any time exceed the
obligation level in the ABOD or project budget.
Each disbursement must be debited to a valid expense chartfield combination.
A listing of valid codes has been incorporated into MSRP. A copy of the latest list of chartfield
combinations can be printed from the Chartfield Combination Guide on the Intranet.
The Country Financial Report (CFR) provides a summary of budgetary expenditures at country
level. Refer to Section I, part 13.3 of this Manual for information on the use of CFR as a
monitoring and control tool.
2.3 ADMINISTRATIVE EXPENSES
Heads of Office may authorize administrative expenses in accordance with the categories and
amounts of the ABOD, which comprises the administrative budget and the authority to
disburse cash up to an approved obligation level.
Administrative expenses include all goods, equipment and services necessary to support the
staff of UNHCR in the delivery of programmes and projects.
Heads of Office hold overall responsibility for the approval of administrative expenses. In most
offices, Admin/Finance Officers have delegated authority from Heads of Office to authorize
administrative expenses.
For additional information on the ABOD refer to Section VI, part 6 of this Manual.
2.4 OPERATIONAL EXPENSES
Operational Expenses correspond to the costs of goods and services provided to PoCs directly
by UNHCR or through partnership agreements.
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Heads of Office hold overall responsibility for the development and implementation of the
operations plans (project/programme budgets). They are also responsible for deciding the
implementation modalities, whether directly by UNHCR or through partnerships.
Expenses of an administrative support nature (ABOD) or a staff cost nature should not be
charged to, or classified as, operational expenses. For additional information on the
management and monitoring of operational expenses, see the UNHCR Programme Manual
(Chapter 4 of the UNHCR Manual).
2.4.1 STAFF SAFETY AND SECURITY EXPENSES
Country Offices are required to budget for resources for security and safety needs including
the purchase of equipment to achieve or maintain compliance with Security Risk Management
Measures including Residential Security Measures. The UNHCR Security Management Policy
and the UN Security Management System Framework outlines the requirement for security
costs to be appropriately budgeted for.
The security budget should cover security risk management (SRM) measures identified through
the SRM process for the designated areas in the country. Additional security measures required
for UNHCR premises and operations which may be determined through an ad-hoc SRM should
be budgeted for.
UNHCRs contribution to the locally cost shared security budget (LCSSB) should be factored in
as well as costs associated with residential security measures (RSM).
Staff Safety and Security expenses should be charged to specific budgetary allocations.
Examples of Staff Safety and Security related expenses are presented below with their
corresponding account descriptions:
a) General Operating Expenses:
• Guards and security escort services;

• Perimeter lighting.
b) General Operating Expense:
• Emergency water/food supplies;

• First aid and trauma kits;
• Fire extinguishers, alarms and smoke detection;
• Shatter-resistant film.
c) Assets:
• Armoured vehicles;
• Entrance control equipment;

• Escort vehicles;
• Bullet-proof vests, helmets;
• Vehicle tracking equipment.
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d) Improvements to Premises:
• Bunkers/safe rooms;
• Walls and fencing;

• Other security-related construction.
e) Seminars and Workshops:
• Security training.
f) Joint UN Activity contribution:
• Local security cost sharing.
Security equipment will have to be upgraded, maintained and or replaced on a regular basis.
Associated costs should also be included in the budget.
Both, the UNHCR’s Security Management Policy and the UN Security Management System
Framework for Accountability stipulate that Representatives and the Organization must
demonstrate that safety and security is a core component of their respective programmes in
the country operations and that appropriate funding is provided.
2.5 STAFF EXPENSES
The authority to administer and approve staff expenses is centralized with DHR. Staff expenses
include:
a) Salaries;
b) Salary advances;
c) Entitlements; including post-employment entitlements (CAL, Repatriation grant, ASHI,
etc.)
d) Travel related to:
• Recruitment;
• Reassignment;
• Separation;
• Home leave;
• Education grant.
Country Offices may effect payments related to staff expenses only upon receipt of written
confirmation from a DHR authorized officer or upon receipt of the Monthly Payment Advice
(MPA).
2.6 EXPENSES ON BEHALF OF OTHER UNHCR FIELD OFFICES
Any disbursement on behalf of another UNHCR Country Office may be undertaken only upon
receipt of a written request by the originating office, which must clearly indicate the account
code (complete chartfields) to which the expenses should be charged and the authorized
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amount. The Country Office effecting the payment must send an electronic copy of the
Payment Voucher to the originating office. Advances or prepayments paid by another UNHCR
Country Office will be cleared by the originating office.
Ad hoc authorizations issued by UNHCR Headquarters or other Operations in the Field must
contain the account code (full chartfield combination) to which the authorized expenses are to
be charged or will clearly indicate how the account code should be determined.
3 PROCURE TO PAY PROCESS
UNHCR disburses billions of dollars per year to its suppliers around the world. The UNHCR
expenditure process comprises five functional steps from procurement to payment and is
designed to aid managers in spending resources efficiently and effectively according to plan
(budget), thereby maximizing operational impact. The following are the five steps in Procure to
Pay:
I. Authorize Spending;
II. Authorize Purchase;
III. Confirm Delivery;
IV. Approve Payment;
V. Execute Payment.
Internal controls at each step of the expenditure process provide assurance that policies and
procedures are actually applied, while reports monitor expenditure against a budget plan to
inform on actual progress toward plans.
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3.1 CONTROLS IN PROCURE TO PAY PROCESS
Controls over the expenditure process are set out in the Financial Internal Control Framework,
which is based on the following:
i. Five functional steps that are performed to carry out the expenditure process.
ii. Functional roles assigned to individuals based on the delegated authority or specific
area of technical expertise that enable them to perform these functions. Functional
roles are designed to ensure that:
- No individual has total control or influence over the whole process; and
- There is adequate segregation of functions, where the persons who perform
the preparer and approver roles are segregated from each other.
iii. System (MSRP) controls that automatically perform checks of transactions to
enforce some of the UNHCR Financial Rules (e.g. three-way match process)
iv. Two transactions types (PO and Non-PO).
The following is a description of the controls at each of the five steps in the Procure to Pay
process:
STEP 1: A DECISION IS MADE THAT SPENDING IS NECESSARY FOR A SPECIFIC PURPOSE.
Internal controls are applied to ensure that:
• Spending is necessary;
• Spending is in line with original plans (i.e. budget is available);
• Internal Control measures:
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o Non-PO transactions: the budget holder manually approves and certifies that funds
are available for the purchase. Refer to part 3.10 below for additional information
on Non-PO Voucher transactions;
o PO transactions: a requisition is created in MSRP, approved by the Requisition
Approver (the budget holder) in MSRP and the system automatically checks that
sufficient budgetary balance is available for the purchase. Refer to part 3.8 below
for additional information on PO Voucher transactions.
STEP 2: THE BEST VENDOR FOR THE TRANSACTION IS IDENTIFIED.

• UNHCR receives value for money;
• The terms and conditions for the purchase transaction are clear to both parties;
• Spending is in line with original plans and budget is available.

Internal Control measures:
• Non-PO transactions: quotes are collected and goods/services are ordered from the
vendor offering the best value for money.
• PO transactions: quotes are collected and a PO is created in MSRP, approved and
dispatched to the selected vendor. MSRP automatically compares the PO to the
Requisition, that is, runs the ‘budget check’ and the ‘document tolerance’ check to make
sure funds are available and spending does not exceed the initially authorized amounts.
STEP 3: GOODS/SERVICES ARE RECEIVED.
• UNHCR correctly tracks its assets;
• UNHCR pays only for the value of goods or services actually received;
• UNHCR pays only for the value of goods or services received exactly as ordered (quantity,
quality, specification, working condition).
Internal Control measures:
• Non-PO transactions: the receiver signs a paper-based shipping document to acknowledge
receipt of goods, or confirms receipt of services in writing;
• PO transactions: an MSRP receipt is entered for the received goods or services. If PPE,
Inventory or STI were received, the Asset or Inventory Modules or the STI Register are
automatically updated.
STEP 4: VENDOR INVOICE IS RECEIVED.
• UNHCR pays the vendor that provided the goods or services. Payments to third parties are
not allowed;
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• UNHCR pays only for the value of goods or services actually received exactly as ordered
(quantity, quality, specification, working condition);
• Payment is in line with original plans and budget is available;

• Internal Control Measures:
o Non-PO transactions: a Non-PO Voucher is entered into MSRP. Vendor data is
copied from approved and verified vendor records. Technical and Payment
Approvers manually check the Voucher to ensure that the correct budget year is
charged, the payment method and payment terms are set up correctly, the vendor
bank account is correct, the payment amount is correct (i.e. matches the vendor
invoice, receipt confirmation and order details) and the payment is not a duplicate.
o PO transactions: a PO Voucher is entered in MSRP, which goes through the
automatic 3-way match to ensure that the payment amount matches the receipt
and the PO details, performs an automatic budget check and document tolerance
check to make sure that funds are available and spending does not exceed the
initially authorized amounts.
STEP 5: PAYMENT IS ISSUED.
• UNHCR bank accounts are not overdrawn;

• UNHCR pays the vendor on time, but not before payment is due;
• Cash disbursements are recorded in MSRP correctly;
• Correct payment instructions are sent to the bank;
• Banks operate under most favourable terms and conditions and are authorized by TCS;
• Dormant bank accounts are identified and closed timely;
• Bank accounts are never overdrawn.

Internal Control Measures:
• The Pay Cycle Manager manually checks bank account balance to avoid overdrawing the
account;
• The Pay Cycle Manager manually runs the Pay Cycle to make payments on invoices that
are due;
• MSRP automatically records the cash disbursement;

• MSRP automatically generates payment instructions to the bank, with all payment details
that are copied from the Voucher and vendor records;
• Country Offices cannot instruct banks to change authorized signatories;

• Two authorized signatories approve and sign the payments instructions for all
disbursements including electronic bank transfers;
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• Payment approvers should ensure that the original or legitimate electronic invoices are
attached to the Payment Vouchers. 1 Electronic invoices can be accepted if it is an accepted
and widely used business practice in the country or where electronic invoices have the
equivalent status to paper invoices and can be used interchangeably. There will be
instances where the retention of original hard-copy documentation is still necessary, for
example, for filing for Value Added Tax (VAT) refunds with some governments;
• All payment instructions are processed in MSRP before they are signed and issued to the
bank;
• Where bank forms or letters are manually prepared in addition or in lieu of MSRP bank
letters, the MSRP-generated bank advice letter is attached and marked as cancelled. Bank
signatories check that the details in the bank forms are in agreement with the MSRP-
generated bank advice letters;
• Since payments settle contractual obligations or agreements which UNHCR has entered
into, they are issued only to accounts where the name of the account holder matches
exactly the legal names of vendors indicated in the contractual agreements. Payments to
third parties are not authorized.
The purpose of these financial controls is to ensure that UNHCR funds

are spent:
• On goods and services required for the operation (necessary,

suitable).
• With value for money (quality/price) based on competitive
supplier quotes.
• On goods/services actually received from suppliers.
• Without any error and fraud occurring during the process.
3.2 DELEGATION OF AUTHORITY PLAN (DOAP)
1
Further guidelines regarding online file attachments in MSRP can be found in UNHCR/OG/2020/1.
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A DOAP governs the preparation and approval of all transactions in MSRP. The DOAP provides
a mechanism for UNHCR Representatives and Directors to delegate financial authority and
assign financial roles in a structured manner.
Segregation of duties is one of the most important internal control measures. Segregation of
duties requires more than one person for the completion of each step of the Procure to Pay
process in order to prevent fraud and errors.
The DOAP of each office provides an overview of all staff members who are involved in the
Procure to Pay process and the roles that they assume in the purchase cycle. DOAP follows a
rows and columns structure.
In the rows, the names of staff members with delegated authority and in the columns the
different roles (e.g. requisition preparer and approver).
The roles in the Procure to Pay process are clearly defined and have to be segregated in order
to avoid conflicts of interest. Some roles cannot be performed by the same person; for example,
a requisition approver cannot approve the PO for the same transaction. This is to prevent one
person from having excessive control over a full transaction, in this example choosing what to
buy (Requisition) and from whom to buy it (PO).
Segregating roles for the five steps of the procurement to payment process makes up the
horizontal segregation of duties in UNHCR.
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Rules for segregation of roles under DOAP:

1. Spending Approver (Non-PO) and Payment Approver can be the same person for
the same transaction.
2. Spending Approver (Non-PO) and Purchase Approver (Non-PO) cannot be the same
person for the same Transaction.
3. Voucher Preparer (Non-PO) cannot be combined with Technical Approver.

4. Voucher Preparer (Non-PO) cannot be combined with Payment Approver.
5. Requisition Approver and PO Approver cannot be the same person for the same
transaction.
6. Requisition Approver and Receiver (Goods) may be the same person for the same
transaction.
7. Requisition Approver and Receiver (Services) should be the same person for the
same transaction because there is no physical receipt - and because the original
requestor of services is in the best position to evaluate and confirm the receipt of
services.
8. Receiver and Voucher Preparer (PO) can never be the same person.
9. For Individual Consultants: PO Approver and Receiver (Consultant) could be
combined to confirm delivery of Individual Consultant Services.
10. For Implementing Partners: Purchase Approver (Non-PO) is the Responsible
Manager who signs the IP Agreement (Sub-Agreement) offline outside the system.
Receiver (Non-PO) is the person responsible for certifying the IPR (SPMR) offline
outside the system. Payment Approver can be the Programme Officer subject to
limits on Amount.
11. Vendor Approvers cannot also be given the Vendor Entry and Vendor Certify roles.
12. Vendor Approvers cannot be Voucher Preparers or Payment Approvers, but can be
Technical Approvers.
Exceptions to these rules are very rare and must be clearly approved by the Chief of AFS,
documented and kept on file for auditing purposes.
The vertical segregation of duties means that at each step the action prepared by a staff
member (e.g. requisition, PO, payment) is reviewed by another staff member prior to approval
and moving to the next step; for example, the requisition preparer cannot assume the role of
requisition approver.
This vertical segregation of duties is also called ‘the four-eye principle’ because each step in
the process requires at least two staff members.
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Another principle of checks and balances is that, as far as possible, reviewers should check
internal records against external documents. Therefore, reviewers should check:
a) Vendor offers against MSRP POs;

b) Shipping documents from vendors or shipping companies against MSRP receipts;
c) Vendor invoices against MSRP Vouchers.
Heads of Office must ensure that the DOAP of each office is updated every time a staff
member leaves or arrives at a duty station and when the functions of a staff member change.
The DOAP is reviewed by AFS at headquarters for any inconsistencies
in our rules for roles. Once endorsed by AFS, the DOAP is approved
The integrity and and passed on to MSRP Security, so that they can grant the correct
competence of MSRP user access to each individual in the DOAP.
staff performing
Heads of Office must make sure that roles are assigned to staff
internal controls
members who understand their role and are properly trained to deal
are essential for
with the responsibilities associated with their roles. Subject to staffing
effective control.
capacity, each role should be assumed by at least two staff members:
one primary responsible person, and one back-up person.
For detailed information on UNHCR’s FICF refer to IOM/044-
FOM/044/2006 - Revised Delegation of Financial Authority Policy: New Financial Internal
Control Framework.
Warning!
Heads of Office should be alert to the following indicators:
• DOAP roles assigned to staff with functions not relevant to their role.
• DOAP roles assigned to staff who do not understand their role.
• DOAP not updated when staff leave the operation.
• DOAP roles concentrated among a few individuals and lack of cover for certain
MSRP roles, resulting in bottlenecks when staff are on mission or leave.
• DOAP roles should not be delegated to non-UNHCR staff. If this is not possible, DO
NOT give ‘Approver’ roles to non-UNHCR staff.
3.3 REQUISITION
The first step in any purchases for UNHCR is to authorize spending for a purpose.
This means to:

• Identify the need to spend;
• Make a decision to spend against a given budget; and
• Confirm availability of funds for the purpose.

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Budget owners of the Country Office or Division where the need to purchase has emerged
have the authority to authorize the expense of funds. In the Procure to Pay process, this
person/unit is called the Requestor.
A requisition has to be created when a business decision has been made by the Requestor to
spend funds in the procurement of goods or services with an amount exceeding US$4,000
per vendor in the same calendar quarter. This rule is not applicable to payments of IP
instalments, staff payments, advances, claim settlements and payments between Country
Offices and to UNDP.
Requisitions pre-encumber funds in the Commitment Control module of MSRP, but do not
have any impact on the GL module.
In order to create a Requisition, the preparer must have the following information available:
• What goods or services need to be purchased (item, quantity);

• Where it should be delivered (shipped to);
• When it is required (due date);
• Which budget will pay for the purchase (chartfields); and
• Must also enter his/her best estimate of how much the requested purchase is likely to
cost.
Requestors have no authority to decide from whom to purchase the requested goods or
services. This decision is based on the outcome of the competitive bidding process, which is
handled by procurement staff.
Note that a Requisition is an internal document – it does not create an obligation for UNHCR
to purchase. Therefore, Requisitions that are not turned into POs can be cancelled (in case of
cancellation, the Requisition needs to be budget checked again to unblock the budget).
It is extremely important that Requisitions clearly indicate what goods or services need to be
purchased. To achieve this, Requisition preparers have to select the correct item from a pre-
defined list that is maintained by headquarters in MSRP Finance/Supply Chain > Items module.
All items in this database have:
• Pre-defined descriptions;
• Unit of measure;
• Standard price;
• Vendors that are registered as potential suppliers of those items; and
• Designated GL accounts.
If there is a need to purchase goods or services that are not yet entered as items in MSRP, a
request for the creation of the new item must be submitted through an email sent to UNHCR
Global Service Desk.
All items that are entered in UNHCR items database can be classified into two types:
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• Services (e.g. security, cleaning, electricity); and

• Goods (generators, computers, blankets, notepads, etc.). Goods can be further classified
into four groups:
i. Property, Plant and Equipment (PPE);
ii. Serially Tracked Items (STI);
iii. Inventories (INV);

iv. Consumables (CONS).
A Requisition is a document created in MSRP as the first step of the Procure to Pay process.
It reserves funds against a specific budget early in the process, for a purchase and payment
at a later date.
Requisitions should be created when a need to purchase goods or services above
US$4,000 from the same vendor in a calendar quarter has been identified.
Requisitions must be entered in the MSRP system as soon as a decision has been made by
an authorized person (i.e. the budget owner has approved spending against their budget).
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3.4 PROCUREMENT PROCESS
START:
Planning
your
procurement
Managing activity
Developing
and
a
adminitering
specification
the contract
Preparing
Choosing a
the contract
procurement
and placing
method
the PO
Procurement
Process
Awarding a
contract
Sourcing
(including
vendors
approval by
CoC)
Preparimg
Evaluating and issuing
offers solicitation
documents
Receiving,
opening and
validating
offers
Heads of Office must ensure that due process is followed for the procurement of goods and
services.
3.4.1 FORMAL METHODS OF SOLICITATION
Heads of Office demonstrate adherence to the principles of probity, prudence and focus on
results when competitive procurement is followed for the purchase of goods or services.
UNHCR uses the following three solicitation methods for the procurement of goods and
services:
An Invitation to Bid (ITB) refers to regular/standard requirements. Technical bids are first
evaluated as pass or fail, and then a contract is awarded to the lowest price quote of bids that
have passed a technical assessment. Examples include standard kitchen sets and other non-
food items.
A Request for Proposal (RFP) refers to complex/unique requirements that are usually set out
in a specific terms of reference. Suppliers are required to propose a technical solution plus a
related price quote. An RFP often applies to infrastructure and construction type contracts. An
award under an RFP is based on the combination/ratio of technical factors/quality and price
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factors and the criteria for that combination/ratio and evaluation must be set before issuing
the RFP.
3.4.2 NON-FORMAL METHODS OF SOLICITATION
Waivers of competitive bidding and RFQs are a part of non-formal method of solicitation.
A Request for Q uotation (RFQ ) is a non-formal method of solicitation for procurement of
goods and services within the following thresholds (refer to UNHCR/AI/2017/2-
Administrative Instruction on the Thresholds for Requests for Q uotations (RFQ s) in Non-
Emergency and Emergency Situations and on Procurement through Non-PO Vouchers):
Thresholds Increased Thresholds – for newly

declared L2 and L3 Emergencies
Floor for RFQs Ceiling for Floor for RFQs Ceiling for RFQs
Location
(US$) RFQs (US$) (US$) (US$)
Headquarters 4,000 40,000 4,000 100,000
Field 4,000 40,000 4,000 100,000
The contract is awarded to the lowest price offer that best meets the stated requirements.
Bid waivers may be authorized in the following cases (refer to United Nations Financial Rule
105.16 on Exceptions to the use of formal methods of solicitation):
• When there is no competitive marketplace for the requirement, such as where a
monopoly exists, where prices are fixed by legislation or government regulation or
where the requirement involves a proprietary product or service;
• When there has been a previous determination or there is a need to standardize the
requirement;
• When the proposed procurement contract is the result of cooperation with other
organizations of the United Nations system;
• When offers for identical products and services have been obtained competitively
within a reasonable period of time and the prices and conditions offered remain
competitive;
• When, within a reasonable prior period, of time a formal solicitation has not produced
satisfactory results;
• When the proposed procurement contract is for the purchase or lease of real property
and market conditions do not allow for effective competition;
• When there is an exigency for the requirement;

• When the proposed procurement contract relates to obtaining services that cannot be
evaluated objectively;
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• When it is otherwise determined that a formal solicitation will not give satisfactory
results;
• When the value of the procurement is below the monetary threshold established for
formal methods of solicitation.
3.4.3 SUMMARY OF SOLICITATION METHODS
The following table summarizes the methods of solicitation:
Key attributes RFQ ITB RFP
When? Used as a method to Standard and firm Standard and firm

solicit offers from specifications can be specifications cannot
suitable suppliers for expressed be qualitatively and/or
low value purchases. qualitatively and quantitatively
quantitatively. expressed.
Tendering method Non-formal Formal Formal
Thresholds Headquarters & field Headquarters & field Headquarters & field
offices offices offices
a) Standard threshold: a) Standard threshold: a) Standard threshold:
US$4,000–40,000 > US$40,000 > US$40,000
b) Declared L2/L3 b) Declared L2/L3 b) Declared L2/L3

emergencies: emergencies: emergencies:
US$4,000–100,000 > US$100,000 > US$100,000
Minimum number Headquarters & field Headquarters & field Headquarters & field
of bids offices: offices: offices:
No less than three 8–25 8–25

(five in case of
(depending on the (depending on the
increased ceilings in
value of the tender). value of the tender).
emergencies) valid
offers received, unless
a lower number is duly
justified.
Deadline for No minimum period 4-8 weeks 4-8 weeks

submission of set
offers
Strict deadline for NO YES YES

submission of
offers
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Two envelope NO YES YES

system
Accept quotations YES NO NO

received after the
deadline
Tender reception is NO YES YES

separated from
Supply
Bid Opening NO YES YES

Committee (BOC)
Contract awarding Lowest priced offer Lowest priced offer Best weighted score
that meets the stated that passes the after combining the
requirements in the technical technical and financial
best manner confirmation factors
3.4.4 VENDOR MANAGEMENT AND ADMINISTRATION

Any person or organization to which UNHCR makes payments has to be recorded in the MSRP
Finance and Supply Chain module as a Vendor. The most commonly used Vendors in MSRP fall
into the following categories:
Vendor Classification Description
PO Vendor A Vendor for which POs, lease agreements or Frame agreements are issued
in MSRP following approval granted by the competent Procurement
Authority. POs are to be placed usually for procurement transactions above
US$4,000. .
Non-PO Vendor A Vendor not requiring a PO to be placed in MSRP. Such Vendors may only
be used for purchases with a cumulative amount up to US$4,000 in a
calendar quarter. These low value purchases are also sometimes described
as ‘Shopping’.
Potential Vendor Potential Vendors are those that do not have at the time of their registration
any contractual relationship with UNHCR but wish to be considered for any
future business opportunities in their area of interest.
Implementing Partner An entity to which UNHCR has entrusted the implementation of

programmes and projects specified in a signed document, together with the
assumption of full responsibility and accountability for the effective use of
resources and the delivery of outputs as set forth in such a document. The
entity could be a governmental, inter-governmental or non-governmental
body, a United Nations organization, or a non-profit organization.
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Employee UNHCR staff member with an HR employee ID.
Consultant Individual Consultant (HR Policy IOM/009-FOM/009/2013 applies).
Individual Contractor Individual Contractor - same as Individual Consultant with the main
difference that Individual Contractor is not necessary a recognized authority
or specialist in a specific field (HR Policy IOM/011-FOM/011/2013 applies).
Independent Contractor Individual (Professional) Goods or Service Provider.
Beneficiary Individual person of concern (refugee, IDP); not an organization.
UNV United Nations Volunteer.
Vendor Entry
Entry of Vendors into the System is one of the first steps in managing internal control: no
person or company can be paid without being entered and approved as a Vendor in the System.
Vendor Entry is decentralized to the best point of capture for each type of Vendor.
Restrictions/Recommendations:
• Vendor Entry and Vendor Approver roles cannot be combined;
• Vendor Entry staff cannot approve UNHCR Bank Vendor Records.
The Vendor Enterer (also known as Vendor Preparer) role in MSRP has the option of saving a
vendor record with ‘draft’ or ‘certified’ status. The ‘draft’ is used when the record is not
complete, but not ready for approval. The enterer will continue with data entry later. The
certified status means that the enterer completed the data entry and certifies that the record
is ready for approval. When the enterer selects ‘certified’ status and clicks ‘save’, the record is
automatically routed by the system (i.e. a workflow process) to the designated Vendor
Approver as per the DOAP.
Vendor Certifier
The Vendor Certifier role confirms that a given Vendor record meets the organizational
requirements for a given Vendor Type. Depending on the Vendor Type, Vendor Entry role may
be combined with the Vendor Certify Role.
• Vendor Certifier role cannot be combined with Vendor Approver role.
Vendor Approver
The Vendor Approver approves and activates Vendor records within the System. Approval of
Vendor Records is essential in managing internal control: no person or company can be paid
without first being approved as a Vendor in the System. The Vendor Approval role should be
carefully assigned to avoid conflicts of interest and poor segregation of duties.
• Vendor Approvers cannot enter or update Vendor details and records.
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• Vendor Approvers cannot be Vendor Certifier.

• Vendor Approvers cannot be Payment Approvers.
• UNHCR Bank Vendors are approved only by DFAM – Treasury & Cash Service.
The Vendor Approver has the following options:
• Approve it, if all the information is correctly entered;
• Deny it (the record is rejected and should never be approved);
• Recycle it (the workflow will return it to the enterer for correction).
A Vendor record in MSRP stores key data for a vendor:

- Legal name, Address, Banking details
When creating POs and vouchers in MSRP, it is necessary to select a valid Vendor from the
MSRP Vendor database - this means less data entry when preparing these documents, hence
smaller probability of error.
Therefore, it is important that all vendor data are entered with due diligence to enable
smooth process of payments.
Keeping all vendor information in MSRP facilities consultation of the complete history of
payments made to each vendor.
• Legal name
Warning!
• beAddress
There should only one vendor record for each Vendor. No duplicates are allowed.
If two records are• detected

Bankingfor one vendor:
details
• The oldest one should be kept and updated (as a general rule);
• The new record should be deactivated.
In order to ensure the integrity of the vendor records in MSRP, the following restrictions
apply:
• Vendor Approvers cannot enter or update Vendor details and records;
• Vendor Approvers cannot be Payment Approvers;

• The roles are designated and documented in the appropriate Delegation of
Authority Plan.
Vendor Enterers and Vendor Approvers must exercise due diligence:
• To ensure the accuracy of the banking details;

• Clear in-active vendor records;
• Avoid and eliminate duplicate vendor records;
• Update vendor records in a timely manner when changes are made;
• To cross reference the applicant with UN agencies sanctioned Vendors list.
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In order to keep the vendor database up to date, purchasing staff must regularly review the
PO Supplier vendors in MSRP and identify those that qualify for inactivation:
• A duplicate entry for the same Vendor;
• Following a written validated request by the Vendor;
• Vendor is placed on the UNGM Ineligibility list; or
• Following a decision by UNHCR’s HQ Vendor Review Committee or by UNHCR’s

Vendor Ethics Committee.
Non-performance issues related to vendors should be referred to the Vendor Review
Committee (VRC). The VRC is an internal review body established at the field office level
((Multi-) Country Offices and Regional Bureau) and at Headquarters, with the mandate to
oversee issues arising from Vendor non-performance against their contractual obligations. The
VRC shall serve as a review board for complaints from the Contract Managers and Contract
Administrators against Vendors who are alleged to have failed to perform in accordance with
the terms and conditions of the contract. Out of scope for the VRC are proscribed practices,
liquidated damages, bid and performance securities.
The Vendor Ethics Committee (VEC) is an internal review body established at global level at
UNHCR Headquarters, mandated with reviewing allegations made against UNHCR Vendors in
relation to a breach of the UN Supplier Code of Conduct or any possible engagement in
proscribed practices.
The structure, functions and responsibilities, as well as the process for submission of a case to
the VRC and the process for notification of cases to the IGO, are described in more detail in
the UNHCR Operational Guidance Note on Vendor and Contract Management.
3.4.5 CENTRALIZED PROCUREMENT

Centralized purchasing arrangements at headquarters or designated international hubs of
Procurement Service (PS) may be used for purchases of assets if this is considered cost-
effective and particularly for maintaining standardization within UNHCR. However, it is
recognized that post-sales servicing facilities and the urgency of needs are important factors
in selecting suppliers.
SMS will maintain a strategic level of stocks, specifically of inventory items for emergencies.
The office Supply or Programme Officer in consultation with SMS will review whether the
planned procurement is better sourced locally, from the closest stockpile, or through
international procurement.
Actual shipments from stockpiles will be reimbursed to SMS by the requesting office at the
carrying value of the items. For centralized international procurement, total cost of the
purchase plus related costs such as shipment and insurance are chargeable to the requesting
duty station.
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As regards the procurement of assets for emergencies, it is equally important to strike a balance
between flexibility to meet urgent needs of the operation and the assurance that essential
internal controls are in place. Required authorizations should be secured prior to proceeding
with the procurement or release of UNHCR assets. Records and documentation of authority
should be kept intact to ensure a verifiable audit trail.
3.5 COMMITTEES ON CONTRACTS

The High Commissioner has established the Headquarters Committee on Contracts (HCC) in
accordance with the Financial Rules for Voluntary Funds Administered by the High
Commissioner for Refugees and has authorized the establishment of Committees of Contracts
at regional and local levels. UNHCR/AI/2018/5/Rev.1 - Administrative Instruction on the
Rules and Procedures of UNHCR Committees on Contracts at Headquarters and in the Field
defines their composition and levels of authority.
The central function of a Committee on Contracts (CoC) is to review whether Submissions are
in accordance with the UNHCR Procurement Rules. For further information on the CoCs, refer
to the UNHCR/AI/2018/5/Rev.1 - Administrative Instruction on the Rules and Procedures of
UNHCR Committees on Contracts at Headquarters and in the Field and Chapter 8 (the
UNHCR Supply Manual).
Pursuant to Article 10.10 of the Financial Rules for Voluntary Funds Administered by the High
Commissioner for Refugees, the following Committees on Contracts are established for the
review of Submissions meeting the relevant Threshold Amounts and other criteria set out in
Section 7 of the Rules and Procedures of UNHCR Committees on Contracts at Headquarters
and in the Field:
HCC: A single Committee on Contracts at UNHCR Headquarters (HCC).
Regional Committee on Contracts (RCC): For each Region, a RCC to cover the
regional bureau itself and all countries within such region.
Local Committee on Contracts (LCC):

(i) A Representative, a Chief of Mission, the Director New York Office, and
exceptionally a Head of Office in a country not falling under a Multi-
Country Office, may establish and maintain a LCC.
(ii) A Representative or Chief of Mission may establish and maintain one or
more Sub-Local Committee(s) on Contracts (Sub-LCCs) in one or more
Sub-Offices.
The Controller, acting as Chairperson of the HCC, can request the establishment of, and has
the authority to abolish, an LCC or a Sub-LCC, when deemed necessary.
3.5.1 SCOPE OF COMMITTEES ON CONTRACTS

The following table shows the scope of the Committees on Contracts:
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THRESHOLDS APPLYING TO SUBMISSIONS BY NON-HEADQUARTERS UNITS 2
a. US$4,000 to US$40,000 Representative/Head of

Office/Chief of Mission and
Regional Bureau Director 3
b. US$40,000 to US$100,000 Sub-LCC 4; or LCC if no Sub-LCC;

or RCC if no LCC
c. US$40,000 to US$250,000 LCC 5; or RCC if no LCC
d. US$250,000 to US$1,500,000 RCC 6; or HCC if RCC cannot

review
e. Above US$1,500,000 HCC
THRESHOLDS APPLYING TO SUBMISSIONS BY HEADQUARTERS UNITS 7
a. US$4,000 to US$1,500,000 Head of SMS
b. Above US$1,500,000 HCC
In accordance with UNHCR Procurement Rules, the splitting of procurement actions involving
the same or substantially the same goods and/or services is prohibited for the purpose of
avoiding falling within a Threshold Amount that requires review by a Committee. Accordingly,
multiple awards shall be aggregated if they are based on the same underlying Procurement
Action for the purpose of determining the Proposed Requirements Value and the
corresponding Committee for review of the Submission. Conversely, there shall be no
aggregation of multiple awards if they are based on separate Procurement Actions.
2 A non-Headquarters Unit means a Unit not located in Geneva (with the exception of the Regional
Bureau for Europe), in the Budapest Global Service Centre and in the Copenhagen Global Service Centre.
3 The Representative/Head of Office/Chief of Mission and the Regional Bureau Director may delegate
this authority to colleagues with the appropriate seniority and/or the Procurement Function in their
operation as reflected in the Delegation of Authority Plan.
4 The Representative/Head of Office/Chief of Mission may exceptionally set lower Sub-LCC Threshold
Amounts for a specific period of time.

5 The Representative/Chief of Mission/Head of Office may exceptionally set lower LCC Threshold
Amounts for a specific period of time. Also, upon declaration of a L2 or L3 emergency, the operation can
request an increase of the upper limit of the LCC Threshold Amount of US$250,000 up to US$750,000
for review and decision by the HCC.
6 These Threshold Amounts apply on the basis that at least one Supply Officer at a P-4 level or above is
assigned to the relevant regional bureau at the date of a RCC meeting and is present at the RCC meeting
or has endorsed the Submission with no sub-delegation allowed below the P-4 Supply Officer level. If
this is not the case, section 1. (b) “HCC Threshold Amounts” of Schedule 1 of UNHCR/AI/2018/5/Rev.1
applies.
7 A Headquarters unit means a Unit located in Geneva (with the exception of the Regional Bureau for
Europe), Budapest Global Service Centre and Copenhagen Global Service Centre.
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The relevant Chairperson shall notify the Controller, acting as Chairperson of the HCC, with a
copy to the HCC Secretariat and the Head of SMS, of the following:
(i) For a RCC: the composition of the RCC.
(ii) For a LCC: the establishment of the LCC, the composition and coverage in case of a
Multi-Country Office. Such notification must be copied to the relevant RCC.
(iii) For a Sub-LCC: the establishment and the composition of the Sub-LCC. Such
notification must be copied to the relevant LCC and RCC. Copy of such notice shall be sent to
the HCC Secretariat, the Head of SMS and in the case of an LCC, to the relevant RCC.
3.5.2 REGIONAL COMMITTEE ON CONTRACTS (RCC)

A quorum at an RCC meeting requires the presence of a Chairperson and three Members at a
minimum.
Chairperson:
The relevant Regional Bureau Director shall be the principal Chairperson of a RCC. At least
two alternative Chairpersons shall be appointed by the Regional Bureau Director. In this
function, the Regional Bureau Director shall be accountable to the Controller, as Chairperson
of the HCC. Detailed list of accountabilities of Chairpersons can be found in Section 3 of
UNHCR/AI/2018/5/Rev.1.
Members: The Regional Bureau Director shall appoint at least three principal Members and at
least three alternate Members. After taking into account local circumstances:
a) The principal Members and alternate Members shall be staff members drawn from the
Professional (internationally and nationally recruited professional staff) or Field Service
staff categories. The majority of the principal Members and the majority of the alternate
Members should be from the Professional staff category. For the avoidance of doubt,
General Service staff shall not be part of the composition of an RCC.
b) Alternates to a principal Member should be drawn from the same functional unit as the
principal Member to the extent possible.
c) The principal Members should, to the extent possible, typically be the most senior staff
members of the unit in which they serve.
d) The Regional Controller should be part of the RCC, either as an alternate Chairperson
or as a principal Member.
3.5.3 LOCAL COMMITTEE ON CONTRACTS (LCC) / SUB-LCC
A quorum at an LCC or Sub-LCC meeting requires the presence of a Chairperson and two
Members at a minimum.
Chairperson:
The Representative, Chief of Mission, Head of Office or Director New York Office, as
applicable, shall be the principal Chairperson of a LCC and appoint at least one alternate
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Chairperson with the appropriate seniority. The Head of Sub- Office shall be the Chairperson
of the Sub-LCC and appoint an alternate Chairperson. In this function, they shall be
accountable to the Regional Bureau Director, as Chairperson of the relevant RCC (with the
exception of the Director New York Office who shall be accountable to the Controller, as
Chairperson of the HCC). Detailed list of accountabilities of Chairpersons can be found in
Section 3 of UNHCR/AI/2018/5/Rev.1.
Members: The Representative/Head of Office/Chief of Mission or the Head of Sub-Office,
acting as Chairperson of the LCC, shall appoint at least two principal Members and at least one
alternate Member. After taking into account local circumstances:
a) The principal Members and Alternate Members shall be staff members drawn from the
Professional (internationally and nationally recruited professional staff) or Field Service
staff categories. To the extent possible, a majority of the principal Members and a
majority of the alternate Members should be from the Professional staff category. In
exceptional circumstances, a special request may be submitted to the Controller, as
Chairperson of the HCC, to authorize inclusion of General Service staff in the
composition of the LCC or Sub-LCC.
b) Alternates to a principal Member should be drawn from the same functional unit as the
principal Member.
c) The principal Members should typically be the most senior staff members of the unit in
which they serve.
d) To the extent possible, the most senior staff member with Administration and/or
Finance responsibilities should be part of the LCC/Sub-LCC composition.
3.5.4 ROLES AND RESPONSIBILITIES OF CHAIRPERSONS OF COMMITTEE ON
CONTRACTS
As defined in the UNHCR/AI/2018/5/Rev.1 - Administrative Instruction on the Rules and
Procedures of UNHCR Committees on Contracts at Headquarters and in the Field, the
Chairperson shall chair and direct the conduct of Committee meetings, receive and consider
the recommendations of Members, and review and take decisions with respect to Submissions
or other matters presented to the Committee. The Chairpersons shall also fulfil the other
responsibilities attributed to them in the UNHCR/AI/2018/5/Rev.1 - Administrative
Instruction on the Rules and Procedures of UNHCR Committees on Contracts at
Headquarters and in the Field (including responsibility for supervising the Secretariat).
3.5.5 ROLES AND RESPONSIBILITIES OF MEMBERS OF COMMITTEE ON
CONTRACTS
The Members shall review and provide independent, unbiased and competent
recommendations to the Chairperson with respect to Submissions or other matters presented
to the Committee. The Members shall also fulfil the other responsibilities attributed to them in
the UNHCR/AI/2018/5/Rev.1 - Administrative Instruction on the Rules and Procedures of
UNHCR Committees on Contracts at Headquarters and in the Field.
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Chairpersons and Members shall serve in their personal expert capacity and do not represent
the unit where they function as staff members. They shall be independent in the performance
of their duties and shall not be bound by any instructions from supervisors.
The main objective of the CoC is to review whether due process has been followed in the
procurement of goods and services.
The Chairperson decides, and CoC Members provide advice.

Where a Chairperson or a Member has a requisitioning role or has been closely involved in
preparing the procurement or where there is any other actual or possible conflict of interest
as defined in Regulation 1.2(m) of the UN Staff Regulations, s/he must recuse her/himself
from consideration of the submission.
Information contained in submissions as well as discussions, recommendations and
decisions in Committee meetings are confidential.
3.6 PURCHASE ORDERS

The second step in the expenditure process is to authorize the purchase.
This means to:
• Select a qualified Vendor to meet the need;
• Carry out procurement process according to UNHCR’s rules and regulations;
• Enter into a legally binding agreement with an external party.
POs are the standard format that must be
issued to formalize the procurement of
When contracts/agreements have
goods and services with values above
monetary caps on liability that limit a
US$4,000. POs must be placed for
vendor’s liability for damages caused to
UNHCR, the Controller’s approval on inventory, property plant and equipment
the cap on liability should be sought as (PPE) or serially tracked items (STIs)
only the Controller has the authority to regardless the relating value. POs are
approve such a cap. Such approval is essentially a contract between UNHCR
required because the specified and the vendor.
limitation of liability potentially could POs have specific clauses that cannot be
prevent UNHCR from being made
modified or waived unless specifically
economically whole as a consequence
agreed by LAS. If not covered by standard
of the vendor’s failure to perform.
PO clauses, specific requirements,
deliveries, timeframes and other essential
information must be clearly stated in a
separate agreement/contract.
Using a MSRP PO captures more information within MSRP and it will reserve the budget
amount and limit it to the required amount through all stages of the process (Requisition, PO
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and Voucher), providing a better overview of remaining available funds in the budget. The PO
process also copies all pertinent information from one document to the other, avoiding
repetitive entry of data, avoiding errors and saving time. Another optimization is that the
Payments are automatically approved after receipting and entry of voucher since all required
documents are already available in MSRP. The detailed PO creation process is explained in
Chapter 8 (the UNHCR Supply Manual).
3.6.1 FUNDAMENTAL ELEMENTS OF CONTRACT ADMINISTRATION
Contracts should normally be signed by Heads of Office or by an officer that has been
delegated under the DOAP. They must ensure that, at a minimum, the following essential
elements are present in any contract entered into by UNHCR:
• Clear identification of the contracting parties and their legal representatives authorized
to sign the contract;
• Clear start and termination dates of the contract;
• Clear statement of the object of the contract;
• Clear statement of the value of the contract;
• Responsibilities, obligations and rights of the contracting parties;
• Liability clauses;
• Termination clauses;
• Diplomatic privileges of UNHCR;
• United Nations arbitration clause.
In exceptional circumstances, the procurement of goods and services may be better formalized
through contracts rather than through standard POs. This applies, for example, to the following
categories:
• Lease agreements;
• Construction contracts;
• Complex service agreements;
• Frame agreements;
Warning!
All contracts should be cleared by LAS before they are signed by a UNHCR Officer.
Admin/Finance Officers must keep a comprehensive and updated list of all contracts entered
into by their offices.
Except for lease contracts that may have durations longer than a year, contracts should not
commit funds of UNHCR for periods beyond the fiscal year.
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Unless explicitly authorized by the CoC, at the expiration of a contract, further procurement of
the same goods or services must be subject to competitive bidding.
Because the procurement process often takes months to complete, good planning requires that
the procurement process of goods and services of a recurring nature starts well in advance of
the expiration of existing contracts.
Heads of Office must pay attention to the following:

 Establish an LCC/Sub-LCC;
 Review with the Admin/Finance Officer a summary listing of all contracts;
 Review the status of contracts (quarterly), for example, cleaning, security, or rental of
premises;
 Ensure adequate time for renewal/change (including review by CoC, where necessary)
Warning!
The following indicators require attention and action from Heads of Office:
a. Obligations/clauses that imply financial or legal exposure to UNHCR.
b. Contracts that have no time limit or do not specify the total cost.
c. Same vendors for many contracts.
d. LCC/Sub-LCC does not meet regularly, and/or members are not trained.
e. Few bids on attractive tenders.
3.6.2 RECORDING AGREEMENTS WITH UN AGENCIES IN MSRP

UNHCR often works in collaboration with other UN agencies, with these agencies acting either
as suppliers of goods or services or as implementing partners. UNHCR expenses as a result of
agreements with UN agencies must be recorded in MSRP as either:
a) a Purchase Order (PO) (normally ABOD-related); or
b) an Implementing Partner (IP) agreement (when programme-related).
Correct recording in MSRP ensures compliance with correct expense recognition principles
under IPSAS, and the inclusion of expenses within commitment control (leading to adequate
budget check and budget provision). All rules that apply to the recording of UNHCR’s
arrangements with suppliers and implementing partners must be fully applied to arrangements
with UN agencies.
In the case that UNHCR purchases goods or services from or through another UN agency, such
as internal audit services from United Nations Office at Geneva (UNOG), these expenses must
be made on the basis of a PO if the amount of the transaction exceeds the PO threshold. In
particular, any cost-sharing arrangements (such as sub-letting of office accommodation to
UNHCR) must be covered by a PO (in addition to an agreement signed between UNHCR and
the UN agency). PO vouchers must only be prepared on receipt of an invoice (or an equivalent
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document, such as a request for payment) from the UN agency which acts as a supplier,
specifying the goods and/or services supplied and amount invoiced.
The only exceptions to the above principles are:

 UNHCR payments to other UN bodies in relation to employee-related expenses, such
as:
o Payments to the United Nations Joint Staff Pension Fund (UNJSPF);

o Payments to the United Nations Staff Mutual Insurance Society (UNSMIS); or
o Payments to UNOG in relation to shipments for staff members; or
 UNHCR payments to UNDP under the Service Clearing Account (SCA) arrangements;
and
 Most arrangements with UNOPS are considered to be contracts for services under
direct implementation.
3.7 RECEIPT
Confirmation of the delivery is the third step of the expenditure process.
Receipt is the term and on-line confirmation in MSRP for the recording of delivery of goods
and services from suppliers in accordance with the specifications laid out in the PO. Receipts
must be created in MSRP when UNHCR actually receives the goods/services (on the same day
if possible) and never in advance of delivery of the goods/services (even if payment in advance
is required). Receipt should be backdated in MSRP to the exact date when services and goods
were delivered if the receiving was not recorded on the exact date when delivery took place.
Timely and accurate entering ensures compliance with IPSAS based on accrual accounting and
delivery principle.
Receipt is a key step to release payments to suppliers. Payment Vouchers for PO transactions
do not require manual approval in MSRP. Approval occurs through an automated process in
MSRP that compares the details of the PO, Receipt and PO Voucher. Receipting triggers the
payment when the vendor invoice is received and processed (matched to the PO), to ensure
that only those Vendors who actually delivered the goods and services for UNHCR are paid.
The person performing this step is called the Receiver.
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For continuously provided services, such as electricity consumption, cleaning, security, etc.,
receipted amounts at year-end should be based on best estimates. These may include partially
completed construction contracts where payment is made upon completion or in a different
pattern than the progress of the construction work itself.
By entering a Receipt for services in MSRP, the Receiver verifies and confirms:
 The value of the services rendered;
 That the services have been received as stated on the PO or Contract;
 That the quality of the services rendered meets the standard agreed on the PO or
Contract.
By entering a Receipt for goods in MSRP, the Receiver verifies and confirms:
 The quantity of the goods received;
 That goods received conform to specifications on the PO;
 That goods are of expected quality (for example, the vehicle starts and functions);
 The goods have no visible damage;
 That all required documentation has been provided.
Receivers must physically check what has been delivered and only certify the quantity of goods
received in good condition and according to the PO specifications. This physical verification
should be performed at the actual time and place of delivery of goods and must be followed
by the immediate creation of a Receipt in MSRP.
Damaged, missing or sub-standard (inferior quality) items must not be accepted and should not
be entered onto PO receipts in MSRP.
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If correct and complete delivery cannot be verified right away, ‘complete receipt’ in MSRP will
have to be backdated to the initial date of delivery once such verification is performed. For
example, in the case of complex reports submitted by consultants that require further
validation, or facilities built by general contractors where an expert evaluation is needed before
the ‘completion of work’ can be certified.
When creating a PO Receipt in MSRP, relevant details (such as item, quantity or amount) are
copied from the PO onto the Receipt pages. The Receiver must verify the quantity or the price
that is copied from the PO to the Receipt and confirm and change these values as appropriate.
Where a PO is created for services, the full details (including the period covered) must be
entered in the PO Line Details.
The Receiver must also enter the following data:
 Reference documents (for instance, waybill no); and
 Bar codes, serial numbers and Custodian (for PPE/STI items).
In cases where UNHCR orders Inventory items (such as blankets, tents and kitchen sets), when
these items are delivered to a UNHCR warehouse:
 The designated Receiver must inspect the goods and, if everything is in order, create a
PO Receipt in the MSRP Purchasing module.
 As a result of saving the Receipt, the stock balance of the receiving warehouse in the
MSRP Inventory module will be automatically increased.
 The description, quantity and lot details of the items received are transferred from the
Receipt entered in MSRP Purchasing module to the MSRP Inventory module – no
manual entry in the Inventory module is required.
In cases when UNHCR orders PPE items from vendors (such as heavy vehicles and generators),
when these items are delivered to UNHCR:
 The designated Receiver must inspect the PPE and, if everything is in order, place a
bar code label on it;
 The Receiver then must create a PO receipt in MSRP Purchasing module.

 This receipt will automatically create an asset record for each item of PPE in the Asset
Management (AM) module of MSRP;
 All relevant details (such as item description, acquisition price, serial number, bar
code, and Custodian) are transferred from the Receipt to the AM module – no manual
entry in the AM module is required.
In cases where UNHCR orders STIs (such as computers, printers and laptops) from vendors:
 When these items are physically received, inspected and bar-coded, the PO Receipt
must be entered in MSRP Purchasing module;
 This receipt will automatically create these STIs in the STI Register in MSRP, which is
part of the AM module;
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 All relevant STI details, such as description, acquisition price, serial ID, bar code and
Custodian, are transferred from the Receipt in the MSRP Purchasing module to the
STI Register – no manual entry in the STI Register is required.
Receipts should be entered for exactly the amount of goods/services actually received
(including partial delivery). Failure to do so will result in an under- or overstatement of expense
in the financial statements.
The Receiver role is extremely important because receipt is the point at which UNHCR actually
receives value for the goods/services ordered, and also recognizes the corresponding assets or
liabilities. The Receiver personally certifies that goods and services have been received in the
quantity, quality and condition in accordance with PO specifications. It should be carried out
with utmost due diligence.
Receipt triggers workflows with financial impacts in the GL module of MSRP as it results in the
recognition of assets or expenses as well as liabilities, but it has no impact on the Commitment
Control module of MSRP.
To reduce the risk of inaccurate receipting, self-study learning materials are available in Learn
and Connect for timely and accurate receiving (link). If not done already, it is strongly
recommended that all staff with receipting rights in MSRP review these learning materials and
self-certify their understanding of the basic requirements of this important function role by
completing a short test included at the end of the training.
Two Examples:
3.8 PO VOUCHERS
Approving a payment is the fourth step of the expenditure process. It means to:
• Validating transactions by comparing data among different documents;
• Preparing payments in line with purchase agreements;

• Approving Payment Vouchers.
UNHCR policies require that MSRP POs are issued to a vendor when the cumulative value of
purchases from that Vendor reaches or exceeds US$4,000 in any given calendar quarter.
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PO transactions are entered in MSRP at the first step of the Procure to Pay process, that is, at
the requisition stage, and each following step has to be validated in the system as well. In
contrast, transactions up to US$4,000 by a vendor in any given calendar quarter may enter
MSRP only at the Payment Voucher stage. Some transactions under US$4,000 per calendar
quarter may be still be processed with a PO (e.g. under frame agreements or purchases for
inventory, PPE or STIs regardless the relating value).
In a PO transaction, all five steps of the expenditure cycle and related internal controls are
processed through MSRP.
Through these system checks, all documents entered from Requisition to Voucher are
controlled against each other to automatically identify any discrepancies. As a result, there are
fewer chances of error related to manual data entry.
As AP vouchers can be retrieved online and MSRP provides an audit trail to track vouchers’
preparers and approvers, it is not necessary to print Vouchers and file them off-line
(considering that confusion can be created as to the exact moment when a transaction is
approved if these documents are also printed and signed physically). For UNHCR’s accounting
purposes, it is the MSRP record which represents the legal evidence on the authority who
prepared and then approved a transaction.
For additional information, refer to Section on Internal Control Framework and the Delegation
of Authority Plan.
PO Vouchers do not require manual approval, except if invoice date is earlier than PO
dispatch date.
They must pass three system controls according to the order below, before they can be
paid:
• 3-Way Matching.
• Budget Check.
• Document Tolerance Check.
These are system processes that run automatically several times a day.
Upon receipt of invoices from vendors, they must be processed for payment by creating a PO
Voucher in MSRP Finance/Supply Chain application – Accounts Payable module.
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The PO details (vendor name, address and the bank details, payment terms, item description
and quantity, price, chartfield) will automatically be copied from the PO onto the Voucher.
In case of discrepancies (for instance, the invoice is for the partial shipment of the goods
ordered on the PO), the voucher has to be amended to reflect the details of the invoice
(reduce the item quantity and the voucher total).
PO Vouchers register expenditure of funds in the Commitment Control module of MSRP
and creates specific Accounts Payable in the Finance Module (GL).
Warning!
One person cannot both prepare and approve the same voucher. For additional information
on segregation of delegated authorities in MSRP and internal controls in the Procure to Pay
Process refer to Section I of this Manual.
All Payment Vouchers must be supported by appropriate and adequate documentation such
as original or legitimate electronic vendor invoices. Other supporting documentation includes
notes to the file, emails, etc. Where payments are made pursuant to a contract, a copy of the
contract must be attached to the Payment Voucher relating to the first payment. Please refer
to UNHCR/OG/2020/1 Operational Guidelines for Paperless processes including electronic
signatures and online file attachments in MSRP for more details on online attachments in
MSRP.
All PO Vouchers entered with an invoice dated earlier than the PO (dispatch) date will be
channelled in MSRP to a payment approver for review and approval, alerting them that the
‘Invoice date [is] earlier than the PO dispatch date’. The payment approver needs to check the
cause of the irregular sequence of procure to pay events and justify the exception before
approval of the voucher. The result of this review has to be documented in the ‘Comments’
text box at the voucher approval page, in a [mandatory] standardized format using one of seven
reasons for exceptions. All the supporting documentation should also be attached to the
voucher. For additional guidance please refer to the Standard Operating Procedures - Voucher
approval process if invoice date is earlier than PO dispatch date.
Review of prior payments made to the vendor before invoice is processed represents an
important control against duplicate invoice entry. Voucher preparer should check vendors’ s
record before entering each new invoice. MSRP automatically checks against duplicate Invoice
IDs for same supplier hence it is important to be diligent in entering vendor’s invoice number
(exact match with dash/space etc. needs to be paid attention to) upon voucher entry into
MSRP.
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3.9 PO VOUCHERS – 3 WAY MATCHING
3-Way Matching is a systems control process by which information about vendor details,
quantities, value and description of goods or services is compared among the following
documents:
i. PO Voucher;
ii. Receipt;
iii. PO.
3-Way Matching blocks payment and creates a ‘Match Exception’ if it identifies discrepancies.
3-Way Matching is only used on PO Transactions since the 3 documents referred to above
only exist under PO Transactions. The purpose of the 3-Way Matching is to ensure that the
AP Voucher is in accordance with the PO and to ensure that we are not paying for goods or
services that have not been received. The ‘Matching Tables’ in MSRP will track total
goods/services received and will only allow payment for what has been received. When a
‘Matching Exception’ has been created, payment cannot proceed until the ‘Matching Exception’
is resolved, or the ‘Match Exception’ is overridden on-line. If more than one issue is discovered,
several ‘Matching Exceptions’ will be created in MSRP, one for each issue.
3.10 NON-PO VOUCHERS
Non-PO Vouchers are used to settle transactions with a value of less than US$4,000 per
vendor and calendar quarter.
Apart from lower value amounts, the other three Non-PO Voucher transactions are:
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o Instalments to Partners;
o Payments in Advance;
o Staff-related payments.
These transactions often involve large amounts. They are not regular purchase transactions.
Even though they are not put through the PO-Voucher system, a previous process has already
pre-approved their disbursement.
Instalments to Partners – the DOAP includes specific roles for IP Recording Preparer and IP
Recording Approver (replacing Requisition and Purchasing roles).
Payments in Advance – these require written pre-approval prior to payment, and are recorded
separately as Open Items (not expenditure) for tracking purposes.
Staff-related payments – most of these payments (e.g. salary and entitlements) are prepared
and/or approved centrally by Global Payroll Section (GPS) at Headquarters rather than in the
field. The field will often receive the funds and instructions to pay the staff member directly
from headquarters. In this case, many of the controls are exercised at headquarters rather than
at the field level.
Non-PO Voucher transactions are not subject to the 3-way matching in the system as they
enter into MSRP at step 4 (payment stage). Therefore, controls over these types of payments
must be exercised by the Technical and Payment Approver. Refer to part 3.12 and 3.13 below
for information on the role and controls exercised by both Approver.
All payments to be debited against an operational project must be accompanied by a payment
request duly completed and signed by the Authorising Officer responsible for the
implementation of the respective project (usually the Programme Officer in the Country
Office).
Payment Vouchers must be accompanied by formal supporting documentation. 8 When no
formal supporting documentation is available, a Note for the File indicating the justification for
payment should be prepared and signed by the Payee and the Authorizing Officer. In principle,
for all Non-PO transactions, the authorization for spending should be obtained and
documented before committing the organization i.e. before the purchase is made. This pre-
authorization should be duly documented and should contain all relevant details of the
purchase (i.e. supplier name, items of goods or description of services, quantities, price, delivery
terms), requestor’s information and the authorization of the budget owner. Upon the
finalization of purchasing process, this approval documentation should be submitted to the
voucher preparer together with other supporting documentation such as invoices, relevant
email correspondences and a mandatory written receipt confirmation by the receiver. In MSRP,
an explanatory justification should be indicated on the Payment Voucher (in the 30-character
Invoice Line description field or in an attachment to the voucher if a longer comment is
needed).
8
Please refer to UNHCR/OG/2020/1 Operational Guidelines for Paperless processes including electronic
signatures and online file attachments in MSRP for more details on online attachments in MSRP.
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For project instalments to partners, an electronic copy of each Partnership Agreement and
Annexes concluded by a Country Office with a Partner under the authority delegated to the
Head of Office must be attached to the original Non-PO Payment Voucher documenting the
first payment.
Non-Purchase Order (Non-PO) Transactions:

• Apply to lower value purchases (below US$4,000 to the same vendor within one
calendar quarter in the field and headquarters).
• Staff-related payments.
• Partnership transactions.
• Payments in Advance.
The first three functional steps (Approve Spending/Approve Purchase/Confirm delivery and
their related controls) of the expenditure cycle are performed outside of MSRP, through
manual documents and approvals.
MSRP documents are created from the 4th step (approve payment).
3.11 NON-PO VOUCHER PREPARER

Requests for payment are received and entered into the System in the form of a Non-PO AP
Vouchers by the Voucher Preparer.
In the expenditure process of a Non-PO Voucher, the first three steps are performed off-line.
The voucher preparer is fully responsible for collecting all relevant documentation to support
receipting of goods/services and attaching electronically to MSRP (emails, templates,
contracts, etc.).
The first step that is performed online in the MSRP is the Preparation of the Non-PO AP
Voucher. This step is the responsibility of the Voucher Preparer, who should create the
Voucher in MSRP in due time to meet the payment deadline.
The Voucher Preparer checks the accuracy of the payment request and its conformity with
existing rules and procedures. The Voucher Preparer is fully responsible for collecting all
relevant documentation to support the payment including pre-authorization and the
mandatory written receipt confirmation of goods/services and attaching those electronically
to MSRP (emails, templates, contracts, etc.). At this stage, chartfields should be correctly coded
and the vendor and vendor bank data should be consistent with the vendor data register.
Review of prior payments made to the vendor before invoice is processed represents an
important control against duplicate invoice entry. Voucher preparer should check vendors’ s
record before entering each new invoice. MSRP automatically checks against duplicate Invoice
IDs for same vendor hence it is important to be diligent in entering vendor’s invoice number
(exact match with dash/space etc. needs to be paid attention to) upon voucher entry into
MSRP.
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Once created, the Non-PO Voucher is routed to the Technical Approver and the Payment
Approver automatically.
3.12 TECHNICAL APPROVER

An automated AP Voucher Workflow routes the AP Voucher to a Technical Approver who
checks that the AP Voucher is properly prepared and can be paid.
Technical Approvers review Vouchers for correctness and completeness of the payment
information, including chartfields, and the vendor information.
Main Tasks of the Functional Role ‘Technical Approver’:

• The Technical Approver is primarily checking the details of the AP Voucher to enable
the Pay Cycle Manager to Execute Payment without difficulty. S/he is checking the
Bank and Vendor details.
• S/he is not expected to review the legitimacy of the payment itself or the amount being
charged (this responsibility lies with the Payment Approver Role). As such, the
Technical Approver does not need to review the supporting documents, provided the
AP Voucher itself is correctly prepared.
• Any corrections should be routed back to the Voucher Preparer who should prepare
the adjustment under the guidance of the Technical Approver.
• The Technical Approver should review the Preparer's Comments tab for any special
instructions and explanations, or ensure that any previously requested corrections have
been made.
• The Pay To Details is one of the most important tabs to be checked by the Technical
Approver.
• The Technical Approver checks that there is a valid-looking SWIFT or US routing code
or that the banking details meet other local requirements.
• If the Pay To Vendor Bank Account is in a country in Europe, or any other country that
uses the IBAN code, the Technical Approver checks that the Bank Account number has
a properly structured IBAN code against the IBAN structure guide in the MSRP. If not,
then Technical Approver recycles and asks the preparer to ensure that the Vendor Bank
Account details on the Vendor are changed appropriately
If there are errors, the Technical Approver identifies the corrections required and returns the
Voucher to the Voucher Preparer. The Technical Approver ‘recycles’ the Voucher with
comments, for correction by the Voucher Preparer.
The Technical Approver must approve the AP Voucher on-line before it is automatically routed
by the system to the Payment Approver.
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Technical Approval (performed by a designated staff member in the DOAP):

• Checks the voucher payment method (which UNHCR bank account is used, if
check or EFT is selected).
• Checks vendor bank information.
Payment Approval (performed by a designated staff member in the DOAP):
• Checks validity of the payment.

• Compares voucher details to original invoice and/or other documentation.
Budget Check (system process):
• Checks if chartfields are valid and sufficient budget is available.
3.13 PAYMENT APPROVER

The action ‘Approve a Voucher’ is only necessary when handling Non-PO Vouchers,
prepayments or in case when a Non-PO line is used on a PO Voucher.
Once the Technical Approver approves the AP Voucher, AP Voucher Workflow routes it to the
Payment Approver.
The Payment Approver must confirm that the payment is due, accepts the charge against the
relevant budget by approving the Voucher on-line and approves the disbursement of cash by
approving the AP Voucher. The Payment Approver ensures that the payment is legitimate,
supported by proper documentation, and has not been paid beforehand.
The AP Voucher is then automatically Budget Checked through the system, posted, and made
ready for the Pay Cycle (Function 5, Execute Payment).
Warning!
The Payment Approver must not approve payments where the person is also the Payee.
The Payment Approver should not primarily focus on checking the details of the AP Voucher
including Bank and Vendor details. This is the responsibility of the Technical Approver. When
there are issues with the payment, Payment Approver may return the AP Voucher to the
Preparer with appropriate comments for corrections.
Voucher Preparer makes corrections and resubmits the AP Voucher to Payment Approver.
After the Approval, the Voucher enters the automatic budget-checking process. If it is
successfully budget-checked, it will be posted and be ready for the Pay Cycle.
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Payment Approvers may also ‘Recycle’ or ‘Deny’ a Voucher. In these cases, they must give
appropriate reasons in the Comments tab so that it is clear to the Voucher Preparer why the
Voucher was not approved.
Warning!
Country Offices should ensure that there are no vouchers in MSRP pending approval and
no payment pending in the Pay Cycle at month-end.
3.14 EXECUTE PAYMENTS AND PAY CYCLE

Execute Payment is the fifth and last step in Procure-to-Pay Process. Once the Payment
Vouchers have been approved in MSRP, they are routed through automated workflows to
another process for payment.
The Payment Instructions, whether for electronic or cheque payments, are generated via an
MSRP process called Pay Cycle.
Pay Cycle is an MSRP process by which a staff member, authorized under the DOAP as a Pay
Cycle Manager, gives authorization in the system to effect or hold payments of previously
validated Payment Vouchers.
Pay Cycle Manager is a technical role (checking the correct currency, funds in the bank account
and banking details) to process payments. This role has no authority to change payment details
in the Payment Voucher.
The Pay Cycle process in MSRP automatically generates an output in a PDF format that sets
out payment details including the payee name, bank account number, currency and amount.
The Pay Cycle Manager:
• Selects Vouchers that are eligible and due for payment by a given UNHCR bank;
• Creates the EFT (Electronic Fund Transfers) and CHK (Cheque Payments), assigns a
Payment Reference number to each payment that will eventually appear on the bank
statement;
• Generates a report on the EFT and Cheque Payments. The creating and printing of Bank
Advice Letters (payment orders) and the Remittance Advice Letters (deposit advice) is
presented by a separate topic, namely, Issue Bank Letters and Electronic Fund Transfer.
Payment instructions sent to UNHCR’s bank must exactly match the output from the Pay
Cycle.
Warning!
No payment should ever be made from a UNHCR bank account without a corresponding
voucher having passed through the Pay Cycle in MSRP.
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4 MANAGEMENT OF PARTNERSHIP RELATED TRANSACTIONS

This Section describes the financial management of Projects implemented by Partners with
UNHCR funds. However, the management of agreements with Partners covers aspects that
are not solely of a financial nature. Therefore, must be read in conjunction with the UNHCR
Programme Manual (Chapter 4 of the UNHCR Manual), Part 2-Section 2.4 Implementation, for
information on the operational management of Projects implemented by Partners and UNHCR
Partnership Handbook.
As per Article 8 of the Financial Rules for Voluntary Funds Administered by the High
Commissioner for Refugees, “Whenever possible and appropriate, the implementation of
programmes and projects will be entrusted to implementing partners, private firms or individual
experts.” The Financial Rules of UNHCR define implementing partners as “an entity to which
UNHCR has entrusted the implementation of programmes and projects specified in a signed
document, along with the assumption of full responsibility and accountability for the effective
use of resources and the delivery of outputs as set forth in such a document. The entity could
be a governmental, intergovernmental or non-governmental body, a United Nations
organization, or another non-profit organization.”
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Heads of Office must:

• Ensure that a rigorous Partner selection process is conducted in a transparent,
objective, timely manner and in accordance with IOM/052-FOM/052/2013 -
Selection and Retention of Partners for Partnership Agreements.
• Ensure that a Multi-Functional Team (MFT) approach is in place for managing the
partnerships.
• Ensure proper and timely negotiation, preparation and signature of partnership
agreements with partners.
• Ensure the funds disbursements to Partners are in line with the agreed budget in the
agreement and payment of instalments are based on the work plan, partner
performance, progress of project implementation, availability of funds, and cash
liquidity requirements (cash with partner and cash needs for next implementation
period).
• Consider the banking risks, and avoid large amounts of funds transferred to partners
sitting idly with the Partner and its bank.
• Review financial and project performance reports, and take the required measures
to improve the management of resources, project implementation and partnership
management.
• Review all unreported balances to ensure that they are current and consistent with
the ongoing project period.
• Ensure proper management of the Project Audit, review its findings and take the
required mitigation measures to address them and identified risks.
4.1 PARTNERSHIP AGREEMENTS

Partnership Agreements (PAs) between UNHCR and a Partner, whereby UNHCR contributes
funds and other resources for specific project/programmatic activities and the Partner assumes
full responsibility for the delivery of agreed results/outputs as well as accountability to UNHCR
for the effective use of resources, are legally binding documents (see UNHCR Financial Rules).
PAs stipulate the terms of engagement and termination, expected results, obligations,
responsibilities and accountabilities of the parties.
Such a relationship is guided by the Principles of Partnership and shared common values and
humanitarian principles and common objectives.
Various Agreement templates, tailored to suit the specific nature of the partnerships, are made
available in MSRP It is therefore very important to select the appropriate template when
entering into an Agreement with a specific Partner, and for a specific project/programme.
PAs should not be used for administrative services, commercial contracts, and personnel
secondments, except for the deployment of personnel for protection and resettlement.
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It is extremely important to establish a clear work plan in the PA, with a realistic timeframe and
budget allocations for specific activities, in order to ensure that projects are properly designed
to achieve their desired results and facilitate monitoring of project implementation and
assessment of deliveries against project objectives.
Agreements created through MSRP are the only authorized formats for transferring funds to a
Partner.
Country Offices may use a Letter of Mutual Intent
Heads of Office or the officially (LOMI), which is a simplified start-up Agreement for
delegated officer should sign urgent situations and operational exigencies, be it in
all Partnership Agreements, emergency or regular operations, allowing to jump-
after careful review of the start implementation of activities and the release of
stipulations in the document funds through a single instalment to address urgent
that give assurance that the interventions as stand-alone, or as a bridge, while the
Partnership Agreement is
standard Agreement is negotiated and concluded.
comprehensive, clear and
implementable in relation to Once the relevant Agreement enters into effect, the
the objectives pursued by their LOMI must be integrated into the main Agreement.
The terms of the LOMI shall be superseded and
replaced by the terms of the signed Agreement.
Prior to signing a PA, Operations in the Field must ensure that:

a) Partner selection has been carried out in accordance with IOM/052-FOM/052/2013 -
Selection and Retention of Partners for Partnership Agreements and Implementing
Partnership Management Guidance Note No.1:
b) The Partner is registered in the Partner Portal, the
From a budgetary MSRP Partner Code has been assigned, and the Vendor
management registration is correct and complete, including the official
perspective, instalments banking details held by the Partner as stipulated in the
paid to Partners are Partnership Agreement;
classified as
c) The Partner, if engaged in procurement under the
expenditures when
disbursed, during the Partnership Agreement, complies with the requirements
Budget Year. of the UNHCR/AI/2018/1 - Administrative Instruction
on Procurement by Partners under Partnership
Agreements and with Implementing Partnership
Management Guidance Note No.4, Rev. 1) on Procurement by Partners under
Partnership Agreement;
d) The project under the Agreement is in line with the Operations Plan in Focus and the
project budget is within the approved Operating Level (OL).
For detailed guidance on PAs refer to:
Part 2, Section 2.4.7 Implementing Partnerships of the UNHCR Programme Manual(Chapter 4
of the UNHCR Manual), Implementing Partnership Management Guidance Note No. 2 (for
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partners), UNHCR/AI/2017/16 - Administrative Instruction on Management of UNHCR-

Funded Partnership Agreements and DSPR/IMAS intranet page.
4.2 EXPENSE RECOGNITION
UNHCR recognizes an expense at the same time that revenue accrues to the Partner. When
funds, goods or property (PPE or STIs) are transferred to the Project, UNHCR will continue to
recognize an expense or an asset depending on the nature of the transfer and the conditions
under the agreement between UNHCR and the Partner. UNHCR procured Assets (in-kind)
provided to a Partner under a Right of Use (RoU) Agreement will remain recognized as UNHCR
Assets.
The following journal entry is recorded when the IP Project Agreement is signed by all parties
to reflect the agreed first instalment:
DR: 617000 IP Instalment Expense

CR: 410001 Accounts Payable
The Accounts Payable journal entry (credit) is automatically generated by MSRP. Once UNHCR
has transferred the funds for the first instalment to the Partner, the liability is settled and the
following journal entry is made:
DR: 410001 Accounts Payable
CR: 1xxxxx Asset (Cash/Bank)
The Accounts Payable journal entry (debit) is automatically generated by MSRP.
Subsequent instalment payments to a Partner may be paid, provided that previously received
funds have been spent in accordance with the terms in the PA and funds are available. When
these terms are met, subsequent instalment payments are recognized at the time of payment.
DR: 617000 IP Instalment Expense
CR: 1xxxxx Asset (Cash / Bank)
Upon certification and approval of project financial reports submitted by the Partner (see 4.4
below), financial information contained in the approved Project Financial Reports (PFRs) must
be entered into MSRP by reclassifying the initially recognized instalment expense to specific
expense account codes as defined by the PFR. To reclassify the expenses, the following journal
entry is entered:
DR: 6xxxxx Expense
CR: 618000 Partner Expenditure against Instalments
Regarding the chartfield combination for the Expense (debit) side, PFRs are entered into the
UNHCR GL (MSRP) through a Microsoft Excel spreadsheet journal import process. The
accounting journal lines, i.e. the reclassification of expenses to specific expense accounts, are
automatically generated by this journal import process.
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4.3 FIRST INSTALMENT AND ACCOUNTS PAYABLE TO PARTNERS

Country Offices should negotiate with partners and conclude agreements well in advance and
release funds in a timely manner to ensure smooth implementation of the project.
Upon signature of the Partnership Agreement by all the parties, UNHCR must recognize a
liability and an expense for the first instalment, which according to the terms of the Agreement
should be transferred by UNHCR within 10
days of signature of the Agreement. The
It is important to ensure that the
payment of the first instalment is an obligation
accounting and invoice date of
on the UNHCR side. AP Vouchers for the first
the AP Voucher for the first
instalment correspond to the instalment should, therefore, be entered into
date of the last signature of the MSRP once the Agreement is signed by the
Agreement. respective parties. The accounting and invoice
date of the AP Voucher should correspond to
All subsequent instalments are the signature date of the Agreement.
expensed upon payment and the
accounting date recorded in the Regarding budget, the first instalment will be
payment voucher should be the recorded as an expenditure in the
date when the payment is made. Commitment Control module of MSRP in the
budget period that is covered by the
Agreement.
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Before disbursing the first instalment, Programme Officers and IP Preparers (as per DOAP)
must:
• Exercise quality assurance and due diligence before signature, to ensure that there
are adequate budget provisions and the correct accounting recording.
• Verify sufficient budget under authorized OL is available, prior to entering into the
Agreement.
• Ensure that the Agreement has been created in MSRP, and all relevant annexes are
attached to the Agreement.
• Verify that the Agreement is signed by all parties.

• Ensure that there is availability of budget and funds for payment of the first
instalment.
• Ensure that the Agreement has been recorded and approved in MSRP as per UNHCR
DOAP.
• Ensure the recording of the instalment payments in MSRP is done in the correct
financial period.
• Maintain proper records and retain original copies of the Agreement in eSAFE in line
with applicable guidelines for retention of documents and archiving.
Disbursements of instalments other than the first one will be recognized as an expense when
paid, and are conditional on:
• Availability of funds allocated to the project;

• Certification and approval of project performance and financial reports regarding
previous instalments;
• Performance progress against the work plan and delivery targets;

• Potential risks related to the transfer of funds;
• Cash flow and resources requirements for the following months.
When the Agreement is signed by all parties and the first instalment is released to the partner
in the preceding year (for example, Agreement for budget year 2018 was signed and the first
instalment was released before the end of 2017), the amount released to the partner is
considered as a ‘prepayment’. Accordingly, AP Vouchers for the first instalment paid in the
preceding year must be recorded to debit account 320008 Prepaid IP Instalment. In the
following year, the adjustment journal voucher with journal date 1 January should be raised to
credit account 320008 and debit 617000 with the corresponding amount.
Project instalments are paid through Non-PO Vouchers. To correctly reflect the project
deliverables related to the instalment, instalments should be recorded at the output level. In
addition to the normal routine verifications related to Non-PO Vouchers, Technical Approvers
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must ensure that an original, verified, certified and approved PFR supports the Voucher. Refer
to parts 3.8 and 3.10 above related to Non-PO Vouchers and Technical Approvers.
For additional guidance on the accounting treatment and financial disclosure of funds
transferred to Partners refer to IOM/095-FOM/096/2012 - UNHCR Accounting Policy and
Procedures on Implementing Partner Transactions.
4.4 PROJECT FINANCIAL REPORTS (PFR)
In accordance with the Agreement, Partners are required to submit periodic financial and
performance reports to UNHCR to account for the use of funds received from UNHCR and
delivery of the expected results on the basis of the signed Partnership Agreement.
The PFR shows the authorized budget/spending levels as well as the cumulative expenses and
new expenses made by the Partner since the last report. A sample report is presented below.
PMC-07a: Sample Project Financial Report (budget versus expenditure analysis)
Reporting period from: 01/12/2016 to: 31/12/2016 PKR

Report Date: 31/01/2017 PAK ABC
Operation: Currency:
Cost Centre: BU/Agreement No: Run Date:
Instalment(s) Accumulative Expenses as % of

released as at Expenses Budget %
Unused Implementatio
Description Account Budget up to up to Budget Balance New Expenses Remarks
instalment n Rate Against
30/11/2016 30/11/2016 30/11/2016 Total Budget
4JH Shelter and infrastructure improved

PETROL, DIESEL AND OTHER LUBRICANTS FOR VEHICLES 606130 360,000.00 259,569.00 72% 100,431.00 100,431.00 100%
OTHER SUPPLIES, MATERIALS, GOODS 608998 180,000.00 158,295.00 88% 21,705.00 21,484.00 100%
AUDITOR FEES 610040 120,000.00 87,500.00 73% 32,500.00 31,579.00 99%
TENDERING, DRAFTING FEES 610420 120,000.00 22,500.00 19% 97,500.00 94,850.00 98%
TRANSPORT CONTRACT 610460 1,525,000.00 894,468.00 59% 630,532.00 645,601.00 101%
OTHER LABOUR COSTS 613998 600,000.00 250,000.00 42% 350,000.00 340,000.00 98%
IMPLEMENTING PARTNER NATIONAL PERSONNEL COSTS 614020 2,649,000.00 2,809,086.00 106% -160,086.00 -400.00 106% The budget line is overspent by 6%: ask for justification.
IMPLEMENTING PARTNER TRAVEL COSTS 614050 180,000.00 36,429.00 20% 143,571.00 143,571.00 100%
Impl ementi ng Pa rtner Tra i ni ng Cos ts 614065 158,000.00 0.00 0% 158,000.00 157,955.00 100%
RENTAL OF OFFICE PREMISES 624110 292,500.00 341,250.00 117% -48,750.00 90,000.00 147% The budget line is overspent by 47%: ask for justification.
UTILITIES (ELECTRICITY, WATER, ETC.) 624260 75,000.00 85,485.00 114% -10,485.00 21,365.00 142% The budget line is overspent by 42%, ask for justification.
COMMUNICATION COSTS (TELEX, TELEPHONE, ETC.) 624491 60,000.00 1,000.00 2% 59,000.00 59,000.00 100%
SUPPLIES AND MATERIALS 625150 375,000.00 6,952.00 2% 368,048.00 367,294.00 100%

FURNITURE AND FIXTURES 626110 250,000.00 84,328.00 34% 165,672.00 161,372.00 98%
PHOTOCOPY EQUIPMENT 626150 350,000.00 332,000.00 95% 18,000.00 1,000,000.00 381% The budget line is overspent three times! Look for justification.
The Partner has wrongly reported computer equipment cost earlier in the
COMPUTER EQUIPMENT 626215 340,000.00 0.00 0% 340,000.00 0.00 0%
photocopy equipment line, Partner needs to correct its reporting.
The Partner has overspent at output level however below allowable 20%
TOTAL for 4JH 7,634,500.00 7,634,500.00 5,368,862.00 70% 2,265,638.00 3,234,102.00 -968,464.00 113%
flexibility level according to the article 6.11 of Agreement.
4JJ Population has sufficient basic domestic and hygiene items

TRANSPORT CONTRACT 610460 2,300,000.00 1,000,000.00 43% 1,300,000.00 1,000,000.00 87%
OTHER COMMERCIAL CONTRACTS, SERVICES 610998 800,000.00 0.00 0% 800,000.00 300,000.00 38%
IMPLEMENTING PARTNER NATIONAL PERSONNEL COSTS 614020 1,513,500.00 0.00 0% 1,513,500.00 1,213,500.00 80%
COMMUNICATION COSTS (TELEX, TELEPHONE, ETC.) 624491 60,000.00 0.00 0% 60,000.00 43,200.00 72%
TOTAL for 4JJ 4,673,500.00 4,673,500.00 1,000,000.00 21% 3,673,500.00 2,556,700.00 1,116,800.00 76%
GRAND TOTAL 12,308,000.00 12,308,000.00 6,368,862.00 52% 5,939,138.00 5,790,802.00 148,336.00 99%
Income and Expenditure Summary

ACCOUNT ACCOUNT DESCRIPTION EXPENSES
617000 INSTALMENT PAYMENT TO IMPLEMENTING PARTNER 12,308,000.00
618000 IP EXPENDITURES AGAINST INSTALMENTS -12,159,664.00
Grand Total: 148,336.00
Details of Income, Expenditure, and Fund Balance Summary:
(A) La s t i ns ta l ment recei ved from UNHCR: 6,308,000.00 (F) Les s : Tota l Expens es : 12,159,664.00
(B) Previ ous i ns ta l ments recei ved from UNHCR: 6,000,000.00 (G) Fund Ba l a nce due to UNHCR: 148,336.00
(C) Interes t Ea rned: (H) Fund Ba l a nce due from UNHCR: 0.00
(D) Mi s cel l a neous Income:
(E) Tota l Income: (A + B + C + D) 12,308,000.00
Disbursements made by the Partner and reported in the PFR are recorded by UNHCR to
specific expense accounts following the structure of the Project budget.
PFR must be subject to risk-based verification by Programme and Project control.
PFRs must be verified in order to ensure that the reported expenditure is consistent with
operational progress, achievement of objectives and delivered outputs.
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PFRs must be verified by Project Control Officers (or staff designated with this function) in
consultation with the MFT, certified by Programme Officers and approved by the Head of
Office or UNHCR staff with approving delegated authority.
For additional information on project monitoring and verifications refer to Part 2, Section
2.5.8 of the UNHCR Programme Manual (Chapter 4 of the UNHCR Manual) and Risk based
monitoring and Control toolkit on the DSPR/IMAS Intranet site.
4.5 UNHCR CONTRIBUTION TOWARDS PARTNER INTEGRITY CAPACITY AND

SUPPORT COSTS
Payment of UNHCR’s contribution towards Partner Integrity Capacity and Support Costs
(PICSC) to Partner organizations must be stipulated in the Project Budget (Annex B) of the
signed Partnership Agreement.
A Partner qualifies for a UNHCR contribution towards its PICSC when the following criteria is
met:
a) The Partner enters into a Partnership Agreement for undertaking Projects and complies
with its terms and provisions;
b) The Partner is Non-governmental and other Not-for-Profit Partners (both International
and National); and
c) The Partner specifically commits to use the PICSC to cover expenses for enhancing
integrity, accountability, oversight, as well as administrative and other support which
cannot be definitively attributed to a specific activity implements by the Partner in
connection with the projects carried out under a Partnership Agreement.
The financial allocation for the PICSC must be included in the Project Budget (Annex B) of the
Partnership Agreement within the approved Operating Level (OL).
UNHCR disburse its financial allocation for the PICSC as part of each instalment transferred to
the Partner’s bank account specified in the PA.
The amount for PICSC shall be part of instalments transferred to Partner. The actual amount
paid as PICSC is based on the actual expenditure (not the budget). Hence, at the end of the
Project period, the total payment of the PICSC must be adjusted on the basis of the final actual
expenditure of the Project, before the final Project Financial Report (PFR) is submitted.
The Partner receives the allocation and reports for the PICSC as a single budget line (Objective:
811 – Operations Management, Coordination and Support Strengthened and Optimised;
Output 811AH – General project management services provided; Account 611000: Partner
Integrity Capacity and Support Costs), as a contribution towards the overall expenditures
incurred by the Partner under the Project Budget.
The single budget line expenditure reflecting the PICSC is to be reported in the PFR submitted
by the Partner, and is treated as a single budget line without requiring a detailed breakdown
and reporting at an itemized level.
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UNHCR’s contribution towards Partner Integrity Capacity and Support Costs undertaken by
International and National Non-governmental Partners must be calculated and contributed in
accordance with the UNHCR Policy on Project Headquarters Support Costs
(UNHCR/HCP/2014/6/Rev.2 - UNHCR Policy on Contribution towards Partner Integrity
Capacity and Support Costs).
Any deviation from the rates established above must be approved by the Controller or the
delegated official in writing before the PA is signed or at the time UNHCR funding is extended
to the Partner.
The accountability, responsibility and authority for the correct application and implementation
of UNHCR’s contribution towards Partner Integrity Capacity and Support Costs lies with:
a) Heads of Office and/or Deputy Representatives / Heads of Operations/Division
Director: authorized to conclude the PA with partners who are bound to ensure the
application of this policy at the country level;
b) Programme Officers: for budgeting and allocation of the correct amounts for such
costs; and
c) Project Control Officers and other assigned staff: for monitoring and verification of the
proper allocation by UNHCR and expenditure reported by Partners, as the first line of
defence.
Refer to UNHCR/HCP/2014/6/Rev.2 – UNHCR’s Policy on Contribution towards Partner
Integrity Capacity and Support Costs for more information including:
• Requirements;
• Eligibility;
• Disbursement of allocation;
• Calculation methodology;
• Accounting details.
4.6 BANK ACCOUNTS FOR PARTNERSHIP AGREEMENTS
In accordance with the Agreement’s terms and conditions, Partners are required to deposit all
funds received from UNHCR into separately identifiable and preferably interest-bearing
accounts held under the legal name of the Partner, the name as it appears in the Partnership
Agreement.
Partner may use Separate or Pooled Account provided that the contribution accounting is
transparent, traceable and auditable for each transaction and accessible to UNHCR and any
other entity duly authorized by UNHCR. The Partner agrees that any interest earned shall be
credited or apportioned (in accordance with size of UNHCR funds in relation to other funds in
the Pooled Account) to UNHCR.
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Representatives may authorize a Partner to open a non-interest bearing account if this is the
only solution for justified legal or administrative reasons. In this case, a Note for the File must
be signed by the Representative and placed in the Agreement File.
Interest or miscellaneous revenue that has been earned in connection with the implementation
of the project must be reported by the Partner in the PFR.
Where the use of a pool account has been authorized by UNHCR, any interest earned will be
apportioned according to the source of funds and a fair share will be credited to UNHCR.
Interest or miscellaneous revenue that has been earned by the Project account must be
reported by the Partner in the PFR.
UNHCR will collect interest and miscellaneous revenue from Projects by deducting the
corresponding amount from the next instalment, except for interest and miscellaneous revenue
reported with the Final PFR, where these revenues, together with other unspent funds, must
be transferred by the Partner to UNHCR bank accounts, preferably at the same time when it
submits the Final PFR.
UNHCR will record interest or miscellaneous revenue in the following accounts:
741009 – IP Interest Income
769009 – IP Miscellaneous Income
4.7 IMPLEMENTATION AND LIQUIDATION PERIOD
The Project Implementation Period is the timeframe specified in the PA for the implementation
of project activities. The standard end date of project implementation period is 31 December.
Project implementation cannot continue into the next budget year unless officially authorized
by the Controller through DSPR/IMAS review and recommendation.
The Project Liquidation Period is the timeframe during which Partners may pay off
commitments that were entered into during the project implementation period. The liquidation
period should be used by the Partner only to finalize outstanding payments within the project
implementation period (no later than the end of January following the project implementation
period or authorized period). No further payments are permitted after the liquidation period
unless officially authorized by the Controller through DSPR/IMAS review and
recommendation.
Warning!
The following activities are not permitted during the liquidation period:
• Implementation or completion of project activities.

• Entering into new commitments (new commitments will be considered as ineligible
costs).
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Payment of instalments to Partners should be made only within the implementation or

liquidation period (only if committed in advance with a valid PO).
Warning!
Heads of Office must pay special attention and request corrective action in relation to the
following indicators:
• Delayed reporting from Partners.

• Delayed reimbursement of unused balances from Partners at the end of the project.
• Continued execution of prior-year projects in the subsequent year.
4.8 REFUND OF UNSPENT FUNDS AND RECEIVABLES FROM PARTNERS

Any unspent balances, audit recoveries, interest gains and any miscellaneous revenue received
by Partners must be recovered not later than 30 March of the year following the Budget Year
or otherwise at the authorized date, either by collecting the funds or by deducting the dues
from a subsequent instalment payment.
Refunds during the Budget Year are recorded against the account code 617000 – Instalment
Payment to Partner as a reduction of the original instalment amount and can be used again in
the same year.
Refunds relating to prior Budget Year are recorded against account 19000 – Partner Refunds.
Receivables or recoveries from Partners arise from two situations:
a) When Partners do not fully expense all instalment payments received from UNHCR in
a given financial period; and
b) Audit discovery of unjustified expenses.
UNHCR recognizes unspent funds from Partners as a receivable, following the receipt,
verification, certification and approval of the Final PFR signed by both the Partner and UNHCR.
The offsetting entry to the receivable is recorded by DSPR/IMAS as a reduction to account
619200 - Partner Receivable Expense.
If the Partner fails to return the amount set up as a receivable for the unspent funds, the
receivable might be subject to a provision or a write-off (depending on the level of certainty of
recovering the funds).
By the time that UNHCR finalizes its accounts, if any final PFRs are still outstanding, AFS will
record a Journal adjustment to reflect the estimated unspent share of unreported final PFRs.
The adjustment to expense is immediately reversed in the new Year and late PFRs are recorded
by DSPR/IMAS following the usual verification process.
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For project audit recoveries, a reduction to partner expenses is recorded against account
619100 – Partner Audit Recoveries in the financial period when the funds are returned to
UNHCR.
Country Offices must inform DSPR/IMAS and their Regional Bureaux in cases of a delay in the
receipt of unspent balances or when attempts to recover amounts from Partners are
unsuccessful and their reasons.
UNHCR may recover funds paid to Partners for current or prior period projects when certain
expenses are established as being unjustified during the audit process and/or other reviews.
Outstanding balances should be zero by the end of March of the following Budget Year.
Partners should be given the opportunity to provide an explanation when an audit results in
the discovery of unjustified expenses. Where justifications are not satisfactory, Partners should
be required to refund any unjustified expenses.
It is the responsibility of Country Offices/Regional Bureaux/Headquarters Divisions to retain
the original copies of audit reports and management letters for a period of seven years.
(eSAFE).
Acceptance letters or other forms of written acceptance of audit recoveries from Partners
should also be kept on file (eSAFE).
Deposits of Project audit recoveries with clear specification of Agreement number must be
entered in the MSRP AR module upon receipt. The following are the accounts that should be
used in relation to receivables, refunds, write-offs and audit recoveries from Partners:
230001– Implementing Partners Receivable

619000 – Partner Refunds
619100 – Partner Audit Recoveries
619300 – Partner Write-Off
741009 – IP Interest Income
769009 – IP Miscellaneous income
Country Offices, in consultation with DSPR/IMAS, and in accordance with UNHCR procedures
for write-off, should propose the write-off of receivables, where required.
DSPR/IMAS in consultations with Country Offices and AFS must propose at year-end the
allowances and write-offs related to receivables from Partners.
Warning!
A receivable from a Partner that remains uncollected for more than a month after the end
of the project becomes a serious financial risk to UNHCR.
Outstanding balances should be zero by the end of March of the following Budget Year.
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4.9 GOODS AND PROPERTY PROCURED UNDER PARTNERSHIP AGREEMENT

PPE and STI items that have been purchased by Partners with UNHCR funds (Project Goods
and Property) under a PA will be recognized as an expense in UNHCR GL accounts. Such items
should be managed under the terms of the PA.
If Project Goods and Property are transferred by a partner to UNHCR, they will be recorded
as goods in-kind contributions at fair value.
Country Offices should evaluate if PPE items should be procured by the Partner or by UNHCR,
taking into consideration the intended future use or benefit from the PPE item.
If UNHCR intends to recover the PPE item after the conclusion of the project, this should be
procured directly by UNHCR through the normal purchasing process.
4.10 GOODS AND PROPERTY TRANSFERRED BY UNHCR TO PARTNERS
PPE items procured by UNHCR that are provided to a Partner under a Right of Use Agreement
will continue to be recognized as UNHCR assets. UNHCR retains control over these items and
it is likely that these items will render future economic benefit or service potential to the
Organization.
UNHCR Goods and Property that are provided to a Partner under a Transfer of Ownership
Agreement will not be recognized as UNHCR assets, as UNHCR relinquishes control over them.
These items should be managed and monitored in accordance with the terms of the PA.
In case of loss, damage or discrepancies to physical assets (PPE, STIs, Consumables or
Inventories) by Partners, their responsibilities vis-à-vis UNHCR and the reimbursement in case
of loss/damage remain the same as if these items had been lost or damaged by UNHCR. In
such cases, Partners must also follow the applicable procedures.
Regarding PPE with Partners, Heads of Office must ensure that:

• Programme and Supply Officers in coordination with Project Control Officers keep
complete and accurate records of all transfers of PPE to/from Partners.
• PPE items under Right of Use Agreements are entered in MSRP.

• PPE items under Right of Use Agreements are included in Physical Verification and
reconciled to MSRP records.
• PPE items under Transfer of Ownership Agreements or procured by Partners are
not recorded in the Asset Management module of MSRP as UNHCR Assets, but are
tracked through the Partnership Module in MSRP.
• Right of Use Agreements are renewed regularly, as they expire every year,
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4.11 AUDIT OF UNHCR FUNDED PROJECTS

Article 12 of UNHCR’s Financial Rules on Audit stipulates the following:
“All financial transactions and related activities covered by these rules shall be subject to audit
by internal auditors and the United Nations Board of Auditors. Additional external auditors will
be engaged by UNHCR to audit the accounts of implementing partners.”
The audit of projects is performed by UNHCR commissioned external, independent and

certified audit service firms (auditors) and reported to UNHCR senior management, the United
Nations Board of Auditors and other oversight bodies.
The overall management of audit certification including procurement and engagement of

project audit services is centralized with DSPR/IMAS in order to ensure a consistently high
quality of project audits and timely delivery of audit results.
Projects subject to audit are identified by DSPR/IMAS using a risk-based methodology.

Projects are assessed on an annual basis and ranked through risk criteria that include the
following:
a) Operational risks;
b) Project profile and Partner performance risks; and
c) Specific UNHCR management needs and donor requirements (as applicable).
These criteria will factor in other considerations related to UNHCR, Partners and projects such
as performance, internal controls, financial management capacity, project profile and value,
type of operations, length of partnerships, previous audit findings and outstanding
recommendations.
DSPR/IMAS will approve requests from Country Offices, Regional Bureaux and Divisions, who
may also recommend the audit of projects, based on other risks identified at the field level.
Donor’s requests for audit of funded projects will also be considered.
During the first year of engagement, the projects implemented by the new partner will be
audited if the corresponding project value is above a threshold set by DSPR, in consideration
of audit cost efficiency. In this context, a new partner refers to an organisation engaged by
UNHCR for the first time in any of its operations worldwide. It is not necessarily that the
partner is exclusively new to a given UNHCR office.
Moreover, all partners will be covered at least once in every four-year operational cycle, unless
related project value does not meet the audit cost efficiency considerations. The overall
number of projects to be audited globally in a given year will vary based on the risk analysis
and audit cost efficiency considerations.
The cost of project audits will be paid directly to the project auditors from centrally allocated
funds under the DSPR/IMAS budget.
Auditors perform the audit to obtain reasonable assurance about whether the PFR submitted
by the Partner is free from material misstatements and is in accordance with the terms of the
PA.
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The Auditor must provide an Audit Certificate in summary form, consisting of the following:
a) An Audit Report with a clear audit opinion on the Final PFR for each Project, in
accordance with generally accepted auditing standards and formats;
b) A Management Letter reporting on matters related to compliance with the PA; and
c) An Internal Control Questionnaire, to assess the level of internal control systems
maintained by the Partners. The Questionnaire will cover various areas such as cash
management, procurement, sub-contracting, personnel, managing misconduct,
financial and budgetary matters, and compliance with other terms of the PA.
Country Offices must coordinate with Partners to ensure that no scope limitations are imposed
on the auditors in the performance of their audit reviews.
In following up on project audit recommendations, all Country Offices, Regional Bureaux and
HQ’s entities are required to initiate required corrective measures as soon as the final audit
reports are received.
Refer to UNHCR/HCP/2015/5 - UNHCR Policy and Procedures on Risk-Based Project Audit
Approach (Implementing Partnership Management Guidance Note No. 5) and to the UNHCR
Programme Manual (Chapter 4 of the UNHCR Manual) for information on the following:
• Roles and responsibilities;

• Provisions and procedures on risk-based audits;
• Identification of projects subject to audit;
• Designation of project auditors;
• Quality of audit performance;
• Obligations towards Partners;
• Audit fieldwork and report submissions;
• Audit follow-up;
• Budgetary provisions
4.12 CLOSURE OF PROJECTS
Ordinary closure of an Agreement is at the end of the project period as stipulated in the PA.
Project closure is subject to the following conditions:
a) Submission and acceptance of the Final Project Reports (Final Project Performance
Report, Final Project Financial Report, Final Goods and Property Report, and Final
Partner Personnel list);
b) Status of payments due and recovery of unspent funds from Partner is at zero
outstanding balance;
c) Submission of the Project Audit report, if applicable, and confirmation of resolution of
audit observations/recommendations; and
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d) Submission of annual Partnership Feedback Forms, where applicable.
Project closure involves the following activities:

Scan and uploading of final signed PFRs by latest 30 April.
Recovery of unspent balances, Project Goods and Properties (as applicable) by latest 31
March.
Uploading of Project Audit reports, where applicable, into MSRP by latest 30 April.
Operations in the field must send to DSPR/IMAS an e-mail (hqfiipc@unhcr.org) confirmation

of compliance with all pre-requisites of project closure.
4.13 PROJECT CONTROL
Project Control is part of the overall project management and oversight activities carried out
over all projects funded by UNHCR, whether implemented directly by UNHCR or through
partnerships. Refer to Risk based monitoring and Control toolkit for detailed guidance.
Project Control together with Programme in collaboration with multi-functional teams/sector
specialists have the responsibility to develop Project Performance Monitoring Plans, covering
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financial and performance aspects, for individual PAs/Projects implemented both directly by
UNHCR as well as through partnerships.
Project Performance Monitoring Plans should cover the quantitative and qualitative aspects of
projects and must follow a Multi-Functional approach.
In developing Project Performance Monitoring Plans attention should be given to the
consistency between the following elements related to the progress of the project:
a) Operational progress;
b) Timeframe;
c) Financial/Budgetary performance.
PROJECT CONTROL MAIN TASKS
Below are tasks (not roles) that should be carried out by individuals in an MFT approach. These
tasks closely relate to the project management cycle as described in the UNHCR Programme
Manual (Chapter 4 of the UNHCR Manual).
Decisions on the allocation of resources to the
project as well as any changes to the scope of the
Representatives should focus
project (performance and impacts) is the primary
their attention on the three
elements (operational progress, responsibility of Programme. Monitoring how
timeframe and resources are used as well as whether intended
financial/budgetary impacts are reached is the role of both Programme
performance) of quantitative and Project Control.
and qualitative monitoring PFRs must be reviewed in conjunction with Project
process and ensuring value for Performance Reports (PPRs) as project
money is achieved.
expenditures and budget progress must have a
direct correlation with activities and progress
reported for the period.
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PROJECT CONTROL REPORTING LINES
All project control staff, including project control officers in regional positions, should report
directly to the same senior management level as programme staff, in other words, the
Representative, Deputy/Assistant Representative or Head of Office, in accordance with
IOM/105-FOM/106/2012 - Enhancing the Project Control Function.
Project Control Officers must escalate to their supervisors major issues that require resolution,
where the issue remains unresolved after being presented to both UNHCR Programme
Officers and Partners.
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4.14 MANAGEMENT OF PARTNERSHIP RELATED ISSUES - KEY REFERENCES

The management of partnership transactions is part of the Enhanced Framework for
Implementing with Partners. Consult the IMAS intranet page and contact DSPR/IMAS at
epartner@unhcr.org for details of the management of partnerships, including:
• Selection and retention of partners;
• PAs;
• Transfer of funds to partners;
• Management of Goods and Property by partners;
• Procurement by Partners using UNHCR funds;

• Reporting, monitoring, ethics conduct, audit and oversight of projects under
partnership agreements;
• Closure of projects under partnership agreements.
5 FINANCIAL MANAGEMENT OF CASH-BASED INTERVENTIONS

This Section describes the financial management and control measures to support UNHCR’s
Cash-Based Interventions (CBIs). Delivery of cash assistance to beneficiaries must comply with:
• The UNHCR/HCP/2016/3 - Policy on Cash-Based Interventions;

• UNHCR/OG/2015/3 - Operational Guidelines for Cash-Based Interventions in
Displacement Settings;
• UNHCR’s Financial Rules;

• UNHCR/AI/2017/15 - Administrative Instruction on the Financial Procedures for
Cash-Based Interventions;
• Chapter 8 (the UNHCR Supply Manual);

• UNHCR/HCP/2015/6 - Policy on the Protection of Personal Data of Persons of
Concern to UNHCR.
The attention of all staff involved in cash delivery is drawn to UNHCR’s Code of Conduct and
policies and practices on Fraud and Corruption.
5.1 WHAT ARE CASH-BASED INTERVENTIONS?
CBIs are defined in UNHCR “as interventions in which cash or vouchers for goods or services
are provided to refugees and other PoCs on an individual or community basis. The concept
does not include cash or vouchers provided to governments or other state actors or payments
to humanitarian workers or service providers. The term can be used interchangeably with Cash
Based Transfers and Cash Transfer Programming.”
CBIs and in-kind assistance are the principal modalities for delivering assistance and services.
CBIs are a strategic priority for the High Commissioner who expects their systematic use and
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expansion across the organisation. UNHCR has employed CBIs to meet the needs of refugees
and other PoCs since the 1980s. Over the years, UNHCR has been among the pioneering
agencies in the use of cash grants and vouchers. The UNHCR mandate for protection and
solutions and the comprehensive and multi-sector assistance programmes that flow from it
make CBIs a particularly appropriate tool for addressing the needs of refugees and others of
concern, both during displacement and upon return. CBIs are intended to provide refugees,
asylum-seekers, returnees, internally displaced and stateless people greater dignity of choice
in how to meet their needs by providing cash or vouchers to individuals or households.
Designed and delivered appropriately, CBIs can reduce protection risks, facilitate solutions and
improve efficiency and effectiveness in programme delivery. They can also contribute to the
local economy and foster positive relations with host communities.
In light of its comprehensive mandate for protection and solutions, its direct engagement with
and knowledge of its populations of concern and the multi-sectoral nature of its programming,
UNHCR is well placed to use CBIs, particularly Multi-Purpose Grants 9 (MPGs). Pursuant to the
High Commissioner’s pronouncement in 2014 that the expanded and systematic use of CBIs is
a corporate priority, UNHCR is consolidating and scaling up the delivery of CBIs to their fullest
potential in its operations across all regions and sectors. In line with the global recognition of
the value and importance of CBIs in humanitarian responses, UNHCR has made specific
commitments to scale up the use of CBIs and to have doubled by 2020 the amount of funds
programmed for its CBIs.
DRS GCO is responsible for coordination of CBIs within the organization, and is the primary
point of contact for all CBIs operational and programmatic matters and DFAM TCS is the
primary point of contact for all CBIs financial matters.
CBIs is a flexible mechanism for delivery of assistance that enables beneficiaries to prioritize
and meet their needs through existing markets.
Heads of Offices must establish CBIs Multi-Functional Teams in their respective offices
(composed of management, programme, protection, finance, project control, ICT, supply etc.),
that will assume responsibility for CBIs implementation.
Finance Officers in Country Offices should take an active role in the CBIs Multi-Functional
Teams, supporting a comprehensive assessment which includes the review and feasibility of
market mechanisms, banking infrastructure and service providers among other roles in the CBIs
programme cycle as may be required.
9
MPGs refer to regular or one-off cash transfers to a household to cover, fully or partially, a set of basic
and/or recovery needs that span across different sectors (for example shelter, food, education and
livelihoods) and support protection and solutions outcomes. MPGs are by definition unrestricted cash
transfers that place beneficiary choice and prioritization of their own needs at the centre of
programming. They are designed to offer refugees and other PoCs the maximum degree of flexibility,
dignity and efficiency commensurate with their diverse needs and capacities.
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Risks in implementing CBIs, such as – but not limited to – operational and financial risks, should
be identified, assessed and managed. Risk mitigation strategies should be developed and
incorporated into the CBIs design.
CBIs Key Financial Management Principles:
• Timeliness.
• Effectiveness.
• Compliance with rules and regulations.
• Transparency and Accountability: the programmatic and financial delivery of direct
cash assistance must allow for a full audit trail of each transaction.
• Traceability of Funds: the ability to account and report back to donors on every
US$1 that has been channeled through the selected payment mechanism and
modality
5.2 CHOICE OF IMPLEMENTATION METHODS

The two methods of implementation in UNHCR, direct implementation and indirect
implementation through partners, apply also for CBIs delivery. Direct implementation, where
UNHCR delivers CBIs through Financial Service Providers (or less frequently through UNHCR
workforce), is the preferred way of delivering CBIs as per the Policy on Cash-Based
Interventions. Partners may still be engaged for upstream and downstream activities, such as
registration, targeting, sensitisation and monitoring.
Some of the transfer modalities that are available include:
 Beneficiary bank account;
 Cheques, Direct Cash distribution;
 Mobile money/cards;
 Bankcard etc.
The choice of transfer modality should be guided by the UNHCR’s Cash Delivery Mechanism
Assessment Tool (CDMAT). The CDMAT provides guidance on response analysis with decision
trees for each transfer modality and also guidance on financial and programmatic
considerations in selection of a Financial Service Provider (FSP). The choice of transfer modality
should balance benefits (maximize) and risks (minimize).
During the response analysis, other factors like cost-effectiveness and efficiency, market
capacity, risks and skills and capacity, etc. as prescribed in the CBIs operational guidelines and
the Feasibility and Response Analysis toolkit should also be considered.
A CBIs Costing Tool (Annex E of UNHCR/AI/2017/15 – Administrative Instruction on the

Financial Procedures for Cash-Based Interventions) has been developed to facilitate a
comprehensive cost analysis for delivering CBIs with the aim to support budgeting, recording
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and reporting of CBIs-related costs. This Tool is a resource provided to assist operations; its
use is not mandatory. It will enable the assessment of cost parameters in delivering through
the different transfer modalities. The costs to deliver CBIs include: Upstream Costs, Cash
Delivery Costs and Downstream Costs.
ABOD, staff and OPS cost categories should be considered when completing the Cost Model
tool. For consistency, the completed Cost Model tool, together with its parameters and
assumptions, should always be cleared by DFAM TCS.
This tool will help to substantiate relevant CBIs cost parameters for adequate and consistent
budgeting, recording and reporting of CBIs-related costs. It serves to capture and understand
the total costs to deliver CBIs and therefore it informs not only decision-making but also
reporting in regards to the cost-effectiveness and efficiency of CBIs delivery.
5.3 DIRECT IMPLEMENTATION – PHYSICAL CASH DISTRIBUTION TO

BENEFICIARIES BY UNHCR STAFF
Physical distribution of cash to beneficiaries by UNHCR staff is discouraged due to the security
risk that it presents to staff and beneficiaries alike. If operational requirements necessitate the
physical distribution of cash to persons of concern, the process, including the description for
its use and the procedures to be followed, must be documented in a note for the file. Physical
cash distribution must be done through cash account or exceptionally through operational
advances. Petty cash must not be used for CBI cash payments. Should operational
requirements necessitate its use, prior authorization is required, by way of a memorandum
addressed to the Controller, describing the reasons for its use and the procedures that will be
followed.
If use of a cash account is authorized, adequate controls must be in place to safeguard the
cash, the recipients and those involved in cash distribution.
Petty cash must not be used for CBIs cash payments!

The Head of Office must ensure all security arrangements are in place to mitigate the risks
involved in cash distribution.
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5.4 DIRECT IMPLEMENTATION THROUGH A

FINANCIAL SERVICE PROVIDER FSP procurement is subject to the
Direct implementation through an FSP is when the review and mandatory technical
provider handles the direct distribution of cash to the clearance of solicitation documents by
PS, DRS/GCO, DFAM/TCS and LAS.
beneficiaries through bank accounts, bank card, SIM
DRS/GCO and DFAM participate in
cards or cash over the counter at the FSP for
technical evaluations, and PS participate
encashment. The selection of an FSP, including banks,
in the commercial evaluations. DFAM
must be done undertaken in accordance with UNHCR’s
performs due diligence of the FSP’s
procurement regulations, rules and procedures
ability to deliver in compliance with
governing the CoC. If CBI services are to be delivered regulatory requirements, that FSP
by the bank that provides UNHCR’s operational bank systems and processes capability
services, contracting for such additional services must provide transactional traceability, for
still follow the procurement process, including the clearing the submission to LCC, RCC or
clearance and approval procedures. These procedures HCC for the award of contract. All
require the issuance of solicitation documents, such as agreements with FSPs require clearance
an RFQ, RFP, Invitation to Bid (including the definition by DFAM and LAS prior to signature.
of technical specifications, acceptance of General Specific contractual issues should be
Conditions, and tender evaluation procedures), and raised with LAS and PS. Periodic
negotiation with the FSP of specific contract terms, reviews should be conducted to assess
conditions, and obligations of the parties. The the FSP performance against the
procedures for identifying and selecting service specific performance indicators in the
providers are covered by Chapter 8 (UNHCR Supply Agreement with the FSP. The vendor
Manual), Part 2. When applying the relevant purchasing evaluation process and guidance on
how to deal with non-satisfactory
procedures, the ‘contract value’ refers to the service
performance is guided by the vendor
fees and charges to the FSP, and does not include the
evaluation procedures specified in
expected payments to beneficiaries through the FSP.
Chapter 8 (UNHCR Supply Manual).
5.5 IMPLEMENTATION THROUGH PARTNERS

According to the Policy on Cash-Based Interventions (UNHCR/HCP/2016/3), “UNHCR
operations will, wherever feasible, use direct transfer arrangements for delivering cash
assistance to refugees and other PoCs and rely on private sector financial and mobile cash
transfer innovations and capabilities.” When the Country Office decides to distribute cash
through a partner, the selection must follow the procedures as described in IOM/052–
FOM/052/2013 - Selection and Retention of Partners for Project Partnership Agreements.
The selected partner must have a proven capacity and competency in delivering CBIs.
Implementation of CBIs is guided by the Partnership Agreement (PA), with the partner’s
responsibilities clearly described therein. The partner will only release payments to PoCs when
the Project Description and the Project Budget of PA so provides.
The partner shall establish procedures, criteria and financial controls for cash assistance, in
accordance with UNHCR’s financial policy and in consultation with UNHCR, which assures:
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a. Full traceability of funds and creation of an audit trail;

b. Appropriate controls on key steps of the implementation process such as the generation
of distribution lists, assigning signatories and releasing payments;
c. A system for monitoring CBIs transfers to ensure compliance with the agreed procedure
to confirm proper end-use of the CBIs transfer;
d. A system for tracking, recording and reporting transactions, including statements of fees
for FSP services, and evidence of the release to and receipt by the PoCs of the card and
PIN, SIM, bank account or cash; and
e. Information on distribution statistics, including a summary statement with the periodic

Project Performance Report.
The processing of documents and transactions will conform to established practice.
The Partner bank charges (Non-CBIs) must be recorded in account 639100 “Bank Charges –
Partners”, separately from the CBIs FSP bank charges that are recorded to 639150 “UNHCR
Bank Accounts for CBI (Direct cash payment to Beneficiaries)”.
5.6 COMMON ARRANGEMENTS WITH OTHER UN AGENCIES FOR CBIs
DELIVERY
In line with UNHCR/HCP/2016/3 Policy on Cash-Based Interventions, “the organization will
work with partners, governments, private sector and donors to develop and promote common
cash transfer arrangements to ensure service provisions for CBIs are accessible to all
humanitarian partners.” Agreements defining the working arrangements between agencies
take numerous forms and are context-specific.
Country Offices should inform Headquarters (DRS/GCO) at the onset of discussions with other
UN Agencies or NGOs to obtain guidance and support. All inter-agency/NGOs/Partner
agreements regarding CBIs must be reviewed by LAS, DFAM/TCS, and DRS/GCO and
clearance given prior to signing by the Country Office.
5.7 MSRP FOR CBIs
UNHCR has a dedicated CBIs Business Unit in MSRP. The nMSRP processes and procedures
support financial and internal controls for CBIs by having specific workflows embedded that
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are built into MSRP for CBIs transactions. The processes are based on accounting principles to
have traceability and accountability for CBIs derived from commitment to payment: Funding
Planning (Requisitions); Funding Commitment (Purchase Orders); Payment; and Financial
Receipting and Reconciliation.
Some critical Non-MSRP functions and roles such as the preparation, approval and
authorization of the distribution list and release of electronic payment files to the FSP, must be
adequately managed through functional segregation of duties in all systems and processes.
The process and procedures for CBIs transactions are covered in detail in Annex B: MSRP
Processes and Accounting Transactions for CBIs Delivery and; Annex B II: CBIs Transaction
Process Overview of UNHCR/AI/2017/15 – Administrative Instruction on the Financial
Procedures for Cash-Based Interventions. These detailed MSRP processes and transaction for
CBIs have been visualized and the overview presented in Annex B II that can be read together
with the steps in the process below.
REQs, POs, Non-PO Vouchers, PO Vouchers and Receipts are processed in MSRP in the same
standard manner irrespective of the business unit. For CBIs a dedicated Business Unit (BU)
exists to systematically manage CBIs delivery. The main purpose of having a dedicated BU is
to create a unique workflow for preparers and approvers. In addition, these processes have
specific CBIs relevant roles to ensure adequate segregation of duties for the delivery of CBIs.
Each country office has a separate BU for CBIs with an ISO 2 letter country code followed by
CBIs e.g. GRCBI for Greece; LBCBI for Lebanon; JOCBI for Jordan and so forth.
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5.7.1 THE CBIs ACCOUNT AND ITEM CODES

There are 16 GL 6-digit cash (CBIs) account codes with corresponding Item IDs. The summary
of these codes is provided in the table below. It should be noted that the budget guidelines
issued annually will contain the current account codes and therefore offices should check if
there are any changes or updates to the account codes in these guidelines.
GL Account GL Account Description Item ID Item ID Description
Code
611150 CBI Cash Assistance to Beneficiaries for 7767 CBI CASH FOR BASIC
Basic Needs (Multipurpose) NEEDS
(MULTIPURPOSE)
611250 CBI Cash Assistance to Beneficiaries for 8158 CBI CASH FOR
Shelter, Housing SHELTER, HOUSING
611350 CBI Cash Assistance to Beneficiaries for 8159 CBI CASH FOR FOOD
Food
Winterization WINTERIZATION
Energy ENERGY
612440 CBI Cash Assistance to Beneficiaries - 8162 CBI CASH FOR

Education EDUCATION

Voluntary Repatriation Needs VOLUNTARY
REPATRIATION

Resettlement Needs RESETTLEMENT
NEEDS

Hygiene, Sanitation Needs HYGIENE,
SANITATION NEEDS

Livelihoods and Business Grants LIVELIHOODS AND
BUSINESS GRANTS

Training (Livelihoods) TRAINING
(LIVELIHOODS)
612680 CBI Cash Assistance to Beneficiaries - Water 8169 CBI CASH FOR
WATER
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612720 CBI Cash Assistance to Beneficiaries - Cash- 8170 CBI CASH-FOR-

for-Work WORK
Health HEALTH
Documentation (Visa, ID, Permit, etc.) DOCUMENTATION
(VISA, ID, PERMIT,
ETC.)
619150 CBI Cash Assistance to Beneficiaries - Other 8173 CBI CASH FOR
OTHER ASSISTANCE
639150 CBI BANK CHARGES - UNHCR BANK 8113 CBI BANK CHARGES -
ACCOUNTS FOR CBI (DIRECT CASH UNHCR BANK
PAYMENT TO BENEFICIARIES) ACCOUNTS FOR CBI
(DIRECT CASH
PAYMENT TO
BENEFICIARIES)
5.7.2 MSRP DOAP

The Country Office MSRP DOAP includes the CBIs roles and MSRP routes actions to the
individuals specified in the DOAP. Annex H: MSRP DOAP Role Definition of
UNHCR/AI/2017/15 AI on the Financial Procedures for Cash-Based Interventions explains
the MSRP DOAP Roles which are CBIs specific:
 CBI Requisition Preparers;
 CBI Requisition Approvers;
 CBI PO Preparer;
 CBI PO Approver;
 CBI Receiver;
 CBI Voucher Preparer;
 CBI Payment Approver;
 CBI Bank Signatory.
5.7.3 DOCUMENTATION
All documents (including supporting documents such as approved cash plans) used to prepare
POs and prepayments relating to the cash assistance programme should be kept safely for
audit purposes. The supporting documents can also be attached to the POs and Non-PO
Vouchers in MSRP and electronically saved for ease of reference.
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The responsibility and accountability related to filing documents for each disbursement are on
the responsible unit processing and handling the functions in question e.g. filing the supporting
documents for raising the PO is the responsibility of the unit creating the PO i.e. PO Preparer
and PO Approver.
5.7.4 RECONCILIATIONS
Monthly Reconciliation of UNHCR CBIs bank accounts – Dedicated CBIs bank account and
the Main Office Bank account.
A monthly reconciliation of the UNHCR bank account dedicated for CBIs and the Operational
(main) account must be completed and approved in MSRP as part of the month-end
procedures. Upon receipt of the monthly statement from the bank, reconciliation must be done
by the Country Office based on the standard procedures. The bank statement should include
relevant details to facilitate bank reconciliation, such as the sequential number of the payment
list and refunds made as per the contract.
Fees due to FSP are processed in the normal manner using the standard Procure to Pay
functionality through the AP Business Unit. A REQ should be created based on the approved
OL for the estimated amount of the fees for the year. A PO should be raised for the year/period
when an MOU is signed with the FSP. The established CBI Item (8113) linked to GL account -
639150 (BANK CHARGES - UNHCR BANK ACCOUNTS FOR CBI (DIRECT CASH PAYMENT
TO BENEFICIARIES)) for CBIs FSP fees and charges should be used. When an invoice is
received from the FSP (Bank or Non-Bank) (the preferred methodology) the receipting and PO
Voucher processing is to be done in the normal manner. For situations where the CBIs FSP
fees are only picked up upon reconciliation of the bank account, the fees and charges must
also be recorded to the 6 digit GL account for CBIs FSP fees and charges using the appropriate
template. The PO for fees should be separate from the PO for cash entitlement to beneficiaries.
Where some of these costs are being implemented by Partners and/or Contractors the existing
MSRP processes will apply.
Reconciliation of the actual receipt of funds by Beneficiaries/Unclaimed Funds
Upon receipt of an instruction from UNHCR, the FSP releases the funds to the beneficiaries.
The method of release (e.g. transfer to beneficiaries’ bank accounts, uploading ATM cards,
uploading SIM cards) determines the timing and process for this reconciliation and when
refunds (if any) are to be returned to UNHCR. The confirmation from the FSP, which is received
by the Finance Officer, is forwarded to the Cash Team/Programme to perform this
reconciliation. This process can be specific to each CBIs operation and must be detailed in the
SOP and in the MOU with the FSP which is also cleared by DFAM TCS. In cases of virtual
accounts (not owned by the PoCs), any uncollected funds after the specified time period shall
be refunded to UNHCR and a deposit created to apply the funds to reduce the initial
expenditure. When the accounts are owned by the PoCs and financial inclusion is a programme
objective, the PoCs will be informed and the decision taken regarding further transfers to the
beneficiary.
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Once received, if the refund relates to a payment made to the FSP in the current financial
period, the AR deposit credits the chartfields that were originally charged, for example:
Debit: CBI bank Account or Account Receivable FSP: US$100,000
Credit: Budget year: XXXX

PPG: 5LEBA (e.g. in the case of Lebanon)
Sitecode: 1321 (as applicable)
Goal: PD
Cost Centre: 32101 (e.g. in the case of Lebanon)
Implementer: 9032101 (e.g. under direct implementation)
Output: 413AG
Account: 611350 (cash assistance to beneficiaries for
food)
Amount: US$100,000)
Journal Entry Description: to record the refund received from the FSP amounting to
US$100,000, for Cash plan XXX and PO XXX or Open item of the expense initially recorded.
If the refund amount relates to a payment made to the FSP in a previous financial period,
Article 4.5 of the UNHCR Financial Rules for Voluntary Funds administered by the High
Commissioner for Refugees requires an adjustment of prior years’ expenses. Any refunded
amount received after the closure of the financial period will be recognized as miscellaneous
revenue, with credit to account 611650 Cash Assistance to Beneficiaries – Refund from Prior
Year, using the following mandatory chartfields: Cost centre, Budget Year, Situation. GOAL
must be blank and other chartfields are optional.
For example:
Debit: CBI Bank Account or Account Receivable FSP: US$100,000
Credit: Budget year: xxxx

Cost Centre: 32101 (e.g.in the case of Lebanon)
Account: 611650 (CBI Refund from Prior Years)
Situation: 9900 (Annual Budget EXCOM)
Amount: US$100,000
Journal Entry Description: to record the CBIs refund of unwithdrawn beneficiary balances
received from the FSP amounting to US$100,000, paid in the previous year.
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5.7.5 YEAR-END PROCEDURES

As part of the year-end procedures, Country Offices must obtain the authorized bank
statement as at 31 December in order to complete and approve the December CBIs bank
reconciliation by the 15th of the following month. The activities related to CBIs are included in
the Administrative Instruction for Closure of UNHCR Accounts for the year-end issued to the
field.
Every effort should be made to obtain the refunds from the FSP before 31 December for any
amounts not credited to beneficiaries and also for balances not withdrawn that fall within the
time frame specified for refunds where applicable. This ensures that the expense is recognized
in the correct period and minimizes the Prepayment reported at year-end.
Reconciliation of any outstanding Prepayment from FSPs is particularly important at year-end
to ensure that expenses related to CBIs are recognized up to 31 December. Country Offices
should require the FSP to submit a confirmation of any balances not credited to beneficiaries
and any refund requests not actioned as at 31 December. In exceptional cases, if a CBIs
Prepayment remains, this shall be included in the year-end justification report to DFAM/AFS
in accordance with the year-end instructions.
6 SUPPLIES AND CONSUMABLES FOR BENEFICIARIES

Supplies and consumables for beneficiaries when procured are classified as Inventory assets.
Expenses are recognized only when they are distributed. For additional information on the
financial management of inventories refer to Section II, part 8 – Inventories - above.
Supplies and consumables for beneficiaries that are planned to be purchased by UNHCR should
be included under the OPS direct implementation budget, while assets budgeted under PAs
will be procured by Partners directly.
Heads of Office, as well as Programme Officers, are responsible for the management of
supplies and consumables for beneficiaries and for their distribution. Refer to Chapters 4 and
8 of the UNHCR Manual for the operational management of these items.
Heads of Office must ensure that sufficient and effective controls are put in place to ensure
that:
a) Supplies and consumables actually reach the intended beneficiaries;
b) Their offices are able to trace and report back on the use of these items;
c) Reconciliation of the following reports takes place:
i. Quantities distributed to beneficiaries as per Programme requests;
ii. Quantities issued from warehouses as per Bin/stock cards;
iii. Quantities received by beneficiaries as per receipts signed by beneficiaries.
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If there is related revenue (i.e. items are sold or exchanged), the carrying amount of those
inventories will be recognized as an expense in the same period in which the related revenue
is recognized.
Supplies and consumables for beneficiaries are expensed at the distribution point, when the
goods are shipped from the UNHCR warehouse to the Partners performing their
distribution who control and manage the final (last mile) distribution process.
Supplies and consumables for beneficiaries may be donated for relief assistance purposes
through entities that are not Partners. Such inventories will be expensed when the goods
are shipped from the UNHCR warehouse to the entity performing the distribution and
control passes from UNHCR.
7 TRAVEL
Official Travel
There are three requirements before a staff member can leave on
mission:
• Travel Authorization;
• Security clearance;
• Medical clearance.
Failure to comply with these requirements could result in Appendix D 10 coverage being
withdrawn.
IOM/072–FOM/073/2013 - UNHCR Policy on Travel for Official Purposes of 1 December 2013

should be read in conjunction with UNHCR/AI/2017/12 - Administrative Instruction regarding
Selection of Travel Route under Travel Policy.
Heads of Office must ensure that administrative procedures are put in place to ensure that
staff undertaking official travel depart their duty stations only if they have an authorized Travel
Authorization, medical clearance and security clearance.
Medical Clearance
Destination may have diseases that personnel are yet to be exposed to or lack the medical
facilities personnel need for their particular health condition. Therefore, UNHCR has the duty
10
Appendix D to the Staff Rules sets forth the rules which govern compensation in the event of injury
or illness or death which is found to be attributable to the performance of official duties on behalf of the
United Nations (service-incurred). For more details refer to parts 7.3-7.6 of this Section.
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of care to ensure that personnel perform their work safely within that new environment.
Medical Clearance is a mandatory requirement prior to all travels on mission to a duty station
category B, C, D and E (IOM/072–FOM/073/2013 - UNHCR Policy on Travel for Official
Purposes). Medical Clearance is linked to the duty station to be visited. A medical aptitude
certificate (MAC) should be completed online in the MedGate database (MAC online).
Complete the questionnaire as per the instructions.
Security Clearance
Security Clearance is a mandatory requirement prior to all travel for official purposes,
regardless of location (IOM/072–FOM/073/2013 - UNHCR Policy on Travel for Official
Purposes). Official travel within countries or other areas of responsibility also requires security
clearance. It is the responsibility of persons travelling as outlined in the United Nations
Security Management System (UNSMS) Framework for Accountability, to ensure that security
clearance is obtained for all official travel. Colleagues must apply for security clearance through
the TRIP (Travel Request Information Process) System (https://dss.un.org) or via the electronic
Travel Advisory (eTA) application.
The Designated Official (DO) has the delegated authority and responsibility to grant security
clearances for official travel. An exception to this is where the current security risk is ‘Very
High’’ and the Programme Criticality (PC) of an activity is PC1, the security clearance decision
for UN personnel engaged in that activity is not delegated but is made by the USG UNDSS on
behalf of the Secretary-General, following confirmation of the PC level and the acceptance of
the risk to personnel by the Executive Head of the UNSMS organization that employs the
personnel.
A prerequisite for official travel by a UN/UNHCR personnel, is the successful completion of
“BSAFE”. BSAFE is a mandatory online Security training for all UN personnel which is available
in all UN languages. The course is available on UNHCR Learn & Connect (L&C). Upon
completion, personnel should ensure that their TRIP profile is updated with the date of
completion of this training.
UNHCR personnel are responsible for checking the travel advisory when travelling and
completing any other required security training. This for example may include all the core
modules of the Security and Safety Approaches in Field Environment (SSAFE) programme
where it is a requirement as a security risk management measure. The requirement and
completion of SSAFE should also be determined with the country office in advance of the
planned travel. Security clearance may not be approved if SSAFE has not been completed.
When completing TRIP, personnel are reminded and strongly encouraged to register their full
travel itinerary including private deviation. This includes all stops, lay-overs or transfers with
required flight information and updated contact details, not only points of departure and final
destinations. UN personnel travelling are also reminded if there are any changes in the flight
or travel itinerary, the clearance request must be resubmitted.
Updated and detailed contact information during travels is required to enable UNDSS and
UNHCR managers to locate and assist personnel in emergency situations in a timely manner,
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and/or provide timely updates on the security situation and serious security incidents affecting
itinerary, including airport transfers.
Personnel are strongly encouraged to register personal travel, through the security
clearance/TRIP mechanism so that they may receive relevant security information and be
accounted for when travelling.
If personnel experience any difficulties in using the TRIP platform contact UNDSS at
https://dss.un.org/contactus.aspx
7.1 TRAVEL ON OFFICIAL BUSINESS

Heads of Office are responsible for planning travel in a manner that ensures that total expense
remains reasonably within the travel amount foreseen on the ABOD.
Travel on official business includes all travel related to the performance of duties of staff
members. It is administered by each field office and is charged to their respective ABOD.
Travel on official business does not include travel related to staff entitlements (e.g. Home Leave
or Education Grant Travel) or travel related to recruitment, reassignment or repatriation upon
separation.
Extra-regional travel may be charged against a headquarters’ ABOD or occasionally against the
ABOD of another field office. Refer to Section 7 of SAMM for further guidelines.
Refer to the UNHCR SAMM for guidelines related to travel on official business.
Refer to the IOM/072–FOM/073/2013 - UNHCR Policy on Travel for Official Purposes of 1
December 2013 and UNHCR/AI/2017/12 - Administrative Instruction regarding Selection of
Travel Route under Travel Policy for detailed information on the administration of travel
including:
• Authorization for travel for official purposes;

• Travel for official purposes of non-staff members;
• Mode, dates, route and standard of travel;
• Travel time other than on home leave or family visit;

• Deviations from approved mode, dates, route and standard of travel;
• Travel tickets;
• Travel by private vehicle;

• Terminal expenses;
• Daily Subsistence Allowance;
• Miscellaneous travel expenses;
• Travel advances;
• Lump-sum option for travel on home leave, family visit or education grant travel;
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• Illness or accident during travel for official purposes;

• Travel certification;
• Medical clearance;
• Security clearance;
• Travel documents and visas;
• Roles and responsibilities for Travel Authorization.

7.2 TRAVEL ENTITLEMENTS OF INTERNATIONALLY RECRUITED
CONSULTANTS
Authorization and administration of internationally recruited consultants are centrally managed
by the responsible Regional Bureaux/Divisions.
All travel-related costs, including daily subsistence allowance (DSA) payments for
internationally recruited consultants, are charged to a headquarters Travel Authorisation.
When travel is authorized for consultants and individual contractors, the most economical
route available shall be the standard of accommodation for air travel in all cases irrespective of
the duration of the journey, unless determined otherwise by the Director of the Regional
Bureau/Division hiring the consultant, taking into account the circumstances of the traveller
(such as for health reasons) and the interests of the Organization.
It is necessary to issue an addendum to the Travel Authorization whenever there is a change
in the consultant’s itinerary, dates, entitlements, to make corrections or to extend a
consultancy.
Authorization for any change in a travel itinerary can only be given by the responsible Regional
Bureau/Division.
International consultants who travel through Geneva en-route to their place of consultancy
may be advanced up to 75 per cent of one month’s DSA, as applicable, provided their contract
is for more than one month. Thereafter, DSA/Mission subsistence allowance (MSA) will be paid
locally on a monthly basis at the beginning of each month subject to the authorization of the
responsible Regional Bureau/Division.
In respect of travel of internationally recruited consultants employed under a corporate
contract, the procedure to be followed is as follows:
i. When the cost of travel is included in the contract, the Regional Bureau/Division
initiates a Travel Authorization and pays for the ticket, charging the same account code
as the corporate contract. A Travel Claim is still necessary if the Travel Authorization
covers the ticket just to confirm that the person travelled;
ii. When travel costs are not included in the contract, the consultant may exceptionally
be authorized to purchase the ticket by economy class by the most direct route and
invoice UNHCR for reimbursement. In authorizing the reimbursement, the Regional
Bureau/Division should document why the travel cost was not included in the contract.
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The travel entitlements of internationally recruited consultants also include the following:
i. 10 kg excess accompanied baggage, except for travel within Europe;
ii. 50 kg personal effects by airfreight (for contracts exceeding three months);

iii. DSA or SOLAR under certain circumstances;
iv. R&R (if applicable);
v. MEDEVAC (Medical Evacuation) for service-incurred illness or injury, subject to prior

clearance by the Medical Service;
vi. Security evacuation.
Travel Claims for international consultants must be submitted to the Regional Bureau/Division
for clearance, and then forwarded to the Travel and Visa Unit for processing.
7.3 TRAVEL ENTITLEMENTS FOR LOCAL CONSULTANTS
Local consultants (nationals of the country or residents of the location where they are serving)
do not have travel entitlements unless they are required to travel for official purposes. In such
a case, travel expenses and related costs will be paid at the same rate as international
consultants.
A Travel Authorization covering all local travel during the period of the contract will be issued
by the responsible Regional Bureau/Section.
Travel Claims for local consultants are settled locally. Settled claims are forwarded to the
Regional Bureau/Section for accuracy check, then to Travel and Visa Unit for processing.
All travel claims must be settled before any final payment is made to consultants.
7.4 TRAVEL AUTHORIZATION AND TRAVEL DOCUMENTS
UNHCR administers travel through the MSRP Travel and Expense Module. For detailed
procedures, refer to the relevant topic in the MSRP Travel and Expense Implementation
Guidelines.
All travel for official purposes must be authorized in writing before it is undertaken. Travel must
be authorized by those officers to whom this function has been officially delegated through an
approved DOAP. The final approval and authorization of travel, within the parameters as set
out in the IOM/072–FOM/073/2013 - UNHCR Policy on Travel for Official Purposes and
UNHCR/AI/2017/12 - Administrative Instruction regarding Selection of Travel Route under
Travel Policy, is the responsibility of the budget owner together with the manager of the
traveller (if different). Travel administrators are responsible for procurement of tickets in
accordance with the travel authorization, ensuring all entitlements are paid to the traveller, and
providing guidance to the traveller and travel approver within the framework of the UNHCR
Policy on Travel for Official Purposes.
Travel Authorizations for statutory travels such as home leave, family visit, education grant,
appointment, reassignment and repatriation travel on separation are issued by PAS/DHR.
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Travel Authorizations are required in order to cover the traveller in terms of the UN
Convention on Immunities and Privileges, Appendix D to the Staff Rules, and/or for insurance
purposes.
Travel Authorizations are also required for no-cost travel, for example when the travel costs
are covered by an entity other than UNHCR. All travel paid for by third parties should be
assessed as to whether it is an in-kind contribution and if so, appropriately accounted for.
Travel Authorizations represent the authority document to allow staff members to leave their
duty stations on official business and for UNHCR to effect all travel related payments. All
relevant fields of the Travel Authorization must be properly completed.
The Travel Purpose field should be completed giving clear and concise information on the
purpose of the travel. Vague descriptions such as “Discussions with agency (or government
officials)” or “Visit to XYZ settlement” should not be used. Within the space available,
information given should be sufficient to enable the reader to determine the reasons and
justification necessitating the journey.
The Accounting Details field of the Travel Authorization must indicate the relevant chartfield
codes as follows:
a) For travel charged to the ABOD, these chartfields are the Budget Year, the Cost Centre,
the Goal (AO) and the Account.
b) For travel costs charged to an Operational budget, these chartfields are Budget Year,
Implementer, Cost Centre, Pillar/Situation, PPG, Goal, Output and Account.
c) For travel covered by a headquarters authorization, the chartfield values will be
indicated by Headquarters in its authorization.
Staff members and others who are requested to travel for official purposes on behalf of the
Organization should make their travel arrangements at least sixteen (16) calendar days prior to
their date of departure for travel for official purposes.
UNHCR is responsible for purchasing all tickets for travel for official purposes by staff
members. UNHCR may authorize staff members or others to purchase their own tickets on an
exceptional basis. Once the Travel Approver has agreed, the Travel Administrator will
determine the maximum entitlement for the official trip and the official dates. In such cases,
the total reimbursable amount that a staff member may claim in respect of a particular journey
is limited to the maximum travel expenses to which the staff member would have been entitled
had the Organization purchased the tickets.
At Headquarters, tickets should be reserved and purchased through the contracted travel
agency. Country Offices may make travel arrangements either directly with the airline or
through a reputable local travel agent, having obtained competitive bids/quotations.
Travellers are responsible for cancelling a booking with the travel agent or the airline and
returning any unused ticket(s) to UNHCR Travel Administrator at the earliest possible time, for
a possible refund to UNHCR.
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Staff members and other travellers are not authorized to process refunds or exchange tickets
themselves, but instead need to inform the Travel Administrator as soon as the cancellation of
booking is known.
7.5 TRAVEL CLAIMS
For each travel undertaken at UNHCR’s expense (except for travel on R&R and travel on Home
Leave, Education Grant and Family Visit authorized under the lump sum option), staff members
must, within two calendar weeks after completion of travel, submit:
a) a paperless electronic travel certification in MSRP when the “Mission/Travel is in
Accordance with the Travel Authorization”, where staff members are encouraged to upload
the relevant supporting documentation, whenever possible; and
b) a travel claim form, when there are additional expenses to be reimbursed or when there
were deviations from the approved travel authorization. Supporting documents must be
uploaded.
Same requirements apply to non-staff except that entry in MSRP will be done by the relevant
administrative staff on behalf of the traveller.
If a claim has not been submitted within the prescribed time (i.e. two calendar weeks), the
recovery process will apply in accordance with the provisions stated in Section II, part 12.7 of
this Manual on the Recovery of Staff Advances. Travel claims requiring submission to
Headquarters cannot be settled or paid by field offices.
If, upon review of the travel claim, it is determined that the travel advance exceeded the
amount of reimbursable travel expenses, the staff member will be informed of the amount of
overpayment. Such overpayment will be recovered through payroll deduction by PAS/DHR.
7.6 TRAVEL BY PRIVATE CAR FOR OFFICIAL BUSINESS
Staff members and other individuals may be authorized, in exceptional circumstances, to travel
for official purposes by private vehicle.
An authorization to use a private vehicle for travel for official purposes must be requested in
writing, and is governed by specific provisions in section 6 of the IOM/072–FOM/073/2013
- UNHCR Policy on Travel for Official Purposes.
Travel for official purposes which is undertaken by private vehicle within the country of duty
station normally only requires written authorization from the supervisor through the certifying
officer, unless DSA and expenses other than mileage costs are involved, in which case a Travel
Authorization must be issued.
All costs including mileage will be charged to the office’s ABOD, under account code 661200,
local (regional) travel of staff, and settled in the same manner as normal official travel through
a Travel Authorization and if required, a Travel Claim.
Under exceptional circumstances, the Head of Office may authorize the use of a private vehicle
for official purposes beyond the borders of the country where the office (staff member’s duty
station) is located, provided that the third-party liability insurance policy of the private vehicle
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extends beyond the borders of the country. In these cases, the issuance of a Travel
Authorization is always required.
Reimbursement of expenses related to the authorized travel for official purposes by private
vehicle will only be made if the total expenses surpass the ceiling of US$30. Requests for
reimbursement of travel expenses (other than mileage and standard DSA) must be supported
by original receipts. In case of travel by more than one staff member or authorized individual
in the same private vehicle, only one person is entitled to reimbursement for the expenses.
DSA, however, will be payable to each eligible staff member (or authorized individual) travelling
in the vehicle.
A staff member who chooses to travel by private vehicle for personal reasons (on official travel)
will be reimbursed up to the cost of the most economical route available as if travelling by air.
No additional DSA will be paid to the staff member for travel time in excess of the most
economical route by air.
The rates of reimbursement, which are applicable to different groups of countries and
territories, are updated regularly on the basis of changes in the operating costs in the area
concerned. Changes in rates will be communicated by the Travel and Visa Unit by posting the
latest Information Circular on the Travel and Visa Important Topics page of the UNHCR
Intranet.
8 TEMPORARY ASSISTANCE
Temporary Assistance is a short-term assignment regulated through UNHCR/AI/2020/2
Administrative Instruction Temporary Re-Assignments of International Professional Staff as
well as UNHCR/AI/2019/16.Corrigendum Administrative Instruction Management of
Temporary Appointments.
The request for Temporary Assistance is processed by the Emergency and Temporary Staffing
Unit (ETSU) and the authority for approval is with the Head of Assignments and Talent
Mobilization Service (ATMS).
A Temporary Assignment is for which an internal internationally recruited staff member is
selected. A Temporary Appointment is for which an external internationally recruited candidate
is selected.
The budget for Temporary Assistance (TA) may only be utilized for exceptional staffing needs,
usually for the replacement of staff on extended sick leave, maternity leave, and for the hiring
of temporary professional or local general service staff only if this is justified by an emergency
or by exceptional workload demand.
TA can only be affected against regular positions or against ABOD - a temporary assistance
budget: account 620300 (General Temporary Assistance Cost Budget Account). Unforeseen
needs for TA should be met from within the approved ABOD. Operations are reminded that
approved Temporary Assistance and related Operating Level budget should be fully reflected
in Focus Administrative budget under the corresponding chapter of expenditure (03X).
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Particular attention should be given to ensuring that the budget balance under this chapter of
expenditure is sufficient to cover the cost incurred by Temporary Assistance for the entire
budget period. A control of the Spending Authority exists in MSRP to ensure budget allotted
to Temporary Assistance is not used to cover other types of expenses.
UNHCR staff on TA should not be hired and charged against a project or programme budget.
Funds for TA should not be used to cover temporary replacement of staff on annual leave.
Requests by staff for leave should be granted without resorting to the employment of
replacement staff.
All matters concerning the recruitment of temporary professional staff in the field should be
directed through the respective Regional Bureau of the requesting office for endorsement to
DHR. DHR will forward the approved request to DSPR/ARBAS/Position Management Unit,
who will create temporary positions and verify availability of funds when the TA is charged
against ABOD or the Special Staff Costs Cost Centre (SSCCC).
Positions for functions to be performed for more than six months and less than one year require
the creation of a temporary position with a limited duration.
In cases of extended sick and maternity leave replacements, requests to increase the current
ABOD may be sent to ARBAS, through the respective Regional Bureau.
Guards/watchmen and cleaners should be hired through service providers/agencies. When
such positions have been created under the authorized staffing table, costs for temporary
replacements will be charged to the Temporary Assistance line under the ABOD.
Administrative staff of the concerned Operations in the Field should coordinate and consult
with their respective focal point in Personnel Administration Section (PAS)/DHR.
Admin/Finance Officers, in consultation with HR Officers where available, must recommend
the employment of general service staff on TA. Heads of Office have the authority to approve
these recommendations.
Recommendations for approval of employment of staff on TA should include at a minimum the
following information:
• Reason for the TA;
• Accountabilities, responsibilities and authorities of the TA;
• Education, qualifications and experience requirements of the incumbent;
• Reporting lines of the TA;
• Period of the TA;
• Location of the TA; and
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• Position Number or ABOD budget available to cover the costs of the TA; or
stating that it will be an SSCCC TA.
Recruitment of TAs is managed as follows:

• General Service staff outside of Geneva: locally by Operations in the Field or
by Divisions in Budapest and Copenhagen.
• Professional staff and General Service staff in Geneva: centrally with DHR
through the Emergency and Temporary Staffing Unit (ETSU)
For guidance on the management of TA staff consult the UN Staff Rule 4.12,
UNHCR/AI/2019/16.Corrigendum, UNHCR/AI/2020/2 as well as SAMM and other related
instructions issued by DHR.
9 MEDICAL INSURANCE
UNHCR subsidizes health insurance plans to assist eligible current and former staff members
and their dependants in meeting expenses incurred for healthcare.
UNHCR uses the following arrangements to provide these benefits:

a) Medical Insurance Plan (MIP) for the benefit of locally recruited staff members in
countries away from headquarters;
b) United Nations Staff Mutual Insurance Society Against Sickness and Accident
(UNSMIS) for all staff serving in Geneva, all internationally recruited staff serving in the
field, except New York, Canada and Washington DC. UNSMIS also covers locally
recruited staff serving at certain duty stations not covered by the MIP;
c) United Nations New York and UNESCO medical plans for international and general
service staff in the United States and France. UNHCR participates in other medical
insurance plans for staff in the offices of Paris, Strasbourg and Washington DC. The
offices in France are administered by UNESCO, whereas the offices in the United States
are administered by the United Nations New York.
9.1 MEDICAL INSURANCE PLAN (MIP)
Participation in the MIP is automatic for all locally-recruited staff members holding a UNHCR
contract, and the insurance premium is deducted from their salary.
The administration of MIP claims and their reimbursement has been delegated to Operations
in the Field.
Representatives or Chiefs of Mission have the responsibility for the day to day operation of
the Plan, namely enrolment, processing and reimbursement of claims and the financial control
and the accounting of settled claims and contributions to the Plan. In this role, the
administering office will be responsible for the following functions:
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a) Reviewing requests and issuing letters of guarantees to medical providers in case of

emergency and scheduled hospitalizations;
b) Reviewing and adjudicating claims for reimbursements according to the rules contained
in UNHCR/AI/2016/3 - Administrative Instruction on the Medical Insurance Plan
(MIP) Statutes and Internal Rules;
c) When possible, establishing a network of medical providers and negotiating direct

billing arrangements and discounted prices; and
d) Detecting presumptive fraud and abuse of Plan benefits for referral to the appropriate
parties as described in Section 13 of UNHCR/AI/2016/3.
For this purpose, Heads of Office must designate a staff member as MIP Administrator in their
locations, and ensure that the designated MIP Administrator has been duly trained before they
initiate their functions.
UNHCR is responsible for administering the MIP plan, including the collection of premiums,
investment activities and the processing and reimbursement of medical claims from both active
and inactive participants and their eligible dependants.
An MIP bolt-on was developed and implemented in MSRP HR, in order to facilitate the
administration of the MIP. In particular, the MIP bolt-on in MSRP enables the following:
• Introduction of appropriate mechanisms to monitor compliance with MIP rules, for
example reimbursement rates and limits established per expense type globally,
reimbursement made only if the bill dates are within the period the participant is
actually covered by MIP;
• Information related to MIP participants integrated into a single system, for example
personal and dependants’ information;
• Benefit from information already in MSRP (e.g. salary scales, rates of exchange, grade,
step);
• Single data entry, thus reducing the risk of errors and duplication of effort;
• Automated calculation of MIP ceiling and balances;

• Automatic notification of cases falling under the MIP Hardship Provision and Stop-Loss
clause for additional payment;
• Automated contribution calculation (for After-Service Health Insurance participants
only);
• Accurate and up-to-date reporting.

There is an established system in the MSRP Payroll Module to collect the premium from active
staff members through payroll deductions. MIP Administrators in the field may process claims
and collect premiums from inactive participants through the MIP subsystem.
Premiums collected must be deposited in the bank and recorded in the Finance Module of
MSRP. Subsequently, a deposit ID must be entered manually in the MIP system. The same
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applies to disbursements for the settlement of claims, which are paid through the MSRP
Finance Module and subsequently manually entered into the MIP module.
Refer to UNHCR/AI/2016/3 - Administrative Instruction on the Medical Insurance Plan (MIP)

Statutes and Internal Rules for detailed information on the following:
• Administration of MIP;
• Participation and benefits;

• Contributions and calculation of premiums;
• Claims;
• After-service health insurance;

• Other MIP related issues.
Contributions of active staff are calculated as part of the monthly payroll calculation and
deduction.
Contributions from former staff members are collected by field offices.

The Organization’s contribution is established and recorded in GP/GL through the payroll
process.
While the administration of MIP has been delegated to field offices, there is central
monitoring of the plan carried out at headquarters by PAS/DHR.
9.2 UN STAFF MUTUAL INSURANCE SOCIETY AGAINST SICKNESS AND

ACCIDENT (UNSMIS)
UNSMIS is managed by UNOG. The administration of claims and their reimbursement is
centralized with the UNSMIS Office in Geneva.
There is an established system in the MSRP Payroll Module to collect premiums from active
staff members through payroll deductions.
UNHCR will recognize in the accounts the following transactions:
i. An expense equivalent to its portion of the contributions to UNSMIS;
ii. A liability for contributions from both staff and UNHCR, pending transfer to
UNSMIS.
PAS/DHR makes the calculation of contributions to UNSMIS. They are also responsible for
the management of the transfer of contributions to UNSMIS.
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10 ACCUMULATED ANNUAL LEAVE

Accumulated annual leave is the leave balance at the time of separation from UNHCR either
voluntarily, involuntarily, on death and/or retirement, which is payable in cash to the staff
member, up to a maximum of 60 days (and a maximum 18 days for staff on TA).
UNHCR charges the cost centre where the staff member
Each staff member is resides with the entire cost of the annual leave payable.
responsible for keeping
In accordance with the accrual basis of accounting, annual
their leave records up to
leave accrued during the year will be recognized as an
date as this has an impact
expense in the Statement of Financial Performance, while
on UNHCR’s financial
the accumulated liability will be reflected in the Statement
statements.
of Financial Position.
Every end of month/year, PAS in Budapest must produce

a leave balance and activity report to AFS, generated from the Absence and Vacation Module
in MSRP in order to accurately calculate the amount for monthly/year-end accrual annual leave
liability and to recognize expenses.
Refer to IOM/052-FOM/053/2011 - Accounting Policy for Employee Benefits and
Procedure: Employee Benefits – Long-term and Post-Employment Benefits for information
on:
• Accounting codes and accounting treatment;
• Accountabilities, responsibilities and authorities;
• System requirements;
• Documentation requirements.
Refer to SAMM Chapter 5 for information on the administration of annual leave.
11 OVERTIME
Overtime compensation is payable to staff members in the General Service (GS) category and
Field Service (FS) category, who are required to work beyond the scheduled workday,
scheduled workweek or during any of the designated United Nations official holidays.
Overtime is managed, approved and paid at the field office level. Overtime must be charged to
budget account 6205XX of the ABOD.
All overtime work should be approved by the supervisor before it is undertaken and be claimed
for payment which is normally effected in the month after overtime occurred.
Calculation of overtime payments is done as per SAMM – Section 3.15 Overtime and
Compensatory Time Off.
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Overtime must be calculated by the Admin/Finance Unit

UNHCR will recognize an at the respective duty station and must be paid at the
expense in the period when field level with the monthly payment of salaries. The
the staff member renders monthly recording of the overtime payment is made by
the service that increases PAS/Payroll and field offices in MSRP.
his/her entitlement.
Under IPSAS, it is required to accrue the overtime
Therefore, under IPSAS, it expenses, which are pending payment at year-end.
is required to accrue Admin/Finance Officers in field offices must record
overtime expenses which outstanding/unpaid overtime at year-end by 10
are not paid at the year- January of the following year with the year-end date
end. on AP vouchers. Admin/HR in the field has to maintain
the proper records for overtime claims approval and its
calculation for the year-end accrual.
Field Offices will keep on file the supporting documents of accrual for audit purpose.
Refer to the UNHCR Accounting Policy for Employee Benefits and Procedure: Employee
Benefits – Short-term Benefits for information on:
• Accounting codes and accounting treatment;
• System requirements;
• Documentation requirements.
When it is consistent with prevailing local practice by the UN lead agency, authorised
work in excess of the established workday or workweek may be compensated by either
an overtime payment or Compensatory Time Off.
The maximum payable overtime is “limited to 40 hours per month for staff members other
than drivers and 50 hours per month for drivers”.
12 OPERATING EXPENSES
12.1 RENTAL OF PREMISES
The Head of Office must in all situations and in the first instance endeavour to secure rent-
free premises from the government either through donation or temporary ‘right of use’. Should
this not be possible, as a second step, sharing premises with other UN agencies should be
targeted. If those options are not viable, the commercial real estate market needs to be
explored. The characteristics of commercial real estate markets make selection of premises
different from other procurement actions. For these reasons, UNHCR office premises should
be secured through Non-formal Methods of Solicitation after a comprehensive market survey.
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Heads of Office should initiate a market surveys following the established UNHCR
procurement rules and procedures.
The lease agreement shall be in accordance with the approved template from LAS. If there are
any additional/different terms and conditions, the contract must be submitted for LAS review
and approval with any diverging paragraphs highlighted. DESS/Land and Buildings Unit (LBU)
technical approval is mandatory for all real estate related submissions of a value above
US$250,000 regardless to which Committee on Contracts it is due to be submitted and prior
to its submission.
Using a Non-formal Methods of Solicitation does not allow the Office to deviate from the
maximum transparency and cost-effectiveness requirements that apply to all transactions.
Before signing a lease or otherwise entering into any commitment, Heads of Office must
submit the proposed contract to a Committee on Contracts (CoC) when the value of such lease
falls within the CoC threshold amounts. Section 7.4.2(c) of UNHCR/AI/2018/5/Rev.1 -
Administrative Instruction on the Rules and Procedures of UNHCR Committees on Contracts
at Headquarters and in the Field shall be used to determine the relevant procurement review
authority responsible for review and approval of the lease agreement.
Lease contracts should be signed by the Representative or his/her designate, and the lease
must always be written in one of the United Nations working languages, using the standard
lease model of UNHCR available on the Intranet. In case of deviations from the templates (i.e.
inclusion of additional obligations for UNHCR or deletion of UNHCR’s rights, namely in
connection with the early termination clause), LAS must approve the modifications and provide
final clearance before the lease can be signed.
Heads of Office should ensure that the proposed lease submission contains the following
substantiation documentation:
• Submission Memorandum;
• Evaluation Report consisting of technical and financial evaluation, cost analysis and
overall evaluation;
• Space Requirement Estimate: Comparison of project space allowance by staff, grade
and operational requirements;
• Certificate of Compliance by professional engineer or architect;

• Building documents;
• Clearances (legal and security assessments, technical review);
• Market survey;
The Country Office submission should provide a market survey with price comparisons with at
least two similar properties, on top of the proposed. In addition, a price comparison on what
other agencies are paying should be provided if sharing premises is not viable with other UN
entities.
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The technical evaluation may include size, location, standard (e.g. layout, parking), access,
security, safety, technology, facilities, green energy and lease agreement clauses
(commencement date, termination, refurbishment/restoration etc.).
The financial evaluation of options must take into account both one-time investments (e.g.
renovation / fit-out costs, furniture, security and IT installations) and recurring costs (e.g.
annual lease fee, maintenance costs, utility fees, service charges, relocation expenses) for the
duration of the contract to estimate the total cost.
Once approval of the relevant procurement authority has been obtained and the lease has been
signed by the Representative, one signed copy will be forwarded to the relevant Regional
Bureau. The original will be retained by the Country Office for safe keeping. Lease contracts
cannot be altered or amended without the prior approval of the appropriate authority as per
procurement rules and regulations.
Refer to the Handbook on Leasing Offices for more guidance on selecting a safe and efficient
premise that address UNHCR operational requirements and ensure duty of care towards
personnel.
The rules and procedures concerning procurement and the CoC apply to leases (see Annex 1,
Section 7.4.2 of UNHCR/AI/2018/5/Rev.1 - Administrative Instruction on the Rules and
Procedures of UNHCR Committees on Contracts at Headquarters and in the Field; and
Chapter 8 (UNHCR Supply Manual)).
Warning!
Representatives must pay attention to the following:
• Representatives must sign lease contracts.

• Using the UNHCR contract template is mandatory.
• Ensure that clauses are not disproportionately adverse to UNHCR.
• As far as possible, avoid clauses that commit UNHCR to future spending due to
modifications or to returning premises to original state.
• Ensure LAS clear all diverging leases paragraphs from lease template.
• Ensure that prices are within market range.
Heads of Office must inform the Regional Bureau sufficiently in advance of the notice period
contained in the lease of his/her recommendation concerning renewal or, alternatively, of any
proposal(s) for renting other premises. Heads of Office must also ensure that submissions to
LAS and SMS at headquarters are received well in advance of the statutory notice period for
renewal or termination so that sufficient time is allowed for revision, comments and submission
to CoC Headquarters for decision.
Lease fees must be charged to Account 631050 – Rental of Premises of the ABOD.
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Leases are normally paid in advance of the period they cover and they should therefore be
treated as in the MSRP GL as a Prepaid Expense. Prepaid expenses are recorded in MSRP using
a Non-PO Voucher and are expensed via a Non-PO line in a PO Voucher. The Line Description
field in the Non-PO Voucher must be used to provide additional details regarding the purpose
of the prepaid expense and the period to which it relates.
For example: “Prepaid Rent for the period 1 January 20XX – 31 December 20XX”.
When a prepaid expense covers two (or more) separate financial years, two (or more) separate
lines should be created in the voucher – one for each financial year covered.
Receipts must be prepared in MSRP every month.

A PO Voucher is prepared with the amount based on the rent for the month. A Non-PO line is
added with an equal credit amount, representing the prepaid amount to be expensed.
The chartfields to be credited are the same as those debited when the prepaid expense was
paid.
Prepaid rent in currencies other than USD is a non-monetary asset, meaning no currency
revaluation is required on the remaining open/prepaid balance. Similarly, the monthly receipts
in MSRP and the related release of the prepaid amount need to be converted to USD at the
exchange rate applied on the original prepayment. To ensure this happens and rental expense
expressed in USD is correct, the invoice date for the PO voucher(s) and the release of the
prepayment should be set to equal to the date of the original prepayment.
Prepaid expenses are open item assets. AFS monitors prepaid expenses as part of its overall
monitoring of all open items.
Admin/Finance Officers, either in the field (together with the Supply Officer where this post
exists) or at headquarters, must carry out the monthly monitoring of prepaid expenses to
ensure that:
• The value of prepaid expenses at month-end represents the value of services (rent) paid
for but not yet consumed;
• Prepaid amounts are expensed in line with the consumption of the service (on a
monthly basis), within the timeframe anticipated in the lease contract.
Admin/Finance Officers must send the following information to AFS as part of the year-end
process, to justify year-end rental open items:
a) A copy of the original signed lease agreement; and
b) Confirmation that the balance of prepaid expenses represents rent for the next year.
Rental of premises must be charged to account 631050 of the ABOD.
Consult IOM/102-FOM/103/2012 - UNHCR Procedure for the Treatment of Prepaid
Expenses, Advance Payments to Suppliers and Refundable Deposits for details on the
following:
• Accounting and chartfield combinations;
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• Treatment of open items;
• Expense recognition;
• Documentation requirements;
• Month-end and year-end reporting requirements.
12.2 MAINTENANCE OF PREMISES

Maintenance of Premises includes minor alterations, repairs to the office premises, including
partitioning and decoration/painting works to the extent this is required, and when the costs
of which are not covered under the terms of the lease agreement as having to be met by the
landlord. Maintenance of Premises also includes repair works arising from normal wear and
tear to the office premises for which UNHCR as tenant may have the responsibility to maintain.
All alterations, maintenance, and supplies for the premises foreseen in the current calendar
budget cycle, and in respect of the following planning year, should be budgeted accordingly in
the annual submission of Country Offices’ administrative budgets so that funds may be
reserved for this purpose when the ABOD budget target is issued to Country Offices.
All work to be undertaken should always be awarded following a system of competitive
bidding, or at least by obtaining three quotations, giving full details of the work to be done
(including technical drawings and descriptions), in accordance with the UNHCR bidding,
tendering and purchasing rules as per Chapter 8 (the UNHCR Supply Manual).
Maintenance of Premises must be charged to account series 6312XX of the ABOD.
Major improvements or alteration to premises located in a major/capital city such as HQ,
Regional Bureaux or regional or (Multi-) Country Office will be capitalized as PPE if the cost of
the improvement/alteration or the combined original cost of the building and its
improvement/alteration is US$250,000 or more. Alterations or improvements of buildings with
a cost or fair value of less than US$250,000 but meeting the other criteria of a PPE are treated
as STIs and should be expensed as incurred.
Refer to Section II, part 9.16 for details on the capitalization and depreciation of major
alterations and improvements to owned and leased facilities.
12.3 IMPROVEMENTS TO PREMISES
Major improvements to office premises are those which require alterations of a substantial
nature, generally involving major construction works and a high outlay of capital funds. This
chapter of the ABOD is delegated to Operations in the Field. Examples in this regard are newly
added construction to existing premises, major renewals of a structural nature, including
substantial construction or renovation works that contribute to an appreciation in the value of
the property.
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Prior to undertaking any works, the requirements should also have been included in the
administrative budget submission and authorized under the ABOD.
The rules and procedures concerning procurement and the CoC apply fully to the improvement
of premises (see Chapter 8 (the UNHCR Supply Manual)). Thus, if the cost estimates exceed
the current US dollar limit as per Chapter 8 (the UNHCR Supply Manual), it will be necessary
to obtain, in addition, approval of the relevant CoC.
Improvements to premises, in excess of US$250,000 located in a major/capital city such as
those where Headquarters, Regional Bureaux, or regional or (Multi-) Country Offices must be
capitalized. Refer to Section II, 9.13of this Manual for details on the capitalization and
depreciation of improvements to owned and leased facilities.
Improvements to Premises must be charged to account 652100 (Alterations and
Improvements) of the ABOD.
12.4 MAINTENANCE OF FURNITURE AND OFFICE EQUIPMENT
Contracts for the maintenance of office furniture and other equipment may be entered into,
on the understanding that adequate budgetary provision exists in the Country Office ABOD
and that the UNHCR bidding, tendering and purchasing rules as per Chapter 8 (the UNHCR
Supply Manual) are complied with.
Maintenance of office equipment must be charged to account 632500 of the ABOD.
12.5 REPAIRS AND MAINTENANCE OF OFFICIAL VEHICLES
Routine maintenance / repair and the provision of spare parts are not covered by the GFM
Rental Programme and are the full responsibility of Country Offices.
Normal repairs and the maintenance of UNHCR official vehicles due to wear and tear may be
undertaken without reference to headquarters, subject to the availability of funds under the
ABOD, subject to observance of bidding procedures for local procurement and provided that
the repairs are not the consequence of an accident, for which instructions must be obtained
from the Asset and Fleet Management Section (AFMS).
The age and current value of the vehicle to be repaired must be given full consideration, and
the Country Office should seek authority from AFMS to replace the vehicle if it would be more
economical to do so.
Workshops operated by an international organization or a sister agency (e.g. WFP) may be used
in cases where no authorized workshop is available within reasonable proximity. The use of
genuine spare parts is mandatory. The concept of preventative maintenance must be applied.
Major vehicle repairs require consultation with and approval from the AFMS.
Refer to UNHCR/OG/2015/9 - Operational Guidelines for the Management and Use of
UNHCR Vehicles.
Repairs and maintenance of official vehicles must be charged to account 632100 of the ABOD.
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12.6 COMMUNICATION SERVICES

Communication and Information Technology is an essential component of the day-to-day
operations of UNHCR. Authorized Users 11 are permitted to use UNHCR telecommunication
devices and services in the execution of their job functions. The authorization and allocation
should be based on a justified operational reason. UNHCR’s Administrative Instruction on End
User Computing (UNHCR/AI/2019/13) sets out the principles and standards for acceptable
use of UNHCR computer equipment, software (applications), and network facilities by End
User including the allocation of devices, personal use of devices etc.
UNHCR is committed to the correct and proper use of telecommunication devices and services
in support of its administrative and service functions. The inappropriate use of
telecommunication devices and services could expose UNHCR to various risks including theft,
disclosure of information, disruption of services, fraud, litigation, reputation damage, or
excessive and unnecessary costs.
UNHCR owned End-User Devices and services must not be used for any activity that is
inconsistent with the mission of the organization, misrepresents UNHCR, is in contravention
of Staff Regulations, violates any UNHCR policies, or would be considered unlawful by
local/national laws (i.e. obtaining or distributing pornography, engaging in gambling, or
downloading audio or video files to which a staff member is not legally entitled to have access).
UNHCR/AI/2019/13, Section 7 - Prohibited Use of UNHCR End-User Devices and Services
lists further restrictions.
Consistent with prohibited use provisions and with other provisions in the AI (i.e. Section 6 -
Personal Use of UNHCR Devices and Services), authorised Users are permitted to limited
personal use 12 of UNHCR-issued devices and services. Limited personal use of ICT resources
should be governed by the following principles:
(a) It would not reasonably be expected to compromise the interests or the reputation of
UNHCR;
(b) It involves minimal additional expense to UNHCR;

(c) It takes place during personal time or, if during working hours, it does not significantly
impinge on such working hours;
(d) It does not adversely affect the ability of other Authorized User to perform their official
functions;
(e) It does not place an additional support burden on the IT staff;
(f) It does not interfere with the activities or operations of UNHCR or adversely affect the
performance; and
11
Authorized User: UNHCR staff, affiliates, and other persons irrespective of employment status - who have, or
are responsible for, any telecommunication device issued by UNHCR or who use any telecommunication device or
service provided by UNHCR.
12
Personal Use: use of the email system, or other information technology, including internet services by an
Authorized User for other than official purposes and within the scope of his/her authorization.
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(g) The contractual status of the End-User allows for the reimbursement of costs related to
personal usage. 13
The Head of Office must introduce local control procedures to ensure that communication
costs are maintained at a level necessary for the maintenance of operational effectiveness.
Standard operating procedures (SOPs) in line with the relevant rules, Policies, and Instructions
must be in place in all offices for the budget allocation, payment to the service provider, and
recovery of the costs relating to the personal usage of telecommunication services. Users are
reminded that there is a direct cost in telecommunication devices and services usage, and
therefore the most cost-effective service option should always be used.
UNHCR/OG/2015/6/Rev.2 assist UNHCR Field Offices as well as Bureaux and Divisions at
Headquarters in preparing their annual administrative budget which should include funding for
the procurement and management of ICT equipment and services guidance including guidance
for any ad-hoc procurement.
Usage charges related to the use of telecommunication devices and services must be charged
to the budget of the requesting unit under the ABOD or respective Operations (OPS) budget,
as applicable, using the GL account 634100 (COMMUNICATION –
TELECOMMUNICATIONS).
Mobile Satellite Devices and VSAT
DIST Customer Support Service manages global contracts with providers of mobile satellite
devices and services and other entities. DIST will make provision centrally for operating costs
of the VSAT network – based on the service level and bandwidth allocation at the time the
budget was prepared (typically in March of the previous year). Any changes to the bandwidth
or the addition of new VSATs in the Field will need to be covered by the ABOD of the Office
concerned. This includes the one-time procurement, transportation, installation costs, and the
monthly recurring costs up to the point where DIST can include this in the overall centralized
VSAT budget.
Corporate VSAT should be the preferred choice for international phone calls.
In Country Offices with Mobile/Portable Satellite devices systems, in view of their high cost,
every effort must be made to only use them for important and/or urgent communications.
Itemized bills for Mobile/Portable Satellite devices, giving the date of the call, duration of the
call (in minutes), number called and cost of the call, are sent on a monthly basis. These bills
should be reconciled with logs kept locally in order to identify both official and private calls
made over the Mobile/Portable Satellite devices.
Personal Charges related to UNHCR-issued telecommunication devices and services
Offices should have formal procedures in place for identification and recovery of costs
associated to personal usage of telecommunication devices and services. Unless an adequate
cost recovery method is in place, Authorised Users are not permitted to make any personal use
13
Refer to UNHCR/AI/2019/12 - Administrative Instruction on Cost Recovery of Communications Related
Services.
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of telecommunication devices or services that result in charges to UNHCR. All

telecommunications charges related to personal use must be recovered from Authorized Users
who are personally responsible for timely reimbursement.
Refer to UNHCR/AI/2019/12 - Administrative Instruction on Cost Recovery of
Communications Related Services for more guidance on the recovery of all Personal Charges
related to UNHCR-issued telecommunication devices and services (e.g. Mobile phones, Tablets
with SIM cards, Mobile Satellite Devices,
Desk/Fixed Phones, etc.) held by UNHCR’s
workforce, both staff and affiliate workforce
Staff members are individually
members, as well as external users who
responsible for timely
exceptionally use UNHCR-issued
reimbursement of cost of services
telecommunication devices and services.
for personal usage. All staff
members allocated a If the personal use results in charges to the
telecommunication device and Authorized User’s account, the Authorized
service shall examine their monthly Users should reimburse in a timely manner to
itemised statements and identify UNHCR the cost of services associated with
their personal charges. The the personal usage of UNHCR
organization shall be reimbursed telecommunication devices and services.
for these personal charges Offices should have formal procedures in
following the existing office place for identification and recovery of costs
process for repayments. associated to personal usage of
telecommunication devices and services.
Unless an adequate cost recovery method is in
place, Authorised Users are not permitted to
make any personal use of telecommunication devices or services that result in charges to
UNHCR.
Usage charges are charged to the ABOD or respective Operations (OPS) budget, as applicable,
of the requesting office or department as part of the existing monthly telephone charge-back
process. To ensure that cost allocation is accurate, the supervisor of a staff member issued with
a telecommunication device must inform the Administrative Unit of Field Offices of any change
in that staff member’s status (e.g. transfers to another unit at Headquarters or to the Field, or
departure from UNHCR on secondment, loan, and retirement). Failure to do so will mean costs
may continue to be charged to the originating unit’s budget (ABOD/OPS).
Data usage is billed according to the contract with the local service provider, and it should be
noted that data usage while roaming can be very expensive.
Where feasible, End-Users should be required to provide some authentication when making
external calls (professional or personal) that will incur charges to the organization.
Monitoring of accounts receivable of private telephone calls is labour-intensive and costly and
therefore installation of automatic billing systems is encouraged.
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Personal charges will normally be deducted from the staff member's salary, or, only in cases
where it is not possible, the Authorized User should make a direct payment to UNHCR’s bank
account or payment by cheque or in cash (with receipt). When reimbursements are made by
cheque/cash, office must ensure that this is deposited in the UNHCR bank account on the day
of receipt or the next working day at the latest. Where feasible, the costs recovered from the
Authorized User for personal usage should be credited to the budget (ABOD/OPS) under the
same cost centre that was originally charged (MSRP “telecommunications expense account”
634100). If not feasible, then recovery should be recorded in the general UNHCR income
account, MSRP Account 769000 with the same cost centre. Authorized Users who do not
provide the required follow-up within sixty (60) days of the issuance of the billing statement
will be charged the full amount of the statement under the assumption that all charges are
personal.
Heads of Office are responsible for ensuring that a proper system is established, and effective
controls are exercised in the use of telecommunications facilities.
Heads of Office must ensure that the following reconciliations is done and presented to
them for approval:
• The total amount for private calls reflected on the log/listing at the date of
settling the phone bill, must equal.
• The total amount reimbursed and deposited in the banks and/or deducted
from salary payments, which in turn should match with the amount credited
to account 634100.
12.7 OFFICE EQUIPMENT

The budgets for STIs and PPEs are delegated to Country Offices through the ABOD. However,
the purchase of vehicles, security equipment, staff housing and office accommodation should
still be referred to the competent unit at Headquarters. Prior authorization must be sought for
local purchases of this nature.
For the purchase of other items, Country Offices are authorized to purchase locally if the cost
of the item is less than 15 per cent above that available through SMS according to its list of
most commonly purchased items or from the Inter-Agency Procurement Service Office
(IAPSO) catalogue.
If the proposed purchase is to replace an existing item, the approval of headquarters or a local
Asset Management Board (AMB) for its sale or write-off is a prerequisite. As such, the full
details of the item to be replaced should be provided on a GS.45 form for consideration by the
AMB. This process must be done much earlier than the formal request for replacement. The
resale value, where applicable, should be indicated.
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Refer to Section II, part 4.1 of this Manual on Asset Management Boards and to
UNHCR/AI/2019/13 - Administrative Instruction on Rules and Procedures of UNHCR Asset
Management Boards, for additional details on the disposal of PPEs and STIs.
Refer to Section II, parts 9 and 10 of this Manual for information on the financial management
of PPEs and STIs.
The cost of equipment and related supplies must be charged to GL accounts 653XXX.
12.8 UTILITIES
Admin/Finance Officers in Country Offices must control the cost of utilities by comparing
monthly/quarterly and annual bills against meter records. Such monitoring will permit the
verification of consumption and ensure that the billings for utilities are correct, reasonable and
in line with the budget estimates.
All costs for utilities such as electricity, water, gas and other utilities are chargeable to the
relevant ABOD on GL accounts 635XXX.
13 CONTRACTUAL SERVICES
Contractual services are procured through institutional arrangements. A typical example
includes transportation and cargo handling service, construction contracts, professional
services such as audit, legal and valuation work, translation and interpretation services,
advertising, external printing and binding services, etc. Refer to GL expense accounts under
Contractual services category for various accounts to be used.
Expenses under these accounts must follow the regular procurement and Procure to Pay
process.
Country Offices may request certain services from headquarters if the services are unavailable
in the region, are of inferior quality, or are far more expensive than at headquarters.
14 VEHICLES
UNHCR has adopted a centralized fleet management model, by which all light and armoured
vehicles are procured centrally by the AFMS. Light vehicles are internally leased out to Country
Offices under a Vehicle Rental scheme. For more details refer to Chapter 8 (the UNHCR Supply
Manual).
Under the Light Vehicle Rental scheme, the AFMS will charge Country Offices/headquarters
departments with a yearly rental charge for the existing fleet and on a pro-rata basis for new
rentals. A budget should be allocated under the corresponding operational activity or ABOD.
Country Offices are responsible for prioritized planning and budgeting to ensure availability of
funds on the ABOD or Programme budgets to cover all rental charges during the rental period.
This charge is made centrally through MSRP, where each location’s cost centre will receive the
yearly charge against their respective ABOD or Programme budget at the beginning of the year
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for their existing fleet. For new rentals, offices will receive the pro-rated charge when the new
order is placed.
Field Offices must include the following provisions in their yearly ABOD or Programme
budgets:
a) For light vehicles under the Light Vehicle Rental scheme: the total estimated rental
charges for the year. Ancillary costs related to the delivery of the vehicle from the Hub
location to the field location also must be budgeted in the Country
Office/Headquarters department ABOD.
b) For vehicles that will be procured by Operations in the Field outside the Light Vehicle
Rental scheme: the total cost of the vehicle plus delivery and importation costs.
14.1 VEHICLE RENTAL CHARGES
Rental rates for light vehicles covered by the UNHCR standard model are fixed annually. Rental
rates for the coming year will be communicated to Country Offices in the Administrative
Instruction on Detailed Planning and Budgeting for the respective year.
The calculation of rental rates is based on several components and will vary according to the
purchase price of the vehicle, as a percentage of the ex-hub price. Rental rates include the
acquisition cost of the vehicle, accessories and Vehicle Tracking System (VTS) hardware, first
leg transport cost (from supplier to the vehicle hub), handling and storage fee and VTS
installation cost.
Rental charges are applied on a pro rata basis by full months and commence with the
preparation of the vehicle for shipping from the vehicle logistics hub. For example, in the case
of a vehicle prepared for shipping in May, eight months (May-December) will be charged. In
the following year, the full twelve months will be charged in January.
Country Offices must cover all charges linked to the delivery of a vehicle: shipping from the
vehicle logistics hub, in-country transport, taxes and customs duties (if any), port and
warehouse charges and demurrage charges.
14.2 VEHICLE RENTAL PERIOD
The minimum rental period is six months and the maximum rental period is sixty months. All
new rentals are assumed to be for sixty months; however, the Country Office may terminate
the rental agreement with two months' notice at any given time after the minimum rental
period. After sixty months or 150,000 km, vehicles will be withdrawn from service and
replaced. Vehicles will be replaced without specific cancellation from the Country Office.
14.3 ACCOUNTING PROCEDURES FOR VEHICLES UNDER GLOBAL FLEET
MANAGEMENT (GFM)
Dedicated GL accounts for GFM exists to facilitate the recording of revenue for GFM and
expense for the offices. The use of cost centre 96809 is required to record transactions
incurred by GFM except for insurance.
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The billing of GFM components to Operations in the Field are intra-organization transactions
and therefore are subject to elimination when preparing UNHCR’s Financial Statements. The
account titles identify the accounts to enable the elimination of revenue and expense for the
Organization during the preparation of its annual financial statements. The process of
capitalization of vehicles should include the cost of the first and second legs of transport (from
supplier to vehicle hub and from vehicle hub to operation).
Depreciation on acquired vehicles that are part of GFM will be charged to its cost centre
96809. The accounting of vehicle rental related transactions must be as follow:
a) Vehicle Rental Fees

Inter-organization accounting entries to record rental fee shall be as follows:
DR: 632200 - Vehicle rental - GFM, CC: Country Office/Headquarters Department
charged;
CR: 732200 - GFM rental revenue, CC: 96809
If the rental is terminated GFM will credit (reimburse) the office with the balance remaining on
the paid rental fees.
b) Vehicle Tracking System (VTS)
All new light and armoured vehicles will be equipped with a mandatory VTS, unless not
authorized in the host country.
Inter-company accounting entries to record a VTS fee is as follows:
DR: 629300 - GFM Vehicle Tracking, CC: Country Office/Headquarters Department;
CR: 729300 - GFM field vehicle tracking revenue (elimination account), CC: 96809
(GFM).
If the rental is terminated GFM will credit (reimburse) the office with the balance remaining on
the paid VTS fee.
c) Accessories
GFM will purchase accessories and include the cost in the vehicle rental fees payable by the
Requesting Office. Accessories are not capitalized.
d) Transport Costs
The cost of freight to Vehicle Hubs and from Vehicle Hubs to the Requesting Office will be
capitalised in the AM Module of MSRP. The cost of transporting the vehicle from the supplier
to the Vehicle Hubs (first leg transport) is included in the vehicle rental fees payable by the
Requesting Office. The second leg transport (from Vehicle Hubs to the Requesting Office) is
charged to the Country Office’s budget. Freight on vehicles sent by offices to Vehicle Hubs
will be borne by Operations in the Field (from a budget perspective, by charging, in the
Commitment Control Module of MSRP, the ABOD or OPS Budget of the Country Office).
Inter-organization accounting entries to record transport costs from Vehicle Hubs to the
Requesting Office are as follows:
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DR: 624060 - Transportation expense, CC: Field Office charged;

CR: 724060 - GFM revenue on freight to field office, CC: 96809 (GFM).
Transport costs are non-refundable.

14.4 PURCHASE OF VEHICLES OUTSIDE THE GFM PROGRAMME
The cost of non-light vehicles procured by the Country Office outside the Vehicle Rental
scheme and other expenses associated with their delivery must be charged to account 632300
Vehicle Rental - Other.
15 INSURANCE
15.1 THIRD PARTY LIABILITY VEHICLE INSURANCE
There are two kinds of insurance that are relevant to vehicle operations: third party liability
insurance, which is compulsory in most countries, and insurance against loss or damage to
owned vehicles, which is usually optional.
Drivers in most countries are required by law to have adequate insurance cover to ensure that
damage resulting from an accident can be paid for. Third party liability insurance is purchased
by the vehicle owner (first party) from an insurance company (second party) for protection
against another party's claims (third party).
Example 1: A UNHCR vehicle causes an accident that results in damage to the other vehicle
and injury to the driver. The driver of the other vehicle will have a claim for damages against
UNHCR for the cost of repair to his vehicle and medical expenses.
The claim for damages will be covered by the UNHCR third party liability insurance and the
insurance company will make a payment directly to the driver of the other vehicle.
Example 2: The driver of a truck crashes into a parked UNHCR vehicle causing damage to the
UNHCR vehicle. The cost of the repair to the UNHCR vehicle can be claimed against the third
party liability insurance of the truck owner.
15.2 UNHCR GLOBAL VEHICLE INSURANCE SCHEME
Self-insurance is a mechanism whereby an organization sets aside funds to manage a portion
of its own risk, rather than relying on an insurer. Self-insurance can be applied to almost any
class of risk, including liability, property, and motor vehicles.
UNHCR has established the Global Vehicle Insurance Scheme that is designed to ensure
adequate coverage of persons and property affected by incidents involving UNHCR vehicles.
The UNHCR Vehicle Insurance Scheme is compulsory for all UNHCR owned vehicles. Refer to
IOM/054-FOM/054/2013 Implementation of Global Fleet Management (GFM).
UNHCR Global Vehicle Insurance Scheme comprises:
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a) Minimum Local Third Party Liability Insurance
Country Offices and Partners must obtain and pay for local Third Party Liability Insurance
in order to meet the minimum legal requirements of the host country.
b) Global Third Party Excess Liability Insurance is purchased and maintained by GFM at
headquarters. This insurance provides third-party liability coverage for owned, hired, and
non-owned vehicles operated by UNHCR on a worldwide basis without exclusions in cases
where:
• Local third party liability is not available or not in place, the policy will pay third party
claims.
• Local third party liability is obtained, the policy will pay claims above local limits, or if
the local insurance fails to comply.
In case of third party liability claim, the first point of contact should be the Local Third Party
Liability insurer. At the same time, UNHCR Global Vehicle Insurance must be informed via
email HQINSURE@unhcr.org
c) The UNHCR Vehicle Self-Insurance Fund provides coverage against loss or damage to
UNHCR vehicles:
• All UNHCR vehicles are covered including those operated by Partners under a Right of
Use Agreement.
• The Global Vehicle Insurance Scheme will reimburse the UNHCR office for the net
(exclusive of VAT) amount of the authorized repair. In cases of a decision to dispose of
the vehicle, the owner of the vehicle will be reimbursed according to the level set by
the Vehicle Insurance Fund Steering Committee.
Insurance costs charged directly by Global Fleet Management are charged to accounts 638150.
Vehicle insurance paid in a country directly by Operations in the Field is charged to account
638200.
Inter-organization accounting entries to record a UNHCR Vehicle Insurance Contribution are
as follows:
DR: 638150 - GFM insurance expense, CC: Country Office/Headquarters Department

Charged;
CR: 738150 - GFM insurance revenue, CC: 96810 (UNHCR Vehicle Insurance).
The accounting of transactions related to Vehicle Self-Insurance Fund claims reimbursement

are centrally managed by GFM.
Also, refer to UNHCR/OG/2015/9 - Operational Guidelines for the Management and Use of
UNHCR Vehicles for additional information on the insurance scheme of UNHCR and
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UNHCR/AI/2016/11 - Administrative Instruction on the UNHCR Global Vehicle Insurance

Scheme and Vehicle Incident Reporting.
15.3 INSURANCE OF OFFICE FURNITURE AND EQUIPMENT
Insurance of office furniture and all office equipment, including photocopiers, VHF radios, radio
handsets, mobile phones and computers should, as far as possible, be negotiated with the lessor
to be included with the office premises. If this is not possible, and if considered necessary on
security grounds, insurance coverage for all equipment may be obtained, provided budgetary
provision has been made to cover such cost.
In cases where the financial loss suffered by the Organization results from gross negligence,
any financial responsibility of the staff member will be established in accordance with the
provisions of IOM/086/2012 – FOM/087/2012. Instances of suspected gross negligence
must be reported to the Office of the Controller and the Office of the Inspector General..
Insurance must be charged to account 630200 of the ABOD.
16 HOSPITALITY
Hospitality events are those where UNHCR hosts non-UNHCR and/or non-United Nations
system guests. Therefore, funds allotted for hospitality are intended for the entertainment of
persons who are not UNHCR or United Nations system staff members or personnel.
Hospitality events are intended to facilitate external networking activities to serve the interests
of UNHCR and the larger United Nations community. As a donor-funded organization, only
necessary hospitality expenses which are appropriate to the occasion can be incurred.
Hospitality events must reflect an image of modesty and consideration for local norms and
cultures. Any semblance of extravagance or ostentation must be avoided. Hospitality is not
intended for the entertainment of salesmen, trade representatives or any persons with a
commercial interest in UNHCR.
The staff member providing hospitality is referred to as the Host. All other UNHCR contract
holders (ICAs, etc.) are also considered hosts for purposes of reimbursement. The non-UNHCR
personnel benefiting from official hospitality are referred to as Guests. The hospitality budget
is not intended to cover hospitality extended to United Nations’ staff members other than the
host and a minimum number of (co-)hosts necessary in the interests of UNHCR.
While UNHCR hospitality and the funds provided for hospitality are intended to host
individuals who are not UNHCR and/or United Nations system staff members or personnel, it
is recognized that there will be situations where the participation of UNHCR staff members
and/or personnel, in addition to the actual UNHCR host, will be necessary. In these situations,
a reimbursement for the event can only be claimed if the number of UNHCR staff members
and/or personnel is less than the number of non-UNHCR or United Nations system guests at
the event.
When the Head of Office, or an authorized staff member, extends official hospitality in the
interests of UNHCR, actual expenses incurred for food, drink and related services may be
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reimbursed in accordance with the policy guidelines for the control of expenses related to
hospitality as contained in the UN administrative instruction ST/AI/2002/8 and
ST/AI/2002/8/Amend.1 and according to the procedures set out for UNHCR below.
Approval of hospitality expenses is subject to availability of funds. The authorization to incur
hospitality-related expenses must be issued in advance.
Budget for official hospitality should be included in the administrative budget (within Operating
Level only) and should cover a 12-month calendar period. The amount indicated in the annual
administrative instructions for detailed planning and budgeting should guide Operations in
establishing their official hospitality budgets. Hospitality expenses cannot exceed the approved
budgeted amount. The amount of the hospitality budget under the ABOD is established taking
into consideration the type of office in the field (Regional Bureau, Representation Office,
Liaison Office / Sub-Office, Field Office), and is roughly adjusted for cost of living differentials
between duty stations on the basis of the DSA rate applicable to a locality, the DSA rate being
used because it is based on hotel and meal costs. The DSA rate of the current budgeting year
is used as a basis to determine the hospitality ceiling for a given office. Increase of the annual
provision for hospitality per cost centre is not permitted. 14
The annual hospitality budget cannot be charged with any expenses incurred by or for
entertaining staff members visiting from headquarters or other field offices.
While the ABOD is addressed to the Head of Office, the hospitality budget is provided to a
UNHCR Country Office or to a Headquarters Service, and not to an individual staff member.
Heads of Office or staff authorized by them may extend hospitality in the interests of UNHCR
up to the balance amount of the hospitality budget. Thus, the ABOD holder should authorize,
as necessary, staff under his/her supervision to extend hospitality and to claim reimbursement
against this budget code.
If, during the course of the year, the Head of Office is transferred, the balance of funds
available under the hospitality budget should not be less than the pro rata amount which should
be available to cover the number of months remaining after his/her departure.
If, on the basis of pro-rating by months, the holder overdraws on this budget, s/he must
personally refund the over-expense by a deposit into the Country Office account for credit to
the budget code.
16.1 REPRESENTATIONAL ALLOWANCE AND HOSPITALITY BUDGETS
To reimburse expenses incurred by officers in the performance of their official function by
extending hospitality to members of delegations, members of government or nongovernmental
organizations or individuals in the private sector, annual hospitality budgets are established
pursuant to paragraph 2 of Annex 1 of the United Nations Staff Regulations. 15
14
Reference is made to UNHCR/AI/2019/7 Administrative Instruction New Resource Allocation Framework –
Part 1, paragraph 4.14. f.
15
ST/SGB/2018/1: “The Secretary-General is authorized, on the basis of appropriate justification and/or reporting, to make
additional payments to United Nations officials in the Director category and above to compensate for such special costs as may
be reasonably incurred, in the interests of the Organization, in the performance of duties assigned to them by the Secretary-
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UNHCR does not pay a Representational Allowance at the D-2 level; instead, such officials
become eligible for reimbursement of actual hospitality expenses under prevailing rules and
procedures governing the hospitality budget.
In UNHCR, USGs and ASGs are paid Representation Allowance automatically on a monthly
basis because these staff members often incur considerable miscellaneous personal expenses
in connection with their representational responsibilities. Normally, UNHCR officials receiving
a Representation Allowance should not be eligible and receive any reimbursement for
hospitality expenses related to official hospitality as covered in Section 16 above. However,
according to ST/AI/2002/8 para. 1.3, reimbursement may be made even in cases where the
host is in receipt of a representation allowance, if an office extends group hospitality to
participants in an official meeting where the head of that office serves as host on behalf of the
Organisation, provided that the estimated costs of the hospitality have been specifically
requested, approved and allocated according to the relevant budget procedures.
16.2 RATES AND CONDITIONS OF REIMBURSEMENT FOR HOSPITALITY
The reimbursement of all hospitality expenses claims will be on the basis of actual and invoiced
expenses incurred, shall not exceed to the following levels:
a) Entertainment at home (per person):
i. Lunch or dinner: 25 per cent of the DSA rate for the locality;
ii. Cocktail or buffet: 15 per cent of the DSA rate for the locality.
b) Entertainment outside the home: reasonable actual expense incurred (generally
recommended up to 50 per cent of the DSA).
Expenses incurred in excess will not be reimbursed by UNHCR. Whether hospitality is offered
at home of the host or outside, expenses related to and incurred for the host’s
spouses/family/personal guests are not reimbursable.
If UNHCR staff members or personnel on Daily Subsistence Allowance (DSA) are invited to
attend or hosting a UNHCR hospitality event, the individual must reduce their DSA claim in the
amount equivalent to the meal(s) that were provided for at the event as per the percentages
prescribed in UNHCR’s Travel Policy. The amount reimbursable to the host is not affected.
16.3 REIMBURSEMENT PROCEDURE
The official concerned should, in the first instance, pay the hospitality costs and thereafter
submit a claim for the reimbursement thereof on the prescribed UNHCR’s Hospitality
Reimbursement Form. Reimbursements of hospitality costs are normally made in local
currency from the Country Office’s accounts. A list showing the hosts and the names, official
titles and organization of guests, together with all invoices and receipts when the
entertainment is outside the home, must be attached to the original Payment Voucher.
Hospitality expenses must be charged to GL account 639350 - Hospitality of the ABOD.
General. Similar additional payments in similar circumstances may be made to heads of offices away from Headquarters. The
maximum total amount of such payments is to be determined in the programme budget by the General Assembly.”
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There must be an appropriate segregation of duties in an office such that the Head of an office
cannot approve reimbursement of hospitality to her/himself.
16.4 SPECIAL HOSPITALITY (OFFICIAL FUNCTIONS PROTOCOL)
Special hospitality may be exceptionally authorized to cover large-scale entertainment of a
protocol nature, for example during a mission by the High Commissioner.
Prior authority for this must be obtained from headquarters and should be requested from
DSPR/ARBAS, giving a breakdown of estimated costs and general information on the purpose
and proposed host and guest lists, and indicating the numbers expected to attend (number of
hosts should be lower than the number guests). The amount authorized will be subject to the
availability of funds and may have to be met through savings in other chapters in the Country
Office ABOD.
In requesting authorization for such allocation of funds for special hospitality, the nature of
UNHCR’s humanitarian role should be borne in mind. Thus, the use of valuable contributions
made available by the international donor community for humanitarian activities must in no
way be perceived or misunderstood as being lavishly used for hosting receptions. Thus,
receptions should be organized modestly, both financially and in substance.
Hospitality expenses connected with the arrival or departure of the Head of Office will not
qualify as ‘special hospitality’ but should be charged within the provisions of the ABOD for the
office.
17 COMMERCIAL RENTAL OF VEHICLES

Commercial rental of light vehicles from third parties outside GFM and entering into a service
level agreement for transportation services including light vehicles - by UNHCR or by a partner
with UNHCR funds for less than 6 months, does not require GFM approval. For a period of 6
months or longer, this shall be limited to those exceptional circumstances, where GFM rental
vehicles cannot be made available to an operation e.g. import or registration restrictions and
requires prior GFM approval.
Rentals should be for a specific and limited period of time and considered necessary for the
running of the office.
UNHCR bidding, tendering and purchasing rules as per Chapter 8 (the UNHCR Supply Manual)
apply to the procurement of rental of vehicles.
Rental of vehicles must be charged to accounts 632XXX of the ABOD.
18 ACCOMMODATION EQUIPMENT AND BUILDINGS

Procurement of prefabricated staff housing and office accommodation requirement must be
submitted to headquarters, providing full details and specifications, and confirming the
availability of funds under the ABOD.
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Submission of a budget for assets where the purchase has to be made by headquarters does
not constitute a formal request to purchase.
apply to the procurement of accommodation equipment and buildings.
Accommodation equipment with an acquisition value of US$10,000 or more must be classified
as PPE in the Finance Module of the MSRP. The cost of buildings outside of major/capital
cities is expensed, whereas a capitalization threshold of US$250,000 applies for buildings and
construction projects of buildings at major/capital cities Buildings that are under the day to day
management of UNHCR and equipment which is not capitalized are tracked as STIs.
Refer to Section II, parts 9.5 and 9.12-9.13 of this Manual, for additional information on the
financial management of buildings.
Accommodation equipment must be charged to GL accounts 651400 of the ABOD. Buildings

(structures) must be charged to GL accounts 651200 of the ABOD.
19 ADVERTISING AND PUBLIC INFORMATION ACTIVITIES
Public Information (PI) activities carried out by Operations in the Field will be covered by their
respective ABOD or operational budgets.
A specific PI budget will be authorized for Country Offices to cover costs such as the Nansen
Award, World Refugee Day, photos, video/film, consultants in the field that are undertaken by
the Country Offices upon request of headquarters (for example, headquarters Media Relations
and Public Information Service).
Contractual services for advertising, marketing and public information activities covered by
Operations will be charged to GL accounts 626XXX.
20 PRIVATE SECTOR PARTNERSHIPS (PSP) BUDGET
DER/PSP budgets are authorized under specific ABCs and PSP Cost Centres. Because of the
specificity of PSP activities, their budgets are centrally administered under PSP specific (Global)
cost centres following established funding mechanism called the National Growth Fund (NGF),
which funds PSP fundraising activities in selected Country Offices (Operations) and the
National Partners.
PSP Country Offices (Operations) must seek prior clearance from DER/PSP Headquarters
before spending funds on any significant fundraising activity. There are PSP internal
procedures for submitting applications for funding through the NGF mechanism and a NGF
Committee which vets and either approves or rejects such applications based on a set of
criteria and availability of resources. For related questions or to submit applications contact
the NGF Committee Secretariat.
In order to ensure global coherence and coordination, annual budgets for all major PSP
activities must be submitted for approval through PSP Regional Managers or the Senior Global
Fundraising Officers in the different regions.
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apply to the procurement of services and materials under the PSP Budget.
PSP related expenses should not be charged to a Country Office’s ABOD, but rather to specific
PSP budget allocations.
21 BANK CHARGES
Bank charges must be included in the negotiations of conditions for the opening of bank
accounts. Banks must confirm in writing the nature and rates for their services. Admin/Finance
Officer in the field must check the validity of bank charges as part of the monthly bank
reconciliation process.
Bank charges must be charged to GL accounts 639050 (for UNHCR operational bank
accounts), 639100 (for bank charges reported by Partners) and to GL account 639150 (for
UNHCR’s bank accounts for CBI (disbursing cash to beneficiaries)).
Refer to Section II, part 5.4.18 of this Manual for additional information on bank reconciliations.
22 EQUIPMENT AND OFFICE SUPPLIES

22.1 COMPUTER AND COMMUNICATIONS EQUIPMENT
Procurement of IT communications equipment is centralized. Detailed procedures on
international procurements of IT related supplies and equipment are guided by
UNHCR/OG/2015/6/Rev.2 - Operational Guidelines for Budgeting and Procurement of lCT
Equipment and Services.
Communication and IT equipment and related supplies must be charged to GL accounts
653100, 653200 or 653300.
Communication and IT equipment with a cost or fair value of US$10,000 or more must be
classified as PPE in the GL Module of MSRP.
Refer to Section II, 9 of this Manual for additional details on the capitalization, administration
and depreciation of PPE items.
22.2 MATERIALS AND OFFICE SUPPLIES
Office supplies, as well as printed stationery, may be purchased locally. UNHCR bidding,
tendering and purchasing rules as per Chapter 8 (the UNHCR Supply Manual) apply to the
procurement of materials and office supplies.
Office supplies listed in the UNHCR Stationery Order List such as official stamps may be
ordered from the headquarters General Service Section (GSS – Mail and Stationery Unit).
Country Offices can also submit a request to GSS for items not listed in the UNHCR Stationery
Order List, giving all necessary details and specifications. Shipment of items of stationery from
Geneva are made by pouch or airfreight and should be planned and requested well in advance.
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PRs for materials and office supplies and their dispatch must be prepared by the Country Office
concerned, which is responsible for identifying a budget against their respective ABOD.
Items purchased at headquarters are generally expensive to procure and to ship to the Country
Office, and all expenses incurred at headquarters for these purchases will be charged against
the Country Office’s ABOD.
Funds for the purchase of uniforms for drivers, guards and messengers and for overalls for
cleaners will be authorized under the ABOD, if they have been requested and budgeted for
accordingly, on the understanding that the purchase of these items is in accordance with UNDP
local practice.
Country Offices may generally subscribe to publications if these subscriptions have been
budgeted and included under their ABODs.
Refer to sub-category 07. Equipment and suppliers under 05.Expense Section of the Chart of
Accounts to find the appropriate GL expense accounts for materials and office supplies. For
example, subscriptions to newspapers should be charged against GL account 657200
(SUBSCRIPTIONS TO NEWSPAPERS/JOURNALS/PERIODICALS).
22.3 SECURITY AND SAFETY EQUIPMENT
Country Offices are required to budget for resources for security and safety needs including
the purchase of equipment to achieve or maintain compliance with Security Risk Management
Measures and Residential Security Measures. For information on these measures, refer to the
Security Policy Manual.
Security equipment will have to be upgraded, maintained and or replaced on a regular basis.
Associated costs should also be included in the budget. Staff Safety and Security expenses
should not be charged to the ABOD but to specific budgetary allocations.
Safety and security equipment may include, but is not limited to, the following items:
• Armoured vehicles;
• Entrance control equipment;
• Escort vehicles;
• Bullet-proof vests, helmets;
• Vehicle tracking equipment.
apply to the procurement of security and safety equipment under the Security and Safety
Budget. Security and safety equipment with an acquisition value of US$10,000 or more must
be classified as PPE in the GL Module of MSRP.
Refer to Section II, part 9 of this Manual above for additional details on the capitalization,
administration and depreciation of PPE items.
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23 FUELS AND LUBRICANTS

Country Offices have the responsibility to monitor and control the running and maintenance
costs of vehicles on a monthly basis, in order to ensure that they are within manufacturer’s
standards. Unreasonable variances should be investigated.
Refer to UNHCR/OG/2015/9 - Operational Guidelines for the Management and Use of
UNHCR Vehicles, for guidance on fuel management and monitoring, key performance
indicators as well as reports.
Fuel stocks, when managed directly by UNHCR, must be properly secured, and subject to
periodic inventory verifications. UNHCR bidding, tendering and purchasing rules as per
Chapter 8 (the UNHCR Supply Manual) apply to the procurement of fuels and lubricants.
Expenses covering petrol, diesel and other lubricants for vehicles are chargeable to the relevant
GL account 637XXX.
24 INDIVIDUAL CONSULTANTS AND CONTRACTORS

Consultants and individual contractors are not one and the same. Refer to the below figure
that summarizes the main differences between the two categories.
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Individual Individual
Consultant Contractor
Recognised authority or Not a recognized authority

specialist in a specific field or specialist in any
in an advisory or particular field; services
consultative capacity; may involve functions
possessing special skills or similar to those of staff
knowledge not readily members but not readily
available in the available in the
organization and for which organization
there is no continuing need
Max. 11 work-months in Max. 9 work-months in 12

12 months; 24 months out months
of 36 months
Follow the free range in Follow the appropriate

the policy level of salary scale of staff
No need to check with

CMSS since consultants
must be experts/specialists Check with CMSS for
possessing special skills or international contractors
knowledge not available in
the organization
24.1 CONSULTANTS
A consultant is an individual who is a recognized authority or specialist in a specific field
engaged by UNHCR under a temporary contract in an advisory or consultative capacity.
Consultants must possess special skills or knowledge not readily available in the organization
and for which there is no continuing need.
A consultant is an expert and a highly trained individual holding, as a minimum, a university

degree and/or possessing equivalent extensive and relevant experience of a professional
nature.
Recruitment of consultants should be referred to headquarters as the authority for the issuance
and the administration of consultancy contracts in UNHCR rests with the Director of DHR.
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The Director of DHR has delegated authority for the recruitment of consultants to all Directors
of Regional Bureaux and Divisions in UNHCR. Authorities for affiliate workforce arrangements
at Headquarters and in Country Operations and Regional Bureaux are set in
UNHCR/AI/2019/7 - Administrative Instruction on New Resource Allocation Framework -
Part 1. DHR monitors compliance with established procedures on consultancies in UNHCR.
International consultants will be paid in a convertible currency, usually US dollars. National
consultants will be paid in the local currency of the country of work and may be paid in a
convertible currency provided that in doing so UNHCR does not violate any foreign exchange
regulations of the country concerned.
Once negotiated and established in a contract, the currency of payment or the agreed-upon
fees should not be revised due to fluctuations in exchange rates, regardless of benefit to
UNHCR or the consultant.
The 1% Appendix D contribution should not be deducted from the individual consultant’s
fees but charged directly to the relevant project or ABOD chapter, and is to be transferred
into a UNHCR account Situation 9001, Account 443001 when effecting payments to the
consultant.
Consultancy fees and related costs must be charged to a relevant project or to GL account
621XXX of the ABOD if related to Administration.
Refer to the IOM/009-FOM/009/2013/Corr.1 - UNHCR Policy on Individual Consultants for
additional information on individual consultants:
• Authorities and responsibilities for hiring;

• Selection and hiring;
• Contractual terms and conditions;
• Remuneration;
• Conditions of Service;
• Administrative details on Health and Security;
• Travel arrangements and related matters.

24.2 INDIVIDUAL CONTRACTORS
An individual contractor is an individual engaged by the organization under a temporary
contract to provide expertise, skills, or knowledge for the performance of a specific task or
piece of work against payment of an hourly, daily, monthly or all-inclusive fee.
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While they are not staff members, individual contractors may perform services similar to those
of staff members when they cannot be found readily available in the organization. Such
services include, inter alia, those required in emergencies, repatriation, registration, refugee
status determination, as well as translation, interpretation, editing, secretarial and clerical
services.
Individual contractors cannot:

• Perform representational functions.
• Have direct approval or spending authority.
• Have authority for formal supervision of UNHCR staff, though they may provide
functional guidance.
The Director of DHR delegates the authority to approve individual contractor contracts to
other Directors within their respective Regional Bureaux or Divisions. The Directors may
designate in their respective Regional Bureaux or Division a focal point who will have the main
responsibility for the administration of these contracts. Authorities for affiliate workforce
arrangements at Headquarters and in Country Operations and Regional Bureaux are set in
UNHCR/AI/2019/7 - Administrative Instruction on New Resource Allocation Framework -
Part 1.
In general, DHR will monitor compliance with established procedures on individual contractor
contracts in UNHCR
An individual contractor may be engaged for up to a maximum of nine months of full-time
work, in other words 195 days (9 months x 21.75 days) calculated by adding the actual number
of hours, days, weeks, or months worked in a 12-month period. There must be a mandatory
break-in-service of three full months within a 12-month period during which time the individual
may not have any contract with UNHCR. Following the break-in-service, the same individual
may be re-engaged for the provision of services to UNHCR.
The main criteria in determining the lump sum are the nature of the task and the final product,
rather than the number of days to accomplish these. Changes in the duration of the work that
do not involve a change in the job description may not automatically result in any revision of
the agreed lump sum.
The fees of an individual contractor may be linked to the relevant United Nations salary.
Alternatively, the prevailing local market rates may be used. The hiring manager engaging a
contractor should recommend a reasonable fee for review and approval by the person
authorized to issue contractor’s contracts.
Travel-related costs may be included, in which case travel is arranged by the contractor, i.e., no
Travel Authorization will be issued by UNHCR.
Internationally hired contractors will be paid in a convertible currency, usually US dollars.
Locally hired contractors will be paid in the local currency of the country of work and may be
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paid in a convertible currency provided that in doing so UNHCR does not violate any foreign
exchange regulations of the country concerned.
Once negotiated and established in a contract, the currency of payment or the agreed upon
fees should not be revised due to fluctuations in exchange rates, regardless of any benefit to
UNHCR or the contractor.
The 1% Appendix D contribution should not be deducted from the individual contractor’s
fees but charged directly to the relevant project or ABOD chapter, and is to be transferred
into a UNHCR account Situation 9001, Account 443001 when effecting payments to the
contractor.
An Individual Contractor’s fees and related costs must be charged to a relevant project or to
GL accounts 622XXX of the ABOD if related to Administration.
Refer to the IOM/011-FOM/011/2013 - UNHCR Policy on Individual Contractors for
additional information on individual contractors:
• Authorities and responsibilities for hiring;
• Selection and hiring;
• Contractual terms and conditions;
• Remuneration;
• Conditions of Service;
• Administrative details of Health and Security;
• Travel arrangements and related matters.
25 OTHER EXPENSES
25.1 BAD DEBT EXPENSE
Bad debt expenses arise when allowances for doubtful accounts are established or when
monetary assets are written-off without previously recording an allowance. Establishment of
allowances for doubtful accounts and the accounting of write-offs of monetary assets are
centralized with AFS.
For additional information refer to Section II, part 12.10 of this Manual on Allowances for
Doubtful Accounts.
25.2 TRAINING
The training budget is centrally administered by the Global Learning and Development Centre
(GLDC) and any amounts allocated to Country Offices can be utilized only for training activities.
Training costs must be charged to GL accounts 691XXX.
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25.3 FOREIGN EXCHANGE (GAINS AND LOSSES)

All non-US dollar transactions for all UNHCR’s Operations in the Field and Headquarters must
be translated into US dollars using the prevailing UNORE at the time of the transaction.
UNHCR will apply the UNORE that is set by the United Nations at the end of each month, or
the latest UNORE that is either adjusted at mid-month or adjusted on an ad hoc basis, to non-
US dollar transactions occurring in the following month. This process is done automatically by
MSRP.
Exchange gains and losses resulting from the settlement of transactions in currencies other
than the US dollar will be recognized in UNHCR accounts as realized gains or losses.
Country Offices must charge realized losses on exchange to GL accounts 671XXX.
For additional information refer to the UNHCR Accounting Policy on the Effects of Changes
in Foreign Exchange Rates (IPSAS 4) of December 2011.
25.4 MISCELLANEOUS EXPENSES

Miscellaneous expenses may include:
• Examinations other than medical;
• Miscellaneous claims and adjustments;
• Rounding differences and small balance adjustments.
apply to the procurement of miscellaneous services.
Miscellaneous services must be charged to accounts 695XXX.
26 COST RECOVERY
There are situations where costs incurred by the organization may need to be recovered from
personnel. In this case the recovery process is described in the relevant Section of this Manual.
Such situations may include:
• Travel: Section V, Part 7 of this Manual;
• Communication: Section V, Part 12.6 of this Manual;
• Accommodation: Section IV, Part 6.1 of this Manual; or
• Parking: Operating Procedures on Parking facilities for Geneva staff.
27 ADJUSTMENT VOUCHERS
Journal Vouchers enable offices to effect adjustments to their accounts. Journal Vouchers
should be issued with a zero amount. For positive or negative net transaction amounts, Regular
PO or Non-PO Vouchers should be used.
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Cases of overpayment should be corrected using an adjustment voucher by debiting open item
account (Miscellaneous Receivable (Non-Staff) 240006) and crediting the chartfield account
initially charged. This will ensure that the overpayment is taken into account and recording of
transactions is corrected. Reasonable efforts should be made to recover the full amount that
has been initially overpaid.
For further information, refer to the MSRP Training Material Participant Guides for detailed
instructions on Voucher Preparation.
Adjustments (either through Journal Vouchers or Regular Vouchers) can be made for prior
periods (months) within the same year. Adjustments for prior years, if material in amount,
should be requested through AFS.
Admin/Finance Officers must use the following journal naming convention:
a) Copies between ledgers: ALCxxxxxxx;

b) Allocation process or ALCMxxxxxx (created manually);
c) Adjustment entries: ADJxxxxxxx;
d) Accrual: ACCRxxxxxx;
e) Commitment Revaluation: COMMRxxxxx;
f) Working Capital transfer: WCADxxxxxx.
g) Correction: begins with the initials of the person recording the correction.
Adjustment Vouchers (ADJ) are not subject to the MSRP 3-way matching. They must be
justified in writing and supported by valid documentation.
ADJ need to be certified by Admin/Finance Officers and approved by Heads of Office.
Heads of Office must request every month from Admin/Finance Officers a list, explanation
and valid supporting documentation of all journal vouchers ADJ recorded in the MSRP in
their locations.

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163

1 General Definition 3.12 Technical Approver

5.7.5 Year-end Procedures

V 6 Supplies And Consumables For

8 Temporary Assistance 17 Commercial Rental of Vehicles

9 Medical Insurance 18 Accomodation Equipment and

10 Accumulated Annual Leave 20 Private Sector Partnerships

Employee Payments to POs (goods Non-PO

Expenses represent the consumption of resources, depletion of assets or the incurrence of

2 AUTHORITY TO INCUR EXPENSES

• Financial accountability; and

• Principles of financial management.

• Guards and security escort services;

• Emergency water/food supplies;

• Entrance control equipment;

• Walls and fencing;

3 PROCURE TO PAY PROCESS

3.1 CONTROLS IN PROCURE TO PAY PROCESS

Internal controls are applied to ensure that:

• Spending is in line with original plans and budget is available.

• Payment is in line with original plans and budget is available;

• UNHCR bank accounts are not overdrawn;

• Bank accounts are never overdrawn.

• MSRP automatically records the cash disbursement;

• Country Offices cannot instruct banks to change authorized signatories;

The purpose of these financial controls is to ensure that UNHCR funds

• On goods and services required for the operation (necessary,

3.2 DELEGATION OF AUTHORITY PLAN (DOAP)

Rules for segregation of roles under DOAP:

3. Voucher Preparer (Non-PO) cannot be combined with Technical Approver.

a) Vendor offers against MSRP POs;

This means to:

• Confirm availability of funds for the purpose.

• What goods or services need to be purchased (item, quantity);

• Services (e.g. security, cleaning, electricity); and

iii. Inventories (INV);

3.4 PROCUREMENT PROCESS

Thresholds Increased Thresholds – for newly

Headquarters 4,000 40,000 4,000 100,000

Field 4,000 40,000 4,000 100,000

• When there is an exigency for the requirement;

Key attributes RFQ ITB RFP

When? Used as a method to Standard and firm Standard and firm

Tendering method Non-formal Formal Formal

a) Standard threshold: a) Standard threshold: a) Standard threshold:

US$4,000–40,000 > US$40,000 > US$40,000

b) Declared L2/L3 b) Declared L2/L3 b) Declared L2/L3

US$4,000–100,000 > US$100,000 > US$100,000

No less than three 8–25 8–25

Deadline for No minimum period 4-8 weeks 4-8 weeks

Strict deadline for NO YES YES

Two envelope NO YES YES

Accept quotations YES NO NO

Tender reception is NO YES YES

Bid Opening NO YES YES

3.4.4 VENDOR MANAGEMENT AND ADMINISTRATION

Vendor Classification Description

Implementing Partner An entity to which UNHCR has entrusted the implementation of

Employee UNHCR staff member with an HR employee ID.

Consultant Individual Consultant (HR Policy IOM/009-FOM/009/2013 applies).

Independent Contractor Individual (Professional) Goods or Service Provider.

Beneficiary Individual person of concern (refugee, IDP); not an organization.

UNV United Nations Volunteer.