Grants Management - Pass-through Grant Execution

Transcription

1 Grants Management - Pass-through Grant Execution Umoja Grants Management Overview Version 1 Last Modified: 13 April

2 Agenda Course Introduction Module 1: Overview of Pass-through Grant Execution Process Module 2: Creation and Approval of Grant Purchase Order Module 3: Processing of Advance Module 4: Settlement of Advance and Processing of Invoice Module 5: Reports Course Summary Course Assessment Course Survey 2

3 Course Objectives After completing this course, you will be able to: Explain the IPSAS treatment for cash transfers to implementing partners Create grant specific purchase orders Create an advance to an implementing partner Process a settlement of an advance through a service entry sheet Process a self billing invoice (evaluated receipt settlement) Review a purchase order history 3

4 Course Overview The purpose of the Umoja Grants Management Advance and Settlement Process for Implementing Partners course is to explain the detailed process involved when funds are provided to implementing partners. Prerequisite Review You should have completed the following prerequisite courses: Umoja Grants Management Process - Framework I Umoja Grants Management Process - Framework II Umoja Project Management Process Course Duration: 9 hours 4

5 Module 1 Objectives After completing this course, you will be able to: Explain the IPSAS treatment of advances to implementing partners Explain the overall advance to implementing partner and settlement process 5

6 IPSAS Treatment Advance vs Expense IPSAS requires the recording of an advance when funds are provided to an implementing partner to carry out activities for a specific project that the UN has undertaken from funds provided by a donor. This understanding is documented through a funding agreement. The services are generally provided to a target population by the implementing partner utilizing financing received from the United Nations. The Organization receives in return substantive and financial reports from the implementing partners on the delivery of the requisite programme deliverables. Expenses related to transfers to implementing partners should be recognized when the implementing partner delivers the agreed services as evidenced in the financial reports from them. At this time, settlement of the advance is recorded in the books. 6

7 IPSAS Treatment Advance vs Expense In contrast, funds provided to an end-beneficiary is not recorded as an advance but instead recognized in the books as expense when the disbursement is made. These funds are deemed to be an outright grant with payment made directly to the end-beneficiary and reporting is not required. For further guidance, please refer to the UN Corporate Guidance on Funding Arrangements, Section 6, Other Topics. 7

8 Roles & Responsibilities The following Umoja Enterprise roles are involved in the GM for Grantee process: GM Account User Creates and maintains grant and related Master Data Creates Finance (FI) accounting transactions Creates GM Purchase Orders (PO s) GM Account Approver Approves documents and further processes the GM Master Data Approves A/R, A/P and General Ledger (G/L) documents related to grants Approves GM PO s GM Grants Creator Creates and maintains grant and related Master Data in substantive offices Creates GM PO s 8

9 Advances to Implementing Partner and Settlement Required data before an advance can be processed: 1. Simple Grant (S1) or Main Implement Grant (M1) in Award/Operational Status 2. Pass-through Grant (P1) in Award/Operational Status 3. Project/WBSE in Released and Budgeted Status 4. Released Budget in either S1 or M1 Grant 5. Relationship established between S1 or M1 grant and P1 grant 6. Object Mapper established in either S1 grant or M1 grant 7. Receipt of Funds in the Bank Account 9

10 Advances to Implementing Partner and Settlement Advance Process in Umoja: 1. Create Purchase Order in SRM 2. Create Down Payment Request (F-47) 3. Approve Down Payment Request in workflow 4. Process payment (F110/FPRL_LIST) Settlement Process in Umoja: 1. Create Service Entry Sheet upon receipt of IP report 2. Create Evaluated Receipt Settlement 3. Process additional payment, if needed 4. Process payment in F110 for additional payment 10

11 Module 2 Objectives After completing this course, you will be able to: Create a Purchase Order (PO) in SRM Complete the PO and send the document to workflow 11

12 Create Purchase Order in SRM Purchase Order types for Grants ZGPT (Pass-through grants) is used for advances to implementing partners. ZGIK (In-Kind Grants) is used for contributions other than cash. Service Material for Grants Service materials are used to identify the sponsored classes agreed with the implementing partner. Following are some service materials used for grants under the Product ID field: IP - Transfers and Grants to Counterparts IP Travel IP - Contractual Services IP - Supplies, Commodity and Material IP - Operating and Other Direct Costs IP - Equipment, Vehicle and Furniture Other service materials are available when using the Search functionality in the Product ID field. 12

13 Create Purchase Order in SRM Quantity and Price To facilitate partial settlement of advances, it is easier to use the actual price in the quantity field and enter $1 in the price field. If the advance is for $10,000, the quantity entered should be 10,000 and the price $1. When processing the settlement, it will be more transparent to see that only 2,300 units have been settled by the implementing partner rather than.23 units in the quantity field. 13

14 Create Purchase Order in SRM Account Assignment The account assignment for grants in SRM require that the following fields be filled in. Select WBSE or Internal Order from the drop down list. 14

15 Create Purchase Order in SRM Account Assignment Enter the appropriate WBS element in the appropriate field. 15

16 Create Purchase Order in SRM Tolerance If the IP is allowed to have spending tolerance between the Purchase Order service lines, enter the tolerance limit (%) in the Under delivery/over delivery tolerance field. In case the IP is allowed 100% tolerance between the PO service lines, select the Unlimited box. 16

17 Create Purchase Order in SRM Completion of PO When the purchase order creation is complete, the user clicks the button Order to forward the document to the staff with approving roles. 17

18 Create Purchase Order in SRM Approval The approver selects the PO from the workflow list and clicks the button Approve when he/she agrees. The approved PO in SRM is now automatically available for display in ECC. Further transactions from hereon can be viewed using the purchase order history. 18

19 Module 3 Objectives After completing this course, you will be able to: Process an Advance in Financial Accounting using the Down-Payment Request function Approve the Down-Payment Request in workflow 19

20 Create Down Payment Request Down Payment Request (DPR) DPR is a memo entry (noted item) used to process an advance. (This is not an accounting entry; hence, the system generates only one leg.) DPR only becomes an advance when the payment is made and the bank has been credited. 20

21 Create Down Payment Request Transaction code - F-47 When processing the transaction, a vendor is required. For advances to implementing partners, the special GL indicator to be used is Y. Without this special GL indicator, the entry will be recorded as debit to Accounts Payable. It is also very important to remember that the other elements of the coding block are also required and this is complied with by entering the Purchase Order number and the PO line item numbers in the appropriate fields. The detailed steps to create a Down Payment Request is shown in the Work Instruction, F-47 Create Down Payment Request. 21

22 Approve Down Payment Request The approval of the down-payment request takes place in the Business Workplace. Once the document is approved, the document is included in the Treasury payment run for payment processing. 22

23 Recording of the Advance When the down-payment request is recorded as a disbursement during the Treasury payment run, the accounting entry recorded in the books follows: Dr. Advance to IP Cr. Cash in Bank EFT AP The Financial Accounting document generated from this process is KZ document type and the range of documents begin with 33xxxxxxxx. 23

24 Monitoring of the Advance Advances processed against a PO are reflected in the PO history of the document. The user can track down the down-payment request and the subsequent down-payment following the Treasury payment run. 24

25 Module 4 Objectives After completing this course, you will be able to: Record the IP expenses using the service entry sheet Understand the settlement of the advance Process the self-billing invoice 25

26 Create Service Entry Sheet Upon receipt of the report from the implementing partner, the user records the actual expenses incurred using the service entry sheet function in the system. Transaction ML81N On the service entry sheet, enter the actual amount in the quantity field for each expense using the service material code ( aka sponsored class). 26

27 Create Service Entry Sheet Once entries to the service entry sheet are completed, the user saves the document. Notice that the system indicates to the user that it is waiting for acceptance. Since there is no workflow in the service entry sheet, the acceptance function is used as the approval process for the report submitted by the implementing partner. To accept (approve), the approving officer (with GM Account Approver role) gets into the service entry sheet and clicks the Accept button (green flag icon - ). 27

28 Create Evaluated Receipt Settlement The settlement of the advance process is not complete without the invoice process. The accounting entry in the invoice debits AP Ex Goods Receipt and credits AP UN Family (the account that was debited earlier in the goods receipt when the advance was settled). The credit to AP UN Family is required in order to complete the settlement process. In order to process this transaction, it is necessary to check if the information is updated in the Business Partner profile of the implementing partner. To do this, the user should be in the Z00011 UN vendor role of the BP. Select the Purchasing button from the toolbar and click on the Purchasing Data tab. Scroll down to locate Control data. The last three radio buttons are relevant to Evaluated Receipt Settlement and should have a check mark. 28

29 Create Evaluated Receipt Settlement Transaction code MRRL Indicate the relevant Purchase Order number, leave the test run indicator on initially to simulate transaction and Execute. After viewing the next screen, remember to remove the test run indicator for the production run. 29

30 Create Evaluated Receipt Settlement Following a production run, the next screen shows the invoice number generated by the evaluated receipt settlement process. On this screen, the user can double click the document number to view the accounting entry. Note that the system has now debited AP Exch Goods Receipt and credited AP UN Family. 30

31 Create Evaluated Receipt Settlement Note that the system automatically created payment block in the credit line item to prevent inadvertent processing of this account in the payment run. PLEASE DO NOT REMOVE THIS PAYMENT BLOCK. Removing the payment block will allow the system to reprocess the accounts payable transaction. 31

32 Review Purchase Order History The Purchase order History tab reflects all transactions processed against the PO. The documents for the down-payment request, down-payment, downpayment clearing, service entry sheet, goods receipt and invoice are documented in this tab and can be referred to at any time. Transaction code ME23N 32

33 Review Grants Management Line Item Report Menu path: Accounting>Public Sector Management>Grants Management>Grantee Management>Information System> S_PLN_ Grants Management: Line Item Display Transaction code S_PLN_ Value type 51 is purchase order and reflects the flow of transactions in the purchase order. Value type 54 shows the goods receipt/service entry sheet entries. Value type 99 shows actual expenses. 33

34 Review Grants Management Cash Balance Report Transaction code ZGMBUDGET_REL This column Consumable Amt shows the approved budget in Funds Management for the pass-through grant. The column Consumed Amt shows both the commitment and actual expense charges. The column Available Amt is the remaining budget balance. 34

35 Review Funds Management Budget Availability Report Transaction code FMAVCR02 This column Consumable Amt shows the approved budget in Funds Management for the pass-through grant. The column Consumed Amt shows both the commitment and actual expense charges. The column Available Amt is the remaining budget balance. 35

36 Congratulations! You have successfully completed the Umoja Pass-through Grants Execution course. 36