Creating a common/shared services project:
At the beginning of the year, UNDP COs should create a separate ‘common services’ management project, with at least the following distinct Activities (as applicable) for each common/shared service:
The total budget for each activity must be equivalent to the total estimated annual cost of these services. In case there are specific additional services that the agencies have agreed to share, additional activities can be created. The total budget for each activity must be equivalent to the total estimated annual cost of that services, and each participating Agency’s share in the cost of a particular service should be represented by one funding line under the corresponding activity in the project budget (see example).
In instances wherein the reimbursements from several agencies are lumped together, the common Donor code to be used is ‘ 00012’ – UNDP. On the other hand, you can use the individual agency (Donor) codes to reflect each agency’s share for reporting purposes.
In setting up the project budget chartfields, use the following FUND codes for common services budget and expenditures of the participating agencies:
These fund are cash-controlled by Department and not by Donor code. As for UNDP’s part, fund code 02300 or 11300 is used in the common/shared services project.
The budgetary ACCOUNT codes to be used for the Common/Shared Services project budgets are:
Positions and staff under common/shared services:
Whenever a position is funded by several Agencies under this arrangement, the Agencies also need to agree on the percentage split of total personnel cost upfront, and the administration of such a position follows the partially billable concept explained in the Payroll Section of the Policies and Procedures. All staff of all Agencies for whom UNDP administers pensions and/or MIP contributions need to be included in Atlas and payrolled in Atlas – even if they do not have Letters of Appointment from UNDP
Whenever Agencies agree to share the cost of a staff position, where UNDP’s share of the cost has originally been budgeted as part of General Operating Expenses, request a transfer of funds. For non-staff-related expenditure, the UNDP contribution to the common/shared service project can be brought in directly as a budget line from the Regular Resources ASL; this is not possible for staff-related items. The UNDP contribution is budgeted under the “7” series of accounts, whereas the salary payments from Atlas payroll are recorded under the “6” series. Hence, when staff under 100 or 200 series are recruited for a common/shared service project, it is necessary to request the Office of Planning and Budget to transfer the required funds from the Regular Resources budget to the shared services fund.
Dispensary services and supplies:
Dispensary services and supplies should be agreed on and budgeted as a distinct activity in the common services project in the same fashion as other common/shared services. Goods and services needed for the dispensary are procured directly from WHO against the common services project, and therefore should be received, and paid to WHO, by each individual office. ASD/OFA will no longer be involved in this process.
Contributions of UNDP to common/shared services:
UNDP’s contribution to common/shared services will consist of contributions that are managed at the fund/department level (e.g. regular resources support budget, UNDSS, country office XB earnings), as well as contributions that are managed within other UNDP projects (e.g. UNDP development projects).
For the contributions at the fund/department level, acceptable funding lines are:
fund code 02300 for the UNDP portion coming from regular resources BSB, or
fund code 11300 for extrabudgetary earnings, or
fund code 68100 for UNDSS (as agreed upon by the Field Security Officer).
Note that in the case of fund code 02300 you will have to reduce the budget in your management project accordingly.
For the contributions that are made out of other UNDP projects (i.e. development projects) it is important to show the contribution as an expense to the project as a debit using the common/shared services identifiers in the 800006-10 range. Consequently, a CRU bill must be used instead of the CSA bill and the credit to the common and shared services chartfields must be manually entered. (The existing CO billing distribution code does not apply.)
Contributions of Atlas Agencies to common/shared services:
In the case of ATLAS Agencies, advances will be given by the Agency on the basis of a CSA bill through the processing of General Ledger journal entries, crediting directly the CO’s common/shared services account. At the same time, the automatically created receivable will need to be written-off by the CO as an acknowlegment that the funds were received. If only part of the receivable is settled, then the remaining amount of the receivable should be also be written-off. (Write-off instructions to be provided with a forthcoming Accounts Receivable Atlas release.)
Alternatively, an Atlas agency might actually make a cash payment to the UNDP CO. In this case, the payment would be received by the CO and applied against the receivable created by the upload to AR of the CSA bill, which would then make the money available to the common/shared services project.
When creating CSA bill types for Atlas Agencies, the CUST ID selected should not be the CUST ID set up for the CRE bill type, which is specifically set up for the Inter-Unit Atlas Agencies.
Do NOT use CUST ID 10036 (UNOPS), 10037 (UNFPA), 10038 (UNCDF), 10039 (UNIFEM).
Instead, use the following CUST ID for the Atlas Agencies when billing for common/shared services using the CSA bill type:
UNIFEM - 10776
UNCDF - 10777
UNFPA - 10778
UNOPS - 10779
Contributions of Non-Atlas Agencies to common/shared services:
In general, if the non-Atlas agencies pay for their share in cash locally, the payment would be received by the CO and applied against the receivable created by the upload to AR of the CSA bill, which would then make the money available to the common/shared services project.
If no cash is received from the Non-Atlas Agency, the CRN bill type should be used.
A customization to the CRN bill type was developed to capture the non-Atlas Agency required data which are: PO Reference, ULO # and Agency Project #. Preparing a GLJE is not feasible since the above agency reference data will not be available.
The AP/AR work-around, if no cash is received from the non-Atlas agencies should be discontinued .
Creating a common/shared services (CSA) invoice
Once a common/shared services project is set up in the country office’s Business Unit, UNDP country offices should generate one CSA invoice per Agency.
A CSA bill can have one line or mutiple lines, depending on the number of common services the agency participates in. Each bill line represents a common service, using the relevant fund code. For example, a bill line for premises uses fund code 11920.
The bill type identifier for common/shared services is CSA.
CSA bill types must be created in USD (US dollars) currency only.
“Header-Primary”: Select a contact person under “Biller” for your unit. This person’s name and email will be printed on the invoice. If the currency code is NOT USD, at the header primary page, click the ‘Y L $’ icon (see screenshot below) and change the default currency to USD.
“Header-Note”: Enter the period (year) on which the common/shared service calculation is based and any other important references
“Line List”: Enter the services using the lookup functionality. Table ID is “ID”; the identifiers for the common/shared services start with 800007 to 800010 and include no default price. For each invoice per Agency, there needs to be only one line of service i.e. line for total cost of Premises, another line for cost of Security, another line for cost of Communications etc.). The common service project PCBU, Project ID and Activity must be properly entered by clicking the Project link. This is necessary to correctly set up the external pending item in Accounts Receivable with the common service project, against which payments will be made. (each time a service is provided, mandatory)
“Line-Note”: Enter additional information, for example square meters occupied by the Agency
“Acctg – AR Offset”: Enter 55085 for Account for each line created; receivable will be created automatically in AR based on this account
“Acctg – Rev Distribution”: Enter the accounting information of the common/shared services project you set up. Each line in the “Line Lis