Project and Budget Formulation in Quantum

UNDP’s standard procedures as advised in UNDP Programme and Operations Policies and Procedures (POPP) - Project Design should be followed for Global Fund project and budget formulation. This includes guidance on how to ‘Formulate Programmes and Projects,’ ‘Select Responsible Parties and Grantees’ and ‘Appraise and Approve.’ For more information on selecting Sub-recipients, please refer to the Sub-recipient Management section of this Manual.

It is important to remember that the term “Project” in UNDP policy represents the project document, Therefore, there may be one Project with multiple Outputs (“Projects” in Quantum). The budget control on budgets in Quantum (revenue, expenses, advances, etc.) is at the output level and NOT at the Project level.

Global Fund project/budget setup in Quantum should adhere to the following principles:

• Projects created in Quantum should conform to the standard structure that one Global Fund Grant Agreement corresponds to one Quantum Project with one Quantum Output.

• Country Offices (COs) should not create multiple outputs for one grant as this complicates cash management and cash reconciliation reports in Quantum. Only if the grant has an allocation from the Global Fund for COVID-19 (C19RM) activities, a second output can be added within the existing project.

Practice Pointer

Quantum allows other donor funding, including UNDP core funding, to be combined with the Global Fund funding. However, it is NOT recommended to comingle multiple donor funding with the Global Fund grant project due to various reporting and closure requirements specific to the Global Fund.

Country Coordinating Mechanism (CCM) funding (Fund 30068 Donor 000327) should have a separate project and output from main grant funding (Fund 30078 Donor 000327). All Financing Agreements, signed between UNDP and the national PR with funding from the Global Fund, should be budgeted and funded using fund code 30085 and respective the Donor code of the respective Governments.

The proposal and project are created in Quantum Project Management Module (for guidance refer to UNall Knowledge Bases>Quantum>Project & Portfolio Management

* UNDP as Principal Recipient (PR) assumes the role of Implementing Partner (Direct Implementation - DIM) and is reflected in Quantum, when creating the Project, Financial Plan and Award under the “Institution ID” field (Institution ID - 99999). * Where UNDP serves as Responsible Party, it should be reflected in the Implementing Agent field in Atlas (Implementing Agent - 001981).

When UNDP is the PR, COs use a set of budget account codes in Quantum, which correspond to the nature of expenses of the respective activity of the Global Fund Detailed Budget.

Each Budget line in the Global Fund Detailed Budget will correspond to an Activity (or task) in Quantum for both project budgeting and transaction purposes.

Activity ID should be numbered exactly same as the budget line number in the GF Detailed Budget without any prefix or suffix. The exceptions:

a) the budget line dedicated to General Management Support (GMS) fees where the Quantum Task can be created as “GMS”. b) budget lines related to procurement of Health Products and Pharmaceuticals where the related Quantum tasks can be shortened to start from HP. For example, task HP0046 can be created for budget line SCPOP26HP0046. c) budget line that was put in the Global Fund Detailed Budgets under general Implementer (e.g. SRs) with considerations that activity will be split between several Responsible Parties. For such budget lines, several tasks should be created with addition of dash and Responsible Party code. For example, tasks 21-2066 and 21-1995 should be created for task 21 if implementation of this activity is split between several implementers (in this example, between 002066-World Health Organization and 001995-United Nations Population Fund).

Practice Pointer

* Each Sub-Recipient (SR) should have an Implementing Agent (IA) code. Please check whether an IA code exists and if not, request an IA code via UNAll portal

* The activities for which SRs will be responsible, should be included as separate lines in the project budget. The Chart of Account for these lines should use the IA code for the relevant SR.

GMS Setup

UNDP's indirect cost recovery known as GMS should be included in the project budget as a separate budget line.

GMS is earned (or charged) on 'earn as you go' basis for the Global Fund project. The ‘earn-as-you-go’ method charges the GMS fee only when expenses are incurred based on actual expenses posted in general ledger.

For further guidance, refer to the Guidance Note on Quantum GMS Set-Up & GMS Reports available on the Office of Financial Management’s intranet and UNDP POPP Resource Planning and Cost Recovery.

The GMS setup for Global Fund projects should be:

* GMS calculation: Earn as you go

* Donor: 00327* and Fund: 30078 (or 30068 for CCM funding, or 30085 for financing agreements)

* Rate: 7 percent and Effective date: grant start date or if applicable pre-allocation start date

* Distribution modality: Global Fund Projects (30078, 30068 and 30085)

* For Financing Agreements (FA) funded by Global Fund resources, use Fund 30085 and Donor code for the respective Government that UNDP signs the FA with. In those cases where non-Government entities request UNDP to provide Technical support services, please contact the UNDP Global Fund Partnership and Health Systems Team (GFPHST).

Practice Pointer

The above procedures are only applicable for the Global Fund grants where UNDP is the Principal Recipient, Fund Administrator or supports the Country Coordinating Mechanism (CCM). Furthermore, effective 1 November 2019, the same GMS rate and internal GMS distribution across UNDP units are applied to non-Principal Recipient (PR) financing agreements funded by Global Fund resources as those agreed for Global Fund grants where UNDP is the PR.