FI106 Umoja Grants Management Overview. Umoja Grants Management Overview Version 12 Last Modified: 14-Aug-13

Transcription

1 FI106 Umoja Grants Management Overview Umoja Grants Management Overview Version 12 Last Modified: 14-Aug-13 1

2 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 2

3 Course Overview The purpose of the Umoja Grants Management Overview course is to explain the Grants Management (GM) for Grantee process. Umoja GM provides UN with an integrated tool that it can use to manage the grants received from donors or sponsors. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Course Duration: 2 hours 3

4 Course Objectives After completing this course, you will be able to: List the key roles and responsibilities involved in the Grants Management (GM) process Describe the key changes and benefits of Umoja GM Name the elements that constitute GM Master Data Describe the GM process within Umoja 4

5 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 5

6 Module 1 Objectives After completing this module, you will be able to: Define GM in Umoja Explain the impact of IPSAS requirements on the voluntary contributions to UN Describe the key changes in GM after Umoja implementation List the benefits of the Umoja solution Describe the integration of the GM module with other modules 6

7 Key Terminology Key Term Grant Fund Sponsor Grantee Grantor Description A Master Data element used to maintain the terms and conditions of the grantor s contribution A fund is established for the purpose of financing fully or in part the cost of programme and project activities consistent with the United Nations aims and policies. It is a separate and distinct accounting object used to identify the source and use of funding from voluntary contributions. A donor in UN terminology. A government, institution or individual that provides funding to a grantee organization (in this case, UN) An organization or an individual directly receiving funds from a donor or sponsor A donor or sponsor that provides resources to UN. UN can also act as a grantor by providing resources to other non-profit organizations, such as implementing partners or end beneficiaries 7

8 Key Terminology Key Term Donor Agreement Cost Sharing Availability Check (AVC) Description A legal agreement between a donor and UN outlining the terms and conditions for the use of a voluntary contribution A concept in Umoja that refers to an organization that agrees to use their own internal funds on a portion of a project, while the sponsor funds the rest In Grants Management, a check used to determine whether enough cash is readily available (received from the donor) when the budget is ready to be processed 8

9 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 Accounts Receivable (A/R), Accounts Payables (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 9

10 Roles & Responsibilities The following Umoja Enterprise roles are involved in the GM for Grantee process: GM Budget User Unreleased Pre-posts the GM unreleased budget GM Budget Approver Unreleased Posts the GM unreleased budget GM Budget User Released Analyzes the cash received for budget release Pre-posts the GM released budget 10

11 Roles & Responsibilities The following Umoja Enterprise roles are involved in the GM for Grantee process: GM Budget Approver Released Analyzes the cash received for budget release Posts the GM released budget GM Support User Maintains system activities from a technical point of view GM Master Data Maintainer Maintains central GM Master Data, central tables and derivation rule 11

12 GM Overview GM is a module in Umoja, designed as a central system used to store all grants, projects and donor information in a standardized way. It allows UN to manage contributions both monetary and in kind from donors or sponsors, from pre-award administration to post-award management and reporting. The GM module consists of the following two components: GM Grantee GM Grantor In GM Grantee, UN acts as a grantee and its donors perform the grantor role. Cases when the UN is the grantor will be handled through Passthrough grants. In GM Grantor, UN acts as a grantor. Note: Only GM Grantee is part of the scope of Umoja Foundation. GM Grantor will be a part of the larger Umoja scope to be implemented in the future. 12

13 Benefits of the Umoja Solution for the GM Process The transition of GM to Umoja results in the following benefits: Compliance with IPSAS requirements Better financial controls, including checking for cash and budget availability at the grant level. Usage of budget is restricted based on identified Sponsored Program. This increases adherence to donor spending requirements A centralized system to store all grants, projects and donor information in a standardized way. Details of the donor agreement are captured in one system as Grant Master Data Immediate access to real-time and up-to-date financial reports, enabling staff to efficiently manage the voluntary contribution budget Improved reporting flexibility and financial transparency 13

14 Key Changes in the GM Process IMIS Umoja Signing Donor Agreement No action in IMIS Creation of Grant Master Data, Sponsored Program and project structure Recognition of income Funding Project Activities Creation of cost plan in Excel Creation and approval of unreleased budget Link Grant and SP to Cost objects (Work Breakdown Structure Element/Internal Order) Release Spending Authority Creation of project code in IMIS Recognition of income upon cash receipt Issuing appropriation and allotment Creation and approval of Released Budget upon cash receipt 14

15 Key Changes in the GM Process Grant Execution UN and IP IMIS Creation of obligation Payment request and disbursement Creation of allocation Advance to Implementing Partner Record expenditures reported by Implementing Partner Umoja Creation of Passthrough Grant Issuing Released Budget for Passthrough Grant Creation of PO and down payment to Implementing Partner Record expenditures reported by Implementing Partner Creation of PO, payment request and disbursement for UN execution Grant Closure Donor reporting Refund to donor Donor reporting Refund to donor Close Passthrough Grant, Main Implementation/Simple Grant and Resource Mobilization Grant 15

16 Impact of IPSAS on Voluntary Contributions to UN The impact of the International Public Sector Accounting Standards (IPSAS) on the voluntary contributions to UN is in the following areas: Recognition of Revenue Unconditional donations are recorded as revenue upon signing the Donor s agreement Conditional donations are recorded as a liability initially and later reclassified to revenue upon donor s acceptance of UN s report. Note that the terms of acceptance may vary depending on the acceptance criteria defined in the Donor agreement. For example, acceptance can be defined as the passage of time if stipulated in the Donor agreement UN reports the unsigned grant as a contingent asset at the end of the year In-kind contributions are reported using the same conditionality as monetary contributions Grants-out to End-Beneficiaries Money granted to end beneficiaries is expensed immediately Agreements with Implementing Partners A PO is established to obligate funds, and then the advance is recorded Money spent by an Implementing Partner is expensed when proof of expenditure is provided by the partner 16

17 GM Grantee Module The following activities are executed within the GM Grantee Module: Create and maintain the Grant Master Data throughout the Negotiation process for each grant Apply various indirect cost rates to different expense categories Manage, report and bill the grants on a modified cash basis Manage the execution of the activities that the grant supports. UN may budget these activities and enforce these budgets Record all costs, revenue and required statistical information against the grant in a manner required for reporting to donors 17

18 GM Integration with other Modules The GM process is a highly integrated process, as illustrated below: Fundraising Exchange of Letters Donor Agreement Letter of Acceptance Internal Order Controlling (CO) Grants Management (GM) Project Systems (PS) Work Breakdown Structure Element Sales & Distribution Billing Finance- Treasury (FI-TR) Funds Management (FM) Financial Acct (FI) Funds Availability Process A 18

19 GM Integration with other Modules The GM process is a highly integrated process, as illustrated below: A Funds Management (FM) Execute Transactions Purchase Order Funds Commitment Funds Reservation Funds Pre- Commitment Financial Acct (FI) 19

20 Learning Checkpoint 1 Which of the following are benefits of the Umoja system in GM? Select the correct option. A. Immediate access to real-time and up-to-date financial reports B. Details of the Donor agreement are captured in one system as Grant Master Data C. Increased adherence to donor spending requirements D. Automatic creation of grants in the system E. A, B & C F. A, C & D 20

21 Learning Checkpoint 1 Which of the following are benefits of the Umoja system in GM? Select the correct option. A. Immediate access to real-time and up-to-date financial reports B. Details of the Donor agreement are captured in one system as Grant Master Data C. Increased adherence to donor spending requirements D. Automatic creation of grants in the system E. A, B & C F. A, C & D Option E is the correct answer. The first three options are benefits of the Umoja system in GM. 21

22 Module 1 Summary The key points covered in this module are listed below: GM is a module in Umoja, designed as a central system used to store all grants, projects and donor information in a standardized way GM allows UN to manage contributions both monetary and in kind from donors or sponsors, from pre-award administration to post-award management and reporting Only GM Grantee is part of the scope of Umoja Foundation The impact of IPSAS on the voluntary contributions to UN is recognition of revenue, grants-out to end-beneficiaries and agreements with implementing partners Postings to GM module also originate from other modules 22

23 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 23

24 Module 2 Objectives After completing this module, you will be able to: Identify the Master Data elements in the GM process 24

25 GM Maintained Master Data Elements: Overview GM maintains Master Data to support Grantee Management accounting and provides control for award/agreement conditions that apply to sponsored funding. The Master Data elements maintained in the GM module are: Grant Sponsored Program Sponsored Class 25

26 Grant Grant Sponsored Program Sponsored Class The grant is a Master Data object that is used to maintain the terms and conditions of the grantor s contribution. In cases where: UN is a grantee, that is, UN receives contributions from donors, the grant represents the Donor s agreement UN is a grantor, that is, UN gives money to an Implementing Partner, the grant represents the Funding agreement In Umoja, a grant is used to: Solicit and accept sponsor funds, to enforce sponsor restrictions, and to report back to the sponsor based on sponsor s requirements Control how a grant acts for example, budget rule Define how the sponsor is billed based on the agreement in accordance to IPSAS 26

27 Grant Type Grant Sponsored Program Sponsored Class Each grant is defined as a grant type. The grant type is a key Master Data element that allows the users to manage grants and to meet both the sponsor's requirements and internal organizational requirements. It is used to define grant s controls and behaviour. After a grant type is saved, it cannot be modified. The four grant types that exist in Umoja are as follows: Simple Grant Resource Mobilization (RM) Grant Main Implementation (MIG) Grant Passthrough Grant 27

28 Grant Type: Simple Grant Simple Grant Resource Mobilization (RM) Grant Main Implementation (MIG) Grant Passthrough Grant A Simple grant is used when a single donor contributes and UN is required to report on the specific donor contribution (as specified in the Donor agreement). The expenditures are not merged with other donors contributions. 28

29 Grant Type: Resource Mobilization Grant Simple Grant Resource Mobilization (RM) Grant Main Implementation (MIG) Grant Passthrough Grant A Resource Mobilization (RM) grant is used when a donor contributes to a funding pool. This grant represents a Donor Contribution agreement and is used to record revenue, not expenditures. The RM grant is linked to the Main Implementation (MIG) grant via a relationship. 29

30 Grant Type: Main Implementation Grant Simple Grant Resource Mobilization (RM) Grant Main Implementation (MIG) Grant Passthrough Grant An MIG grant is created to provide funding to programme and project activities within UN. The MIG grant is used to record pooled expenditures. One MIG grant is linked to multiple RM grants. The RM grants collect revenues while the MIG grants are used to record expenditures. The reporting is done on pooled expenditures without allocating to each donor. 30

31 Grant Type: Passthrough Grant Simple Grant Resource Mobilization (RM) Grant Main Implementation (MIG) Grant Passthrough Grant A Passthrough grant is created to support activities where UN has a responsibility to report both UN and non-un related expenditures to the donor. This occurs when UN contracts out some portion of the project work to an Implementing Partner. The Implementing Partner is defined as a UN grantee. 31

32 Grant Frameworks In Umoja GM, grant types are maintained under the following two grant frameworks: Grant Framework 1 Grant Framework 2 Single donor grants Donor requires reporting on contribution Grant Frameworks Multi-donor grants Donor requires reporting on pooled expenditures 32

33 Grant Object in Umoja: Framework 1 In Framework 1, the donor is represented by one grant. It is typically a Simple grant. For grants not in USD, an RM grant linked with a MIG needs to be used. The layout of a typical Framework 1 grant is displayed in the diagram below: Donor Contribution Agreement Simple Grant A Relationship Simple:Passthrough 1:N Incoming cash posted Expenditures and payments posted Refunds of cash posted Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Expenditures and payments posted Refunds by Implementing Partners Framework 1: Donor requires reporting on the contribution 33

34 Grant Object in Umoja: Framework 2 In Framework 2, each donor is represented by a separate RM grant. These RM grants represent donors total contributions to the grant s fund. The RM grants are linked through a relationship to the MIG grant that contains postings of payments and other expenditures. The layout of a typical Framework 2 grant is displayed in the diagram below: Incoming cash posted Refunds posted Expenditures and payments posted Donor Contribution Donor Agreement Contribution Donor 1 Agreement Contribution Agreement 1 Relationship RM : MIG N : 1 RM Grant 1 RM Grant 2 RM Grant 3 MIG 1 Expenditures and payments posted Refunds by implementing partners Relationship MIG : Passthrough 1 : N Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Passthrough Grant - 1 Framework 2: Donor requires reporting on Pooled expenditures 34

35 Grant: Indirect Cost The Grant Master Data includes the Indirect Cost (IDC) rate, based on the rate specified on the Donor s agreement. This is essential to UN and represents the Program Support Cost (PSC) calculation The rules for IDC calculation are defined on the Grant Master Data, by marking each sponsored class as IDC-relevant and indicating the rate UN has one rule, that is, IDC is calculated on commitments plus expenditures The percentage for IDC calculation is defined for each grant on the combination of sponsored program and sponsored class. It is also time bound 35

36 Sponsored Program Grant Sponsored Program Sponsored Class The sponsored program is a Master Data object that represents the purpose of contributions. It defines, in the sponsor's view and terms, a program to be funded. In Umoja, the sponsored program is used to: Capture and control (budget) the purpose of the contribution defined in the Donor agreement Represent the programmatic view of the donor. The sponsored program will be used to prepare the donor report Define a level of earmarking to meet donor requirements. This limits the ways to release and transfer budget by capturing information regarding the fund, funds center and funded program A sponsored program can be assigned individually to a grant, or it could be assigned to many grants depending on the agreement. 36

37 Sponsored Class Grant Sponsored Program Sponsored Class The sponsored class is a Master Data object used to provide budgetary control and to support reporting to donors based on their specific requirements. Sponsored classes summarize the sponsor's expense and revenue categories. In Umoja, sponsored classes are used to: Create the condensed donor view of the Chart of Accounts Represent a group of G/L accounts to track revenue and expenses. The high level expenditure category is based on the commitment item structure Control, at the grant level, the categories of expenses that the grant can be used for 37

38 Sponsored Classes: Example Example of sponsored classes for Simple grants are as follows: Sponsored Class Income AS1-VC-CASH AS1-VC-GOODS VC AS1-VC-SERVICES AS1-INTEREST-INCOME AS1-MISC-INCOME Description Contribution in Cash Goods in Kind VC in Services Interest Income Misc income Expenditures AS1-STAFF-PERSONNEL AS1-SUPPL-COM-MATER AS1-EQUIP-VEH-FURNIT AS1-CONTRACT-SERVICE AS1-TRAVEL AS1-OPER-OTHER-COSTS AS1-GRANTS-OUT AS1-TRANSFER-IP PSC-EXP-UN Staff and other personnel cost Supply, Commodity, Material Equip, Vehicles and Furniture Contractual Services Travel Operating & Other Direct Cost Grant Out Expenditure without PT Transfers to IPs with PT PSC UN 38

39 GM Related Master Data Elements In addition to the Master Data elements maintained in the GM module, there are various Master Data elements in Funds Management (FM), Controlling (CO) and Project System (PS) modules that are closely integrated with the Grants Master Data. They are as follows: Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) 39

40 Fund Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) The fund is a related Master Data element containing a self-balancing set of accounts. It is used to identify the source and use of funding from voluntary contributions. Grant There are three types of funds used within GM: External Fund Internal Fund PSC Fund 40

41 External Fund Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) External Fund Internal Fund PSC Fund An external fund represents sponsor money that supports the grant. Only one external fund may be attached to the grant. Therefore, if a sponsor awards money that crosses over multiple external funds, multiple grants would need to be created to accommodate this. These grants would then be grouped together for reporting purposes. 41

42 Internal Fund Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) External Fund Internal Fund PSC Fund Internal funds represent money or other resources contributed by a grantee to help fund activities in relation to which a grant has been awarded. Internal funds are attached to the grant, as needed. These funds are used to track any cost sharing agreed on with the donor and to track the indirect cost recovery resulting from burdening the grant with the indirect costs. Internal funds are defined as part of Umoja. Every grant has at least one internal fund to collect the recovery from the PSC calculation. 42

43 PSC Fund Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) External Fund Internal Fund PSC Fund Program Support Cost (PSC) fund refers to any auxiliary fund that records the program support costs that are generated. Recovery from the PSC calculation are collected in one common PSC fund. 43

44 Internal Order Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) In Umoja, there are three cost objects used to track entities responsible for incurring a cost. The these cost objects are: Cost Center Grant Internal Order (IO) WBSE The IO is a Master Data object in the CO module. It collects costs and revenues for a specific event or simple project that has defined start and end dates. It is usually temporary (unique) in nature and segregates costs from other events or on-going operations to enable more detailed monitoring. 44

45 Internal Order Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) There are two types of IO s related to GM: Revenue recognition IO s are used for grant billing. There is one revenue recognition IO created for each grant Expenditure IO s are used for collecting expenses. These are used in place of WBSE s for short-term projects or one-off events 45

46 Project Structure in Umoja Projects in Umoja are organized into hierarchical structures and tracked in the Project System (PS) module. Project components can be broken down into WBSE s, which help isolate costs, milestones and tasks required to complete the over-arching goal of the project. Project Definition Each project must have a minimum of four levels: Project Goal Work Packages for example: Operating Expense Types Activities Sub-activities The fourth level is optional and can be used to separate costs further

47 WBSE Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) When a project is funded by a grant, every WBSE belonging to that project must be linked to the grant funding it. All WBSE s in levels 1 and 2 are linked to either a Simple grant or a MIG grant depending on the type of grant funding Grant the project. In the case where there are multiple donors funding a project, but each donor requires reporting on contribution, a project structure with WBSE s can be utilized. For example, each donor s requirements are captured in Simple grants, and the Simple grants are linked to a WBSE level within a project structure. When Implementing Partners (IP s) are involved in the execution of a project, their costs and activities are tracked in the lowest level of the project structure (level 3 or 4). WBSE s representing IP activities are linked to the Passthrough Grant funding that partner s work. 47

48 WBSE Fund Internal Order (IO) Work Breakdown Structure Element (WBSE) Since most projects are implemented by a combination of UN staff and IP s, the WBSE s representing the project s activities are typically linked to a combination of Passthrough and Simple/MIG grants. Grant Project Definition Note: Grant-project linkage is covered in greater detail in the level 3 GM courses Passthrough Grant Simple Grant 48

49 GM Master Data Integration Across Modules As you recall from the Master Data & Coding Block course, the Master Data elements from various modules are linked to each other. Simultaneous Posting and Derivation Umoja uses the concept of simultaneous posting in various modules. While all modules get updated in real time, they store the data differently for different analysis. As every module has different fields for different analytical reasons, Umoja uses a functionality called derivation to populate the dependent fields from the source field. 49

50 Coding Block Elements Simultaneous Posting and Derivation: Integration Below are the coding block elements and corresponding entries in FI, CO, FM and GM: Module FI Financial Acct CO Controlling FM Funds Mgmt GM Grants Mgmt ENTERPRISE STRUCTURE CODE COMPANY CODE CO AREA FM AREA G/L acc related G/L Account Cost Element Commitment Item Sponsored Class Funding Source Related Organizational & activity related Programmatic Fund Fund Fund Fund Grant Grant Grant Grant Business Area Segment Cost Center (org structure: Department, Division, Unit) Internal Order Work Breakdown Structure Profit Center Funds Center Funded Program Funds Center Sponsored Program Functional Area Functional Area Functional Area Functional Area Financial Period Related Fiscal Year Fiscal Year Fiscal Year Grant Budget Validity Period Budget Period Budget Period Budget Period Budget Period Legend: FI Entry Derived Derived or entered Underlined items are owned by corresponding module 50

51 Master Data Relationships Below are two examples of how the Master Data elements relate to each other. The example on the left describes a sponsored program for a Simple grant. The example on the right describes a sponsored program for a MIG grant. Sponsored Program: UNSOA-SAU Sponsored Program: UNAMID-LPD Sponsor: United Kingdom Simple Grant Sponsor: United States Sponsor: Sweden MIG Grant AS1-STAFF- PERSONNEL AS1-TRAVEL AM1-STAFF- PERSONNEL AM1-TRAVEL AS1-SUPPL- COM-MATER AS1-OPER- OTHER-COSTS AM1-SUPPL- COM-MATER AM1-OPER- OTHER-COSTS AS1-EQUIP-VEH- FURNIT AS1-GRANTS- OUT AM1-EQUIP- VEH-FURNIT AM1-GRANTS- OUT AS1-CONTRACT- SERVICE AS1-TRANSFER- IP AM1- CONTRACT- SERVICE AM1- TRANSFER-IP 51

52 Learning Checkpoint 1 Which of the following grant types is created to support activities where UN has a responsibility to report both UN and non-un related expenditures to the donor? Select the correct option. A. Simple grant B. RM grant C. Passthrough grant D. MIG grant 52

53 Learning Checkpoint 1 Which of the following grant types is created to support activities where UN has a responsibility to report both UN and non-un related expenditures to the donor? Select the correct option. A. Simple grant B. RM grant C. Passthrough grant D. MIG grant Option C is the correct answer. A Passthrough grant is created to support activities where the UN has a responsibility to report both UN and non-un related expenditures to the donor. 53

54 Module 2 Summary The key points covered in this module are listed below: The GM Master Data elements are grant, sponsored program, sponsored class and fund A grant is used to maintain the terms and conditions of the donor s contribution A sponsored program is used to provide the donor with a view of the grant data that they are expecting A sponsored class summarizes the organizations G/L accounts, facilitating reporting to the donor and enforcing donor restrictions Projects in Umoja are organized into hierarchical structures and tracked in the Project System (PS) module 54

55 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 55

56 Module 3 Objectives After completing this module, you will be able to: Explain the high-level process followed to create and maintain grants in the Umoja Grants Management module 56

57 Grants Management: High-Level Process A high-level view of the Grants Management process is as follows: GM Grants Creator/GM Account User/GM Account Approver GM Budget User Unreleased/GM Budget Approver Unreleased GM Account Approver Fundraising Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit GM Budget User Released/GM Budget Approver Released GM Account User/GM Account Approver/Other Users (non-gm) GM Account Approver All Users (GM) Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis Steps performed outside Umoja Steps performed in Umoja ECC *Execute Other Transactions: E.g. create PO, down payments, SES, invoice, etc 57

58 Set Up Master Data Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis The GM Account User is responsible for the creation and maintenance of various Master Data elements. Grant Master Data is updated continuously as negotiations continue between the donor and UN. Create/ Maintain Sponsored Program Create/ Maintain Grant Confirm Business Partner Link Passthrough Grants (if applicable) Create/ Maintain Internal Order/ WBSE 58

59 Create & Approve Unreleased Grant Budget Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis Close Grant After the grant is created and the Donor agreement has been signed, the next step is to create and approve an unreleased grant budget. To do this, each grant must be linked to a fund. Please note that in Framework 2, after all applicable RM and MIG grants are created, they also need to be linked to ensure that: All applicable funding is allocated to the correct program All Implementing Partners receive the correct portion of the allocated funding 59

60 Conduct Grant Billing Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis After the Donor agreement or amendment is signed, scanned and uploaded into the Umoja system, the Grant Billing process is performed through standard accounting transactions. For monetary contributions, appropriate income and A/R s are recorded based on the recognition criteria and in compliance with the IPSAS requirements For goods, the value stated in the agreement is recorded. If not stated, the Fair Market Value will be recorded as income and expenditure For services, only rights-to-use will be recorded as income and expenditure. All other services will be recorded through memorandum accounts 60

61 Create & Approve Released Grant Budget Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis Releasing a grant involves the following activities: Establishing the grant spending authority Releasing the grant budget If project activities are executed by the Implementing Partner, then the spending authority is released from the Passthrough grant via budget transfer. The released budget is displayed on the grant and represents the spending authority amount. The main purpose of releasing a grant is to ensure that spending is effected in accordance with the reporting requirements and restrictions set forth in the donor agreement. In Umoja, the process of releasing a budget provides a basis for budgetary control from a donor s perspective and also from an organizational perspective. 61

62 Execute Other Transactions Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis Users within and outside of GM are executing financial transactions that consume grants budget. These transactions include: create PO s, JV s, IDC batch, etc. 62

63 Close Grant Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis The next step in the GM for Grantee process is to close the grant. All open commitments within the grant are completed and liquidated before closing a grant. Closing a grant also ensures that no new commitment is recorded during the Donor agreement s grace period. 63

64 Report Analysis Fundraising (Outside of system) Set Up Master Data Create & Approve Unreleased Grant Budget Conduct Grant Billing/ Applied Deposit Create & Approve Released Grant Budget Execute Other Transactions (when applicable for IP s) Close Grant Report Analysis The reports used across the GM process are: Grant Line Item Detail This report shows the detailed grant information, such as sponsored class/program, fund, reference documents, posting dates etc. Available Balance by Grant This report is an overview for a funded grant at the aggregate level. It shows the unreleased, released and total budget by fund, grant, fiscal year and sponsored program/class. Within the report, the detailed breakdown of expenditure is available. 64

65 Learning Checkpoint 1 Which of the following objects must exist in Umoja before a grant is created? Select the correct option. A. Sponsor created as a business partner in Umoja B. Sponsor created as a sponsored class in Umoja C. Sponsored program in Umoja D. A & C E. B & C 65

66 Learning Checkpoint 1 Which of the following objects must exist in Umoja before a grant is created? Select the correct option. A. Sponsor created as a business partner in Umoja B. Sponsor created as a sponsored class in Umoja C. Sponsored program in Umoja D. A & C E. B & C Option D is correct. The sponsor must exist as a business partner and the appropriate sponsored program must exist in Umoja before a grant is created. 66

67 Module 3 Summary The key points covered in this module are listed below: Before the grant is created, the sponsor has to be created as a business partner and the appropriate sponsored program has to be created in Umoja After the Donor agreement or amendment is signed, scanned and uploaded into the Umoja system, the Grant Billing process is performed through standard accounting transactions Releasing a grant ensures that spending is effected in accordance with the donor requirements and restrictions Closing a grant ensures that no new commitment is recorded during the Donor agreement s grace period 67

68 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 68

69 Course Summary The key points covered in this course are listed below: GM allows UN to manage contributions both monetary and in kind from donors or sponsors, from pre-award administration to post-award management and reporting The GM Master Data elements are grant, sponsored program, sponsored class and fund Projects in Umoja are organized into hierarchical structures and tracked in the Project System (PS) module Before the grant is created, the sponsor has to be created as a business partner and the appropriate sponsored program has to be created in Umoja After the Donor agreement or amendment is signed, scanned and uploaded into the Umoja system, the Grant Billing process is performed through standard accounting transactions Releasing a grant ensures that spending is effected in accordance with the donor requirements and restrictions Closing a grant ensures that no new commitment is recorded during the Donor agreement s grace period 69

70 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 70

71 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 71

72 Agenda Course Introduction Module 1: Introduction to Grants Management Module 2: Grants Management Master Data Module 3: Grants Management for Grantee Process in Umoja Course Summary Course Assessment Course Survey 72

73 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 73

74 Congratulations! You have successfully completed the Umoja Grants Management Overview course. 74