Using PeopleSoft for Financial Management

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Session 4 Certificate of Expenditure (COE)

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Certificate of Expenditure

• Purpose
• Reports expenditure against the previous advance
• Requests for new advance
• Reports Unspent balance

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Certificate of Expenditures (COE)
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Certificate of Expenditure

• Role of Project Director in Finance-related
• Overall accountable for the Project
• Substantive and financial monitoring of
  activities/supervisory field visits
• Submission of Annual Workplan for the year
• Submission of Quarterly Workplan Monitoring Tool
  (QWMT) with COE for the previous Quarter/6 months
• Submission of the Quarterly/6 monthly Workplan
  for Advance (QWA) with COE for next advance
• Liaising with the Finance Officers for updating
  workplan/Budget
• Overall responsibility of Audit and inventory of
  Non-expendable Equipment
• Evaluation if required
• Official communication with UNFPA and senior
  management at recipient government/NGO level

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Certificate of Expenditure

• Role of Finance Officer
• Calculating of advance amount to be released
• Processing and recording of advance
• Timely submission of COE
• Accuracy of figures
• Monitoring of Unspent balance
• Inventory
• Assist in Audit

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Certificate of Expenditure

• COE Procedures
• Implementing Partner completes columns A D of
  the COE for funds requested.
• UNFPA Programme Officer reviews the submitted
  COE, completes columns E F, signs and records
  the date in the UNFPA Approval box, and forwards
  the COE to the Finance Assistant (FA) for
  processing.

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COE Looking at the Form (1)
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COE Looking at the Form (2)

• Project Details
• UN Agency
• Project Number
• Project Name
• Name of Implementing Agency
• Date of Certificate

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COE Looking at the Form (3)

• Reporting on expenditures
• by Activity
• using Expense
• Accounts
• with Account Name

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COE Looking at the Form (4)

• Reporting on expenditures
• balance of funds
• Column B is the reporting of actual expenditures
  for the previous quarter.
• Column A B C
• C Unspent balance at the end of previous quarter

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COE Looking at the Form (5)

• Definition Funds available
• The balance of funds received from UNFPA held by
  the agency.
• It is the balance of the previous fund transfer
  from UNFPA less the expenditures reported in COE
  by the Implementing agency.
• Also referred as cash on hand.
• Funds available should not be confused with the
  approved project budget

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COE Looking at the Form (6)

• Reporting on expenditures
• Column D is the estimated expenditures for the
  following period
• reasonable estimate
• by Activity

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COE Looking at the Form (7)

• CERTIFICATION
• The undersigned authorized officer of the
  organization hereby certifies that the funding
  request shown in COE represents the actual
  expenditures and reasonable estimated
  expenditures for the periods stated herein.
• These funds will be disbursed in accordance with
  the project document or work plan and that an
  appropriate refund will be made to UNFPA in the
  event that any items are disallowed by UNFPA.

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COE Looking at the Form (8)

• Approval
• UNFPA Project Manager reviews, approves or
  revises projection

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COE Looking at the Form (9)

• Approval
• Based on remaining balance in column C, and
  approved projection in column E, UNFPA Project
  Manager determines requirement for available
  funds in column F
• Column F represents what the ending balance will
  be by Activity and is not a Direct formula.

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COE Looking at the Form (10)

• Approval
• UNFPA Project Manager evidences review and
  approval
• signal to UNFPA Finance Branch to record
  expenditures and release of funds

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COE Looking at the Form (11)

• Approval
• summarized by
• Activity
• total will be exact amount disbursed
• total will be sum of funds reimbursed and advanced

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COE Expense Account Codes
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COE Looking at the Budget (1)
Project number PMI3R201 (Annex A) Project
Title Strengthening availability of RH
Information Services in the Pacific
Implementing Agency Government of
---------------------------------------------- Sig
nature / Date
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Financial reportingCertificate of Expenditure
(COE)

• Following Reporting period
• Quarterly Advance Quarterly Expenditure
  Deadline
• Qrt 2 May-Jul Qrt 1 Jan Mar 30 April
• Qrt 3 Aug-Oct Qrt 2 Apri Jun 31
  July
• Qrt 4 Nov - Jan Qrt 3 Jul Sept
  30 Oct
• Qrt 1 Feb-Apr Qrt 4 Oct Dec
  15 Dec for expend
• 31 Jan for Advance
• Six Monthly Reporting
• Advance Six monthly expenditures Deadline
• 1 July 30Dec 1 Jan 30 June 31 Jul
• 1 Jan 30June 1 July 31 December 15 Dec
  for Expend
• 31Jan for advance

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COE- Quarterly Advance

• What needs to be submitted
• Quarterly/Six Monthly Workplan for Advance (QWA)
  breakdown by Activity ID in local currency.
• Eg.

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Reporting Issues COE timetable (2)

• Excerpt from UNFPA Closure Instructions
• The last quarter or six month COE (July to Dec)
  to be submitted by 15 December. This may mean
  preparing COE for estimated expenditure for the
  period. Any adjustments to be incorporated in the
  first quarter/first six months of the following
  year.

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COE Examples
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1st Quarter expenditure (Jan-Mar) 2nd Quarter
advance (May-Jul)
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2nd Quarter expenditure (Apr-Jun) 3rd Quarter
advance (Aug-Oct)
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3rd Quarter expenditure (Jul-Sept) 4th Quarter
advance (Nov-Jan)
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4th Quarter expenditure (Oct-Dec) 1st Quarter
advance (Feb-Apr)
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1st 6 month Advance (Jan-Jun)
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1st 6 Month Expenditure (Jan-Jun) 2nd 6 month
Advance (July-Dec)
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2nd 6 Month Expenditure (Jul-Dec) 1st 6 month
Advance (Jan-Jun)
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UNFPA Experiences in COE from the countries

• Workplan for the year not received
• Workplan Monitoring Tool (WMT) not attached
• Quarterly Workplan for Advance (QWA) very brief
  no details per activity
• Not Following Approved Budget. Any change in the
  activity or anticipated increase in expenditure
  require advance approval (unless difference is
  minimal)
• COE does not match with QWA/6 monthly advance)
• Column D shows breakdown by expenditure codes.
  It should reflect only the summary. Details of
  estimated expenditure should be part of Quarterly
  Workplan for Advance (QWA)
• Incorrect Chart of Accounts

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How can UNFPA assist?

• Capacity Building for Project Directors and
  Finance Officers in preparing COE October 2004
  and May 2006 workshops)
• Template for COE with dates (Quarterly for
  Regional Projects and six monthly for Govt
  projects) distributed in this session
• New Proposal Avoid filling the Chart of Accounts
  in COE. UNFPA will do for you as long as you
  complete the following columns on the extreme
  left of the COE Activity and Account Name.
  Leave Account Number Column blank
• Send COE with estimated expenditure in the second
  COE (for govt) and 4th Quarter (for Regional) to
  meet deadline. You can adjust in the next COE in
  the following year

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2004 Oct Programme Management Workshop