The Financial Services and Compliance Monitoring Pillar carries out all core non-location dependent accounting functions for the RSCE client missions. The Pillar is headed by a Service Delivery Manager and is divided into four Services Lines: Internal Controls, Accounts Unit, Vendors and Cashier each headed by a Service Line Manager.
The Internal Controls/ Bank Reconciliations Team performs the following functions:
- Bank Reconciliations
- Monthly Monitoring of open items and other compliance issues.
- Quarterly Internal Control Reviews
FRSL is required to perform review of all transactional Service Lines and provide the details in a report format to the respective service lines to take corrective actions as needed. In this regard the internal controls/bank reconciliations unit produces 4 reports namely; payroll open items monitoring report, vendors related open items monitoring report, open funds commitments monitoring report, education grant compliance report.
Quarterly internal control reviews: With the objective of enhancing and strengthening internal controls, Financial Reporting embarked on a project to review controls across all RSCE transaction processes. This started with documenting the processes of transaction processing service line in mid-2015. The process documentation was done by the process owners (Service Line Managers) and reviewed by FRSL. FRSL also performed the risk analysis for each of the processes. Financial Reporting is now conducting on-going reviews of internal controls across all service lines with a planned coverage of at least once every quarter for all Service Lines covered.
The Reporting Team performs the following functions:
- Preparation of monthly financial reports for submission to UNHQ and the client missions.
- Annual year end closure including processing of year end transactions and preparation of financial reports for submission to UNHQ.
- Monitoring of the Open Items Managed (OIM) accounts.
- Processing of cost recoveries from client missions.
- Reviewing and recording of assets under construction from client missions.
- Processing of third party claims on behalf of the client missions.
- Processing of VAT claims to URA, and monitoring of the VAT receivable accounts at the client missions.
- Processing of transactions in the UNDP Service Clearing Account.
- Post liquidation administrative support on finance and accounting to liquidated missions.
- Coordinating the annual financial statements external audit process.
- Training and provision of guidance to client missions and service lines on finance and accounting related technical issues and acting subject matter experts to Management on accounting and reporting issues.
Processes on a Monthly Bases:
On a monthly basis the reporting unit prepares monthly financial reports for 16 client missions (including RSCE and 3 liquidated missions), process over 300 cost recovery documents on a monthly basis and reconcile over 900 transactions relating to UNDP service clearing accounts for all client missions. Our client missions include: MONUSCO, MINUSCA, MINUSMA, UNAMID, UNMISS, UNISFA, UNSOS, RSCE, UNOCA, UNSOM, SESG-GL, OSASG-BDI, SEMG, UNMEER (liquidated), MENUB (liquidated) and BNUB (liquidated).
In August 2016, Chief RSCE issued SOP and assigned the responsibility to FRSL to conduct quarterly internal control reviews of RSCE service lines and issue the report to the Chief RSCE. In quarter 4 2016, FRSL started conducting quarterly reviews of 18 processes across RSCE service lines. FRSL is presently conducting Internal Control Reviews covering the period October-December 2016.
Other projects include development of SOPs for newly introduced processed e.g. cost recovery, accrual monitoring, and UNDP SCA, peace keeping year end closure for the year ended 30 June 2017 and provision of liquidation support for UNOCI.
In June 2014, RSCE had 14 house banks. This number has increased progressively and has more than doubled to 29 house banks since July 2016. The number of house banks are expected to increase further from July 2017 with the addition of new RSCE client missions. Since 2016, the average value of transactions processed through FRSL, RSCE house banks exceeded USD 700 million per month.