umoja presentation to oah grants management functionality 17 december 2012

Umoja Presentation to OAH

Grants Management Functionality

17 December 2012

2Umoja Presentation to OAH - Grants Management Functionality

Content

1. Introduction to Umoja - What is Umoja? - Deployment Approach - Governance - What is in Foundation

2. Grants Management Umoja Solution - Grantee Management Module - GM Master Data - Grant Budgeting - GM Grant Budget Validity Periods - Time Slices - Grant Availability Check Ledger - Indirect Cost Calculation - Grants Management reporting

3. Next steps

4. Recap, Q&A


What is Umoja?

is an administrative reform initiative

designed to help the United Nations operate more

effectively by integrating and streamlining business

processes that manage financial, human and physical

resources within a single global solution for the entire

Secretariat.


Umoja Overview

Project – Umoja

Umoja is an administrative reform initiative that will provide the United Nations with modernized business processes and an Enterprise Resource Planning (ERP) system.

System – SAP

SAP Enterprise Resource Planning (ERP) 6.0 is the system that is being implemented by Umoja. It will replace some UN systems and will be connected with others in order to share information. SAP will provide a financially integrated and robust centralized system.

SAP stands for Systems, Applications and Products in Data Processing.


Deployment Approach

To accelerate progress, Umoja functionality will deployed as follows: Umoja Foundation – Deployment: 2013

Essential to support IPSAS requirements Functionality to be delivered: finance (funds management and financial

accounting), supply chain (real estate, plant maintenance, logistics execution, and procurement), project management, and sales & distribution (third-party procurement services and billing)

Umoja Extension 1 – Deployment: 2014 Functionality to be delivered: organizational and position management,

personnel administration, entitlements, benefits, time management, payroll, travel initiation, travel expenses, and on-line booking

Umoja Extension 2 – Deployment: 2016 (TBC) The rest of the processes to complete full scope: budget formulation, force

planning, programme management, supply chain planning, warehouse management, conference and event management, full grants management, and commercial activities

This approach enables the Organization to mitigate delay, absorb change at a tolerable rate, and address some of the risks associated with deploying a comprehensive solution in a global organization.


Umoja Implementation Schedule


Umoja Deployment Schedule & Clusters


Umoja Governance Structure


Key elements of the governance structure

The United Nations Management Committee is responsible for considering internal reform and management-related issues requiring strategic direction from the Secretary-General. It receives quarterly updates from Umoja, with a particular focus on monitoring the interdependencies of the Umoja and IPSAS implementation strategies.

The Umoja Steering Committee provides leadership and strategic guidance to the Umoja initiative, and is chaired by the USG of the Department of Management Yukio Takasu. The Committee meets monthly.

The Change Advisory Board assists in addressing and monitoring any proposed changes impacting the Umoja project’s scope, schedule, deliverables and costs. It provides advice and recommendation of actions to be taken to the Umoja Steering Committee for approval.

The five Process Owners are the principal change agents for their end-to-end, cross-functional processes, regardless of which functional area performs each transaction. They are the ultimate authority across the different UN Secretariat entities for the processes they lead.

The Umoja team is responsible for the day-to-day planning and execution of the project.


Umoja Sponsors

Secretary-General, Ban Ki-moon Project Owner

Yukio Takasu, Under-Secretary-General (USG), Department of Management

Steering Committee Yukio Takasu (Chair), USG, Dept of Management Susanna Malcorra, Chef de Cabinet Ameerah Haq, USG, Dept of Field Support Kim Won Soo, ASG, Change Implementation Team Catherine Pollard, ASG, Office of Human Resources Management Gina Casar, ASG, Office of Programme Planning Budgets and Accounts Warren Sach, ASG, Office of Central Support Services Franz Baumann, ASG, Dept of General Assembly and Conference Mgmt Dennis Thatchachaiwalit, Director of Management, UN Office at Vienna Craig Boyd, Logistics Support Division, Department of Field Support ASG, Chief Information Technology Officer (TBD)


Umoja Process Owners

Gina Casar, ASG, Office of Programme Planning Budgets and Accounts

Warren Sach, ASG, Office of Central Support Services

Craig Boyd, Director, Department of Field Support (DFS)

Catherine Pollard, ASG, Office of Human Resources Management

Franz Baumann, ASG, Dept of General Assembly and Conference Management


Umoja SAP Solution Overview – Umoja FoundationS

AP

Des

crip

tio

ns

Facilitates management and external reporting of legally required financial information and documents

Immediately after data is entered, the system displays information on updated accounts, account totals, and balances

Controlling

Financials (FI)

Sales & Distribution

(SD)

Controlling (CO)

Project Systems (PS)

Allows Umoja to measure its flow of costs and revenue and is used for internal management and control of costs

Tracks spending against budgeted programs and project structure

Helps record customer sales and ship products to customers – also known as order fulfillment

Helps optimize all the tasks and activities in sales, delivery and billing – includes pricing and addresses for customers

Supports the procurement and inventory functions of day-to-day business operations (e.g., purchasing, inventory management)

Master data is maintained

Manages supplier contracts for procurement

Funds Management

(FM)

Grants Management

(GM)

Materials Management

(MM)

Supplier Relationship Management

(SRM)

Real Estate (RE-FX)

Plant Maintenance

(PM)

Creates more transparency across UN property portfolio and in investment decisions

Saves money on expense leases and increases revenue from income leases

Manages inspection, preventative maintenance, and repair of equipment

Mo

du

les

SA

P E

RP

Central Support Services

Supply ChainFinance & Programme Management

Provides ability to budget, monitor, and control Commitment, Obligations, and Expenditures; reduce available budget as Purchase Requisitions and/or Purchase Orders are created; and prevent budget overruns by causing hard stops when funds are depleted


Process Overview & SAP – Umoja Foundation

Employ to Dispose Set Assembly and Execution Equipment Assignment and Management Equipment Maintenance and Operations Decommission and Disposal

Cost & Management Accounting Accounting for Specific Events and

Activities - Internal Orders Overhead Accounting - Cost Centre

Accounting

Financial Accounting Accounts Payable Accounts Receivable Asset Accounting General Ledger Taxes and Insurance

Financial Management Budget Implementation Grants Management

Project Management Project Initiation Project Planning Project Execution and

Performance Monitoring

Inbound Processing Outbound Processing Warehouse and Storage

Receive to Distribute

Bank Management Cash and Liquidity Management Investment Accounting Treasury and Risk Management –

Investments

Cash Management & Treasury

Real Estate Administration Real Estate Planning

Facilities Management

Services to the Public & Staff Sales (third-party procurement

services and billing customers)

Source to Acquire Requisition to Purchase Order Low Value Acquisition Contract Management

FMGM FI & CO

FI-TR

FI-AP

SRM

MM

PM

RE-FX

SD

PS

FI-AR

FI-GL

Human Resources will be deployed in Umoja Extension

Grants Management Umoja Solution


17

Overview – Grants Management Umoja Solution

2. Grants Management Umoja Solution Summary of Umoja Scope: Grants Management Umoja Grantee Management Module Grants Management Master Data

Fund Sponsor Grant

Grant Grant Type in Umoja Solution Grant Frameworks Grant Life Cycle

Sponsored Program Sponsored Class

- Grant Budgeting - Grant Budget Validity Period – Time Slices - Grant AVC Rules - Reporting

Umoja Presentation to OAH - Grants Management Functionality17

Summary of Umoja Scope: Grants Management

Umoja Foundation

Grantee Management solution

Functionality: Grant Status Management –

Tracking throughout the life of the Grant from application to the closing

Grant Budget (Unreleased and Released)

Financial postings resulting from integration with other modules

Financial reports to Donors Tracking and reporting of the

Expenditure Reports submitted by Implementing Partners

Possibility to attached scanned agreement to the Grant

Umoja Extension SAP Fund Raising ModuleFunctionality: Resource Mobilization Donor proposal/agreement

management Donor Profile

SAP Grantor Management Module

Functionality: Application process and

agreements with Grantees Reporting from Grantees Grantee Profile

Umoja Presentation to OAH - Grants Management Functionality 18

Umoja Grantee Management Solution Functionality

Provide separate views for the financial transactions of the UN and the Sponsor (Donor)

Relate sponsor requirements to the financial structures of the UN Budget internal and external funding sources Accommodate funds availability checking for budget items Control postings Accommodate funding period differences between the UN and

sponsors Provide integrated billing solutions Calculate indirect costs ( overhead costs ) Assign responsibilities (limited in Foundation) Provide authorizations

Umoja Presentation to OCHA - Grants Management Functionality 19

New Concepts: Umoja Grants Management Master Data Objects


New Concepts - Grants Management Objects

Fund

Sponsor

Grant

Sponsored Program

Sponsored Class


Fund

Fund - is: a separate and distinct accounting object

containing a self-balancing set of accounts

used to identify source and use of funding from voluntary contributions.

It is established for the purpose of financing wholly or in part the cost of programme and project activities consistent with the Organization’s aims and policies.


Sponsor

A Sponsor: a Donor in UN terminology,

is a government, institution or individual that provides funding to a grantee organization, in this case, the UN.


Grant – Details and Examples


Grant

Grant A Grant is an object that is used to maintain the terms and conditions of the Grantor’s contribution.

In cases where the UN is a Grantee, that is the UN receives contributions from Donors, the Grant represents the Donor’s Agreement.

In cases where the UN is a Grantor, that is the UN gives money to an Implementing Partner, the Grant represents the Funding Agreement.

Grant is a “central” piece of the Grants Management which ties together all the Grants Management Master Data Objects, e.g. Fund, Sponsor, Sponsored Program, Sponsored Classes, Grant Budget Rules. Different level of information is recorded on the Grant at a different stage of the Life Cycle of the Grant


Grant: General Tab


Grant: Dimensions Tab


Grants: Terms and Conditions for Donor Agreement


Grant Types

The Grant Type is a key master data element that allows management of Grants to meet both the Donor’s requirements and the financial recording and reporting requirements of the UN. Grant Type is a customizable feature, therefore the UN can create as many Grant Types as needed to classify and describe UN Grants according to business requirements.

Grant type is used to define Grant’s controls and behavior. Once the Grant is saved the Grant Type can not be changed.

In Umoja Solutions there are four types of Grant:Simple Grant Resource Mobilization GrantMain Implementation Grant, andPassthrough Grant


Grant Object in Umoja – Grants Frameworks

Why four Grant Types? – Dictated by different Donor requirements to reporting Why four Grant Types? – Dictated by different Donor requirements to reporting

Grants Framework I Donor requires to report on Contribution

Grants Framework II Donor requires reporting on Pooled Expenditures


Grant Object in Umoja: Framework I: Donor requires reporting on the Contribution

Donor Contribution Agreement

Simple Grant A

Passthrough GrantPassthrough Grant


Passthrough Grant -1

Relationship Simple : Passthrough 1 : N

• Incoming Cash Posted• Expenditures and Payments

Posted• Refunds of Cash Posted

• Expenditures and Payments Posted

• Refunds by Implementing Partners


Grant Object in Umoja:Framework II–Donor requires the reporting on “pooled” expenditures



Donor 1 Contribution Agreement 1

Main Implementation Grant - 1

RMG2 (D3)RMG2 (D2)

RMG1 (D1)



Passthrough Grant -1

Relationship MIG : Passthrough 1 : NRelationship

RMG : MIG N : 1


• Incoming Cash Posted• Refunds Posted


• Refunds by Implementing Partners

Umoja Presentation to OAH - Grants Management Functionality32

Framework I - Determination criteria:

Donor requires reporting on the contribution.

Donor is providing voluntary contribution for a specific project, an activity on the project, group of projects, non-project related activity, material, service, program/subprogram objective, etc. The purpose of the contributions is reflected in Donor Agreement.

Maximum Donor control and restrictions and Minimum discretionary authority for the UN.

Programme Support Cost is unique to the donor agreement.

The Approving Budget officer based on the reports ensures that the grant budget is released based on cash availability.

Return of Interest and unspent balance could be required by the donor in the Donor Agreement.


Framework II - Determination criteria:

Donor requires reporting on pooled expenditures. Donor does not require reporting on his individual contribution separately.

Donor is providing voluntary contribution for a specific project, group of projects (thematic grouping of projects), on-going activity, programme/sub-program objective, etc. reflected either in Donor Agreement or Note Verbal or Pledge Letter.

Minimum control from Donors – Maximum discretionary authority for UN. Program Support Costs rate should be consistent for all participating

donors. Resource Mobilization Grants do not have budget. Main Implementation

Grant has a budget. The Approving Budget officer based on the reports ensures that the budget is released based on cash availability.

Interests earned and / or unspent balances can be carried forward to a new organization and budget period (in case of the on-going activity).

Interests and unspent balance will have the consistent treatment for all participating donors.


Grant Execution – UN Execution

Business Scenario Description Umoja Solution

UN Execution Direct Expenses to the project

Any expense from procurement, travel, payroll etc. charged to Simple or Main Implementation Grant


Grant Execution – UN Execution: Grants-Out (Outright Grants)

Business Scenario Description Umoja Solution

Grants-out (outright grants) to end beneficiary.

Outright grant with payment to the end beneficiary and reporting by nature of expenditure is not required; the full amount shall be recorded as an expense at the point of signature/confirmation of the arrangement.

End Beneficiary is an entity/person that does not charged any administrative costs (overheads).

PO and payment against the PO at the time of signing the funding agreement to the end beneficiary, charged to Simple or Main Implementation Grant


Grant Execution – UN Execution with Implementing Partner

Business Scenario

Description Umoja Solution

UN execution with Implementing Partners (e.g. UN agencies and NGOs)

UN transfers the portion of the contribution to the Implementing Partner(s) through issuing the advances. The timing of expense recognition should be based on delivery as evidenced in the reports from the implementing partners.

PO and down payment (advance) to IPs from Passthrough Grant. Upon receipt of expenditure reports, expenditures will be recorded against the PO and offset the advance.

Note: Both UNFIP and CERF will follow this approach under IPSAS.


Grant Life Cycle for Simple and Resource Grant

Initial Application Award Closing Closed

Initial

Cancelled

ApplicationIn-Process

Approved by Donor

Rejected by Donor

Approved by UN

Rejected by UN

Award Operational

Award Suspended

ClosingOperational

Closing

ClosingFinancialClosing

End

2 31 4 5

Ready for Closing

Ready to Close

Closed

Approved by UN

Approved by Donor


Grant Life Cycle for Main Implementation Grant

Initial Award Closing Closed

Initial

Cancelled

Award Operational

Award Suspended

ClosingOperational

Closing


21 3 4

Ready for Closing

Ready to Close

Closed


Grant Life Cycle - Passthrough Grant Status Management

Initial Application Award Closing Closed

Initial

Cancelled

ApplicationIn-Process

Approved by IP

Rejected by Donor

Approved by UN

Rejected by UN

Award Operational

Award Suspended

ClosingOperational

Closing


End

2 31 4 5

Ready for Closing

Ready to Close

Closed

Approved by UN

Approved by IP


Grant Life Cycle - Change status to Application/ Approved By Donor


Sponsored Program – Details and Examples


Grants Management Master Data – Sponsored Program

A Sponsored Program identifies a program of the Sponsor. It identifies the purpose of the Sponsor’s contribution.

Sponsored Program is a GM Master Data Object that is derived and cannot be manually entered.

Sponsored Program can be created for a specific project, an activity on the project, a group of projects, non-project related activity, material, service, program/subprogram objective, associated experts and so on, according to the specific Donor requirements.

Interpretation of the Donor Agreement will determine the Sponsored Program(s).


Sponsored Program in Umoja – Basic Data Tab


Sponsored Program in Umoja – Budget Transfer Tab


Sponsored Class – Details and Examples


Grants Management Master Data – Sponsored Class

Sponsored Class: a Master Data Object which is used to provide budgetary

control and

to support reporting to Donors based on their specific requirements

records sponsor by revenue and expense classifications.


Sponsored Classes Umoja Solution – Example

Sponsored Class DescriptionIncomeAS1-VC-CASH Contribution in Cash AS1-VC-GOODS VC Goods in KindAS1-VC-SERVICES VC in ServicesAS1-INTEREST-INCOME Interest IncomeAS1-MISC-INCOME Misc income

ExpendituresAS1-STAFF-PERSONNEL Staff and other personnel costAS1-SUPPL-COM-MATERSupply, Commodity, MaterialAS1-EQUIP-VEH-FURNIT Equip, Vehicles and FurnitureAS1-CONTRACT-SERVICE Contractual ServicesAS1-TRAVEL TravelAS1-OPER-OTHER-COSTS Operating & Other Direct CostAS1-GRANTS-OUT Grant Out Expenditure w/o PTAS1-TRANSFER-IP Transfers to IPs w/ PTPSC-EXP-UN PSC UN

Sponsored Class DescriptionIncomeAS1-VC-CASH Contribution in Cash AS1-VC-GOODS VC Goods in KindAS1-VC-SERVICES VC in ServicesAS1-INTEREST-INCOME Interest IncomeAS1-MISC-INCOME Misc income

ExpendituresAS1-STAFF-PERSONNEL Staff and other personnel costAS1-SUPPL-COM-MATERSupply, Commodity, MaterialAS1-EQUIP-VEH-FURNIT Equip, Vehicles and FurnitureAS1-CONTRACT-SERVICE Contractual ServicesAS1-TRAVEL TravelAS1-OPER-OTHER-COSTS Operating & Other Direct CostAS1-GRANTS-OUT Grant Out Expenditure w/o PTAS1-TRANSFER-IP Transfers to IPs w/ PTPSC-EXP-UN PSC UN


Sponsored Class Umoja solution – Basic Data Tab


Grant Budgeting


Grant Budgeting

Unreleased Grant Budget – amount of the agreement signed by the Donor but not yet available for consumption

Released Grant Budget – based on cash received the budget is released for consumption (equivalent to “spending authority” document in IMIS)

Grant Budget by combination of Fund Grant, Sponsored Program, Sponsored Class, Time Slice (unreleased Grant Budget)

Grant Budget by combination of Fund Grant, Sponsored Program, Sponsored Class, Time Slice + Funds Management Dimensions such as Funded Program, Fund Centre, Functional Area, Commitment Item, Budget Period (released Grant Budget)


Grant Budgeting - Unreleased Budget document with PSC calculation posted successfully


Grant Budgeting - Released Budget Document is posted successfully


Time Slice - Definition


Grants Management Master Data – Time Slice

Time Slices for Grant Budget Validity Periods: are time slices to split the budget according to the sponsor’s rules

exist for each release status: unreleased and released budget

Purpose: consumption control and correct reporting to donor, e.g. Donor gives

200K for the first six months of the year and 300K for the second six months of the year and expect the reporting accordingly.

identify consumable (i.e. released) budget amounts

Splitting Rule = Life of the Grant


Grant: Budget Tab – Budget Validity Periods


Grant Availability Check (AVC)

Fund Sponsored Program

Sponsored Class

Time Slice

Rule 1 YES YES YES YES

Rule 2 YES NO YES YES

Rule 3 YES YES NO YES

Rule 4 YES YES YES NO


Examples of the rules for availability check to choose per Grant. Grant amount is always AVC

Indirect cost (IDC) i.e. Program Support Cost posting

The Rules for IDC calculation are defined on the Grant record.

UN has one rule = 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.

The Sponsored Classes are marked as IDC-relevant on the Grant


Reporting in the Grants Management Umoja Solution


Grants Management Umoja Solution: Reporting Approach

Umoja report strategy is being designed

It is envisaged that the Umoja Grants Foundation solution will include:

several standard reports provide by SAP “out-of-the-box” with the functionality to drill down to source documents

approximately 10 additional managerial and financial reports to be developed using the SAP Business Intelligence (BI) tools

It will be possible for experienced end-users / reporting analysts to design and develop additional reports tailored to specific needs of a particular “entity”


Reporting in Grants Management: Budget Compared to Commitment/Actuals: Selection - establishing criteria for report


Reporting in Grants Management: Budget Compared to Commitment/Actuals: Selection – results of the report


Reporting in Grants Management: Budget Compared to Commitment/Act.: Selection – results of the report continue


How to Learn More about Umoja



Join Umoja Online

Umoja NET is a password-protected online portal for Umoja stakeholders found at www.unumoja.net All UN Staff members are welcome to join Most staff members have accounts, click here to activate yours

Select “Forgot my password” Enter your UN email address You’ll receive a temporary password and can log in right away!

Umoja NET gives you access to: Dashboard: information on the status and progress of the project,

up-to-date information on the solution, and access to process materials

My Umoja: personalized view of Umoja information, including: Previous participation in Umoja Events Customized content


Learn More About Umoja

For general information about Umoja visit the Umoja Website at: http://umoja.un.org.

For general questions about upcoming events, your participation, or help with Umoja NET and your user account, please contact Umoja directly at [email protected]

umoja presentation to oah grants management functionality 17 december 2012

Documents

umoja functionality

umoja presentation

time management

project management

umoja foundation deployment

programme management

warehouse management

event management