MA Cheat Sheets:
Asset Management
Empowered lives.
Resilient nations.
UNDP issued the UNDP Guidelines for Engagement with NGOs under Country Based Pooled Funds in late 2016 and rolled these out in 2017.
This was part of an effort to harmonize implementation approaches with those of the OCHA Operational Handbook.
To complement the Guidelines, UNDP has developed MA Cheat Sheets to provide additional practical information on selected subject
matters. There are 9 available Cheat Sheets on the following topics: MA Structure and Performance Review * Capacity Development * Results
Logic and ATLAS Architecture * MA and ATLAS * HACT * Quality Assurance * NEX Advance * Asset Management * Fraud. These can be found
here
Asset Management
Most projects that are managed by the MA procured assets. These assets need
to be closely managed in line with UNDP rules and regulations where these apply
to the MA function. The NGOs will utilize their own procurement rules and
regulations guided by the International Procurement Principles compliance to
ensure the following:
Best value of money
Fairness, integrity and transparency
Defined thresholds stated (in either the NGO or UNDP guidelines)
Waivers for competitive bidding for amounts above $30,000 must be duly
justified (with the requisite justification and supporting documents).
Assets are subject to au dit verification at any monitoring of the CBPF
project.
The NGO shall assume management and assurance activities of the assets.
Recognition Criteria
To qualify as a UNDP asset all 5 of the following criteria (link) must be met:
Provides future economic or service benefits to UNDP
Is expected to be used during more than one reporting period, which is 12
months from the purchase date (not project start date)
Has a value of US$1,500 or more.
Internally Developed Software - $50,000.
Externally Purchased Software - $5,000.
LHI - $50,000 per project
Is used and controlled by UNDP
Has a cost that can be reliably determined.
NGO’s to be considered separately as historically the ownership of assets
purchased for them have been retained as UNDP assets as long as the project
duration exceeds a period of 12 month. and assets match the above criteria.
(see annex 1)
Project Closures
Projects cannot be closed if assets are not disposed or transferred.
Well in advance of the project closure, project management s hould
identify asset disposal methods taking into consideration respective
provisions of the project document, UNDP Policy as well as local
circumstances.
Asset Transfers
Where the Project Document is silent on the actions to be taken on
assets at the end of the project, Proj ect management shall agree with
the respective Donor/s, Advisory Board or counterparts on the as sets
disposal methods during or at the end of the project. In accordance
with the established UNDP practice and business model, the preferred
option would be for the management to recommend transferring
assets to the Government or Implementing partners.
Transfers With/Without Resources:
Transfers involving Development Projects should always be
transferred with resources.
Why? - Because transferring without resources results in differences
between GL and KK reports on the fund availability in both projects
that causes significant issues when reporting to the Donors.
Reason - The full cost of an asset is charged to a budget at the point of
purchase so the available resources in KK reflect the whole cost
incurred. If it is transferred without resources KK will still indicate no
resources are available in the donating project but the Donor report
will indicate resources are available. (Example below)
Alternative - The preferred method is to have project assets handed
over to the Government or Implementing Partners when possible and
beneficial for achieving the goals of the project.
If the Government would wish to donate the received project assets
to be used by other UNDP managed projects, UNDP and the donor of
the new project agree to this arrangement, a Donation from 3rd
parties’ procedure shall be applied.
(
