- What is Disbursement
- When is the Disbursement triggered
- Steps in Disbursement
- The liquidation section
- How to generate memo
- How to upload documents in the disbursement tab
- Disbursement from MPTF to UN Agencies
I) What is Disbursement Top
Disbursement is the transfer of the full/partial amount from the UN bank account to the implementing partner’s bank account, for a specific approved project. The number of disbursement tranches and the amount will be clearly stipulated in the grant agreement between OCHA and the implementing partner based on the risk level of the partner and the project duration.
II) When is the Disbursement triggered Top
The first tranche of funding is disbursed to the partner within 10 working days following the signature of the Grant Agreement by OCHA’s Executive Officer.
Disbursement tranches are set before the generation of the Grant Agreement, at Timelines development stage. To learn how to set the Disbursement tranches, please refer to this article of the Help Portal.
The implementing partner will receive a first installment at the beginning of the project and will be entitled to request the next disbursement(s), by submitting a financial statement, as soon as the implementing partner has spent 70% of the funds previously received.
III) Steps in Disbursement Top
As shown in this workflow, disbursement follows specific steps. For the first disbursement, the Finance HQ team must create an obligation (step 1).
During this create obligation process, they must configure the disbursement details, by adding a payment plan (step2), creating a voucher from the payment plan installment (step 3). After configuring the tranche disbursement, Finance HQ can submit the disbursement to the accounts (step 4), as shown in the workflow above.
Finally, Finance HQ can finalize the process by indicating the tranche has been disbursed (step 5).
If another disbursement is required, the process will repeat, where Finance HQ will begin the next disbursement process (step 6), configure this next disbursement, submit it to the accounts and disburse the tranche.
CBPF Finance can view the ‘Create Obligation’ request in the Task List after logging into GMS.
On selecting the project, GMS will prompt whether the user will be taking the assignment of this task.
The task will be assigned to the user until the user releases the task manually by clicking on the [Release Assignment] button.
The ‘Create Obligation’ page is the Disbursement tab of the project. In this page, you will need to fill in the 3 required fields in order to proceed with the disbursement. The CBPF Finance user will not be able to create payment requests until these 3 fields are updated.
• Ag #(Text box): Unique number of the Ag
• Ag posting date: Date when the PO was sent to accounts
• Ag Amount (Text box): Budget amount will be displayed by default.
Clicking on the [Save] button will save the data and activate the [Add Payment Schedule] and [Add liquidation] buttons.
To update the payment schedule for the disbursement, click on the [Add Payment Schedule] button.
• Payment Amount (mandatory - text box): Enter the amount of disbursement.
• No Memo to account: Memo Number
• Payment request received date: When IP requested the payment
• Financial Report (drop down box): Select the financial report from the list provided.
After updating the payment Schedule details, click on [Save].
*Please Note: For the first tranche to be disbursed (see screenshot above) there is no requirement of linking the disbursement to a financial report, but for subsequent tranche disbursements, the Implementing Partner has to provide a financial report and Finance HQ must link the disbursement tranche to the according Financial Report (see screenshot below).
To edit an existing payment schedule, click on the [Edit] link.
To delete an existing payment schedule, click on the [Delete] link.
For every payment schedule created there will be a voucher associated with the same. To create a voucher, click on the [Add Voucher/RCPT] link associated to the payment amount for which a voucher has to be raised.
- CI Doc # No (text box): Unique number generated by UMOJA
- Actual amount paid (text box): Actual disbursement amount disbursed
- Allocation Year (text box): Year of the project allocation
- Voucher/RCPT Creation Date (text box): Date of the creation of the Voucher/Receipt
- Disbursement Date: Select the date when the actual amount will be disbursed.
- Project Disbursement date : Non editable field.
- #of days since approval : Non editable field.
- Authorized Bank Account : Non editable field. The bank account information displayed in this field are the information that have been authorized in the Project Authorization page. It is hence the bank account that was linked to the project and the Grant Agreement. For a change of bank account information, it is necessary to request a project revision. To learn more about bank account information change, please refer to this article on Project Revision, and this article on Due Diligence.
- Timeline Tranche (drop down box): Indicate the tranche timeline. i.e. Tranche 1, Tranche 2 etc. Based on the selected tranche, the system will be able to populate the instalment number correctly in the financial report.
- Comments (text box): Enter comments for the payment request.
After updating the Voucher details, click on [Save]
*Please Note: If the actual amount paid is different from the 1st tranche amount, then comments need to be updated as to reason for doing so :
To edit an existing voucher, click on the [Edit] link.
To do so, click on [Submit to Accounts] button. The user will be prompted to type in 'Comments for project in "Create Obligation". Click the [Yes] button to move to the next stage of the Disbursement workflow.
After reviewing the details, click on the [Disburse Tranche] button. On clicking the [Disburse Tranche] button, the user will be prompted to type in 'Comments for project in "Submission to Accounts".
Click the [Yes] button to begin disbursement.
Upon approval of an Interim Financial Report from the Partner requesting a disbursement, the system will automatically set the disbursement tab as ‘Begin subsequent Disbursement’. There is hence no [trigger next disbursement] button displayed. Finance HQ can disburse the next tranche directly by repeating the above steps 2 to 6.
CBPF Finance can manually trigger another disbursement by going to the Disbursement tab of the project and click on [trigger next disbursement].
IV) The Liquidation SectionTop
The liquidation section provides details regarding how much money has been liquidated by the partner.
The liquidation amount is automatically filled out by the GMS with the data that the Partner submitted in the Financial Report. As it is an automatic process, there is no action required from the user in the ‘liquidation’ section on GMS.
V) How to generate a memoTop
To generate a memo, click on the [Memo] link present at the right-hand side of the voucher details’ line.
- To (text box): Enter the person’s name to whom the memo will be addressed
- Through (text box): Enter here the platform name on which the disbursement has been made.
- From (Text box): Enter the name form whom the memo is coming from.
- Select whether memo to send in word or pdf format.
Click on the [Generate Memo] button, the memo will be directly downloaded onto your desktop.
At the bottom of the disbursement tab, you can find two tracking sections, which help you identify the time date and users who managed disbursements for the project.
If you wish to view and download data on disbursement for one or multiple projects, you can use the Disbursement Overview tool, which is different from the overview described above. To know more on the Disbursement Overview and extract, please refer to this article of the Help Portal.
VI) How to upload disbursement-related documentsTop
To upload documents related to the disbursement, go to the disbursement tab of the project and scroll down to the bottom of the tab to the ‘Documents’ section.
To upload a document, click on [add Document], in the pop-up window, select the document’s category from the drop-down list, click on [choose file], select the file from your desktop and click on [Upload].
The Disbursement from MPTF Funds to UN Agencies is a different process than the one described in this article. The Disbursement data is automatically generated in the Disbursement tab upon processing of the Fund Transfer Request (FTR).
To learn more on what it is and how to process FTRs, please refer to this article.