Adoption of IPSAS at UNDP Informal Note to the Executive Board

1. Adoption of IPSAS at UNDPInformal Note to the Executive Board 8 September 2011

2. The IPSAS Programme in UNDP • IPSAS is being implemented using PRINCE2, an internationally recognized project management methodology • The IPSAS Programme is overseen by an IPSAS Technical Committee, representing all key stakeholders, the Board and the Operations Performance Group (OPG), and is directed by a full-time Manager • The Associate Administrator is the Champion of IPSAS. • The three fundamental pillars: • Financial Policy and Transition Workstream • IT Workstream • Change Management Workstream

3. Providing overall guidance and direction Approving the project plan and strategies Addressing project issues and risks Providing ad-hoc direction and advice Assessing and deciding project changes IPSAS Project Governance & Implementation OPERATIONS PERFORMANCE GROUP (OPG) Guide, Direct and Monitor IPSAS Project Decision Making • Review status reports • Review technical & operational issues • Recommend policy changes • Escalate cross cutting issues to the OG SPONSOR Akiko Yuge / BOM Director TECHNICAL IPSAS COMMITTEE Chair: Darshak Shah OFA, HR, OBP, PSO, OIST,LRC, MCT, ASD, PB, OSG, IPSAS Focal Points of RBx and other Central Bureaux Provides Recommendations to the OPG CHANGE MANAGEMENT MCT IT / SYSTEMS Work Stream OIST TRAINING Work Stream LRC POLICY Work Stream OFA Change Mgmt Review Sub-Committee OFA + MCT + LRC Policy Review Sub-Committee OFA & Relevant Organization Units UNBOA & OAI Project User Community involvement User Tracks: Revenue Management, Asset Management, Expense Recognition, Treasury , Statutory Reporting .. Expert users from the organization

4. IPSAS Project Status Financial Policy & Transition Workstream • Current Status: • All IPSAS standards that have been issued to date, thirty-five have been identified as applicable to UNDP, which should be implemented by 1 January 2012. Of these, thirty four policy papers (98%) were finalized, discussed and cleared with the United Nations Board of Auditors (UNBOA) and shared with the Audit Advisory Committee (AAC) and the Office of Audit and Investigations (OAI). This includes validation of the IPSAS standards applicable to UNDP • The Financial Regulations & Rules (FR&R) updated with IPSAS changes and presented to the ACABQ. ACABQ expressed its no objection to the Executive Board’s approval of the proposed amendments • Presentation of the revised FR&R to the Executive Board (September 2011) • Next Steps: • Finalize the one pending policy paper on Common Premises, in collaboration with other Agencies. • Revisions to the procedures to be completed by end-September. 90% completed by now. • As new IPSAS standards are issued periodically, their applicability will be ascertained by UNDP in consultation with UNBOA, and implemented accordingly. 4

5. IPSAS Project Status (Cont’d) IT Work Stream Current Status: • All business requirements and functional specifications completed. • Reporting requirements have been gathered and validated by country offices. • IPSAS Readiness Dashboard rolled out in April 2011. • Detailed workplan for IT track being formulated together with a reporting strategy (which will focus on top 20 reports). • Next Steps • Testing of different Atlas modules and reports to be completed by mid-October. 5

6. IPSAS Project Status (Cont’d) Change Management • Global Shared Service Center: • Negotiation with Host Government near completion. • Premises identified. • Recruitment activities have been completed. • Learning: • Monthly webinars completed. • All training materials completed. • IPSAS Training of Trainers (TOT) workshop will commence on 12 September. • Other face-to-face workshops planned for Oct – Nov, 2011.