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					                       MANUAL FOR DIRECT EXEUCTION



UNITED NATIONS DEVELOPMENT PROGRAMME




MANUAL FOR
  DIRECT
EXECUTION
         (2st DRAFT)




             October 2001
       UNDP Tirana, ALBANIA
                                           MANUAL FOR DIRECT EXEUCTION




                               PREFACE




T   his Manual was conceived by the UNDP Country Office in response to the
needs expressed by various parties involved in the implementation of UNDP-
supported programme/projects under the Direct Execution mode for a
systematised and consolidated set of guidelines and procedures for
programme/project preparation and implementation. This Manual attempts to
translate the UNDP policies and guidelines into more specific terms useful at the
operational level. Thus, this Manual provides information on the process of
programme/project preparation and guidelines in programme/project
implementation from planning and budgeting of expenditures, developing
management systems, mobilising inputs to monitoring and evaluation.

Most of the information in this Manual has been taken from UNDP documents
issued periodically. The specific policies and guidelines contained in this Manual
have been discussed and agreed upon by the UNDP Country Office and the
Ministry of Economic Co-operation and Trade, the Government Co-ordinating
Authority.
                                        MANUAL FOR DIRECT EXEUCTION



                        List of Acronyms

AOS       Administrative and Operational Support
APR       Annual Project Report
BL        Budget Line
CBO       Community-Based Organization
CCA       Common Country Assessment
CCF       Country Cooperation Framework
CDR       Combined Delivery Report
CTA       Chief Technical Adviser
DI        Designated Institution
DSA       Daily Subsistence Allowance
DSS       Development Support Services
EA        Executing Agency
FIM       Financial Information Management
GEF       Global Environment Facility
GOA       Government of Albania
IA        Implementing Agency
IALA      Implementing Agency Letter of Agreement
ILO       International Labour Organization
LPSB      Local Property Survey Board
LPAC      Local Programme/Project Appraisal Committee
NGO       Non-government Organization
NPD       National Project Director
PA        Preparatory Assistance
PBAC      Procurement, Bid and Awards Committee
PDR       Project Delivery Report
PFF       Project Formulation Framework
PM        Project Manager
PMO       Project Management Officer
PM        Programming Mannual
PSD       Programme Support Document
PSO       Programme Support Objective
SBAA      Standard Basic Assistance Agreement
SC        Service Contract
SHD       Sustainable Human Development
SPPD      Support Services for Policy and Programme Development
SSA       Special Service Agreement
STS       Support for Technical Services
TCDC      Technical Cooperation Among Developing Countries
TCI       Technical Counterpart Institution
TOR       Terms of Reference
TPR       Tripartite Review
TRAC      Target for Resources Assigned from the Core
TRR       Tripartite Review Report
UN        United Nations
UNDAF     United Nations Development Assistance Framework
UNDP      United Nations Development Programme
UNDP-CO   United Nations Development Programme – Country Office
UNDP-HQ   United Nations Development Programme – Headquarters
VLA       Volunteer Living Allowance
WFP       Work and Financial Plan
                                                                                            MANUAL FOR DIRECT EXEUCTION



                                                                Table of Contents

PREFACE ..................................................................................................................................................... 2

LIST OF ACRONYMS ................................................................................................................................ 3

INTRODUCTION ........................................................................................................................................ 7
        1.1      Objective of the Manual .............................................................................................................. 7
        1.2      Intended Users ............................................................................................................................. 7
DIRECT EXECUTION ............................................................................................................................... 8
        2.1      Execution vs. Implementation ...................................................................................................... 9
        2.2      The Actors involved ..................................................................................................................... 9
        2.3      Designation of UNDP as executing agent ..................................................................................11
        2.4      Cost recovery ..............................................................................................................................11
                 Annex 2A: UNDP Requirements for Project Execution.......................................................................... 12
PROJECT ACTIVITION ...........................................................................................................................15
                      Table 3.1 Activities for Project Start-up .............................................................................................. 16
PROJECT MANAGEMENT ROLES AND RESPONSIBILITIES .......................................................17
                      Table 4.1 Project Management Roles and Responsibilities .................................................................. 18
SETTING-UP THE PROJECT MANAGEMENT OFFICE ...................................................................19
        5.1      Hiring of PMO Personnel and Consultants................................................................................19
        5.2      Procurement of Equipment .........................................................................................................20
        5.3      Office Space and Basic Furniture/Fixtures for the PMO ...........................................................21
        5.4      Orientation of PMO Personnel and Project Partners ................................................................21
                 Annex 5A: Staffing Table for Project Personnel ..................................................................................... 23
                 Annex 5B: List of files to be kept in the PMO ........................................................................................ 24
PLANNING AND BUDGETING ...............................................................................................................25
        6.1      Work Planning............................................................................................................................25
                      Table 6.1 Work and Financial Plan ...................................................................................................... 26
        6.2      Budgeting ...................................................................................................................................26
                   Table 6.2 Mandatory Budget Revisions for UNDP Budget ................................................................. 28
                 Annex 6A: Annual Work and Financial Plan .......................................................................................... 30
                 Annex 6B: Quarterly Work and Financial Plan ...................................................................................... 31
                 Annex 6C: Quarterly Financial Forecast ................................................................................................. 33
                 Annex 6D: Budget Line for UNDP inputs .............................................................................................. 34
PROJECT MANAGEMENT SYSTEM: PERSONNEL ADMINISTRATION ...................................40
                      Table 7.1 Categories of Project Personnel and Hiring Policies ............................................................ 40
        7.1      Project Management Posts .........................................................................................................41
        7.2      General Organizational Relationships in the PMO ...................................................................41
        7.3      Recruitment of Project Personnel...............................................................................................42
                      Figure 7.1 Recruitment Process ............................................................................................................ 43
        7.4      Determination of Salary Rates and Compensation Package ......................................................44
        7.5      Contracts for Services ................................................................................................................44
                 Annex 7A:         Request for Volunteer........................................................................................................... 48
                 Annex 7B:         Interview Report Form.......................................................................................................... 50
                 Annex 7C:         Request For Personnel Action .............................................................................................. 52
                 Annex 7D:         Consultancy Fees Guidelines ................................................................................................ 53
                 Annex 7E:         Qualification Criteria and remuneration scale for project personnel/temporary assistance... 54
                 Annex 7F:         Sample Format for UNDP-issued SSA ................................................................................. 56
                                                                                           MANUAL FOR DIRECT EXEUCTION

               Annex 7G:         Sample Format for Service Contract ..................................................................................... 59
               Annex 7H:         Medical Clearance Procedures for SSA Recruitment ........................................................... 62
               Annex 7I:         Health Statement for Support Staff under SSA ..................................................................... 63
               Annex 7J:         Performance Evaluation Form for Individuals Hired Under Service Contract/SSA ............. 64
               Annex 7K:         Sample Format for Sub-contract ........................................................................................... 65
               Annex 7L:         Monthly Attendance Record ................................................................................................. 69
               Annex 7M:         Request for contract .............................................................................................................. 71
               Annex 7N:         Leave Application ................................................................................................................. 72
               Annex 7O:         Decision tree for determining the appropriate contract type ................................................. 73
               Annex 7P:         Typical jobs performed under each type of employment contract ........................................ 74
               Annex 7R:         Summary comparison of contract types and conditions of services ...................................... 75
PROJECT MANAGEMENT SYSTEM: DUTY TRAVEL .....................................................................76
       8.1     Project Management System: Duty Travel .................................................................................76
                 Table 8.1 Guidelines for Transportation Allowance ............................................................................ 78
               Annex 8A: Voucher for Reimbursement of Expenses ............................................................................. 79
               Annex 8B: Travel Plan............................................................................................................................ 81
               Annex 8C: Travel Request/Authorization ............................................................................................... 82
               Annex 8D: Ticket Request ...................................................................................................................... 83
               Annex 8E: Request for services .............................................................................................................. 84
PROJECT MANAGEMENT SYSTEM: PHYSICAL RESOURCE MANAGEMENT AND OTHER
MANAGEMENT SYSTEMS .....................................................................................................................85
       9.1     Equipment...................................................................................................................................85
       9.2     Vehicles ......................................................................................................................................87
       9.3     Transfer and Disposal of Equipment ..........................................................................................88
       9.4     Policy on Loss of Equipment/Items/Vehicles ............................................................... …………….
                   Table 9.1 Options for Disposition of Equipment .................................................................................. 90
       9.4     Other Management Systems .......................................................................................................90
               Annex 9A: UNDP Inventory Codes ........................................................................................................ 92
               Annex 9B: Memorandum Receipt for Equipment ................................................................................... 93
               Annex 9C: Non-expendable property ledger /Inventory list ................................................................... 95
FINANCIAL MANAGEMENT .................................................................................................................96
       10.1 Financial Accountability ............................................................................................................97
                   Table 10.1 Summary of Financial Accountabilities .............................................................................. 97
       10.2 Systems of Fund Transfer ...........................................................................................................98
                   Table 10.2 Summary of Fund Transfer Procedures .............................................................................. 98
       10.3 Fund Disbursement ....................................................................................................................98
       10.4 Accounting System ......................................................................................................................98
                   Figure 10.3 Disbursement Methods ...................................................................................................... 99
       10.5 Financial Reporting ...................................................................................................................99
               Annex 10A: Combined Delivery Report (CDR) .................................................................................... 101
               Annex 10B: Request for Direct Payment (RDP).................................................................................... 102
               Annex 10C: Supporting Documentation for Direct Payment ................................................................. 103
               Annex 10D: Petty Cash Ledger ............................................................................................................ 104
INPUT MOBILIZATION: PROCUREMENT OF SERVICES/WORKS AND GOODS ......... ERROR!
BOOKMARK NOT DEFINED.ERROR! BOOKMARK NOT DEFINED.
       12.1 Procurement Procedures ............. Error! Bookmark not defined.Error! Bookmark not defined.
                 Figure 12.1 Procurement Procedures for Goods ................................................................................ 146
               Annex 12A: Checklist for procurement of equipment and supplies ......................................................... 147
               Annex 12B: Check-list for procurement of services, goods and works .................................................. 147
               Annex 12C: Quotation Evaluation Format for Purchases less than $1,000 ............................................ 148
               Annex12D: Factors Involved in Consideration to Waive Competitive Bidding .................................... 149
               Annex12E Criteria for Selection of Companies for Short List ............................................................. 149
               Annex 12F: Procurement Plan .............................................................................................................. 150
               Annex 12G: Request for procurement ................................................................................................... 151
               Annex 12H: Local Purchase Order ........................................................................................................ 152
                                                                                             MANUAL FOR DIRECT EXEUCTION

                 Annex 12I: Request for Quotation ......................................................................................................... 153
                 Annex 12J: Bid Opening Records .......................................................................................................... 154
INPUT MOBILIZATION: TRAINING/FELLOWSHIPS/STUDY TOURS/WORKSHOPS............155
        13.1 Training/Fellowships/Study Tours ...........................................................................................155
                      Table 13.1 Responsibilities for Training/Fellowship and Study Tours ............................................... 156
                      Figure 13.1 Procedures for Training/Fellowship/Study Tours........................................................... 157
        13.2 Local Training, Workshops, Conferences and Meetings ..........................................................158
                 Annex 13A: Fees for resource people, moderators, facilitators and secretariat ..................................... 160
                 Annex 13B: Estimated tariff for conducting local training and survey .................................................. 160
                 Annex 13C: Budget for local training, workshops and research .............................................................. 161
MONITORING AND EVALUATION ....................................................................................................162
        14.1 Monitoring ................................................................................................................................163
                      Table 14.1 Monitoring Mechanisms .................................................................................................. 163
                      Table 14.2 Progress Reports .............................................................................................................. 166
        14.2 Revisions to Programme Support Documents and Project Documents ....................................167
        14.3 Evaluation ................................................................................................................................168
                   Figure 14.1 Steps in Organizing a Project Evaluation ....................................................................... 171
                   Table 14.3 The PEIS.......................................................................................................................... 172
                 Annex 14A: Field Visit Report Form .................................................................................................... 173
                 Annex 14B: Tripartite Review Report Form.......................................................................................... 174
                 Annex 14C: Quarterly Review Report ................................................................................................... 175
                 Annex 14D: Annual Programme/Project Review (APR) ....................................................................... 176
                 Annex 14E: Standard Revision Cover Page ........................................................................................... 181
                 Annex 14F: Project Evaluation Information Sheet ............................................................................... 182
AUDIT ........................................................................................................................................................191
                 Annex 15A:         Audit Procedures ............................................................................................................... 194
                 Annex 15B:         Standard Terms of reference for audit ............................................................................... 195
                 Annex 15C:         Checklist of documentation for auditors ............................................................................ 198
                 Annex 15D:         Outline of standard audit report ......................................................................................... 199
PROJECT COMPLETION ......................................................................................................................201
        16.1 Operational Completion ............................................................................................................201
                      Table 16.1 Terminal Report ................................................................................................................ 201
        16.2 Suspension and Cancellation ...................................................................................................203
                 Annex 16A: Terminal Report Form ....................................................................................................... 204
                 Annex 16B Final Clearance Form.......................................................................................................... 209
                                                   MANUAL FOR DIRECT EXEUCTION


                                                                                Chapter
                                                                                      1

                                        Introduction

                            1.1     Objective of the Manual

The Manual aims to help improve programme/project management accelerate
programme/project delivery and facilitate programme/project implementation and
financial audit. It attempts to provide a simplified and systematized set of guidelines and
procedures for directly executed programmes and projects based on UNDP policies and
guidelines and which are adapted to local field situations.

                                  1.2     Intended Users

       The intended users are:

               -      UNDP-Country Office

               -      Ministry of Economic Cooperation and Trade as UNDP
                      Counterpart in Albania

               -      Technical Counterpart Institutions (TCI) and Implementing
                      Agencies, which might include Government Institutions,
                      Universities, non-government organizations and UN Specialized
                      Agencies

               -      National programme and project directors and key management
                      officials

               -      Project management staff and other project personnel; and

               -      Other agencies and organizations involved and/or interested in
                      UNDP-supported programmes/projects directly executed by
                      UNDP
                                                     MANUAL FOR DIRECT EXEUCTION


                                                                                Chapter
                                                                                      2

                                       DIRECT EXECUTION

Policy, Objectives and Key Principles

Background

Direct execution is an operational arrangement whereby a UNDP country office (or other
UNDP unit) assumes responsibility, and accountability, for the formulation, management
and implementation of UNDP-supported projects

Appropriateness and criteria of direct execution

UNDP may consider using direct execution under the following circumstances:

           a) There is a situation which calls for speed delivery and decision-making where
              UNDP management is necessary for mobilizing resources
           b) National authorities lack the capacity to carry out the project
           c) The project could not be carried out by another UN Agency
           d) The UNDP Country Office has adequate capacity to manage, report and
              achieve the expected results of the project

Key principles for direct execution:

                   -        As executing agent UNDP assumes overall management
                            responsibility and accountability for project1 implementation,
                            while as a funding agency UNDP is accountable to the Executive
                            Board for all aspects of its operations
                   -        Oversight and accountability mechanisms
                   -        Government involvement
                   -        Capacity assessment
                   -        Cost recovery
                   -        Transitory arrangements

Key principles of this Manual

                   -        Judicious use of resources
                   -        Transparency and accountability of processes; and
                   -        Promotion of competition in the procurement of goods and
                            services



1
    Refers both to programmes and projects
                                                  MANUAL FOR DIRECT EXEUCTION


                         2.1     Execution vs. Implementation


Distinction should be drawn between capacity to execute and capacity to implement.
Execution requires substantive capacity for formulation, appraisal and monitoring and
evaluation as well as the ability to correctly design agreements/contracts with
implementing partners and manage them. Capacity to implement, in addition, requires
procurement and contracting staff, recruitment and finance specialists, systems, standard
documents, internal control framework, etc.

Execution involves a considerable responsibility for the overall management of the
project, including planning of project activities, supervision of performance, assessment
of progress and technical quality, attainment of objectives and impact, proper use of
funds. Execution thus goes beyond “doing all the project work” (procurement,
contracting and recruitment), i.e. implementation.

Other Execution Modalities at the Country Programme Level:

              -       National execution
              -       Execution by a UN Agency; or
              -       Execution by an NGO

                               2.2   The Actors involved

A key feature of DEX is the change in relationships among the parties (the government,
executing agencies and UNDP) as opposed to national or agency execution. The
introduction of DEX may result in the confusion of the traditional roles and
responsibilities and the role of each part should be explicitly defined.

Under the direct execution mode, the following entities are involved:

       -      The Resident Representative is accountable for the UNDP-executed
              project, but may nominate a person in the country office to be in charge of
              the day-to-day management of the project in the function of a “Project
              Director/Manager” (delegation of authority must be done in writing).

       -      UNDP (as executing agent): As executing agent, the country office
              assumes overall management of the project, along with the assumption of
              responsibility and accountability for the production of outputs,
              achievement of objectives and for the use of UNDP resources. This
              includes tasks such as planning of project activities, supervision of project
              implementation, financial accountability; assessment of progress and
              technical quality; reporting to the stakeholders of the project (UNDP
              Headquarters, government, beneficiaries and donors) as agreed in the
              project document and/or agreement; initiating and participating in
              monitoring and evaluation.
                                        MANUAL FOR DIRECT EXEUCTION



-   UNDP (as implementing agent - PSU): As implementing agent, ensures
    compliance with UNDP rules and regulations, provides support to the
    projects concerning payments, recruitment, procurement, contracting and
    travel arrangements.

-   UNDP (as financing agent): Approves the project; ensures appropriate
    project appraisal and capacity assessment; organizes LPAC; organizes and
    co-ordinates auditing process, evaluation, APR and TPR, ensures
    financial and substantive oversight of the project and liaison with
    concerned partners

-   UNDP Headquarters: Approves project execution modality; provides
    information, support and advice related to direct execution; monitors the
    experience of direct execution; provides expertise for auditing of DEX
    projects, participates in monitoring and evaluation

-   Ministry of Economic Cooperation and Trade as the government
    coordinating authority and UNDP counterpart in Albania: Approves
    the project, ensures coherence of activities with national policy and
    objectives through participation in the appraisal process; supports and
    complements UNDP endeavours; participates in monitoring and
    evaluation.

-   United Nations agencies: provide technical advice and support for
    technical services at the project level (STS funds) or serving as co-
    operating agent.

-   The Project Manager is responsible among other things for preparing
    and revising work plans; planning and organising project review meetings;
    providing technical feedback to senior management; ensuring that project
    activities are carried out within the financial limitations of the budget;
    supervising the technical and administrative support personnel and co-
    ordinating project activities with stakeholders and ensuring coherent
    reporting.

-   The UNDP Development Advisor/Programme Specialist is responsible
    for monitoring functions which includes following up on management
    actions; approving work plans, keeping track of progress benchmarks;
    visiting project sites to contact beneficiaries and contractors; interpreting
    progress and technical reports, processing budget revisions.
                                                  MANUAL FOR DIRECT EXEUCTION




                   2.3     Designation of UNDP as executing agent

Final approval of direct execution modality rests with the UNDP Regional Director.
Country offices wishing to undertake direct execution must submit the request to the
RBEC for approval of the direct execution modality.

                                 2.4     Cost recovery

The CO budget covers the costs related to its regular (core) programme activities only. If
the CO manages project itself, the additional workload will entail new administrative
costs (administrative support services, utilities, communications, etc). The CO should
calculate the costs attributable to executing a DEX project at the formulation stage and
include all such costs in the project budget.

It is recommended that a minimum of three percent of direct programme inputs be
allocated to cover additional country office costs, with a higher allocation subject to
determination of actual costs.
                                                              MANUAL FOR DIRECT EXEUCTION


Annex 2A:         UNDP Requirements for Project Execution

         UNDP has set down key requirements for project execution of UNDP-supported projects as
discussed below. These requirements define the standards or capacities necessary to carry out specific tasks
or assume certain functions in a certain manner, in order to successfully undertake a project and to ensure
accountability for the effective use of funds. The requirements broadly fall in four areas: (a) technical; (b)
management; (c) administration and (d) finance; but may overlap.

         In the design phase of a project, the concerned parties (UNDP, the NGO, the Government, others)
will determine which of the tasks apply to the project. For each necessary task, the parties will determine
what additional measures need to be taken in order to meet these requirements. Some of the requirements
below concern overall management (execution), whereas some refer to implementation of activities. Thus,
the requirements may apply both to the executing agent or implementing agents, depending on who carries
out the activities of the project.

A.       Technical Capacity

Ability to monitor the technical aspects of the programme/project

1.       Must undertake regular project visits and monitor benchmarks (quarterly)
2.       Must ensure that period progress and/or technical reports are received and interpreted
3.       Must possess technical analytical capability OR ability to identify experts for independent
         interpretation
4.       Must ensure regular consultations with beneficiaries, implementing agents and contractors

B.       Managerial Capacity

Ability to coordinate activities

1.       Must be able to inform, obtain information from and reach agreements with partners
2.       Must be able to participate in any coordination mechanism essential for the programme/project
3.       Must ensure annual project review meeting

Ability to ensure work planning

1.       Must be able to develop and review an annual work plan by assessing progress quarterly
2.       Must be able to identify which tasks can be best undertaken by others, and enter into contracts
         with the appropriate parties.
3.       Must ensure sufficient staffing for project activities
4.       Must possess necessary adequate logistics: office facilities and space, basic equipment, utilities,
         communications

C. Administrative Capacity

Ability to procure goods, services and works on a transparent and competitive basis

1.       Must be able to define the required quality, quantity, timely delivery and service for project inputs
2.       Must be able to assess the ability of vendors to provide the required quality; quantity; timely
         delivery, service, price competitiveness (considering unit prices), volume discounts; and
         transportation costs, as well as to assess any legal restrictions on the vendor (including import
         quotas, etc)
3.       Must be able to ensure that no conflict of interest exists with the vendors
4.       Must have the authority to enter into contracts
                                                             MANUAL FOR DIRECT EXEUCTION

5.      Must have available standard contracts OR access to legal counsel to ensure that contracts
        established performance standards, protect UNDP and the partner entity’s interests and are
        enforceable

Ability to prepare, authorize and adjust commitments and expenditures

1.      Must have written procedures for identifying the appropriate vendor, obtaining the best price, and
        issuing commitments
2.      Must specify authorization responsibility for types of goods and services to be purchased, the
        quantities to be purchased, the prices to be paid, and the acceptable terms
3.      Must have a system for tracking commitments against budget to prevent overspending
4.      Must have a procedure for follow-up on outstanding commitments and expediting delivery
5.      Must have written authorization of who can approve adjustments to commitments and purchases
6.      Must have a system for registering and reporting receipt of goods a in a timely and accurate
        manner

Ability to manage and maintain equipment

1.      Must have a property ledger (inventory) to track all important details about property and its cost,
        annually
2.      Must be able to ensure safe custody and appropriate maintenance, and use of the equipment

Ability to recruit and manage the best qualified personnel on a transparent and competitive basis

1.       Must have the ability to staff the project adequately, and enter into contracts with personnel
2.       Must have written job requirements for consultants or experts, as a basis for measuring and
         comparing candidates’ qualifications against the job requirements
3.       Must have procedures for investigating and verifying the backgrounds of candidates
4.       Must have procedures or a monitoring system for ensuring adequate performance against the job
         requirements, on which to base payment
5.       Must have available standard contracts or access to legal counsel to ensure that contracts establish
         performance standards, protect UNDP and the partner entity’s interests.

D.      Financial Capacity

Ability to produce project budgets

1.      Must be able to express the financial needs of the project based on the work plan, the required
        inputs and their financial cost
2.      Must be able to accurately forecast funds required to ensure only the minimum required funds are
        advanced by UNDP each quarter
3.      Must be able to manage tracking of commitments, expenditures and planned expenditures against
        the programme/project budget on a consolidated basis
4.      Must have a project budget showing the timing of planned expenditures, for each year, by quarter
        (and preferably by month).

Ability to ensure physical security of impress accounts, cash and records

1.      Must maintain a checking account in a reputable bank or a secure safe for any cash on hand
2.      Must allow only limited access to the funds
3.      Must have clear procedures on authority, responsibility, monitoring and accountability for the
        funds
4.      Must have physical security over the funds at all times
5.      Must have a locked (and preferably fireproof) place to store records, files, budgets, expenditures
        and reports
                                                          MANUAL FOR DIRECT EXEUCTION

6.      Must make payments to personnel, by transferring cash or checks to the personnel, in a secure
        manner

Ability to disburse funds in a timely and effective manner

1.      Must have written procedures for processing payments to control the risks through segregation of
        duties, and transaction recording and reporting
2.      Must have a process for recording and reporting all expenditure made
3.      Must have monitoring controls, such as independent bank reconciliation
4.      Must have a list of personnel authorised to approve expenditures of funds, and their specimen
        signatures (dual signatures)
5.      Must have a process for the review and checking of the request for payment against supporting
        documents and authorised commitments
6.      Must have a means of verifying the receipt of goods or performance of services and proper
        authorisation
7.      Must have a system of checking and verifying available funds in the project budget before
        commitments are made, to prevent over-expenditure of the budget
8.      Must be able to manage the status of expenditures against the budget, and the remaining available
        budget

Ability to ensure financial recording and reporting

1.      Must record all expenditures promptly and accurately, and reduce available budgets accordingly
2.      Must have a check register or book keeping system that records all payments immediately
3.      Must have a reporting system that tracks all commitments and expenditures against budgets by
        line
4.      Must have a reporting system that allows project expenditures to be reported to UNDP at least on
        a quarterly basis, and which accumulates programme/project-to-date expenditures against the
        budget for management purposes.
5.      Must have a means by which to independent verifying the accuracy of expenditures and financial
        reporting, such as through independent bank reconciliation, and audits of the accounts
                                                   MANUAL FOR DIRECT EXEUCTION


                                                                                Chapter
                                                                                      3

                                  PROJECT ACTIVATION



Project Activation

       -       Designation of Officials
       -       Setting-up the Project Management Office (PMO)
       -       Orientation of PMO Personnel
       -       Development of Management Systems
       -       Preparation of Annual and Quarterly Work-plans
       -       Designation of disbursing officials
       -       Request for Technical Counterpart Institution
       -


Objective

Preparatory activities need to be undertaken after signing of the Project Document. These
project start-up activities are meant to: (a) organise the project management structure and
assign responsibilities; (ii) establish the project management and financial management
systems; (iii) establish institutional linkages and define functional relationships; (iv)
determine work directions and resource requirements for the initial year of
implementation and (v) when appropriate, facilitate establishment of an impress account
for the project.

Activities for Project Start-up

The following activities should be completed preferably within three months from
signing of the Project Document:
                                                                MANUAL FOR DIRECT EXEUCTION

Table 3.1               Activities for Project Start-up

ACTION                                     RESPONSIBLE UNIT                 DOCUMENTATION
1. Designation of officials for            UNDP-CO/Government               Letter     of   Technical   Counterpart
   project     oversight     and           Coordinating Authority (GCA)     Institution’s (TCI) Head indicating
   signatories         (National                                            officials’ names and specimen signatures
   Programme/Project                                                        addressed to the UNDP Resident
   Director2, Project Manager,                                              Representative
   etc)

2.        Setting-up  the     Project      UNDP/TCI
          Management Office (PMO)

3.        Hiring of PMO personnel          UNDP-CO                          Terms of Reference for positions and
                                                                            vacancy announcements
4.        Procurement of equipment         UNDP-CO                          List of equipment specifications

5.        Establishing PMO location        UNDP-CO/GGA                      Written notification to UNDP-CO (cc:
                                                                            MoECT) on office address
6. Orientation of PMO personnel            UNDP-CO
   and partners on:

     a) Project    design           and                                     Project Document as reference
        implementation
        arrangements;
     b) DEX guidelines                                                      Simplified Manual on DEX Guidelines

7.        Development of project           UNDP, PSU and PMO                Simplified Manual on DEX Guidelines
          resource  and     financial
          management systems

8.        Submission of Annual Work        PMO                              Annual Work and Financial Plan (Annex
          and Financial Plans                                               3A)

9.        Designation    of   disbursing   UNDP-CO                          Notification to UNDP-CO (cc: MoECT)
          officials                                                         on names and specimen signatures of
                                                                            designated disbursing officials

Designation of Disbursing Officials for the Project

The UNDP-CO shall designate the certifying and approving officials for all
disbursements under the project. Normally, under DEX, the Project Manager and
Finance/Administrative Assistant are designated for this purpose. The Technical
Counterpart Institution or PMO shall notify the UNDP-CO (cc: Ministry of Economic
Cooperation and Trade) of the names and specimen signatures of the disbursing officials
as soon as the Project Manager is employed.

2
  Under the DEX, since UNDP assumes overall responsibility and accountability, there is no formal requirement of
designating Government Programme/Project Director, but in order to ensure maximum impact and Government’s
involvement in the programme/project, government officials should be involved in DEX projects. The
Programme/Project Director is not involved in day-to-day management and implementation of the programme/project,
but responsible for providing substantial advice and guidance to the programme/project.
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                                                                               Chapter
                                                                                     4

           PROJECT MANAGEMENT ROLES AND RESPONSIBILITIES


PROJECT MANAGEMENT ROLES:

       -       Overall institutional leadership
       -       Staffing
       -       Planning, organizing and directing implementation
       -       Accountability and reporting
       -       Advisory and consultative mechanism



Supervisory function. A senior UNDP official (RR, DRR) who deals with policy issues
and has the overall responsibility for the achievement of results performs the supervisory
function. This official ensures that adequate mechanisms are in place to guarantee the
transparency and accountability as well as the efficiency of project operations. This
official is also responsible for assessing performance, ensuring regular reporting to
headquarters, approving budget revisions and, signing contracts for recruitment and
procurement of services. This official supervises the Project Manager.

The resident representative may delegate certain administrative, technical or financial
responsibilities to other UNDP officials. This must be done in writing.

Day-to-day project operations are delegated to a Project Manager. The Project Manager
is responsible among other things for preparing and revising workplans; planning and
organising project review meetings; providing technical feedback to senior management;
ensuring that project activities are carried out within the financial limitations of the
budget; supervising the technical and administrative support personnel and coordinating
project activities with stakeholders and ensuring proper reporting.

The monitoring function includes following up on management actions, keeping track of
progress benchmarks, visiting project sites to contact beneficiaries and contractors,
interpreting progress and technical reports, processing budget revisions, and making
arrangements for evaluation and audit.

The monitoring and implementing functions are complementary but different in nature.
To ensure transparency, the same person cannot perform both roles; that is: a) to take
charge of day-to-day project operations and b) to monitor the project’s progress.
Normally a UNDP Development Advisor performs the monitoring function if a Project
Manager is hired from outside. If the Programme Officer manages the project, another
management official should perform the monitoring function (DRR or ARR).
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The following management roles and major responsibilities shall be carried out by the
National Programme/Project Director (NPD) and the Programme/Project Manager (PM):
Table 4.1 Project Management Roles and Responsibilities

MANAGEMENT ROLE              OFFICIAL RESPONSIBLE         MAJOR RESPONSIBILITIES
1. Overall institutional     NPD                           - Obtaining required Government support to the
   leadership                                                project
                                                           - Facilitating intra- and inter-agency cooperation
                                                             for successful project implementation
                                                           - Leading the project’s advocacy efforts
                                                           - Ensuring project’s continued relevance
                                                           - Project promotion through public information

2.   Staffing                PM (to be involved as soon    -   Designation and mobilization of appropriate
                             as recruited) with the            regular personnel to serve as project staff and/or
                             assistance of UNDP-CO             as technical counterparts to the Specialists
                                                           -   Recruitment of Project Manager, Specialists and
                                                               other key technical personnel

3.   Planning, organizing    PM                           -    Leadership and substantive technical inputs in
     and         directing                                     detailed planning (preparation of Work plans)
     implementation                                       -    Organization of work and setting up of project
                                                               management systems
                                                          -    Management of input mobilization and day-to-
                                                               day project operations (including timely
                                                               resolution of issues, problems and bottlenecks)
                                                          -    Overseeing overall Workplan implementation
                                                               in coordination with implementing Agency
                                                               (ies) and/or partners through establishment of a
                                                               monitoring       system     and     coordination
                                                               mechanisms

4.   Accountability   and    PM and UNDP-CO               -    Attainment of project objectives
     Reporting                                            -    Ensuring judicious and proper use of UNDP
                                                               and Government financial resources in
                                                               accordance with UNDP policies and guidelines
                                                               through installation of an efficient and effective
                                                               financial management system
                                                          -    Efficient administration of personnel and
                                                               physical resources (including inventory control
                                                               and management, ensuring sub-contractor
                                                               performance, etc)
                                                          -    Preparation and timely submission of accurate
                                                               substantive, technical and financial reports to
                                                               UNDP-CO and MoECT
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                                                                             Chapter
                                                                                   5

             SETTING-UP THE PROJECT MANAGEMENT OFFICE


                   SETTING-UP THE PROJECT MANAGEMENT OFFICE:

       -      Hiring of PMO personnel and consultants
       -      Procurement of equipment
       -      Office space and basic furniture/fixtures for the PMO
       -      Orientation of the PMO personnel and project partners


Major Activities for Setting-up the PMO

To establish the PMO, the UNDP-CO will undertake the following major activities:

       -      Hiring of PMO personnel
       -      Procurement of project equipment; and
       -      Orientation of the PMO personnel and project partners

                   5.1   Hiring of PMO Personnel and Consultants

General Policies

Under direct execution, UNDP-financed project management posts should be
incorporated into the project’s organizational design at the project preparation stage.
UNDP-CO will recruit and issue appropriate employment contracts to nationally- and
internationally-recruited personnel (Refer to Annexes 7F and 7G for sample formats for
employment contracts and Annex 5A, 5B and 5C for for decision tree for determining the
appropriate contract type and summary comparison of contract types and conditions of
service).

Responsibilities for Recruitment of Various Types of Personnel

The following subsections indicate the responsibilities and general arrangements for
recruitment of various types of project personnel (Refer to Chapter 7 for details on the
recruitment process).
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Hiring of National Professionals

UNDP-CO, through its PSU, will be responsible for the recruitment and issuance of
contracts to suitable national professional personnel and consultants based on approved
job descriptions, minimum qualification standards for the posts and on basic recruitment
guidelines (Refer to Chapter 5 and 7 for more details on the national professional and to
Chapter 11 on subcontracting procedures).

Hiring of International Professionals

UNDP-CO, through its PSU, will recruit and contract the services of the international
professionals in accordance with UNDP guidelines.

Hiring of United Nations Volunteers (UNVs)

When necessary, the UNDP-CO/PSU will arrange the employment of UN Volunteers in
accordance wit h the established UN procedures for recruitment of UNVs (Refer to
Chapter 7 for more details on the employment of UNVs and to Annex 7A for the Request
Form).

                          5.2      Procurement of Equipment

Responsibility for Procurement of Equipment

UNDP, through its Programme Support Unit, will be responsible for the procurement of
approved office/project equipment in accordance with the UNDP procurement guidelines
and with due respect to the UNDP principles of transparency and competitiveness in
procurement (Refer to Chapter 12 for procedures for procurement of goods). Procurement
of equipment shall be completed within three months from the establishment of the PMO.

Determining Equipment Specifications

In determining the detailed specifications of equipment indicated in the Project
Document, the PMO shall suit the specifications or models to the project’s day-to-day
operational needs.

Arrangements for Vehicle Registration, Insurance and Deployment

For vehicles procured by UNDP-CO locally, the PMO shall handle the registration,
insurance, marking and deployment of the vehicle.

For vehicles imported through the UNDP-CO, the UNDP CO shall initially handle the
customs clearance, registration, insurance and marking of project vehicles while the PMO
shall handle and cover the cost of vehicle deployment to the regional project sites. Upon
request of the PMO, the UNDP-CO may continue to render assistance in registering and
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insuring the said vehicles in subsequent years (Refer to Chapter 9, section 9.2 for details
on vehicle maintenance).

           5.3     Office Space and Basic Furniture/Fixtures for the PMO

The Technical Counterpart Agency may provide office space and basic furniture for the
PMO within the agency premises. Where this is not possible, the PMO may be based in a
rented office space.

             5.4     Orientation of PMO Personnel and Project Partners

The Project Manager assisted by the UNDP-CO, shall conduct an orientation for project
personnel and implementing partners on the project design and DEX guidelines and
procedures contained in this Manual.

Management and administration of project personnel

The PM will manage the personnel administration of all national project personnel,
including short-term and long-term national consultants and local support staff and will
maintain the Staffing Table for the project (See Annex 5D.). The PM is responsible for
evaluating the performance of project personnel on an annual basis for project support
personnel and for national consultants upon completion of their assignment.
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Annex 5A:     Staffing Table for Project Personnel

Post Title   Incumbent’s Name      Salary      Type of    Contract   Budgeted     Entry on   Duration of current contract   BL
and                                            contract   No         Period for   Duty       From           To
Function                                                             the Post
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Annex 5B:      List of files to be kept in the PMO




1. Personnel file (Copies of contracts, terms of references, requests for contract, copies of
   announcement, CVs, evaluation and minutes of Interview Panel etc)

2. Annual and Quarterly Work Plans and Financial Forecasts

3. Annual and Quarterly Progress Reports, APRs TPRs, Evaluations, Audit Reports

4. Combined Delivery Reports, Project Monthly/Quarterly Financial Reports

5. Copy of the Project Document and of all budget revisions

6. Copies of all Payment requests with supporting documents submitted to UNDP office

7. Copies of Petty cash reports and impress account (where applicable)

8. Non-expandable property ledger/Inventory ledger

9. Procurement (purchase order, invitation for bid, if any, specification, tender proposals, evaluation)
   and copies of the contracts

10. Training related documents

11. Logbooks for vehicles
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                                                                            Chapter
                                                                                  6

                          PLANNING AND BUDGETING


                             PLANNING AND BUDGETING:

       -      Work Planning
                    Preparation of a Work and Financial Plan

       -      Budgeting
                    UNDP inputs
                    Government and Third Party Cost-sharing Contribution
                    Trust Funds
                    Government Counterpart Contribution


                               6.1    Work Planning

Work and Financial Plan

Further to the Work and Financial Plan (WFP) annexed to the Project Document, the
PMO shall prepare and submit, within 45 days from signing of the Project Document, a
more detailed quarterly WFP.
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Table 6.1   Work and Financial Plan
   PARTICULARS                                          GUIDELINES
PURPOSE            Uses
                     - to provide direction in organizing work for project implementation
                     - As a reference in resource allocation
                     As a tool for monitoring the progress of project implementation (shall be a basic
                     input to the quarterly and annual project reviews)
CONTENT            The WFP shall indicate the following information covering the next 3 months:

                           - Project activities and sub-activities (preparatory/input delivery activities shall be
                             distinguished from project activities which involve work on transformation of
                             project inputs to planned outputs; critical activities requiring special attention or
                             strict deadlines for delivery of inputs shall also be identified)
                           - Implementing or responsible parties/units
                           - Quantitative/qualitative observable benchmarks (performance indicators) for
                             completion of activities and sub-activities
                           - Planned outputs and expected date of availability/realisation
                           - Projected financial and material resource requirements and date by which inputs
                             should be available; and
                           - Interdependence among activities and sub-activities in terms of input-sharing,
                             output utilisation , complementation and expected timing for completion

                                               (refer to Annex 6A, B and C for WFP format)

DISTRIBUTION               - PMO shall submit a copy to the UNDP-CO for review and comments. Initial WFP
                             shall be submitted within 45 days from the signing of the Project Document

MANDATORY                  - On a quarterly basis for submission to the UNDP-CO
UPDATING BY PMO

REVISION                   - May be revised as necessary in response to emerging developments
                           - Revisions to accommodate changes in schedules and add, delete or modify
                             activities without affecting the project budget, may be made by the PMO in
                             consultation with the UNDP-CO
                           - Copies of the revised WFP shall be provided to the UNDP-CO together with an
                             indication of the revisions made and corresponding justifications within 15 days
                             from revision
                           - Work plan revisions which will entail substantial changes in the project approach
                             and/or budget shall necessitate prior consultation with and approval of the UNDP-
                             CO


                                         6.2      Budgeting

UNDP Inputs
Budget for UNDP Inputs
After signing of the Project Document, the PMO, shall prepare a revised budget based on
the prevailing UNDP-specified exchange rate at the time of Project Document signing.
This budget shall serve as the basis for planning and budgeting throughout the project
life.
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Estimating Funding Requirements

Budgeting shall be done in consultation with the UNDP-CO. The PMO shall ensure
application of sound budgeting principles in the estimation of funding requirements based
on the work plan. While the budget in the Project Document specifies the limits on
spending for each budget line item, programming of funds for actual project
implementation shall aim to optimize use of project resources and consider the most
economical, efficient and effective means of attaining planned project outputs of the
desired quality on a timely basis. The PMO may use the UNDP-CO’s FIM-generated
budget format.

The PMO shall prepare the UNDP financial inputs portion of the WFP based on the
UNDP coding system for expense categories and budget lines (Refer to Annex 6D for
budget line codes and corresponding eligible items).

Budget for UN Specialized Agency as Implementing Agent

The budget, as indicated in the budget annex of the Project Document shall reflect only
the budget lines for components and sub-components assigned to the UN Agency. The
UN Agency may be reimbursed by UNDP Headquarters for costs of procurement and
delivery of inputs for the project. This Administrative and Operational Services (AOS)
cost shall be in the form of a flat rate not exceeding 10 percent of the project expenditures
relating to the component being implemented.

Mandatory Budget Revision/Rephasal for UNDP Contribution

The budget for UNDP contribution shall undergo mandatory initial and periodic formal
revisions by the UNDP-CO to update costs of project inputs and bring allocations to more
realistic levels in light of updated work plans, emerging requirements and the rate of
actual fund utilization. The PMO shall coordinate closely with the UNDP-CO to ensure
the timely execution of the rephasals as indicated in Table 6.2 below. Under DEX
modality, the UNDP-CO, as authorized in the Project Document, may approve
unilaterally any type of budget revisions.
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Table 6.2              Mandatory Budget Revisions for UNDP Budget

 TYPE OF REVISION                         PURPOSE                           TIMING                      RESPONSIBLE UNIT
1. Initial Rephasal                To reflect latest forecast       Within 60 days from               PMO in coordination with the
                                   of costs of project inputs       signing of the Project            UNDP-CO, Final issuance by
                                   based on a more likely           Document                          UNDP-CO
                                   schedule of delivery

2. Mandatory Annual                To reflect the previous          Draft revision,                   PMO
Rephasing                          year’s actual                    explanation on variance
                                   expenditures as reported         from last year’s budget
                                   in the year-end                  and basis for current
                                   Combined Delivery                year’s budget
                                   Report (CDR)                     calculation – for
                                                                    submission to UNDP by
                                                                    April 15

3. October Rephasing               To estimate the budget           Forecast of 4th quarter’s         PMO
(for large projects                for the next and                 budget requirements –
costing $250,000 and               subsequent years and to          for submission to
above; and delayed                 focus on means of                UNDP-CO by 15
projects3)                         improving project                October
                                   delivery in the current
                                   year                             Final revision by                 Final issuance by UNDP-CO
                                                                    December 1


Regular/Formal Budget Revision

A formal budget revision for realignment in the current year’s budget shall normally be
required if the changes in expenditure will be implemented before April 15 and October
15. Any further need for change in expenditure after the UNDP-CO’s final issuance of
the mandatory budget revision on June 10 and the rephased budget on December 1 should
be captured in a formal budget revision or in the next scheduled budget revision at the
latest. The PMO shall forward a request for budget revision with supporting justifications
to UNDP-CO for approval before implementing changes in budget expenditures.
Rephasal or rescheduling of expenditure of budget line allocations across the years may
be allowed where it determined by UNDP-CO that a realignment in the current year’s
budget is not possible due to anticipated effect on other activities for the year (front-
loading). Unused allocations in the yearly budget shall be reverted by the UNDP-CO to
its TRAC resources. Requests for rephasal of unused allocations shall be reviewed and
approved by UNDP-CO on a case-by-case basis.




3
    Small projects costing less than $250,000 or which have pending revisions may be excluded from the October rephasing
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                                                                   Annex 6A:              Annual Work and Financial Plan4


                                                                                                                             TIMETABLE                                               BUD
       MAJOR                 OUTPUT/                 RESPONSIB.             DEADLINE                1st Quarter        2nd Quarter 3rd Quarter                  4th Quarter          GET           BUD
    ACTITIVITIES5          BENCHMARKS                PARTY(IES)                                                                                                                      LINE          GET




4
  Initial WFP for submission to UNDP-CO within 45 days from signing of the Project Document; subsequent WFPs for quarterly updating and submission to UNDP-CO in March, June, September and
December; to serve as inputs to quarterly and tripartite progress reviews
5
  Supplement with narrative section. Indicate the interdependence/linkages among activities/sub-activities in terms of input-sharing, output utilization and complementation and identify critical activities
requiring special attention. Also include activities of partner agencies/organizations where this will contribute to attainment of planned outputs
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                                                Annex 6B:        Quarterly Work and Financial Plan

         Outputs            Output indicators                         Activities                     Dates    Amount      B/Line
Output 01                                       Activity 1
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership (if applicable):

                                                Activity 2
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership (if applicable):
Output 02                                       Activity 1
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership (if applicable):

                                                Activity 2
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership (if applicable)
...                                             ...
                                                            Cross-cutting thematic activities
Gender-mainstreaming                            Activity 1
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership:
Environment mainstreaming                       Activity 1
                                                Managerial Action 1:
                                                Responsibility:
                                                Partnership:

Prepared by PM ______________                   Date _________________
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                               Annex 6C:         Quarterly Financial Forecast




_______________________________________________________________ (Project Number and title)

For _____________________ (quarter / year)


B/ Line       Description                       Annual Budget        Year to date    Available      Amount
                                                (latest revision)    Expenditure     Budget         required
11.01
13.01
...
Total


This financial forecast corresponds with and covers activities indicated in the quarterly operational Work Plan.




VERIFICATION OF BUDGET AVAILABILITY

Prepared by PM         ______________
Date _________________

Approved by UNDP ______________
Date ________________
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                           Annex 6D:          Budget Line for UNDP inputs

BUDGET LINE        BRIEF DESCRIPTION                             DETAILED DESCRIPTION

                           Budget Component 10: PROJECT PERSONNEL

                                         11. INTERNATIONAL STAFF

  11.01 to 11.48   EXPERTS                     These lines are to be applied for using the services of
                                               international experts whose assignment is of six months and
                                               more. Experts can be recruited both on local and international
                                               basis. Each expert post, identified by a functional title, should be
                                               recorded on a separate budget sub-line. The number of man-
                                               months which is expected to be delivered under each expert post
                                               should be shown within each annual segment of the budget with
                                               appropriate cost. The costs should include contractual fees,
                                               travel on appointment and repatriation but exclude project-
                                               related travels which are charged at actual cost to appropriate
                                               budget lines.
           11.49   Sub-total (Experts)         System calculated total.
  11.51 to 11.96   CONSULTANTS                 These lines are to be used for international consultants with the
                                               duration of assignment more than one but less than six months.
                                               Each proposed consultancy is to be at least tentatively identified
                                               by a subject matter and shown on a separate sub-line with the
                                               best estimate of corresponding man-months and cost. The costs
                                               should include contractual fees, travel on appointment and
                                               repatriation but exclude project-related travels which are
                                               charged at actual cost to appropriate budget lines
          11.97    S/T CONSULTANTS             This line is used for consultancies expected to last less than one
                                               month. Services of short-term consultants should not be
                                               budgeted by individual post, but the aggregate number of man-
                                               months expected to be delivered each year. The costs should
                                               include contractual fees, travel on appointment and repatriation
                                               but exclude project-related travels which are charged at actual
                                               cost to appropriate budget lines.
          11.98    Sub-Total (Consultants)     System calculated total
          11.99    Sub-Total                   System calculated total

                             13. ADMINISTRATIVE SUPPORT PERSONNEL

  13.01 to 13.97   ADMINISTRATIVE              Administrative support personnel include administrative/finance
                   SUPPORT                     assistants (different from professional administrative officers),
                   PERSONNEL                   secretaries, translators, clerks, drivers, cleaners and guards. The
                                               administrative should be identified by a post title and recorded
                                               on a separate budget sub-line. The number of man-months
                                               which is expected to be delivered under each administrative post
                                               should be shown within each annual segments of the budget
                                               with appropriate cost. The costs should include contractual fees,
                                               travel on appointment and repatriation (if any), but exclude
                                               project-related travels which are charged at actual cost to
                                               appropriate budget lines.
          13.98    SOCIAL SECURITY
          13.99    Sub-Total                   System calculated total

                                           14. UN VOLUNTEERS

  14.01 to 14.98   UNV                         The recruitment of United Nations Volunteers is handled
                                               through the United Nations Office in Born. Locally incurred
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                                      cost of Volunteers is usually paid through local UNDP Offices.
                                      This line is for budgetary purposes. A system of in-country costs
                                      has been established by UNV Programme and should be used
                                      against this line. The type of costs which are included for in-
                                      country costs are as follows:
                                      1. Settling-in grant
                                      2. Monthly living allowance
                                      3. Insurance for medical and/or dental care, actual cost when
                                           not covered by insurance and compensation in case of death
                                           or disability
                                      4. Expenses for in-country orientation and language training
                                      5. Miscellaneous and contingencies
                                      Provision for supplies, technical and transportation equipment
                                      necessary for the UNV’s work and for official travel outside the
                                      duty station (including transportation and DSA) should when
                                      applicable be charged against the appropriate budget line (e.g.
                                      travel under line 15 and equipment under line 45) and not
                                      against budget line 14.
                                      Each post should be identified by functional title and recorded
                                      on separate sub-line. The number of man-months which is
                                      expected to be delivered under each UNV post should be shown
                                      within each annual segment of the budget with appropriate cost.
        14.99    Sub-total            System calculated total

                                    15. DUTY TRAVEL

15.01 – 15.98    DUTY TRAVEL COST     This budget line includes project related travel within the
                                      country and is to be budgeted at estimated actual cost. This
                                      budget line also covers the travel of experts and consultants who
                                      have no contract and receive no fees. (The travel costs of
                                      participants of meetings, seminars, workshops and training
                                      programmes are charged to budget component 30).
        15.99    Sub-total            System calculated total

                                  16. MISSION COSTS

16.01 – 16.98    MISSION COSTS        In the course of planning a project or during its execution visits
                                      to the field by UNDP personnel may be necessary. These visits
                                      are defined as mission and related expenditures (travel costs and
                                      DSA) are budgeted at estimated actual costs. Travel expenses of
                                      field staff (including project staff) may also be listed under this
                                      heading when individuals concerned participate in the
                                      investigation, appraisal of requests, project reviews and
                                      evaluation missions. In exceptional circumstances, mission costs
                                      may be incurred by a government officials attending
                                      intergovernmental meeting related to the activities of the
                                      projects.
        16.99    Sub-Total            System calculated total

                             17. NATOINAL PROFESSIONALS

17.01 to 17.47   EXPERT               This budget line covers the employment of national experts with
                                      the duration of appointment of six months and more. Each
                                      expert post should be identified by functional title and shown on
                                      separate sub-line. The number of man-months which is expected
                                      to be delivered under each expert post should be shown within
                                      each annual segment of the budget with appropriate cost. The
                                      costs should include contractual fees, travel on appointment and
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                                         repatriation (if any), but exclude project-related travels which
                                         are charged at actual cost to appropriate budget lines.
         17.48   SOCIAL SECURITY
         17.49   Sub-total               System calculated total
17.52 to 17.96   CONSULTANT              If the duration of national professionals post is more than one
                                         but less than six months, it should be considered as a
                                         consultant’s pot and be at least tentatively identified and shown
                                         on separate sub-line with the best estimate of the corresponding
                                         man-months and cost. The costs should include contractual fees,
                                         travel on appointment and repatriation (if any), but exclude
                                         project-related travels which are charged at actual cost to
                                         appropriate budget lines
        17.97    S/T CONSULTANT          This line is used for consultancies expected to last less than one
                                         month. Services of short-term consultants should not be
                                         budgeted by individual post, but the aggregate number of man-
                                         months expected to be delivered each year. The costs should
                                         include contractual fees, travel on appointment and repatriation
                                         (if any), but exclude project-related travels which are charged at
                                         actual cost to appropriate budget lines.
        17.99    Sub-total               System calculated total
           19    Component Total         System calculated total

                             Budget Component 20: SUB-CONTRACTS

                                     21. SUB-CONTRACTS

      21 to 28   SUB-CONTRACTS           Subcontracts can be only used to fulfil activities which are
                                         foreseen and budgeted within the Project Document. Providers
                                         of services through subcontracts should be private institutions or
                                         consultancy firm outside or within the country, and in some
                                         cases other projects within UN System. All costs relative to
                                         subcontracts should be charged to this lines. Each subcontractor
                                         should be shown on a separate budget line. Subcontract can be
                                         divided into different parts and if so these parts should be
                                         reflected on separate sub-lines with the estimated working
                                         months and appropriate cost.
                                         Premises other than housing for experts should be charged
                                         against this line. This includes the construction cost of any
                                         premises to be provided for in the project as well as rental cost.
           29    Component Total         System calculated total

                                Budget Component 30: TRAINING

                                       31. FELLOWSHIP

  31.01-31.98    FELLOWSHIP              Fellowships are the structured training programmes abroad
                                         lasting to three months.
                                         The field of study of the fellow and the duration should be
                                         reflected in the work plan of the project document. The
                                         minimum unit for the budgeting of fellowships is the half
                                         month. Charges are made to project account on the basis of
                                         actual cost incurred. This line includes all expenses related to
                                         fellowship (monthly fellowship stipend, medical insurance,
                                         travel expenses, books, etc)
        31.99    Sub-Total               System calculated total
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                                 32 GROUP TRAINING/
                                     STUDY TOURS

32.01-32.98   GROUP TRAINING/        Study tours are visits to institutions abroad for a maximum
              STUDY TOURS            period of 2 moths.
                                     Group training is courses, seminars, workshops, symposia and
                                     visits to similar Projects abroad or within the country for a
                                     maximum period of 2 weeks.
                                     This sub-lines cover actual cost of participants in organized
                                     programmes mentioned above which are normally conducted
                                     outside the country of residence and prepared exclusively to
                                     meet the needs of a particular person or group.
                                     This line covers the cost of travel and subsistence for
                                     participants. The remuneration to support personnel and
                                     professional staff hired to assist seminars and related activities
                                     should be paid charging this line
     32.99    Sub-Total              System calculated total

                                33. IN-SERVICE TRAINING

33.01-33.98   IN-SERVICE             In-service training refers to short-term courses, seminars or
              TRAINING               workshops organized under programme or project in the host
                                     country for groups of personnel or beneficiaries of the
                                     programme or project.
                                     This line covers costs for structured individual or group training
                                     of nationals within the country in connection with the activities
                                     of a project. Trainers’ and lecturers’ fees are to be charged
                                     against this line as well as admin. support staff. All costs
                                     relating to in-service training including purchasing of stationery
                                     and training materials should be covered by this line.
     33.99    Sub-Total              System calculated total

        39    Component Total        System calculated total

                                    40 EQUIPMENT

                                    45 EQUIPMENT

     45.01    CONSUMABLE             This category includes stationary, (purchased or printed) books,
              OFFICE SUPPLIES        periodicals and reference materials. These items should be less
                                     than $50 per unit with a serviceable life of up to one year. No
                                     inventory records should be kept
     45.02    EXPENDABLE             Expandable equipment includes items which have unit value
              EQUIPMENT              more than $50 but less than $500 and useful life of less than one
                                     year. It can be also be spare parts, software, cartridges for
                                     printers or copiers, etc. no inventory records should be kept
     45.03    NON-EXPENDABLE         Non-expandable equipment costing more than $50 and/or with a
              EQUIPMENT              life of over one year. Inventory records should be kept
     45.04    OPERATION AND          All costs connected with the rental and maintenance of office
              MAINTENANCE            equipment. Payments for such services to individuals should be
                                     made on the basis of SSA and charged against this sub-line
45.05-45.98   Unspecified            All other procurement which is not mentioned above. This
                                     category may include vehicle, vehicle repairs and maintenance,
                                     vehicle insurance, rent of premises from individuals, etc. In case
                                     if project document envisages establishment of library separate
                                     sub-line should be charged for purchasing of necessary
                                     literature. All such items should be registered
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        45.99    Sub-Total               System calculated total

           49    Component Total         System calculated total

                                     50. MISCELLANEOUS

                                      52 REPORTING COST

        52.01    AUDIT                   Payment for internal audit services should be charged against
                                         this sub-line
  52.02-52.98    REPORTING COST          All expenses related to the producing of the Reports (typing,
                                         editing, printing, translating, etc). The costs for reports prepared
                                         by subcontractor should be budgeted under the subcontractor
                                         component.
        52.99    Sub-Total               System calculated total

                                         53. SUNDRIES

        53.01    SUNDRIES                Sundry expenses include the cost of all items of a miscellaneous
                                         nature which are not covered under other components. Cables,
                                         telephone and postage charges are incurred directly for the
                                         project if the Government is unable to meet such costs. This
                                         sub-line covers bank charges as well. Annual money allocation
                                         is recommended at the rate of not less than 1.5% of total annual
                                         budget but not more than 5%.

                                         Petty cash funds can be withdrawn from this sub-line with the
                                         further final reallocation on appropriate liens in accordance with
                                         the mode of expenditure occurred.

                                         Modest hospitality expenses (not more than $500 annually)
                                         normally incurred with the concurrence of UNDP project
                                         management by the executing agency, should be budgeted
                                         against this sub-line.
        53.99    Sub-Total               System calculated total

                                       54. DIRECT COSTS

54.01 to 54.98   CO ADMIN. SUPPORT       This line should only be used with GEF/Capacity 21
                                         agreements. This line captures incremental country office costs
                                         resulting from the project.
        54.99    Sub-Total               System calculated total

           59    Component Total         System calculated total

                               70 MICRO-CAPITAL GRANTS

                                   71. MICRO-CAPITAL CREDIT

71.01 to 71.98   MICRO-CAPITAL           Micro-credit grants used for financing credit activities must be
                 CREDIT                  budgeted against this line
        71.99    Sub-Total               System calculated total

                                   72 MICRO-CAPITAL GRANTS

72.01 to 72.98   MICRO-CAPITAL           Micro-capital grants other than for financing credit activities,
                 GRANTS                  such as grants to civil society organizations for advocacy
                                         activities, must be budgeted against this line.
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72.99   Sub-Total         System calculated total

  79    Component Total   System calculated total

  99    BUDGET TOTAL      System calculated total
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                                                                                                  Chapter
                                                                                                        7

       PROJECT MANAGEMENT SYSTEM: PERSONNEL ADMINISTRATION


         PROJECT MANAGEMENT SYSTEM – PERSONNEL ADMINISTRATION

          -      Categories of Personnel and Hiring Policies
          -      Project Management Posts
          -      General Organizational Relationships in the PMO
          -      Recruitment of Project Personnel
          -      Determination of Salary Rates and Compensation Package
          -      Contracts for Services
          -      Other Personnel Guidelines



Table 7.1 Categories of Project Personnel and Hiring Policies

CATEGORY                          TYPE OF PERSONNEL &                   HIRING POLICIES
                                  NATURE OF SERVICES
International Consultants          1. Foreign     experts      and      UNDP shall contract services; contract
                                      professionals                     provisions shall be based on UNDP rules
                                   2. For technical advisory or         and regulations:
                                      training     services      to
                                      strengthen national capacity      - Long-term (6 months or more): fixed-
                                      in skills required for              term contract governed by 200 series
                                      attainment     of     project       of UNDP Staff Rules on benefits and
                                      objectives                          obligations or international ALD
                                                                        - Short-term (6 months or less): Special
                                                                          Service Agreement (SSA) (Refer to
                                                                          Annex 7F for sample format)

United Nations Volunteers         International nationals with skills   More cost-effective way of contracting.
                                  appropriate to local needs and        UNVs are contracted by UNV Bonn
                                  knowledge of local socio-cultural
                                  and political conditions

National UNVs                     Categories of NUNVs:                  Recruitment procedures:
                                  1. Volunteer Specialists: Serve
                                      at national or provincial         1.   Government counterpart submits to
                                      level; with UNDP, other UN             UNDP-CO Request for Volunteer
                                      agencies,          Government,         (Annex 7A)
                                      international & national          2.   UNDP CO is processing the request
                                      NGOs,        community-based           based on established qualification
                                      organizations (CBOs) or                standards and procedures for NUNV
                                      volunteer               sending        recruitment;
                                      organizations;            given   3.   On the basis of UNV Bonn’s
                                      managerial or supervisory              authorization, UNDP-CO issuance
                                      responsibilities      including        contracts to selected volunteers
                                      skills transfer to counterparts   4.   NUNV shall be technically and
                                  2. Field      workers:     Directly        administratively accountable to
                                      attached to NGOs, project              Technical Counterpart Institution;
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                                          offices, local government            shall also comply with reporting
                                          units; carry out hand-on             under the UNV system implemented
                                          implementation activities in         by UNDP
                                          the communities or villages;     (Also see UNV Guideline Note on the
                                          expected to live and work        Use of National UNVs, Bonn, March
                                          closely with peers and           1998)
                                          counterparts

National Professionals               Albanian nationals including non-     UNDP CO shall contract services;
                                     resident nationals; and expatriates   contract provisions shall be based on
                                     living in Albania (hired for          UNDP rules and regulations;
                                     advisory or specialized services      Former government officials/personnel
                                     similar       to      international   may be hired under the project provided
                                     consultants                           they have been out of government service
                                                                           for at least 6 months.

Government           Professional    Government              personnel     A detailed employee shall continue to
Personnel                            temporarily     designated     or     receive his/her salary from the
                                     detailed by the TCI to work with      Government agency
                                     the project management team           There shall be no double compensation to
                                                                           government personnel assigned to the
                                                                           project. No honorarium from UNDP
                                                                           contribution shall be paid to government
                                                                           personnel directly involved in project
                                                                           implementation.

Administrative Support Staff         1.   Professional administrative      UNDP shall contract services; contract
                                          offices and general services     provisions shall be based on UNDP rules
                                          staff (locally recruited)        and regulations
                                     2.   For support services


                                    7.1     Project Management Posts

General policy

All UNDP-financed project professional posts are designed to provide specific skills
necessary in order to build capacity and enhance self-reliance of government institutions.
Such posts aims to provide skills and know-how recognized as essential and not available
within the Government.

Field Offices

Where the project design requires field/area-based management teams, management offices
with minimum basic staffing may also be incorporated in the project management structure at
project preparation stage. It is generally preferred that sufficiently qualified locals in the areas
be considered for the posts following the general guidelines on recruitment. The field
management offices shall be technically and administratively responsible to the central PMO.
Budgets for field office operations shall be coursed through the central PMO which shall
oversee fund administration by the former.

                   7.2     General Organizational Relationships in the PMO
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The UNDP-CO (Programme Officer) shall have overall supervisory responsibility over the
PMO. The PM shall provide substantive leadership in day-to-day project implementation and
shall exercise immediate supervision over all consultants and project personnel. The
international and national professionals shall be directly responsible to the PM and shall work
closely with their counterparts from the Technical Counterpart Agency.

                          7.3    Recruitment of Project Personnel

General Policies

UNDP shall be responsible for recruitment and shall make the final decision on selection of
project personnel. All project personnel, regardless of type or category, shall be recruited
based on the following principles:

       -       Transparency: Recruitment shall be carried out by a Selection Committee in
               accordance with a process which establishes accountability for decisions made
       -       Competitiveness: The recruitment process shall open the job opportunity to as
               many applicants as possible within the set timetable for submission of
               applications; and
       -       Consistency: All decisions shall be based on compliance with the requirements
               of the prescribed recruitment procedures, an established selection criteria and
               on the most suitable match between applicant’s qualifications and the job
               requirements.

Recruitment Process

Recruitment by a UN Agency Serving as Implementing Agency

The UN Agency shall recruit and contract the services of personnel based on its own
guidelines and procedures which shall be consistent with the principles of transparency,
competitiveness and consistency. The Team Leader/experts/specialists and other personnel
shall be recruited based on the approved terms of reference/job descriptions indicated in the
Project Document and in the Implementing Agency Letter of Agreement. The UN Agency
shall secure the clearance of the Technical Counterpart Institution (TCI) prior to hiring. A list
of recruited personnel together with basic background information shall be provided to the
Technical Counterpart Institution, UNDP-CO for record purposes. The personnel policies of
the UN Agency shall be applied to its project personnel.

The recruitment process shall generally involve the following activities:
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Figure 7.1 Recruitment Process


                                 -   A job description shall be developed and approved for each project post at project
                 UNDP                preparation stage (annexed to the Project document); for refinement by NPD or PM
           PREPARES/REFINES          as necessary prior to recruitment.
           JOB DESCRIPTIONS
                                 -   Job description shall indicate: a) job title: b) duty station; c) duration of assignment;
                                     d) arrangements for supervision (immediate supervisor: performance evaluator); e)
                                     qualifications (level of education and training, length and type of practical work
                                     experience at national and/or international level; language proficiency in speaking
                                     and writing, computer proficiency; and specific skills or knowledge required or of
                                     advantage in performing duties and responsibilities; f) duties and responsibilities; g)
                                     outputs to be produced; h) monthly salary and schedule of payment; and i)
                                     arrangements and support to duty travel.

                 UNDP            -   UNDP shall ensure broadest possible circulation of information on job openings
             ANNOUNCES JOB
                                 -   Methods of Announcement:
                OPENING
                                       - Advertisement in at least one newspaper of national circulation and in at least
                                         one local newspaper where it is advantageous to recruit individuals based in
                                         project areas
                                       - Informing individuals included in the UNDP rosters

                                 -   UNDP shall create an ad hoc Personnel Selection Committee; NPD and appropriate
                 UNDP                agency officials as members; PM to be included as soon as recruited
              SELECTION
          COMMITTEE SCREENS      -   The Committee shall establish the evaluation criteria for selection of candidates.
             APPLICANTS &            Criteria shall include i) the appropriateness of educational preparation and training;
          SELECTS CANDIDATES         ii) length and relevance of practical work experience and iii) track record of
                                     performance

                                 -   Representatives from the UNDP-CO shall participate in the review of the short-
                                     listed candidates for the PM, other key project personnel and international posts

                                 -   Screening process shall involve a review of applicant’s curriculum vitae, conduct of
                                     interviews and administration of tests as necessary. Final selection shall be made
                                     from at least three short-listed candidates for each post

                                 -   The PM shall ensure the Selection Committee’s documentation and certification of
          SELECTION COMMITTEE
                                     the selection process
              DOCUMENTS
          SCREENING PROCESS &
                                 -   Documentation, which shall form part of the project files, shall include a list of all
               FORWARDS
                                     applicants for each post, basic information on short-listed applicants; ratings and
          RECOMMENDATIONS TO
                                     justification for selection of candidates
                UNDP-CO
                                 -   UNDP will approve the hiring of selected personnel.

             UNDP APPROVES
             RECOMMENDED
              CANDIDATES         -   The PMO shall submit the list of recruited personnel together with respective CV to
                                     the UNDP-CO for approval and record purposes

          UNDP ISSUES CONTRACT   -   Contract provisions shall be in accordance with UNDP guidelines
             TO APPROVED
               CANDIDATE         -   Both UNDP-CO and PMO should keep copies of contracts for record purposes




Management Arrangements for Project Personnel of UN Agency Serving as Implementing
Agency

The UN Agency’s project personnel shall work under the overall supervision of the PMO.
While the personnel shall be accountable to the UN Agency for the manner in which they
discharge their duties, they shall cooperate closely with the PMO and staff, based on the
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overall directives laid down by the the UN Agency. The UN Agency shall provide
appropriate technical guidance and administrative support to its project personnel.

           7.4     Determination of Salary Rates and Compensation Package

General Policy

The estimated salary rates for consultants and project personnel are determined at project
preparation stage and reflected in the budget annex of the Project Document and UNDP
Proforma cost should be used as a reference point (Annex 7E)

Fees for International Consultants

UNDP-CO shall negotiate the rates for international consultants based on UNDP-established
rates. The rates shall take into account, among others, the level of expertise, relevance and
length of practical work experience and special skills and knowledge brought to the job (refer
to Annex 7D).

Fees for Local Short-Term Consultants

The rates for local short-term consultants shall be comparable to prevailing rates for similar
specialized work within the sector. UNDP shall negotiate individual rates based on the terms
of reference, qualification and salary history.

Rates for Project Personnel

In order to attract individuals of the highest competence to meet requirements of posts, the
rates for managerial and technical project personnel may be comparable to but in no case be
more than the prevailing UNDP maximum rates for its National Officers. Remuneration shall
be determined on a case-by-case basis depending on the job requirements and complexity of
the project, qualifications and salary history.

                               7.5    Contracts for Services

UNDP shall issue appropriate employment contracts based on its internal guidelines. The
following types of contracts may be issued by the UNDP-CO:

          Special Service Agreement (SSA). This shall be used for individuals whose
           services cover a period of up to 11 months. Contract duration of more than three
           months shall require a medical examination by the individual’s own physician.
           Cost of medical examination shall be borne by the individual. The individual shall
           be responsible for obtaining insurance coverage on his own account (Annex 7F)
           and
          Service Contract (SA) This is used for services covering more than 11 months
           (Annex 7G)

       Refer to Annexes 7K for sample of subcontracts.

Options for Contracting
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Contracts of the following nature may be used under the project:

          Output-based – where a lump sum cost for the services is determined based on
           delivery of specific outputs within an agreed upon timetable. Progress payments
           shall be made based on compliance with approved milestones. Output-based
           contracts shall indicate the arrangements for delivery of services, including
           penalty clauses, schedule of delivery of outputs and schedule of payments. This
           type of contracting shall be generally used (Refer to Annex K for sample format
           of an output-based contract for Sub-Contractor group/firm/individual and refer to
           Chapter 11 for further details on subcontracting); and
          Time-based – where a daily or monthly fee is provided for services delivered over
           a period of time. A daily rate shall be applied to engagement of services for a
           period of less than 30 days. A monthly rate shall be applied to services covering a
           period of 30 days and beyond.

Commencement of Actual Services

Services for the project shall be initiated only upon signing of the employment contract. The
PMO shall ensure that continued services beyond the original contract duration are
appropriately covered by a signed new contract or amendment.

Taxation on Contracts

The individual is not exempt from paying taxes due on his earnings from a contract issued by
the UNDP-CO and shall be responsible for fulfilling his tax obligation.

Medical Clearance

For UNDP-CO issued service contracts, medical clearance by a UN-accredited physician
shall be required. Where there is no accessible UN-accredited physician, a local physician,
preferably connected with a university hospital, shall suffice (refer to Annex 7H & 7I).

Contract Extension

Employment contract for project personnel may be renewed yearly within the project life
subject to availability of funds. Contract extension shall be based on performance evaluation
using criteria established by UNDP-CO.

Contract Termination

Employment contracts may be terminated under the following circumstances:

          Nonperformance or highly unsatisfactory performance based on a documented
           performance evaluation
          Personal constraints on the part of the contract holder which prevent continued
           delivery of services
          Circumstances beyond the control of UNDP which necessitate termination of the
           contract for services; and
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          As a matter of course in connection with the closing of the project

Termination of contracts shall be covered with a minimum of 30-day advance written
notification between the contracting parties. UNDP-CO shall ensure that circumstances for
contract termination are fully discussed with the individual in an exit dialogues and that all
requirements for prior technical (including reporting) and administrative (including turn-over
of files and pending work) and financial clearances have been compiled with prior to the
release of the final payment to the individual. A note-to-file on termination of contract(s) for
any of the first three reasons shall be prepared by the PM and shall form part of the project’s
personnel file.

Resignation from Post

Resignations shall be appropriately covered with a minimum of 30-day written advance
notification to UNDP or appropriate project official. The PM shall ensure the conduct of an
exit dialogue and compliance with technical, administrative and financial clearance prior to
release of final payment to the individual (refer to Annex 16B for sample Final Clearance
form).

Work Hours

Project personnel shall render a minimum of 8 hours of service a day or a total of 40 hours a
week from Monday to Friday. The PM shall ensure the presence of skeleton project staff in
the office during peak seasons of staff travel.

Overtime Services

As a general policy, strictly no overtime pay shall be allowed. Urgent work rendered beyond
regular office hours and for which prior clearance of the PM has been obtained, may be
compensated through a corresponding paid time off from work. Compensatory time privilege
shall be taken, with prior notification to the PM, only within the month during which the
extra hours of service were rendered. Extra hours rendered can not be carried out over to the
subsequent months for purposes of availing compensatory time off.

Salary Administration

As a minimum requirements, salary payments to project personnel shall be based on daily
attendance records duly certified by the PM (Annex 7L)

Absences and Leave Benefits

As a general policy for individuals employed under UNDP-issued service contracts and SSA,
absence during the period not yet covered by leave credits shall be considered for salary
deduction.

Performance Evaluation

A performance evaluation shall be conducted for all project personnel at least once a year.
UNDP-CO developed criteria, format and procedures for the conduct and documentation of
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the performance evaluation shall be used for performance assessment (refer to Annex 7J).
Recommendations for contract extension and/or salary increment shall be supported by
performance evaluation results.

Personnel Records

The PM shall ensure the complete and systematic compilation, maintenance and updating of
personnel and project-related records of all project personnel and consultants. At the
minimum, these shall include copies of the initial employment contract, curriculum vitae, job
description, medical certificate, performance rating and renewed contracts.

Staff Participation in Project-related Training

It is generally expected that recruited personnel posses the qualifications and the competence
necessary to efficiently and effectively carry out their work. However, where required by the
project, they may participate in project training to further enhance project implementation.
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Annex 7A:         Request for Volunteer

(Please fill up one form for one volunteer request)

A.       General Information

Please check

                 Domestic                                      New
                 Foreign                                       Replacement

1. Name and Address of Agency/Organization:

                                                                Government
                                                                Non-Government

1.   Title/Location of Project to be Assisted by Volunteer:

2.   Name/Position of Project Manager

B.       Information on Volunteer

Specialization                    No. of Years        of   Age           Sex           Preferred Date of Arrival
                                  Experience




3.   List down functions, duties and responsibilities of the volunteer (include working language/s required)
     (Use additional sheet, if necessary)

C.       Project Profile (use additional sheet if necessary)

4.   Objectives of the Project:

5.   Brief Description:

6.   Implementation Schedule (day-month-year):

7.   Funding Requirements:

     Source:                                           Amount:

9. Status of Project (as of ______ 2001       )

10. List down tools, materials, equipment available for use of the volunteer

11. Facilities/Benefits to be provided free to the volunteer (please check):

      Housing Accommodation                                    Vacation privileges
      Transportation                                           Medical privileges
                                                                Others (specify)
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Prepared by:                        Submitted by:                Date Submitted:




Name, Title and                     Name, Title and          Day-Month-Year
Signature of Project                Signature of the Head
Manager                             Technical Counterpart Agency



ACTION TAKEN BY UNDP:




Brief note on how to fill-in the Request for Volunteer form

Title:            REQUEST FOR VOLUNTEER

Purpose:          This form will be accomplished when requesting for the services of a volunteer and provide
                  information on the project proposed for volunteer assistance and the functions, duties and
                  responsibilities of the volunteer requested.

Responsibility:   Project Manager and Head of TCA

Frequency;        Once

Submission        Upon completion of the form
Date:

Distribution:     1 copy to UNDP
                  1 copy to PMO
                  1 copy to requesting agency

Definition of entries:

Domestic:         Refers to a citizen of Albania who is recruited to perform or participate in a specified
                  development project locally or abroad

Foreign:          Refers to a member of a foreign volunteer organization or individual recruited by UNV Bonn
                  to perform or participate in a specified development project in Albania

New:              If request is for a volunteer to be assigned in a newly identified project

Replacement:      If request is for a replacement of a volunteer whose tour of duty is about to expire
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Annex 7B:          Interview Report Form




APPLICANT_________________FOR POSITION OF_______________________

AGE_____NATIONALITY___________PROPOSED BY_______________________




                                            WORK EXPERIENCE- Favorable 1 2 3 4 5 Unfavorable

                                            Comments:

  Relevance to envisaged position

  Level of experience

  Special skills

                                            EDUCATION-Favorable 1 2 3 4 5 Unfavorable

                                            Comments:
  Relevance to UNDP requirements

  Level of education

  Fields of concentration

  Intellectual abilities

  Languages-                                Favorable 1 2 3 4 5 Unfavorable

     Mother tongue:___________
                                            Comments:
               Exc.* Good Basic None
  English

  French

  Spanish




                                            PERSONALITY- Favorable 1 2 3 4 5 Unfavorable

                                            Comments:

  Motivation, goals
  Leadership
  Realism
  Maturity
  Team spirit
  Adaptability
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   Breadth of interest
   Poise
   Tolerance
   Tact
   Sensitivity
   Vitality
   Appearance
   Health & stamina
   Articulateness
   SUMMARY OF STRENGTHS                                                 SUMMARY OF WEAKNESSES




   OVERALL SUMMARY AND RECOMMENDATIONS                                  Favorable 1 2 3 4 5 Unfavorable




INTERVIEWER___________________DATE_________PLACE______________________


                   Name and title




*Before checking this box, please ascertain that the candidate is fully proficient in drafting.
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Annex 7C:          Request For Personnel Action

TO: PSU
FROM:                                                                                 DATE:


                                 TO BE COMPLETED BY THE REQUESTING OFFICER
 NAME:                                                 CATEGORY:
                                                       Temporary         Support                Personnel
                                                       ________________________________________________
 ADDRESS:                                              Expert/Consultant


 TEL.:                    FAX:
ACTION REQUESTED:                                      PERSONAL HISTORY FORM:                    Attached
_______________________________________________ (for SSA of 6-11 months duration)                Not Required
PURPOSE OF THE APPOINTMENT:                            ________________________________________________
                                                       CURRICULUM VITAE:                          Attached
                                                       (for SSA for up to 6 months duration)     Not Required
 APPROVAL RECEIVED                                     BUDGET CLEARANCE-to be provided by the
                                                                             certifying officer
 FROM:                                                 Allot. Account.Codes:
          Government
                                                       Salary: ___________
          Resident Representative
FORMER UNDP/AGENCY STAFF OR CONSULTANT: Cert. Officer - Signature___________________________
             Yes                    No                             Name________________________________
If yes, name of Agency:
EFFECTIVE DATE:                                        REMARKS
COMPLETION DATE:
NUMBER OF WORKING DAYS:
DUTY STATION (S):
•Including Travel and Briefing Time

APPROVED REMUNERATION:                                 CLEARANCES: (As appropriate)
APPROVED BY:                          DATE:            NAME:
                                                       TITLE:                                  DATE:
REQUESTING OFFICER:
NAME:                                         TITLE:                                DATE:

ORIGINAL-TO PSU
COPY1-TO CERTIFYING OFFICER
COPY2-TO REQUESTING OFFICER
COPY 3-TO PMO
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Annex 7D:         Consultancy Fees Guidelines


       Effective 1 July 1999, the following rates are the basis on which to set the remuneration of consultants
employed in the United Nations.



         :

Level                  Monthly rate (30       Daily rate (under      Weekly rate (daily      Experience
                       days or over US$)      30 days US$)           rate times 5 US$)
ICSC 9-10              $4,000-5,400           $200-270               $1,000-1,350            Three to 5 years
                                                                                             relevant experience
ICSC 10-11             $4,800-8,000           $240-400               $1,200-2,000            Six to 13 years
                                                                                             relevant experience
ICSC 12-Up             $7,800-10,400          $390-520               $1,950-2,600            14     years    plus
                                                                                             relevant experience

         Travel arrangements:

          Where travel is required, air ticket, daily subsistence allowance and terminal expenses will be provided
to individual consultants.
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Annex 7E:          Qualification Criteria and remuneration scale for project personnel/temporary assistance

Title & category         Academic/            Work            Language              Other requirements                                 Duration        Monthly
                         professional         experience                                                                                               remuneration US$
                         background                                                                                                                    (including  income
                                                                                                                                                       tax component)
Project Manager – A      Advanced                             Excellent   written      Reference (required)                           N/A             US$
                         University Degree    Over 15 years   and spoken Englihs       Publications/papers, if any (to be reviewed)
                         (PhD. Equivalent)                                             Computer skills, including MSWord, Excel and
                                                                                        Internet (required)
                                                                                       Work experience with international and local
                                                                                        technical cooperation projects

Project Manager – B      University degrees   5-15 years      Good knowledge of        Reference (required)                           N/A             US$
                         (Master’s                            written and spoken       Computer skills, including MSWord, Excel and
                         equivalent)                          English                   Internet (required)
Project Manager – C      - ditto -            Up to 5 years   Good knowledge of        Reference (required)                           N/A             US$
                                                              written and spoken       Computer skills, including MSWord, Excel and
                                                              English                   Internet (required)
Expert/Consultant – A    Advanced             Over 15 years   Good knowledge of        Reference (required)                           Up     to   3
                         University degree                    written and spoken       Publications/papers, if any (to be reviewed)   months          US$
                         (PhD. Equivalent)                    English                  Computer skills, including MSWord, Excel and   3-6 months      US$
                                                                                        Internet (required)                            Over 6 months
                                                                                       Work experience with international and local                   US$
                                                                                        technical cooperation projects
Expert/Consultant – B    Advanced             5-15 years      Good knowledge of        Reference (required)                           Up     to   3   US$
                         University degree                    English                  Publications/papers, if any (to be reviewed)   months
                         (PhD equivalent)                                              Computer skills, including MSWord, Excel and
                                                                                        Internet (required)
                                                                                                                                       3-6 months      US$
                                                                                                                                       Over 3 months   US$
Expert/Consultant – C    University degree    Up to 5 years   Good knowledge of        Reference (required)                           Up     to   3   US$
                         (Master’s                            English                  Publications/papers, if any (to be reviewed)   months
                         equivalent)                                                   Computer skills, including MSWord, Excel and
                                                                                        Internet (required)                            3-6 months      US$
                                                                                                                                       Over 6 months   US$

Title & category           Academic/           Work            Language             Other requirements                                  Duration       Monthly
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                               professional               experience                                                                                                       remuneration US$
                               background                                                                                                                                  (including  income
                                                                                                                                                                           tax component)
Project Assistant – A          University Degree                               Fluency in written           Computer skills, including MSWord, Excel and   N/A            US$
Administrative/Finance         (Master’s                  Over 5 years         and spoken English            Internet (required)
Assistant – A                  Equivalent)                                                                  Work experience with international and local
                                                                                                             technical cooperation projects

Project Assistant - B          University                 Up to 5 years        Fluency in written           Computer skills, including MSWord, Excel and   N/A            US$
Administrative/Finance         degrees                                         and spoken English            Internet (required)
Assistant – B

Secretarial/Clerical           University degree          Over 5 years         Good English                 Computer skills, including MSWord, Excel and   N/A            US$
positions                      Relevant training                                                             Internet (required)
                                                                                                            Typing test (required)
Driver/Logistics               Secondary                  Over 5 years         Basic English                Driving test (required)                        N/A            US$
                               education                                                                    Police record (check)
                               Driving course                                                               Familiarity with the city and country
                                                                                                            Medical record (required)
Note: The scale is applicable for the full time project personnel only

Remuneration for the temporary services:

Translator                     Interpreters                                        Drivers               Short-term trainers     Short-term     part-   Field workers
                               Consecutive                Simultaneous                                                           time (up to 1 month)
                                                                                                                                 consultants
US$     … per 1.000            US$ … per hour             US$ … per day            US$ … per hour        US$ … per hour          US$ … per hour         US$ … per month –
words (*)                                                 (**)                                                                                          Central Field workers
                               US$ … per day              US$ … per ½              US$ … per day         US$ … per day           US$ … per day          US$ .. per day
                                                          days (**)


(*)      The standard remuneration will be reduced in case of low quality translations
(**)     Subject                                                                                        to                                                                       change
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Annex 7F:         Sample Format for UNDP-issued SSA


SPECIAL SERVICE AGREEMENT N 01-0001-0X
UNDP OFFICE IN TIRANA/ ALBANIA

MEMORANDUM OF AGREEMENT MADE THIS day of ________ between the United Nations Development
Programme (hereinafter referred to as “UNDP”) and ________(hereinafter referred to as “the subscriber”, whose address is
____________________

WHEREAS UNDP desires to engage the services of the subscriber on the terms and conditions hereinafter set forth, and

WHEREAS the subscriber is ready and willing to accept this engagement of service with UNDP on the said terms and
conditions.

NOW, THEREFORE, the parties hereto agree as follows:

1.       STATUS OF THE SUBSCRIBER

The subscriber shall be considered as having the legal status of an independent contractor. The subscriber shall not be
considered in any respect as being a staff member of UNDP.

2.       NATURE OF SERVICES

(a)The subscriber shall perform the services described in the attached Job Description/Terms of Reference.

(b) The Subscriber shall perform the services described hereunder:

         Duties                                                         Work schedule

(c) Itinerary: ________________________

         If an airline ticket is not provided by UNDP, the Subscriber is entitled to reimbursement of airfare for the above
         itinerary upon presentation of used reimbursement of airfare for the above itinerary upon presentation of used
         ticket stubs in an amount not to exceed the economy class fare or excursion fare if applicable. The Subscriber will
         receive a daily subsistence allowance at United Nations authorized base rates when travelling outside
         _________________-. Other necessary travel related expenses may be reimbursable on the basis of UNDP’s
         current practice and authorized rates.

3.       DURATION OF AGREEMENT

This agreement shall commence on the             day of _____ 200__, and shall expire on the satisfactory completion of the
services described above, but not later than the         day of ______ 200_, subject to the provision of Article 9 below.

4.       REMUNERATION

As full consideration for the services performed by the subscriber under the terms of this agreement, and subject to the
provision of Article 9 below, UNDP will pay the subscriber upon certification by _______________ that the services have
been satisfactorily performed, the lump sum of USD. This sum represents all salary, allowances and other payments due to
the Subscriber this Agreement.

Daily Subsistence Allowance for official travel will be paid to the Subscriber by UNDP on the basis of rates established for
UNDP Albania.

In accordance with the above, please provide UNDP the complete banking details to effect payment.

Name of Bank: _________________________               Account Title and No: _________________________




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Address: ______________________________                 Currency of Account: _________________________

No statement of earnings will be issued by UNDP to the subscriber. The subscriber is responsible for any taxes levied on
the money received under this agreement.

5.       ANNUAL LEAVE, SICK LEAVE

         The Subscriber is not entitled to annual leave or paid sick leave.
         ( Annual leave will be accrued at the rate of 1 day per month starting from the seventh working month)

6.       COMPENSATION FOR SERVICE-INCURRED INJURY

Health insurance is the responsibility of the Subscriber. The Subscriber completes a “Statement of Good Health” (The
Subscriber submits a statement from a recognized physician certifying that the individual is in good health, is fit to travel
and has had the required inoculations for the countries to which the individual is to travel). (The Subscriber confirms that
he/she holds adequate health insurance for himself/herself).

In the event of injury, illness or death attributable to the performance of service on behalf of UNDP under the terms of this
agreement and for which no compensation shall be payable to the subscriber or his legal representative under the national
social security scheme, the subscriber shall be eligible for compensation equivalent to that which would be payable under
Appendix D to the Staff Rules of the UN to a staff member of UNDP of similar level; such compensation to be determined
by UNDP on the basis of those Staff Rules.

7.       RIGHTS AND OBLIGATIONS OF THE SUBSCRIBER

(a) The rights and obligations of the Subscriber are strictly limited to the terms and conditions of this agreement.
Accordingly, the Subscriber shall not be entitled to any benefit, payment, subsidy, compensation or pension, except as
expressly provided in this agreement.

(b) The subscriber shall be solely liable for claims by third parties arising from the subscriber’s own negligent acts or
omissions in the course of performing this agreement and under no circumstance shall UNDP be held liable for such claims
by third parties.

(c )The title rights, copyrights, and all other rights of whatsoever nature in any material produced under the provisions of
this agreement shall be vested exclusively in UNDP.

8.       UNPUBLISHED INFORMATION

The subscriber shall not communicate to any person or other entity any unpublished information made known to him by
UNDP in the course of performing his obligations under the terms of this agreement except upon authorization by UNDP.

9.       TERMINATION

Either party may terminate this agreement at any time by giving the other party … days’ notice in writing of its intention to
do so. In the event of such termination the subscriber shall be compensated for the actual account of work performed to the
satisfaction of UNDP on a pro rata basis.

UNDP shall have the right to withhold a reasonable amount of payment due to the Subscriber if UNDP has to incur
additional costs resulting from termination of this agreement by the Subscriber in a manner contrary to the preceding
subsection, or from failure by the Subscriber to complete the terms of this agreement to the satisfaction of UNDP.

10.       ARBITRATION

Any dispute arising out of or in connexion with this agreement shall be submitted to arbitration in New York by a single
arbitrator agreed to by both parties, if attempts at settlement by negotiation will be failed. If the parties are unable to agree
on a single arbitrator within thirty days of the request for arbitration, then each party shall proceed to appoint one arbitrator
and the two arbitrators thus appointed shall agree on a third. Failing such agreement, either party may request the




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appointment of the third arbitrator by the President of the UN Administrative Tribunal. The arbitrator(s) shall rule on the
costs which may be divided between the parties. The decision rendered in the arbitration shall constitute final adjudication
of the dispute.


         IN WITNESS THEREOF, the parties hereto have executed this agreement.


UNITED NATIONS DEVELOPMENT PROGRAMME




   UNDP Resident Representative                                         Subscriber



Allotment Account Number: ________________________________________


Account Number :




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Annex 7G:         Sample Format for Service Contract

No. 2001-0001-0X


UNITED NATIONS DEVELOPMENT PROGRAMME
in ALBANIA
___________________________


MEMORANDUM OF CONTRACT MADE                               (date)            between
the United Nations Development Programme (UNDP), a subsidiary organ of the United Nations, and                        (name)
( hereinafter referred to as "the subscriber") whose address is:
                                                                                                   .
It is noted that UNDP, being part of the United Nations, is not subject to and cannot be obliged to submit to local laws and
regulations on labour-related matters. Therefore this contract spells out all conditions of employment of the subscriber, as it
cannot be supplemented by any other rule or regulation.


1.       DURATION OF CONTRACT

This contract will come into effect on _______(date)_______, and expire on __________(date)____ subject to the
provisions in paragraph 9 below.

This contract carries no expectation of renewal.

2.       TERMS OF REFERENCE

The subscriber agrees to the terms of reference as set forth in the Annex “A” to this contract.

3.       STATUS, RIGHTS AND OBLIGATIONS OF THE SUBSCRIBER

The subscriber is not being considered in any respect as being a staff member of the UNDP (or other UN agency), and is
covered neither by the UN Staff Rules and Regulations nor by the Convention on Privileges and Immunities. The
subscriber recognizes and accepts the fact that the terms of employment are different from those which apply to UNDP
staff members under the UN Staff Rules and Regulations. The rights and obligations of the subscriber are strictly limited to
the terms and conditions of this contract. Accordingly, the subscriber is not entitled to any benefit, payment, subsidy,
compensation or pension from UNDP, except as expressly provided in this contract.

4.       REMUNERATION

As full consideration for the services performed by the subscriber under the terms of this contract , UNDP will pay the
amount of __________________ gross per month worked. No other remuneration, benefits, compensation or subsidy will
be paid under this contract. No social security contributions will be made by UNDP, except as provided for in paragraph 6
below.

Daily subsistence allowance for official travel will be paid to the subscriber by UNDP on the basis of rates established for
this purpose.

5.       ANNUAL LEAVE, SICK LEAVE, HOLIDAYS AND HOURS OF WORK

The relevant conditions will be those which are specified in Annex "B" of this contract, attached.

6.       SOCIAL SECURITY




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<UNDP will make any legally required minimum payments into the national social security plan to meet its obligations as
employer, in order to facilitate coverage of the subscriber for old age and health benefits. The subscriber will meet his/her
own obligations under the mentioned plan.> or <The subscriber is responsible for payment into the national social
security plan and to this end the UNDP will pay to the subscriber, as part of the monthly remuneration, the amount due
from the employer, so as to enable appropriate coverage for old age and health benefits. Accordingly, the UNDP is exempt
from any liabilities regarding the national social security legislation.> or < In lieu of participation of the subscriber in a
national social security plan providing coverage for old-age and health benefits, the subscriber will participate in a private
local social security scheme and a private health insurance scheme. UNDP will make the contributions required directly to
such schemes. The subscriber will be personally responsible for making any contributions due from him/her.> or < The
subscriber has demonstrated that he/she has appropriate coverage for old-age benefits (and/or health coverage) and
UNDP’s obligations will be limited to providing a cash compensation, included in the total remuneration cited in para. 4
above, instead of making contributions to a social security (and/or health) scheme. Further information is provided in the
attached Conditions of Service, Annex B.

7.       INCOME TAX

The subscriber is solely responsible for all taxation or other assessments on any income derived from UNDP. UNDP will
not make any withholding from salary for the purposes of income tax. UNDP is exempt from any liabilities regarding
taxation and will not reimburse to the subscriber any amount.

8.       COMPENSATION FOR INJURY, DISABILITY OR DEATH

In the event of disability or death during the period of service which may be attributable to the performance of services
under the terms of this contract, the subscriber is covered through a global policy, and will be entitled to compensation
only as set forth in the policy, which may be subject to change.

9.       TERMINATION

Either party may terminate this contract at any time giving the other party 14 days written notice in advance of the date of
termination. Notwithstanding any provision of this contract that expressly remains binding upon either party after the
contract expiration, all contract obligations will cease upon termination. The subscriber will only be entitled to reasonable
compensation, equivalent to one week of gross salary for each unexpired month of the contract remaining after the date of
termination, unless such termination is the result of the subscriber's improper conduct or violation of any term of this
contract, in which case the subscriber will not be entitled to either a period of notice or other compensation.

10.      DESIGNATION OF BENEFICIARY

The subscriber has designated            (name)         whose address is
       (address)              as his/her beneficiary for all amounts outstanding to the subscriber’s credit under the terms of
the contract in the event of the subscriber’s death, to the extent that such amounts can legally be awarded to this person
under the laws of the country.

11.      TITLE RIGHTS

The title rights, copyrights and all other rights of whatsoever nature in any material produced under the provisions of this
contract will be vested exclusively in UNDP.

12.      UNPUBLISHED INFORMATION

The subscriber will not communicate to any person, government, or other entity external to UNDP any unpublished
information made known to the subscriber by reason of performing his/her duties under the terms of this contract, except as
required by the assignment or upon authorization by UNDP. This provision will survive the expiration or termination of the
contract.

13.      DISCLOSURE




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The subscriber will disclose to the representative of UNDP any business or professional employment or activity in which
he may be engaged prior to or at any time in the course of the present contract. These activities may not be incompatible
with the performance of services called for in this contract nor represent a real or perceived conflict of interest.

14.      STANDARDS OF CONDUCT

The subscriber will conduct himself/herself at all times with the fullest regard for the purposes and principles of the United
Nations and its Agencies, and in a manner befitting his/her relationship with the United Nations under the contract. The
subscriber may not engage in any activity that is incompatible with those purposes and principles or the discharge of
his/her duties with the government. He/she will avoid any action and in particular any kind of public pronouncement which
may adversely reflect on that relationship , or on the integrity, independence and impartiality which is required by that
relationship. While the subscriber is not expected to give up any national sentiments or political and religious convictions,
he/she will at all times bear in mind the reserve and tact required by reason of his/her relationship with the United Nations
and its Agencies and the government.

The subscriber will not accept any favour, gift or remuneration from any source external to the United Nations without first
obtaining approval from the Secretary-General of the United Nations or the Administrator of UNDP.

15.      SETTLEMENT OF DISPUTES

Any claim or dispute relating to the interpretation or execution of the present contract which cannot be settled amicably
will be settled by binding arbitration. UNCITRAL arbitration rules will apply. Binding arbitration must in all cases be
preceded by a conciliatory procedure under UNCITRAL rules.


By       _____________________                   By ________________________
         Resident Representative                            Subscriber
         on behalf of the United Nations
         Development Programme

Date:                                                           Date:




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Annex 7H:         Medical Clearance Procedures for SSA Recruitment




A. Consultants


1.   Consultants engaged for less than three months who are not required by UNDP to travel outside the country of their
     normal residence, or who are required to travel between points in Europe and North America, shall be required to
     complete a "statement of good health" (See Attachment 1)
2.   Consultants who are required by UNDP to travel outside the country of their normal residence, other than between the
     points in Europe and North America, shall be required to submit a statement from a recognized physician certifying
     that the individual is in good health, is fit to travel and has had the required inoculations for the country or countries to
     which the individual is to travel.
3.   Consultants recruited by country offices and who are expected to travel to other countries must fulfil medical
     requirements as in (2) above.
4.   All consultants over the age of 65, whether travelling or not and those engaged for periods exceeding three months
     (irrespective of age), are required to obtain full medical clearance (by the Director of the Medical Service), involving
     a physical examination by a doctor, and must submit appropriate Chest x-rays. Alternatively, if they have private
     medical insurance, they may sign a waiver (See Attachment 2), exempting UNDP from any responsibility with respect
     to any medical expenses incurred during their assignment - whether service incurred or otherwise.
5.   If the appropriate statement is qualified in any way or cannot be provided, the United Nations Medical Service must
     be consulted. The costs of obtaining statements of good health, inoculations or a full medical examination, should it
     be required, shall be reimbursed by UNDP in accordance with the established reimbursement ceilings.
6.   It is essential that the consultant be medically cleared before the assignment begins, to ensure insurance coverage
     under Appendix D to the Staff Regulations. Appendix D to the Staff Regulations is only applicable for service
     incurred injury. It follows that consultants must have their own medical insurance to cover medical expenses other
     than those that are related to the assignment.

B. Participants in advisory meetings


7.   In issuing invitations to participants in advisory meetings, UNDP assumes that the individual concerned is in good
     health and has no illnesses or disability that might prevent the individual concerned from travelling to or participating
     in the meeting as required by the Organization. It is the responsibility of the participant in an advisory meeting to
     inform UNDP of any such health impediment prior to accepting the invitation and signing the SSA agreement.

C. Temporary support personnel


8.   Individuals engaged as temporary assistance staff for less than three months will be required to sign a Health
     Statement. Those engaged for between three and six months require a certificate of good health from a local
     physician.
9.   Individuals employed for more than six months require medical clearance from the United Nations Medical Service or
     the UN Designated Physician.




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Annex 7I:         Health Statement for Support Staff under SSA




___________________________________________ Date of Birth___________


Project Number and Title_____________________________________________________




I certify that I am in good health and I am able to perform the proposed functions to the best of my knowledge and belief.



____________________

Name of the physician and a stamp
Date:




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Annex 7J:          Performance Evaluation Form for Individuals Hired Under Service Contract/SSA

I. General

1.   Name: ________________________________          2. Contract no. __________

3.   Project no. ___________
                  (if appropriate)

4.   Title: _____________________________

5.   Duty station/organizational unit: _______________________________

6.   Reporting period:   Start date   / /       End date     / /

II. Rate the employee's following attributes:

     1=excellent, 2=very good, 3=satisfactory, 4=requires improvement, 5=unsatisfactory


    Reliability
    Quality of work
    Relations with colleagues
    Initiative
    Technical skills
    Knowledge of required procedures

 Overall performance rating

III Supervisor's overall assessment
    (provide a brief narrative)




Supervisor's signature ___________________                 Staff Member’s signature _______________

Name and title _________________________                       Name and title ___________________________


Date / /                                                       Date / /




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Annex 7K:        Sample Format for Sub-contract


        This AGREEMENT entered into and executed between:

         The ____________________________________________, (_________), government entity existing under the
laws of Albanian Government, with office and postal address at _____________________________ represented herein by
its ______________________________, hereinafter referred to as the “DESIGNATED INSTITUTION”;

and

         The ______________________, with office and postal address at ____________________________, represented
herein by its ________________________, hereinafter referred to as the “CONTRACTOR”.

          WHEREAS, the ___________________________________________________________________ hereinafter
referred to as the “PROJECT”, is a joint undertaking of the Government of Albania and the United Nations Development
Programme (UNDP), with the latter providing the funding for the procurement of goods and services for the PROJECT.

      WHEREAS, the CONTRACTOR is ready and willing to accept this engagement of service with the
DESIGNATED INSTITUTION;

        THEREFORE, the parties hereto agree as follows:

I.      TERMS OF REFERENCE (TOR)

         The CONTRACTOR will provide services under the TOR set forth in Appendix A. Subject to the AGREEMENT
of both parties, the TOR, as well as the terms and conditions of service, may, upon AGREEMENT by both parties, be
modified from time to time, as required in the interest of the PROJECT. The CONTRACTOR will work under the
direction of and will report to the DESIGNATED INSTITUTION in accordance with the timetable of activities in the
TOR.

II.     DURATION OF AGREEMENT

        This agreement will come into effect on ___________________________ and shall expire on
________________________, or upon completion of the deliverables in Article III and subject to the provisions of Article
VI below.

III.    REMUNERATION AND SUBMISSION OF OUTPUTS

         As full consideration for the services performed by the CONTACTOR under the terms of this AGREEMENT, the
DESIGNATED INSTITUTION shall cause the UNDP to pay the sum of US$ _______ to be converted in Albanian Lek
using the exchange rate determined by UNDP, in accordance with the schedule of payment, the submission and acceptance
of the DESIGNATED INSTITUTION of the corresponding outputs set forth below:

                                  Schedule of Payment

        Date                      Output to be submitted             Release of Funds

        ________________          Inception Report                   ______________ %
        ________________          Draft Output                       ______________ %
        ________________          Final Output                       ______________ %

        However, five (5) percent of the total contract cost shall be deducted from the scheduled payment, for every
month of delay in the submission of the Final Output.

IV.     STATUS OF CONTRACTOR




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       The CONTRACTOR shall not be considered in any respect as being staff member of the DESIGNATED
INSTITUTION

V.       RIGHTS AND OBLIGATIONS OF THE CONTRACTOR

         The rights and obligations of the CONTRACTOR are limited strictly to the terms and conditions of this
AGREEMENT. Accordingly, the CONTRACTOR shall not entitled to any benefit, payment, subsidy, compensation or
pension from the DESIGNATED INSTITUTION except as expressly provided in the AGREEMENT.

          The CONTRACTOR will not be exempt from taxation by virtue of this AGREEMENT and is solely responsible
for taxes levied on the monies received under this AGREEMENT.

VI.      RESCISSION

         Either party may rescind the AGREEMENT at any time by giving the other party 30 calendar days notice in
writing of its intention to do so, in which case:

         -        no additional compensation, aside from the 30% released upon the submission and acceptance of the
                  inception report, shall be paid to the CONTRACTOR if less than 50% of the required output, as per
                  Article III, has been submitted to the DESIGNATED INSTITUTION; or
         -        pro-rata compensation my be paid to the CONTRACTOR provided 50% to 75% of the required output,
                  as per Article III, has been submitted to the DESIGNATED INSTITUTION.

                 Should the DESIGNATED INSTITUTION find it necessary to foreshorten the AGREEMENT, the
         CONTRACTOR shall receive reasonable compensation which will not less than one week’s remuneration for
         each remaining month of the AGREEMENT..

         Should dismissal for improper conduct be deemed necessary under Article IX, the AGREEMENT may be
rescinded by the DESIGNATED INSTITUTION with immediate effect upon written notice; no compensation will be
payable in such cases.

VII.     TITLE RIGHTS

         The title rights, copyrights and all other rights of whatsoever nature in any material produced under the provisions
of this AGREEMENT shall be vested exclusively in the DESIGNATED INSTITUTION and UNDP.

VIII.    DISCLOSURE OF INFORMATION

         The CONTRACTOR shall not communicate to any person, government, or other entity external to the
DESIGNATED INSTITUTION any unpublished information made known to the CONTRACTOR by reason of
performing their duties under the terms of this AGREEMENT, except as required by the assignment or upon authorization
of the DESIGNATED INSTITUTION. This provision shall survive the expiration or rescission of the AGREEMENT.

IX.      STANDARDS OF CONDUCT

         The CONTRACTOR shall not engage in any activity that is incompatible with the principles for the proper
discharge of his/her duties with the PROJECT. He/she shall avoid any action and in particular any kind of public
announcement which may adversely reflect on that relationship. While the CONTRACTOR is not expected to give up any
national sentiments or political and religious convictions, they shall at all times bear in mind the reserve and tact required
by reason of their relationship with the DESIGNATED INSTITUTION.

X.       SETTLEMENT OF DISPUTES

         Any claim or dispute relating to the interpretation or the execution of the present AGREEMENT which cannot be
settled amicably shall be settled by binding arbitration. The arbitration panel shall be composed of a person nominated by
the CONTRACTOR, a representative of the DESIGNATED INSTITUTION, and a chairman agreed by the two of them.




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XI.     REPOR TO DELAYS

         The CONTRACTOR shall report in writing to the DESIGNATED INSTITUTION any event or conditions which
may reasonably delay the progress or prevent the completion of the PROJECT as provided for in this AGREEMENT as
soon as the facts became known to the CONTRACTOR.

XII.    FORCE MAJEURE

        The CONTRACTOR shall promptly notify the DESIGNATED INSTITUTION in writing of the occurrence of
any event of force-majeure affecting the AGREEMENT to the extend that would make it impossible or impracticable for
the CONTRACTOR to carry out, in whole or in part, their obligations under this AGREEMENT. As used herein, the term
“force majeure” shall mean events attributable to cause specified hereunder.

        a.   Natural cause, such as earthquakes, typhoons, fl
        b.   oods and epidemics
        c.   Human causes such as revolutions, insurrections, blockages, riots, civil disturbance, court injunctions, strikes
             and other analogous or similar causes.

        Upon giving of such notice, the CONTRACTOR, as of the date of the notice, shall be relieved, subject to the
approval of the DESIGNATED INSTITUTION, from liability for their failure to carry out their obligations due to said
occurrences. In such an event, either party may terminate this AGREEMENT by giving or receipt of notice of termination,
the CONTACTOR shall take immediate steps to bring the work to a close in a prompt and orderly manner and shall refrain
from incurring further expenditures in connection with the PROJECT.

         Upon termination of the AGREMENT pursuant to the foregoing provisions, the DESIGNATED INSTITUTION
shall cause payment to the CONTRACTOR for work or services performed or expenditure incurred up to the day
immediately prior to the date of such termination, upon receipt and acceptance of a complete terminal report covering all
previous involvement under this AGREEMENT.




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       IN WITNESS WHEREOF, the parties hereto have signed this AGREEMENT this __________, in the city of
________________.

FOR:                                         FOR DESIGNATED INSTITUTION:


_____________________________________        _________________________________
                                             AUTHORIZED AGENCY OFFICIAL


Witnesses:

____________________________________         _________________________________




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Annex 7L:                      Monthly Attendance Record

     Name of a project person                                                                                                                                            Month & Year: Prepared:                                                              Leave Monitor: Signature and Date

                                                                                                 Post No:___________________________ Project No:                                                                                                              Telephone No:_____________________
     (Tick whichever applicable by:                         X- for whole day and by ½ - for half of day)
                                                                            Days                 1      2      3   4     5       6       7       8       9       10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
a)   Present at Work
b)   Weekends 1/
c)   Official Hollidays 1/
d)   Official Bussines 1/
e)   Annual Leave
f)   Home Leave 2/ (including travel time)
g)   Family Visit 2/ (including travel time)
h)   Sick Leave (Uncertified)
I)   Sick Leave (Certified) 3/ And

     Medical Evacuation 2/ 3/4/
j)   Maternity Leave
k)   Leave for Medical and Dental check-up 5/
l)   Compensatory Time –Off 6/
m)   Duty Travel7/
n)   Special Leave without Pay 7/
o)   Special Leave with Full Pay 7/
     REMARKS:
     _________________________________________________                                                                                                                  ______________________________                                   ___________
     Programme Manager (Signature and Print Name & Title)                      (Date)                                                                                   (Signature of Staff Member )                                            (Date)


     1/ Asapplicable to duty station (ref. CFO for Holidays and work schedules observed by UNDP Field Office       | Note: The leave monitor should ensure that:

     2/ Processed F10 travel claim to be attached(copy)                                                            |
     3/ Attending Physician`s Certificate of MS 30 to be attached (original)                                       |    (I) This form including all required information) is duly completed and signed before transmiting to DOP and Resident representative;
     4/ Indicate exact period of absence from duty station including dates of travel.                              |   (ii) Top of form is clearly printed.
     5/ Designated Duty Station only.                                                                              |   (iii) A vertical line is drawn on column "31" if the month is questions has 30 days and column "29" and or "30" if it is mmonth of February
     6/ Overtime Reporting Sheet to be attached (copy)                                                             |
     7/ Supporting Authorization to be Attached (copy)




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    Annex 7M:         Request for contract

To be filled in by                                                                        To be filled in by UNDP
Kalyan Pandey Chief Technical Advisor of ALB/01/004                                       in case of incomplete
                                                                                          info

Contract type: Service Contract

Subscriber’s Full Name (Last, First, Middle):


Position within the project:

Home Address and Telephone #:

Duration (from – to):
Is extension expected? Yes

Remuneration:


Schedule of Payment: ( monthly):

Allotment Account and/or Budget Line:

The position was advertised in: _________________________ Date: ___________
The advertisement copy has to be attached)

Selection process and interview took place:
(Selection documentation, i.e. signed Minutes of Interview or justification for waiver
have to be attached)
Terms of Reference are attached:
Certification of the job performed is to be done by: CTA

Authorization is attached:

For Government officials the official release from his/her duties is attached:

For subcontracts the following is also to be attached:
 The CV of team leader (+ copy of passport);
 Names of the team members;
 Budget and Work Plan
 Schedule of installments with the specific date of payment:
 Mode of payment (circle one): bank transfer (detailed info is attached) / bank cheque




       Request for contract has to be submitted two weeks in advance, no retroactive contracts are
        allowed.
       If the information, necessary for processing, is missing the request will be sent back to the
        requesting person.
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Annex 7N:          Leave Application

LEAVE APPLICATION
UNDP: Tirana, Albania

To:
From:

        I hereby wish to submit an application for leave as below:

                                       FROM                     TO                     NO.        OF
                                                                                       WORKING DAYS
Home Leave                             ____________             ___________            _______
(of which Official Business)           ____________             ___________            _______
Procurement Trip                       ____________             ___________            _______
Compensatory Time Off                  ____________             ___________            _______



Mr/Ms ___________________________ has agreed to backstop during my absence.

_________________________________
  Signature of backstopping staff member


_________________________________                     _________________________
  Signature of applicant                                     Signature of Supervisor

Balance of accrued annual leave (______ days) as at _________________



____________________                                          __________________
Leave M onitor (in the project)                                      Date


________________________                                      __________________
CTA of LGP                                            Date



PLEASE NOTE: REQUEST FOR LEAVE SHOULD BE SUBMITTED NO LESS THAN TEN 10 DAYS
PRIOR    TO    APPLICATION,    EXCEPT    IN    CASES    OF    EMERGENCIES.




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Annex 7O:     Decision tree for determining the appropriate contract type




                                                                            Duration


Context               Type of hiring                                        Very brief             Limited          Continuing

                      Local                     Outsourceable               SSA                    SC               SC
Non-project
                                                Integral                    SSA                    ALD              100 series

                      International                                         SSA                    ALD/200 series   100/200 series

                      Local                                                 SSA                    SC
Project
                      International                                         SSA                    ALD/200 series   200 series




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Annex 7P:          Typical jobs performed under each type of employment contract

100 series contract                                   ALD contract                                              Service contract                                  Special Service Agreement
(also 200 series)                                     (300 series)                                              (SC)                                              (SSA)
Employed on core activities of continuing             Work is linked to office’s work for given planning        Work is not part of UNDP’s central work nor       Whole range of short duration
nature, within the office; activities not likely to   period; by reasonable assessment, activities              part of UNDP’s integrated team effort; its        activities, whether in project context
be concluded within 3 years. For career staff,        deemed of limited duration (not to exceed 3, or           within project context (NEX, agency, direct       or within UNDP office, can be for
UNDP invests in individual’s training and             exceptionally 4, years); tend to be specialized           execution, etc) or in UNDP office on work         temporary assistance, consultancies of
career development. Staff to perform at highest       functions; may be for temporary or emergency              that could be outsourced, but for which           various levels; also used for short
levels, high integrity, dedication, commitment,       activitity; international personnel for project           outsourcing is not feasible or desirable under    hiring period prior to regularizing
innovation (200 series: international personnel       activities                                                current circumstances                             financial        and      administrative
for project and other non-core activities)                                                                                                                        arrangements for longer term
                                                                                                                                                                  contract.
Examples: office staff – continuing functions         Examples: computer personnel in office (finite            Examples: cleaning and office maintenance,        Examples: auditing service; language
(such     as    finance,    programme,        and     activities, systems analyst/programmers);                 watchmen, driver, messenger services,             teachers;
administrative staff; continuing secretarial          -                            office support activities    gardeners; housing maintenance;                   -                            lecturers –
functions);                                             – time bound functions (more than 11 months             -                           equipment repair         limited number of days
-                          secretary to Resident        but not continuing)                                       personnel                                       -                            peak
  Representative and other senior managers;           -                            communication or legal       -                           computer                 workload – additional office
-                          senior     staff     in      or resource mobilization adviser                          technicians; data entry personnel                  temporary personnel and short
  programme, operations, or accounts; sector          -                            special thematic and         -                           travel     services      replacements of regular staff
  portfolio managers, RR, DRR, Operations               programmatic advisers (eg. Environment, micro             (ticketing, etc); shipping and customs             (temporary assistance)
  Manager                                               credit, HIV/AIDS, emergencies, post-conflict              clearance personnel                             -                            initial
-                          other     staff      in      resolution)                                             -                           managerial    level      activities in office prior to precise
  established and fundamental units, depending        -                            security adviser (not          personnel to supervise the lower level             determination of funding and post
  on continuity of functions in relation to the         expected to be continuing)                                service contract personnel (in functions that      definition
  programme                                           -                            emergency response or          otherwise would be contracted out)              -                            translation/
-                          field security officer       humanitarian       activities       (support      and   -                           transport      and       interpretation services
-                          dispensary        staff      professional)                                             warehouse personnel, for food programme;        -                            consultants
  (when continuing functions are expected)            -                            secretarial/administrativ    -                           NEX and other            (national or international) up to 11
200 series: international personnel for projects        e support to short tem activities                         national project personnel – administrative        months, for office activities (eg.
and other non-core functions, without                 -                            first-time initiatives (eg     support or professional personnel (NPPP),          Development Support Services)
maximum duration but linked to duration of              computer or reference area)                               11 months or more                                  and       for     project/programme
project or of non-core funding; project experts,      -                            international personnel      - National project personnel on behalf of other      activities
CTAs; JPOs                                              for specific project/programme activities of              UN system agencies
                                                        finite nature, experts, CTAs




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Annex 7R:         Summary comparison of contract types and conditions of services

                        Fixed-term or permanent (100 series)            Activities of Limited Duration (ALD)                 Service contracts                      Special Service Agreement
                        – similar for 200 series                                                                             (SC)                                   (SSA)
   Legal basis          Traditional staff member, contracted under      Personnel governed by the 300 Series Staff           Personnel governed by explicit         Personnel governed by explicit terms
                        100 (or 200) Series Staff Rules                 Rules                                                terms of service contract              of service agreement
   Duration             Indefinite                                      6 months to 3 years; exceptionally 4 years           Over 11 months                         Up to 11 months
   Salary basis         Local scales based on best prevailing local     Broad local salary bands established by reference    Local market conditions for specific   Market conditions for the job
                        conditions; International scale based on best   to local scales. Higher levels set by reference to   job (local UN scales as a reference
                        comparator civil service                        international scale                                  point)
   Taxability   of      Tax-exempt (or subject to reimbursement)        Tax-exempt (or subject to reimbursement)             No exempt; no tax reimbursement)       No exempt; no reimbursement)
   salaries
   Recruitment          Reviewed by A&P Panel/Board                     Reviewed by appropriate panel/board                  Reviewed by ad hoc committee           SSA review committee for contracts
   procedures                                                                                                                                                       over $30,000
   Medical              UN Medical Service                              Own physician (to begin work) and UN Medical         UN Examining Physician                 Over 3 months: own physician
   clearance                                                            Service
   Performance          Full PAR                                        Simplified PAR                                       Abbreviated evaluation                 Abbreviated evaluation
   review
   Annual leave         30 days/year                                    18 days/year (local ALD); 30 days (international     Local law (w. minimum of 12            1 day/month for contract of 6 months
                                                                        ALD)                                                 days/year)                             or more
   Social security:     UN Pension Fund                                 UN Pension Fund                                      National social security or private    None
   Pension/old-age                                                                                                           local scheme or cash compensation
                                                                                                                             for own scheme
   Sickness:            65 days full pay (fixed-term) plus 65 days      24 days full pay per year (maximum                   Local law (w. minimum of 12 days       1 day per month (contracts for 6
   Sick leave           half pay, in 4 years                            accumulation to 65 days)                             per year)                              months or more)
   Maternity            16 weeks                                        16 weeks                                             Local law (16 weeks minimum)           None
   Medical:             Local office staff-UNDP scheme (MIP);           Local ALDs-MIP, International ALDs-UN Plan           National social security or private    None
   Benefits             others – Van Breda, etc                         or cash                                              scheme or cash compensation for
                                                                                                                             own scheme
   Eligibility          S/M and recognized dependants                   MIP: ALD and recognized dependents; Other            Contract holder only                   -
                                                                        plans: ALD appointee only
   Subsidy              S/M and recognized dependants                   Appointee only                                       Contract holder                        -
   Medical              S/M and recognized dependants                   Appointee      (recognized     dependants    for     None                                   None
   evacuation                                                           international)
   Death          and   Coverage for service-incurred injury, illness   Local ALD in country offices – insur. for death      Group plan (non-contributory) for      Group plan (non-contributory) for
   disability           or death (App. “D” of Staff Rules)              and disability (any cause), International ALD –      death and disability (any cause)       death and disability (any cause)
                                                                        App. D. of Staff Rules




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                                                                                                Chapter
                                                                                                      8

                     PROJECT MANAGEMENT SYSTEM: DUTY TRAVEL


                   PROJECT MANAGEMENT SYSTEM – DUTY TRAVEL

               -       General policy
               -       Support to Duty Travel
               -       Operating Guidelines


                          8.1    Project Management System: Duty Travel

General Policy on Duty Travel

All duty travel shall be in accordance with the approved Work and Financial Plan and corresponding
quarterly Travel Plan. All duty travel shall be covered by a Travel Order and Itinerary of Travel duly
approved by PM. The PMO shall develop the required forms for Travel Order and Itinerary of Travel.
A quarterly travel plan should be submitted to UNDP for endorsement by the responsible Programme
Officer/Specialist. A copy of the Travel Plan should be given to the PSU to facilitate further actions
(Annex 8B).

Support to Duty Travel

The project shall fund the cost of the following only: a) round-trip ticket (economy class for air travel,
business or tourist class for sea travel and aircon/non-aircon bus for overland travel); and b) daily
subsistence allowance (DSA) for lodging, meals and local transportation to supplement the resources
of personnel and consultants who carry out project work outside of their duty station provision. All
other expenses shall be for the account of the personnel.

General Policy on DSA

          Minimum Number of Travel hours: 10 hours (including travel time)
          Initial DSA Release: Only up to 80 percent of the applicable DSA rate shall be advanced
           prior to travel. Balance to be paid following liquidation of the cash advance
          One-Day Travel Outside Duty Station: 40 percent of the applicable DSA rate shall be
           provided for one-day travel of more than 10 hours (including travel time) or at least 50 km
           away from the duty station
          Partial DSA Coverage Where certain cost components are paid directly by the project to
           the hotel or caterer, only a percentage of the applicable DSA rate shall be provided to the
           individual
          Ad hoc DSA Rate The project depending on its budgetary situation and frequency of travel
           needs, may establish ad hoc project DSA rates.




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Liquidation of Travel Advances

For DSA charged to the project, proper and full liquidation of travel advances within five working
days from completion of travel shall be a prerequisite to the approval of subsequent travel. The actual
reimbursement of travel expenses will be paid based on the F10 form (Annex 8A) completed by the
traveler. Basic supporting documents shall include transportation tickets and receipts of any other
travel-related costs eligible for reimbursement.

Limit on Travel Claims

The total DSA claims by any project personnel in any one month for local travel in accordance with
the Travel Plan shall not exceed the amount of his/her monthly gross salary.

Support to Foreign Travel

The UNDP policies and guidelines shall apply to provision of support to foreign travel (e.g. study
tours, short-term trainings, fellowships), under the project. Support shall cover only the course/training
fees, most economical and direct airfare, UNDP-specified DSA rate for the country of destination and
airport transfer.

Transportation Allowances

Only transportation related to attendance in project-related workshops, conferences/meetings and
monitoring visits may be reimbursed. Transportation allowance shall not be provided to project
personnel and counterparts for trips involving use of project vehicles. The following arrangements
shall be applied to funding of transportation costs:




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Table 8.1          Guidelines for Transportation Allowance


          TYPE AND MODE OF TRAVEL                                    FUNDING SUPPORT

A.       LOCAL

1.   Bus/plane/train/boat                             Actual cost of round-trip ticket for most economical
                                                      and direct route

2.   Taxi: from residence-airport/terminal-workshop   Actual cost but not more than US$.
     venue and back

3.   Visits to project sites                          Use of project vehicles deployed in the project areas.
                                                      Where not available, actual cost of round-trip ticket


B.       FOREIGN

1.   Plane                                            Actual cost of round-trip ticket at most economical
                                                      and direct route


Travel Report

Project personnel shall submit a brief and concise travel report to the PM within five working days
from completion of travel. The report shall indicate the objective(s) of the trip, major activities
undertaken, outcomes and assessment of degree to which travel objective was attained, notable
highlights for management’s information and issues/problems requiring action, if any. Consultants
will also provide travel reports to PM as appropriate.




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                                     Annex 8A:             Voucher for Reimbursement of Expenses

UNITED NATIONS               NATIONS UNIES                                            VOUCHER FOR REIMBURSEMENT OF EXPENSES
To be completed by Controller    Cheque No.                             Examiner:         Currency:    Voucher No.:

Amount:                            Bank No.                             Approving            Country:           Date:
                                                                        Officer:
TO BE COMPLETED BY CLAIMANT (Please TYPE or PRINT)                                     This space to be filled in by HQ.

PAYEE:
____________________________________________________________________
CATEGORY: ______________

             Called for at CASHIER's office - Indicate your Tel. Ext.                  Duty Station: _______________________

             Mailed to following address:                                              Dept./Div. Or Office: ________________

             Mailed to following BANK A/C:                                             P.T.8 or MOD No.: __________________
             AND
             Payee Advice to be mailed to:                                             Account No. _______________________

               At-              DESCRIPTION OF EXPENSES                                                                         For Financial
  DATE        tach-          Tickets purchased, Terminal expenses,            LOCAL         EXCHAN           U.S.$                Services
              ment                    Telegrammes, Taxis,                    CURRENC          GE          EQUIVALENT
               No.              Authorized excess baggage, etc.                 Y            RATE                           Approved Amount




                                                                     TOTAL TRAVEL ALLOWANCE (See REVERSE SIDE)
I claim the subsistence and terminal expenses in connexion with the journey (as indicated on the
reverse                                                                                                        TOTAL
side hereof), which I certify to have been made as authorized. I further certify that all expenses
claimed                                                                                                          LESS
represent actual disbursements made by me, and dependants indicated, actually travelled as shown.          ADVANCES
                                                                                                            BALANCE
Signature of Claimant: _______________________________________________ Date:                                  DUE UN
____________________                                                                                           IF ANY
                                                                                                                ………
This claim is in conformity with the journey as actually authorized. Payment of subsistence and/or transit
allowances, is approved for all official stopovers and necessary travel time reported by the Claimant on          NET
the reverse side, except as otherwise noted by me.                                                          PAYMENT
                         NO EXCEPTIONS        FINAL CLAIM          FOR EXCEPTIONS,
SEE REVERSE
Signature of
Admin./Certifying
Officer: ___________________________________________________________ Date
______________________

   GENERAL            AMOUNT (U.S.$)          ALLOTMENT                  LIQUIDATION             OBLI
   ACCOUNT              Dr. or Cr.*            ACCOUNT                     AMOUNT                GATI              DESCRIPTION/I.O.V
                                                                                                  ON
                                                                                                 DOCU
                                                                                                 MENT




      Total Debits         Total Credits                                    Total Liquidations




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*Indicate by brackets                 Submit Claim - ORIGINAL plus ONE copy to FINANCIAL SERVICES                                           F.10 (6-86)
E. (over)
                                                                - ONE copy to CERTIFYING OFFICER
                         TO BE COMPLETED BY CLAIMANT                                          ANNUAL LEAVE TO BE                Remarks: List names
                                                                                                    CHARGED:                    and ages of dependants
PLEASE TYPE or PRINT: Extra sheets should be attached with full explanation of lengthy
or involved travel. Submit a separate Form F.10 if eligible dependants have itineraries which
differ from yours. Subsistence may be subject to a reduction after 60 days under Staff         ______________DAYS
Rules. Do you have eligible dependants residing with you at your official duty station?
Yes          No
                                                                                                For Use of Controller
                                                                                                       ONLY
                                                DATE                           Indicate
                                                                               whether                                              COMMENTS OF
 CITY AND COUNTRY                                                              UN or GOVT.                                         ADM/CERTIFYING
            OF                 MODE OF             M                           vehicle was                                             OFFICER
                                                                 HOUR*
    DEPARTURE AND               TRAVEL             O Y                         made avail-                                         REGARDING STOP-
         ARRIVAL                              D N E                            able at DEP                                             OVERS,
                                              A T A                            and/or ARR                                            DELAYS, ETC.
                                              Y H R                            Yes        No
DEP:
ARR:
                               Official
                               Personal
DEP:
ARR:
                               Official
                               Personal
DEP:
ARR:
                               Official
                               Personal
DEP:
ARR:
                               Official
                               Personal
DEP:
ARR:
                               Official
                               Personal

*HOUR should indicate time of departure from or arrival   NOTICE TO TRAVELLER: All receipts for transportation and
                                                          excess baggage, used air transportation stubs and any unused
at airports, piers or railroad stations. Any deviation from
itinerary and standards of accommodation authorized by    transportation tickets and excess baggage coupons (MCO's) must
Form PT. and any stop-over not authorized thereby must    be returned to the United Nations together with the original Travel
be supported by full explanation; otherwise your claim    Authorization (PT.8) and attached to the claim. The Laissez-
may be reduced.                                           Passer should be returned to the Purchase and Transportation
                                                          Service upon completion of the travel.
REMARKS: (List here attached unused tickets by stating ticket                                      Total Travel Allowance in U.S.$
Number and the route covered by the ticket.)                                                       …………
                                                                                                                              Value of MCO's
                                                                                                                                                   U.S.$
                                                                                                                              received:
                                                                                                                              Value of MCO's
                                                                                                                                                   U.S.$
                                                                                                                              used:
                                                                                                                              BALANCE of
                                                                                                                              MCO's to be
                                                                                                                                                   U.S.$
                                                                                                                              Returned to the
                                                                                                                              U.N.:
                                                                                                                              The balance of the MCO's is
                                                                                                                              represented by the following
                                                                                                                              coupon numbers:




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                                                      Annex 8B:      Travel Plan


                                                             Quarter No:


Project No:
Project Title:

        No:         Destination   Name of Personnel   Category      Duration of Trip     Travel mode      Estimated Cost   Budget Line




Prepared by:                                                 Cleared by UNDP

Date:                                                        Date:
Signature:                                                   Signature:

Cc:      UNDP PSU
         PMO




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                                       Annex 8C:      Travel Request/Authorization

                                                                                                                   No:
                                                                                                                  Date:

                NAME:                                                                   CATEGORY (Please circle):
AGENCY:                                                       Staff Member:
PROJECT:                                                      Expert/Consultant/UNV

/NUNV:
PURPOSE OF TRAVEL:                                            Local Contractee:
INCLUDED IN TRAVEL PLAN: Yes                 No

Official Itinerary Requested

From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode
From                              To                           Date                           Travel Mode

DSA Advance Requested:                 Yes                    No

Other advances, please specify:

Traveller’s signagure:     _______________________

I agree that this official travel should be undertaken as detailed above and that funds are available for this purpose.

ACCOUNT No:

TO BE CHARGED:

DATE:

NAME AND SIGNATURE OF PROJECT MANAGER or PROGRAMME OFFICER

Note: This form should be submitted with a minimum of 10 days prior to initial travel date.




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                                  Annex 8D:   Ticket Request

Project No:                                                    Date:
Request No:                                                    T.A. No:
                                                               (copy to be attached):
Booking has been made:      Yes          No

Passenger’s Date




Date:                                         Itinerary




Budget line to be charged
                                                                     Signature of Project Manager




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                                         Annex 8E:           Request for services

To:      PSU
         UNDP, Tirana                                                   Date:

From:                                                                   Project No:
Title:                                                                  Project Title:

                                   Acct./BL. to be charged

It would be appreciated if the following arrangements could be done:

Airport pick-up:

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________


Transportation:


__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________


Hotel booking:

 __________________________________________________________________________________________________
 __________________________________________________________________________________________________
 __________________________________________________________________________________________________


Visas:

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________


Other services (please specify):

 __________________________________________________________________________________________________
 __________________________________________________________________________________________________
 __________________________________________________________________________________________________




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                                                                                                Chapter
                                                                                                      9

      PROJECT MANAGEMENT SYSTEM: PHYSICAL RESOURCE MANAGEMENT AND
                      OTHER MANAGEMENT SYSTEMS


      PROJECT MANAGEMENT SYSTEM – PHYSICAL RESOURCE MANAGEMENT
                   AND OTHER MANAGEMENT SYSTEMS:

               -       Equipment
               -       Vehicles
               -       Policy on Loss of Equipment Items/Vehicles
               -       Disposition of Project Equipment
               -       Other Management Systems


Accountability for UNDP financed and executed Project Resources

The UNDP/PSU will be accountable for the management of UNDP-financed project resources. The
PMO shall maintain an inventory which records the acquisition and disposition of property and
equipment purchased from project funds or paid directly to the supplier by the UNDP-CO or through
an implementing agency or contractor on its behalf.

9.1     Equipment

General Policy on Custodianship

The UNDP-CO shall retain the title to all UNDP-financed equipment until formally transferred or
disposed of. The UNDP-CO shall make sure that the equipment items are insured. Based on mutual
formal agreement by the UNDP-CO and the Technical Counterpart Institution, equipment may be
transferred to the latter at anytime during the life of the project. The recipient institution shall insure
the equipment after the transfer and be accountable to UNDP-CO for the maintenance of inventory
records and proper use and maintenance of all project equipment. All items shall be clearly marked
with the names of the project and the Technical Counterpart Institution.
All equipment shall be used for official purposes only.

Equipment Categories

Equipment provided to the project are categorized as follows:

           Expendable Equipment: These are items valued at the ALL equivalent of less than $400
            such as supplies and small items used for day-to-day operations, for which formal
            inventory records may not be maintained. Still, it is strongly recommended that an
            inventory card may be for each item.

           Non-expendable Equipment: All items that



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       * have a life-expectancy of 5 years or more,
       * valued at the ALL equivalent of $400 or more;
       * or office equipment and software;
       * office furniture; any other items such as: (cameras, calculators, etc).

       These include specialized technical equipment for capacity-building, and items used for day-
to-day project activities such as computers, printers, copiers, office furniture and fixtures, video
equipment, vehicles and other technical equipment. The maintenance of a formal and updated
inventory for these items is strictly required.

       PMO shall maintain a list (Room-by-Room Inventory Card-including information on
       deployment) of the more important or valuable items such as cameras, calculators, fax
       machines, cellular phones, small air conditioning units, etc. Said more important and valuable
       items shall be covered by a Memorandum of Receipt (MR);

Management of non- Expendable Equipment

The Project Manager shall ensure the following actions relative to non-expendable equipment:

          Maintenance of a detailed inventory record of all non-expendable equipment using the
           UNDP-prescribed coding system and format for inventory record (Annex 9CA)
          Marking of each item with project name (includes affixing of UNDP decals)
          Issuance and updating as may be necessary of MRs for items released to personnel
          Maintenance of a list of all items deployed to each field office together with the names of
           individual recipients
          Conduct of an annual (or upon request of PSU) physical inventory of items and
           preparation of a certified physical inventory report as December 31 indicating, among
           others, the location and condition of the equipment
          Ensuring physical safety of items including obtaining fire and theft insurance coverage
          Proper use and preventive maintenance of all equipment, furniture and vehicles.
          Development and implementation of a system of accountability for use of the items
           (including a system for tracking use of portable items such as laptops and charging of
           personal calls on cellular and office telephones to personnel concerned) and
          Prompt reporting and investigation of cases of vehicle accidents, damage, loss or theft of
           items (with appropriate notification to UNDP-CO).

The PM shall ensure the development and implementation of a system for control and requisitioning
of supplies and other expendable items.

Inventory Control and Management

Non-expendable Property.

       Non-expendable property consists of
       * have a life-expectancy of 5 years or more,
       * valued at the ALL equivalent of $400 or more;
       * or office equipment and software;



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       * office furniture; any other items such as: (cameras, calculators, etc).

              At the commencement of the project, the Project Manager should establish a Non-
       expendable Property Ledger (see Annex 9.C) which should be updated regularly, i.e. with
       every purchase of non-expendable property. On an annual basis the Project Manager will
       undertake a physical inventory of the project equipment and prepare an inventory including
       type, make, model and serial number of the project equipment. For vehicles, the inventory
       information should include chassis/engine number, purchase price, make, year of manufacture,
       and registration plate number. UNDP should receive this Inventory Report no later than 15
       December each year.
       Any property from the project and/or UNDP issued on loan to a project staff member should be
       recorded and the record placed in the staff members’ file. A final clearance form is to be
       certified by the project Manager before separation of the staff member to indicate that all
       equipment has been delivered back to the project (Annex.6.9)
9.2    Vehicles


Vehicle Use & Maintenance

The PM shall be responsible for implementing the following general policies on project vehicles:

          All vehicles shall be registered under the name of UNDP until transferred or disposed of
           and shall have comprehensive insurance coverage.
          All vehicles shall bear the UNDP decal
          All vehicles shall be driven only by designated project drivers with official and valid
           driver’s license.
           In exceptional cases involving the absence of an official driver, the PM may authorize a
           project staff with a valid official driver’s license to drive the vehicle, but project staff
           member must be aware of all the legal and financial responsibilities that may derive in case
           of an accident when he/she
          All vehicles shall be used solely for project-related purposes as covered by appropriate trip
           ticket or authorization from the PM
          In the regular course of operation within the PMO/field office base, all vehicles shall be
           parked within the PMO compound outside the regular office hours. In case there is no
           parking available in the Programme/Project office premises, than PMO may provide
           information to FSO and PSU for other available parking areas in the town. These can be
           used only after the official clearance of the FSO.
          Accident, damage or loss shall be promptly reported in writing to the PMO which shall
           undertake necessary investigation. The PMO shall promptly inform the UNDP-CO of the
           incident and actions taken; and
          All vehicles shall be subjected to regular preventive maintenance. Repair work shall be
           done by competitively selected authorized/reputable motor shops. Final payment shall be
           based on a) the project Driver’s certification on the satisfactory performance of repair work
           done; b) Information duly filled in the Vehicle History Records. Replaced parts shall be
           disposed off in accordance with the internal guidelines and procedures of UNDP.

Vehicle Insurance.


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Upon delivery of the equipment to the final destination, insurance coverage terminates. The executing
agency is required to purchase third-party liability insurance locally to cover all vehicles purchased
with UNDP funds. The country office will assist the Project Manager in finding a suitable insurance
company for that purpose.
Vehicle Accidents.

All vehicle accidents, including any injury or death of a third-party, must be promptly reported to the
Project Manager. After notification of the accident, the Project Manager must complete an accident
fact sheet, which is available at the UNDP country office and forward it with all relevant supporting
documents to the country office for review by the Local Property Survey Board and/or determination
of any action to be taken against the personnel in case of negligence or improper behavior.

Petrol Purchase.

It is recommended to use petrol coupons whenever it is possible. The projects are to conduct a survey
of gas stations before submitting a proposal to UNDP/PSU for contracting the supplier.

Record of Petrol Consumption is to be maintained by Petrol Coupon Custodian responsible for use and
monitoring of petrol coupons for the project vehicle. The Petrol Coupon Custodian is to be designated
by PM. He/she maintains the records clearly reflecting the coupons received, used and balance of
coupons left.

Funds for petrol is replenished for the amount being spent. The request for replenishment is to be
supported by Record for Petrol Consumption. The Drivers’ Daily Logs are to be kept in the office of
the project.

                              9.3   Transfer and Disposal of Equipment

Equipment Transfer.

Disposition of project equipment within project life or upon project completion or premature
termination shall be determined through consultation among the UNDP-CO and Technical
Counterpart Institution in bipartite review. However, final decision on the disposition rests with the
UNDP-CO.
Equipment purchased with UNDP funds for DEX projects are the property of UNDP. If the
government or the executing agency wish to obtain ownership of any project equipment, UNDP will
be able to consider a transfer of ownership by the end of project implementation. It should be noted
that the final decision regarding equipment rests with the LPSB recommendations to Resident
Representative.

Theft or loss of Equipment.

In cases of theft of equipment, the Project Manager should prepare a report including:
 The circumstances of theft, when the theft was discovered,
 a police report,



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   a statement from the staff member responsible for the safe-keeping of the equipment and
    assessment of that person’s responsibility and recommendations as to precautions to prevent theft
    in the future.

The report should be submitted to PSU/UNDP for review by the Local Property Survey Board
(LPSB).

Options for Disposition of Project Equipment

The Country office will keep separate records for DEX projects’ equipment, consisting of inventory
records, insurance records, etc6. These records will be kept in the Programme Support Unit (PSU). In
DEX projects, the disposal of project equipment may become a problem since crisis situations may not
make it feasible to sell equipment or transfer it to the government. The easiest disposal option would
be to transfer the equipment to another project financed by UNDP or another United Nations
organization; such transfers may be made with or without a corresponding budget adjustment.

The following options for the disposition of project equipment are available for consideration:




6
see forms in http://intra.undp.org/bfas/pro&gui/forms



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Table 9.1 Options for Disposition of Equipment

              OPTION                         APPLICATION                        REQUIREMENTS
1. Transfer to UNDP Custody for    For equipment in good condition         - Custody period shall not
Subsequent Disposition             which are not considered under            exceed none months
                                   first two options

                                   Possible disposition:                   - Applies to an NGO unless
                                     - Items to be assigned to a new         alternative arrangements are
                                       project which evolves within          agreed on by both parties
                                       the next nine months, or
                                     - Sale of times with proceeds
                                       credited to UNDP TRAC
                                       funds (based on GAM Chapter
                                       III procedures)

2.   Transfer to Another Project   For following cases:                    - Physical inspection by UNDP-
                                     - Pre-mature/unsuccessful               CO
                                       project termination                 - Items still in the name of
                                     - Usefulness of equipment will          UNDP to undergo review by
                                       not be as originally intended or      the LPSB for decision on
                                       foreseen                              modality of disposition
                                     - Upon with successful                - Transfer documents executed
                                       completion, equipment will be         by parties concerned and
                                       more useful to another project        necessary adjustments in
                                       or will result in savings in          respective budgets to
                                       UNDP TRAC funds                       debit/credit adjusted values
                                     - For equipment previously used       - Transfer cost to be borne by
                                       for day-to-day operations and         the Government
                                       still serviceable
3.   Transfer to Government          - Upon successful project             - Physical inspection by UNDP-
                                       completion of anytime during          CO
                                       project life                        - Items still in the name of
                                                                             UNDP to undergo review by
                                     - For specialized technical             the UNDP Local Property
                                       equipment particularly suited         Survey Board (LPSB) for
                                       to the TCI’s line of work or          decision on modality of
                                       function                              transfer/disposal.
                                                                           - UNDP-CO/Technical
                                                                             Counterpart Institution
                                                                             exchange of letters or transfer
                                                                             document
                                                                           - PMO submission to UNDP-
                                                                             CO of an equipment
                                                                             component report reconciling
                                                                             total expenditure under
                                                                             equipment budget with listed
                                                                             value of items

4.   Writing Off                   For equipment no longer saleable        - LPSB to decide on appropriate
                                   or in serviceable condition               modality on writing off

                                   9.4      Other Management Systems


Information Management




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The PMO shall develop a system for information management which facilitates a systematic reporting,
filing, distribution of basic project documents, personnel and financial records, reports and internal
and external communications. File organization shall ensure easy retrieval of complete records and
documents during project management and financial audits and evaluation.

Publications

The PMO shall ensure that all publications generated under the project shall give due credit to the
project and the UNDP as well as other cost-sharing donors as appropriate.

Intellectual Property Rights

The title rights, copyrights and other rights of whatever nature on any material or research and
development outputs produced under the project shall be vested on UNDP. Appropriate provisions in
this regard shall be clearly spelled out in contracts for services.




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                         Annex 9A:     UNDP Non-Expendable Inventory Codes


        The codes of the non-expendable inventory items will be provided by PSU in the report which
will be generated by the CO2001 Procurement Suite.




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                Annex 9B:       Memorandum Receipt for Equipment


SEMI-EXPENDABLE AND NON-EXPENDABLE PROPERTY TIRANA, ALBANIA


 Reference: [Programme/Project No: ]

 I acknowledge to have received from the Office of the Resident Representative of the United Nations
 Development Programme in Albania the following property for which I am responsible, and which will
 be used in the             (Programme/project Title)_________
 ___________________________________________________________________________


                                        Please see attached list




 Received by:     ____________________
                  Name
                  Title
                  Office Address

 Date:            ____________________

 Approved:        ____________________
                  Anna Stjarnerklint
                  Resident Representative
                  UNDP, Tirana, ALBANIA

 Date:            ____________________




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                                 PROGRAMME/PROJECT – [Programme/project No:]
                                         [Programme/project Title:]

                                      List of Equipment and Other Property
                                                     [Date]

             Project No:
             Project Title:

 Inventory   QTY       DESCRIPTION   COST       DATE          PURCHASED        PROPERTY
CODE NO.                                      ACQUIRED          FROM           LOCATION




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                                                Annex 9C:       Non-expendable property ledger /Inventory list


 Project Number and Title____________________________________


          ACQUISITIONS                                                                                    DISPOSITIONS
DATE      DESCRIPTION           SERIAL No.      COST        INVENTORY       Location Person    DATE       EXPLANATION       AMOUNT      DESTINATION
                                                                No.              resp.                                      (IF SOLD)




 National Project Director __________________________                                            Date _____ _____________
                                   Name, Title




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                                                                                            Chapter
                                                                                                 10

                                  FINANCIAL MANAGEMENT


                              FINANCIAL MANAGEMENT:

              -       Financial Accountabilities
              -       Systems of Fund Transfer
              -       Fund Disbursement
              -       Accounting System
              -       Financial Reporting


Mechanisms for expenditure control

UNDP expenditure control policy segregates authority between commitment of funds and approval of
payments, and between approval of payments and disbursements. The control process covers three
different actions:

The authority to commit, approve and disburse project funds is linked to the responsibility and the
accountability for project results. In managing DEX projects, the country office needs to establish an
internal procedure that distributes these actions among different managerial levels of the country
office and within the project.

 the commitment of funds is the action that creates obligations against UNDP managed resources
  (for example a contract, a travel authorization or a memorandum of understanding). In DEX
  projects the commitment document is prepared by the Project Manager in coordination with the
  Programme Support Unit responsible for project travel, procurement, and recruitment of personnel.
  They commit project funds by issuing the corresponding Travel Authorizations, Purchase Orders
  and Personnel Contracts;

 the approval of a payment is an authorization to disburse funds in compensation for services
  and/or goods, or to advance funds against expected services or goods. Under DEX, the Operations
  Manager ensures that the payment is justified and the information is accurate, and approves the
  payment. The Programme Finance Assistant will be involved in this second check before making
  the payment; and

 the disbursement of funds or the “actual payment” or outflow of UNDP managed funds (by check
  or bank transfer, deposit, etc.). Under DEX the Programme Finance Assistant makes the
  disbursement with the preparation of vouchers or cheques, or by making bank deposits.

The Resident Representative should assign the roles in writing to the staff members (through, for
example, an interoffice memorandum). The responsibilities should be assigned at different levels
depending on the amount of funds involved. For example, Deputy Resident Representatives may
authorize the maximum amount, Assistant Resident Representative – Programme, Assistant Resident



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Representative-Operations should approve amounts not exceeding US $3,000, Programme Officers
and Project Managers can authorize expenditures up to US $1,000.

If project operations are decentralized, taking place outside the capital or entrusted to contractors like
NGOs, the Resident Representative may have to issue authorizations to advance funds to local levels
and establish systems to follow up and monitor expenditures. She may request authorization from
BFAS/Treasury to open a bank account for petty cash or imprest funds.

Outstanding obligations recording systems

UNDP is direct expenditure oriented; its accounting system registers a transaction only as programme
expenditure when it occurs or when advances are made.

Since UNDP headquarters cannot issue obligation documents (MODs) the country office will establish
a system to follow up and monitor outstanding obligations. Obligations in DEX originate when a
contract is signed with a contractor or provider of goods or services, or a person is recruited to work in
a project. An obligation also originates when purchase orders are placed and when travel advances are
made. All obligations should be recorded since they will become expenditures in the short-term. A
format to record obligations could be a spreadsheet containing columns to reflect the total amount of
the obligation, the payments and the balance.

The Project Manager should coordinate with the Programme Support Unit of the country office, the
follow up of disbursements against obligations and the maintenance of an up-dated system for
outstanding obligations. One way of following up disbursements against obligations can be through
the Monthly Report on Expenditures. The Country Office PSU that is managing recruitment,
contracting and procurement for DEX projects will follow up and update outstanding obligations
records.

                                     10.1    Financial Accountability

The accountabilities for management, accounting and reporting of project funds are as follows:

Table 10.1 Summary of Financial Accountabilities

     AGENCY               AGENCY                          FINANCIAL                       REPORTING
                      ACCOUNTABLE TO                  ACCOUNTABILITY                  RESPONSIBILITY
1.   Technical           UNDP-CO                   a. Judicious and proper use      Certification on
     Counterpart                                      of UNDP funds received        Combined Delivery
     Institution                                      from UNDP-CO;                 Report prepared by
                                                   b. Maintenance of separate       UNDP-CO for return to
                                                      accounting books and          UNDP-CO within 30
                                                      reports and reporting on      days from receipt
                                                      UNDP funds

2.   UN Agency as           UNDP-CO            a.     Judicious and proper use,     Quarterly Project
     Implementing                                     separate accounting of, and   Delivery Reports to
     Agency                                           reporting on UNDP funds       UNDP-CO within 30
                                                                                    days from end of quarter


3.   UNDP-CO                UNDP HQ            a.     Maintenance of an internal    Monthly Financial
                                                      control system for            Reports to the UNDP HQ



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                                                     monitoring budget and
                                                     financial activities
                                                b.   Ensuring proper fund
                                                     utilization
                                                c.   Ensuring Implementing
                                                     Agency performance under
                                                     contracts and agreements


                                   10.2       Systems of Fund Transfer

The UNDP-CO provides funds in accordance with progress towards achieving results. The UNDP-CO
together with the TCI shall monitor progress made and take steps to prevent or resolve any problems.
Fund transfer may be withheld in cases of suspected fund mismanagement or inadequate reporting.

To facilitate transfer of UNDP funds, the following procedures shall be followed under the DEX
modality:

Table 10.2 Summary of Fund Transfer Procedures

     AGENCY           FLOW OF FUNDS                   REQUIREMENTS               TRIGGER FOR FUND
                                                                                     TRANSFER
1.   Technical      Direct from UNDP-CO to       Separate accounting and        Approved Quarterly
     Counterpart    the institution upon         reporting on UNDP funds        WFP; Financial Forecast
     Institution    receipt of request for                                      to UNDP-CO
                    direct payment from TCI

2.   UN Agency as   Direct from the UNDP        Separate accounting and         Initial: Approved
     Implementing   HQ (Treasury Section to     reporting on UNDP funds         Quarterly WP, Financial
     Agency         the UN Agency)                                              Forecast, approved Letter
                                                                                of Agreement with the
                                                                                UN Agency

                                                                                Subsequent: Quarterly
                                                                                Project Delivery Report
                                                                                to UNDP-CO within 30
                                                                                days from end of quarter

                                       10.3      Fund Disbursement

General Policy on Mode of Disbursement

All UNDP funds shall be provided on the basis of approved Quarterly Workplans and Financial
forecast and through the Request for Direct Payments.

To facilitate fund disbursements, the following steps shall be involved:

                                       10.4      Accounting System

Policy

The PMO shall maintain an accounting system that is kept current and which ensures the following:




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         -        Availability of books and records and presence of internal controls sufficient to ensure
                  the reliability and accuracy of financial information and reporting;
         -        Proper identification of receipt and disbursement of funds and approval of budget
                  categories within the set limits; and
         -        Tracking of direct payments by the UNDP-CO

Figure 10.3 Disbursement Methods
                                                 Direct Payment Method

                                        -   UNDP-CO shall review requests for direct payment on a case-by-case
              PMO Consults with             basis
             UNDP-CO on Request         -   PMO shall ensure:

                                            a.   Appropriateness of budget line against which payment shall be
                                                 charged and availability of resources/allocation in the project
              PMO submits request           b.   Enclosure of supplier’s billing or certification on satisfactory
              for Direct Payment to              delivery of services by the contractor (certification also to cover
                   UNDP-CO                       compliance with technical specifications)

                                        (Refer to Annex 10B for Request for Direct Payment form)
               UNDP-CO reviews
             documentation and pays     -   UNDP-CO shall:
              supplier/contractor on
                 behalf of UNDP             a.   Review completeness of documentation
                                            b.   Verify budget line and project budget


                                            UNDP-CO shall furnish PMO a copy of supplier’s receipt
              UNDP-CO notifies
             PMO on payment made



Accounting Books and Records

The UNDP-CO specifically requires the PMO to maintain a Non-Expendable Property Ledger to
record all acquisitions and disposition of equipment under the project and to track movement of all
items. The PMO shall maintain other accounting books and records (e.g. disbursement vouchers,
journal vouchers, cash receipts book, general ledgers) required for sound financial record-keeping and
internal control in line with generally accepted accounting principles. The UNDP budget lines shall be
used in recording financial transactions using UNDP funds.

                                        10.5     Financial Reporting

Policy

The PMO shall submit timely and accurately the Request for Direct payments and to monitor project
delivery rate.

Basic Financial Report – Combined Delivery Report

The CDR (Annex 10A) which is prepared by UNDP-CO four times a year, reflects disbursements
made by UNDP-CO, UNDP HQ, other UNDP-CO and where applicable, the UN Implementing



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Agency, for the periods ending March 31, June 30, September 30 and December 31. The following
steps shall be taken in the review and certification of the report:

          UNDP-CO’s review of the CDR and subsequent forwarding to the TCI for review
          The TCI/PMO’s review/certification of the final CDR within 30 days from receipt and
           returning of report to the UNDP-CO for filing; or
          The TCI/PMO’s notification to the UNDP-CO of any discrepancies/error; and
          UNDP-CO determining ways of correcting the CDR




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                                         Annex 10A:       Combined Delivery Report (CDR)

          GOVERNMENT OF:                                                    PROGRAMME/PROJECT NO:
          PROGRAMME/PROJECT TITLE:                                          CURRENCY:
          PERIOD

Component         Component/Budget         Annual                             EXPENDITURE
Budget Line        Line Description        Budget     UNDP-   UNDP-   Government  Co-operating    Combined      Available
                                                       CO      HQ                   Agency       Year to Date    budget

10        Project Personnel
11        International Professional
 11-01    International Professional 1
 11-02    International Professional 2
 11-99                Sub-total
12        OPAS
 12-01    OPAS1
 12-02    OPAS2
 12-99                Sub-total
13       Admin. Support Personnel
14       UNV
 14-01    Volunteer 1
 14-02    Volunteer 2
 14-99                Sub-total
15       Duty Travel
16       Mission Cost
17       National Professional
 17-01    National Professional 1
 17-02    National Professional
 17-99                Sub-total

19        Component Total

20        Subcontracts
21        Subcontracts
29        Component Total

30        Training
31        Fellowship
32        Group Training
33        In-service Training
39        Component Total

40        Equipment
 45-01    Consumable office supplies
 45-02    Expendable equipment
 45-03    Non-expendable equipment
 45-04    Operation & maintenance
49        Component Total

50        Miscellaneous
51        Miscellaneous
52        Reports
53        Sundries
59        Component Total

93        Support Costs

99        Total Budgetary Categories




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                                  Annex 10B:         Request for Direct Payment (RDP)

Programme/Project Title:                                         Programme/project number:

The Resident Representative
UNDP
Deshmoret e 4 Shkurtit
Villa 35, Tirana, ALBANIA

Dear Sir/Madam,

In accordance with UNDP requirements, we hereby request that UNDP make the following payment to the payee listed
below:

Amount:            _________________          For: (insert name of the payee/supplier)
Is the activity described in the work plan?            Yes     No
Budget Line to charge: _______________

This payment is being requested to procure/pay for: (short description)

Payment method: Cheque ____________________                      Bank transfer: __________________________
Name: ___________________________________                        Bank: _________________________________
Address: _________________________________                       Address: ______________________________
________________________________________                         ______________________________________
Invoice No. ______________________________                       Account No. ___________________________

Certification:

The undersigned authorized official hereby certifies:

   That this payment has not previously been made
   That this payment is in accordance with the PSD/project document
   That this payment is covered by funds available in the PSD/project budget;
   That this payment is for goods and services that have been delivered to the satisfaction of the Government
   That copies of invoices and other supporting documentation will be available for audit verification

                                                        Yours sincerely,


                                        (Name and signature of authorized official)

                                              PAYMENT CONFIRMATION
                                 (to be completed by UNDP and returned to the TCI/PMO)

Payment details:
Amount paid: ______________________________                  Date: __________________________________
Copies of supporting documents attached (where relevant): __________________________________________


                                                                 Signature:




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                            Annex 10C:       Supporting Documentation for Direct Payment


                      Transactions                                Required Supporting Documents7

Payment of monthly salaries and benefits for NPPP or    Request for Direct Payment (RDP), submitted
support personnel                                       monthly, certifying actual work (full month or partial
                                                        month). A blanket RDP may be made for monthly
                                                        payments for long-term personnel. Relevant PAF and
                                                        contract should be on file with Programme Support
                                                        Unit


Payments to consultants                                 RDP, Consultant’s invoice and copies of tickets,
                                                        certified by the PM for actual work done. Relevant
                                                        PAF and contract should be on file with PSU


                                                        RDP, Completed approved Travel Authorization and
DSA and Travel                                          F10 form with ticket stubs and receipts for
                                                        miscellaneous expenses



Procurement of supplies, services or equipment          RDP, Invoice, three quotations from supplies,
(including fuel, maintenance charges, repairs,          recommendations/justification for selection
insurance, etc)


Contracts for services                                  RDP for full installment payment, certifying work
                                                        done according to contract provisions. Copy of
                                                        Purchase Order. Relevant contract should be on the
                                                        file with the Finance Section.


Translation or editing                                  RDP, Translator’s or Editor’s invoice stating agreed
                                                        upon with UNDP-CO rate per page, number of pages
                                                        and type of translation or editing


Communication (phone and fax)                           RDP, Service provider’s notice




7
    All supporting documentation should be accompanied by a completed Request for Direct Payment Form




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                                                                  Annex 10D:        Petty Cash Ledger

Project Number and Title ______________________________________
                                 For the month of ________ ______

   Date           #                       Payee                                Purpose                           Received           Paid          Balance   B/L
Opening Balance
             10/1
             10/2
             10/3
             [month/receip                                  TOTAL:
             t#]


                            Summary
             B/L                              Amount


TOTAL
Certified by                                                                                           Approved
__________________                                                                              ____________________
Petty Cash Custodian                                                                                   National Project Director

The following type of expenses can not be paid from Petty Cash: Salaries, DSAs, Advance payments to vendors, Stationary
Timing of replenishment: once in a month upon submission of the report for the previous amount the replenishment is for amount of the report submitted




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Table 11.1        Subcontracting Procedures

               STEPS                                              GUIDELINES
1.   Preparation of the Terms of       1.   PMO to prepare the TORs for approval by the UNDP-CO
     Reference                         2.   TOR to indicate:
                                                Background/objective(s) of the consultancy
                                                Scope of work/tasks involved
                                                Required output(s)
                                                Expected timeframe for completion of work
                                                Minimum qualification requirements for the Consultant
                                                Duty station
                                                Coordination arrangements
                                                Logistic and travel support
                                                Debriefing arrangements
                                                Training arrangements (where applicable)

1        Solicitation of Proposals     1.   PMO shall announce through:
                                               Posting in strategic areas within the relevant institutions in
                                                   the sector
                                               Advertisement of invitation for bids at least tow times
                                                   within two weeks in at least 2 newspapers of national
                                                   circulation

                                       2.   All proposals shall indicate the breakdown of costs as follows:
                                                  Rate per work-month for each consultant and staff in case
                                                    of group or firm
                                                  Projected number of travels and costs based on project DSA
                                                    rates; and
                                                  Other costs such as supplies and reproduction/printing costs

3.   Creation of a Pre-Qualification   1.   PMO shall facilitate creation of the PEAC which shall pre-qualify
     Evaluation and Awards                  consultants, evaluate proposals and award contracts
     Committee (PEAC)
                                       2.   For the Evaluation Committee of an Implementing Agency – IA
                                            shall ensure the participation of an agency member not directly
                                            involved in the project

4.   Technical Evaluation of           1.   The PEAC shall set its criteria and rating system for technical
     Proposals                              evaluation of proposals

                                       2.   Minimum criteria with TOR as point of reference shall include:
                                                 Plan of approach and methodology: - substance of the
                                                  proposal as to problem interpretation and required
                                                  solutions; clarity of proposed methods and approaches
                                                  (including applicability to local conditions), completeness
                                                  the proposal and compliance with TOR’s mandatory
                                                  requirements; and proposed timetable for accomplishment
                                                  of work
                                                 Qualifications of consultant(s)/personnel: - general
                                                  qualifications and competence in terms of education,
                                                  training, nature and length of relevant experience,
                                                  responsible positions held in the firm and suitability to the
                                                  tasks

                                       3.   At least three short-listed consultants shall be considered for final
                                            evaluation



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                                                                                                           Chapter 11

                                 INPUT MOBILIZATION:
                        PROCUREMENT OF SERVICES/WORKS AND GOODS


                                      PROCUREMENT OF GOODS:


What is Procurement?

Procurement function includes all actions necessary for the acquisition, by purchase or lease, works,
services or goods.

By which means is procurement executed?

Generally, procurement is executed through the establishment of a Contract. The contract types may be different,
depending on the object to be procured.

A Contract is an agreement between two entities to carry out specific activities, or to provide specific goods or services.
Contract are also called sub-contracts. The contract is normally formulated in one document, although it incorporates
"general conditions" which are attached as an Annex to the contract document. These "general conditions" may not all
apply to each and every contract, but they are included to cover as many situations as possible. The contract is used for all
entities which are private or public and which compete with private entities. Thus, a contract may be used with a public
entity when that entity actually competes with the private sector.

A Memorandum of Agreement is likewise a "contractual document," but without separate general
conditions. It is used, for example, with governmental or parastatal entities in the recipient country,
particularly in the case of sub-units of Government Ministries and Municipalities, when their services
are sought in accordance with specific objectives or requirements in the PRODOC. The situation
giving rise to the requirements is generally non-competitive, and in this sense, the services are unique.
Lease Agreement (Rental) - UNDP may exceptionally pay for rental of office space or other facilities required for project
activities. Such arrangements are handled as a contract. The rental cost of premises other than housing for consultants
should be considered as rental.

The Purchase Order (PO) is the most important document in the procurement process for goods. The
standard UNDP form of the PO is always accompanied with UNDP General Conditions for Purchase
Order. It constitutes the legal agreement for the sale of equipment by the seller to the project
authorities. The seller is bound only by such obligations as are set out in the PO inclusive of its
attachments. It is not possible to enforce against the seller any agreement based on verbal discussion
or exchange of correspondence not incorporated in the PO or its annexes. It is imperative, therefore,
that all actions required to be carried out by the seller are clearly and ambiguously reflected in the PO.


Who has the authority to procure?

The oversight and approval authority for the procurement function is delegated to the Assistant
Administrator, Bureau of Management, as Chief Procurement Officer (CPO) of the organization.



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The CPO has delegated the authority to Resident Representatives, Heads of Bureaux, Heads of units
away from the headquarters and Heads of offices reporting directly to the Administrator for award of
contracts less than USD100,000 without review by the Advisory Committee on Procurement (ACP).
However all the Contracts exceeding USD30,000 which are seeking Waiver for Competitive bidding,
must be referred to the CPO for approval.

The Resident Representatives may further delegate procurement authority to their staff to carry out the
procurement activities. But in going so, the Heads still retain responsibility for the overall efficient and
cost-effective procurement. They need to ensure compliance with all relevant financial regulations,
rules and procurement procedures.

The delegation of procurement authority is granted on an individual basis and requires authorized
officials to adhere to the relevant portions of the concerned instruments. In case of any inconsistency
or ambiguity between them, these instruments must be applied in the following order of priority.

· Article 100 of the Charter of the United Nations;
· UNDP Financial Regulations and Rules;
· The Staff Regulations and Rules of the United Nations;
· The applicable administrative instruments;
· UNDP Finance Manual;
· UNDP Procurement Manual.


The Advisory Committee on Procurement (ACP)

The Advisory Committee on Procurement (ACP) has been established to review and render written
advice to the Assistant Administrator, Bureau of Management, in his capacity as Chief Procurement
Officer (CPO) of UNDP, on UNDP’s procurement actions in respect of the following categories:

   a) Proposed contract which involve commitments to a contractor in respect of a single requisition
      for a specific project or purpose, or a series of requisitions relating to the same specific project
      or purpose, totaling USD100,000 or more in a calendar year (January – December).
   b) Proposed contracts or series of related contracts which involve income to UNDP of
      USD100,000 or more; and any contacts relating to activities where the annual income
      therefrom when aggregated with the estimated annual income from any other contract or
      contracts already made with the same purchaser in the same year amounts to USD100,000 or
      more, provided that contractual arrangements resulting from the recommendations of the
      UNDP Property Survey Board shall not be referred to the ACP.
   c) Any contract amendments or series of amendments which in aggregate have a value of
      USD100,000 or more or which would increase the amount of the contract as previously
      recommended by the Committee by more than 20 per cent, whichever is less.
   d) Proposed contracts of any value which could reasonably lead to a series of related contracts the
      total of which may be USD 100,000 or more; and
   e) Such other matters relating to procurement as may be referred to the Committee by the
      Assistant Administrator, BOM.




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ACP Terms of Reference

The TOR of the ACP are as follows:

   a) Ensure that the proposed procurement action is in accordance with UNDP Financial
      Regulations and Rules, procedures and instructions.
   b) Review the procurement process to ensure that it is fair, competitive, transparent and provides
      best value for money.
   c) Examine the financial and legal implications of the proposed contract.
   d) Review the evaluation process including the environmental impact.
   e) Ensure that appropriate funds are available to cover the cost of the proposed contract.


Local Contracts Committee (LCC)

A Local Contracts Committee should be established by the Resident Representative at every UNDP
Country Office, to render written advice to the Resident Representative on procurement actions. This
may also be established at Headquarters by the Directors of each Bureau/Office to seek advice on the
following procurement actions:

   a) Proposed contracts which involve commitments to a single contractor in respect of a single
      requisition for a specific project or purpose, or a series of requisitions relating to the same
      specific project or purpose, involving commitments totaling from USD30,000 or more in a
      calendar year (January – December).
   b) Any contract amendment, or series of amendments, which in aggregate either has a value
      between USD30,000 to USD99,999 or which would increase the amount of an already
      approved contract, as previously recommended by the Committee, by more than 20 percent,
      whichever is less.
   c) Proposed contracts of any value which could reasonably lead to a series of related contracts,
      the total of which may be USD30,000 to USD99,999.
   d) Such matters relating to procurement as may be referred to the Committee by the Resident
      Representative. This may, if the Resident Representative/Director of the Bureau or Office so
      decides, include contracts or series of contracts totaling less than USD30,000 as well as those
      totaling USD100,000 or more, the latter for which final approval authority rests with the ACP.

LCC Terms of Reference (TOR)

The TOR of the LCC are as follows:

   a) Ensure that the proposed procurement action is in accordance with UNDP Financial
      Regulations and Rules, procedures and instructions.
   b) Review the procurement process to ensure that it is fair, competitive, transparent and provides
      best value for money.
   c) Examine the financial and legal implications of the proposed contract.
   d) Review the evaluation process including the environmental impact.
   e) Ensure that appropriate funds are available to cover the cost of the proposed contract.




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Submission to the LCC

The submitting UNDP official, shall prepare all documentation related to the procurement of goods or
services. The LCC will require, as a minimum, the following documentation:

Completed submission form (see OLPS website, Procurement Forms) containing the minimum
information necessary for a reasonable assessment to be made, and
Copy of the Request for Quotation/or Invitation to Bid (ITB) or Request for Proposals (RFP).


General principles on procurement

All procurement, in all cases and situations will apply and follow and observe the principles of:

Competitiveness,
Integrity
Fairness,
Transparency,
Best value for money,
UNDP best interest,
Cost effective, economy and efficiency.

Steps in the Procurement and Contracting Cycle

The stages in the procurement cycle are:
1) preparation of technical specifications/TOR, selection of vendor/supplier/service provider and
   purchase or contracting;
2) delivery or provision of services, if contracting, receipt and payment;
3) inventory control and management; and
4) transfer or disposal of equipment. The procedures for each of these stages are described below.

Though the same principles are to be applied both for preparation of a Purchase Order and a Contract
for Services, the following outline is divided into two separate “check-lists” to be followed by
projects.


TYPES OF COMPETITION
As a general rule, UNDP uses competition to procure goods, works or services. Such competition may
be as follows:
a) OIC – Open International Competition
b) LIC – Limited International Competition
c) Local or National Competition

Obtaining a price quotation from IAPSO will meet the requirement for international solicitation. The
pre-negotiated prices as documented in the IAPSO price catalogues may serve as the international
benchmark price.




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Open International Competition (OIC)
This is initiated by an advertisement, which invites interested suppliers to request the solicitation
documents from the procuring entity. Use of OIC is appropriate for all contracts exceeding
USD100,000. The media for advertisement may be Development Business, UNDP/IAPSO web site
and/or in a publication of wide international circulation. Development Business is published
fortnightly by the UN and covers all the major procurement notices of the UN system of organizations
and International Financial Institutions.(See FRR 121.03 (e) on advertisement.)
The contract address of the Development Business is as follows:
UN Development Business One United Nations Plaza Room DC1-559 New York, N.Y. 10017, USA
Tel: (1-212) 963-1516 Fax: (1-212) 963-1381 Telex: 422311 UNUI Internet: www.devbusiness.com

Limited International Competition (LIC)
This is limited to a short-list of qualified suppliers selected in a non- discriminatory manner by the
procuring entity from rosters, pre- qualification, expressions of interest and other sources. LIC is
appropriate where OIC is unsuitable for economical and efficient (See FRR 121.03 (e) on direct
solicitation).procurement because of the value, urgent demand or limited availability of the required
goods, works or services.

Pre-qualification:
For complex or specialized goods, works or services, pre-qualification may be undertaken by
advertising. Only suppliers that have been pre- qualified following evaluation are entitled to
participate in further procurement proceedings for the specific requirement.
It is an effective way to limit offers to qualified suppliers. The period between the notice of invitation
to pre-qualify and the latest date for the return of completed applications should not be less than two
weeks.
In order to ensure orderly and easily appraised responses, the standard pre-qualification form may be
used. Evaluation of the suitability of potential contractors should be made based on the basis of the
standard evaluation form. Please see the OLPS website for the respective Procurement Forms.
When the list of selected tenderers has been prepared, successful applicants should be notified and
requested to confirm their intention to submit an offer.
Pre-qualification is a formal method and is recommended for high value and complex civil works and
professional services.

Expression of Interest

Seeking expression of interest is a low cost approach for continuous updating of the supplier database.
An expression of interest should be solicited by publishing a notice in Development Business and/or
your website. The process is very informal, since the selection is based on assessment of the data
provided by the supplier.

Local or National Competition

In the following circumstances, the procuring entity may use local or national competition: (See FRR
121.03 (d) on prudent commercial practice).
a) For Civil Works, if the country has a sufficient good base of suppliers.

General procurement sequence




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The procurement process generally involves three phases:

the Preparation Phase, whereby the requirements for the contract are defined and provisions for
funding are ensured;
the Selection Phase, whereby qualified entities: a) are identified; b) are solicited for proposals or bids
and selected or selected on basis of justifications for directly negotiated contracts; and c) negotiate and
sign a contract/agreement or PO; and
the Administration Phase, which involves monitoring the progress of the contract/agreement/PO,
delivery & customs Clearing arrangements, Receipt and Delivery Inspection Report, addressing
claims, , and evaluating the final product. inventory actions making payments.


Procurement of Works/Services

PREPARATION PHASE
Procurement Plan
UNDP/Project authorities must ensure that the proposed contract activity is provided for in the
PRODOC as well as in the project work and financial plan (WFP). The timing for the contract activity
is important, both in terms of project requirements and time needed to complete the contracting
process. It is also essential that funds are available in the project budget for the years in which the
contract is expected to be executed.

Contents of the Plan
The Procurement Plan includes information such as:

     a detailed list of each item of equipment and routine supplies to be purchased;
     Indicate the procurement method (As far as possible the Standard Procurement Forms should be
      used. A copy of each of them is attached to the annexes of this manual. These forms are
      available in the intranet Intra/UNDP/BOM/OLPS For clarifications or further information
      project staff may consult the PSU/PHRS in CO or the Procurement Advisor, OLPS/BOM.)
     indication whether purchase is to be international or local;
     estimated date of issuance of Purchase Order;
     estimated date of delivery required;
     estimated cost of each item of equipment and the estimated total cost of all such items.

Approval and Monitoring of Procurement Plan
The Procurement Plan, after being approved by UNDP, will be monitored by the project authorities
and UNDP, who are responsible to ensure that:

     proposed items for international and local purchases are in accordance with the Project
      Document and the project WFP;
     estimated costs of equipment and supplies to be purchased, are within the budget line(s) for the
      current budget year.

Modifications to the Procurement Plan
Project authorities must immediately advise UNDP of proposed changes in project activities or
requirements which would affect the procurement plan and/or would change the dollar limit
authorized to the project. Separate authority must be obtained to change items included in the Plan


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and/or to add other items, including those items of an emergency/humanitarian nature or items which
were unexpected.

Ad Hoc Procurement
Requests for ad-hoc procurement of equipment, which are not included in the Procurement Plan must
be submitted to UNDP for expeditious approval.

Terms of Reference
The TOR is a document of critical importance, and thus, should be as clear and precise as the type of
assignment will allow. It eventually becomes an integral part of the contract. The TORs should be
prepared preferably by project management and included in Requests For Proposals to invited entities
to inform them of the contract requirements. The TOR also provides the basis for evaluation once the
contract is completed. Clear and precise TORs limit the chances of disputes and claims over the
contract later.

    TOR, rather than specifications, are used for contracting services. TOR should define the work
    required for a contractor, either to design the equipment to be procured or to provide services.
    TOR should include these elements:
   Detail all tasks the contractor must perform, and specify coordination requirements,
   Specify the data that must be submitted for approval,
   Also define the schedules for initial submission and the review/approval time required,
   Describe all the standards the contractor must fulfill that are applicable to the project,
   If applicable, e detailed list of all data services which will be provided to the contractor by you for
    his use in performing the contract.


Specifications
Specifications (SPECS), rather than, or in addition to TORs, are usually drawn up for works contracts,
and always prepared for attachment to an Invitation to Bid. The SPECS are often extremely detailed,
and include designs and bills of quantities. SPECS must provide prospective entities all the
information for the works since the particulars must be priced. Consultants may be engaged to assist in
the preparation of complex SPECS.


SELECTION PHASE
Identification of entities
Prospective entities are identified for a short list or for a negotiated contract through a UNDP roster of
entities, through open advertisement in business and development publications, through
recommendations received from other UNDP offices or recipient governments, as well as through
direct contact from interested entities.
In regard of the Sourcing of Suppliers, PMO will make sure that the previous and actual roster of the
UNDP CO will be the first reference and step in selecting the supplier. In case the product or service
has not been procured before, PMO will organize a market research. Some of the tools which can be
used for these purposes are:
   Check the United Nations Common Supply Database (UNCSD) maintained by UNDP/IAPSO. For
    details refer to IAPSO web site (www.iapso.org ).
   Check the UNDP Albania Suppliers Database. (Under construction. To be completed by the
    middle of December 2001),


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       Consult with colleagues in other UN organizations who might have purchased a similar product or
        service.
       Check with the Foreign Embassies in the country. (Information can be sources at PRIM).
       Check with Chamber of Commerce of Tirana. (List of the Chamber of Commerce of the Region is
        available with PSU/PHRS),
       Check in the UNDP Albania Intranet (PSU Help -Desk On-line Service).(site under construction)
       Check other procurement related websites,
       Consult the Yellow Pages for local suppliers,
       Consult trade publications, directories, suppliers catalogues and professional journals,


The Shortlist
For contracts less than $30,000, no formal short list is required; however, the project authorities must
be able to demonstrate, for the UNDP’s approval that several firms have been investigated for
competitiveness. Thus, it is recommended that a short list be drawn up for all expected contracts,
unless there is justification for a waiver of competitive bids/proposals.

The short list must be prepared for all contracts of $30,000 or more, unless a negotiated
contract/waiver situation applies .

For procurement actions estimated valued at US$ 30,000 or more and less than US$ 100,000 a
minimum of 5 firms should be shortlisted.

For procurement actions estimated valued at US$ 100,000 or more, 5 to 7 firms (6 to 12 in case of
goods) should be shortlisted. However, more than these minimum numbers of firms should be used
where achieving appropriate competitiveness may so require.

A short list of potential suppliers is based on as many of the following methods as is possible for the
particular case:

         known companies specialized in a certain product expressing interest;
         available roster, cross-referenced against UNCCS (UN Commodity Coding System) product
          codes;
         advertising in Development Business, Procurement Update and other national and international
          publications where appropriate;
         market research; and
         IAPSO's Vendor Roster

The shortlist ideally consists of suppliers from developing countries, including the recipient country;
under-utilized major donor countries and other donor countries. The short list is prepared on the basis
of the following criteria:

         technical and financial capability;
         capability of supplying the required equipment and supplies;
         performance of the supplier and product in countries with conditions similar to the recipient
          country;




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         representation of the supplier in the recipient country or a nearby country resulting in after-sales
          service and a continuing supply of spare parts; and
         ability to provide training and manuals in the appropriate language.

An effort must be made to shortlist a wide variety of companies rather than to rely exclusively on the
same ones time after time. Project authorities are also expected, whenever possible, to shortlist as
many companies as possible in order to adequately test the market.

Whenever the purchase is complex or very large, or it is difficult to identify suppliers for a short list,
advertisements may be placed in Development Business or other appropriate international
publications.

Short lists are cleared by UNDP. The shortlist must be approved prior to issuance of any solicitation
(ITB or RFP)

In regard of the Sourcing of Suppliers PMO will make sure that the previous and actual roster of the
UNDP CO will be the first reference and step in selecting the supplier. In case the product or service
has not been procured before, PMO (or ask PSU to) will organize a market research. Some of the tools
which can be used for these purposes are:
       Check the United Nations Common Supply Database (UNCSD) maintained by UNDP/IAPSO. For
        details refer to IAPSO web site (www.iapso.org ).
       Check the UNDP Albania Suppliers Database. (Under construction. To be completed by the
        middle of December 2001),
       Consult with colleagues in other UN organizations who might have purchased a similar product or
        service.
       Check with the Foreign Embassies in the country. (Information can be sources at PRIM).
       Check with Chamber of Commerce of Tirana. (List of the Chamber of Commerce of the Region is
        available with PSU/PHRS),
       Check in the UNDP Albania Intranet (PSU Help -Desk On-line Service).(site under construction)
       Check other procurement related websites,
       Consult the Yellow Pages for local suppliers,
       Consult trade publications, directories, suppliers catalogues and professional journals,


Background Checks on Contractors and Suppliers
Conducting background checks on all entities proposed for contracts and purchase orders valued at
$100,000 and more prior to award of the contract or purchase order is to ensure that, the entity is
"qualified/responsible" (eg., the entity is legally established, financially solvent and has good standing
in the business community) as distinguished from "technically responsive" (ie., as determined by the
technical evaluation). The extent of such review should be reasonably related to the value of the
contract or purchase order and the nature of the specific case.

Generally, past performance is to be considered in doing background checks before concluding
contracts with any parties. In addition, the past performance of all vendors/contractors/consultants is
also a factor to be considered in future procurement actions (e.g., shortlisting, bid/proposal evaluation,
etc.).




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Solicitations
Once the short list is prepared, either a "proposal" or a "bid" from the short-listed entities is solicited.
The modality depends upon the nature of what is being sought.

In general, a Request for Proposals (RFP) is used when the inputs and/or outputs cannot be
quantitatively and qualitatively expressed at the time the invitation is made, as for example, when
consulting or similar services are sought. A RFP may also be used for purchase of complex goods
when you are not sure of the functional specifications and wish to seek proposals. (see FRR 121.04 on
formal methods of Solicitation).
A RFP leads to the selection of the proposal that is more responsive to the specified requirements,
including price and other factors. Where appropriate, a RFP may indicate that negotiation may be
undertaken with respects to one or more proposals prior to the award of the contract. This method is
recommended for all contracts exceeding USD100,000. This requires adherence to formal procedures.
To achieve best value and avoid any bias, it is essential to develop a detailed list of evaluation criteria.
For guidance refer to the list of generic evaluation criteria for reviewing the technical proposals. This
method calls for two envelopes system i.e. seeking both a technical proposal and a financial proposal
in two separate envelopeswhen the inputs and/or outputs cannot be quantitatively expressed at the time
the invitation is made, as, for example, consulting or similar services are sought. The RFP sets up the
"legal" conditions vis-a-vis the proposed to that specific RFP and includes the specific conditions for
evaluation of the RFP. An RFP may also be used for purchase of equipment when specifications
cannot be precise. The entity is requested to propose the manner in which it will carry out the project
activities to obtain the required project outputs. Through the RFP, UNDP seeks the qualified
contractor who is most responsive to the needs of UNDP and the activity concerned, while at the same
time meets the considerations for economy and efficiency. The proposal containing the lowest price,
therefore, is not determinative for the award of the contract.

An Invitation to Bid (ITB) is normally used whenever the entity is not required to propose technical
approaches to a project activity, nor to offer management or supervision of an activity. ITBs are used
when the entity is to provide its cost requirements to meet precise specifications sought by UNDP.
This is normally the case when UNDP buys goods. It may also apply in works contracts, though the
norm is for proposals in those cases as well. The ITB also sets up the "legal" conditions vis-a-vis the
bidders and includes the specific criteria for evaluation of the ITB. ITB is generally the method for
ensuring economy and efficiency through a pre-specified value-for-money competition among eligible
contractors. Either by open advertising or by inviting bids from a short list of qualified bidders,
UNDP seeks to procure for the lowest price meeting specifications.


Request for Proposals (RFP)
The RFP is a package of information sent to short-listed entities to enable them to submit responsive
proposals. The RFP includes:

The cover Letter of Invitation, which should highlight any special conditions or criteria;
The TOR;
General Terms and Conditions for Professional Services or Works;
UNCITRAL Conciliation and Arbitration Rules.




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The Letter of Invitation
The RFP Letter of Invitation, contains drafting notes; however, certain important matters to bear in
mind include:

Two-envelope System is used, so that the entity submits a technical proposal and a financial proposal.
The technical proposal is evaluated first, and then financial proposal is opened and compared.
Points are Assigned to Selection Criteria, Including Price. The UNDP/project authorities must
prepare the weighting to be given to each aspect of the proposals, including price. Generally, the
technical proposal should be given 70%-80% of the overall score, and 20%-30% given to the financial
proposal.
Clarifications to the RFP, which may be in the form of replies to questions from invited entities,
should be in writing and distributed to all invitees, but without mentioning names of which firm asked
which question(s).
Extensions of the Deadline to Submit Proposals if granted, should be to all invitees and not just to
the entity which requested it. Notification of the extension must be in writing and copied to the file.
Proposals are not necessarily opened publicly.

Bid Opening & Evaluation
All proposals/bids should be maintained unopened in a safe place until the time for opening. It is
always preferable to have a log to record the date and time each package was received, by whom, and
the size of the package (eg, one large envelope, etc).
Proposals do not have to be publicly opened whereas bids in respect of contracts over $100,000 must
be opened publicly.
In either case, a record of the opening should be prepared, indicating: the date and time of the opening;
the entities which were invited; the proposals/bids which were timely received and opened; who was
present for the opening. ( see the form attached in the annexes)
For the two-envelope method, the price proposals generally should not be opened until after the
technical proposals are evaluated. This protects the integrity of the evaluation process.
All proposals are evaluated in accordance with the principles of UNDP. The evaluation results in
recommendations and a request for approval of a proposed award.

Submission of Offers
a) It is the responsibility of offerors to ensure that the offers are the procurement entity by the due
submission date and time, properly signed by authorized signatories.
b) If offers are delivered by hand, offerors should obtain a receipt from the procuring entity recording
the date and time of delivery.
c) Bids/proposals received after the appointed time should be immediately returned, unopened,
accompanied by an explanatory letter giving the date and time of receipt.
See FRR 121.03 (d) on prudent commercial practice.
Receipt of Offers:
a) In the case of a RFQ, the offers can be received by the concerned procurement official directly
either by mail, fax or e-mails.
b) In the case of an ITB or RFP all bids/proposals are to be received by a person, not directly
concerned with the procurement. All bids/proposals are to be time/date stamped upon receipt and
placed in a locked container, such as a cabinet or safe until the bid opening time and date.
c) Access to the container shall be confined to the personnel duty authorized by the head of unit/office.
Where facsimile responses have been approved, the dedicated facsimile machine is to be afforded the




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same degree of control as the postal replies. This may be placed in a separate locked room and access
confined to an authorized person only. All fax offers should be sealed by the authorized person.
d) Any bids or proposals inadvertently opened before the due date are to be brought to the attention of
the head of unit for further action.
e) Unsolicited bids/proposals shall be rejected

Opening of Bids/Proposals (for contracts exceeding USD100,000)
a) All bids should be opened publicly at the time and place specified in the invitation to bid (ITB). It is
recommended that opening should be held on the same day that the offers have to be submitted.
b) All bids received in time should be listed along with an abstract covering the following information:
- Supplier’s name - Bid price - Price of alternative bids, if appropriate - Bid Security (if requested)
The foregoing information should be recorded on a suitable form signed by the opening officer and
appropriate witnesses.
Public opening for proposals received in response to a request for proposal (RFP) is not essential,
since the price proposals cannot be opened without completing the technical evaluation.
c) Suppliers submitting more than one bid or proposal must clearly mark which is the current version.
Where this is not evident, the bid/proposal that gives most advantageous terms to the UNDP is to be
considered.
d) Only those suppliers who are submitting bids may attend the bid opening. The supplier may
authorize the local agent or the concerned Embassy to represent them.


Negotiation with Prospective Contractors
Negotiation with prospective contractors only is permitted if provided for in the RFP (see RFP
Drafting Instructions) and subject to the following conditions:

a threshold for points was established for qualifying technical proposals;
technical proposals that did not attain the required threshold must be eliminated from further
consideration and the corresponding contractor informed;
only the qualifying contractor that attained the best score on its technical proposal may be invited for
negotiations on its price proposal;
all other qualifying contractors that attained ratings above the threshold must be informed that they
may be considered for negotiation if the negotiations with the contractors with better ratings do not
result in a contract;
if it becomes apparent that the negotiations with the contractor invited pursuant to (c) above section
will not result in a contract, negotiations must be terminated by giving written notice to that
contractor;
in case of termination under (e) above, the contractor that attained the second best rating shall be
invited for negotiations as provided for in (c) above; if the negotiations with that contractor do not
result in a contract, the other contractors may be invited for negotiations on the basis of their ranking
until it results in a contract or rejecting of all remaining proposals.

Since any contract award pursuant to an ITB is based on the lowest price meeting specifications,
negotiation generally is not permitted under ITBs, but there always remains the possibility of quantity
and other discounts as in the case of vehicles. Where specifications are not precise enough to allow
comparison on price only and/or negotiation is desired, the RFP modality should be considered.




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Waiver of Competitive Bidding
ITB and RFP are not required when the intended contract is for a value of less than $30,000, provided
that the responsible officers have sought qualified and responsive entities and determined that the price
quotation for the services/goods is competitive in accordance with Financial Rule 114.23(a).
Nevertheless, in these cases:

There is a need to develop a short list of prospective entities;
Quotations should be sought in writing on the basis of supplied TOR or specifications, and should
indicate the time for responding in writing and period for keeping the quoted price open. The process
is less formal than the RFP, but it must be evidenced in the file.

For contracts of $30,000 or more, RFP/ITB may be waived and a contract may be negotiated directly
with an entity when:

prices or rates are fixed pursuant to national legislation or by regulatory bodies;
standardization of supplies, equipment or spare parts renders competition impracticable;
exigencies of service do not permit the delay attendant upon issuance of ITB/RFP; i.e., true emergency
exists - urgent need owing to delay or failure to plan adequately does not qualify for waiver;
the proposed contract relates to procurement from a sole source of supply or services;
the proposed contract relates to the obtaining of services of specific individuals;
ITB or RFP would not give satisfactory results or would not be deemed in the interest of UNDP, as
e.g., a contract is to be extended and changing the entity would not provide continuity in the work.

Direct Contracting
Direct contracting without competition may be used as an appropriate method under the following
circumstances: See FRR 121.05(a) on exceptions to competition.
 The value of the procurement is less than USD2,500. However, the buyer needs to assess that
    he/she is getting the best price.
 There is no competitive market-place for the requirement, such as where a monopoly exists, where
    prices are fixed by legislation or government regulation, or where the requirement involves a
    proprietary product or service.
 There has been a previous determination or there is a need to standardize the requirement.
 The proposed procurement contract is the result of cooperation with other organizations of the
    United Nations system.
 Offers for identical requirements have been obtained competitively within the last twelve months
    and the prices and conditions offered remain competitive.
 A formal solicitation conducted within last 12 months has not produced satisfactory results.
 The proposed procurement contract is to purchase or lease real property.
 There is a genuine exigency for the requirement.
 The proposed procurement contract relates to obtaining services that cannot be objectively
    evaluated.
The Chief Procurement Officer otherwise determines that a formal solicitation will not give
satisfactory results.
For contracts exceeding USD30,000, an advance approval of the Chief Procurement Officer is
necessary before using this method.
For common user items, such as computers, office supplies, vehicles, office equipment, Microsoft
software etc., UNDP/IAPSO has entered into long-term agreements with some suppliers which have




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been approved by the CPO. In such cases, the procuring entity may award the contract directly without
seeking further approval of the CPO.

Awarding of Contracts
"Awarding Contracts" means the act of approval of a selected entity for the required activity.

All contracts valued less than $30,000 can be approved by project authorities after notifying and
receiving clearance by UNDP. In specific cases, project authorities may request UNDP LCC to review
the proposal for award.

For contracts valued at $30,000 or more but less than $100,000, based upon competitive bidding,
project authorities submit the proposal for award to the UNDP LCC, which make a recommendation to
the Resident Representative for award.

For contracts above $100,000, the proposal for award is submitted to UNDP APC for approval.

Contract Negotiations
There are no strict rules as to how to negotiate clauses to be included in the contract. However, it is
important to ensure that the UNDP format is used for a contract. The negotiations should result in
clear understanding by both parties on the joint and several responsibilities in the contract. Moreover,
certain key areas, such as payment terms, performance controls form part of every contract
negotiation; other matters, such as privileges and immunities of the UN, are not negotiable.

UNDP generally uses a form of "fixed price" or "unit price" contract:

A "fixed price" formula contract is used whenever it is possible to determine with sufficient
precision the quantity of services required from the entity.
The "unit price" formula contract should be used only when it is impossible, because of the nature
of the services, to determine with sufficient precision the quantity of services required from the entity.
In this case, the contract sets an amount "not to exceed" for the provision of each component of the
services (e.g., rate per work day, cost of each round-trip, etc).

Issues in Drawing up Contracts
Some points to consider include:

Name and Nature of the Entity being Contracted
Know who is being contracted and who is authorized to act on behalf of the entity. Also, in the event
that the contract results out of a joint proposal (perhaps by one international and one local entity),
UNDP will contract with only one - the lead entity.

Currency of Contract and Currency of Payment
Contracts should be denominated in the currency of the entity's proposal; i.e, US Dollars or the
currency of the country where the entity is incorporated.

In principle, down-payments (on signature, mobilization, etc) should be minimized, and advance
payments of $50,000 or more require the entity to provide a bank guarantee or other suitable security
arrangement. It is important to establish solid milestones for payments in order to protect UNDP from




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losses on advances. Final payment must always be based upon acceptance of a report/completion of
works/delivery of product, etc.

Starting and completion dates, as well as milestones for successful achievement must be spelled out
clearly.

General Terms and Conditions for services or for works as well as UNCITRAL Arbitration Rules
must be attached to all contracts.

Drawing Up and Signing a Letter of Agreement
Because of the nature of an Agreement, typical contractual terms and conditions are not attached. It is
thus very important to eliminate possibilities for disputes by providing as much detail and precision in
the key areas of the Agreement:

The Agreement should detail the Terms of Reference, duration of services and timing.
It is essential to provide a detailed and precise definition of the final product/report, thus avoiding
disputes over quantity and quality at the acceptance and payment stages.
Specify progress reporting/monitoring, including periodicity, format, recipient(s), etc.
List inputs to be provided by recipient organization (entity signing agreement), indicating those
provided free of charge, and costing those which are to be paid at actual cost.
Establish UNDP' maximum financial contribution in US Dollars; Payments are usually made in the
local currency of the recipient organization's country. Installments should be tied to achievement of
milestones.
Require submission of statements of expenditure from the recipient organization.

Advance Payments
"Advance payments" refer to payments effected prior to delivery of goods or performance of ANY
contractual service. Such "advance payments" are distinguished from the case of contracts for services
and works, where the contractual arrangements generally foresee performance of a series of services
scheduled to be completed/delivered at subsequent times within the time frame of the contract.
However, as related to the subject discussed in the present document, the term "Advance payment"
shall indicate a single payment to be made to the contractor/supplier upon signature of the
contract/purchase order prior to commencement of any activity foreseen by the contract. Such advance
payment, if granted, shall normally be recovered prior to completion of contractual obligations in
accordance with a time-schedule stipulated in the contract document.

Advance Payments: "Except where normal commercial practice or the interests of UNDP so requires,
no contract or purchase order shall be made on behalf of UNDP which requires a payment or
payments on account in advance of the delivery of goods or performance of contractual services.
Whenever an advance payment is agreed to, the reasons therefore shall be recorded..."

Examples of reasons that may justify an advance payment are:

  common practice in the industry sector (mainly for works);
  avoidance of excessive financial hardship on the contractor, such as high level of immediate
   expenses;
Examples of activities that may justify an advance payment are:




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   "mobilization costs" (mainly for works), such as purchase/lease of equipment/materials/machines
    and/or transfer of same to the project site; establishment of base camps, transport of personnel to
    the project site;
   "start-up costs" (mainly for services), such as purchase of airline tickets to field individuals, down-
    payments for rental/purchase of inputs such as office premises/equipment on project site;
   "design costs" (mainly for purchasing of special goods/machines; generally denominated "future
    goods") or design adaptation costs related to goods/machines, which require design

"Prefinancing" shall indicate a modality of payment in advance of delivery of every service foreseen
in the contract for the duration of same.

General Conditions and Related Procedures for Advance Payments
Advance payments must not be offered to contractors/suppliers, except in the case of contracts for
works.

Advance payments under other types of contracts may be granted in case:

the contractor/supplier requests the advance payment; and
such request is accompanied by full justification - reason(s) and amount;

Advance Payments for Contracts for Works/Services with Private Firms/Government Entities
In the case of contracts for works, any request for an advance payment is to be documented and
justified by a priced bill of quantities and a program of work approved by the engineer.

In the case of contracts for services, an advance payment is to be justified by documentation
explaining the need for the advance, itemizing the amount requested and indicating the time- schedule
for utilization of such amount. This justification shall be based upon the financial proposal submitted
by the contractor to UNDP, considered an integral part of the financial proposal and kept on record in
the project file.

Contracts with governmental and parastatal entities other than the recipient ministry shall be processed
similarly to contracts with private firms.

Recovery of the Advance Payment

In cases where there are both an advance payment and progress payments, the progress payments shall
be subject to a deduction of the amount accepted for payment until the cumulative amount of the
deductions so effected shall equal the amount of the advance payment. Should the cumulative amount
of the deductions so made be lower than the amount of the advance payment after the date of
substantial completion of the Works, UNDP may deduct the amount equal to the difference between
the advance payment and the cumulative deductions from the payments due after substantial
completion or may recover such amount from the bank guarantee.

Filing and Information System
When starting contracting activities under a project, project authorities/UNDP shall establish a
separate section (eg., a separate folder or suspended file or binder) within the project file for each
particular contract.




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Every contract file shall contain the following:

   Terms of Reference and shortlist
   RFP with the draft contract attached
   Winning Proposal (technical and financial)
   Evaluation Report
   Minutes of negotiations (if any) or relevant correspondence
   Signed original of the submission form to UNDP
   Signed original of the contract (signed by both UNDP and the contractor)
   Correspondence with the contractor, including mail, telex, fax, email, and notes of telephone calls
   Contract Amendments
   Any required progress reports and/or other proof of delivery of milestones as provided for in the
    contract
   A copy of the payment record, once the contract has been completed.

For particularly large contracts, it may be useful to have two contract files, one for the procurement
process and one for contract administration.

                                     Retro/Post-Facto Contracts
Services or works are not to commence until a contractual obligation between UNDP and the entity
has been established either by written "offer" and "acceptance" or by signature of both parties to the
contract. Every effort must be made to avoid a situation whereby services commence prior to the
establishment of a contract.

"Apart from the employment of staff under an authorized staffing table, and consequential
commitments under the Staff Regulations and Rules, no contract, agreement or undertaking of any
nature for an amount to be specified from time to time (currently $2,500) shall be entered into until
funds have been reserved in the accounts, by means of an obligating document...."

Project authorities are expected to make every effort to avoid post-facto or retroactive cases. When
they nevertheless do occur, special approval of UNDP is required before related payments are made. It
must also be understood that the approval, if it is given, does not constitute, and must not be taken as,
the establishment of a precedent or justification for not taking the timely and appropriate action(s).

Procedures for Post-Facto cases
A post-facto situation occurs when no contract or purchase order was issued by UNDP, but the
services have already been rendered or the goods purchased and received.

Project authorities shall prepare a request to UNDP, seeking its approval to either authorize the
payment of the invoice or claim received from the contractor or supplier or, if payment has already
been processed in the field, to accept such charges as valid expenditures.

The request for approval shall:

   fully detail the events leading to the case;
   justify, to the extent possible, the reasons for not having observed;
   demonstrate the reasonableness of the activity, as well as its economy, efficiency and equity;



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   demonstrate that no loss has been incurred by the Organization as a result of contravening the
    Financial Rule and that there are no contractual provisions which would still need to be applied
    (eg., warranties);
   be accompanied by a written statement signed by the "vendor" (i.e. the individual, or the
    authorized person on behalf of the firm/supplier/entity making the claim) indicating that the
    vendor's claim or invoice is final, and payment thereof will constitute a final settlement for the
    case in question (subject to special conditions, if any, that ought to be applied in respect of the
    particular procurement action);
   be accompanied by the vendor's claim or invoice duly certified by the project authorities, so as to
    indicate that the services have been rendered satisfactorily and/or the goods have been received in
    full and good order.

No contract needs to be prepared nor will a purchase order be issued for post-facto cases.

Procedures for Retroactive cases
A retroactive case occurs when no contract or purchase order was issued, but either the
Consultant/Contractor/Supplier has already started rendering services or the goods have been ordered
but not yet delivered. In this case, an invoice/claim may not have yet been submitted, and the request
for approval shall seek to establish a legally binding relationship between UNDP and the
consultant/contractor/supplier so that future payments of invoices/claims can be effected within the
framework of established procedures. If an invoice/claim has already been submitted - for instance for
partial services rendered, the request for approval shall additionally seek approval of payment of said
invoice/claim, or acceptance of the corresponding charge(s).
A request such as the one outlined above for Post-facto Cases is required and must be submitted to
UNDP for approval. In this case, the request for approval shall:

   fully detail the events leading to the case;
   justify, to the extent possible, the reasons for not having observed
   demonstrate the reasonableness of the activity, as well as its economy, efficiency and equity;
   demonstrate that no loss has been incurred by the Organization as a result of contravening the
    Financial Rule and that there are no contractual provisions which would still need to be applied
    (eg., warranties);
   be accompanied by the vendor's invoice/claim, if any, certified by the project authorities, so as to
    indicate that the (partial) services have been rendered satisfactorily.

In this case, approval by UNDP shall constitute award of contract to the consultant/contractor/supplier
pertaining to the case. Thereafter, contracts/purchase orders shall be prepared and issued
expeditiously.


ADMINISTRATION PHASE
Monitoring the contract
UNDP must remain informed of ongoing activities in the field which relate to the contract, as UNDP
is responsible for the overall monitoring of the contract. Wherever possible, UNDP should require
monthly progress reports for all contracts of a relevant duration or size. Such assistance from the
field will permit UNDP to take timely actions, such as pay invoices, consider proposed modifications,
prepare contract amendments when changes to the contract become necessary, or prepare for and
handle disputes and claims.


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Verifying and making payments
UNDP verifies all invoices for payment. Verification involves ensuring that all invoiced items
(services/materials/etc) have been satisfactorily performed/delivered in accordance with the terms and
conditions of the contract. This usually entails confirmation from the project authorities in the field.
Once satisfied, the "Request for Payment" accompanying the invoice is presented to PSU which is
responsible to pass it to the PSU/Finance Unit for processing.

Contract amendments
Amendments usually are required in two (2) situations:

At some point during the implementation of a contract certain aspects of the contract need to be
changed; or
The original contract is executed as planned and it is decided that further related services should be
rendered by the same entity.

Amending a contract involves amending the relevant Terms of Reference to include all the services to
be performed under the totality of the contract (original plus amendment), amending the clauses
relating to cost and payment, and any other relevant provision (e.g., length of contract period).

The amendment is concluded by a cover letter from UNDP offering the amendment (with reference to
the relevant clause requiring all amendments in writing), and attached replacement clauses and TOR
which will cancel and supersede the original provisions.

Contract conclusion/Hand Over

When the contract is completed the PMO ensures for the Final Certificate of Completition to be duly
filled and signed and stamped from both contractual parties. PMO and PSU will organize for the full
handover of the completed works to the last beneficiary.


VAT issues

The contractual commitments will include the cost of the VAT when the executing local companies
are locally registered under VAT registration in Albania. PMO must fully ensure that the invoicing
must be done in compliance with the local laws in force. PSU will follow up for the possible
reimbursable amounts and cases.

PROCUREMENT OF GOODS

PREPARATION PHASE
Procurement Plan
The Procurement Plan is a detailed list of anticipated purchases that is submitted by the project
authorities to UNDP for review and approval. The Procurement Plan is submitted to UNDP
periodically (i.e. every 6 months or other appropriate period for the project), but at least 1 month prior
to the field's first proposed procurement action. Any revisions to the procurement plan must also be
submitted to UNDP.




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Contents of the Plan
The Procurement Plan includes information such as:

   a detailed list of each item of equipment and list routine supply to be purchased
   Indicate the procurement method (As far as possible the Standard Procurement Forms should be
    used. A copy of each of them is attached to the annexes of this manual. These forms are available
    in the intranet Intra/UNDP/BOM/OLPS For clarifications or further information project staff
    may consult the PSU/PHRS in CO or the Procurement Advisor, OLPS/BOM.)

   indication whether purchase is to be international or local;
   estimated date of issuance of Purchase Order;
   estimated date of delivery required;
   estimated cost of each item of equipment and the estimated total cost of all such items.

Approval and Monitoring of Procurement Plan
The Procurement Plan, after being approved by UNDP, will be monitored by the project authorities
and UNDP, who are reponsible to ensure that:

   proposed items for international and local purchases are in accordance with the Project Document
    and the project WFP,
   estimated costs of equipment and supplies to be purchased, are within the budget line(s) for the
    current budget year.

Modifications to the Procurement Plan
Project authorities must immediately advise UNDP of proposed changes in project activities or
requirements which would affect the procurement plan and/or would change the dollar limit
authorized to the project. Separate authority must be obtained to change items included in the Plan
and/or to add other items, including those items of an emergency/humanitarian nature or items which
were unexpected.

Ad Hoc Procurement
Requests for ad-hoc procurement of equipment, which are not included in the Procurement Plan must
be submitted to UNDP for expeditious approval.

Terms of Reference
Generally not applicable

Specifications

    Specifications are used normally for procuring goods or works. Specifications must fully and
    completely state the requirements. They should be generic (neutral) in nature to maximize the
    competition. The specifications may be stated as 'hybrid' or combination of one or more of the
    following types:
   Functional: Which defines the function or duty to be performed. This concentrates on what a
    product is to do. This type of approach is less interested in materials and dimensions.
   Performance: This concentrates on the performance required of an item. To assure the quality, a
    reference to concerned product standards (International i.e. ISO or National) and environmental
    requirements such as energy-star rating, recycled materials, etc should be made.


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   Design Requirements: This calls for providing exact dimensions, materials or characteristics. It
    should be noted that there are many situations where design specifications can cut out competition
    unnecessarily because of differences in engineering practices. For dimensions, the metric system
    should be used.


SELECTION PHASE
Identification of entities
Prospective entities are identified for a short list or for a negotiated contract through a UNDP roster of
entities, through open advertisement in business and development publications, through
recommendations received from other UNDP offices or recipient governments, as well as through
direct contact from interested entities.

In regard of the Sourcing of Suppliers, PMO will make sure that the previous and actual roster of the
UNDP CO will be the first reference and step in selecting the supplier. In case the product or service
has not been procured before, PMO will organize a market research. Some of the tools which can be
used for these purposes are:
   Check the United Nations Common Supply Database (UNCSD) maintained by UNDP/IAPSO. For
    details refer to IAPSO web site (www.iapso.org ).
   Check the UNDP Albania Suppliers Database. (Under construction. To be completed by the
    middle of December 2001),
   Consult with colleagues in other UN organizations who might have purchased a similar product or
    service.
   Check with the Foreign Embassies in the country. (Information can be sources at PRIM).
   Check with Chamber of Commerce of Tirana. (List of the Chamber of Commerce of the Region is
    available with PSU/PHRS),
   Check in the UNDP Albania Intranet (PSU Help -Desk On-line Service).(site under construction)
   Check other procurement related websites,
   Consult the Yellow Pages for local suppliers,
   Consult trade publications, directories, suppliers catalogues and professional journals,


The Shortlist
For contracts less than $30,000, no formal short list is required; however, the project authorities must
be able to demonstrate, for the UNDP’s approval that several firms have been investigated for
competitiveness. Thus, it is recommended that a short list be drawn up for all expected contracts,
unless there is justification for a waiver of competitive bids/proposals.

The short list must be prepared for all contracts of $30,000 or more, unless a negotiated
contract/waiver situation applies .

For procurement actions estimated valued at US$ 30,000 or more and less than US$ 100,000 a
minimum of 5 firms should be shortlisted.

For procurement actions estimated valued at US$ 100,000 or more, 5 to 7 firms (6 to 12 in case of
goods) should be shortlisted. However, more than these minimum numbers of firms should be used
where achieving appropriate competitiveness may so require.



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A short list of potential suppliers is based on as many of the following methods as is possible for the
particular case:

         known companies specialized in a certain product expressing interest;
         available roster, cross-referenced against UNCCS (UN Commodity Coding System) product
          codes;
         advertising in Development Business, Procurement Update and other national and international
          publications where appropriate;
         market research; and
         IAPSO's Vendor Roster

The shortlist ideally consists of suppliers from developing countries, including the recipient country;
under-utilized major donor countries and other donor countries. The short list is prepared on the basis
of the following criteria:

         technical and financial capability;
         capability of supplying the required equipment and supplies;
         performance of the supplier and product in countries with conditions similar to the recipient
          country;
         representation of the supplier in the recipient country or a nearby country resulting in after-sales
          service and a continuing supply of spare parts; and
         ability to provide training and manuals in the appropriate language.

An effort must be made to shortlist a wide variety of companies rather than to rely exclusively on the
same ones time after time. Project authorities are also expected, whenever possible, to shortlist as
many companies as possible in order to adequately test the market.

Whenever the purchase is complex or very large, or it is difficult to identify suppliers for a short list,
advertisements may be placed in Development Business or other appropriate international
publications.

Short lists are cleared by UNDP. The shortlist must be approved prior to issuance of any solicitation
(ITB or RFP)

In regard of the Sourcing of Suppliers PMO will make sure that the previous and actual roster of the
UNDP CO will be the first reference and step in selecting the supplier. In case the product or service
has not been procured before, PMO (or ask PSU to) will organize a market research. Some of the tools
which can be used for these purposes are:
       Check the United Nations Common Supply Database (UNCSD) maintained by UNDP/IAPSO. For
        details refer to IAPSO web site (www.iapso.org ).
       Check the UNDP Albania Suppliers Database. (Under construction. To be completed by the
        middle of December 2001),
       Consult with colleagues in other UN organizations who might have purchased a similar product or
        service.
       Check with the Foreign Embassies in the country. (Information can be sources at PRIM).




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   Check with Chamber of Commerce of Tirana. (List of the Chamber of Commerce of the Region is
    available with PSU/PHRS),
   Check in the UNDP Albania Intranet (PSU Help -Desk On-line Service).(site under construction)
   Check other procurement related websites,
   Consult the Yellow Pages for local suppliers,
   Consult trade publications, directories, suppliers catalogues and professional journals,


Background Checks on Contractors and Suppliers
Conducting background checks on all entities proposed for contracts and purchase orders valued at
$100,000 and more prior to award of the contract or purchase order is to ensure that, the entity is
"qualified/responsible" (eg., the entity is legally established, financially solvent and has good standing
in the business community) as distinguished from "technically responsive" (ie., as determined by the
technical evaluation). The extent of such review should be reasonably related to the value of the
contract or purchase order and the nature of the specific case.

Generally, past performance is to be considered in doing background checks before concluding
contracts with any parties. In addition, the past performance of all vendors/contractors/consultants is
also a factor to be considered in future procurement actions (e.g., shortlisting, bid/proposal evaluation,
etc.).

The Shortlist + Background Checks
Effective competition is generally based on the comparison of at least three technically acceptable
offers.

Accordingly, for purchases of $30,000 or more but less than $100,000, the short list usually consists of
3 to 6 suppliers.

For purchases of $100,000 or more, the short list usually consists of 6 to 12 suppliers.

These are suggested numbers, and the actual number in any given procurement action must be based
on the particular circumstances and should be increased whenever possible and appropriate to ensure
enough valid responses.

A short list of potential suppliers is based on as many of the following methods as is possible for the
particular case:

   known companies specialized in a certain product expressing interest;
   available roster, cross-referenced against UNCCS (UN Commodity Coding System) product
    codes;
   advertising in Development Business, Procurement Update and other national and international
    publications where appropriate;
   market research; and
   IAPSO's Vendor Roster

The shortlist ideally consists of suppliers from developing countries, including the recipient country;
under-utilized major donor countries and other donor countries. The short list is prepared on the basis
of the following criteria:


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technical and financial capability;
capability of supplying the required equipment and supplies;
performance of the supplier and product in countries with conditions similar to the recipient country;
representation of the supplier in the recipient country or a nearby country resulting in after-sales
service and a continuing supply of spare parts; and
ability to provide training and manuals in the appropriate language.

An effort must be made to shortlist a wide variety of companies rather than to rely exclusively on the
same ones time after time. Project authorities are also expected, whenever possible, to shortlist as
many companies as possible in order to adequately test the market.

Whenever the purchase is complex or very large, or it is difficult to identify suppliers for a short list,
advertisements may be placed in Development Business or other appropriate international
publications.

Short lists are cleared by UNDP. The shortlist must be approved prior to issuance of any solicitation
(ITB or RFP)

Background Checks on Contractors and Suppliers
Conducting background checks on all entities proposed for contracts and purchase orders valued at
$100,000 and more prior to award of the contract or purchase order is to ensure that, the entity is
"qualified/responsible" (eg., the entity is legally established, financially solvent and has good standing
in the business community) as distinguished from "technically responsive" (ie., as determined by the
technical evaluation). The extent of such review should be reasonably related to the value of the
contract or purchase order and the nature of the specific case.

Generally, past performance is to be considered in doing background checks before concluding
contracts with any parties. In addition, the past performance of all vendors/contractors/consultants is
also a factor to be considered in future procurement actions (e.g., shortlisting, bid/proposal evaluation,
etc.).

Solicitations
Purchases of $1,000 or more but less than $30,000
At least three responsive quotations or proposals are required for all contracts exceeding $1,000, in
order to demonstrate the competitiveness of the process.

Written contracts or written purchase orders shall be used for every purchase from a single supplier for
an aggregate amount of at least starting from $2,500 for one or more items.

The outlined purchasing process is as follows:

Preparation of technical specifications, approved by the Project Manager.
 Preparation of a shortlist with 3 to 6 possible suppliers.
 In establishing shortlists, it is advisable to use rosters of suppliers.
 Invitation of possible suppliers to quote prices.
 Reception of quotations within a deadline set by Project/UNDP.




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   Project, evaluates bids, comparing prices, delivery dates, guarantees, etc. according to criteria
    established previously.
   Award of contract to the best offer. Project may ask the UNDP Local Contracts Committee to
    submit a recommendation for award.
   PSU/UNDP places purchase order.
   Supplier's acceptance of the purchase order.
   Delivery of equipment or supplies. The PMO certifies receipt and acceptance of goods.
   The PMO receives official invoice and sends the invoice and receipt report to PSU/UNDP, for
    payment. It must be agreed that full payment will be subject to receipt and acceptance of goods.
   Payment to supplier.
   Registry in Project's Property Ledger for Goods and Equipment.


Purchases of $30,000 or more but less than $100,000
 Preparation of technical specifications, approved by the project authorities, or the person on whom
   he has delegated authority.
 Preparation of a short list with 6 to 12 possible suppliers. Competitive international and national
   suppliers must be included, seeking fairness. It is advisable to have a roster of registered suppliers.
 Invitations To Bid (ITB) are sent to all of the companies on the shortlist.
 Receipt of bids, submitted in a sealed envelope, within a deadline set by Project/UNDP.
 On the specified bid opening date, the bids are opened in the presence of at least one witness and
   immediately draws a Bid Opening Report is prepared. The report lists the invited bidders, those
   who responded, declined and those who did not reply at all and records the total bid of each bidder
   in the dollar equivalent (if the bid is made in a foreign currency).
 Project evaluates bids according to criteria established previously.
 Appropriate documentation for submission to UNDP's Local Contracts Committee, accompanied
   with the shortlist, bid analysis and recommendation for award, is prepared.
 UNDP's Local Contracts Committee makes a recommendation for award. If the Resident
   Representative does not concur with the recommendation he/she must justify his decision in
   writing and start a new bidding process.
 Award of contract to the successful bidder, according to recommendation submitted by UNDP's
   Local Contracts Committee and the Resident Representative's concurrence with the
   recommendation.
 Project/UNDP places a purchasing order mentioning the date of the successful bid.
 Supplier's acceptance of the purchase order.
 Delivery of equipment or supplies. The Project Manager fills in the receipt report, to certify that
   goods have been received, as established in the purchase order.
 The Project submits official invoice and receipt report to UNDP for payment.
 Payment to supplier.
 Registration in Project's Property Ledger for Goods and Equipment.

Purchases of more than $100,000
Procurement of goods or services valued at more than US$ 100,000 must be submitted to OLPS for
review by the ACP and obtain approval by the CPO, before making any contractual arrangements.
This applies when any of the following cases occurs:




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Proposed contracts which involve commitments to a single contractor in respect of a single requisition
for a specific project or purpose, or a series of requisitions relating to the same specific or purpose,
totaling $100,000 or more in a calendar year (January - December);
Proposed contracts or series of related contracts which involve income to UNDP of $10,000 or more;
and any contracts relating to activities where the estimated annual income when aggregated with the
estimated annual income from any other contract or contracts already made with the same purchaser in
the same year, amounts to $10,000 or more, provided that contractual arrangements resulting from the
recommendations of the UNDP Property Survey Board shall not be referred to the Advisory
Committee on Procurement;
Any contract amendment, or series of amendments, which in aggregate either has a value of $100,000
or more or which would increase the amount of the contract as previously recommended by the
Committee by more than 20 per cent, whichever is the less;
Proposed contracts of any value which could reasonably lead to a series of related contracts, the total
of which may be $100,000 or more; and
Such other matters relating to procurement as may be referred to the Committee by the Assistant
Administrator, Bureau of Management.


Bid Opening
Bids received by the specified individual or office prior to the bid receipt deadline will be safeguarded,
opened and evaluated. In the event that a bid is properly addressed and sent in a timely manner in
advance of the bid receipt date, but nevertheless is received after the bid receipt deadline because of an
internal problem within UNDP or because of a delay caused by the courier company and outside the
control of the bidder, the bid may be considered at the discretion of UNDP. This applies to cases
where "no award has been made, or if an award has been made but notice thereof has not left the
office.. In all other cases, late bids shall not be accepted.

For purchases of less than $100,000, there is generally no formal opening at the expiration of the bid
deadline, and the project authorities/UNDP open the bids. In rare instances, a public opening of the
bids may occur if specified in the bidding documents.

For purchases of $100,000 or more, a public bid opening is mandated by Financial Rule 114.20. The
time and place of the bid opening must be specified in the ITB/RFP.

The names of the bidders and the total US dollar amounts of each bid (bids in foreign currency will be
converted at the official UN exchange rate into US dollars) will be announced at the Bid Opening.

No additional information shall be recorded or revealed at the bid opening.

Bid Evaluation
After opening and recording the bids, they are evaluated by the project authorities, who prepare a Bid
Analysis Report. When necessary, a specialized consultant may be engaged to assist in the analysis of
the bids. The evaluation and analysis of the bids must be based on the factors outlined in the ITB.
Considerations of eligibility include:

   meeting technical specifications;
   timeliness;
   local service requirements;



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   delivery of equipment;
   meeting other defined requirements; and
   being fully "qualified and responsive" pursuant to a background check

Rejection of Bids
Any and all bids may be rejected if it is in the interest of UNDP.

Rejection of bids must not be taken lightly. Fairness, transparency and maintenance of adequate
competition is always a priority. Bids may not be rejected on the basis of mere expediency or caprice.
Bids may be rejected during two phases of the procurement process: the bid opening and the
evaluation process.

The criteria for rejecting bids during the bid opening includes:

   late bids

The criteria for rejecting bids during the evaluation normally includes:

   failure to confirm to technical specifications or to other ITB requirements;
   change in circumstances;
   failure of the bidder to be qualified (eg., pursuant to a background check;

In the case that any or all bids are rejected, UNDP shall record the reasons for rejection and shall make
a determination whether to invite new bidding or to seek approval for a negotiated contract.

Negotiation with Prospective Contractors

Waiver of Competitive Bidding
Since competition is the foundation of public procurement, avoiding competition is one of the most
serious actions a procurement officer can take. Strict review and approval processes, therefore, have
been established to ensure that the waiver process is not abused.

a), purchases under $30,000 do not require formal ITBs. Requests for Quotations are generally used
in order to provide for an assessment of competitive quotations based on conformity with the
specifications, delivery schedules and prices (competitive prices, where available).

All requests for a waiver of competitive bidding for proposed contracts of $30,000 or more must be
submitted to the CPO for final approval, following review by the LCC ($30,000 or more) and ACP
($100,000 or more). Submission will be reviewed against the list of following permissible reasons as
per FRR 121.05 and the justifications for its use.

   when prices or rates are fixed, according to national legislation or by national regulating agencies.
   when the normalization of supplies, equipment or spares renders competition unfeasible;
   under compelling circumstances which rule out any delays through bidding procedures;
   when the contract implies contracting with one singular source of supply, or else when perishable
    goods are involved.
   when the purchasing officer considers that competitive bidding will not render positive results, or
    will not serve the Project's interests.


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Basis for Waiver of Competitive Bidding

For purchases of $30,000 or more, competitive bidding may be waived and proposed purchase orders
may be negotiated when:

   The prices or rates are fixed pursuant to national legislation or by regulatory bodies.
   A standardization of supplies, equipment or spare parts renders competition impracticable, (e.g.
    items of the same brand must be purchased to replenish or add to existing stock of equipment, or
    because in the local area services/spare parts are available only for such equipment.)
   The exigencies of service do not permit the delay attendant upon issuance of invitations to bid or
    requests for proposals, or the re-issue thereof in cases where such solicitation has failed to achieve
    satisfactory results. (e.g. true emergency exists, such as natural disaster or catastrophic accident, or
    other circumstances beyond the control of project authorities and/or UNDP.) Urgent need for
    equipment which is due to the failure of the responsible officers to plan appropriately generally
    does not qualify for waiver on the basis of this subparagraph (iii).
   The proposed contract relates to procurement from a sole source of supply or the procurement of
    perishable supplies, (e.g. spare parts/services can only be obtained from one supplier or only one
    supplier can provide the item needed, based on functional specifications or proprietary
    technology.)
   Proposed contract relates to the obtaining of services of specific individuals, other than for staff
    services, (e.g. medical personnel).
   Invitations to bid will not give satisfactory results or are not, in the particular case, deemed in the
    interest of UNDP, (e.g. previous competitive bidding failed to produce responsive bids;
    commodities in scarce supply can be immediately procured at prices which are not likely to be
    maintained; when a contract has been awarded to the lowest bidder, it is more advantageous to
    award the contract to the same bidder for a new identical requirement at the same price.

Awarding of Contracts/PO
Award of Contracts/PO valued at less than $100,000
Once the bids have been evaluated, the project authorities/UNDP LCC prepare(s) a recommendation
for award of contract for approval by the Resident Representative. Contracts are awarded to the
qualified (responsible) and the most responsive supplier submitting the lowest bid.

When an informal Request for Quotations has been issued, contracts shall be awarded to the qualified
and responsive contractor submitting the lowest offer.

When formal Invitations to Bid have been issued, contracts shall be awarded to the qualified bidder
whose bid conforms to the requirements set forth in the solicitation documentation and offer lowest
cost to UNDP. The term "lowest cost" takes into account the cost associated with payment schedule,
operating and maintenance costs, or in short "life-cycle cost". In absence of these costs, the contract
should be awarded to the contractor offering lowest price.

When a formal Request for Proposals have been issued, the procurement contract shall be awarded to
the proposer whose technical offer meets the qualifying requirements and the financial has the lowest
bid.




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The contract may be written as per the standard format. For assistance, please contact the Office of
Legal and Procurement Support (OLPS).

Award of Contracts/PO valued at $100,000 or more

Proposed contracts of $100,000 or more (see cases listed below) shall be submitted to the UNDP ACP
and CPO. Such proposed contracts should be reviewed by the LCC before being submitted to the
above. In addition, where, under the proceeding, the advice of the ACP (or LCC as appropriate) is
required to be sought, no commitment may be entered into before such advice is acted upon by the
CPO or the Resident Representative or their authorized delegates. In cases where the CPO or UNDP
Resident Representative decides not to accept the advice of such Committee, he/she must record the
reasons for such decision.

Submission shall take place in the following cases:

   purchases or $100,000 or more;
   multiple purchases totaling $100,000 or more with the same supplier and under the same project or
    relating to the same specific purpose. (The Financial Rules currently do not indicate a limitation on
    the length of time to be considered, but the practice has been one calendar year).
   any amendment or series of amendments which in aggregate has a value of $100,000 or more or
    which would increase the amount of a previously-approved Purchase Order amount by more than
    20%, whichever is the lesser amount.

Any attempt to avoid review by the ACP by dividing a single order into several smaller orders, or to
ignore evidence suggesting the involvement of ACP, is considered to be a contravention of Financial
Rules. Again, prudence dictates that ACP be consulted in questionable cases.

Contract Negotiations/PO

Issues in Drawing up Purchase Orders


Issuance of Purchase Order
A Purchase Order is issued for all purchases exceeding $1,000 and shall, as appropriate, specify in
detail:

   nature of materials being provided;
   quantity being provided;
   unit prices;
   conditions to be fulfilled;
   period covered; and
   terms of delivery and payment.

Commercial practice mandates that the Purchase Order shall also include the following information, as
appropriate:

   technical specifications;
   shipping instructions;


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   packing and instructions;
   the "Consignee" (normally the UNDP Resident Representative);
   the "Notifying Party" and address where shipping documents are to be forwarded for customs
    clearance and other government formalities (normally UNDP Resident Representative);
   the project site as the final destination (with specific details to ensure proper delivery and
    insurance coverage during transit to the project site);
   invoicing instructions;
   and whatever other information may be relevant to the particular procurement (i.e., pre-shipment
    inspection, installation, commissioning, training, etc.).

Advance Payments

The basic rule is that UNDP does not pay under 'Advance Payment' Terms or 'L/C' ones/ PMO must
ensure that all bids under these terms to be considered non-responsive.

Filing and Information System

When starting contracting activities under a project, project authorities/UNDP shall establish a
separate section (eg., a separate folder or suspended file or binder) within the project file for each
particular contract.

Every contract file shall contain the following:

   Technical Specifications,
   Shortlist (Where applicable),
   RFQ/ITB (or RFP where applicable) with the draft contract attached
   Winning Proposal (technical and financial)
   Evaluation Report
   Minutes of negotiations (if any) or relevant correspondence
   Signed original of the submission form to UNDP
   Signed original of the contract (signed by both UNDP and the contractor)
   Correspondence with the contractor, including mail, telex, fax, email, and notes of telephone calls
   Contract/PO Amendments
   Any required progress reports and/or other proof of delivery of milestones as provided for in the
    contract
   A copy of the payment record, once the contract has been completed.

For particularly large contracts/POs, it may be useful to have two contract files, one for the
procurement process and one for contract administration.

                                       Retro/Post-Facto Cases
All UNDP staff members are expected to make every effort to avoid post-facto or retroactive cases. A
post-facto situation occurs when no contract or purchase order was issued by UNDP, but the services
have already been rendered or the goods purchased and received. A retroactive case occurs when no
contract or purchase order was issued, but either the Consultant/Contractor/Supplier already started
rendering services or the goods have been ordered but not yet delivered.




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In above cases, special approval of the CPO is required before related payments are made or, if
already made, for such expenditures to be accepted by UNDP as legitimate charges against the budget
line(s). The request for approval shall be as per the standard form. For details refer to the web site of
BOM.


Retro/Post-Facto Contracts
Services or works are not to commence until a contractual obligation between UNDP and the entity
has been established either by written "offer" and "acceptance" or by signature of both parties to the
contract. Every effort must be made to avoid a situation whereby services commence prior to the
establishment of a contract.

"Apart from the employment of staff under an authorized staffing table, and consequential
commitments under the Staff Regulations and Rules, no contract, agreement or undertaking of any
nature for an amount to be specified from time to time (currently $2,500) shall be entered into until
funds have been reserved in the accounts, by means of an obligating document...."

Project authorities are expected to make every effort to avoid post-facto or retroactive cases. When
they nevertheless do occur, special approval of UNDP is required before related payments are made. It
must also be understood that the approval, if it is given, does not constitute, and must not be taken as,
the establishment of a precedent or justification for not taking the timely and appropriate action(s).

Procedures for Post-Facto cases
A post-facto situation occurs when no contract or purchase order was issued by UNDP, but the
services have already been rendered or the goods purchased and received.

Project authorities shall prepare a request to UNDP, seeking its approval to either authorize the
payment of the invoice or claim received from the contractor or supplier or, if payment has already
been processed in the field, to accept such charges as valid expenditures.

The request for approval shall:

   fully detail the events leading to the case;
   justify, to the extent possible, the reasons for not having observed;
   demonstrate the reasonableness of the activity, as well as its economy, efficiency and equity;
   demonstrate that no loss has been incurred by the Organization as a result of contravening the
    Financial Rule and that there are no contractual provisions which would still need to be applied
    (eg., warranties);
   be accompanied by a written statement signed by the "vendor" (i.e. the individual, or the
    authorized person on behalf of the firm/supplier/entity making the claim) indicating that the
    vendor's claim or invoice is final, and payment thereof will constitute a final settlement for the
    case in question (subject to special conditions, if any, that ought to be applied in respect of the
    particular procurement action);
   be accompanied by the vendor's claim or invoice duly certified by the project authorities, so as to
    indicate that the services have been rendered satisfactorily and/or the goods have been received in
    full and good order.

No contract needs to be prepared nor will a purchase order be issued for post-facto cases.



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Procedures for Retroactive cases
A retroactive case occurs when no contract or purchase order was issued, but either the
Consultant/Contractor/Supplier has already started rendering services or the goods have been ordered
but not yet delivered. In this case, an invoice/claim may not have yet been submitted, and the request
for approval shall seek to establish a legally binding relationship between UNDP and the
consultant/contractor/supplier so that future payments of invoices/claims can be effected within the
framework of established procedures. If an invoice/claim has already been submitted - for instance for
partial services rendered, the request for approval shall additionally seek approval of payment of said
invoice/claim, or acceptance of the corresponding charge(s).
A request such as the one outlined above for Post-facto Cases is required and must be submitted to
UNDP for approval. In this case, the request for approval shall:

   fully detail the events leading to the case;
   justify, to the extent possible, the reasons for not having observed
   demonstrate the reasonableness of the activity, as well as its economy, efficiency and equity;
   demonstrate that no loss has been incurred by the Organization as a result of contravening the
    Financial Rule and that there are no contractual provisions which would still need to be applied
    (eg., warranties);
   be accompanied by the vendor's invoice/claim, if any, certified by the project authorities, so as to
    indicate that the (partial) services have been rendered satisfactorily.

In this case, approval by UNDP shall constitute award of contract to the consultant/contractor/supplier
pertaining to the case. Thereafter, contracts/purchase orders shall be prepared and issued
expeditiously.



ADMINISTRATION PHASE
Shipping and Customs Clearance

PMU will negotiate with the supplier/vendor the best Incoterms (usually CIP, Tirana, UNDP Office).
UNDP/PSU will assist PMO on customs clearance and duty free authorizations to be obtained duly
and timely.

Verifying and making payments

PMO will screen the invoice and all the supporting documentation. The request for Payment will be
passed to PSU/UNDP for payment procedures.

Contract/PO amendments

PMO will inform PSU/UNDP on the required amendments to be done to the prior agreed PO/contract
explaining and documenting the requirement.

Contract/PO conclusion/Hand Over




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PMO, in cooperation with PSU/UNDP will organize for the required steps in inventory action and
disposal/transfer of the procured items/goods to the last beneficiary/entity as approved by LPSB.

VAT issues

The contractual/PO commitments will include the cost of the VAT when the executing local
companies are locally registered under VAT registration in Albania. PMO must fully ensure that the
invoicing must be done in compliance with the local laws in force. PSU will follow up for the possible
reimbursable amounts and cases.


Debriefing and Protest Procedures
Debriefing Unsuccessful Offerors
The UNDP does not normally debrief unsuccessful offerors. However, in the case of highly technical
or complex awards, a debriefing may be conducted upon request from an unsuccessful offeror.
The scope of the debriefing is limited to identifying the technical deficiencies or weaknesses of the
offeror’s proposal.
Do not discuss:
a) Financial or cost information of other offerors
b) b) Evaluation scoring, or c) Other proposals

Protest Procedures:
a) The response to all protests, regardless of to whom they are addressed, is always prepared and
executed by the responsible head of unit.
b) The UNDP staff who receive protests from unsuccessful offerors must immediately refer them to
the Resident Representative/Head of Unit without further discussion or communication with the
protester.
c) Protest notifications which do not indicate a basis for the action are not entertained.
d) Upon receipt of a written protest from an unsuccessful offeror, the procurement person:
- Immediately informs the RR/Head of Unit;
- - Within 2 working days, mails the protestor, a written acknowledgement;
- - Initiates an investigation of the protestor’s allegations; - Following the conclusion of the
    investigation, document the results in the form of memo to files - Seeks OLPS opinion if needed;
- - Drafts a response and provides the protestor with formal written notification of the decision and
    basis upon which it was made.

SHIPPING AND INSURANCE
General
Freight, or the cost of transportation services, is a substantial element in the delivered price of most
imported goods and this incidence is particularly high for land-locked countries. This may range from
10- 15% of the cost of goods.
Modes of Transport
a) Five different methods are used, either singly or in some combination, to transport goods
internationally. These are: by sea, by rail, by road, by air and by parcel post. An important decision for
the buyer is to decide the mode or modes of transportation, that he/she should use so as to minimize
the sum of visible and not so visible transportation costs.
In general, transportation costs by rail, road and air are comparatively higher than by sea. In UNDP,
sea transport is by far the most important mode of transport.



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c) To ensure better delivery, it is preferable to select conference liner, since they operate along
   definite routes and call at specific ports. In case of non-conference liner, the routes and delivery
   time is uncertain.

Markings
To facilitate the identification of goods and handling whilst in transit, the suppliers should be
instructed to provide “shipping marks” on all packages as per following format:
Consignee
Destination
Port of Unloading
Project identification
Order number
Case number.

Forwarding Agents
Known also as freight forwarders, freight brokers and who may also act as clearing agents or custom
brokers. It is hardly possible for consignees themselves to carry out the formalities and operations
leading to actual collection of the consignments. For this, you should rely on the services of a
forwarding agent to do this.
On receipt of Bills of Lading (B/L) and accompanying documents, it may be possible to start action
immediately to speedup the retrieval of goods when the ship calls at the port.
Prompt clearance and collection is desirable as Consignments lying in custom warehouses are running
risks of loss and pilferage, apart from incurring rent and demurrage charges. When consignees are not
located in the town where the port/airport of arrival is situated, but inland in the same country,
documents with appropriate instructions must be sent to the clearing agent. Alternatively, suppliers
may be sent under bond, for clearance at the final destination, or be cleared on the spot, then
onforwarded.
When the final consignee is not located in the country of arrival, i.e. in case of land-locked countries,
the transit and onforwarding are normally undertaken by a forwarding agent who has received B/L and
instructions from the Senders.
Through B/L is a preferred mode, since no action is required from the consignee until arrival at the
destination, where clearance and collection will need to be effected.

Receipt of Consignments
When a consignment is delivered to the consignee, the carrier will request a receipt. The external
condition of packages must therefore be verified. If, in apparent good order, it is recommended that
the endorsement be given along the following lines:
“received in good external condition – contents unchecked

This allows further action, should discrepancies be noticed when unpacking. If, however, there are
signs of tampering with the packages, then the receipt should be given with reservations such as “cases
broken, contents lacking – cartons opened with sign of pilferage”.
If possible, packages should be weighed to determine differences between declared and actual
weights, and such differences be stated on delivery notes.
Cargo Insurance
During transportation and storage, cargo may be exposed to various risks, such as damage, pilferage
and theft, breakage, non-receipt of part or entire consignments. Cargo insurance provides protection
against financial losses resulting from these risks.



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To protect the interests of UNDP, please ensure the following:
Goods are covered for all risks, including war, strikes, riots and civil commotions (SRCC).
Duration of the insurance coverage should be sufficient to cover the period of transportation from
“warehouse to warehouse” and include minimum 30 days, in store at destination.
Goods should be insured for the CIF value plus an agreed percentage (normally 10%) to reflect the
indirect cost to the buyer incidental to waiting for replacement.
Common insurance policy negotiated and maintained by BoM Administrative Services Division
should be used.
For details see OLPS website, Procurement Forms.
Should damage or loss occur, contact the underwriter within one week for further advice. It always
weakens the case when a claim is submitted with a delay..

INCOTERMS 2000
The International Commerce Terms (INCOTERMS) define the obligations of buyer and seller relating
to shipment of goods. The latest version of INCOTERMS 2000 can be purchased from International
Chamber of Commerce, Paris, France.
To avoid the possibility of misunderstanding, the following guidelines should be used to select the
appropriate trade term.
a) For local procurement use the term “FCA” (Free Carrier)
b) For international procurement where the transportation is arranged by you, use the term “FOB”
(Free on Board) or “FCA”, depending on where the goods are to be delivered.
c) For International procurement where the transportation is covered by the Supplier, use preferably
the term “CPT” (Carriage Paid To).
d) For international procurement where the transportation and insurance is arranged by the Supplier,
use the term “CIP” (Carriage and Insurance Paid To).
e) For international procurement where you wish the Supplier to bear all risks and costs of bringing
the goods to the country of destination, use the term “DDU” (Delivered Duty Unpaid). This will cost
extra and hence should be used only during emergency operations.
f) All the terms referred to above should be followed by named place/destination point..


PROCUREMENT ETHICS
Transactions committing UNDP deserve the highest degree of public trust and be conducted at
impeccable standards because the funds used are entrusted to UNDP by others. Hence, it is absolutely
essential that all procurement activities be carried out in a manner above reproach, with complete
impartiality and with no preferential treatment.
The UNDP procurement process must allow suppliers to compete for UNDP business on fair basis.
Staff associated with the procurement function, therefore, are responsible for protecting the integrity
of the procurement process, maintaining fairness in UNDP’s treatment of all suppliers.
 The standard of conduct for all staff involved in procurement activities include:
During the pre-solicitation phase, staff may not allow supplier(s) access to information on a
particular acquisition before such information is available to the business community at large. Further
staff may not use unnecessary restrictive specifications or statements of work that may discourage
competition.
Staff may not solicit or accept, directly or indirectly any gratuity, gift, favor, entertainment or any
promise of future employment from anyone who has or is seeking to obtain UNDP business.
Staff having a financial interest in one or more suppliers responding to a UNDP solicitation are
prohibited from any involvement in the procurement action.



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Staff may not disclose proprietary and source selection information, directly or indirectly, to any
person other than a person authorized to receive such information..

ENVIRONMENTAL CONCERNS
         UNDP policy on “Green” procurement is as follows:
a) UNDP will seek to procure goods and services that lessen the burden on the environment in their
production, use and final disposition, whenever possible and economical.
b) UNDP supports the 4 “R” strategies, i.e. Re-think the requirements to reduce environmental impact;
Reduce material consumption; Recycle materials/waste; and Reduce energy consumption.
         Before finalizing the requirements, of goods and/or services, the environmental concerns must
be reviewed. Some of these are as follows:
- Energy consumption - Toxicity - Ozone Depletion - Radiation - Use of recycled materials
In short, this calls for the identification of environmentally friendly (green) goods and services, which
have less harmful effects on human health and the environment than competing goods serving the
same purpose.
         To determine how environmentally-friendly the goods and/or services are, you may ask the
following questions:
a) Is it single use (disposable) or reusable?
b) What is the recycled content:
c) Does it consume more energy than competing products?
d) Does it have an energy saving mode?
e) Is it durable? f) Can it be repaired?
f) Is it recyclable locally?
h) Is it energy-star rated?.

SUPPLIER PERFORMANCE EVALUATION
 To develop and maintain the list of qualified suppliers, existing suppliers must be evaluated.
 The evaluation can be based on reviewing the performance in meeting the requirements under the
following attributes.
a) Quality of good and services
b) Delivery
c) After-sales service
d) Accuracy of documentation
e) Speed of response
f) Cooperation
     The method is simple and calls for grading the supplier’s performance under the above listed
attributes. The grading could be “meets the expectation”, or “Does not meet the expectation” or
“Exceeds the expectation”.
     After reviewing the above grading under above listed Attributes, the supplier may be evaluated as
“good”, “satisfactory” or “not satisfactory




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Table 11.1        Subcontracting Procedures

               STEPS                                              GUIDELINES
2.   Preparation of the Terms of       3.   PMO to prepare the TORs for approval by the UNDP-CO
     Reference                         4.   TOR to indicate:
                                                Background/objective(s) of the consultancy
                                                Scope of work/tasks involved
                                                Required output(s)
                                                Expected timeframe for completion of work
                                                Minimum qualification requirements for the Consultant
                                                Duty station
                                                Coordination arrangements
                                                Logistic and travel support
                                                Debriefing arrangements
                                                Training arrangements (where applicable)

2        Solicitation of Proposals     5.   PMO shall announce through:
                                               Posting in strategic areas within the relevant institutions in
                                                   the sector
                                               Advertisement of invitation for bids at least tow times
                                                   within two weeks in at least 2 newspapers of national
                                                   circulation

                                       6.   All proposals shall indicate the breakdown of costs as follows:
                                                  Rate per work-month for each consultant and staff in case
                                                    of group or firm
                                                  Projected number of travels and costs based on project DSA
                                                    rates; and
                                                  Other costs such as supplies and reproduction/printing costs

7.   Creation of a Pre-Qualification   3.   PMO shall facilitate creation of the PEAC which shall pre-qualify
     Evaluation and Awards                  consultants, evaluate proposals and award contracts
     Committee (PEAC)
                                       4.   For the Evaluation Committee of an Implementing Agency – IA
                                            shall ensure the participation of an agency member not directly
                                            involved in the project

8.   Technical Evaluation of           4.   The PEAC shall set its criteria and rating system for technical
     Proposals                              evaluation of proposals

                                       5.   Minimum criteria with TOR as point of reference shall include:
                                                 Plan of approach and methodology: - substance of the
                                                  proposal as to problem interpretation and required
                                                  solutions; clarity of proposed methods and approaches
                                                  (including applicability to local conditions), completeness
                                                  the proposal and compliance with TOR’s mandatory
                                                  requirements; and proposed timetable for accomplishment
                                                  of work
                                                 Qualifications of consultant(s)/personnel: - general
                                                  qualifications and competence in terms of education,
                                                  training, nature and length of relevant experience,




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                                           responsible positions held in the firm and suitability to the
                                           tasks

                             6.   At least three short-listed consultants shall be considered for final
                                  evaluation
9.   Awarding of Contracts   1.   PEAC shall submit final recommendations to the UNDP-CO for
                                  selection, approval and awarding of contract

                             2.   PMO shall ensure documentation of the evaluation and selection
                                  process

10. Contracting              1.   UNDP-CO shall issue contract and the PMO shall ensure the
                                  consultant’s performance under the terms of the contract by
                                  monitoring progress and quality of work

                             2.   All contracts shall be cleared by the PM and approved by UNDP-CO

                             3.   All contracts (Annex 1..) shall be output/performance based and
                                  shall indicate:

                                          Services to be rendered
                                          Outputs to be delivered
                                          Schedule of delivery of outputs
                                          Cost of services (with breakdown)
                                          Terms/schedule of payment
                                          Penalty clause
                                          Responsibilities of parties
                                          Duration of the contract
                                          Title rights to material produced
                                          Disclosure of information
                                          Arrangements in cases of injury, disability or dearth
                                          Contract Termination; and
                                          Taxation

                             4.   Final payment shall be conditioned on the acceptability of the output
                                  to the UNDP-CO. The PM shall issue a certification on satisfactory
                                  compliance with required output(s) to support final payment

                             5.   PMO shall furnish UNDP-CO with copies of all contracts, final
                                  outputs and assessment of subcontractor performance for
                                  information (Refer to Annex 11A) for subcontractor assessment
                                  form

                             6.   Extension of contract duration for reasons other than PMO
                                  imposition of additional outputs and tasks shall not entail payment of
                                  additional fees.

                             7.   All contract extensions shall be cleared by the PM and approved by
                                  UNDP-CO.

                             8.   Multiple extension of a subcontract shall necessitate UNDP-CO
                                  review of the subcontractor’s performance and project
                                  implementation strategies




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                                       Annex 11A:           Sub-contractor Assessment Form

                                                                                                    DATE: ________________
I.     GENERAL

Consultant Name:              ________________________     Contract Number: ________________________
Project Number:               ____________________________________________________________________
Project Title:                ____________________________________________________________________

Brief Description of Tasks Completed:

         __________________________________________________________________________________
         __________________________________________________________________________________
         __________________________________________________________________________________

         Start Date:          _______________________                    End Date:       _________________________

II.      PLEASE RATE THE CONSULTANT’S FOLLOWING ATTRIBUTES:
         (1=Excellent, 2=Very Good, 3=Fair, 4=Poor, and 5=Unsatisfactory)

         1.        Technical expertise in the subject area of the assignment?                                   

         2.        Imagination and flexibility?                                                                 

         3.        Initiative and contribution?                                                                 

         4.        Interpersonal skills?                                                                        

         5.        Quality of the reports submitted?                                                            

         6.        Timeliness of reports submitted?                                                             

         7.        Linguistic skills?
                                                              Language               Written          Spoken




III.     PLEASE EXPLAIN BELOW ANY 1 OR 4 RATINGS THAT WERE ASSIGNED IN PART II. YOU MAY
         ALSO ADD ANY COMMENTS THAT YOU FEEL SHOULD REMAIN IN THE CONSULTANT’S FILE


                     SHOULD THIS CONSULTANT REMAIN ON THE ROSTER? (CHECK ON)                     YES    NO 


IV.      DO YOU WANT RESTRICTED AREAS (ACCESS WILL BE PROVIDED AT THE DISCRETION OF THE
         MANAGEMENT) FOR THE INFORMATION IN PARTS II AND III? (Check one)
                                                                       YES  NO 

NAME AND SIGNATURE OF EVALUATOR: ___________________________________________________
DESIGNATION: _______________ AGENCY/PROJECT: ___________________ TEL: _________________




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                           SUBMISSION TO THE LCC/ACP: CHECKLIST
Check for the availability of funds and its approval.
Funds are sufficient to cover the amount of contract.
In case of contracts exceeding USD100,000 was the advance procurement notice advertise?
If not, check for transparency and geographical distribution in developing the short list of suppliers.
 Check, if sufficient time was provided to the contractors for the submission of offers.
 Has the copy of the solicitation Document been provided? If not, ask for it.
 Are the specifications generic and unbiased?
 What method of procurement is used? Is it in line with Procurement Manual?
 Are the evaluation criteria very clear to ensure value for money?
 Check if sufficient information was provided to the suppliers for the preparation of responsive
offers.
 Check, if any Supplier was given preferential treatment during evaluation.
 Check, if the lowest evaluated responsive offeror has been recommended in the Evaluation Report.
If not, then check the justification given in the Evaluation Report for recommending any other
Supplier.
 In case of Direct Contracting, check if appropriate approval/waiver was obtained.
Check if in case of Services, a justification has been provided to confirm that the consulting fees and
the number of work days are fair and reasonable.
 In case of purchase orders, please check that cargo insurance covers all risks.
Check if the contract calls for an advance payment and/or progress payment.
 If yes, check that the advance payment is covered by a bank guarantee and progress payments are
against completion of deliverables.
 Check if the general terms and conditions comply with the UNDP General Conditions for Services
or General Terms and Condition for Goods.
If not, check whether OLPS approval has been sought.




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                   Figure 12.1      Procurement Procedures for Goods

                          PMO shall develop a system for procurement of routine supply requirements
   PMO DEVELOPS            and of project equipment
    SYSTEM FOR
                          PMO shall develop a Procurement Plan indicating procurement methods,
  PROCUREMENT &
                           schedule, items to be procured and type of contract (normally a fixed price
   PROCUREMENT
                           contract)
       PLAN
                          PMO may consider alternative procurement methods; limited source bidding,
                           direct contracting, repeat order, shopping & negotiated procurement

 PMO PREPARES             Project Manager shall issue a certificate on availability of funds
   EQUIPMENT
SPECIFICATIONS &
  REQUEST FOR
QUATITIONS/BIDS

                          PMAC may be existing or new creation
     PMO TAPS             PMAC shall conduct the bidding, evaluate bids and recommend award of
ASSISTANCE OF PRE-         contract
  QUALIFICATION
  BIDS & AWARDS
COMMITTEE (PBAC)          Through open competitive bidding or alternative method of procurement
                          Public bidding may be dispensed with for procurement amounting up to ALL as
  PBAC SOLICITS            long as purchase is most advantageous to the project
 QUOTATION BIDS
                          The responsive bid with lowest evaluated cost, but not necessarily the lowest
                           submitted price, shall be recommended for award
 PBAC EVALUATES
QUOTATIONS/BIDS
    & SUBMITS
RECOMMENDATION
   TO UNDP-CO             PBAC shall document the procurement process. Records shall be
                           retained/disposed of based on UNDP guidelines on record retention
UNDP-CO APPROVES
   AWARD OF
  CONTRACT TO
 RECOMMENDED              All contracts shall be reviewed by the PM and approved by UNDP-CO
    SUPPLIER
                          PMO shall ensure purchase of goods of acceptable quality at fair and reasonable
 UNDP-CO ISSUES            prices from qualified and capable suppliers, manufacturers, or distributors,
  CONTRACT TO              timely delivery & satisfactory compliance with all contract terms & conditions
    SUPPLIER               including after sales service
                          PMO shall undertake physical inspection of the goods and ensure compliance
                           with specifications
                          All payments shall be made in check and covered by suppliers receipts

   UNDP-CO PAYS
  SUPPLIER UPON
  ACCEPTANCE OF
      GOODS




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               Annex 12A: Checklist for procurement of equipment and supplies


Less than $50                       May be purchased through Petty Cash Fund


   Between                          3 Quotations – Evaluation Report – RDP
  $50 - $999



   Between                          1. Quarterly Work Plan and Procurement Plan
                                    2. Preparation of Technical Specification
                                    3. Preparation of Request for Quotation
                                    4. Identification of Suppliers
$1,,000-$99,999                     5. Evaluation of Vendor based on Quotations received
                                  ---------------------------------------------------------------------
                                  *6. Review by LCC of contracts for $30,000 and more
                                    7. Final Approval by RR
                                    8. Issuance of Purchase Order

Over $100,000                   1.     Quarterly Work Plan and Procurement Plan
                                2.     Preparation of Invitation to Bid (Intern. Competitive Bidding)
                                3.     Identification of Suppliers
                                4.     Evaluation of Vendor based on Invitation to Bids received
                                -----------------------------------------------------------------
                                **5. Recommendation by LCC to ACP in HQs
                                *6. Review by ACP
                                *7. Final approval by CPO
                                *8. Issuance of Purchase Order

           Annex 12B: Check-list for procurement of services, goods and works


                                                (1)     Quarterly Work Plan and Procurement Plan
                                                (2)    Preparation of TOR
                                                (3)    Identification of Service Providers
                                                (4)    Evaluation and Selection of Service Provide
   Up to $99,999                                       based on quotations received
                                                --------------------------------------------
                                                * (5)      Review by LCC of contracts for $30,000 and
                                                           more
                                                * (6)      Final approval by RR
                                                * (7)      Issuance of contract



                                              (1) Quarterly Work Plan and Procurement Plan
   Over $100,000                              (2) Preparation of Request for Proposal (RFP)
                                              (3) Identification of Suppliers
                                              (4) Evaluation of Proposals
                                              * (5)  Recommendation by LCC to ACP in New York
                                              * (6)  Review by ACP
                                              * (7)  Final approval by CPO
                                              * (8)  Issuance of Contract



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                     Annex 12C:    Quotation Evaluation Format for Purchases less than $1,000

Date.

Subject:

FROM : PMO

Through: (Technical Person)

TO: PSU/UNDP

                                  SUPPLIER NR. 1          SUPPLIER NR. 2        SUPPLIER NR. 3

Technical Specifications
Required
Warranty Terms

Delivery Terms
Net Cost
VAT Cost20%

TOTAL Cost ($/LEK)

After-Sale-Service

Remarks




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                  Annex12D:          Factors Involved in Consideration to Waive Competitive Bidding


   prices or rates are fixed pursuant to national legislation or by regulatory bodies;

   standardization of supplies, equipment or spare parts renders competition impracticable, e.g., items of the same brand
    must be purchased to replenish or add to existing stock of equipment, or because in the local area services/spare parts
    are available for such equipment;

   exigencies of service do not permit the delay attendant upon issuance of an RQ/RFP, e.g. a true emergency exists, such
    as a natural disaster or procurement of perishable supplies;

   an RQ/RFP would not give satisfactory results or be in the interest of the Government or UNDP, e.g., previous
    competitive bidding failed to produce responsive bids or proposals that meet requirements;

   a proposed procurement or contract is from a sole source supplier, e.g., ,of a proprietary technology;

   commodities can be immediately procured at prices which are not likely to be maintained;

   a previous order has been awarded to the lowest bidder and it is advantageous to award an order for a new identical
    requirement to the same bidder at the same price;

   a proposed contract relates to the obtaining of services of specific individuals;

   bids or proposals from short-listed firms have been received, but all bids/proposals are rejected, and approval has been
    provided for waiver of competitive negotiation through the Local Contracts Committee ($1,000 - $29,999) or Chief
    Procurement Officer ($30,000 - $99,999; $100,000 and more).

                           Annex12E           Criteria for Selection of Companies for Short List


The following factors are to be considered when creating a short-list of firms for participation in a Request for
Quotation/Request of Proposal during a standard procurement or contracting process.


   known reliability or general reputation of firm

   availability of product servicing or other remedial services after sales through in-country representation

   ability to provide training and/or user Handbooks in required language

   track-record of providing previous satisfactory performance

   credit worthiness (to be checked via data-bases, bank records, credit checks, etc.)

   monetary value of the purchase (based on previous experience with firm)

   general availability of competing product or consulting sources

   distance of firm, i.e., consideration of transport costs

   when issuing an RFP for a large and/or complex assignment, conformity to general short-listing considerations which
    recommend that 1-4 short-listed firms come from major under-utilized UNDP donors; 1-3 from developing countries;
    and 1-2 from countries that may not have been included in earlier procurement short-lists for a project is to be
    observed.




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                                           Annex 12F:   Procurement Plan




TIME PERIOD:

QUARTER No:

PROJECT TITLE:

 ITEM      DETAILED DESCRIPTION/   Q’TY   CHARGEABLE        DATE OF          SPECIAL        IDENTIFICATION OF    REMARKS
  NO:         SPECIFICATION               BUDGET LINE      DELIVERY         CONSITIONS     POTENTIAL SUPPLIERS




PROCUREMENT PLAN ISSUED BY:                                       APPROVED/CLEARED:

PROJECT MANAGER:                                                  PROGRAMME OFFICER/SPECIALIST

DATE




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                            Annex 12G:   Request for procurement

PROJECT NO:                                  DATE:

PROJECT TITLE:                               REQUISITION NO:

BUDGET LINE


REQUESTING OFFICER:                          SIGNATURE:

PROGRAMME OFFICER:                           SIGNATURE:

ITEM          DESCRIPTION OF GOODS/SERVICES (FULL              UNIT    QTY       US$
 NO:               SPECIFICATION REQUIRED)




DELIVERY DATE:                                              TOTAL AMOUNT

DELIVERY ADDRESS:

SPECIAL
INSTRUCTIONS:




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                                         Annex 12H:        Local Purchase Order

Project No:
Project Title:

DATE:                                                              PURCHASE
                                                                   ORDER No:
VENDORS’ NAME AND ADDRESS:



PAYMENT MODE            Cheque           Bank Transfer        
TERMS OF                                                           DELIVERY
PAYMENT                                                            DATE:
ITEM NUMBER             DESCRIPTION OF         UNIT                Q’TY                 CURRENCY
                        GOODS/                                                          UNIT PRICE           AMOUNT
                        SERVICES




DELIVERY MARKS                                                     TOTAL
                                                                   AMOUNT
CHARGEABLE ACCOUNT CODE:
COMMITMENT No: /MOD
AUTHORIZING OFFICER:




      Name:       Date:
THE ABOVE PURCHASE ORDER IS ACCEPTED                               THE GOODS SUPPLIED UNDER ABOVE PURCHASE
HEREWITH:                                                          RECEIVE HEREWITH:

I hereby certify that the goods supplied under this Purchase       I hereby certify that the goods supplied under this Purchase
Order come from/have been manufactured or assembled in:            Order received fully in operation/completely/in good
                                                                   condiction.

……………………………..                                                      ………………………………..
(Vendor’s Stamp and Signature)               Date                  (Agency’s Stamp and Signature)               Date




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                                         Annex 12I:           Request for Quotation

ISSUING OFFICER:                                                 DELIVER TO:

Tel:
Fax:
e-mail

We would appreciate your assistance in providing us with the quotations as listed below:

    ITEM                  DESCRIPTION OF GOODS/SERVICES                                    UNIT              QTY
     NO:




CONDITIONS

    UNDP General Condition are applicable
    Delivery Terms (incoterms 1990)
    Payment Terms
    Deadline for submission
    Validity of quotation
    Language of documentations

PLEASE STATE

    Delivery time
    Shipment weight and volume (kg/ m3)
    Warranty conditions and availability of local services
    Validity of quotation
    Discounts




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                                      Annex 12J:       Bid Opening Records



                                               BID OPENING RECORD

Invitation to Bid/Request for Proposal for:
Project number and title:
…………………………………………………………………….




Date of issue:                                               Opening date and time:

Closing date:                                                Place:

No. of Bidders invited:                                      No. of bids received




            Bidder                  Country of         No of pages                  Remarks/Corrections
                                     Origin                             Total           Complete/
                                                                        Amount          Incomplete Bid




The original bids with attachments were opened in our presence and all pages duly numbered and initiated by us

Name                                   Title                Signature               Initial         Date




Note: If UNPD is managing the procurement process, at least one more UNDP staff (besides the Procurement/Programme
Officer) should be present at the opening. In situations where the Government is managing the procurement process,
presence of one UNDP official is sufficient.




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                                                                                            Chapter 12
   INPUT MOBILIZATION: TRAINING/FELLOWSHIPS/STUDY TOURS/WORKSHOPS


 INPUT MOBILIZATION – TRAINING/FELLOWSHIPS/STUDY TOURS/WORKSHOPS:

                -       General Policies
                -       General Procedures


                               13.1   Training/Fellowships/Study Tours

General Policies

All UNDP-supported trainings, fellowships and study tours shall primarily be designed for the
furtherance of project objectives, institution-building and improvement of the capability of national
counterpart personnel, partners and intended beneficiaries. Experts hired under the project are not
eligible as recipients of training. Degree courses are not allowed. The duration of nondegree courses
shall not exceed six weeks. The TCI/PMO shall plan training/fellowships/study tours in accordance
with the project design and objectives, the project budget and the WFP. It shall make arrangements
during the life of the project for the continued utilization of the project-trained national counterpart
personnel beyond the period of UNDP assistance.

Pre-Qualification of Participants

The TCI/PMO shall establish the criteria and transparent process for the selection of participants and
ensure documentation of the selection process. Consideration shall be given to the candidate’s job
responsibilities, actual job performance and educational/professional background

Modalities

The following modalities may be considered by the TCI:

       Training

            Local training through informal and/or structured interactions among international and
             national project personnel or through special training programmes in local institutions
            Foreign training/fellowship programmes involving transfer of know-how and knowledge
            Local and foreign group training involving attendance in seminars, symposia, workshops,
             training, technical visits and visits to similar projects

       Study tours

            Visits to carefully selected countries and institutions for a maximum of one month to obtain
             knowledge of direct relevance to the individuals’ functions and responsibilities

Responsibilities



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The following responsibilities shall be carried out with regard to the training/study tour:

Table 13.1 Responsibilities for Training/Fellowship and Study Tours

     RESPONSIBLE FOR                                       RESPONSIBILITIES
            ACTION
1. Participant                      Accomplishment of UNDP-Fellowship/Study Tour Nomination Form
                                    Execution and fulfillment of Service Contract with the agency as
                                     appropriate based on Government guidelines
                                    Compliance with reporting and debriefing requirements including
                                     evaluation of training/study tour programme

2. Agency of the Participant        Deployment of participant upon return to conduct debriefings or echo
                                     training
                                    Continued payment of the participant’s salaries
                                    Arranging for agency’s effective utilization of knowledge/skills gained
                                     by employing participant(s) at appropriate level(s)

3. TCI/PMO                          Identification of training/study tour programme
                                    Selection of qualified candidates based on internal guidelines of the
                                     institution and documentation of the selection process
                                    Endorsement of candidates to UNDP-CO
                                    Making of arrangements with the training/host institution (including
                                     itinerary)
                                    Facilitation of processing of travel documents (including visas)
                                    Monitoring of participant’s progress and development of a tracer system
                                     for returning participants
                                    Facilitating evaluation of training/study tour programmes

4. UNDP-CO                          Review/approval of proposed activity and processing of nominations
                                    Only in exceptional cases, making arrangements with training or host
                                     institutions
                                    Administration of stipends/DSA per UNDP guidelines


General Procedures for Facilitating Training/Fellowship/Study Tour

Following procedures shall be followed by the UNDP-CO




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Figure 13.1   Procedures for Training/Fellowship/Study Tours

                                  Based on project requirements, budget and approved WFP
         PMO/TCI IDENTIFIES
                                  PMO/TCI shall identify and make initial arrangements with training/host
         SPECIFIC ACTIVITY,
                                   institution
           PRE-QUALIFIES
                                  Participants shall be selected based on established criteria and selection process
          PARTICIPANTS &
                                   (See Annex 13A for nomination forms)
           ENDORSES TO
             UNDP-CO              Proposal shall provide following information: i) relevance of activity to project
            CLEARANCE              objectives and expected benefits; ii) proposed participants and justifications; iii)
                                   schedule, proposed budget, itinerary; and iv) plans for dissemination of
                                   knowledge/skills; together with UNDP fellowship/study tour for nomination
                                   form

                                      Once proposed activity and participants are cleared, UNDP-CO shall send
         UNDP-CO REVIEWS/
                                     nomination forms to the training institutions for review and acceptance of
             APPROVES
                                     participant(s)
             PROPOSED
            ACTIVITY &
           PARTICIPANTS


                                  PMO/TCI shall handle final arrangements with the training or host institution
         PMO/TCI FINAILIZES
                                   and the processing of all travel papers including visas
          ARRANGEMENTS
                                  Course/training fees may be paid by UNDP-CO directly to the training
         WITH TRAINING OR
                                   institution or check payment may be hand-carried by the participant
         HOST INSTITUTION
          AND PROCESSES           Refer to Chapter on Support to Foreign Training/Fellowships/ Study Tours
          TRAVEL PAPERS


         UNDP-CO RELEASES         Options taken on a case-by-case basis
           STIPEND/VISA           UNDP-CO may release stipend directly to institution for the latter’s
                                   administration
                                  UNDP-CO may release stipend/DSA to participant in lumpsum
            PARTICIPANTS
         UNDERGO TRAINING        Reporting Requirements
            /FELLOWSHIP/          Training: Completion report (topics or activities covered, comments on
          STUDY TOURS &            usefulness, recommendations for future similar training, administration-related
            COMPLY WITH            comments), training as appropriate
              REPORTING           Fellowships: Completion reports and follow-up report one year from return to
           REQUIREMENTS            country
                                  Study Tours: Completion report, debriefing sessions for project management,
              PMO/TCI              counterparts, other relevant parties
            FACILITATES
          EVALUATION OF           PMO/TCI shall consider evaluation results in future planning
             ACTIVITY &           PMO/TCI shall deploy participants to conduct training and employ them at
          USE/.SHARING OF          appropriate levels to facilitate utilization of knowledge or skills gained
              SKILLS &
           KNOWLEDGE
               GAINED


Support to Foreign Training/Fellowship/Study Tour

UNDP support shall cover only the course/training fees, most economical and direct airfare, airport
transfer and stipend/DSA based on the cost quotation of the training/host institution. The Government
Agency shall provide any other entitlements to travelling government officials.



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Evaluation of Training/Fellowship/Study Tour Programmes

Information collected from the reports of participants shall form part of documentation on overall
project progress and shall serve as inputs to tripartite and terminal reviews and evaluations. The
UNDP-CO, PMO and TCI shall jointly evaluate the usefulness and cost-effectiveness of
training/fellowship/study tour programmes based on the said reports.

                     13.2   Local Training, Workshops, Conferences and Meetings

Definitions

             Training refers to an assembly of project personnel, government counterparts, and other
              invited participants which facilitates transfer of skills or technology from the resource
              persons to the participants
             Workshop refers to an assembly of project personnel, government counterparts and other
              invited participants that facilitates a two-way sharing of information, skills and technology
             Meeting refers to a brief (as differentiated from multiday) gathering of/among project
              personnel, government counterparts and other invited individuals held for the purpose of
              discussing project-related matters.

General Policies

All training, workshops and meetings scheduled for implementation shall be in accordance with the
project’s approved WFP. Training and workshops not earlier included in the WFP shall be approved
by the UNDP-CO before these are conducted. The use of five-star or first class hotels as venue is
generally discouraged except in cases where high-level dignitaries or officials are expected as guests
or participants. Serving of modest and reasonably-priced food is generally encouraged.

Training/Workshop Proposal

The following documents shall support the request for approval of proposed trainings/workshops by
the UNDP-CO:

             Training Course or Workshop Design/Proposal
             List of proposed participants (including category and number)
             Expected outputs
             Schedule and budget; and
             Proposed resource persons

Documentation

All training, workshops, conferences and meetings shall be properly documented.
Minutes/proceedings of training, workshops and conferences shall be submitted to UNDP-CO within
15 working days from completion of the activity. Minutes of meetings shall be submitted to the
UNDP-CO or PM as appropriate within five working days from completion of the meeting. The PMO
shall provide copies of the proceedings/reports to the UNDP-CO.

Cost limits



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Cost per participant for meetings and for training/workshops/conferences shall be within the maximum
rates allowed under directly-executed projects.

Fees for Resource Persons

Fees for resource persons, moderators, facilitators and secretariat shall be within the maximum rates
allowed under the direct execution (Annex 13A)

Expenses for Meetings

The cost of shacks and meals for meetings of project personnel shall not be covered by the project.
Where the meeting is held while on duty travel, cost of food shall be paid by the project staff from
their respective DSAs. Meal expenses for meetings involving project and non-project personnel may
be reimbursed by the project provided the meeting is scheduled in line with the Work Plan and has a
structured agenda. Supporting documents shall include a copy of the minutes of the meeting, the
attendance sheet with signatures of the participants and the receipt for payment made. Reimbursement
shall be made only up to the ceiling rates allowed for such expenses.




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                   Annex 13A:         Fees for resource people, moderators, facilitators and secretariat


        Resource people                          Facilitators                          Secretariat
  International         Local          International           Local          Assistant         Secretary
US$ … per hour       US$ .. per       US$ … per hour      US$ … per         US$ … per         US$ … per
                     hour                                 hour              hour              hour
US$ … per day        US$ … per        US$ .. per hour     US$ … per day     US$ … per         US$ … per
                     hour                                                   day               day


                       Annex 13B:         Estimated tariff for conducting local training and survey

                                                                       Local                          Non-local
                       Activities


A. SEMINARS

1. Transportation costs                                    According to the rates of air, train and car fare
2. Daily Allowances (DA):       Participants:                         Leke                   Elbasan, Gramsh, Fier, etc:
                                                                                             Leke
                                                                                             Elsewhere:
                              Lecturers (per hour)                    Leke                   Leke plus DSA
                              including preparations
3.   Rent of Premises (per hour):                          Not to be paid (it if is unavoidable: Leke)

4.   Stationery (per person):                              Leke

5.  Photocopying (1 page):                                 Leke
6.  Car rent (daily)           Small car rent:             US$
                               Land Cruiser                US$                                     $0.50 per km
                               Mini Bus                    US$
7. Fuel cost (18 litres per 100 km)                        Based on km and price of fuel per litre
8. Miscellaneous                                           Not exceeding 10% of total costs

B. TRANSLATION:

1.   Interpreter                                                         Leke .. per hour or US$ .. per day

2.   Written translation page with 28-30 lines and font                        US$… - US$ .. per page
     12 including editing


C. EDITING

1. Editing page with typing 28-30 lines and font 12                            About US$ .. per page




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                              Annex 13C: Budget for local training, workshops and research
                      (to be submitted to UNDP Office together with the Request for Direct Payment)

Project No: and title:
Bank Account No:                                      Title of Activity:

                          Costs of the Activities                              Estimates              Actual Total

1.   Participants

Daily Allowances for Participants ___________ per person for
_________ persons @ ___________ days


Daily Allowances for Lecturers ___________ per person for
_________ persons @ ___________ days


Fees for Lecturers ___________ per person for _________ persons @
___________ days


Transportation costs (train, air) ___________ per person for _________
persons


Car rent ___________ (type of car) for daily rent of _________ @
___________ days


Fuel cost: Total ___________ km for Leke _________ per litre


2.   Interpretation

Interpretation ___________ person for _________ per day @
___________ days


Written translation ___________ pages for _________ per page


Editing ___________ pages for _________ per page


3.   Other costs

Rent of Premises (if required)
No: of rooms ___________ rate _________ @ days/hours


Other local costs (please specify and give details)


Signed:                              Date:                     Title:




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                                                                                            Chapter
                                                                                                 13

                               MONITORING AND EVALUATION

                   MECHANISMS:                        PROGRESS REPORTS:

                 FIELD VISITS                     QUARTERLY
                 QUARTERLY                         ACCOMPLISHMENT REPORT
                  PROGRESS REVIEWS                 ANNUAL PROJECT REPORTS
                 TRIPARTITE                       SUSTAINABILITY PLAN
                  PROGRESS REVIEWS                 TERMINAL REPORT




                                         PROJECT
                                        CLOSING


Monitoring and Evaluation

Definitions

   Monitoring is a continuing functions that aims to provide project management and main
    stakeholders of an ongoing programme or project with early indications of progress, or lack
    thereof, in the achievement of programme or project objectives. Monitoring must be undertaken
    for all programmes and projects
   Reporting is the systematic and timely provision of essential information used as a basis for
    decision-making at appropriate management levels. It is an integral part of the monitoring function
   Evaluation is a time-bound exercise that attempts to assess systematically and objectively the
    relevance, performance and success of ongoing and completed projects. Evaluations are carried out
    selectively for practical reasons
   Results is a broad term to refer to the effects of a programme or project. The terms outputs,
    outcomes and impact describe more precisely the different types of results.

While monitoring is done by persons involved in managing a programme or project, evaluation is done
by persons who have not been involved in designing or managing it.

General policy

Monitoring and evaluation are essential management functions that are interactive and mutually
supportive. They are undertaken by UNDP-CO, TCI and other stakeholders to respond better to
demands for:

          Accountability in the use of resources



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            A clear basis for decision-making; and
            Lessons learned from experience to guide future development interventions

Integrating Monitoring and Evaluation throughout the Project Cycle

            During programme or project formulation, parameters shall be set by which monitoring and
             evaluation shall be undertaken by the programme or project
            During appraisal and approval, it is the responsibility of those appraising and approving
             programmes and projects to ensure that appropriate lessons and requirements for effective
             monitoring and evaluation are incorporated in the programme or project design
            During project implementation, monitoring and evaluation shall provide information to
             support decision-making to institute corrective actions and/or reinforce early sings of
             success. To the extent possible, participatory monitoring and evaluation mechanisms must
             be used to enable stakeholders to provide their feedback. This is one way of promoting
             learning among those involved in the programme or project.
            Upon programme or project completion, monitoring and evaluation shall focus on
             identifying lessons that can potentially be applied in a broader range of development
             interventions, determining which particular groups would benefit most from such lessons,
             and ascertaining the best way to disseminate lessons to those groups.

                                                 14.1    Monitoring

General policy

            All UNDP-supported programmes and projects regardless of budget and duration shall be
             monitored;
            Responsibility for monitoring rests with the UNDP-CO under the direct execution
            UNDP-CO together with the PMO shall also undertake monitoring actions to ensure that
             programmes and projects are implemented effectively and efficiently, and are achieving the
             desired results; and
            PMOs are responsible for undertaking the monitoring actions described in this chapter.

Monitoring Mechanisms and Progress Reports

Table 14.1       Monitoring Mechanisms

Monitoring Mechanism               Purpose                     Policy                         Procedures
1. Field Visit – a direct   To enable the person     All programmes and           The person making the field
   observation of a         making the field visit   projects shall be visited    visits shall:
   programme or a           to obtain a first hand   by representatives of
   project at its site      account of the           UNDP-CO, TCI and              Obtain the views of the target
                            progress of a            project personnel at least     groups and other stakeholders
                            programme or a           once a year or as often as     on how the programme or the
                            project towards          necessary                      project is affecting them and
                            achieving the                                           their recommendations for
                            expected results         Joint field visits by          addressing relevant issues.
                            outlined in the work     UNDP and other                 Also, determine whether
                            plan                     development partners           adequate mechanisms are in
                                                     involved in the same type      place for consulting with, and
                                                     of programmes and              obtaining feedback from, the
                                                     projects shall be              stakeholders



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                                                   encouraged in order to
                                                   promote a participatory       Inspect the programme or
                                                   approach to the                project site, outputs and
                                                   discussion of similar          services, and assess their
                                                   issues with target groups      adequacy in terms of quality,
                                                   and other stakeholders         quantity vis-à-vis the expected
                                                                                  results

                                                                                 Prepare a report within 5 days
                                                                                  from completion of the visit
                                                                                  (see Annex ..A for report
                                                                                  format), highlighting
                                                                                  stakeholders’ views as well as
                                                                                  his or her own observations
                                                                                  and recommendations on how
                                                                                  to address any issues
                                                                                  concerning the programme or
                                                                                  project;

                                                                                 Provide the UNDP-CO with a
                                                                                  copy of field visit report

                                                                                 UNDP-CO to review the
                                                                                  assessment and
                                                                                  recommendations of the
                                                                                  report, and to take appropriate
                                                                                  actions. Whenever necessary,
                                                                                  the UNDP-CO refers the
                                                                                  recommendations for decision
                                                                                  by concerned entities or by the
                                                                                  tripartite review



2. Quarterly Progress         To monitor          The review shall be held        Preparation of the agenda
Review - a technical           progress of a       within 15 days from the          by PMO in consultation
working level meeting of       programme or        end of each quarter              with UNDP-CO. Agenda to
representatives from           project based on    during the lifetime of the       include 1) follow-up to
UNDP-C0, TCI                   the quarterly       programme or the project         previous quarterly meeting,
                               WFP and QAR                                          if any, 2) discussion of the
                                                                                    QAR; 3) management
                              To identify                                          actions required including
                               problems and                                         parties responsible and
                               issues &                                             timeframe for
                               determine                                            implementation; and 4)
                               appropriate                                          work plan for next quarter
                               courses of action
                                                                                   Inputs are QAR, updated
                              To take decisions                                    WFP and Financial Report
                               on
                               recommendations                                     PMO to circulate agenda
                               to improve                                           and distribute documents 1
                               programme or                                         week prior to scheduled
                               project                                              meeting
                               implementation
                               in terms of                                         PMO or UNDP-CO
                               substantive                                          representative to preside
                               accomplishments                                      over the meeting



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                               and financial
                               delivery rate;                                        PMO to prepare quarterly
                                                                                      review report (Annex 14B)
                              To plan out next                                       and to circulate copies to
                               quarter’s                                              participants within 2 weeks
                               activities                                             from the meeting

                                                                                     PMO/TCI to ensure
                                                                                      implementation of
                                                                                      decisions taken

3. Tripartite Review – a      To assess              A TPR should be held        Preparation of the agenda by
policy level meeting of        progress of a           at least once a year         PMO in consultation with
representative of UNDP-        programme or a          during the lifetime of a     TCI and UNDP-CO to
CO, TCI, direct                project based on        programme or project         include: 1) follow-up to
beneficiaries, target          the annual report                                    previous TPR or any
groups involved in a           prepared by PMO        A terminal TPR shall         evaluation of the programme
programme or a project                                 be held within six           or project; 2) discussion of
                              To take decisions       months prior to              the APR; 3) management
                               on                      programme or project         actions required including
                               recommendations         completion                   parties responsible and
                               to improve the                                       timeframe for
                               design,                UNDP-CO shall be             implementation; 4) work plan
                               implementation          responsible for              for next TPR, and 5) discuss
                               and results of that     organizing the TPR in        need for evaluation
                               programme or            consultation with the
                               project in order to     TCI, and for ensuring       Inputs are the agenda, APR,
                               achieve the             that decisions are taken     updated WFP, for the
                               expected results        on important issues          terminal TPR, a sustainability
                                                                                    plan

                                                                                   PMO to submit APR and
                                                                                    other documents to UNDP-
                                                                                    CO one month prior to
                                                                                    scheduled TPR, PMO to
                                                                                    circulate agenda to
                                                                                    participants three weeks prior
                                                                                    to scheduled TPR

                                                                                   UNDP-CO representative to
                                                                                    preside over the meeting

                                                                                   TCI or PMO to prepare TPR
                                                                                    Report (Annex 14C) and to
                                                                                    circulate copies to
                                                                                    participants within 2 weeks
                                                                                    from the meeting

                                                                                   UNDP-CO to ensure
                                                                                    implementation of decisions
                                                                                    taken




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Table 14.2        Progress Reports

 Progress Report             Purpose           Contents/Structure            Procedures              Actions to be Taken
1. Quarterly             To present            To be a source of         PMO/TCI to             The TCI, through the
Accomplishment            programme or           inputs to UNDP-            prepare the QAR        Government
Report – an               project                CO reports,                                       representative/PMO
assessment by the         implementors’          annual & triennial        QAR to be              project personnel, to
UNDP-CO of                insights on issues     reviews of the             submitted to           present the QAR in the
progress achieved         affecting              CCF                        UNDP-CO one            quarterly review
in a particular           programme or          Compares planned           week prior to          meeting
quarter in terms of       project                activities and             scheduled meeting
substantive &             implementation         projected financial
financial                 and their              disbursements             TCI/PMO to
accomplishments           recommendations        with actual                organize meeting
(Annex 14D                for addressing the     accomplishments            and inform UNDP-
presents the QAR          issues                 during the quarter         CO of schedule
report format)                                  Identifies
                         To serve as an         issues/problems
                          input to the           encountered,
                          quarterly review       proposes
                          meetings and           appropriate
                          TPRs                   courses of actions
                                                 and anticipates
                                                 actions needed to
                                                 be done to
                                                 facilitate next
                                                 quarter’s work
                                                 plan


2. Annual Project        To provide a          APR is divided            The TCI/PMO             The TCI, through the
Report – an               rating and textual     into 3 parts: Part I       shall be responsible     Government
assessment of a           assessment of the      requests a                 for preparing the        representative/PMO
particular                progress of a          numerical rating           APR in                   project personnel, to
programme or              programme or           of a programme             consultation with        present the APR in
project during a          project in             project relevance          the stakeholders         the TPR, highlighting
given year by             achieving              & performance as          The TCI/PMO              policy issues and
target groups,            expected results       well as overall            must submit APR          recommendations for
PMO, UNDP-CO.                                    programme or               to UNDP-CO one           the decision of the
Annex 14E                To present             project rating             month prior to           participants. The
presents the APR          stakeholders          Part II asks for a         scheduled TPR            representative of the
report format             insights on issues     textual assessment         meeting; UNDP-           TCI/PMO personnel
                          affecting              or project,                CO circulates APR        also informs the
                          programme or           focusing on major          to TPR participants      participants of any
                          project                achievements,              two weeks prior to       agreement reached by
                          implementation         early evidence of          scheduled meeting        stakeholders on the
                          and their              success,                                            APR preparation
                          proposals for          issues/problems,                                    process on how to
                          addressing the         recommendations                                     resolve the
                          issues                 and lessons                                         operational issues.
                                                 learned                                            TPR participants to
                         To serve as an        Part III consists of                                review the APR and
                          input to the TPRs      a summary table                                     take decisions on the
                          and any                with two sections:                                  recommendations. If
                          evaluations of the     one section reports                                 decision is not to
                          programme or           of resources and                                    accept the
                          project                expenditures and                                    recommendation of



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                                                  the other                                            the APR, the TPR
                          To be a source of      highlights                                           report shall explain
                           inputs to the          progress towards                                     basis for such a
                           preparation of         achieving                                            decision
                           UNDP-CO                expected results
                           reports, annual      Annexes may be
                           and triennial          included as
                           reviews of the         necessary to
                           CCF                    provide specific
                                                  information in
                                                  support of the
                                                  rating and
                                                  assessment
                                                  indicated
3. Sustainability       To present             Mechanisms and         Initial plan to be           PMO/TCI to present
Plan – indicates         stakeholders’           courses of actions      described in the PSD or       plan at the terminal
arrangements to be       insights on             for                     a project document            TPR
made by major
                         mechanisms for          institutionalizing     Plan is gradually fleshed    PMO/TCI to submit
stakeholders to                                                          out through project
institutionalize         utilizing their         enhanced capacities                                   plan to evaluators in
                                                                         implementation
                         enhanced capacities    Responsibilities of                                   conduct of
capacities developed                                                    Plan finalized 6 months
by a programme or a      for technical and        parties concerned      prior to scheduled            expost/impact
project                  management aspects     Timetable of            project completion date       evaluation.
                                                  implementation
4. Terminal
Report – see
chapter 16

               14.2    Revisions to Programme Support Documents and Project Documents

Policies

              A PSD or project document may be revised at any time by agreement among the
               signatories to the document. The purpose of revising it is to make substantive or financial
               adjustments and improvements to a programme or project (Refer to Section .. for
               discussion on budget revisions).
              Whenever progress towards the achievement of results is not satisfactory, UNDP-CO must
               take steps to resolve the problems and, if necessary, to modify the design of the programme
               or project. A formal change in the design is called substantive revision.
              The policies and procedures set out in Chapter 3 and 4 for the formulation and approval of
               PSDs and project documents also apply to their revision
              UNDP may not approve a revision that extends the total duration of its support to a single
               national programme or project beyond seven years. If assistance beyond seven years is
               justified, a new PSD or project must be formulated. Also, the current one may have to be
               evaluated (Refer to Section 14.3 for policies on evaluation).

Substantive Revisions

              Substantive revisions are made in response to changes in the development context or to
               correct flaws in the design that emerge during implementation. Examples of flaws
               justifying revision are unclear objectives, unclear expected results or absence of indicators,
               making difficult to measure success; unrealistic assumptions or conditions that are not




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           materializing; activities that are insufficient to produce the planned outputs. In some cases,
           corrections may be introduced in the work plan instead of a full revision
          Substantive revision may be made at any time during the life of the programme or project.
           They may be prompted by reports or by monitoring, evaluation or review activities. Where
           a programme or project is not proceeding as planned, the UNDP-CO must discuss its
           partners how to improve the situation and raise the issue at the next tripartite review.
          Substantive revisions are made through a revision document describing changes in the
           relevant sections of the PSD or project document. The revision document is signed by all
           signatories to the original PSD or project document. See Annex .. for the standard revision
           cover page.
          Where there are extensive changes to the programme or project and series difficulties in
           achieving results are encountered, a redesign may bring a permanent solution. In such
           cases, the parties must consider suspension of activities and, where appropriate, a new PSD
           or project document must be formulated. Refer to Section … for discussion on suspension.
          The parties may decide to extent the duration covered by a PSD or project document to
           take account of delays in implementing certain activities and therefore in producing the
           results. Such extensions do not entail a substantial change in the overall budget. If one or
           more of the parties proposes a substantial change in the budget, it is a sign of a series defect
           in the design.

                                           14.3   Evaluation

Policy on Coverage

Evaluation shall be undertaken on a selective basis in view of the magnitude of costs and time
required. Some evaluations are mandatory, others are not.

Mandatory Evaluation

       Purpose

Mandatory evaluation is applied in certain cases to ensure that:

          An adequate number of programmes and projects from which lessons could be drawn to
           support organizational learning; and
          Significant financial coverage, i.e. the magnitude of financial resources represented by
           programmes and projects evaluated, to support the accountability of the UNDP
           Administrator.

       Criteria

Evaluation is mandatory in the following situations:

          When a programme or project has a budget of US$1 million or more at any point during
           the lifetime of the project; and
          When UNDP has been supporting an institution for 10 years or more. Under this criterion,
           the mandatory evaluation must cover all programmes or project through which UNDP-CO
           has channeled its support to the institution concerned.


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       Compliance

Compliance with mandatory evaluations is enforced and used as an indicator for assessing
management performance

Determent of Mandatory Evaluation

The UNDP-CO, in consultation with the main stakeholders, may defer the conduct of the mandatory
evaluation owing to security risks, complex development situations or a crisis. When the situation
improves, the mandatory evaluation must be scheduled as part of the country-level evaluation plan.

Acceptable Reasons for Not Conducting a Mandatory Evaluation

          The programme or project has been cancelled; or
          The programme or project has been evaluated by a development partner and the substantive
           concerns of UNDP-CO have been adequately assessed by that evaluation

Among the reasons that are not acceptable as justifications for non-compliance with the mandatory
evaluation policy include resource constraints, programme or project claimed to be successful, and
programme or project has been completed or closed.

Non-Mandatory Evaluation

Although it is not necessary to evaluate all UNDP-assisted programmes or projects, the evaluation of
innovative and/or strategic types of programmes or projects is encouraged in order to broaden the
knowledge base for improving the quality of future development interventions.

Types of Evaluations

       a) By agent

          Internal or self-evaluation: an evaluation conducted by those directly involved in the
           formulation, implementation and management of the programme or projects, and
          External or independent evaluation: an evaluation conducted by those not directly involved
           in the formulation, implementation and management of the programme or project

       b) By timing

          Midterm evaluation: an evaluation conducted at the mid-point of programme or project
           implementation
          Terminal evaluation: an evaluation conducted at programme or project completion; and
          Expost evaluation: an evaluation conducted two or more years after programme or project
           completion

       c) By scope

          Project evaluation: evaluation of a single project


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          Programme evaluation: evaluation of a programme (i.e., an intervention under a PSD using
           the programme approach), a CCF, etc;
          Sectoral evaluation: cluster evaluation of projects or programmes in a sector or subsector;
           and
          Thematic evaluation: cluster evaluation of projects or programmes addressing a particular
           theme that may cut across sectors or geographical boundaries

       d) By Specific Issues and Focus

          Policy evaluation: evaluation of programmes and projects dealing with particular issues at
           the sectoral or thematic level;
          Strategic evaluation: evaluation of a particular issue where timing is especially important
           owing to the urgency of the issues which also poses high risks to; and has generated widely
           conflicting views from, stakeholders, and
          Process evaluation: evaluation of programmes and projects to assess efficiency and
           effectiveness of a particular process or modality

Planning and Managing an Evaluation

The UNDP-CO is responsible for planning and managing an evaluation. It is also responsible for
ensuring that evaluations are carried out at the appropriate time, follow a methodology (including team
composition) that ensures that critical issues will be objectively examined, and produce the expected
results. The following steps shall be followed in planning and managing an evaluation: advance
preparation; formulating the TOR, organizing the TOR and managing the evaluation.

Advance Preparation

The staff designated, depending on who initiates the evaluation (i.e. UNDP-CO or Government), shall
ensure availability of clear information on the initiator of the evaluation, purpose of the evaluation,
expected outputs and evaluation stakeholders.

Formulating the TOR

The TOR is a document that defines, among others, the issues that the evaluation should address and
the outputs from the evaluation. As such, it serves as useful tool for ensuring that the evaluation is
effectively carried out. The following procedures shall be carried out when preparing the TOR:

          Invest adequate time in formulating and refining the TOR
          Involve key stakeholders in the process to reflect their views and interests in the TOR
          Include the following elements in the TOR:

           1)   Introduction
           2)   Objective of the evaluation
           3)   Scope of the evaluation
           4)   Issues to be addressed by the evaluation
           5)   Products expected from the evaluation
           6)   Methodology or evaluation approach
           7)   Composition and responsibilities of the evaluation team


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               8) Implementation arrangements

Organizing the Evaluation

The following steps shall be undertaken in organizing the evaluation:

Figure 14.1        Steps in Organizing a Project Evaluation

                                                                Normally, UNDP-CO and the TCI are represented on the
                  Step 1. Organize the evaluation team           team. Objectivity and independence as well as
                                                                 competence in the field covered by the programme or
                                                                 project to be evaluated, are the principal criteria used in
                                                                 selecting team members.


                    Step 2. Make necessary logistical
                             arrangements



              Step 3. Arrange for stakeholders participation
              in various stages of evaluation as appropriate


Managing the Evaluation

The staff designated for this purpose shall facilitate the following arrangements to ensure that the
evaluation team is fulfilling the TOR through arrangements such as:

              Briefings on the progress of the evaluation
              Preparation of an issues report midway through the evaluation to indicate the preliminary
               findings of the evaluation
              Validation of preliminary findings with stakeholders; and
              Formal debriefing

Evaluation Report and Project Evaluation Information Sheet (PEIS)

Definition and Purpose of an Evaluation Report

An evaluation report is an objective report that contains the evaluators’ assessment in fulfillment of
the TOR. It is a product of an independent evaluation team. As such, an evaluation report must not be
altered in substance by the Government or UNDP.

Contents of an Evaluation Report

              Findings – A finding is a factual statement about a project based on empirical evidence
              Conclusions – A conclusion is a reasoned judgement based on a synthesis of empirical
               findings or factual statements that correspond to a specific circumstances
              Recommendations – A recommendation is a proposal for action to be taken in a specific
               circumstances, including the parties responsible for that action; and




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            Lessons learned – A lesson learned is learning from experience that is applicable to a
             generic situation rather than a specific circumstances.

Table 14.3        The PEIS

     Definition                Purpose                 Policy              Procedures              Distribution of
                                                                                                     Documents
The PEIS is a            To capture the          The evaluation team   The evaluators, as a     The evaluation team
presentation of basic    evaluators’             leader must submit    team, shall discuss      shall submit 5
information on the       assessment of a         the PEIS together     and prepare the PEIS     copies of the
project evaluated and    project in a form       with the evaluation   once they have           evaluation report
the evaluators’ rating   that allows the         report (Annex 14F)    agreed on the            and a copy of the
and textual              UNDP Evaluation                               findings, conclusions,   PEIS to the UNDP-
assessment               Office to extract the                         recommendations and      CO. UNDP Resident
                         information easily.                           lessons learned to be    Representative shall
                         The information                               incorporated in their    ensure that the
                         from the PEIS is the                          final evaluation         following parties
                         institutional memory                          report. The team         receives a copy of
                         on the relevance,                             leader shall ensure      the evaluation
                         performance and                               that the PEIS is         report:
                         success of UNDP-                              completed and             UNDP-CO
                         supported projects                            submitted along with      UNDP
                                                                       the evaluation report         Evaluation
                                                                       itself                        Office (copy of
                                                                                                     both the
                                                                                                     evaluation
                                                                                                     report and the
                                                                                                     PEIS)
                                                                                                 TCI

Actions on the Evaluation Report and the PEIS

            The UNDP-CO shall implement the recommendations on operational issues, as it deems
             appropriate
            The UNDP-CO may request a TPR to review and take decisions on recommendations
             regarding policy issues
            The main stakeholders of the programme or project (i.e. the target groups, the Government,
             the UNDP) shall assess the implementation status of the evaluation recommendations when
             they prepare the APR; and
            The UNDP-CO shall disseminate the information on lessons learned from the project
             evaluation report to government staff concerned and shall develop a system to ensure that
             said information are duly considered in the preparation of future projects.




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                                           Annex 14A:         Field Visit Report Form

General Instructions

Use this form to prepare your field visit report. Be concise in presenting your assessment of the programme or project. In
writing your findings, conclusions and recommendations, reflect the views of stakeholders, especially the target groups,
whom you have interviewed. Be sure to list in an annex the names of persons whom you met and the organizations they
represent. Provide your office and the designated institution with copies of this report.

I.         Basic programme or project information

Programme or Project number and title: _____________________________________________________

Designated institution:                       __________________________________
Implementing agency(ies):                     __________________________________

Project starting date:
         Originally planned ______________________Actual____________________

Project completion date:
         Originally planned ______________________New_____________________

II.        Purpose of the field visit

       The general purpose of a field visit is to obtain a first-hand account of the progress in achieving programme or project
       results. In addition to this, however, list any special objectives that you might have, e.g., to look into reported refusal
       of farmers to use new agricultural practices being introduced by the programme.

III.       Findings

State facts on the status of the programme or project in terms of producing expected results, using established indicators
and benchmarks. Present significant issues that need to be addressed, and, similarly, any observed opportunities for
improving the programme or project.

IV.        Conclusions

Based on your findings, state whether or not the programme or project is making progress as planned. If you had any
special objective in making the field visit, also include your conclusions relating to it.

V.         Recommendations

State your recommendations clearly. Describe the actions proposed. Identify who are responsible for implementing them.
Provide an indication of the timeframe and any significant resources required.

_______________________________ __________________________
Name                               Signature
_______________________________ __________________________
Title                               Date of visit
___________________________________________________________
Organization represented

VI.        Field visit report annex

           List of persons met and the organizations they represent




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                                      Annex 14B:         Tripartite Review Report Form

I.         Basic Programme/Project Information

Programme/Project number and title:____________________________________________________

Designated institution: ______________________________________________
Implementing agency: ________________________________________________
Project starting date:
         Originally planned__________________________Actual______________
Project completion date:
         Originally planned__________________________New________________
Total budget (US$):
         Original_______________Latest signed revision_____________
Period Covered by the Report________________________________
Date of the Tripartite Review_________________________________

II.        Follow-up to the Previous TPR or Evaluation

           Briefly discuss the status of any follow-up action to the previous TPR or evaluation, if one was conducted.

III.       Conclusions of the Review

           Based on the assessment of the annual programme/project report (APR), briefly discuss the TPR conclusions on
           the following:

          Programme or project relevance, performance and potential success; and
          Issues and problems in programme or project design and implementation.
          Significant actions to be taken regarding the short-term programme or project strategic plan

IV.        Decisions Taken

           List decisions taken with a brief discussion of the basis for each. Indicate the parties responsible and the time
           frame for implementing each decision.

V.         Need for an Evaluation

           If the TPR decides to have the programme or project evaluated, indicate why and when the evaluation will be
           conducted and the issues that the evaluation will address.

           ___________________________________
           Name of the Resident Representative
           ___________________________________
           Signature
           ___________________________________
           Date Report Prepared

VI.        Tripartite review report annex

Names of TPR participants and organizations represented




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                                        Annex 14C:        Quarterly Review Report

     ___________________________________________________________ (PSD/project document Number and Title)

                                       For _____________________ (quarter / year)

Impact:

                                  Narrative part of the Progress Report should include

1.    Major achievements of the subprogramme (component), with the assessment of impact, sustainability and contribution
      to the capacity development.
2.    Major problems encountered during quarterly implementation activities with the recommended actions for resolving or
      improvement.
3.    Major variances from the Work Plan.
4.    Lessons learned.


                                Annexes to be attached to the narrative part of the report

1.    Update on the indicators
2.    Financial Report (using the format of the Financial Forecasts)
3.    Work Plan for the respective quarter
4.    The new Work Plan for the next quarter, as well as Financial Forecast




     __________________________________________________________________ (PASD/Project Number and Title)

                                       For _____________________ (quarter / year)
Objective:


        Outputs                             Output indicators                             Update on progress
Output 01                     Output Indicator 1
Output 02                     Output Indicator 2


Prepared by PO ______________
Date _________________




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                              Annex 14D:          Annual Programme/Project Review (APR)

Basic Programme/Project Information (To be provided by programme/project management)

Programme/project number and title: _____________________________________________________
Designated Institution: ______________________________________________________
Project starting date
     Originally planned: ____________________ Actual: ____________________
Project completion date
     Originally planned: _______________ Actual: ____________________
Total budget (US$)
     Originally:__________________ Latest signed revision: __________________
Period covered by the report: ______________________________________________


PART I. NUMERICAL RATING

Rate the relevance and performance of the programme or project using the following scale:

1   Highly satisfactory
2   Satisfactory
3   Unsatisfactory, with some positive elements
4   Unsatisfactory
X   Not applicable

Place your answers in the column that corresponds to your role in the programme or project.

 SUBSTANTIVE FOCUS                                             Target          Programme or   Government   UNDP
                                                               Group(s)        Project
                                                                               Manager
 Relevance
 1. How relevant is the programme or project to the
 development priorities of the country?
 2. How relevant is the programme or project to the
 promotion of sustainable human development?
 3. Are appropriate beneficiary groups being targeted by the
 programme or project?
 4. Does the programme or project address the gender-
 differentiated needs of the target groups?
 5. Given the objectives of the programme or project, are
 the appropriate institutions being assisted?
 Performance
 1. Using the following indicators, rate the contribution of
 the outputs to the achievement of the immediate
 objectives:
 a. (Indicator 1)
 b. (Indicator 2)
 c. (Indicator 3)
 2. Rate the production of target outputs.
 3. Are the management arrangements of the programme or
 project appropriate?
 4. Are programme or project resources (financial, physical
 and manpower) adequate in terms of:
 a. quantity?



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 b. quality?
 5. Are programme or project resources being used
 efficiently to produce planned results?
 6. Is the programme or project cost-effective compared to
 similar interventions?
 7. Based on its work plan, how would you rate the
 timeliness of the programme or project in terms of:
 a. production of outputs and initial results?
 b. inputs delivery?

* Prior to the distribution of the form, the indicators must be listed, as reflected in the programme support document or
project document or as agreed on by the stakeholders.

Please indicate your overall rating of the programme or project using the following letters:

A   Highly satisfactory
B   Satisfactory
C   Unsatisfactory, with some positive elements
D   Unsatisfactory
X   Not applicable

 SUBSTANTIVE FOCUS                         Target Group(s)      Programme or            Government            UNDP
                                                                Project Manager
 Overall rating of the programme or
 project

Explain the basis of your rating, which need not be limited to, or which may be different from, the relevance and
performance criteria rated above. For the last year of the programme or project, the overall rating should include an
assessment of the potential success of the programme or project as well as its relevance and performance.

PART II. TEXTUAL ASSESSMENT

1. What are the major achievements of the programme or project vis-à-vis its objectives? Please explain them in detail in
terms of potential impact, sustainability of results and contribution to capacity development.

2. What factors affected the implementation of the programme or project?

3. What lessons (both positive and negative) can be drawn from the experience of the programme or project?

4. What are the views of the target groups with regard to the programme or project? Please note any significant gender-
based differences in those views.

5. If the programme or project has been evaluated, what is the implementation status of the recommendations made by the
evaluators?

6. What activities or steps do you recommend as follow-up to the project?

11. Do you propose any substantive revision to the programme or project document. If yes, what are they? State
justification

8. Provide any other information that my further support or clarify your assessment of the programme or project. You may
include annexes as you deem necessary




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For target groups:
Name:
Title:
Signature:                                 Date:
For the programme or project management:
Name:
Title:
Signature:                                 Date:
For the government:
Name:
Title:
Signature:                                 Date:
For UNDP:
Name:
Title:
Signature:                                 Date:




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PART III:         Programme or project summary table

Programme/project title and number:                                                      Management arrangement:
Designated Institution:                                                                  Period covered

                                                                         OVERALL ASSESSMENT

Brief analysis of progress achieved in the contribution of the programme or project to the expected results


                                                                         FINANCIAL SUMMARY

Source of funds                             Annual budget                                Estimated annual expenditure      Delivery rate:
                                            ($’000)                                      ($’000)                           (%)
TRAC (1 and 2)
TRAC 3
Other

Cost-sharing:
        Government
        Financial institution
        Third Party

Trust funds
AOS (where applicable)




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                                            SUMMARY OF RESULTS

            Programme support objectives           Indicators                            Achievements
           (PSOS) or immediate objectives
Obj 1
Obj 2
Obj

               Annual output targets         Achievement of outputs         Proposed output targets for the next year

Obj.1

Output 1
Output 2
Output 3
Obj.2

Output 1
Output 2
Output 3




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                                    Annex 14E:      Standard Revision Cover Page

                                                 Government of Albania

                                 UNITED NATIONS DEVELOPMENT PROGRAMME

PSD/project number:          ALB/../..                        Initial/revised input
PSD/project title:                                            UNDP
Source of fund:                                                         Previous input – Rev.A (line 99)       $
                                                                        Revised input – Rev. B (line 99)       $
Management arrangement: Direct Execution                                Input increase/decrease                $

Government Counterpart                                                   UNDP                                  $
Agency:                                                                  Government cost-sharing               $
                                                                         Financial institution                 $
New/Revision Code:                                                       Third Party cost-sharing              $

Revision Reason:                                              Administrative and operational services:
                                                                      Previous AOS input:                      $
Operational start date:                                               Revised AOS input:                       $
                                                                      AOS input increase/decrease              $
Field work completion date:
                                                                         UNDP                                  $
Financial completion date:                                               Government cost-sharing               $
                                                                         Financial institution                 $
Justification:                                                           Third Party cost-sharing              $




This mandatory revision reflects the actual year-end expenditure for 2000. Project inputs have been re-phased to 2001,
accordingly. [For substantive revisions, explain on the cover page how and where the revision was agreed to, and say
that the justification and detailed changes are provided in attached pages.]

On behalf of:                Signature                        Date               Name/Title




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                                     Annex 14F:            Project Evaluation Information Sheet
Part 1:      Basic Project Information

1.    Project Number:             ________________________        Use the format ALB/../..*1
                                                                  *1 signifying the number of times the project has been evaluated
2.    Project Title:              ________________________
                                  ________________________
                                  ________________________
                                  ________________________

3.    Designated Institution:               _____________________           Use English acronyms only (e.g ILO rather than OIT)
4.    Budget at the time of Evaluation:     ______________
5.    UNDP Contribution                     ______________
6.    Cost-sharing                          ______________
7.    ACC Sub-sector                        ______________ (four digits)
8.    Current Phase of the project          ______________
9.    Scheduled completion date of the project       Day ____ Month ____ Year ____
      Project approval date                          Day ____ Month ____ Year ____
10.   Regional Bureau:                               ______________
11.   Year of Evaluation                             ____ (Two digits)
12.   Type of Evaluation:          __________        1E=Mid-term
                                   __________        2E=Terminal
                                   __________        3E=Ex-post
13.   Functional Description:               PRIMARY ______________ (see descriptor list at the end of this information sheet)
                                            SECONDARY ___________
14.   Thematic Description: UNDP projects focus on building and strengthening national capacity in one or more of the following areas. Use
      7A“Yes”, 1B “Partially” and 6B“No”:

                 Poverty eradication and grass-roots participation           ________________
                 Environment and natural resources management                ________________
                 Management development                                      ________________
                 Technical cooperation among developing countries            ________________
                 Transfer and adaptation of technology for development       ________________
                 Women in Development                                        ________________

15. Project Descriptors           __________________              ____________________ See descriptors list at the end of this
                                  __________________              ____________________ information sheet

16. Report Descriptors            __________________              ____________________             See descriptors list at the end of this
                                  __________________              ____________________             information sheet

17. Cluster Evaluation            __________________ 7A=Yes, 6B=No

18. This project is the lead      _________________ 7A=Yes
    project in the cluster                          6B=No
                                                    1D=not applicable

19. For cluster evaluation list _______________        1D if not applicable
    projects, starting with the lead project

Representation on the evaluation mission

20. UNDP                          ________________________        1S=Consultant
                                                                  2S=Staff

21. Designated institution        ________________________        3S=Bot consultant and Staff

22. Government                    ________________________        6B=No

23. Others                        ________________________




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Part 2: Terms of Reference (TOR) of the evaluation mission

1. Was the TOR project-specific?                _________________ 7A=Yes
                                                                                   6B=No

Did the TOR require assessment of:

2. Project design?                                         _________________

3. Personnel?                                              _________________

4. Equipment?                                              _________________

5. Training?                                               _________________

6. Management?                                             _________________

7. Results?                                                _________________

8. Effectiveness?                                          _________________

9. Capacity building?                                      _________________

10. Environment impact?                                    _________________

11. Women in development?                                  _________________

12. Impact on the beneficiaries?                           _________________

13. Sustainability?                                        _________________

14. Coordination with other                                _________________
    development efforts in the country

Part 3: Project design

            All questions in this section refer to the current design of the project. In other words, if the original objectives, outputs, inputs and
activities of the project have been modified, the questions refer to the modified versions.

1. How well was the project designed?                      _________________                   1A=Very good
                                                                                               2A=Good
                                                                                               6A=Satisfactory
                                                                                               4B=Poor

Please respond to this question only after answering the following questions:

2. Has the design of the current phase                     ________________                    7A=Yes
   built on the results of previous phase(s)?                                                  1B=Partially
                                                                                               6B=No
                                                                                               4N=Current Phase is Phase 1

3. Was the project linked to important                     ________________                    7A=Yes
   national/sectoral objectives                                                                1B=Partially
                                                                                               6B=No

4. Was the project designed within the                     _________________
   framework of a programme approach?

5. Did the project have linkages with other                _________________
   projects funded or not by UNDP?

6. Did the project design take account of                  _________________




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   socio-economic factors?


7. Were the beneficiaries/target groups identified        _________________


8. Were the beneficiaries/target groups                   _________________
   consulted in the formulation stage

9. Were the immediate objectives clear?                   _________________

10. Were the immediate objectives                         _________________
    internally consistent?

11. Do the outputs and activities logically lead to the   _________________
    achievement of the immediate objectives?


12. Did the results include success criteria              _________________

13. Are the immediate objectives will relevant?           _________________


14. Were the immediate objectives overly ambitious?       _________________


15. Were the external assumption optimistic               _________________

16. Did the project have a realistic time frame?          _________________


17. Was the institutional arrangement appropriate         _________________


18. Was the design of the project (objectives,            _________________
   outputs, inputs and activities) modified
  during project implementation?

19. Did the mission draw any major findings or lessons?_________________ 7A=Yes (see part X)
                                                                         6B=No

Part 4: Project Personnel

1. Main composition of international personnel            _________________ 1P=Long-term experts
                                                                            2P=Short-term experts
                                                                            3P=Consultants
                                                                            4P=Associate experts
                                                                            5P=UNVs


2. Appropriateness of international personnel             ________________ 1A=Very good
                                                                           2A=Good
                                                                           6A=Satisfactory
                                                                           4B=Poor

3. Performance of international personnel                 ________________

4. Was there a shortage of international personnel        ________________ 7A=Yes
                                                                           6B=No

5. Were there delays in the arrival of                    ________________
   international personnel




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6. Was the international personnel fully utilized?   ________________


7. Was the international personnel                   ________________

  involved in training staff counterpart

8. Did the project make use of national experts      ________________

9. Appropriateness of national experts               ________________ 1A=Very good
                                                                      2A=Good

10. To what extent were national fully utilized      ________________ 6A=Satisfactory
                                                                      4B=Poor
                                                                      1D=Not applicable
11. Performance of national experts                  ________________

12. Appropriateness of counterpart staff             ________________

13. Performance of counterpart staff                 ________________

14. Was there a shortage of counterpart staff        ________________ 7A=Yes
                                                                      6B=No

15. Were there delays in the appointment             ________________
   of counterpart staff?

16. Did the international personnel include women?   _________________ 7A=Yes
                                                                       6B=No

17. Did the national personnel include women?        _________________


18. Did the counterpart staff include women?         _________________
   19. Did the project suffered from high            _________________
   national staff turnover?

20. Did the mission arrive at any major findings/lessons?_________________ 7A=Yes (see part X)
                                                                           6B=No

Part 5: Training

1. Fellowship training                               ___________________            1A=Very good
                                                                                    2A=Good
                                                                                    6A=Satisfactory
                                                                                    4B=Poor
                                                                                    1D=Not applicable

2. Did the fellowship trainees include women         ___________________            7A=Yes
                                                                                    6B=No

3. Was there a shortage of fellowship training candidates?___________________


4. Were there delays in fellowship training?         ___________________


5. Were the fellowship trainees fully utilized       ___________________


6. Did the fellowship candidates have                ___________________
   language problems?




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7. In-service training?                               ___________________        1A=Very good
                                                                                 2A=Good
                                                                                 6A=Satisfactory
                                                                                 4B=Poor
                                                                                 1D=Not applicable


8. Was there a shortage of in-service trainees?       ___________________        7A=Yes

                                                                                 1B=Partially

                                                                                 6B=No
                                                                                 1D=Not applicable

9. Were there delays in-service training              ___________________

10. Were the on-the-job traineers significantly utilized? ___________________

11. Was the training methodology appropriate?         ___________________


12. Did the mission make any major findings?          ___________________        7A=Yes (see part X)
                                                                                 6B=No

Part 5: Equipment and infrastructure

1. Overall assessment of the contribution             ___________________        1A=Very good
   of the equipment to project results                                           2A=Good
                                                                                 6A=Satisfactory
                                                                                 4B=Poor
                                                                                 1D=Not applicable

2. Were there delays in the procurement of the equipment___________________      7A=Yes
                                                                                 1B=Partially
                                                                                 6B=No
                                                                                 1D=Not applicable

3. Was the equipment of suitable quality?             ___________________

4. Was the equipment of suitable quality?             ____________________

5. Was the equipment significantly utilized?          ____________________

6. Was there a shortage of spare parts?               ____________________

7. Was the equipment properly maintained?             ____________________

8. Can the use of the equipment be                    ____________________
   sustained after project completion?

9. Were there problem with the provision              ____________________
   of physical facilities?

10. Were there problems with transport facilities     ____________________


11. Did the mission make any major findings           or draw   ____________________       7A=Yes (see part X)
    any major lessons related to equipment                                        6B=No


Part 7: Management

1. How well was the project managed on the whole?     ____________________       1A=Very good




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                                                        ____________________              2A=Good
                                                                                          6A=Satisfactory
                                                                                          4B=Poor

2. Was the project managed by only a                    ____________________              7A=Yes
   National Project Director?                                                             2A=Good
                                                                                          6A=Satisfactory
                                                                                          4B=Poor



3. How well was the project monitored?                  ____________________              1A=Very good
                                                        ____________________              2A=Good
                                                                                          6A=Satisfactory

                                                                                          4B=Poor

4. Assessment of UNDP field support                     ____________________

5. Agency backstopping                                  ____________________

6. Coordination among Government, Agency and UNDP?____________________


7. Coordination with other development                  ____________________
   efforts in the country?

8. Was the work plan realistic?                         ____________________              7A=Yes
                                                                                          6B=No
                                                                                          6D=No work plan exists

9. Did the project experience overall delays?           ___________________               7A=Yes
                                                                                          6B=No

10. What was the overall impact of the delays?          ___________________               3C=Potential setbacks were overcome
                                                                                          4C=Peromant setbacks
                                                                                          8B=None significant
                                                                                          1D=Not applicable

11. Did the mission make any major findings?            ____________________              7A=Yes (see part X)
                                                                                          6B=No

Part 8: Government Support

1. Overall government support for the                   ____________________              1A=Very good
                                                                                          2A=Good
                                                                                          6A=Satisfactory
                                                                                          4B=Poor
                                                                                          1D=Not applicable

Please characterize, when applicable, the effect on the following government policies on the project:

2. Personnel                                            ____________________              1C=Positive
                                                                                          2C=Negative
                                                                                          1D=Not applicable

3. Training:                                            ____________________

4. Research                                             ____________________

5. Procurement                                          ____________________

6. Pricing and Tax                                      ____________________




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7. Foreign trade                                         ____________________

8. Sector                                                ____________________

9. Region                                                ____________________

10. Participatory development                            ____________________

11. Gender consideration                                 ____________________

12. Environment                                          ____________________

13. Others (specify)                                     ____________________              7A=Yes (see part X)
                                                                                           6B=No

14. Did the experience of this particular project       ____________________               7A=Yes (see part X)
    highlight a need for a change in government policy?                                    6B=No

15. Did the mission make any major                       ____________________              7A=Yes (see part X)
   or draw any major lessons?                                                              6B=No

Part 9: Results
Complete either part A or part B depending on the type of evaluation

A.          Mid-Term Evaluation

1. What is the overall achievement of the                ____________________              4A=Exceeds target
   project at the time of the evaluation                                                   8A=On target
                                                                                           3B=Below target

Please before responding to this question, keep in mind the guidance provided in pages 22 to 25 of this chapter and try to respond first to the
following questions:

2. Was the project purpose relevant?                     ____________________              7A=Yes
                                                                                           1B=Partially
                                                                                           6B=No

3. Was the project approach appropriate                  ____________________

4. Was the modality of execution adequate                ____________________

5. Have the beneficiaries of the project been            ____________________
   Reached or are they likely to be reached?

6. Have the target groups (end-users) of the project     ____________________
   been reached or are they likely to be reached?

7. Is a mid-course change in the project                 ____________________
   design necessary?

8. Are the overall achievements likely to be             ____________________
   sustained after project completion?

9. To what extent the institution building               ____________________              5A=Significant
   component will be achieved?                                                             6A=Satisfactory
                                                                                           4B=Poor

10. Is the project performing well?                      ____________________              7A=Yes
                                                                                           1B=Partially
                                                                                           6B=No

11. Is the project likely to be successful?              ____________________




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12. Recommendations of the mission                       ____________________               1M=Extension
    for future assistance                                ____________________               1Mn=Extension for n months, e.g.=1M9-extension
                                                                                            of 9 months
                                                                                            2M=New project phase
                                                                                            4M=Project Termination
                                                                                            5M=No recommendations

B.         Terminal and ex-post evaluation

1. Describe the overall achievements of                  ___________________                3A=Successful
   the project at the time of the evaluation?                                               2B=Partly successful
                                                                                            7B=Unsuccessful


Please before responding to this first question, keep in mind the guidance provided in pages 22 to 25 of this chapter and try to respond first to the
following questions:

2. Was the project relevant?                             ___________________                7A=Yes
                                                                                            1B=Partially
                                                                                            6B=No

3. Was the project efficient?                            ___________________

4. To what extent were the outputs achieved?             ___________________                5A=Significant
                                                                                            6A=Satisfactory
                                                                                            4B=Poor

5. To what extent were the immediate                     ___________________
   objectives achieved?

6. To what extent were the development                   ____________________
   objectives achieved?

7. Did the project perform well?                         ____________________               7A=Yes
                                                                                            1B=Partially
                                                                                            6B=No

8. Was the project cost effective                        ___________________

9. To what extent has capacity-building been achieved ___________________                   5A=Significant
                                                                                            6A=Satisfactory
                                                                                            4B=Poor

10. Have the beneficiaries of the project been reached __________________                   7A=Yes
                                                                                            1B=Partially
                                                                                            6B=No

11. Have the target groups (end-users) of                __________________
   the project been reached?

12. Did the project make a positive                      __________________                 1C=Positive
   or negative impact on the target groups?                                                 2C=Negative
                                                                                            6C=No impact

13. Did the project make a positive or                   __________________
   negative impact on gender issues?

14. Did the project make a positive or                   __________________
   negative impact on environment?

15. Did the project make a positive                      __________________
   or negative impact on the institution?




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16. Are the overall achievements likely to              __________________
   be sustained after project completion?

17. What are the views of the following                 __________________
   parties on the project?

           Government                                   __________________                1C=Positive
                                                                                          2C=Negative
                                                                                          5C=No views
           Recipient institution                        __________________

           Beneficiaries                                __________________

           Designated Institution                       __________________


           Implementing Agency                          __________________

     18. Recommendations of the mission                 __________________                1M=Extension
          for future UNPD assistance                                                      1Mn=Extension for n months, e.g.=1M9-extension
                                                                                          of 9 months
                                                                                          2M=New project phase
                                                                                          4M=Project Termination
                                                                                          5M=No recommendations

Part X: Textual information

This section of the project evaluation information sheet must be filled in by the evaluation team and given to the Resident Representative
prior to leaving the country where the evaluation takes place

1.    Summary of immediate objectives and outputs (summarize what is stated in the project document)

2.    Findings on project identification and design (provide a summary of the evaluation findings on project identification and design)

3.    Findings on general results of the project (include findings on relevance, performance and success)

4.    Main problems faced by the project (summarize the main problems previously and currently faced)

5.    Summary of recommendations (provide a summary of the main report recommendations and indicate to whom they were addressed)

6.    Lessons learned (List all lessons learned from the evaluation that may be applied to other projects and programmes)




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                                                                                                Chapter
                                                                                                     14

                                                AUDIT

Policy

Under the Direct Execution, the UNDP-CO is responsible for all UNDP resources allocated to a
programme or project and is accountable to UNDP HQ for the use of the resources. DEX
programmes and project shall have an annual audit to be done by either Government audit agency
or a commercial auditor.

All DEX projects are subject to an annual audit8. Since DEX projects require a good knowledge
of UNDP’s regulations, rules, policies and procedures, the first option should be to have the audit
carried out by the UNDP internal auditors. The resident representative arranges with the Office of
Audit and Performance Review (OAPR) if the internal auditors of UNDP will conduct the audit.
Alternatively, external auditors have to be hired directly by country office. In either case, there
must be an annual audit and OAPR and the regional bureau must be informed about the audit plan.
Funds to finance the audit must be included in the project budget.


Objective

To provide UNDP the assurance that UNDP resources are being managed in accordance with:

     UNDP Financial regulations, rules, policies and procedures that apply to programmes and
      projects
     The PSD or project document and work plans, including activities, management and
      implementation arrangements, expected results, monitoring, evaluation and reporting
      provisions; and
     The key considerations for management, in the areas of management, administration and
      finance

Scope

          The scope f the audit must cover, but not necessarily be limited to, the following:

     Substantive performance
     Rate of delivery
8
    See Programming Manual 6.8.2 paragraph 5



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   Financial accounting, monitoring and reporting
   Systems for recording and reporting on resources
   Equipment use and management; and
   Management structure, including the adequacy of internal control and record-keeping
    mechanisms

Contents:

The audit must confirm and certify that:

   Disbursements are made in accordance with the activities, work plans and budgets of the PSD
    or project document;
   Disbursements are supported by adequate documentation
   Financial reports are fairly and accurately presented and represent correctly the financial
    provision
   Appropriate management structure, internal controls and record-keeping systems are
    maintained
   Monitoring and evaluation of activities and the progress towards expected results are
    undertaken as planned and according to the key considerations for management
   Procurement, use, control and disposal of equipment are in accordance with the key
    considerations for management, the procedures governing the programme or project, and the
    UNDP rules, and
   Satisfactory measures have been taken by UNDP-CO to comply with the recommendations of
    prior audits.

Funds to be audited

   Expenditures incurred on behalf of the programme or project by UN Agencies as
    implementing agencies
   Expenditures incurred by UNDP-CO

Responsibilities

   The UNDP-CO shall be responsible for ensuring that all accounting books/records and
    financial reports are made available for examination by the auditors
   UNDP-CO may exceptionally approve the use of project funds for audit. In this case, adequate
    financial provision for the audit must be included in the programme or project budget

Review




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The auditors must discuss the findings in the draft audit report with the project management, the
UNDP-CO and their comments appropriately included in the final report. The final report shall be
submitted to the UNDP-CO. Copies may be provided to concerned parties as necessary. Annex
15A provides guidance on audit, that is, audit process such as the audit plan, standard TOR and
contract for the auditor, standard outline audit report, as well as issues and documentation to assist
the audit.

Audit as Part of Monitoring and Evaluation




The audit report shall be an integral part of the monitoring and evaluation process. Its contents
shall be taken into account in the annual progress review, in evaluations, and in the country
review.

Responsibility for Follow-up Actions

   The UNDP-CO shall ensure that appropriate action is taken by relevant parties to implement
    audit recommendations
   The UNDP-CO shall be responsible for following up with the TCI/project management on the
    implementation of the recommendations made in the audit report that pertains to them.
   The auditors shall follow-up on the implementation of prior recommendations and shall report
    on compliance in the current year’s audit.




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                                             Annex 15A:      Audit Procedures

        This annex provides guidance to the UNPD-CO and auditors on how to ensure and conduct audits for UNDP-
supported programmes and projects. The concerned parties should in each case adapt the proposed instruments
necessary. These instruments are:

1.   Audit plan
2.   Standard TOR for audit
3.   Standard contract for auditors
4.   Standard audit programme
5.   Checklist of documentation
6.   Checklist of issues for auditors
7.   Outline for the standard audit report

                                                   1.     AUDIT PLAN

        The UNDP-CO draws up an annual audit plan by November. The audit plan lists the programmes and project
scheduled to be audit on that given year, considering whether the programme or project has previously been audited,
the volume of funds, number of programmes and projects, workload, among other things.

         The annual audit plan will be established based on the following:

a) Application of Financial Regulation 17.2, which states that a programme/project has to be audited at least once in
   its lifetime
b) Inclusion in the current year’s audit of large programmes/projects, particularly if they were not included in the
   prior year’s audit
c) Identification of problem programmes/projects
d) Identification and selection of programmes/projects for audit, if they are at the peak of their life-long delivery

      The annual audit plan must reach UNDP headquarters by 15 January for review by the UNDP External Auditor. A
listing of estimated total expenditures must be sent to UNDP HQ together with the annual audit report for review
purposes




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                                   Annex 15B:            Standard Terms of reference for audit

These terms of reference are to be used locally and adapted for each audit as necessary.
These terms of reference are attached to the audit contract/agreement.

1.        Background

         The General Assembly of the United Nations has established the United Nations Development Programme to
support and supplement the national efforts of developing countries at solving the most important problems of their
economic development and to promote social progress and better standards of life.

         UNDP receives funds from donors, for which it is accountable, and allocates these funds to programme
countries in support of sustainable human development programmes. National execution is an arrangement whereby
UNDP entrusts these resources to national government authorities to undertake and manage UNDP-supported
programmes/projects. The national government authority responsible for the overall management of the
programme/project is called the executing agent.

          Governments are responsible for the management, including audits, of all UNDP resources of nationally
executed programmes/projects, and they are accountable to UNDP for the entirety of UNDP resources under their
management. Each nationally executed programme/project must be audited at least once in its lifetime. The timing of an
audit of a specific programme/project is determined by an audit plan established annually for each programme country.

2.        Purpose

         Under the overall supervision of the executing agent and in close collaboration with other concerned entities
(the UNDP country office, the government coordinating authority and the implementing agents), the auditors will
conduct audits of the programme/projects. The overall objective for the audit of nationally executed programmes/projects
is to provide the UNDP Administrator with reasonable assurance and audit opinion that UNDP resources are being
managed in accordance with:
(a)      The Government financial regulations, rules, practices and procedures 9;
(b)      The terms and conditions of the programme support document (PSD) or project document, including the
         delivery of planned outputs, the management and implementation arrangements, and the provisions for
         monitoring, evaluation, and reporting; and
(c)      The UNDP procedures and standards for accounting, financial management and reporting of nationally executed
         programmes/projects.

3.        Audit scope

         The audit of nationally executed programmes/projects must cover, but is not necessarily limited to, the
following:
(a)      Assessment of the rate of delivery;
(b)      Financial accounting, monitoring and reporting ;
(c)      Management systems for recording, documenting and reporting on resources utilization ;
(d)      Equipment use and management; and
(e)      Management structure, including the adequacy of appropriate internal control and record-keeping mechanisms.



9
 When the application of these regulations and rules cannot be undertaken by the Government, the Government may want to use the general
policies and procedures set out in the relevant UNDP manuals and the UNDP procedures and Financial Regulations and Rules.




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4.       Audit certification

         The audit of nationally executed programme/project, as a minimum, must review the following aspects. If
appropriate, the audit will confirm and certify that :
(a)      The disbursements are made in accordance with the activities and budgets of the PSD or project document ;
(b)      The disbursements are supported by adequate documentation ;
(c)      The financial reports are fairly and accurately presented ;
(d)      An appropriate management structure, internal controls and record-keeping systems are maintained ;
(e)      The executing agent and the UNDP country office have undertaken and have prepared reports for monitoring
         and evaluation of the substantive activities and of the management systems of the programme/project ; and
(f)      The procurement, use, control and disposal of non-expendable equipment are in accordance with the
         Government’s or UNDP requirements.

5.       Methodology and timetable

         The audit is conducted in accordance with the professional judgement of the auditor, and with appropriate
reference to:
(a)      The International Standards on Auditing (ISA), namely the standards on auditing promulgated by the
         International Federation of Accountants ;
(b)      Generally accepted common auditing standards in the programme country ;
(c)      The standards and terms of reference established for the United Nations Board of Auditors, which are described
         in the annex to the UNDP Financial Regulations and Rules.

         The auditors must undertake the following activities, among others :
(a)      Consult with relevant units as necessary (the executing agent, the UNDP country office, implementing agents,
         the government coordinating authority, other concerned parties) ;
(b)      Obtain and analyse existing documentation ;
(c)      Review the procedures and systems currently in ;
(d)      Perform test-checks on accounts and documents ;
(e)      Write the audit report with recommendation for action ;
(f)      Present the findings of the report to the parties concerned and submit five copies to the executing agent.

         The timetable of the audit depends on the complexity of the programme/project to be audited. [The executing
agent should indicate duration of audit in these terms of reference or in the audit contract.]

6.       Sources of information

          The executing agent and the UNDP country office, and other concerned entities as appropriate, must provide the
auditors with all relevant information required by them for conducting the audit. A checklist of documentation is
attached.

7.       The audit report

         The auditors must produce an audit report, and shall do so to the extent possible, in the suggested format
presented in Annex 15C

         The audit report must contain comments, observations and an opinion on each of the audit scopes above, as well
as a general opinion on the programme/project.




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        Before finalising the audit report, the auditors must discuss their findings with the executing agent, the
government co-ordinating authority and the UNDP Resident Representative. The auditors will present or incorporate the
responses in the audit report.

           The auditors must submit the final audit report to the executing agent in five copies. The auditors must also
stamp the latest annual financial report of programme/project dated 31 December, certified by the executing agent and
attach it to the audit report.

         The audit report must be forwarded by the UNDP country office to reach UNDP headquarters by 30 April
following the year of audit.




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                              Annex 15C:         Checklist of documentation for auditors

         To conduct the audit in an efficient manner, the auditors require access to the originals or copies of all relevant
documents and files on the programme/project. The executing agent and the UNDP country office are responsible for
ensuring that the following documentation, at a minimum, is available to the auditors for their work :

                                                                           Documentation should be available at
Document                                                                     UNDP country          Executing agent
                                                                                office
Programme support document or project document                                    X                       X
All budget revisions                                                              X                       X
The original and revised work plans                                               X                       X
Requests for direct payment by UNDP                                               X                       X
Implementing agents’ expenditure statement                                        X                       X
The financial report                                                              X                       X
Combined delivery report                                                             X                         X
Disbursements and payment vouchers (DVs) with supporting
documentation                                                                        X                         X
Inter-office vouchers (IOVs)                                                         X                         X
Annual programme/project reports (APR)                                               X                         X
Tripartite review reports                                                            X                         X
Evaluation reports, other review reports, the terminal report                        X                         X
Annual inventory of equipment                                                        X                         X
Logbooks for vehicles                                                                                          X
Documents transferring ownership of equipment                                        X                         X
List of government officials with specimen signatures, authorized to                 X                         X
sign financial reports
United Nations operational exchange rates for the period audited                     X                         X
UNDP DEX/NEX Handbook for Albania                                                    X                         X




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                                     Annex 15D:          Outline of standard audit report

         The audit report shall include, but not be limited to, the following elements :

I.       INTRODUCTION

          In terms of the scope of work identified in letter [number of letter]/Terms of reference/contract dated [date of letter to
auditors] and also in terms of the provisions contained in programme support document/project document
[programme/project number and title] financed by UNDP, and the Government of [programme country] we carried out an
audit of the transactions pertaining to this programme/project for the period ending 31 December [year].

II.      BACKGROUND

         The programme support [or project] document was signed on [date of approval of document] with the following
contributions :
         (a)     Government of [programme country]        USD
         (b)     UNDP                                     USD
         (c)     Other inputs                             USD
                 TOTAL                                    USD

        The programme/project commenced its operations as from [day, month, year] with an estimated duration of [insert
number of years or months] years/months; with a detailed workplan of activities and target dates against which outputs are to
be produced.

III.     SCOPE OF AUDIT

         The audit was conducted in conformity with the provisions of the programme support/ project document, generally
accepted common auditing standards, and the principles and procedures prescribed for the United Nations with respect to
funds obtained from or through UNDP. The audit accordingly included such tests of accounting records, internal controls and
other procedures as were considered essential for due performance of this audit. Discussions on management and
accountability were held with the Resident Representative and his/her staff, the government coordinating authority, executing
agent and [insert other parties consulted].

         The audit opinion is limited to the funds received and expenditures incurred by the Government, and the opinion
does not cover expenditures incurred by United Nations organizations. [This is called a scope restriction and is used for
expenditures incurred on behalf of the programme or project by United Nations agencies acting as implementing agents or
by the UNDP country office providing support to national execution. Audit of these expenditures are carried out by the
appointed auditors of those organizations.]

IV.      THE AUDIT REPORT WITH OVERALL OPINION ON: [insert opinion for points a-d below]

(a)      Financial operations and controls:
(b)      Adequacy of the management structure:
(c)      Equipment use and control:
(d)      Monitoring, evaluation and reporting:

V.       EXECUTIVE SUMMARY

[Insert a brief summary on the main findings and recommendations]


VII.     OBSERVATIONS, FINDINGS AND RECOMMENDATIONS

 [Insert a detailed description of the main findings and recommendations, and indicate who is responsible for follow-up of
each recommendation. Incorporate responses from the parties concerned after consultation with them. ]




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          Except for the matters referred to in paragraphs [insert appropriate paragraphs from section 4] above, we, based on
the audit work carried out by us, believe that:
(a)       The rate of programme/project delivery is as per the workplan ;
(b)       The disbursements have been made in accordance with the programme support document/project document;
          financial rules, regulations, practices and procedures of the Government; and, in the absence of financial governance
          of the Government, are in accordance with UNDP rules and regulations;
(c)       The programme/project disbursements are valid and supported by adequate documentation;
(d)       The programme/project financial statements present fairly and accurately the financial position at the end of the
          period audited ;
(e)       The equipment management is proper ;
(f)       An appropriate financial management structure, internal controls and record keeping systems are maintained by the
          programme/project management.

Name and signature of auditor

Enclosures :
Report with observations, findings, and recommendations ;
Combined delivery report ;
Financial report [stamped/certified by auditors]




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                                                                                                              Chapter
                                                                                                                   15
                                            PROJECT COMPLETION

                                           16.1 Operational Completion

A programme or project is operationally completed when the last UNDP-financed inputs have been
provided and the related activities have been completed. When completion is approaching, the project
management conducts the following:

   Preparation of Terminal Report
   Conduct of Terminal TPR
   Transfer or disposal of equipment and
   Preparation of a project evaluation report

Preparation of Terminal Report

Table 16.1 Terminal Report

    Definition           Purpose                   Contents/                Procedures/       Actions to be taken
                                                   Structure                 Timetable
An overall           The APR for the       The terminal report         Procedures for         Similar to the APR
assessment of a      final year serves     form, like the APR, has     preparing the
programme or a       as the terminal       three parts: Part I for     Terminal Report are
project by its       report. In addition   numerical rating; Part II   the same as the APR.
stakeholders and     as having the         for textual assessment
is prepared          same purpose as       of the programme or         Report shall be
towards              the APR, the          project; and part III,      prepared and
programme or         terminal report       consisting of summary       submitted to UNDP-
project completion   also aims to serve    table with two sections     CO 3 weeks prior to
                     as a source of        (on resources &             the terminal TPR
                     initial lessons       expenditures and            meeting
                     from experience       progress towards
                     and to                expected results,
                     recommend             respectively). However,
                     follow-up activity    Part II contains
                     when necessary        additional questions on
                                           potential impact,
                                           sustainability and
                                           contribution to capacity
                                           development and
                                           recommendations for
                                           follow-up (see Annex
                                           10A for Terminal
                                           Report form)


Final Technical Reports

The Project Manager should ensure that all technical reports included in the last work plan have been
prepared and submitted.



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Terminal Tripartite Review

The terminal tripartite review is the final formal meeting of all parties to the project agreement. The
terminal report and the end-of-project evaluation, if any, will be considered at this meeting.
Recommendations for follow-up actions, if any, will also be considered.

Terminal TPR Agenda

   Report on status of actions taken relating to decisions made in the last TPR
   Summary of project results since the last TPR
   Assessment of the extent to which the programme or project has achieved its objectives and the
    potential impact of the project
   Report on unresolved issues
   Report on lessons learned from project experience
   Recommendations for the utilization of programme or project results and other follow-up actions;
    and
   Discussion and decision-making by TPR participants on the above presentations to be made by the
    Project Manager and further actions to be taken

Transfer or Disposal of Project Equipment

The Project Manager will transfer or dispose of project equipment according to the procedures set out
in Chapter 9

Financial Completion.

A financially completed project is an operationally completed project for which all financial
transactions have been recorded, the project accounts closed, and a final project revision approved. All
projects are to be financially completed within twelve months of the date of their operational
completion. Financial completion is the responsibility of the country office Finance Unit.

   Contract termination of Locally-Recruited Personnel. The Project Manager will initiate the
    termination of contracts for all locally-recruited personnel. This procedure involves a clearance by
    the project manager for all project owned equipment and products (refer to Annex 16B on Final
    Clearance Form). The Project Manager should prepare appropriate letters of reference for these
    personnel.
   Termination of International Personnel. The Project Manager will ensure that all international
    project experts and consultants complete their assignments.
   Completion of Sub-contracts. The Project Manager will ensure that all project sub-contracts have
    been completed according to the terms of each sub-contract.
   Completion of Fellowships and Study Tours. The Project Manager will ensure that all project
    fellowships and study tours have been completed. The project will remain operational until all
    fellowships or study tours undertaken before the end of the project have been completed.
   Receipt of Project Equipment. The Project Manager will ensure that a proposal for disposal of
    equipment purchased with project funds have been received by UNDP or equipment is put into
    temporary custody of the resident representative.




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   Closing the Project Accounts. The Project Manager will work with the country office Finance Unit
    and all implementing agencies to identify and settle all outstanding obligations and claims against
    the project within the twelve month period allowed for financial completion of the project.
   Other Executing Agency Actions Related to Project Completion. In addition to the actions
    necessary for financial completion of the project, the NPD should submit final comments on the
    project on behalf of the national executing agency, ensuring that all significant project experience
    has been documented, that the lessons of the experience have been recorded, and that these
    comments will be available to all interested parties.
   Archiving Project Reports. The NPD should ensure that all project reports and evaluations have
    been place in the data-bases of The Agency for Foreign Investment, UNDP and the executing
    agency.
   Dissemination of Information on Project Experience. The UNDP country office and The Agency
    for Foreign Investment should prepare appropriate information materials that summarize project
    experience and results and disseminate these materials to interested parties.

Responsibilities

   The PM shall ensure that all project personnel services, consultancy services, subcontracts and
    fellowships/study tours and disposition of equipment are completed by project completion date.
   The UNDP-CO Finance Section shall ensure payment of all outstanding obligations and shall
    finally close the project accounts
   The UN Agency or NGO as subcontractors shall ensure that all services/activities for components
    implemented are completed and outstanding obligations are paid by project completion date
   The UN Agency/NGO shall also ensure submission of final accomplishment and financial report
    to UNDP-CO to serve as inputs to the preparation of the Terminal Report

                                 16.2   Suspension and Cancellation

A programme or project may be cancelled if circumstances arise that jeopardize the achievement of
the expected results and where a redesign may not bring a permanent solution. Suspension is also
possible where financial misconduct is suspected.

The UNDP Resident Representative shall take the final decision to suspend or cancel a programme or
project and shall confirm this in writing to the parties involved.

Procedures:

   Suspension: A programme or project is cancelled only after a period of suspension. During this
    period, the parties consult and try to resolve the problems by corrective measures. If the problems
    are resolved, the programme or project activities may be resumed. The UNDP Resident
    Representative confirms to the parties the date for resuming the activities.
   Cancellation: If the problems have not been resolved within a reasonable period of time, the
    programme or project shall be cancelled. Unspent TRAC 1 and 2 funds from a cancelled
    programme or project may be reprogrammed, taking into account the outstanding obligations of
    the cancelled programme or project.




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                                        Annex 16A:          Terminal Report Form

Basic Programme/Project Information (To be provided by programme/project management)

Programme/project number and title: _____________________________________________________
Designated Institution: ______________________________________________________
Project starting date
      Originally planned: ____________________ Actual: ____________________
Project completion date
      Originally planned: _______________ Actual: ____________________
Total budget (US$)
      Originally:__________________ Latest signed revision: __________________
Period covered by the report: ______________________________________________
Date of tripartite/bipartite review (Indicate if planned or actual): _________________

PART I. NUMERICAL RATING

Rate the relevance and performance of the programme or project using the following scale:

1   Highly satisfactory
2   Satisfactory
3   Unsatisfactory, with some positive elements
4   Unsatisfactory
X   Not applicable

Place your answers in the column that corresponds to your role in the programme or project.


 SUBSTANTIVE FOCUS                                             Target          Programme or   Government   UNDP
                                                               Group(s)        Project
                                                                               Manager
 Relevance
 1. How relevant is the programme or project to the
 development priorities of the country?
 2. How relevant is the programme or project to the
     promotion of sustainable human development?
     Indicate your rating on the thematic focus which the
     programme or project was designed to address:

 a)    Poverty eradication and sustainable livelihoods
 b)    Protection and regeneration of the environment
 c)    Gender in development
 d)    Promoting an enabling environment for SHD,
       including governance
 3.    To what extent are appropriate beneficiary groups
       being targeted by the programme or project, based on
       the following considerations?

 a) Gender
 b) Socio-economic factors
 c) Geographic location

 4. Given the objectives of the programme or project, are
 the appropriate institutions being assisted?



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 Performance
 1. Using the following indicators, rate the contribution of
 the outputs to the achievement of the immediate
 objectives:
 a. (Indicator 1)
 b. (Indicator 2)
 c. (Indicator 3)
 2. Rate the production of target outputs.
 3. Are the management arrangements of the programme or
 project appropriate?
 4. Are programme or project resources (financial, physical
 and manpower) adequate in terms of:
 a. quantity?
 b. quality?
 5. Are programme or project resources being used
 efficiently to produce planned results?
 6. Is the programme or project cost-effective compared to
 similar interventions?
 7. Based on its work plan, how would you rate the
 timeliness of the programme or project in terms of:
 a. production of outputs and initial results?
 b. inputs delivery?

* Prior to the distribution of the form, the indicators must be listed, as reflected in the programme support document or
project document or as agreed on by the stakeholders.

Please indicate your overall rating of the programme or project using the following letters:

A   Highly satisfactory
B   Satisfactory
C   Unsatisfactory, with some positive elements
D   Unsatisfactory
X   Not applicable

 SUBSTANTIVE FOCUS                         Target Group(s)      Programme or            Government             UNDP
                                                                Project Manager
 Overall rating of the programme or
 project

Explain the basis of your rating, which need not be limited to, or which may be different from, the relevance and
performance criteria rated above. For the last year of the programme or project, the overall rating should include an
assessment of the potential success of the programme or project as well as its relevance and performance.


PART II. TEXTUAL ASSESSMENT

1. What are the major achievements of the programme or project vis-à-vis its objectives? Please explain them in detail in
terms of potential impact, sustainability of results and contribution to capacity development.

2. What factors affected the implementation of the programme or project?

3. What lessons (both positive and negative) can be drawn from the experience of the programme or project?

4. What are the views of the target groups with regard to the programme or project? Please note any significant gender-
based differences in those views.

5. If the programme or project has been evaluated, what is the implementation status of the recommendations made by the




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evaluators?

6. What activities or steps do you recommend as follow-up to the project?

7. Provide any other information that may further support or clarify your assessment of the programme or project. You may
include annexes as you deem necessary.


For target groups:

______________________________________________
Name
Title
Signature
Date

For the programme or project management:
______________________________________________
Name
Title
Signature
Date

For the Government:
______________________________________________
Name
Title
Signature
Date

For UNDP:
______________________________________________
Name
Title
Signature
Date




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PART III:         Programme or project summary table

Programme/project title and number:                                                      Management arrangement:
Designated Institution:                                                                  Period covered

                                                                         OVERALL ASSESSMENT

Brief analysis of progress achieved in the contribution of the programme or project to the expected results


                                                                         FINANCIAL SUMMARY

Source of funds                             Annual budget                                Estimated annual expenditure      Delivery rate:
                                            ($’000)                                      ($’000)                           (%)
TRAC (1 and 2)
TRAC 3
Other

Cost-sharing:
        Government
        Financial institution
        Third Party

Trust funds
AOS (where applicable)




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                                            SUMMARY OF RESULTS

            Programme support objectives           Indicators                            Achievements
           (PSOS) or immediate objectives
Obj 1
Obj 2
Obj

               Annual output targets         Achievement of outputs         Proposed output targets for the next year

Obj.1

Output 1
Output 2
Output 3
Obj.2

Output 1
Output 2
Output 3




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Annex 16B   Final Clearance Form




                                      Page 209
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            Page 210

				
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