J.5 IFAP Template-June2023version.docx

Interim Fiscal Accountability Plan [Insert Accountable Entity (AE)] Interim Fiscal Accountability Plan

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Table of Contents

Acronymns and Abbreviations

Introduction MCC’s Fiscal Accountability Framework encompasses the appropriate tracking and use of program financial resources. The foundation of accountability is a good internal control system which adequately controls, classifies, records, and reports on the receipt and use of funds.

The objective of this Interim Fiscal Accountability Plan (IFAP) is to define and document limited key processes and procedures, including internal financial controls, for the [insert AE full name and (acronym)] The Compact Development Fund (CDF) Grant Agreement between the United States of America, acting through the Millennium Challenge Corporation (MCC), and the Government of [insert name of country and acronym], was executed to facilitate the development and implementation of a compact designed to reduce poverty through economic growth.

The Government entity responsible for implementation of the CDF Agreement under the CDF Agreement [insert formal name of agreement and date] is the [insert full name of country compact development team or THP full name and acronym]. All financial and procurement transactions undertaken by [insert compact development team or THP acronym] must be in accordance with that agreement, MCC’s Program Procurement Guidelines (PPG), MCC’s Program Grant Guidelines (PGG), the Interim Procurement Operations Manual (IPOM) and the MCC Cost Principles for Government Affiliate Operations. Terms used but not defined herein shall be defined as in the CDF Agreement.

This IFAP will be updated periodically, as needed.

Application The IFAP contains the interim policies and procedures for all financial and procurement activities related to the Grant funds received by the Government under the CDF Agreement. This IFAP shall be in effect until the Fiscal Accountability Plan (FAP) is developed and put into effect.

This document establishes the processes for Government-managed activities, which, as defined under the [insert CDF or THP] Agreement, apply to any Government-procured and -managed services for an activity covered by and pursuant to the terms of the CDF Agreement. The IFAP addresses:

· Procurement of goods, works and services related to contracts directly managed by [insert compact development team or THP acronym];

· Payments to vendors, timeliness of payment to vendors, cash management, and account reconciliation;

· Funds control and documentation;

· Financial reporting and timing of reports;

· Roles of the Interim Financial Representative and the Interim Procurement Representative of [insert compact development team or THP acronym];

· Audits;

· Quarterly Disbursement Request and Monthly Commitment and Disbursement Reporting processes;

· Application of Tax Exemption;

· Reimbursement of salaries.

It may be necessary to issue amendments to the IFAP or issue completely new policies and procedures in response to or in anticipation of changing circumstances. These amendments should be effected via an update to the IFAP or a formal notice (e.g., Administrative Circulars/Addendum to the IFAP) approved by the [insert CDT or THP lead] for [insert compact development team or THP acronym] and MCC. The changes reflected in the formal notices will be incorporated into the next IFAP update.

Guiding Principles of the Fiscal Accountability Plan MCC Cost Principles The Millennium Challenge Corporation has established cost principles applicable to a Government Affiliate serving as an Accountable Entity financed in whole or in part under Grants financed by MCC, unless otherwise specified in writing by MCC. MCC’s Cost Principles for Government Affiliates can be found at:

https://www.mcc.gov/resources/doc/guidance-cost-principles-for-government-affiliates MCC has also adopted separate cost principles for cost-reimbursement contracts supported with MCC funding, which may be found at:

https://www.mcc.gov/resources/doc/cost-principles-for-cost-reimbursement-contracts-under-mcc-financed-grants Internal Controls [insert compact development team or THP acronym] must implement internal controls for all program activities. Internal controls consist of the plan of organization and procedures for safeguarding assets and ensuring the reliability of financial records. An effective internal control system includes the checks and balances required for the appropriate authorization and recording of transactions and ensuring that access to assets is limited to authorized personnel.

Segregation of Duties Segregation of duties - ensuring that the responsibilities for authorizing, executing, recording and reconciling financial transactions are performed by different individuals - is a key component of internal control, and has as its primary objective the prevention and detection of fraud and errors.

Approvals [insert compact development team or THP acronym] may develop detailed matrices listing key documents and/or tasks that must be approved by various [insert compact development team or THP acronym] staff and their respective approval limits. The matrices should indicate who is the Primary and Alternate authorizers/approvers are and their respective approval limits, if necessary. The [insert compact development team or THP acronym] Interim Financial Representative (as defined below), with assistance from the MCC Interim Fiscal Agent [footnoteRef:2] (also defined below), will ensure strict adherence to the approval/authority levels contained in the Approval Matrix. [2: Compact and Threshold accountable entities would procure a full-time Fiscal Agent but there may be a limited period wherein MCC serves as the Interim Fiscal Agent. ]

[insert compact development team or THP acronym] Financial Management and Procurement Basic principles, rules, and procedures for the procurement of goods, works, consultant, and non-consultant services by any supplier/provider that need to be acquired to implement the projects funded by MCC are covered in the IPOM and in the PPG and PGG, currently available at the following URLs:

https://www.mcc.gov/resources/doc/program-procurement-guidelines https://www.mcc.gov/resources/doc/guidance-program-grant-guidelines [insert compact development team or THP acronym] has overall responsibility to ensure compliance with the IPOM, the PPG, the PGG, the MCC Cost Principles for Government Affiliates, and this IFAP. At some point during the funding period, a Fiscal Agent and a Procurement Agent will be engaged to assist in program implementation. In the absence of these entities, MCC staff will assume oversight roles as follows:

· Interim Fiscal Agent (IFA) – MCC Director, Program Financial Services (PFS) [to confirm]

Responsibilities:

· Review of financial reports (QDRP, MCDR) for numeric accuracy

· Advice on financial tracking systems

· Review of invoices submitted with accompanying PAFs and PRFs

· Confirmation that PRFs, as submitted, are consistent with amounts available under existing quarterly Spending Authority

· Signing and transmitting all PRFs after review on the basis above to IBC for processing

· Interim Procurement Agent (IPA) – MCC Director, Program Acquisition and Assistance (PAA) [to confirm]

Responsibilities:

· Review of final procurement documentation at each point required by the Interim Procurement Operations Manual for adherence to requirements and policies before the procurement action proceeds to its next phase.

Key Positions at [insert compact development team or THP acronym]: Authorized Representatives and Approvers The principal individuals authorized to act in procurement and financial management matters on behalf of the [insert compact development team or THP acronym] are as follows:

i. The [insert CDT or THP lead] shall serve as the primary official within [insert compact development team or THP acronym] responsible for:

· Procurement and contract management activities, including:

· Signing contracts, purchase orders, and amendments on behalf of [insert compact development team or THP acronym].

· Full procurement roles are defined in the IPOM.

· Financial activities, including:

· Authorization and approval of requests for payments or reimbursement after acceptance of approved invoices submitted by the Interim Financial Representative. Additional individuals may be designated to take action with regard to acceptance of invoices and authorization of payments with the concurrence of MCC.

ii. The [insert compact development team or THP acronym] Financial Management Specialist[footnoteRef:3] shall serve as the primary individual authorized to act as the Interim Financial Representative [insert compact development team or THP acronym]-IFR of [insert compact development team or THP acronym]. The [insert compact development team or THP acronym]-IFR is primarily responsible for: [3: Threshold accountable entities would have a Director of Finance/CFO with full responsibilities for the term of the THP. An IFR may serve for a brief period until the Director of Finance/CFO is on board. ]

· Receipt of original invoices addressed to [insert compact development team or THP acronym].

· Reviewing, validating, and processing invoices for approval by the relevant Program/Project Managers.

· Preparing and authorizing PAF’s and PRFs, ensuring consistency of each to the terms of the underlying agreement, the underlying invoice, and the ensuring that sufficient budget and disbursement authority are secured prior to approval.

· Obtaining the [insert CDT or THP leader] approval of Invoices, PAFs and PRFs.

· Submission of PAFs and PRFs and supporting documentation to the IFA.

· Tracking budgets, commitments, and spending of Grant funds.

· Preparation of budgets.

· Quarterly preparation and submission of the QDRP.

· Monthly preparation and submission of the MCDR package.

· Consolidating and ensuring that all supporting documentation is on file.

· Serving as a Point of Contact for MCC financial and accounting review and inquiry related to the Government managed Grant funds.

· Serving as the primary Custodian of all accounting records.

· Ensuring that all matters related to exercising [insert compact development team or THP acronym] functions are in compliance with this IFAP, MCC Cost Principles, MCC Guidelines and the agreements mentioned herein.

iii. The [insert compact development team or THP acronym] [insert team position title][footnoteRef:4] shall serve as the Interim Procurement Representative ([insert compact development team or THP acronym]-IPR). This person shall serve as the principal individual authorized to act as the Interim Procurement Representative on all matters related to exercising [insert compact development team or THP acronym] functions in compliance with this IFAP and the agreements mentioned herein. [4: Threshold accountable entities would have a Director of Finance/CFO with full responsibilities for the term of the THP. An IFR may serve for a brief period until the Director of Finance/CFO is on board. ]

The [insert compact development team or THP acronym]-IPR is primarily responsible for:

· Ensuring that all Grant-funded, Government/[insert compact development team or THP acronym]-managed procurements are conducted in compliance with the PPG, the PGG, the CDF Agreement, the IPOM and this IFAP.

· Enforcing the requirements of the IPOM.

· Preparing a Procurement Plan (PP) identifying specific procurements required to meet objectives approved under the [insert CDF or THP] Agreement and submitting such PP for MCC approval. Such PP shall, for each proposed procurement, identify:

· how purchasing needs for such period will be bundled into specific procurements;

· the method of procurement anticipated to be used for selecting the supplier(s) or contractor(s); and

· the proposed budget for each procurement.

· Preparing each PP to cover a specific minimum period of time, which shall be at least 12 months in duration. The PP shall be updated, at a minimum, quarterly, and be submitted in conjunction with the QDRP. Amending the PP as needed between the regular quarterly submissions, and submitting such amendments to MCC for approval, as appropriate.

· Receiving and reviewing requisitions for procurements. Ensuring each requisition is in compliance with the approved PP before initiating the procurement.

· Ensuring that all procurements of goods, services and works are consistent with the PP. Satisfactory compliance with the PP shall be a requirement to MCC disbursements or reimbursements for the related Program or Project expense.

· Completing and submitting a Procurement Performance Report (PPR) as part of each QDRP. The PPR will serve as a record of the execution of the PP.

· Reviewing and validating invoices approved by the designated Program/Project Managers for compliance with the applicable terms and conditions of the associated contracts or commitments.

· Consolidating and ensuring that all supporting procurement documentation are on file.

· Serving as a Point of Contact for MCC procurement review and inquiry related to the Government/[insert compact development team or THP acronym]-managed Grant funds.

· Serving as the primary custodian of all procurement and contract administration records.

iv. Relevant designated Program/Project Managers[footnoteRef:5] and Invoice(s)/Deliverable(s) Approvers: [5: Threshold accountable entities would have recruited positions with full responsibilities for the term of the THP. Interim staff may serve for a brief period until the respective positions are recruited and on board.

· Sectors:

· [list Sector Expert and Position Title for each]

· Cross-Cutting:

· Monitoring and evaluation (M&E) data collection and other related studies: [insert Position Title]

· Gender and Social Inclusion studies: [insert Position Title]

· Procurement: [insert compact development team or THP acronym] IPR

· Program Administration: [insert compact development team or THP acronym]-IFR Accounting System Accounting System and Generally Accepted Accounting Principles The phases of financial management, including budgeting, accounting and reporting shall be conducted in compliance with International Financial Reporting Standards and – where applicable – the International Public Sector Accounting Standards from the International Federation of Accountants in the form of modified cash-based accounting. This means that [insert compact development team or THP acronym] will prepare an auditable Fund Accountability Statement (“FAS”) on a Cash Basis (recording income when received and expenses when paid), and will prepare supplemental schedules listing the following:

1. Advance payments outstanding.

2. Amounts payable to vendors or retained from vendor payments.

Totals for the schedules shall be footnoted on the FAS at each six month period or other period approved by MCC.

[insert compact development team or THP acronym] utilizes [insert interim system i.e. Excel, QuickBooks, etc.] as its accounting system in the interim period.[footnoteRef:6] The [insert compact development team or THP acronym] IFR shall maintain up-to-date spreadsheets detailing all of the contracts and commitments entered into (funds committed) and all of the payments made to the vendors. [6: The accounting system in a THP may or may not be interim]

Currency Unliquidated non-USD commitments may be valued using widely published historical rates from oanda.com (or by domestic publicized exchange rates (e.g. central bank)). The average monthly interbank bid rate (USD purchasing xxx) for the full month immediately prior to the re-valuation is to be used, and can be obtained at the following link.

https://www.oanda.com/fx-for-business/historical-rates To obtain the appropriate exchange rate, populate the required data fields as follows:

Then copy-paste the rate for the prior month for re-valuing the unliquidated commitments.

For example, the QDRP for the quarter January-March is due on December 10th (20 days before the start of the requested quarter). The unliquidated non-USD commitments for this QDRP should be valued using the monthly rate for Nov 1-30.

[Optional text for countries with transactions only in USD: All transactions shall be conducted in US Dollars (USD). No other currency transactions are authorized.] Reporting Timelines

Quarters begin on the first day of January, April, July, and October for the purposes of the Detailed Financial Plans and the Disbursement Requests.

QDRPs are quarterly reports, which are defined in section 6.1. These reports help define the upcoming quarter’s disbursement authorities.

MCDRs are monthly reports, which are defined in section 6.2. This report shows spending from the prior month, along with cumulative spending and include a schedule for reconciliation against accounting system

*Refers to the period for which funds are requested.

** Only applies to countries with MCC-approved permitted bank accounts.

All due dates shall be moved forward to the next business day when the original due date falls on a weekend.

Quarterly and Monthly Reports Quarterly Disbursement Request Package (QDRP)

Each quarter, [insert compact development team or THP acronym] shall submit a QDRP to MCC. The objectives of the QDRP are for (1) MCC to obtain and assess information related to program progress, compliance with program requirements, and projected commitment and disbursement needs; and (2) the Accountable Entity to obtain disbursement authority to access funds from MCC.

The QDRP is due on the 10th of the last month preceding the beginning of the quarter as defined in the reporting timeline chart above. A draft of the QDRP is recommended to be submitted to MCC two weeks prior to the 10th for technical review.

MCC Guidance to Accountable Entities on the Quarterly Disbursement Request Package, including examples of each document and reporting templates, is available at:

https://www.mcc.gov/resources/doc/quarterly-mca-disbursement-request-and-reporting-package

The core set of the required components of a QDRP for the purpose of the Government managed Grant funds will consist of:

· Disbursement Request and signed Disbursement Request Form (a form as part of the QDRP, and a separate signed pdf)

· Explanatory Notes

· Procurement Plan

· Schedule A (Multi Year Financial Plan)

· Detailed Financial Plan (Cash and Commitments)

· Procurement Performance Report

· Condition Precedent (CP) Report

· Certificates: Fiscal Agent Certificate, Procurement Agent Certificate, Accountable Entity Certificate

· Certificate from the Government AE, in form and substance satisfactory to MCC, evidencing satisfaction of the terms and conditions of the CDF or THP Agreement

· Certificate from the Fiscal Agent and Procurement Agent, if other than MCC is acting in those capacities

· Disbursement Response Letter (DRL) (drafted by MCC)

· Work Plans (As required by MCC)

Requesting Changes to Disbursement Authority Outside of the Normal Quarterly Reporting Cycle

In limited circumstances, [insert compact development team or THP acronym] may request additional disbursement authority, or a reallocation of approved disbursement authority,by submitting an “Out-of-Cycle Disbursement Request.” For more information, see MCC Guidance to Accountable Entities on the Quarterly Disbursement Request Package.

Requesting Reallocation of Funds in the Multi-Year Financial Plan

The [insert CDF or THP] budget may need to be modified during the term of the [insert CDF or THP] Agreement. All reallocations of funds among or between the line items in the Annex II of the [insert CDF or THP] Agreement must be approved by [insert compact development team or THP acronym] and MCC. Such reallocations shall be initiated by the relevant Project Director / Contract Manager, reviewed for budget availability and cleared by the [insert compact development team or THP acronym]-IFR, and then approved by the [insert CDT or THP team lead] for submission to MCC via the Schedule A in the QDRP or an Out-of-Cycle package. No reallocation will take effect until formally approved by MCC.

Each reallocation in the Annex II of the CDF Agreement shall be documented in the manner prescribed in the MCC Guidance to Accountable Entities on the Quarterly Disbursement Request Package, and signed by the [insert CDT or THP team leader] and shall be communicated to MCC in a formal request..

Monthly Commitment and Disbursement Report and Reconciliation Report (MCDR)

The MCDR serves the following purposes:

· For the CDT to report on disbursements and commitments at the Project and Activity level for the prior month and cumulative to date.

· For the CDT to reconcile the cumulative disbursements to MCC’s financial system and identify any corrections, if necessary.

· If applicable, for the CDT to report on Permitted Account activity (in column 2a of the report) and interest earned, and to reconcile the account balance against MCC’s accounting of the permitted account balance.

· If applicable, for MCC to record the Permitted Account activity in the financial system.

The MCDR is due no later than the 14th day of the month following the monthly reporting period. Earlier submission is encouraged and a preliminary report is required for reports covering the last month of a quarter (see below).

The [insert compact development team or THP acronym]-IFR will prepare and submit the MCDR package in MCC MIS.[footnoteRef:7] . The MCC PFS Director will review and clear the MCDR after ensuring that is correctly presented, does not contain mathematical errors, and includes explanations for any discrepancies on the reconciliation schedule. If there are variances, the MCC PFS Director will ensure that the CDT documents the reason for the variances and there is a reasonable plan in place for the timely resolution of that discrepancy. The MCC A&F will then clear/approve for the official MCC records. [7: Threshold Programs, which do not currently use MCC MIS, must submit via email to MCC’s Administration and Finance (A&F) at mccafqfrdrsubmissions@mcc.gov while copying the MCC PFS Director.]

Special MCDR Submission Requirements for the Last Month of the Quarter

MCC’s A&F prepares and submits MCC’s quarterly financial statements for external reporting by the 15th of the month. These financial statements must include, as accruals, the [insert compact development team or THP acronym] adjustments for funding spent from the Permitted Account, if applicable. In order for A&F to meet MCC’s quarterly financial statement deadline, it must receive this information on a timely basis. Therefore, for quarter month end only, [insert compact development team or THP acronym]-IFR that report Permitted Account activity must submit information on the prior month’s activity via a preliminary MCDR by the 8th calendar day of the month following the quarter end (moved forward to the next business day if that date falls on a weekend.)

For this preliminary report [insert compact development team or THP acronym]-IFR will complete Column 2a only of the MCDR, reporting Permitted Account activity for the month, and submit it marked “PRELIMINARY”. Once submitted, MCC A&F will access this information and create the accrual entries it needs for MCC’s financial reporting. Since the Permitted Account information on this preliminary report is used for MCC accruals only, the IFA will not review and clear this preliminary submission.

[insert compact development team or THP acronym] must still submit the final MCDR report” by the 14th, as usual, with all columns of the MCDR completed and with updated Column 2a adjustments, if necessary.

If [insert compact development team or THP acronym] is not using a Permitted Account, it is not required to submit a preliminary report. However, they will still submit a usual MCDR report by the 14th.

Permitted Bank Accounts

A Permitted Account is a bank account(s) that have been individually approved by MCC under a bank agreement approved by MCC (typically a Lo.cal account in local currency and a Special account for USD).

Payments under this IFAP do not include the use of a Permitted Account. They will either be 1) made directly to vendors/contractors/staff, or 2) reimbursed to the [insert Government acronym] qualified payments it has made on behalf of [insert compact development team or THP acronym], using existing bank accounts of [insert Government acronym]. In either case, the payments will be effected through the Common Payment System (CPS), described below.[footnoteRef:8] [8: A competitive procurement for a bank will likely not be completed until after Compact or Threshold Agreement signing, meaning Permitted Accounts will not be available or required for payments or other fund transfers under this IFAP.]

The full Fiscal Accountability Plan will include procedures related to Permitted Accounts. Only qualified reimbursements of payments already made shall be disbursed to the [insert Government acronym] bank account. No other accounts shall hold MCC funding. Only MCC-funded payments requiring CPS will be handled by the IFA.

The Common Payment System (CPS)

All payments made under this IFAP will be made directly to vendors/contractors/staff through CPS.

CPS refers to a system used by MCC and its financial service provider IBC, to process payments directly to vendors or staff in [insert local currency and/or U.S. Dollars] for goods, works, and services received by [insert compact development team or THP acronym] or any of its Implementing Entities. CPS is comprised of two systems: The International Treasury Services (ITS) and the Secure Payment System (SPS). The Secure Payment System (SPS) is used for payments to U.S. Banks and the International Treasury System (ITS) is used for payments (USD or local currency) to banks outside the US.

Under this IFAP, all payments will be submitted by the [insert compact development team or THP acronym]-IFR directly to the IFA for processing by IBC after all required approvals are completed by [insert compact development team or THP acronym] and the IFA.

[insert compact development team or THP acronym] Signatories for the CPS Payments[footnoteRef:9] [9: In some AE’s during the development phase, the MCC Country Team Lead and MCC PFS Director, acting as the IFA, are the signatories on the Payment Request Forms (PRFs) to ensure segregation of duties between invoice approvals and payment approvals.]

[insert compact development team or THP acronym] staff members with signature authority and primary responsibility for the CPS payment process are as follows:

· [insert compact development team or THP acronym] Financial Management Specialist

[insert compact development team or THP acronym] staff members with signature authority and alternate responsibility for the CPS payment process are as follows:

· Deputy Executive Director

· Financial Management Specialist

The [insert CDT or THP lead] shall ensure that at all times two staff members with signature authority are available to meet [insert compact development team or THP acronym] payment processing requirements.

The persons listed above must complete an Authorized Signature Card form which will be kept on file with MCC and IBC. Once the Authorized Signature Cards are complete, [insert compact development team or THP acronym] sends the Cards to MCC. Upon receipt of the Authorized Signature Card from [insert compact development team or THP acronym], IFA reviews and signs it. The Authorized Signature Card is then forwarded to A&F FMD to log and pass to IBC for activation. Each authorized signatory should retain a copy of their signature card for their records.

Procurement and Financial Management Process Flow Procurement Processes: [insert compact development team or THP acronym] PPG Procurements Please see the Interim Procurement Operating Manual and MCC’s PPG for instructions

Procurement Processes: [insert compact development team or THP acronym] Operational Expenses (Non-PPG Procurements) Operational Expenses are purchases that are needed by [insert CDT or THP acronym] to perform day-to-day operations, and cannot be effectively procured using competitive methods following the MCC PPG for reasons such as:

a) items only obtainable from one source at a standard published price such as utilities, postage stamps and some limited types of advertisements, subscription services and software products;

b) travel costs for individuals on official travel for [insert CDT or THP acronym] hotel stays and taxis or other ground transportation.

Therefore, these services and goods are not to be included in the Procurement Plan and will not be procured by the Procurement Agent.

While the PPG-based procurements are carried out by the [insert CDT and THP acronym] Procurement Team (the IPR/Procurement Director with the support from the Procurement Agent), the items falling under Operational Expenses in Table 1 below will be undertaken by the [insert AE position (for example, IFR, Office Manager, Director of Administration)] as delegated by the [insert CDT or THP acronym] lead.

Table 1

1. Utilities

2. Public or legal notices in the local or international media.

3. Software or magazine subscription or other digital services when such services are available from a single source, are necessary and not subject to comparison with similar products in a competitive manner, and which are available only at a standard, published price.

4. Postal, courier services.

5. [insert CDT or THP acronym] routine vehicle or equipment operating and maintenance expenses (e.g., oil and tires and parking) or where there is an existing manufacturer’s warranty.

6. Hotel and taxi for [insert CDT or THP acronym] work related travel.

NOTE: [Insert CDT or THP acronym] may modify the Table 1 with the prior approval of the PFS Lead.

If determined an Operational Expense, the [insert delegated AE position (for example, IFR, Office Manager, Director of Administration)] will delegate within their team who has the authority for the relevant category of purchases and will make the purchase based on the payment options in Section [insert section related to secured bank debit card or direct vendor payment or petty cash or permitted account] and provide supporting documentation required for each payment method. The [insert delegated AE position (for example, IFR, Office Manager, Director of Administration)] is required to track and maintain all records of documents of the purchases, to include the price reasonableness check and eligibility checks, as applicable, for MCC and [insert CDT or THP acronym] audit purposes. MCC reserves the right to conduct a compliance review of these records.

Receiving Goods, Works and/or Services

Receiving Roles and Duties Requester: The requester shall review and validate that the goods, works, or services (deliverables) received are of acceptable quality and that they matched the requirements.

[insert compact development team or THP acronym]-IPR: The IPR will review and validate that the goods, works or services are in accordance with the contract provisions and the Purchase Order.

All goods and works shall be received and verified according to the following procedure:

1) [insert compact development team or THP acronym]-IPR and Requester shall be present to receive the goods/works.

2) The Requester ensures that the items/workmanship are correct per specifications.

3) The [insert compact development team or THP acronym]-IPR verifies that the items received and reviewed match the Purchase Order.

4) The vendor will bring a Delivery Note, acceptable to [insert compact development team or THP acronym], which is signed by both receivers.

5) After receipt of the invoice, the [insert compact development team or THP acronym]-IPR will prepare a Confirmation/Acceptance Note indicating that items/workmanship were received and accepted

6) The Requester shall approve and sign that Confirmation/Acceptance Note

In the event that the [insert compact development team or THP acronym]-IPR is also the Requester, a second, disinterested and qualified person shall be asked to also validate and sign for any goods or works received to avoid any conflict of interest.

All deliverables under a consulting or a non-consulting services shall be received and verified according to the following procedure:

1) The Requester shall receive the deliverables.

2) After receipt of the invoice, the [insert compact development team or THP acronym]-IPR will prepare a Confirmation/Acceptance Note.

3) The Requester shall approve and sign a Confirmation/Acceptance Note indicating that items/services were received and accepted.

In the event that the [insert compact development team or THP acronym]-IPR is also the Requester, a second, disinterested and qualified person shall be asked to also validate and sign the work Confirmation/Acceptance Note, to avoid any conflict of interest.

The Payment Period Payment on invoices must be made within thirty (30) calendar days of receipt of a valid invoice. This payment period commences with the day on which the valid invoice is received by [insert compact development team or THP acronym] (the “Payment-Period Start Date”). The Payment-Period Start Date shall not precede the date of the acceptance of the goods, works, or services provided, except in cases where advance payments are required and approved. [insert compact development team or THP acronym] is required to ensure that payments are made within the time-frames (“Payment Period”) as follows.

Making Payments

In order to make payments, and approved QDRP must be in place for the quarter. Payments are to be made in alignment with the Detailed Financal Plan – Cash for the quarter included in the approved QDRP.

Payments shall be made via the Common Payment System (“CPS”) directly to vendors after the proper procurement procedures per the IPOM or other commitments i.e. expenses per the IFAP, have been followed. Note that payments will only be processed prior to published CPS cutoff dates. IBC does not process payments during the last five (5) business days of each month.

The steps in the standard payment process are (see section 9.5.1 for more detail):

1) Validate the receipt of goods/works or deliverables and prepare supporting documentation

2) Validate the package and review compliance with contract. Ensure that all supporting documentation providing evidence that the goods, works, or services were received is included in the package.

3) Obtain the proper signatures and approvals within [insert compact development team or THP acronym]

4) Submit a Payment Request Form (PRF) and an appropriate (US/non-US) vendor form (for new and updated vendors) to MCC

Pre-payments are permitted by exception for Administrative Expenses, but only allowed when there are no reasonable alternatives. It is recognized that they are often standard on transactions such as advertisements, deposits on rent, deposits on venues. The pre-payment should be justified in the Quotation Review Report for SOP purchases or in the Direct Obtainment Form for direct obtainment purchases (both forms may be found in the IPOM).

The steps in the pre-payment process are (see section 9.5.2 for more detail):

1) Validate the package and review compliance with contract. Ensure that all supporting documentation providing evidence that the goods, works, or services were received is included in the package.

2) Obtain the proper signatures and approvals within [insert compact development team or THP acronym]

3) Submit a Payment Request Form (PRF) and an appropriate (US/non-US) vendor form (for new and updated vendors) to MCC

4) Validate the receipt of goods/services or deliverables and prepare supporting documentation

Standard Payment Process

1. Validate the receipt of goods/works/services and prepare supporting documentation

a. [insert compact development team or THP acronym] shall insure that the goods, works and services have been properly received in accordance with the terms of the contract and the Receiving process contained in this document

b. The supplier/provider shall send the original invoice to the [insert compact development team or THP acronym]-IFR who will log its receipt, include an official receipt date and conduct a preliminary review before providing a copy to the [insert CDT or THP leader] for review and approval. The preliminary review will verify that the following elements are present:

· Name of vendor

· Address (and if available telephone number) of the vendor

· Invoice number and date of invoice

· [insert compact development team or THP acronym] as the addressee of the invoice

· Contract-/Purchase Order number (where applicable)

· Description, quantity, and period of performance of goods/works/services purchased and received

· Numerical correctness (multiplication of quantities and sum of positions) of the invoice

· Sub-total, taxes applied (if any) and total amount and currency due

· Method of payment – if via bank transfer the invoice should include name of account holder, account number (IBAN), bank name, bank branch, and SWIFT code

· Consistency of account information with the contract or as revised by the individual authorized to do so in the contract. Revisions to payment information are only accepted in writing and must be documented and approved in the same manner as an amendment to the agreement.

Note: Invoices that are missing applicable elements from the list above shall be returned by the [insert compact development team or THP acronym]-IFR to the vendor for completion/correction and re-submission which will then reset the payment period.

c. The [insert compact development team or THP acronym]-IFR shall enter the date of the invoice promptly into its tracking system in order to comply with the payment period.

d. The [insert compact development team or THP acronym]-IFR verifies and logs the budget line item related to the invoice, as well as the total budget available in that line item.

e. The [insert compact development team or THP acronym]-IFR shall notify the [insert CDT or THP leader]indicating the Payment Period Start Date and request the supporting documentation for that particular invoice[footnoteRef:10].

[10: Note that if the IFR does not receive the set of documentation by the 8th business day, it may not be able to make a payment to the supplier/provider within 22 business (30 calendar) days after the receipt of the valid invoice.]

f. The relevant [insert compact development team or THP acronym] member is responsible for:

i. Submitting all supporting documentation (such as receiving and inspection reports, bill of lading, etc., Certificate of Delivery or Work Confirmation/Acceptance Note as noted in section 10.2) to the [insert compact development team or THP acronym]-IFR, or;

ii. Issue a rejection letter explaining the reasons for rejecting the invoice and citing the contract requirements which were not met.

2. Validate the package and review compliance with contract

a. If the invoice is not rejected by the [insert compact development team or THP lead], the [insert compact development team or THP acronym]-IFR shall check the completeness and accuracy of the supporting documentation.

b. The [insert compact development team or THP acronym]-IFR shall be responsible for certifying the following in a standard checklist:

i. That the invoice complies with the contract.

ii. That the supporting documentation provided is complete.

iii. Whether a payment made in satisfaction of the invoice is compliant with all relevant conditions and all approvals required in the CDF Agreement, and other relevant supplemental agreements.

iv. That the expense is consistent with the MCC Cost Principles for Government Affiliates.

v. That there is sufficient budget to make the payment.

vi. That there is sufficient disbursement authority, approved by MCC by Project and Activity, to execute the payment.

vii. That the vendor is not excluded from receiving US funding per the standards included in the Eligibility Verification section of the Program Procurement Guidelines. This check must be performed for each initial payment to any vendor and at least every six months thereafter.

If there are any discrepancies or the invoice has material errors per the standards, the [insert compact development team or THP acronym]-IFR shall return the invoice and related documentation to the relevant [insert compact development team or THP acronym] member with a written explanation for the rejection. This rejection should be acknowledged by the relevant [insert compact development team or THP acronym] member and the invoice officially rejected and returned to the vendor, which stops the payment period clock. If the rejection was related to the vendor being included on any excluded or debarred lists, the rejection notification must be transmitted to the IFA as well.

c. Once the [insert compact development team or THP acronym]-IFR is satisfied, he/she prepares and signs (as the “Preparer”) a Payment Request Form (PRF).

3. Obtain the proper signatures and approvals within [insert compact development team or THP acronym]

a. The [insert compact development team or THP acronym]-IFR reviews and approves the PRF and submits to the [insert CDT or THP leader]for approval.

b. The [insert CDT or THP leader] reviews and rejects or approves the PRF.

c. Note – the certifications included on the Payment Request Form are the responsibility of the two signatories listed above.

4. Submit a Payment Request Form (PRF) to MCC

a. Once the PRF is approved and signed, the IFR forwards the PRF along with the supporting documentation and the checklist certifying the verification of the requirements to the IFA for processing.

b. The PRF should be submitted to the IFA within 15 days of receipt of a valid invoice from the vendor.

c. The IFA or his designee reviews and approves after ensuring that the goods, works, or services being paid are those supported by the CDF Agreement and that the supporting documentation supports the amount paid. The MCC Country Team Lead approves and signs the PRF for payment and forwards to the IFA or his designee.

d. The IFA or his designee reviews the PRF and supporting documentation to ensure the mathematical accuracy, the budget availability, and that the required approvals are obtained and properly documented. The IFA then signs the PRF and forwards to IBC for processing through Axway secure transport site.

e. The [insert compact development team or THP acronym]-IFR shall monitor payments via the CPS Report in MCC-MIS, and record the expense and retain a copy of the approved documentation and maintain the records.[footnoteRef:11] [11: For Threshold programs, the CPS report is sent via email weekly, ]

Pre-payment Process

1. Validate the package and review compliance with contract

a. The supplier/provider shall send the original invoice to the [insert compact development team or THP acronym]-IFR who will log its receipt, include an official receipt date and conduct a preliminary review before providing a copy to the [insert CDT or THP lead] for review and approval. The preliminary review will verify that the following elements are present:

· Name of vendor

· Address (and if available telephone number) of the vendor

· Invoice number and date of invoice

· [insert compact development team or THP acronym] as the addressee of the invoice

· Contract-/Purchase Order number (where applicable)

· Description, quantity, and period of performance of goods/services purchased

· Numerical correctness (multiplication of quantities and sum of positions)…