Project Closure WebEx Presentation 20150615

7/24/2019 Project Closure WebEx Presentation 20150615

1/22

Project ClosureWebEx Session, 15 June 2015

IPAS Finance, SPMPG and FPG
http://www.unops.org/


2/22

Overview of Presentation

1 Update on Projects in Closure in UNOPS

2 Project Closure Tool / Process

3 Atlas Statuses

4 Roles and Responsibilities

5 How to Prevent Common Closure Issues

6 How to Overcome Closure Challenges


3/22

Update on Projects in Closure

Projects ended on or before 30 June 2014 but NOT yet closedfinancially :

434

OOn Going Y - ClosingCOperationally

ClosedZ - Freeze

14 27 200 193

1 January 2016:

Agresso will be introduced so projects pending

closure is to be prioritized to avoid carrying them over

from Atlas.


4/22

Project Closure ProcessOperational Closure (PM/ECM)

Tools Project Closure Tool

a) Operational Closure Checklist Complete the operational closure checklist

Upload the required documents

Change status of project toCin ATLAS

b) Initiate Financial Closure Initiate financial closure and submit it to RFMO/IPAS

Upon initiating financial closure, an email is sent to

RFMO/IPAS to complete financial closure checklist.

Operationally Closed (C)

Please ensure that all POs are closed before

initiating financial closure
https://intra.unops.org/apps/ProjectClosure/https://intra.unops.org/apps/ProjectClosure/


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Project Closure ProcessFinancial Closure (RFMO/FPG)

a) Financial Closure Financial closure checklist

Review Balance sheet accounts

Prepare Financial Statement

Submit Financial Statement

b) Certify Final Financial StatementFinancially Freeze (Z)

Refund/write-off/Collection

Approve refund/write-off Process/refund/write off

c) Final Closure Request Financial Closure

Financially Closed (F)


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Atlas Statuses

O(on-going)

All transactions possible in project Will appear in PCT once the end date has passed

Y

(closing)

All transactions possible in project A project should be set at Y as soon as the

project is ready for closure

C

(operationally closed)

All Transactions possible in projects with StatusC EXCEPTfor Requisitions, POs and Receipts

Z

(financial Freeze)ONLY FPG CAN SET

STATUS AT Z

No transactions possible; project is inactive Once a project is set at Z, it should remain in Z

F

(financially closed)

ONLY FPG CAN SET

STATUS AT F

No transactions possible; project is inactive


7/227

Roles and Responsibilities in Project Closure

Role Responsibility

Engagement Authority

Formal authority from the ED to accept engagements; thereforethe EA role in project closure is authorization of operational

closure of projects

Project Manager Operational closure

Changes Atlas status to Y and C

Proper handover to ECM

Engagement ClosureManager (ECM)

Manage process from handover to financially closed Make final adjustments to Project GL if requested by RFMO

Communication between UNOPS and client/funding source

Obtain clients acceptance of FFS

Good client relations

Archives files

RFMO Complete financial closure checklist

Prepare project final financial statement

Verify and recommend for refund to FPG

FPG Review balance sheet accounts

Certifies Final Financial Statement (FFS)

Change Atlas status to Z

Create AP Voucher in case of refund Change Atlas status to F


8/22

How to Prevent Common

Closure Issues


9/22

Planning and Monitoring

Closure negotiations with the client/funding source must be carried out

during the start of a project and planned in advance:

START

a project

RUN

a project

CLOSE

a project

Negotiated Planned Implemented

If the right foundation is not in place closure can become a major liability

for the organization.


10/22

Closure Plan

A closure plan is prepared as partof subsequent stages and is approved

by the Project Board before

implementing the Final Stage.

The more included in the legalagreement on closure during project

initiation, the easier it is to ensure that

product acceptance and closure

activities go smoothly.

Closure cost Auditrequirements Personneldrawdown Timing of assetdisposal Financial closedown

Transfer ofarchives

ReportingRelease ofresources

Release ofpersonnel

Completion ofFinal narrative

report

Transfer ofdocuments to

OC/PC/Cluster

Issuance ofinterim & finalfinancial report

to fundingsource/client

Defects andLiability

(infrastructure)


11/22

Key considerations

Client Acceptance

Client acceptance is an important

confirmation that a project or work

package is completed and the agreed

deliverables are delivered. Obtaining

this acceptance from the client forboth operational and financial closure

in the Final Stage of the project is a

must.

Electronic Blue FileEnsure the EBF is up to date

Asset DisposalAsset disposal is a key element for close

down of any engagement and it

represents a serious risk to the

organization if not handled correctly

Lessons Learned

Ensure the lessons learnedduring life cycle of project are

documented and uploaded on

EBF

ArchiveDocuments archives are in

good shape
https://intra.unops.org/resources-support/knowledge-system/projectmanagement/Pages/Endorsed/EBF.aspxhttps://intra.unops.org/resources-support/knowledge-system/projectmanagement/Pages/Endorsed/Asset%20Disposal.aspxhttps://intra.unops.org/resources-support/knowledge-system/projectmanagement/Pages/Endorsed/Asset%20Disposal.aspxhttps://intra.unops.org/resources-support/knowledge-system/projectmanagement/Pages/Endorsed/Asset%20Disposal.aspxhttps://intra.unops.org/resources-support/knowledge-system/projectmanagement/Pages/Endorsed/EBF.aspx


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Common problems during project closure

Operational Closure Financial Closure

No objection on completion of

project activities

Final narrative report

Assets not transferred orproperly documented / handover

documentation missing

POs not closed

Transactions in open period

Fees not applied correctly

Transactions not posted to correct COAs

Outstanding balance under advancedaccounts (VAT, operational advance, petty

cash)

Interest utilized without client permission

Project is overspent


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13

Project Closure Monitoring

Assign Engagement Closure Managers

Generate closure report from PCT to track progress and next action pending

PCT status (next action)PM: change the status to final stage closing (Y) or extend the end date of project

PM: Operational closure checklist

RFMO: prepare financial statement

RFMO: financial closure checklist

FPG: certify financial statement

FPG: change the status of the project to financially frozen

PM: Request refund / write-off / collection

RFMO: Approve refund / write-off

FPG: Change project status to Operationally Closed (C) to allow processing of refund or reject the refund

request

FPG: Process refund / write off

PM: Request financial closureEtc.

Remember to check the comments section in the PCT on progress


14/22

How to Overcome Project

Closure Challenges


15/22

Project Closure Tool (PCT)

When will a project appear in the PCT? When the status is set at Y or when the project end date in Atlas

has passed

Does PM need to send reminders to FPG and RFMO for next stepactions in closure?

No, FPG and RFMO receive notifications automatically

Can assigned users initiate financial closure / request refund or write-

off?

No, only the current PM of the project can do that


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Project Closure Tool (PCT)

How do I change the PM in PCT?

You need to change the Atlas PM. Instructions can be found hereor

you can contact SPMPG at [email protected]

Do I need to close admin projects through the PCT?

No, admin projects can be closed by contacting the Strategic Planning

and Reporting Specialist: Sven Eckert ([email protected])

What if I have technical issues with the PCT?

Please get in touch with [email protected]
https://intra.unops.org/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/How%20To%20Update%20PM%20Name%20in%20Atlas.pdfmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://intra.unops.org/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/How%20To%20Update%20PM%20Name%20in%20Atlas.pdf


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Client Refund / Final Financial Statement (FFS)

What do I do when Im not able to get client confirmation for a refund?

In case the client does not respond to the FFS, it is possible to proceed with the

closure if there has been enough attempts made to reach them. This would require

preparation of a detailed note to file with supporting documentation to be uploaded

in the PCT after which FPG should be requested to close the project.

It is recommended th at UNOPS shou ld try every opt ion to reach the dono r in

order to refund the surplus and al l these effor ts sho uld be do cum ented in

ch rono logic al ord er for audit pu rpo ses. So please keep track of al l types of

communicat ion w ith the cl ient .

A clause has been included in the FFS cover letter that any surplus/deficit below

USD 2,500 will be absorbed by UNOPS if client does not come back within 3

months


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Over-expenditure and Write-offs

What do I do in case a project is o verspent?

1. Contact client: Retrieve the outstanding amount and explain the reason for over-

expenditure

If i t is not p oss ible to retr ieve outs tanding amoun t after exhaus t ing al l

ef for ts:

2. Write-of f ( in acco rdance with OD 32)

< USD 2,500: write-off templateto be filled by ECM, uploaded in the PCT along

with FFS showing the deficit (for internal use only). To be certified by FPG.

> USD 2,500: write-off templateto be pre-cleared by RFMO before submitted to

HQCPC. Certified FFS required, showing the over-expenditure and certified by

FPG for internal use only
https://intra.unops.org/resources-support/policies-and-procedures/Policy%20Coordination%20Document%20Library/Organisational%20Directives/OD32%20-%20Establishment%20and%20approval%20of%20write-offs%20and%20provisions%20for%20write-offs.pdfhttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/resources-support/policies-and-procedures/Policy%20Coordination%20Document%20Library/Organisational%20Directives/OD32%20-%20Establishment%20and%20approval%20of%20write-offs%20and%20provisions%20for%20write-offs.pdf


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Defects Liability Period (infrastructure projects)

How to d eal with pro jects w ith defects l iabi l ity per iod?

Set the Atlas status at Y (all transactions are still possible in Y)

Complete the operational closure checklist to the extent possible

After defects liability period has ended:

Proceed with closure as normal (complete operational checklist, set

Atlas status at C, initiate financial closure etc.


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Vendor bank details

The vendor bank ing detai ls are not c orrect. What do I do?

Please ensure that bank details match information from Atlas and client

confirmation

In case of multiple bank accounts in Atlas, please ensure the bank

account for the refund is included in the client confirmation letter If needed, please ask client to complete and return theAtlas vendor form

For issues related to vendor establishment, please contact:

[email protected]

Cheques can be issued
https://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1mailto:[email protected]:[email protected]://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1https://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttp://www.unops.org/


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Further Guidance and Templates

Guidance Templates

Project closure tool

PCT User Manual

Financial closure of projects

Closing an engagement

Closure plan

Negotiation on closure

Engagement closure

Final Financial Statement

Template

FFS Cover Letter Template

Client confirmation and Bank

Account Details

Atlas vendor form

Template request for write-off
https://intra.unops.org/apps/ProjectClosure/https://intra.unops.org/ToolsResources/KnowledgeSystem/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/PCT%20User%20Manual%20Final_040711.docxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/finance/Pages/Endorsed/Financial%20Closure%20of%20Projects.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Endorsed/Engagement%20Closure.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Endorsed/Closure%20Plan.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Knowledge%20under%20Development/Negotiation.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Knowledge%20under%20Development/Engagement%20Closure.aspxhttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Final%20Financial%20Statement%20Template%2010%20Jul%202013%20V2.xlsx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Final%20Financial%20Statement%20Template%2010%20Jul%202013%20V2.xlsx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2020%20Nov%202013%20with%20new%20footnote.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2020%20Nov%202013%20with%20new%20footnote.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2026%20Sep%202012.dotxhttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1https://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1https://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Document%20Library%20migrated/Templates/Write%20Off/Template%20Request%20for%20Write%20off.docx&action=defaulthttps://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1https://intra.unops.org/practices/finance-FPG/_layouts/15/WopiFrame.aspx?sourcedoc=/practices/finance-FPG/Documents/FPG%20Guidance/Vendor%20Form.doc&action=default&DefaultItemOpen=1https://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Template%20for%20Client%20Confirmation%20and%20Bank%20Details.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2026%20Sep%202012.dotxhttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2020%20Nov%202013%20with%20new%20footnote.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/FFS%20Cover%20Letter%20Template%2020%20Nov%202013%20with%20new%20footnote.docx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Final%20Financial%20Statement%20Template%2010%20Jul%202013%20V2.xlsx&action=defaulthttps://intra.unops.org/resources-support/knowledge-system/finance/_layouts/15/WopiFrame.aspx?sourcedoc=/resources-support/knowledge-system/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/Final%20Financial%20Statement%20Template%2010%20Jul%202013%20V2.xlsx&action=defaulthttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Knowledge%20under%20Development/Engagement%20Closure.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Knowledge%20under%20Development/Negotiation.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Endorsed/Closure%20Plan.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/projectmanagement/Pages/Endorsed/Engagement%20Closure.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/finance/Pages/Endorsed/Financial%20Closure%20of%20Projects.aspxhttps://intra.unops.org/ToolsResources/KnowledgeSystem/finance/Documents/Templates/Project%20Financial%20Management/8.%20Financial%20Closure%20of%20Projects/PCT%20User%20Manual%20Final_040711.docxhttps://intra.unops.org/apps/ProjectClosure/http://www.unops.org/


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THANK YOU

For any questions related to project closure, please contact:

Marianne PEDERSEN, SPMPG

[email protected]

Faisal Jamal KHAN, FPG

[email protected]

Ana TSIVTSIVADZE, IPAS Finance

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.unops.org/

Project Closure WebEx Presentation 20150615

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