zanders ngo event december 2014: unhcr
TRANSCRIPT
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Centralized Cash Management
Ms. Carmen Hett
UNHCR Treasurer
4 December 2014
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Enabling a Centralized Cash Management Approach :
- Capturing Global Cash Flows – ERP Automated Cash Flow Forecasting
- Payment execution release of funds through dedicated banking platforms
- Centralized funding of bank accounts in local currency – where possible
- Automated Electronic Bank Statements and Bank Reconciliations
HQ Treasury
Dedicated Banking Platform (s) at HQ and in Country
Underlying enabler – ERP - PEOPLESOFT - Finance & Supply Chain - TMS
ERP – Banking standardized Electronic Banking Communication Gateway
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ERP - TMS - Integrated Systems Architecture
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“End- to End – Processes” - Budget Planning - ERP – TMS
BUDGET PLANNING - Forecasted Cash flows
versus Actuals :
Purchase Requisitions
Purchase Orders (PO)
Implementing Partners Agreement (IP Module)
AP / AR
Payroll
Cash Flows – Forecast - Actuals Cash Actuals - Reconciliations
Identify timing of cash
needs replenishments
and global funding of
bank accounts
Assessment of Actual
cash payments versus
Budget Planning
Bank Statement
Processing
Bank Account
analysis and
reconciliation
ERP – Integration to Obtain Automated Cash Flow Forecasts
Automated
Cash Flow Forecasts
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TMS - Cash Flow VIEW - ERP System generated
Cash Flow (Short Fall) / Surplus
AUTOMATED Cash Flow forecasting Tool based on transactional
data in the ERP systems, e.g. Procurement (Requisitions, Purchase
Orders) to Implementing Partner Agreements to Bank, AR /AP,
Payroll .
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UNHCR – Global Operations in 127 Countries
183 field offices have operational banking requirements:
337 bank accounts
84 countries with two or less bank accounts
43 countries with more than two bank accounts
125 banking partners
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What drives the underlying requirements ?
Why Bank Accounts ?
Internal Factors
(UNHCR specific)
External Factors
(Country specific)
• Delegation of Authority Plan (DOAP),
Control and Oversight
• Human Resources / Travel Policies
• Petty Cash
• Private Sector Fundraising
• Specific Operational Requirements
• Implementing Partner Agreements
• Unstable Political Situation
• Geographical Remoteness, Distance and
Specific Operational Requirements
• Generally Accepted Business Practice
• Limited Local Financial/Banking System
and Restrictions to International
Banking
• Currency Restrictions and Protection
• Sanctions and Related Effects
UNHCR cannot influence external factors
Optimization potential in the UNHCR specific, internal factors
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Payment Execution – Transactions and Value
• EFT payments are most common, accounting for 91% in value terms and
76% in transaction terms
• Payments are executed through centralized pay-cycles (using two major
relationship banks) and at local level where required
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Centralization Impacts : Country, Regional or Headquarters
Design of Functional Processes
Approval, Control, Oversight
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Challenges and Resources
Organization
New policy considerations for organizational
structure, redesign of administrative, financial
and supply chain processes to further centralize
financial control and oversight on a country,
regional - to headquarters level
Bank Accounts
Focus on rationalizing local bank relationships
and leveraging existing global and regional bank
relationships through a well-defined BRM
strategy and guiding principles
Payments Execution
Leverage existing solutions (e.g. H2H), apply
stricter payment policies in third-party
agreements and explore card/mobile solutions
as payment mechanisms to be integrated in ERP
systems as payment type.
Technology
Explore the implementation of bank-agnostic
connectivity XML AND (SWIFT) – Further
integrate ERP systems to TMS and Banking
Communication.
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Direct Cash Assistance to Refugees
Using Biometrics Application– New Payment Technology Using Iris Scan - without card – without pin UNHCR- Cairo Amman Bank and IrisGuard
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