UNDP/ADM/99/61

UNDP/ADM/99/61
20 August 1999

1. Background

      UNDP has established guidelines related to advances for purchase of private automobiles. As announced in circular UNDP/ADM/92/22 of 19 March 1992, the maximum amount of car advances is US$7,500. Requests for such advances are considered only once per assignment at a duty station.

2. Conditions for eligibility

a) The following internationally-recruited staff who are assigned to a country office are eligible for a salary advance for the purchase of a private automobile:

• 100 series staff as follows:

all staff in the FSL category (this category is almost all phased out);
all staff at level KS-8 (P-l level) to KS-1 1 (P-4 level);

• 200 series staff up to and including L-4 level.

b) Certification from the Resident Representative is required that a vehicle is necessary in connection with the staff member’s assignment at the duty station and that it is not a luxury car.

c) Advances for the purchase of a private automobile are granted on the understanding that the staff member intends to keep the vehicle for at least two years or for the duration of his/her assignment, whichever is shorter.

3. Current Procedures

a) All requests for advances for the purchase of a private automobile are currently submitted (through the country office administration) to the staff member’s Personnel Specialist in the Office of Human Resources immediately prior to, or after the staff member’s assignment to the duty station. The request is submitted with the Resident Representative’s certification that the vehicle is necessary in connection with the staff member’s assignment and that it is not a luxury vehicle. The following information is submitted with the car advance request:

• the amount of the advance requested;
  
  
• the currency in which it is to be paid;
  
  
• the number of months (not exceeding twelve or the duration of the staff member’s appointment, whichever is shorter) over which it is to be recovered;
  
  
• whether other sources of financing for the purchase have been sought, and the result of such efforts; and
  
  
• where the advance is to be paid.

b) OHR verifies that the conditions of eligibility are met and certifies the advance request for the staff?‘member. The United Nations Payroll Section then authorizes the car advance in either local currency or in convertible currency at the place indicated by the staff member. The advance is recovered from the convertible portion of the staff member’s salary by regular payroll deductions over a period not exceeding twelve months or the duration of the staff member’s appointment, whichever is shorter.

4. Revised Procedures

a) In order to expedite service, including payment, to staff members, Resident Representatives are now authorized to approve advances up to US$7.500 for the purchase of a private automobile in local currency or US dollars subject to the eligibility conditions specified above. The Resident Representative pays the staff member the car advance, charging the amount to a separate ARL to be reported in F5.02 under “Other ARL” showing details of the closing balance. The advance is to be recovered locally from the staff member over a period not exceeding 12 months or the duration of the staff member’s appointment. whichever is shorter. Car advances approved locally by the Resident Representatives will not be recovered from the staff member’s salary by regular payroll deductions. Instead, the car advance must be recovered locally on a monthly basis in the currency in which it was made. Resident Representatives must ensure that the appropriate recovery is made in a timely manner. Staff members are responsible for making the necessary arrangements to reimburse the organization accordingly and for ensuring that a proper percentage of their salary is assigned to the duty station in the appropriate currency for repayment of monies due the organization.

b) Country offices must contact the respective Personnel Specialist of BPRM/OHR in cases where a car is pending or when there is a problem in recovering the car advance locally from the staff member.

c) Resident Representatives are expected to request the staff member to sign a car advance request form which includes a written undertaking:

• authorizing UNDP to recover any outstanding amount of car advance from the staff member’s salary by regular payroll deductions (in case of premature reassignment) and/or final emoluments (in case of premature separation); and
  
  
• indicating the staff member’s intention to keep the vehicle for at least two years or for the duration of the assignment, whichever is shorter.

d) The standard Car Advance Request Form and Written Undertaking is enclosed as Annex “A”.

e) Staff administered by UNOPS must continue to address the request for car advance to UNOPS Headquarters.

5. Accountability

a) Staff members are responsible for meeting their financial obligations to the Organization on a timely basis through regular monthly repayments.

b) Resident Representatives are responsible for the follow-up and collection of advances approved by him/her as chargeable to the ARL. They are accountable for the following critical aspects of this delegated authority:

• that the conditions of eligibility as indicated above are fully met;
  
  
• that the staff member signs the necessary car advance request and written undertaking form (enclosed as Annex “A”); :
  
  
• that the administering unit of the country office sets up the appropriate recovery arrangement, charging the amount to a separate ARL to be reported in F5.02 under “Other ARL”;
  
  
• that the Office of Human Resources is informed of any outstanding amount that needs to be recovered from the staff member’s salary by regular payroll deduction (in case of premature reassignment) and/or from the staff member’s final emoluments (in case of premature separation). Any outstanding obligations of staff members to UNDP country’offices must also be reported in the Field Clearance Certificate.

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