Overview of MSRP System and

Expenditure Process in UNHCR

Objectives
After completing this module, you should be able to:

Explain the use of MSRP system in UNHCR and the architecture of

Finance/Supply Chain module.

Explain the expenditure cycle in UNHCR and how delegation of

financial authorities is linked with the access to MSRP system.

MSRP - Overview
MSRP stands for Managing Systems, Resources & People.
It is a single integrated system that UNHCR uses to manage its resources human, material and financial.

It is a web-based software that can be accessed anywhere, anytime

msrp.unhcr.org

Four MSRP Applications

MSRP comprises four applications: Human Resources (HR) and Payroll,

Finance/ Supply Chain, Treasury Management and EPM Budgets

UNHCR staff member are given access to different parts of the

MSRP system , depending on the functions they perform.

MSRP Applications (cont.)

EPM/Budgets application is used to transfer budgets from Focus (UNHCR

planning software) to MSRP > Finance/Supply Chain application and to
perform budget target validation. It is also used for recording contribution
details, such as earmarking.

HR & Payroll application is used to administer employees personal and

job data, process staff leave and absence, manage their performance,
store salary scales, process payroll calculation and recruiting activities.

Treasury Management System is used to register UNHCR bank accounts

and signatories, forecast cash needs, submit replenishment requests and
perform bank reconciliation.

Finance/Supply Chain (FSC) application is used to process purchases from

suppliers, payments to staff and vendors, to record deposits to UNHCR
bank accounts and to manage fixed assets and inventories/stocks.

MSRP Finance/Supply Chain Modules

The FSC application is used to record all the steps of spending UNHCR funds on
goods and services required by UNHCR operations.
It includes the following modules:
1. Purchasing
2. Commitment Control
3. Accounts Payable
4. Accounts Receivable
5. Asset Management
6. Inventory
7. General Ledger

MSRP Finance/Supply Chain Architecture

Accounts
Receivable

Expenditure Cycle and Internal Control Functions

UNHCR disburses approximately US$2bn per year on its operations around

the world.

In order to secure effective control on the disbursement of funds, each

expenditure process must include the following five functions:
1.
2.
3.
4.
5.

Authorize Spending
Authorize Purchase
Confirm Delivery
Approve Payment
Execute Payment

The purpose is to ensure that UNHCR funds are spent:

On goods services required for the operation (necessary, suitable)

With value for money (quality/price) based on competitive supplier quotes
Suppliers are paid only for goods/services actually received by UNHCR

Five Functions Overview

1. APPROVE
SPENDING

2. APPROVE
PURCHASE

Identifies need
to spend

Selects a
qualified vendor
to meet the
need

3. CONFIRM
DELIVERY

Confirms
delivery of
goods and
Makes decision
services
to spend against
in accordance
a given budget Enters into
with the terms
legally binding
and conditions
Confirms
agreement with of purchase
availability of
an external party agreement
funds

4. APPROVE
PAYMENT

5. EXECUTE
PAYMENT

Prepares
payment in line
with purchase
agreement

Issues
instruction to
UNHCR bank to
execute the
payment

Approves
vouchers

Signs
instructions to
UNHCR bank

Who does what: Within each functional step, functional roles are
assigned to individuals to perform functions designated to them.

Financial Internal Control Framework

The Financial Internal Control Framework is based on:

Five functions that are performed to control the entire expenditure

process
Functional roles assigned to individuals based on their delegated authority
or specific area of technical expertise that enable them to perform these
functions
System (MSRP) controls that enforce automated application of UNHCR
financial rules
Two transactions types (PO and non-PO)

Type of Transactions

Non-PO Transactions: apply to lower value purchases (below $4,000 in

the field and at HQ), staff-related payments and IP transactions
In line with Chapter 8 section 2-7-4 of the UNHCR Manual, the ceiling of
$4,000 shall apply to cumulated purchases from the same vendor within a
quarter of a financial year period.
The first three functional steps of the expenditure cycle and the related
controls are performed off-line, through manual documents and
approvals.
MSRP must be used from the 4th step (approve payment).

PO Transactions: apply to purchases of goods or services over $4,000 in

the field and at HQ
All five steps of the expenditure cycle (from approving spending to
effecting payment) and related internal controls must be processed
through MSRP.

Advantages of PO-Transactions

Spending conducted under the PO Transaction Type make optimal

use of system controls:
.
- Budget Check
- Document Tolerance Check
- Automated voucher approval through 3-way matching process

All documents entered from Requisition to voucher are controlled

against each other to identify automatically any discrepancies.

As a result, there is less chance of errors related to data entry and

better controls throughout the transaction.

Five Functions in MSRP

For PO transactions, the five functions in the expenditure process as

explained earlier correspond to the following process steps/roles in MSRP:
1. Approve Spending
2. Approve Purchase
3. Confirm Delivery
4. Approve Payment
5. Execute Payment

=
=
=
=
=

MSRP:
MSRP:
MSRP:
MSRP:
MSRP:

Approve Requisition
Approve Purchase Order
Create a Receipt
Approve Payment (i.e. voucher)
Approve Pay Cycle

Expenditure Process in MSRP

Created when
we decide who
to place the
order with

Step 1:
Create
Requisition

Created when
we identify a
need for goods
or services.

Step 3:
Step 2:

Create
PO

Created when
we get the
invoice from
the supplier.

Created when
we actually
receive the
goods/service

Create
Receipt
Step: 4

Step: 5

Create
PO Voucher

Make
Payment

Delegation of Authority

In UNHCR, Senior Managers are entrusted with decision-making authority

and are hold accountable for all that occurs within their area of
responsibility.

In turn, they are allowed to delegate authorities to staff working under

their supervision to participate in spending, purchasing and payment
activities.

In order to ensure effective internal control on spending, staff members at

different management levels are granted different authorities in creating
and approving financial transactions.

To ensure adequate control, the functional roles must be properly

segregated so that no one person has a control from beginning to the end.

Delegation of Authority Plan (DOAP) and Access to MSRP

Representatives must designate staff in their offices to perform different

roles in each of the five functions of the expenditure cycle.

This must be documented through a Delegation of Authority Plan (DOAP)

matrix.
Each Delegation of Authority Plan should be built on the principles of the
Financial Internal Control Framework.

Based on the approved DOAP, staff members are given access to the parts
of the MSRP system that correlates to the functions that had been
designated to them.

Therefore, if any changes to the system access are required (to add or
remove users, or to change their roles), that must be requested through
the submission of a revised DOAP.

Sample Delegation of Authority Plan - DOAP

OVE
R
PPR
OR
A

VEN
D

OR
EN

TRY

MAN
AGE
R
YCL
E

PAY
C

PAY
M

ENT
A

PPR
OVE
R1

(ALL

on-P
O)
APP
ROV
ER

R (N

TEC
HNI
CAL

PRE

PAR
E

R (P
HER
VOU
C

HER

PRE

PAR
E

ces)
VOU
C

EIVE
R (S
ervi

ood
s

REC

REC

EIVE

R (G

PPR
OVE
R
PO
A

Function 5:
Execute
Payment

Function 4:
Approve Payment

VEN
D

Function 3:
Confirm
Delivery

R
RER

PO
PRE
PA

UISI

TION

APP
ROV
E

PRE
PAR
ER
REQ

REQ

UISI

TION

Job Title

Function 2:
Approve
Purchase

O)

Function 1:
Approve
Spending

Example #1: Small Field Office

Representative

Deputy Representative

(X)

(X)

(X)

(X)

(X)

Admin/Fin Assist

Secretary/Clerk

X
X

X
X

S,P,
N

X
S,P,
N

S = PO Supplier
P = Implementing
Partner
N = Non-PO

MSRP User IDs and Passwords

MSRP allows that transactions are entered on-line, resulting in fewer

papers circulating throughout the office.
It is no longer necessary to print document such as Requisitions and
Vouchers for approvers signatures and records.
These documents are approved on-line and electronic signatures are
stored in MSRP.
Important:
Any recording or approving action in MSRP is equivalent to signing a
printed document with a written signature.
Therefore, User IDs are for personal use only.
Do not share your MSRP password with anyone else, including your
supervisor, your colleagues, or support staff in the Global Service Desk.
Breaking these rules can result in a disciplinary action.