28-Jun-2022 ______________ Abdallah Al Dardari United Nations Development Programme UNOCA Complex, Jalalabad Road Kabul, Afghanistan RE: ARTF Grant No. TF0B9025 Afghanistan NGO/CSO Capacity Support Project Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Grant Agreement between the United Nations Development Program ((“UNDP” or the “Recipient”), and the International Development Association (the “Association”), acting as an administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund 28-Jun-2022 (ARTF), for the above-referenced project, dated _____________. The Standard Conditions, as defined in the Grant Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0B9025 (“Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Association’s public website at https://www.worldbank.org, and are an integral part of the Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Grant is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. (i) Disbursement Arrangements General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, information on registration of authorized signatures, processing of withdrawal applications, and instructions on supporting documentation, and frequency of reporting on the Advance. (ii) Electronic Delivery. Reference to Section 7.01 of the Standard Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the Bank. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the World Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (“IFR”) for the Project covering such quarter. Per FMFA, UNDP will submit the grant’s annual financial statement of account within six months of the close of its financial year. (ii) Audits.  External Audit. The Recipient shall ensure that the audit of the Project is governed by its Financial Regulations and Rules. In addition, the Recipient shall carry out any additional due diligence activities as agreed by the Recipient and the Association in accordance with the provisions set forth under Section II.B.4 of Schedule 2 to the Grant Agreement.  Internal Audit. The UNDP Office of Audit and Investigations (OAI) may conduct project-specific audit if it determines that such project audit is warranted, based on its risk-based work planning process. The Bank may request a project-specific audit, which OAI will consider. Any resulting audit reports will be made available in accordance with UNDP’s internal audit public disclosure policy. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website and “Client Connection”. The Association recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Financing, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the Association by email at Askloans@worldbank.org. Yours sincerely, ____________________________________ Melinda Good Country Director Afghanistan, South Asia Region International Development Association Attachments 1. Form of authorized Signatories 2. Form of Interim Unaudited Financial Report (IUFR) Schedule 1 : Disbursement Provisions Basic Information Recipient United Nations Stated in section IV.B.6. of Schedule 2 to the ARTF Grant Development Program Closing Date Agreement. Number (UNDP) ARTF Grant _________ Name of the Afghanistan NGO/CSO Disbursement Four (4) months after the closing date. Project Capacity Support Deadline Date Project Subsection 3.7 * Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (*) Subsections 4.3 and 4.4 (*) Direct Payment No Not Applicable Reimbursement No Not Applicable Advance Yes Interim Financial Reports (IFRs) (Attachment 2 of the DFIL) Special Commitments No Not Applicable Designated Account (Sections 5 and 6 *) Pooled – UNDP Corporate Account, segregated ledger Type account shall be maintained to record the receipt and Ceiling Variable usage of funds. An account indicated by UNDP and acceptable to the Financial Institution Currency USD Association Quarterly Based on the 6 months forecast provided in the Frequency of Reporting Amount Interim Financial Report approved by the Bank. Minimum Value of Applications (subsection 3.5) Not Applicable Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) The Form for Authorized Signatories Letter is provided in the Attachment 1 of this letter which should be furnished to the Association at the address indicated below, providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications : The World Bank Afghanistan Country Office Attention: Country Director, Afghanistan All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web portal Client Connection. Other Disbursement Instructions 1. The grant funds will flow directly from the World Bank to the UNDP’s corporate bank accounts. UNDP will be responsible for transferring funds to Afghanistan via the UNDP’s pooled bank account in local commercial bank for payments within Afghanistan. UNDP will be responsible to arrange transfers to the eligible recipients including the low value grants. 2. Further Advances may be made from UNDP to the LVG recipient NGOs/CSOs to their segregated accounts in local commercial bank in case the Sub-grant is provided for specific activities of the NGOs based on actuals expenditures. The quarterly IFRs will report advances given to the NGOs/CSOs and actual expenditure incurred. The Bank will document expenditure based on actual spending by the NGOs/CSOs as provided by UNDP. For the subgrant is provided on lump-sum approach, UNDP will release the sub-grant tranches to the NGOs and the funds will be recognized as expenditure upon money transfer. * Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Attachment 1 – Form of Authorized Signatory Letter [Letterhead] UNDP [Street address] [City] [Country] [DATE] The World Bank Country Office Kabul, Afghanistan Attention: Country Director RE: ARTF Grant No. TF0B9025 (Afghanistan NGO/CSO Capacity Support Project) I refer to (1) the Grant Agreement between the UNDP (the “Recipient”), and the International Development Association (the “Association”), acting as an administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund (ARTF), providing the above Financing. For the purposes of Section 3.04 (b) of the Standard Conditions as defined in the ARTF Grant Agreement, any 1 [one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal and applications for a special commitment under the above Financing. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3 [individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 5 [This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. In full recognition that the Association shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to 1 Instruction to the Recipient: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Association. 2 Instruction to the Recipient: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. 3 Instruction to the Recipient: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. 4 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Association. Process Applications and Supporting Documentation (“Terms and Conditions of Use of SIDC”), the Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Attachment 2- Form of Interim Financial Report (IFR) Project Name P….. & ARTF Grant Number STATEMENT OF RECEIPTS AND PAYMENTS & FORECAST For the Quarter Ended …...... USD Description Actual Reporting Year -To Cumulative Period Date to Date Opening Cash Balances for Grant XXX - Add: Sources of Funds Advances Received from the World Bank Reimbursement Total (A) - - - Uses of Funds Category description as per Financing/Grant Agreement Category 1: Sub-Grants Category 1: Goods Category 1: Consultancy Services Category 1: Non-Consultancy Services Category 1: Incremental Operating Cost Category 2: UNDP Indirect Cost (fixed percentage) Total Disbursements (B) - - - Closing Cash Balance A-B - - - Forecast for the six months ending xxxxxx Less: Closing Cash Balance (from (d) above) - Amount requested as advance in the application - Project Name P…... - ARTF Grant # USES OF FUNDS BY PROJECT ACTIVITIES For the Quarter Ended ….......... ACTUAL PLANNED VARIANCE ** PAD Revised Life of Project Components and Activities Current Cumulative Current Cumulative Current Cumulative Life of Project Period to date Period to date Period to date project * Component 1: (Description as per PAD) Component 2: (Description as per PAD) Component 3: (Description as per PAD) Component 4: (Description as per PAD) TOTAL PROJECT EXPENDITURES - - - - - - 0 * This column reflects a re-costing of the project done in xxxxx Not over ** Variances over 15% to be explained 15% ** Explanation of variances over 15% to be documented here. Project Name P….... - ARTF Grant # Account Activity Statement for ARTF Grant ….. for Quarter Ended ….... PART I USD USD 1. Cumulative advances to end of last reporting period as per client connection - 2. Cumulative expenditures to end of last reporting period as per client connection - 3. Outstanding Advance to be accounted as per client connection - PART II Opening Corporate Account balance at beginning of reporting period (as of …….) Add: Advances from World Bank during reporting period Total funds available during the quarter (A) - Grants to NGOs Goods, Consulting Services, Non-Consulting Services, Training, and Incremental Operating Cost - Total Expenditure and project's advances (B) - Closing balance (A-B) - Closing balance as per UN General Ledger for Grant XXX Difference (Should be nil, if not explanation to be provided) ** - *Note: Outstanding Advances provided under the project to be documented only after it has been acquitted **Explanation for the difference, if any in the closing balance PROJECT Number PROJECT NAME: GRANT NUMBER: XXXXX PERIOD COVERED: Recorded as expense by Transfers to NGOs UNDP In Balance In reporting Cumulative Cumulative reporting period to date to date period Approved Grant S.No NGO Name Province Sector Sub-Grant USD USD USD USD Cash Bank (USD) Account 1 - - - - - - 3 4 5 6 7 8 9 - - - - - - -