The Final reports shall be submitted in euro.
However, if the UN Agency’s accounting requirements impose the use of another currency, the reports can be submitted both in euro and in the holding currency used by the UN Agency.
The conversion into euro for purposes of reporting to ECHO shall be made using one of the following options:
1) The rate applied by the European Central Bank (“ECB”) as published in the Official Journal in force on the day on which the EU contribution was recorded in the accounts of the UN Agency. The ECB exchange rate is available online at: http://www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html;
2) The UN Agency's own exchange rate according to its accounting principles, on the day on which the EU contribution was recorded in the accounts of the UN Agency; or
3) Where justified in a particular Action the UN Agency may request a derogation and use another exchange rate or conversion method. The derogation can be requested in section 11 of the Single Form. Alternatively, if the UN Agency intends to use a different exchange rate or conversion method on a permanent basis, it can request a permanent derogation to ECHO.
The currency conversion option (list above) to be applied to the Action must be specified in Article 6.4 of the Agreement.
Please note that exchange rate losses are not eligible costs and will not be compensated, according to Article 19.7 of the General Conditions
CURRENCY AND IMPLEMENTING PARTNERS/CONSORTIUM
The lead partner is responsible for the financial reporting to ECHO. The exchanges rate for costs incurred by implementing partners/consortium members is an internal matter agreed upon the lead partner and other members.
CONVERSION BETWEEN THE HQ CURRENCY AND OTHER CURRENCIES USED FOR THE ACTION
The way that a UN Agency converts other currencies used in the implementation of the Action (e.g. local currencies in countries of implementation) into the currency of its general accounts at HQ (e.g. US dollars or Swiss Francs etc.) is primarily an internal matter which must be performed in compliance with the Organisation's usual accounting practices, examined in the Pillars Assessment exercise, and foreign exchange rules.
There are different systems for recording expenditure in different currencies, for example using the rate on the first day of the month, the rate on the actual day or weighted monthly averages.
The UN Agency may decide which conversion method to apply in a given Action on the condition that the foreign exchange conversion system:
- is according to its usual accounting practices;
- is applied consistently throughout the whole Action, to all types of transactions and funding sources;
- can be evidenced (i.e. the decision/policy is documented in writing) for purposes of any future verification.
References & useful links