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Programme and Operations Policies and Procedures



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POPP>Financial Resources Management>Financial Management and Implementation Modalities>Harmonized Approach to Cash Transfers (HACT)
Método Armonizado para las Transferencias en Efectivo
1.0 Relevant Regulations and Rules
Reglamento y Reglas Financieras del PNUD (2012)
Regla financiera 118.08 a - c
Reglamento 21.02
Regulation 17.01 (a) (b) and (c), Regulation 17.03 (b), Regulation 16.04, Regulation 17.04, Rule 117.01 (a) and (b), Regulation 15.01
2.0 Policies
Main Policy
Método Armonizado para las Transferencias en Efectivo
3.0 Procedures
Main Procedures

Macroevaluación

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Microevaluación

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Transferencias de efectivo, desembolsos y presentación de informes

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Actividades de Garantía, planificación e implementación

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Language English | Español | Français
Page Properties
Key Words
None
Focal Point
Adam Phillion,John Rutere
Effective Date
01/01/2021
Planned Review Date
01/01/2023
Summary of Changes/Comments
January 01, 2021 - The updated HACT POPP is now available. The summary of the major changes and their implication on UNDP Offices are:
- Revision of the micro assessment threshold from $300k per programme cycle to $150k per annum (for partners already engaged in 2021 where the assessment cannot be performed because implementation is already underway, offices should upload a Note to File confirming the experience so far with the partner has not highlighted any risks that warrant a change in the implementation or cash transfer modality) and follow the prescriptive guidelines for non-assessed partners;
- The approved micro assessment and assurance activity plans (generated from the HACT SharePoint site) should be uploaded to the site semi-annually no later than end of February and end of July every year have been added in para 27 (m);
- Written approval of the Head of Office for cash transfers up to $150k issued to non-assessed partners who meet the threshold; written approval of the respective bureau for cash transfers exceeding $150k to none-assessed partners who meet the threshold have been added in para 27 (e);
- The frequency of submitting Assurance plans has been changed from annually to semi-annually, being no later than the end of February and July of every year, has been added in para 40 (a). This will ensure continuous monitoring and revision of assurance plans;
- Regarding spot checks, offices are now required to conduct the spot checks for Partners with actual expenditures incurred and reported exceeding $50,000 per year. This is indicated in para 6 and 40;
- Spot checks may be performed by qualified, experienced UNDP staff who are independent of the project for Partners below the micro assessment threshold ($150,000 per annum). However, the staff would need to obtain clearance in writing by their respective bureaus after confirmation of their experience, qualification and independence to the project;
- A revision to the frequency of audits has been added in para 6 and Table 2 where Partners that are risk rated “Low” and “Medium”, an internal control audit should be conducted at least once every other year if annual expenditure exceeds $200,000 per year. For Partners that are risk rated “Significant” and Unassessed Partners, financial audits should be conducted every year when expenditures exceed $200,000 per year. For Partners that are “High” risk rated, OFRM’s written clearance is required to engage and issue cash transfers to the partner; otherwise DIM audit guidelines apply if Direct Implementation or Full Country Office Support to NIM is selected.

February 11, 2020 - The HACT policy has been updated to reflect the following:

(1) The Micro Assessment Plan should be generated from the HACT monitoring platform and should be reviewed and approved annually (no later than sixty days after the start of the year) by the Head of Office and uploaded on the HACT platform. The plan should be used to schedule and track the completion of micro assessments.

(2) The Assurance plan should be generated from the HACT monitoring platform and it should be reviewed and approved annually (no later than sixty days after the start of the year) by the Head of Office and uploaded onto the HACT platform. The plan should be used for planning and tracking the completion of assurance activities.

March 19, 2019 - The updated Harmonized Approach to Cash Transfers (HACT) policy, tables and annexes are now available in French. To access these, click on the French language tab.

March 19, 2019 – The updated Harmonized Approach to Cash Transfers (HACT) policy, tables and annexes are now available in Spanish. To access these, click on the Spanish language tab. The tables are also available in the POPP templates library (document # POPP 11-2599), as are the annexes (document # POPP 11-2332).

Decemeber 04, 2018 – The Harmonized Approach to Cash Transfers (HACT) procedures are now available in French. To view the procedure table, click on the French language tab.

May 11, 2018 – The Harmonized Approach to Cash Transfers (HACT) policy was revised to reflect a $300,000 threshold per programme cycle for HACT micro-assessments and mandatory spot checks which, depending on the assessment risk rating, determines the appropriate cash transfer modality. Below this amount, offices may select the most appropriate cash transfer modality, taking into consideration any known risk factors. For Partners below the threshold, HACT micro assessment and spot checks may be performed at the discretion of the office based on other risk considerations e.g. the office has no previous experience with the Partner or the operating environment is considered high risk. However, programmatic monitoring requirements as specified in the PPM still apply in such instances. With the new policy change, desk reviews no longer need to be performed.
This change is effective immediately and applies to all partners (except UN Agencies) and grant recipients who receive funds from UNDP for implementation of development activities. The revision replaces the current UNDP HACT policy which requires any partners for whom the estimated programme cycle funding is equal to or greater than 10% of total estimated programme cycle funding and partners representing at least 60% by value of programme cycle funding to be micro assessed by an independent third party service provider and desk reviews be performed for the remainder.

April 24, 2018 - The HACT main procedures are now available in Spanish. These procedures are: (1) Macro Assessment; (2) Micro Assessment; (3) Cash transfers, disbursement and reporting, and (4) Assurance Activities planning and implementation. To access the procedures in Spanish, click on the Spanish language tab.

April 24, 2018 - The FRM HACT Tables are now available in Spanish. Hyperlinks to the Tables are incorporated into the following procedures on the HACT policy page: Cash Transfers, Disbursement and Reporting: Step 2; Assurance Activities planning and implementation: Steps 2, 3 and 8. To access the procedures in Spanish, click on the Spanish language tab. The document is also available in the POPP library templates (document # POPP-11-2599).

April 24, 2018 - The FRM HACT Annexes are now available in Spanish. Hyperlinks to the Annexes are incorporated into the following procedures on the HACT policy page: Assurance Activities planning and implementation: Steps 1 and 3. To access the procedures in Spanish, click on the Spanish language tab. The document is available in the POPP library templates (document # POPP-11-2332).

April 24, 2018 - The 2014 UNDG HACT Framework is now available in Spanish. Hyperlinks to the Framework are incorporated into the following procedures on the HACT policy page: Macro Assessment: Steps 1-5; Micro Assessment: Steps 1-3; Assurance Activities planning and implementation: Step 8. To access the procedures in Spanish, click on the Spanish language tab. The document is available in the POPP library templates (document # POPP-11-2598).

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