Partner Risk Rating is defined as the overall Risk Assessment derived from the Micro Assessment risk rating adjusted for other available information including results of the Macro Assessment, past experience with the Partner including results of assurance activities, prior capacity assessments and micro assessments by other Agencies.
UNDP Financial Regulations and Rules document defines 'property, plant and equipment' as tangible assets held for use in the activities of UNDP or for administrative purposes and expected to be used during more than one financial period. The Property, Plant and Equipment (PP&E) policy document provides further details of the term 'property, plant and equipment' as a tangible or physically verifiable item that meets ALL the following five criteria: a) Provides future economic or service benefits to UNDP – i.e. the PP&E item is held for use in the implementation of UNDP Programmes or for administrative purposes; b) Is expected to be used during more than one reporting period, which, is 12 months; c) Has a value of US$5,000 (US$5,000 for UNCDF too) or more (New Capitalization Threshold effective as of 01.01.2020); d) Is used and controlled by UNDP; and e) Has a cost that can be reliably determined.
Scheduled audit: These refer to systematic and independent examination of data, statements, records, operations and performances of a partner. A scheduled audit is either an internal control audit which is conducted for Partners which are rated “Low” risk and “Medium” risk or a financial audit which should be conducted for all other Partners including non-assessed Partners.
Periodic on-site reviews (spot checks) are performed to assess the accuracy of the financial records for cash transfers to the IP and the status of programme implementation (through a review of financial information), and to determine whether there have been any significant changes to internal controls. The spot check is not an audit hence, the extent of expenditure testing is generally lower than what would be undertaken during an audit. Spot checks should be completed prior to the operational and financial closure of the project to ensure supporting documents are still available for review and any adjustments required in Quantum are made.