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Harmonized Approach to Cash Transfers (HACT)

1 January 2021

Harmonized Approach to Cash Transfers (HACT)

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 approv ...

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, OFM’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.

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Direct Cash Transfers and Reimbursements

1 December 2020

Harmonized Approach to Cash Transfers (HACT)

The updated Direct Cash Transfers and Reimbursements policy and procedures are now available. The summary of major changes and their implication on UNDP Offices are:Clarification has been made that NEX Advances can only be made to Partners, and not to responsible parties in full NIM projects.Clarity has been added for non-local advances to national implementation projects in paragraph 9, which should be submitted to UNDP HQ Treasury for appropriate approval in accordance with UNDP Financial Regulations and Rule 125.06.r.Added clarification that Partners may open a separate bank account for re ...

The updated Direct Cash Transfers and Reimbursements policy and procedures are now available. The summary of major changes and their implication on UNDP Offices are:Clarification has been made that NEX Advances can only be made to Partners, and not to responsible parties in full NIM projects.Clarity has been added for non-local advances to national implementation projects in paragraph 9, which should be submitted to UNDP HQ Treasury for appropriate approval in accordance with UNDP Financial Regulations and Rule 125.06.r.Added clarification that Partners may open a separate bank account for receiving and managing UNDP advances where deemed necessary.Procedures which offices should take to address unsupported payments reflected in assurance reports, including audits and spot checks, have been added.

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Direct Cash Transfers and Reimbursements

1 December 2020

Harmonized Approach to Cash Transfers (HACT)

The Direct Cash Transfers and Reimbursements policy and procedures have been further updated as follows: Guidance has been added to Para 4 on the ICE template. Guidance has been added to Paras 22 and 23 on fraud red-flags. ICE template guidance has been added to procedure step 5.

Harmonized Approach to Cash Transfers (HACT)

11 February 2020

Harmonized Approach to Cash Transfers (HACT)

The HACT policy has been updated to reflect the following: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.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 th ...

The HACT policy has been updated to reflect the following:

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.

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.

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Direct Cash Transfers and Reimbursements

20 August 2019

Harmonized Approach to Cash Transfers (HACT)

The Direct Cash Transfers and Reimbursements policy is available in French. To access the document, click on the French language tab.

Harmonized Approach to Cash Transfers (HACT)

19 March 2019

Harmonized Approach to Cash Transfers (HACT)

The updated Harmonized Approach to Cash Transfers (HACT) policy is now available in French. To access the document, click on the French language tab.

Harmonized Approach to Cash Transfers (HACT)

19 March 2019

Harmonized Approach to Cash Transfers (HACT)

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.

Harmonized Approach to Cash Transfers (HACT)

4 December 2018

Harmonized Approach to Cash Transfers (HACT)

The Spanish version of the Harmonized Approach to Cash Transfers (HACT) policy is currently under review and will be available again on POPP once finalized. The HACT procedures remain available in Spanish. To access these, click on the Spanish language tab.

Harmonized Approach to Cash Transfers (HACT)

4 December 2018

Harmonized Approach to Cash Transfers (HACT)

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

Direct Payments

16 November 2018

Harmonized Approach to Cash Transfers (HACT)

The Direct Payments policy is available in French. To access the document, click on the French language tab. Kindly note that any differences in the English and French texts will be interpreted in accordance with the English version.

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