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​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 experi ...

​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.

The revised HACT prescriptive content operationalizes the inter agency agreed HACT framework (2014) in UNDP. It clarifies relevant processes/procedures in UNDP as well as provides additional clarifications of UNDP-specific requirements for the purpose of implementing the UNDG-approved revised HACT framework in UNDP. This prescriptive content shall be read in conjunction with the revised HACT framework (including all appendices) issued by UNDG as well as the UNDP NIM/NEX Manual issued in July 2011.​