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The Harmonized Approach to Cash Transfers (HACT) policy has been updated to harmonize the Terms of Reference (TORs) for HACT Assurance Activities (audits and spot checks) with the HACT agencies also in alignment with the related Long-Term Agreements for Services (LTAS) for HACT services. As a result, Internal Control Audits for partners with “Low” or “Moderate” risk ratings will cease to be an option and only Financial Audits (in accordance with the International Standard on Auditing (ISA) 800 and ISA 805 (Revised)) are to be conducted for all partners. The scope of the revised TOR for financi ...

The Harmonized Approach to Cash Transfers (HACT) policy has been updated to harmonize the Terms of Reference (TORs) for HACT Assurance Activities (audits and spot checks) with the HACT agencies also in alignment with the related Long-Term Agreements for Services (LTAS) for HACT services. As a result, Internal Control Audits for partners with “Low” or “Moderate” risk ratings will cease to be an option and only Financial Audits (in accordance with the International Standard on Auditing (ISA) 800 and ISA 805 (Revised)) are to be conducted for all partners. The scope of the revised TOR for financial audits includes a review of the partner's internal controls. The TOR for spot checks has been revised to incorporate the changes in the accounting standards and is in line with the International Standard on Related Services (ISRS) 4400 (Revised).

The HACT Tables, the HACT Annexes A-D and the Assurance activities planning and implementation procedure have also been updated to reflect these changes.

The Direct Payments policy has been updated in paragraphs 2, 4 and 6 to clarify the funding requirements for the full costs of processing direct payments and providing support services.

The following clarification and editorial updates have been implemented:

The following clarification and editorial updates have been implemented:

The following clarification and editorial updates have been implemented:

  • HACT policy: A clarification sentence has been added at the end of para. 40 (g) regarding postponement of assurance activities due to reasons beyond the control of the partner and the office.
  • HACT Tables: All text references of ‘medium’ risk have been adjusted to ‘moderate’ risk in line with the HACT policy. 
  • Annexes A-D: All text references of ‘adjusted risk rating’ have been amended to ‘partner risk rating’ in line with the HACT policy.

The policy and the procedures have been updated to reflect the following changes:Revision to approval requirements for direct payments in non-local currency has been added in paragraph 9 of the policy, where non-local currency payments to international suppliers engaged in line with the Letter of Agreement (LOA), the Responsible Party Agreement (RPA), the Performance Based Payment Agreement (PBPA), or similar contracts or agreements, as well as the project document or the annual work plan will be approved by Head of Office provided the contractual documents specify disbursements in non-lo ...

The policy and the procedures have been updated to reflect the following changes:

  • Revision to approval requirements for direct payments in non-local currency has been added in paragraph 9 of the policy, where non-local currency payments to international suppliers engaged in line with the Letter of Agreement (LOA), the Responsible Party Agreement (RPA), the Performance Based Payment Agreement (PBPA), or similar contracts or agreements, as well as the project document or the annual work plan will be approved by Head of Office provided the contractual documents specify disbursements in non-local currency.
  • Seeking UNDP HQ Treasury’s approval before non-local currency disbursement are made has been removed in paragraph 9 of the policy in line with the new changes to paragraph 9.
  • The explanatory notes in step 7 of the procedure have been updated to reflect the changes in the policy.

The policy and the procedures have been updated to reflect the following changes:Revision to approval requirements for non-local currency advances has been added in paragraph 9 of the policy, where payments for specifically identified activities and expenditures expected to be incurred in non-local currency in line with the Letter of Agreement (LOA), the Responsible Party Agreement (RPA), the Performance Based Payment Agreement (PBPA), or similar contracts or agreements, as well as the project document or the annual work plan will be approved by the Head of Office, provided the contractua ...

The policy and the procedures have been updated to reflect the following changes:

  • Revision to approval requirements for non-local currency advances has been added in paragraph 9 of the policy, where payments for specifically identified activities and expenditures expected to be incurred in non-local currency in line with the Letter of Agreement (LOA), the Responsible Party Agreement (RPA), the Performance Based Payment Agreement (PBPA), or similar contracts or agreements, as well as the project document or the annual work plan will be approved by the Head of Office, provided the contractual documents specify disbursement in non-local currency. Other non-local currency payments shall only be made, after seeking UNDP HQ Treasury approval.
  • Revision to paragraph 13 of the policy to include the requirement for UNDP HQ Treasury’s approval where the Partner maintains separate bank accounts for the project. If the project needs advances to make payments in local currency and non-local currency with applicable approval in line with the POPP, then two bank accounts matching the approved currencies of advances should be opened.
  • The explanatory notes in steps 8 and 9 of the procedure have been updated to reflect the changes in the policy.

The changes made are to provide additional clarification on HACT transaction processing in Quantum and references to available reports relevant for management of HACT balances.

The changes made are to provide additional clarification on HACT transaction processing in Quantum and references to available reports relevant for management of HACT balances.

The policy and the procedures have been updated to reflect UNDP’s transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system.