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Harmonized Approach to Cash Transfers (HACT)

10 February 2025

Harmonized Approach to Cash Transfers (HACT)

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.

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Harmonized Approach to Cash Transfers (HACT)

9 July 2024

Harmonized Approach to Cash Transfers (HACT)

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.

Harmonized Approach to Cash Transfers (HACT)

2 June 2023

Harmonized Approach to Cash Transfers (HACT)

The summary of key changes which takes immediate effect and their implication on UNDP Offices are:1. Updates to reflect UNDP's transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system;2. Guidance provided with regards to migration of HACT Platform from SharePoint to the cloud-based Quantum+ (Salesforce) including new system approval for macro assessment, micro assessment, assurance; activities, engagement of High-Risk Partners and revision of Partner Risk Rating which have been added in para 22, para 27, para 40, para 6(d), and para 7 r ...

The summary of key changes which takes immediate effect and their implication on UNDP Offices are:
1. Updates to reflect UNDP's transition to its new cloud-based management platform Quantum in January 2023, replacing its previous ATLAS system;
2. Guidance provided with regards to migration of HACT Platform from SharePoint to the cloud-based Quantum+ (Salesforce) including new system approval for macro assessment, micro assessment, assurance; activities, engagement of High-Risk Partners and revision of Partner Risk Rating which have been added in para 22, para 27, para 40, para 6(d), and para 7 respectively;
3. Change of terminology reflected in para 7 from Adjusted Risk Rating to Partner Risk Rating to refine description of the term and align with process in the HACT platform.

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Harmonized Approach to Cash Transfers (HACT)

28 September 2021

Harmonized Approach to Cash Transfers (HACT)

The updated HACT POPP is now available. The summary of the key changes and their implication on UNDP Offices are:1- Clarity has been added in para 23 (h) for macro assessment where UNDP is the sole agency that requires the assessment;2- Guidance has been added for micro assessment that expires mid-programme cycle where discretion of the Office is required in the case if the project is expected to end in a short period of time. This is indicated in para 27 (n);3- Standardized templates have been made available to document the significant issues and action plan arising from micro assessment ...

The updated HACT POPP is now available. The summary of the key changes and their implication on UNDP Offices are:

1- Clarity has been added in para 23 (h) for macro assessment where UNDP is the sole agency that requires the assessment;

2- Guidance has been added for micro assessment that expires mid-programme cycle where discretion of the Office is required in the case if the project is expected to end in a short period of time. This is indicated in para 27 (n);

3- Standardized templates have been made available to document the significant issues and action plan arising from micro assessment and assurance activities. Regional bureaus are required to review the documentation of the significant issues and action plan arising from micro assessment and assurance activities for Partners with expected cash transfers of greater than or equal to $1 million per annum, and in the case of central bureaus and independent units implementing developing project, the review shall be performed by the Head of Office or his/her designate. This is indicated in para 27 (t) and para 40 (l);

4- Additional guidance have been added for downward revision of Partner adjusted risk rating in para 7;

5- A standardized template has been made available to document the High Risk Partner Approval Template in para 6 (f);

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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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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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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.

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