4.2 Micro Assessments HACT Focal Point for Non-shared Partners. Coordination for shared Partners by HACT Inter-Agency focal point Section 7.15 to 7.37 Figure 3 4.3 Cash transfers, disbursements and reporting HACT Focal Point/Office staff Section 8 4.4 Assurance planning and implementation, spot checks, programmatic output verification, scheduled audits and special audits HACT Focal Point Section 9 Figures 4, 5, 6, 7 & 8 Macro Assessment: Purpose: The purpose of the macro assessment is to ensure adequate awareness of the public financial management (PFM) environment within which agencies provide cash transfers to Partners, a desk review of assessments of the PFM system is conducted. In the HACT framework PFM is broadly defined to include a range of considerations for operating in the country. It is not limited solely to the financial environment but also includes national procurement capacity, exchange rate volatility, presence of informal/black markets, etc. Process overview (Macro Assessment): The macro assessment process comprises procedures related to (1) solicit third party service provider (2) conduct of the desk review research (3) review of assessment results (4) determine impact and implications of assessment on programme design (5) document decisions and risks identified. See Figure 2 in Section 7 of the document which is reproduced below. The key procedural steps are as described in the responsibility matrix described: Key output: There are two primary outputs of the macro assessment process: An outline of risks related to the use of the PFM for cash transfers to government Partners (in general) within the country, as well as other country-specific knowledge for Partners, such as environmental conditions, exchange rate volatility,
with shared Partners due to its agency-specific nature. Agencies may coordinate monitoring and field visits, especially for joint programmes or areas and for emergency response where several agencies work. See Section 9.23 to Section 9.26 of the UNDG for guidelines for conduct of programmatic monitoring and for UNDP Programmatic output verification guidelines under the . The purpose of conducting periodic on-site reviews (spot checks) is to assess the accuracy of the financial records for cash transfers to the Partner 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. See Section 9.17 to Section 9.22 of the for guidelines for Periodic-On-Site Reviews (spot checks). See for additional UNDP specific guidance related to the conduct of periodic on-site reviews (spot checks) including alternative to the use of third party service providers for spot checks as well as approach for the selection of transactions to be tested involving shared Partners and non-shared Partners; The purpose of a scheduled audit is to determine whether the funds transferred to IPs were used for the appropriate purpose and in accordance with the work plan. See for additional UNDP specific guidance related to the conduct of internal control and financial audits including criteria to be used in deciding which type of audits are required and the triggers which prompt a change in the Partner’s risk rating arising from results of internal control and financial audits. Country Office may refer to Figure 6 of the UNDG which provides a decision tree to illustrate the considerations to be taken by the office upon identification of any issues or concerns as a result of spot checks, programme monitoring and scheduled or special audits; REFERENCES AND TEMPLATES Structure Element - Additional Info & website