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Harmonized Approach to Cash Transfers to Implementing Partners UNDG ExCom.

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Presentation on theme: "Harmonized Approach to Cash Transfers to Implementing Partners UNDG ExCom."— Presentation transcript:

1 Harmonized Approach to Cash Transfers to Implementing Partners UNDG ExCom

2 Objectives of the new approach: Simplify procedures Reduce transaction costs Promote reliance on national systems Focus more on capacity development Increase overall effectiveness of UN operations in the field

3 Risk Management vs. System of Controls Assessment of financial management systems and capacities Choice of an appropriate cash transfer modality and procedures; Assurance activities

4 Determination of risks Macro assessment: a review of existing assessments of the national public financial management system; once per cycle, preferably during the CCA preparation

5 Determination of risks (cont.) Micro assessment: assessment of the adequacy of the implementing partners financial management systems and internal controls; once per programming cycle; threshold: US$ 100,000 collectively from UN Agencies

6 Assessments: Objectives Development Govt to identify strengths & weaknesses in the Public Finance Mgmt system and practices Identify/coordinate areas for capacity building Management Assist in the identification of appropriate cash transfer procedures

7 Assessments: Basic Principles Not meant to impose conditionality No formal rating Contribute to capacity development Government should be part of the process

8 Assessments: Basic Principles (cont.) Existing assessments to be used; If macro assessment not available, UN encourages Government to initiate one; UNCT jointly interprets available info with experts assistance

9 Assurance Activities: Assurance Activities depends on the risk and amount of cash transfers Invest more in Assurance Activities for weaker partners

10 Assurance Activities include: Periodic on-site reviews: spot-checks and special audits; Programmatic monitoring of activities and results; Scheduled Audits

11 Funding Authorization and Certificate of Expenditure Form (FACE) New tool for all ex-com agencies Used to Certify expenditures Disburse funds for the next period; Reprogramming undisbursed funds No need for back-up documentation (invoices, contracts and vouchers)

12 Roll-out: who, when, how? Mandatory for all programme countries; Effective date is linked to the beginning of the harmonized cycle; Major roll-out event: regional/sub-regional workshops for 1 operations and 1 programme staff per roll-out country

13 Roll-out (cont.) Workshops in 2005 for 2004, 2005 and 2005 roll-out countries Follow-up country events by the staff trained at the regional workshops Support system: agency-specific Learning materials:

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