Outcome of the SR Capacity Assessment

The UNDP Country Office (CO) needs to take different steps, depending on the outcome of the capacity assessment:

  • Positive assessment without reservations or significant assessed risks: UNDP CO can proceed with the preparation of the Sub-recipient (SR) agreement documentations and contact the Legal Office (LO) if there are any deviations from the appropriate model SR agreement. Please refer to figure 2 here for next steps.
  • Positive assessment (with reservations): UNDP CO determines that the SR does not possess all the required capacity to carry out the activities envisioned under the programme. UNDP and the SR need to address the identified capacity issues prior to signing the SR agreement – for example, through a Condition Precedent/Special Condition or a capacity development plan, as part of the agreement, or through specific disbursement modalities (direct payment modality), as risk mitigation measures. The UNDP CO can also consult with the Global Fund/Health Implementation Support Team about how to address the situation most appropriately.
  • Negative assessment and UNDP determines that capacity cannot be developed, even with appropriate measures: UNDP should reject the entity as an SR and initiate a new selection process.