Types of Capacity Assessment
Government Entities and Civil Society Organizations
The UNDP Country Office (CO) must conduct a formal capacity assessment of governmental entities and civil society organizations (CSOs) identified as potential Sub-recipients (SRs), in addition to any assessment undertaken by the Global Fund through the Local Fund Agent (LFA). A positive capacity assessment should be part of the documentation submitted for UNDP internal review, prior to signing the SR agreement. A positive capacity assessment is also part of the documentation submitted for the ‘value for money’ (VfM) assessment of CSOs which means that capacity assessment of CSOs should be undertaken prior to development and submission of the VfM assessment in case the CSO is selected through direct programmatic engagement. When the selection process is based on a competitive process, the capacity assessment is embedded in the process and is part of the evaluation process. The documentation on capacity assessment is always included in UNDP’s internal review.
As part of the minimum requirements of Global Fund, all SRs (and Sub-sub-recipients (SSRs)) are required to maintain a dedicated bank account for each grant. Since some government entities may require specific approvals from the Ministry of Finance and/or the Ministry of Foreign Affairs, it is helpful if UNDP informs all potential SRs of this specific requirement at an early stage.
United Nations Agencies
Capacity assessment of UN agencies intended to be SRs (the so-called ‘light capacity assessment’) is not a formal assessment, since it is assumed that UN agencies have the capacity required to act as SRs. It is, instead, an exercise to identify any specific issues that may need consideration, given the agency’s intended role.
Assessments of UN agencies as SRs should focus primarily on an examination of the additional and specific local resources – particularly human resources – that may be required for the SR to carry out its activities and meet its obligations under the SR agreement.