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Functional Areas
- Audit and Investigations
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Capacity development and transition, strengthening systems for health
- A Strategic Approach to Capacity Development
- Capacity Development and Transition - Lessons Learned
- Capacity development and Transition Planning Process
- Capacity Development and Transition
- Capacity Development Objectives and Transition Milestones
- Capacity Development Results - Evidence From Country Experiences
- Functional Capacities
- Interim Principal Recipient of Global Fund Grants
- Legal and Policy Enabling Environment
- Overview
- Resilience and Sustainability
- Transition
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Financial Management
- CCM Funding
- Grant Closure
- Grant Implementation
- Grant-Making and Signing
- Grant Reporting
- Overview
- Sub-recipient Management
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Grant closure
- Overview
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Steps of Grant Closure Process
- 1. Global Fund Notification Letter 'Guidance on Grant Closure'
- 2. Preparation and Submission of Grant Close-Out Plan and Budget
- 3. Global Fund Approval of Grant Close-Out Plan
- 4. Implementation of Close-Out Plan and Completion of Final Global Fund Requirements (Grant Closure Period)
- 5. Operational Closure of Project
- 6. Financial Closure of Project
- 7. Documentation of Grant Closure with Global Fund Grant Closure Letter
- Terminology and Scenarios for Grant Closure Process
- Human resources
- Human rights, key populations and gender
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Legal Framework
- Agreements with Sub-sub-recipients
- Amending Legal Agreements
- Implementation Letters and Management Letters
- Language of the Grant Agreement and other Legal Instruments
- Legal Framework for Other UNDP Support Roles
- Other Legal and Implementation Considerations
- Overview
- Project Document
- Signing Legal Agreements and Requests for Disbursement
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The Grant Agreement
- Grant Confirmation: Conditions Precedent (CP)
- Grant Confirmation: Conditions
- Grant Confirmation: Face Sheet
- Grant Confirmation: Limited Liability Clause
- Grant Confirmation: Schedule 1, Integrated Grant Description
- Grant Confirmation: Schedule 1, Performance Framework
- Grant Confirmation: Schedule 1, Summary Budget
- Grant Confirmation: Special Conditions (SCs)
- Grant Confirmation
- UNDP-Global Fund Grant Regulations
- Monitoring and Evaluation
- Principal Recipient Start-Up
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Procurement and Supply Management
- Development of List of Health Products and Procurement Action Plan
- Distribution and Inventory Management
- Overview
- Price and Quality Reporting (PQR) System
- Procurement of Non-health Products and Services
- Procurement of Pharmaceutical and Other Health Products
- Quality Control
- Rational use of Medicines and Pharmacovigilance Systems
- Strengthening of PSM Services and Risk Mitigation
- UNDP Health PSM Roster
- UNDP Quality Assurance Policy and Plan
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Reporting
- Communicating Results
- Grant Performance Report
- Overview
- Performance-based Funding and Disbursement Decision
- PR and Coordinating Mechanism (CM) Communication and Governance
- Reporting to the Global Fund
- UNDP Corporate Reporting
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Risk Management
- Common Risks Identified in Global Fund Programmes
- Global Fund Risk Management
- Introduction to Risk Management
- Overview
- Risk Management in High Risk Environments
- Risk Management in UNDP-managed Global Fund Grants
- Risk management in UNDP
- UNDP Risk Management in the Global Fund Portfolio
- Sub-Recipient Management
Sub-recipient Audit Criteria
The UNDP Office of Audit and Investigations (OAI) applies a risk-based methodology for audits of Sub-recipients (SRs), using the basic premise of the risk-based approach to Harmonized Approach to Cash Transfers (HACT) financial audits. The lower the risk category for HACT financial audits that is assigned by OAI to a Country Office (CO), the higher the audit threshold above which the project is required to be audited. For example, if for a given year the threshold for a country in the high-risk category is US$300,000, then any SR with eligible expenditure totalling US$300,000 or more in that year has to be audited.
In addition to the risk-based selection approach, SRs that meet one or more of the following criteria should be selected for audit: 1) ‘once in a lifetime’ (OIL) audit; 2) SRs with a modified opinion in the prior year’s audits; 3) SRs identified as high risk by the CO. The considerations for high risk might be but not limited to the following: misreporting or delays with submission of reports, significant balances of inventories, loss of assets, turnover of key staff, new SRs in cases where UNDP recently transitioned to the PR role etc.
On an annual basis, OAI can amend the audit criteria and timelines for the HACT financial audits, therefore COs should carefully review the UNDP OAI Call Letter for HACT Audit Plans and not rely on the previous year’s Call.
Practice PointerThe once in a lifetime (OIL) audit criterion detailed in the annual UNDP OAI Call Letter for HACT Audit Plans applies to cumulative SR expenditure per project, not per country. SRs must be audited at least once in their respective project’s life cycle, in the year in which the SR’s cumulative expenses (since project start date) reaches the amount detailed in the OAI Call Letter.
The information below helps illustrate the concept:
Country Risk Rating: Medium (threshold: US$450,000)
Project Number: 0000xxxx
Project start date: 1 January 2021
Project end date: 31 December 2023
| Sub Recipient | FY2021 Expenses | Included in FY2021 audit plan | FY2022 Expenses | Included in FY2022 audit plan | FY2023 Expenses | Included in FY2023 audit plan |
| 1* | US$50,000 | No | US$50,500 | No | US$40,000 | No |
| 2** | US$40,000 | No | US$270,000 | Yes (OIL, $310,000 should be audited) | US$310,000 | No |
| 3*** | US$130,000 | No | US$140,000 | No ( $below OIL threshold ) | US$460,000 | Yes (annual threshold, US$460,000 should be audited) |
* Cumulative expenses did not reach US$300,000 during 2021-2023. Therefore, the SR should not be audited under OIL principle. Annual expenditures for 2021, 2022 or 2023 did not reach US$450,000. Therefore, the SR should not be audited under annual threshold principle because threshold of US$450,000 is not met.
** Cumulative expenses from FY2021 to FY2022 reached US$310,000 which is over $300,000. Therefore, the SR should be included in the audit plan for 2022 based on OIL principle. For this audit, cumulative expenditures for 2021-2022 in the amount US$310,000 should be audited. In 2023, the annual threshold of US$450,000 is not met. Therefore, the SR should not be audited in 2023.
*** Expenditures for 2023 (US$460,000) exceed annual threshold of US$450,000. Therefore, the SR should be selected for audit for 2023. Even though the cumulative expenditures for 2021-2023 exceed US$300,000 (threshold for OIL principle), only expenditures for 2023 in the amount of US$460,000 should be audited since the basis for audit in this case – annual threshold.
UN entities acting as UNDP SRs are audited under their own audit arrangement, in accordance with the ‘single audit’ principle, and are not covered by UNDP’s audit regime.
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