UN trains staff on the revised Harmonised Approach to Cash Transfer (HACT) frameworkJul 21, 2014
The United Nations organized a Harmonised Approach to Cash Transfer (HACT) training on the revised framework. The training took place at the Bingu International Conference Centre, in Lilongwe. The meeting brought together almost 80 staff members from all the UN agencies in Malawi. The objective of the training was to provide an overview of HACT to the group, explaining in depth what exactly HACT is and what it aims to achieve.
In her opening remarks, the HACT Co-Chair- Ms. Pamela Aoko Oganga welcomed UN colleagues and highlighted the importance of HACT in the sense that it is a standard financing and reporting approach adopted by all UN agencies for its implementing partners and the responsibility that agencies have in effectively implementing HACT for greater harmonization of audits and risk management.
Mr. Richard Bailey, the Head of the UN RC Office, who spoke on behalf of the UN Resident Coordinator, Ms. Mia Seppo stated that HACT has been one of the successes of Delivering as One (DaO), emphasising that HACT is not an option, and instead has been accepted by the agencies as an approach for harmonisation of cash transfers to implementing parthers, mirroring the rest of the DaO work. He underlined that at agency level, agencies need to adapt to the approach to its full capacity to ensure Implementing Partners (IPs) are assessed consistently at all levels.
In his presentation, HACT Co-Chair, Dr. Ernest Misomali provided an overview of HACT to the group, explaining in depth what exactly HACT is and what it aims to achieve.
“HACT- Harmonised Approach to Cash Transfers is a common framework for agencies to follow for the assurance of cash transfers to IPs. This framework represents a shift from assurance for cash transfers derived from project level controls and audits to assurance derived from risk/system based assessments and audits” explained Dr. Misomali.
HACT Coordinator, Mr. Munday Makoko introduced the group to the revised framework and explained the need for a new framework, proving a brief history on HACT and its establishment and the progress made since its implementation.
“Some of the reasons why there is a need for a revised framework are to improve effectiveness of the framework, better streamline agency audit framework into HACT framework and support for consistent implementation of the framework. HACT assesses all risks and systems with IPs, instead of just looking at the strand of UN funding that goes to IPs at project level, moving from assurance of project based audit controls of cash transfers to assurance derived from risk/system based assessments of audits. An agency cannot just assess UN strand of funding as once it hits the IPs account, it will get tied in with general funding and at risk of being used inefficiently,” said Mr. Makoko
Mr. Makoko highlighted key changes from the 2005 framework to the revised 2014 framework. The 2014 framework has built on the 2005 framework, expanding on some elements for greater clarification and refining on other elements, guided by lessons learnt since the HACT framework establishment in 2005.