Pursuant to United Nations General Assembly Resolution 56/201 on the triennial policy review of operational activities for development of the United Nations system, the Harmonized Approach to Cash Transfers (HACT) framework was first adopted in 2005 by UNDP, UNICEF, UNFPA and WFP (then UNDG ExCom Agencies) for transferring cash to government and non governmental Implementing Partners (IPs).

The HACT Framework is an operational (harmonized) structure for transferring cash to both government and non-government implementing partners and it involves:

1. Capacity assessments (Macro and Micro assessments);

2. Cash transfer through the Funding Authorization and Certificate of Expenditures (FACE) Form;

3. Assurance activities (programmatic visits, spot checks and financial audits); and

4. Capacity building in financial management.

HACT aims at supporting a closer alignment of development aid with national priorities and to strengthen national capacities for management and accountability. In this harmonized modality, the agencies use standardized approach and tools. 

Under the HACT framework, there is a risk that cash transferred to IPs may not be used or reported in accordance with agreements between the Agencies and the IPs. The level of risk can be different for each IP. For each IP, UNDP Tanzania Country Office effectively and efficiently manage this risk by, among others, maintaining adequate awareness of the IPs internal controls for cash transfers through assurance activities including Periodic On-Site Reviews (Spot Checks).