SRs are audited based on the criteria detailed in the Office of Audit and Investigations (OAI) Call Letter for Harmonized Approach to Cash Transfers (HACT) Audit Plans, which is issued annually. The SR audit approach for Global Fund projects includes financial audit as well as audit of SR internal control and systems. While SR audits are coordinated centrally by the UNDP Global Fund Partnership and Health Systems Team, COs are advised to designate a focal point to ensure a timely and successful process.

Country Offices (COs) are advised to use the historical rates for their audits of UNDP SRs in Global Fund-financed projects to estimate the Sub-recipient (SR) audit costs and should budget for them annually. If there is no record of the HACT financial audit costs, COs may calculate the estimated SR audit cost at 3% of the SR budget.