UNDP Country Offices (COs) must conduct a capacity assessment of the proposed Sub-recipients (SRs) before signing the SR agreement and transferring any funds. A competitive procurement engagement includes a technical assessment and a capacity assessment. The capacity assessment enables the UNDP CO to conclude whether the SR meets minimum UNDP requirements, and to take capacity development and other risk management steps for the proposed SR, if it determines such steps are needed before signing the SR agreement or during. The outcome of the capacity assessment is also used by UNDP CO to select the appropriate cash transfer modality for the SR. While the Principal Recipient (PR) conducts SR assessments, it may take into consideration other assessments carried out by other institutions – for instance, the Local Fund Agent (LFA), which may be requested by the Global Fund to conduct an assessment in Additional Safeguard Policy (ASP) country. However, under the Grant Agreement, the PR is responsible for the results expected from the SR and is also accountable for disbursed funds and, therefore, for the SR assessment.

Resource

The SR Capacity Assessement Tool (SR CAT) is available here.