UNDP risk management measures during grant implementation

Sub-Recipient management: Ensure ongoing management of Sub-Recipients (SRs) as per Sub-Recipient Management section of this Manual, and specifically

• Make sure Capacity Development (CD) plans are in place, addressing key weaknesses identified in the SR Capacity Assessment (CA). To be meaningful, the implementation of the capacity development plan should be completed before the end of the grant, and regularly monitored.
• Ensure financial verification, availability of supporting documents, and alignment with the agreed work plan as precondition for the approval of payments/cash advances.
• Conduct periodic risk-based on-site verifications covering different implementation aspects in the same visit (programme, M&E, health products management, asset management), follow up on the findings/issues/risks raised, and to the extent possible, involve end-users in the monitoring of project results.
• Review procurement conducted by SRs to ensure a competitive process.
• Issue the periodic SR management letters on time and ensure that detailed and customised recommendations are raised to address programmatic and financial challenges.
• Escalate any SR reporting challenges to the Project Board and the relevant government ministry.

Financial management: Ensure financial management as per Financial Management section of this Manual, and specifically:

• Establish a multi-layer verification system, for a front-line review by the PMU and/or a third-party of all the supporting documents justifying expenses and aligning these to the approved work plan and FACE form requirements. A second layer of review performed by the Country Office (CO), before approval of the transactions/payments/advances.
• Mechanism is in place for the SRs to submit all supporting documents, either physically/in person or digitally.
• Review cash payments to individuals ensure these are justified and within the thresholds.
• Ensure Principal Recipient (PR) and SR asset register is up to date and physical verifications conducted as per SOPs.
• Ensure correct and timely disposal of obsolete/non-functional assets.

PSEAH

• If the SR’s Capacity Assessment identified Prevention of Sexual Exploitation, Abuse and Harassment (PSEAH) capacity gaps, embed oversight of SR’s PSEAH measures and implementation of the capacity development plan as part of regular field visits and SR’s oversight process.
• Openly communicate about project level Grievance Redress Mechanisms and channel to report behaviours of sexual nature.
• Inform UNDP Office of Audit and Investigations (OAI) through the hotline.

AML/CFT

• Continuously work with the CO’s Anti-Money Laundering and Countering of the Financing of Terrorism (AML/CFT) focal point to screen new suppliers, NGOs and contractors (counterparties) engaged during project formulation against the AML/CFT database.
• Report any suspicious activity related to money laundering and/or terrorism financing detected during the engagement with an existing counterparty via established mechanisms or via the hotlines.
• Should a counterparty be flagged during the quarterly batch screening done by BMS/Office of Procurement (OP) and UNDP Bureau of External Relations & Advocacy (BERA), the AML/CFT Focal Point will submit a termination request to the RR/Head of Office, who will then decide on escalation and termination actions.

M&E

• Conduct quarterly risk-based integrated site visits (programme, M&E, health products management, asset management).
• Increase the oversight on health centres identified as under-reporting and ensure accurate reporting takes place regularly.
• Conduct period on-site verification, follow up on the findings/issues/risks raised, and to the extent possible, involve end-users in the monitoring of project results.

Health Product management:

• Validate the required quantities of health products on a quarterly basis and validate forecasts against historic data.
• Update the HPAP semi-annually and ensure it is validated by the BPPS Global Fund Partnership and Health Systems Team’s Focal Point HPM focal point.
• Ensure that a quality control plan is prepared and that activities are implemented in a timely manner.
• Submit quarterly progress report on the implementation of the Quality Control Plan (QCP) to the BPPS Global Fund Partnership and Health Systems Team’s Health Product Management (HPM) Focal Point for review.
• Conduct regular reconciliations between quantities distributed and population served. Align monthly stock reports of the central warehouse and the regional warehouse with authorised distribution of health products.
• Analyse stock status reports, at least, quarterly to identify any risks around stock-outs or expiry and take necessary action. Inform the Global Fund of any imminent stock-out/expiry risks. When these risks are identified frequently or when the risk materializes and has a significant impact on the program, undertake a root-cause analysis and implement corrective measures.
• Update the monitoring plan visit quarterly, perform periodic visits to assess warehouse management, monitoring storage conditions and ensuring that temperature and humidity are monitored and recorded,
• Follow up on recommendations made during the field visits through an action plan,
• Ensure SRs undertake periodic stock counts and report on them, justifying the variance.
• Reflect stock-out and expiry risks in the Progress Update and/or Disbursement Request (PU/DR) and inform the Global Fund of imminent stock-out/expiry risks.
• During monitoring missions, verify the existence of procured goods and assets, confirm functioning of medical equipment and implementation of routine maintenance activities, and reconcile received and distributed goods.
• Ensure contract management by timely amending contract target dates to mutually agreed target dates.
• Exercise robust performance management of contractors and escalate cases of poor performance to the Procurement Services Unit and the UNDP Office of Legal Services (OLS) to enforce provisions of the contracts. Ensure timely amendment of contract target dates when warranted.

Security:

• Ensure ongoing monitoring of security situation, existence of contingency plans, and coordination with UNDP security advisor
• Make use of the tools in the UNDP guidelines for mainstreaming security in programmes and projects

Additional guidance to support this area of work are also available through resources listed below:

• UNDP guidelines for mainstreaming security in programmes and projects