HACT is a framework adopted in 2005 for UN agencies like UNDP, UNFPA, UNICEF and WFP to manage cash transfers to implementing partners. It aims to lower transaction costs, improve partners' management capacities, and minimize risks. Key aspects of HACT include assessing partners' financial management risks and adjusting assurance activities accordingly, relying more on partners' own systems, and standardizing reporting across agencies. UN agencies use a risk management approach, with more oversight for new or higher risk partners. HACT is intended to strengthen national ownership while helping build partners' financial management abilities.