The UN-UN Transfer Agreement was designed to address some identified legal and financial bottlenecks in countries when transferring funds between UN agencies. The UNDG approved the Transfer Agreement and accompanying guidance for use when one UN agency transfers resources to another UN agency for the purpose of programmatic activities in the framework of one programme or project. In such arrangements, the “contributing agency” is accountable to the donor(s) and the “recipient agency” is accountable to the “contributing agency” for use of the funds.
The content of the agreement has been kept simple to reduce transaction costs and improve efficiency. The agreement also has flexibility where needed and includes some options, when different options are available. Agencies are, however, strongly discouraged from agreeing to variations in this standard transfer agreement.