The UN Capital Development Fund subscribes to the UNDP Accountability Framework & Oversight Policy and complies with the UNDP Programme and Operations Policies and Procedures, which provides a framework for results and risk-based performance management, with particular emphasis on the values and culture of accountability and transparency.

The policy encompasses mechanisms for independent internal and external oversight of UNCDF, designed to provide assurances to the Executive Board that functional systems of internal controls are in place, that policy frameworks are appropriate, that resources are utilized effectively, and that professional and ethical standards are upheld.

Additional mechanisms to ensure transparency and accountability include UNCDF's Information Disclosure Policy , and its adherence to UNDP's Anti-Fraud Policy, including efforts to facilitate reporting via UNDP's Anti-Fraud Hotline .

Along with the rest of the UN system, in 2012 UNCDF began to report its finances according to the International Public Sector Accounting Standards, further increasing its transparency and accountability.

UNDP Anti-Fraud Policy

Jointly prepared by the Bureau for Management Services, the Office of Audit and Investigations and the Ethics Office at UNDP, this updated UNDP Anti-Fraud Policy (which supersedes the previous policy statement codified since 2005), reaffirms that UNCDF adopts a zero tolerance policy against frauds and other corrupt practices that are inconsistent with the UN Standard of Conduct or involve a loss to UNCDF funds.

This Anti-Fraud Policy applies to all activities and operations of UNCDF. It covers any project funded by UNCDF, any project implemented by UNCDF, and any implementing partner. It covers fraud or allegations of frauds involving UNCDF staff members and its personnel, including but not limited to consultants, service contract holders (SCs), individual contractors (ICs) , interns, and United Nations volunteers (UNVs) as well as frauds perpetrated against UNCDF by contractors, suppliers of goods and services, implementing partners, or other third parties.