grant implementation stop tb workshop december 2005
DESCRIPTION
Grant implementation STOP TB workshop December 2005. OUTLINE. 1- The grant cycle revisited 2- Progress reporting and disbursement requests 3- Budget revision 4- Annual reports 5- Annual audit. I. Proposals Management . Call for Proposals. 1.3 Screening. 1.4 TRP Review. 1.5 - PowerPoint PPT PresentationTRANSCRIPT
Grant implementation
STOP TB workshopDecember 2005
OUTLINE
1- The grant cycle revisited
2- Progress reporting and disbursement requests
3- Budget revision
4- Annual reports
5- Annual audit
Grant process key dates
Proposals Submitted
1.3 Screening
Eligible Proposals Selected
1.4 TRP
Review
TRP Recommend
ations
TRP Chair/Vice Chair Sign-off (Final Board
Approval)
1.5 Board
Approval
1.6 TRP Clarification
(as required)
Call for Proposals
1.1 Future Round Planning
1.2 Guidelines for Proposal
Refinement & Call for
Proposals
Board Approval
I. Proposals Management
Board Approval
Grant Start
Grant Renewal (2 years)
Grant End (up to 5 years)
The Global Fund grant process
Grant Signing
2.1 CCM Confirmation
of PR Nomination
PR Nomination Confirmed Grant Signing &
First Disbursement
2.2 LFA Selection and Contracting
II. Grant Negotiation and First Disbursement
Grant Negotiations
2.4 Review of Budgets, Workplan, and Indicators
2.5 Negotiation (including conditions
precedent)
2.6 First Disbursement Preparation
LFA Contracted
2.3 PR Assessments
18 months since first disbursement
3.3 Phase 2 Grant Renewal
Process
Updated Grant
Agreement
3.5 LFA Management
Phase 2 Go/No Go Decision
3.4 Grant Extension
3.6 Grant Support
Performance-based Funding
3.1 Ongoing Reviews &
Disbursements
3.2 Grant Revisions
III. Performance-Based Funding and Grant Support
Performance-based Funding
3.1 Ongoing Reviews &
Disbursements
3.2 Grant Revisions
End of Phase 2 Support
ARCH/300704/3
Reporting – Background
PR will submit a DR/PU normally on a quarterly or semi-annual basis
The frequency is agreed during initial grant negotiations and can change during implementation
The frequency is influenced by:– Country characteristics– Grant characteristics– Partner involvement and grant harmonization
Funding is provided in advance for the next reporting period plus a buffer of 1 quarter
Disbursement Request and Progress Update (DR/PU)
Grant start date
S1
1 year45 days45 days 45 days
1st DR/PU: funds
needed for Q1 - 3
S2 S3
Grant end date
S4
2nd DR/PU: funds
needed for Q3 - 5
3rd DR/PU: funds
needed for Q5 - 7
4th DR/PU: funds
needed for Q7 - 8
DR/PU Request Summary: periods covered
Reporting - semi-annual basis
Reporting – Program Expenditures
Section 2: Programmatic and Financial Progress Update
Country:Disease:Grant number:Principal Recipient:Disbursement period beginning date:Disbursement period end date:Disbursement Request number:Currency: USD
B: PROGRAM EXPENDITURESBudget Actual
11.a. PR's total expenditures
1.b. Disbursements to sub-recipients (by sub-recipient)
Other program results, issues and lessons learned:
Planned changes in program, includingresolutions to mitigate issues, if any*:
Changes in budget forecasts,including for next disbursement period*:
* If appropriate, please provide an updated template for Intended Program Results and Budget
Total actual expenditures vs. budget
Reason for variance
Reporting – Cash Reconciliation
Section 3: Cash Reconciliation and Requirement
Country:Disease:Grant number:Principal Recipient:Disbursement period beginning date:Disbursement period end date:Disbursement Request number:Currency:
A: CASH RECONCILIATION
1. Cash Balance: Beginning of disbursement period (line 5 from previous disbursement period Cash Reconciliation):
2. Add: Sources of Cash during the disbursement period (from PR's Statement of Sources and Uses of Funds (Cash Flow Statement))
2.a. Interest received on bank account, user fees and other income received*:
2.b.Cash received from the Global Fund (last disbursement):
2.c.Total sources of cash (line 2.a. plus line 2.b.):
3. Total cash available for disbursement period (line 1 plus line 2.c.):
Less: Uses of Cash during the disbursement period (from PR's Statement of Sources and Uses of Funds)
4. Total program expenditures during disbursement period (same as Section 2. B. 1. "Actual"):
5. Cash Balance: End of disbursement period (line 3 minus line 4):
B: CASH REQUIREMENT
6. Total forecasted net cash expenditures by the Principal Recipient for next disbursement period plus one additional quarter**:
7. Next disbursement period beginning date: end date:
8. Subsequent quarter beginning date: end date:
Less: Cash Balance: End of disbursement period (line 5)
9. Cash requirement from the Global Fund for next disbursement period plus one additional quarter:
USD
Reporting – Example
Program start date: 1 January 2005
Year 1 budget: Q1:$210k; Q2:$450k; Q3:$290k; Q4:$600k
Frequency of reporting: semi annual
1st Disbursement (9 months): US$950k
Cash balance on 30 June 2005: US$400k consisting of:
– US$ 50k savings
– US$10k interest earned
– US$50k delayed activities
– US$290k buffer
Revised budget for period 1 July to 31 December 2005 is US$700k; and for period 1 January 2006 to 31 March 2006 is US$250k
What is PR’s next disbursement?
Budget Revision – Change in Scope
A change in scope arises when PR wants to:
– Add a goal, objective or service delivery area;
– Drop a goal, objective or service delivery area;
– Alter the balance between two or more goals, objectives or service delivery areas
Where a change in scope occurs special procedures apply
Budget Revision – Change in Scope
Recommendation
•CCM must approve change
•LFA reviews and makes recommendation
•GF will make decision (may consult TRP)
CCMJustify change
PRNew
workplan, targets &
budget
LFA Review FPM GF
Process
Special procedures for a change in scope
Budget Revision – Practical Considerations
Changes in: Assess impact on: Review/recommendation by:
• Demand for services;
• Treatment regimen;
• Input prices;
• Input mix and usage rates;
• Taxation;
• Currency exchange rates;
• Inflation rates; etc
• Goals
• Objectives
• Service Delivery Areas
• Activities
• Tasks
Practical Budgetary Considerations
Notes: Currency fluctuation can be a reason for Phase 2 acceleration Document decisions LFA review during periodic verification of implementation
GF,LFA,CCM, PR
PR
Budget Revision – Example
TB drug cost savings of US$150k due to:
– A reduction in unit price by 25%;
PR intends to spend US$150k savings on training of microscopists
Is this a change in scope or not?
How should this change be dealt with?
Budget Revision – Example 2
Cost of identification of infectious cases has increased by US$94k due to:
– 50% appreciation of local currency against US$;
– the fact that all cost in the SDA are local currency denominated;
PR intends to pay for this by reducing budget for training. This implies that 35% less people will be trained.
Is this a change in scope or not?
How should this change be dealt with?
Annual reports
Annual reports are required as part of programmatic progress reports (Art 15 b.ii of grant agreement)
Contain aggregated information on grant progress
Audits: GF Requirements
SWAps – single audit acceptable but GF funded expenditures should be clearly identifiable
UNDP as PR –
• Annual financial statements certified by comptroller
• Biennial financial statements externally audited
UNDP as PR in additional safeguards country – general rule applies
GF funding forms a substantial proportion of PR’s source of funding – PR audit acceptable
General rule: need for annual audit of program financial statements
Program financial statement sources and uses of funds statement
Note following special situations:
Audits - When due
General rule: coincides with the PR’s fiscal year and not anniversary of the grant start date. Audit report due within six months of end of fiscal year. Note:
M6 M12 M18 M24
PR’s Fiscal Year 1
When program starts before M6, audit is due
by M18
When program starts after M6, audit is due
after M18
audited accounts may not be available at the time of Phase 2 renewal
review
Audits: Responsibilities
Responsibilities of PR, LFA and FPMs
PR
• Engages the services of the auditor
• Develops audit plan for SR
• Facilitates performance of audit
• Submits audit reports • Responds to and
implements recommendations
1LFA
• Reviews acceptability of auditor, ToR and SR’s audit plan
• Reviews audit reports and advises GF
• Reviews PR’s implementation of audit recommendations
2 FPM3
• Decides on the acceptability of the auditor, ToR and SR audit plan
• Decides on appropriate remedial actions in response to audit findings and recommendation