Open Society Institute, Public Health Program

Proposal Development and Advocacy Seminarfor Eastern and Southern Africa

Cape Town, South Africa18 February 2008

From Proposal to Grant Funding

Principal and Sub-Recipient Capacity (LFA) Assessment

Grant Performance

CCM Oversight

Contents

The technical Proposal is an expression of intent of what the country program plans to do with the requested additional funding from the Global Fund for up to 5 years (“gap funding”).

The independent Technical Review Panel recommends to the Global Fund Board the proposal components that are technically sound, also considering the past performance record with the Global Fund existing grants.

The Global Fund Board approves the proposals based on available funding.

How does proposal become grant?

BG/290607/1

From intent to implementation…

PROPOSAL IS APPROVED FOR FUNDING:

The CCM formally nominates the Principal Recipient (PR) The Local Fund Agent (LFA) (re-)assesses the PR capacity to

implement the grant The Fund Portfolio Manager - with the GF technical support

team - negotiates the Grant Agreement with the PR (6 months > 1 year).

The CCM and Civil Society representative endorses new Grant AgreementWhen the Grant Agreement is signed by both parties, it is posted on public GF website. Anyone can have a copy from there.Grant Agreement terms and conditions change overtime. An amendment to the original document is called Implementation letter.

• Relies on local stake-holders at the country level to implement programs and manage grant proceeds

• Promote rapid release of funds to assist target populations

• Monitor and evaluate program effectiveness and make funding decisions based on (1) program performance and (2) financial accountability

• As far as possible promote the use of existing standards and processes in grant recipient countries.

Global Fund Fiduciary Principles

As a minimum, the Global Fund requires PRs to have:

(a) Financial Management and Systems that:

– Can correctly record all transactions and balances, including those supported by the Global Fund;

– Can disburse funds to sub-recipients and suppliers in a timely, transparent and accountable manner;

– Maintains an adequate internal control system– Can support the preparation of regular reliable

financial statements;– Can safeguard the PR’s assets; and – Are subject to acceptable auditing arrangements.

As a minimum, the Global Fund requires PRs to have:

(b) Program Management Capacity and arrangements that include: – Legal status and authority to enter into the grant

agreement with the Global Fund;– Effective organizational leadership, management,

transparent decision making and accountability systems;

– Adequate infrastructure and information systems to support proposal implementation, including the monitoring of performance of sub-recipients and outsourced entities in a timely and accountable manner; and

– Adequate health expertise (HIV/AIDS, tuberculosis and/or malaria) and cross-functional expertise (finance, procurement, legal, M&E).

More on PR minimum requirements…

(c) Sub-recipient Management capacity, including:• Effective systems for undertaking sub-recipient

capacity assessments, and providing technical support as needed, to ensure that any proposed sub-recipients have the required capacities to implement the program activities; and

• Adequate management arrangements that ensure the PR oversight of grant implementation at the sub-recipient level for effective and timely program implementation and resource management by sub-recipients.

PR minimum capacity cont/d…

(d) Pharmaceutical and Health Product Management Systems that can:Procure, store and distribute health products in accordance with Global Fund procurement and supply management policies.

(e) Monitoring and Evaluation Systems that can: – Collect and record programmatic data with

appropriate quality control measures;– Support the preparation of regular reliable

programmatic reports; and– Make data available for the purpose of evaluations

and other studies.

Performance Based Funding (PBF)

DESIGNED TO:• Provide incentives to encourage grant recipients to concentrate

on results rather than on inputs;• Serve as a management tool for PR;• Furnish the GF with necessary performance information to decide

on future disbursements of funds;• Provide performance information to the CCMs for its oversight

and monitoring purposes; and• Communicate periodic progress updates to the Global Fund

Board and wider constituency.

PBF ARRANGEMENTS:- flexible rather than prescriptive- responsive to local conditions- aligned with donor harmonization efforts and best practices.

Performance-Based Funding

Programmatic Monitoring

Financial Monitoring

Performance-Based

Funding

PBF links ongoing disbursements to the achievement of programmatic results and expenditures

GP/290607/11

PBF - Importance of M&E

We adhere to Performance Based Funding model

Some key intended outcomes

Long term Ensure investments are made where impact on the diseases can be achieved

Strategy level Provide incentives to focus on results and timely implementation

Implementation level Help countries identify: Effective efforts for early replication & scale-up; or Take early corrective actions

Implementing the Grant Performance System

Grant AgreementGrant Proposal

Form

CCM Request

for continued

funding

AnnualReview

Grant Start

3 Mth

6 Mth 12 Mth 16 Mth 18 Mth

9 Mth 15 Mth

2 Year Phase 1 end

Perf. Matrix 1 or 1+2

Annex A

Disbursement Request/ Progress Update

Grant lifecycle

Performance tools

Perf. Matrix 2

10mth 24mth

Grant Performance Report

Grant Scorecard

Perf. Matrix 3

Performance data in real time

Performance Indicators to Measure Coverage

The ultimate goal of the Global Fund is to have impact on AIDS, tuberculosis and malaria by scaling up proven prevention, treatment and care interventions.

Coverage is measured by assessing the number of:

– people reached with services and goods– service delivery points– people trained to deliver services

GP/290607/1

CCM Oversight Role

Grant Implementation

Grant Negotiation

Proposal Development

CCM - Implementation Oversight

Oversight is a key function of governance:• Ensuring that the resources – financial and human –

are being used efficiently and effectively for the benefit of the country.

• Ensuring that the activities are implemented as planned by providing strategic direction to PRs;

• Ensuring policies and procedures are applied• Instituting financial controls (including independent

audits), and• Following through on key recommendations in a

transparent and accountable manner.

Countries with Global Fund Grants

BG/261107/6

12 (new)3 (new)4 (new)5 (new)6 (new)7 (new)

0 5,0002,500

Kilometers ´

Multilateral11%

NGO/ Private sector17%

Not signed12%

Government60%

Who Administers Global Fund Grants? Rounds 1-7, (December 2007)

100% = $9.98 billion USDPercentages of total funds approved by the Board, including Phase 2 but excluding grants before start

Global Fund Grant Resources by Principal Recipient

OP/071207/4

Fund Portfolio Manager

(few reflections)

Manages grants not programs.

Gate keeper for the country within the GF Secretariat, GF Board and a wide world.

Decision maker and “Jack-of-all-trades”.

Interacts with multiple stake-holders at country level, regionally and globally.

Great believer in the PBF principle.

Round 8 Proposals

Thank you.

Tatjana Peterson, FPMSouthern Africa Country Team