Open Society Institute, Public Health Program

1

• Open Society Institute, Public Health Program
• Proposal Development and Advocacy Seminar
• for Eastern and Southern Africa
• Cape Town, South Africa
• 18 February 2008

2
Contents
From Proposal to Grant Funding Principal and
Sub-Recipient Capacity (LFA) Assessment Grant
Performance CCM Oversight
3
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
4
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 gt 1 year).
• The CCM and Civil Society representative endorses
  new Grant Agreement
• When 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.

5
Global Fund Fiduciary Principles

• 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.

6
As a minimum, the Global Fund requires PRs to
have

• 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 PRs assets and
• Are subject to acceptable auditing arrangements.

7
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, ME).

8
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.

9
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.

10
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.

11
Performance-Based Funding
Performance-Based Funding
Programmatic Monitoring
Financial Monitoring
PBF links ongoing disbursements to the
achievement of programmatic results and
expenditures
GP/290607/11
12
PBF - Importance of ME

• 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

13
Implementing the Grant Performance System
Grant lifecycle
6 Mth
12 Mth
16 Mth
18 Mth
2 Year Phase 1 end
Grant Start
10mth
24mth
3 Mth
9 Mth
15 Mth
Performance tools
Annual Review
Grant Agreement
CCM Request for continued funding
Grant Scorecard
Grant Proposal Form
Disbursement Request/ Progress Update
Annex A
Perf. Matrix 3
Perf. Matrix 2
Perf. Matrix 1 or 12
Grant Performance Report
Performance data in real time
14
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
15
CCM Oversight Role
16
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.

17
Countries with Global Fund Grants
BG/261107/6
18
Who Administers Global Fund Grants? Rounds 1-7,
(December 2007)
Global Fund Grant Resources by Principal Recipient
100 9.98 billion USD Percentages of total
funds approved by the Board, including Phase 2
but excluding grants before start
OP/071207/4
19
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.

20
Round 8 Proposals
21

• Thank you.
• Tatjana Peterson, FPM
• Southern Africa Country Team