Open Society Institute, Public Health Program Proposal Development and Advocacy Seminar

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 > 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 Systemsthat: • 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.

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, M&E).

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 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

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 1+2 Grant Performance Report Performance data in real time

14. 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 Performance Indicators to Measure Coverage 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