2 Global Fund architecture Grant processProposals managementGrant negotiationsPerformance-Based FundingPhase 2 decisionDisbursement processPicture: Madagascar. File name: YA AntananarivoARCH/300704/1
3 The Global Fund grant process Grant process key datesProposals Submitted1.3 ScreeningEligible Proposals Selected1.4TRP ReviewTRPRecommendationsTRP Chair/Vice Chair Sign-off (Final Board Approval)1.5Board Approval1.6TRP Clarification(as required)Call for Proposals1.1 Future Round Planning1.2 Guidelines for Proposal Refinement & Call for ProposalsI. Proposals ManagementGrant StartGrant Renewal (2 years)Grant End(up to 5 years)The Global Fund grant processGrant Signing2.1 CCM Confirmation of PR NominationPR Nomination ConfirmedGrant Signing & First Disbursement2.2 LFA Selection and ContractingII. Grant Negotiation and First DisbursementGrant Negotiations2.4 Review of Budgets, Workplan, and Indicators2.5 Negotiation(including conditions precedent)2.6 First Disbursement PreparationLFA Contracted2.3 PR Assessments18 months since first disbursement3.3 Phase 2 Grant Renewal ProcessUpdated Grant Agreement3.5 LFA ManagementPhase 2 Go/No Go Decision3.4 Grant Extension3.6 Grant SupportPerformance-based Funding3.1 Ongoing Reviews & Disbursements3.2 Grant RevisionsIII. Performance-Based Funding and Grant SupportEnd of Phase 2 SupportLatest version from Liz 1 July 2004ARCH/300704/3
4 Proposals management CCM Principal Recipient Partners Local Fund Agent Call for Proposals1.1 Future Round Planning1.2 Guidelines for Proposal Refinement & Call for Proposals1.3 Screening1.4TRP Review1.5Board Approval1.6TRP Clarification(as required)Proposals SubmittedEligible Proposals SelectedTRPRecommendationsBoard ApprovalTRP Chair/Vice Chair Sign-off (Final Board Approval)CCMSubmit proposalsReply to TRPPrincipalRecipientHelp CCM develop andsubmit grant proposalsPartnersLocal FundAgentDecide on proposals based on TRP recommendationsBoardDecide timing of Call for ProposalsFrom Liz as of 1 July pmSecretariatPrepare Guidelines for ProposalsScreen proposals for eligibilityReview proposals;make fundingrecommendationson proposalsTechnical Review PanelReview clarifications, make final decisionsTrusteeARCH/300704/4
5 Key Issues in Proposal Submission Program and budget alignmentAlignment with previous submissionsAnticipating future program realitiesIs the PR known? (UNDP?)Follow up with grant negotiationsOpportunities/needs for technical assistance?
6 Grant negotiation and first disbursement Grant Negotiations2.3 PR Assessments2.4 Review of Budgets, Workplan, and Indicators2.1 CCM Confirmation of PR Nomination2.2 LFA Selection and Contracting2.5 Negotiation(including conditions precedent)Grant Signing & First Disbursement2.6 First Disbursement PreparationPR Nomination ConfirmedLFA ContractedAssist in preparing Budget and Workplan, indicators, PSM and M&E Plans; Sign Grant Agreement (as acknowledgement only)CCMPrincipalRecipientConfirm nomination of PR (if necessary)Assist in preparing Budget and Workplan, indicators, PSM and M&E Plans; Negotiate and sign Grant Agreement; Make first disbursement requestProvide previous reviews and assessments of the PR to the LFA; Assist in preparing Budget and Workplan; indicators; PSM and M&E PlansPartnersLocal FundAgentAssess proposed PR’s capacity; Review Budget and Workplan, indicators, PSM and M&E Plans; Facilitate grant negotiations; Provide recommendation on first disbursement requestEnter into contract with Global FundFrom Liz as of 1 July pmBoardDetermine policies governing grants managementIdentify and contract LFAReview Budget and Workplan, indicators, PSM and M&E Plans;Negotiate and sign Grant Agreement; Decide to disburseSecretariatAssess suitabilityof nominated PRTechnical Review PanelDisburse funds in accordance with written instruction from SecretariatTrusteeARCH/300704/5
7 Key Issues for Grant Negotiation Budgets alignmentIndicator alignmentWork plan alignmentTechnical assistance during implementationIncorporating M&ELFA assessments/CPs/capacity buildingOpportunities/needs for technical assistance?
8 Performance-based funding & grant support 3.1 Ongoing Reviews & Disbursements3.3 Phase 2 Grant Renewal Process3.4 Grant Extension3.2 Grant Revisions18 months since first disbursementPhase 2 Go/No Go DecisionUpdated Grant AgreementOversee implementation process;Coordinate with other donorsand domestic programsCCMSubmit Request for ContinuedFunding for Phase 2PrincipalRecipientLegally accountable for grant implementation; Request disbursements and provide periodic reports of progressNegotiate Phase 2Grant ExtensionSupport PR with capacity building and technical assistance throughout program implementationProvide comments/assessments to CCM and to Global Fundregarding program performancePartnersFacilitate negotiationof Phase 2 Grant extensionLocal FundAgentMonitor grant implementation; Verify PR reports of progress; Provide recommendations on ongoing disbursementsProvide recommendationRegarding Phase 2 FundingBoardAs needed, revise policies governing grants management;From Liz as of 1 July pmCommit resources for Phase 2 RenewalsDecide to disburse based on performance; Work with partners to assure support to PR implementationSecretariatReview Phase 2 Request for Continued FundingNegotiate Phase 2Grant ExtensionTechnical Review PanelAssess Phase 2 funding request if requestedProvide technical review of requests for changes in scope of grantsTrusteeDisburse funds in accordance with written instruction of SecretariatARCH/300704/6
9 Disbursement process First disbursement Complete conditions precedent to firstdisbursementLFA recommendationand request Trusteeto disburseDisbursement to PRbank accountGrant signingResponsibility:PRGlobal FundTrusteeTimeframe:Variable(days to months)Typically <1 week1-3 weeksOngoing disbursementsCompletion ofany additionalconditionsprecedentDisbursementrequest andprogram updateReview ofprogress andrequest Trusteeto disburseDisbursementto PRbank accountResponsibility:PRPRGlobal FundTrusteeTimeframe:Variable(by grant agreement)Typically45 days after quarter closeTypically 1-3 weeks1-3 weeksARCH/300704/7
10 Performance-based funding The Global Fund’s system for Performance-Based Funding was developed in order to:Relate disbursements to achievement of targetsProvide incentives for grantees to focus on results and timely implementationEarly identify opportunities to expand effective efforts and address potential issuesProvide a tool for the CCM’s oversight and monitoring purposesFree up committed resources from non-performing programs for re-allocation to programs where results can be achievedPicture: Cambodia – File name: IH traditional basket carrierPBF/300704/2
11 Performance-based funding: What Programmatic monitoringFinancial monitoringLinking ongoing disbursement to attainment of programmatic results and financial expendituresPBF/300704/1
12 Key Issues in Performance Base Funding Reaching targetsDisbursements and utilization of fundsProcurement and activitiesSub-recipient performanceTimely reportingReliability of dataOpportunities/needs for technical assistance?
13 Portfolio update: lessons learned Good practicesMany grants are implementing, showing progress, and require minimal interventionStrong management by Principal RecipientsActive CCMs, engaged in program oversightPartners involved and providing technical assistanceImplementation challengesSome grants are implementing at a concerning slow pace and unable to achieve targets and will require special interventionOverambitious work plans and programsLack of capacitySlow disbursements of fundsIn some cases, lack of facilitation by the Global FundCapacity of partners to cope with growing technical assistance needsPERF/300704/2
14 25 one year old grants: Disbursement rates by performance status Status A: On track or substantially exceeding one year target (n=12)Status B: Substantial progress but fall short of one year targets (n=8)Status C: Substantially underachieving against one year targets (n=5)PRS/300704/22
15 Performance rating system Decision categoryGrant Performance ratingContextual considerations“Go”Phase 2 grant committed for the remaining proposal period (years 3-5)Aexpected or exceeding expectationsandNo or minor contextual issues“Conditional go”Phase 2 grant committed conditional upon time-bound actions to be taken by the PR/CCM (maximum 1 year)B1Adequateand/orMajor contextual issues that can be addressed by the PR/CCM“Revised go”CCM/PR reprogramming (targets and Budget substantially revised for Phase 2) subject to Global Fund approvalB2inadequate but potential demonstratedMajor recent improvements in program supporting environment“No go”*Phase 2 grant not committed*requires Board DecisionCunacceptableorCritical contextual risks beyond PR and/or CCM controlM&E/300704/9
16 Successful implementation at scale The role of partnershipTechnical partnerships with and local support from multilateral and bilateral agencies are critical to credible and consistent collection of data for M&EThe Global FundProvide substantial, sustained financingContribute to advocacy forresources to partnersproviding technicalsupport to granteesEndorse and apply technical guidelines in reviewsTechnical partnersSupport countries inproposal developmentwith operational plansProvide on-the-groundassistance to countries toenable implementationAssist in monitoring &evaluation with reportingsystems & data gatheringOffer additionality of financial resources and coordinationSuccessful implementation at scaleBe- your notes say that there are more slides on partnerships (maybe from a UNAIDS meeting in April or May), but I still don’t have them.PART/300704/1
17 WHO technical assistance Success rates for Round 45141413274227+42= 69 components recommended in Round 4815PART/300704/2