1. LFA expert approval - Conflict of Interest LFA training October - November 2013

2. LFA key experts – who are they? Team Leader Finance Professional Pharmaceutical and Supply Management expert for health products Programmatic/M&E expert Procurement (non-health) expert

3. To work as LFA key experts have to… 1.meet minimum requirements as defined by GF (professional experience, qualifications, language competency) 2.be accountable for LFA deliverables/work performed in specific technical area 3.be approved by GF Team Leader is ultimately responsible & accountable for quality & content of all LFA reports/documents submitted to GF

4. Proposing a key expert for approval Submit the following to LFA Coordination team and FPM: 1. Up-to-date CV; 2. Country coverage; 3. City/country key LFA expert will be based in (in- country/fly-in); 4. Declaration of the absence of conflict of interest; 5. Key expert’s role within the LFA country team.

5. Experts covering several countries For NEW experts submit: 1. plan on how the expert’s time will be allocated to cover all countries to ensure timely delivery of quality information to GF. For already APPROVED experts submit: 1. above plan; 2. explanation of expert’s role in new country LFA team(s); 3. information on relevance of the expert’s qualification/experience specific to the grant/country context. In ALL cases: 1. up-to-date declaration of absence of CoI

6. Changing role of LFA team member E.g. promotion from junior to key expert Submit the following to LFA Coordination team and FPM: 1. up-to-date CV; 2. rationale for the proposed change in the role; 3. information on relevance of the expert’s qualification/experience to the new role; 4. plan on re-allocation of roles between LFA team members due to the change in the role of this expert. In case of promotions, ensure the agreed team structure/balance between junior & key experts is maintained

7. Conflict of Interest

8. Conflict of Interest - Definition A Conflict of Interest (CoI) is…. … a situation in which an LFA, incl. an affiliate and/or sub-contractor has interests (financial, organizational or other) that would or may appear to make it difficult for the LFA to fulfill its obligations to the Global Fund in an objective, independent and professional manner, or a situation in which it is reasonable to foresee that such an interest would arise. For example: LFA provides technical assistance to the PR LFA audits PR or SR LFA implements part of the grant

9. Responsibilities of LFAs The independence and objectivity of LFAs is critical to their fiduciary oversight role 1.Make every effort to avoid situations where a CoI may arise. 2.Do not enter into any contract, arrangement, relationship or venture that would or would appear to cause a conflict of interest to arise. 3.Submit declaration of absence of CoI prior to signing contract with the GF AND on annual basis starting 2014. 4.Submit declaration of absence of CoI for each key expert when they join the team. 5.Disclose potential or real CoI situations - before entering into a contract with GF AND throughout the duration of the contract.

10. Responsibilities of LFAs contd. Failure to sign the CoI declaration or to disclose any actual or potential conflict of interest may in the termination of the LFA contract with the Global Fund. CoI disclosure: 1.Immediately upon becoming aware of a potential CoI the LFA must: notify the GF of situations that may constitute an actual or apparent CoI, fully disclose all relevant details propose effective mitigation measures, where applicable

11. Some considerations when evaluating a potential CoI Does undertaking the proposed work risk to compromise my objectivity and independence as LFA when reporting the findings and recommendations from grant/PR performance reviews to the GF? WHAT? - Nature of the service – is it related to the LFA role, risk of self-review? WHO? - Client/recipient of the service – PR, SR? Is the conflicting service being performed within the same unit that implements GF grant? How much? – Contractual relationship/size of the fee /who is paying: is the fee large enough to potentially compromise the LFA’s impartiality? WHO? – performs the service: LFA team? size and structure of the LFA team - is it big enough and structured appropriately to allow ethical walls to exist between the different function?

12. Exercise - CoI Case Studies Scenario 1 You are the LFA in Fictitia. The PR is the MoH in Fictitia. Your Programmatic/M&E expert has informed you that she is resigning to take on a new job. You have been struggling to find appropriate in- country expertise to replace her. You are about to conduct interviews of shortlisted candidates, one of whom has impressive experience in the field. However, you note that this person has worked in Fictitia in the past as a employee of Health Services Consultancy Intl., a global consultancy group specialized in health systems strengthening and capacity building. Health Services Consultancy Intl. has provided services to the PR in Fictitia in the past, including during the time when the PR was implementing the Global Fund grants.

13. Feedback - Case Scenario 1 Is there a risk of a conflict of interest (including a potential conflict of interest)? The answer is: Yes, risk of potential self-review. But more information is needed. Key facts/additional information required: 1. What was nature of services to PR? GF grant specific or related? 2. If not GF specific, is there still a potential the LFA will review the work of the consultancy? 3. To whom: PR or another department in the MoH? 4. When: was the service provided? Cooling off period 5. Who: was the proposed candidate in any way involved in providing the service? If so, what was her role?

14. Exercise - CoI Case Studies Scenario 2 You are the LFA, a global financial services firm, working in Fictitia. The PR is the Ministry of Health. The MoH works with several sub- recipients, including the NGO ABC, to implement activities under the Global Fund grant. ABC, which has only one office in the country, is also implementing programs funded by other international donors, including the European Aid Council. The latter has a framework contract with the Headquarter of your organization and has requested it to submit a proposal to conduct a Financial and Systems audit of an European Aid Council funded project implemented by ABC. Your HQ firm is requesting members of the LFA team in Fictitia to conduct the field work as part of the proposed audit. The audit fees are expected to be US$ 65,000.

15. Feedback - Case Scenario 2 Is there a risk of a conflict of interest (including a potential conflict of interest)? The answer is: Yes, as it involves an audit of an SR. Key facts/additional information required: 1. What was nature of services: a) Not GF specific audit, but it includes financial systems that SR is likely to use also for GF grant b) separate reporting lines, accounting systems, bank accounts for the management of funds received by the European Aid Council and GF not ensured 2. Who: LFA team members to conduct audit 3. To whom: SR: How significant is it? Does SR use the same staff to implement GF and European Aid Council projects? 4. Who pays/how much

16. In your Role as LFA… Avoid any actions that risk compromising your objectivity and independence vis-à-vis the Global Fund Fully disclose to the GF any potential or real CoI in a timely manner Evaluate realistically each situation and propose effective mitigating measures, where appropriate Anticipate any potential CoI and act upon it immediately Remember: Perceived conflicts are just as serious as an actual conflicts Not every potential CoI can be mitigated