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  • Fixed The Global Fund’s system of Performance-based funding was developed to: Link disbursements to achievement of targets Provide incentives for grantees to focus on results and timely implementation Identify opportunities early in the Grant lifecycle to expand efforts and address implementation issues Provide a tool for the CCM oversight and monitoring purposes Free up committed resources from non-performing grants for re-allocation to programs where results can be achieved Criteria for Phase 2 grant renewal Performance evaluation Programmatic results against agreed-upon targets, Quality of data Disbursement history and expenditures in light of the 2-year Budget Contextual factors Governance Promotion of broad and inclusive partnership Promotion of sustainability and national ownership Financial and Program Management Financial Management (e.g., disbursement to sub-recipients) Monitoring and Evaluation (including quality of data) Procurement and supply management Program Environment Program supporting environment (capacity strengthening, support from technical partners, etc) Disease trends Adverse external influences (force majeur ) Reprogramming Consistency of activities and intended results with the original Board-approved Proposal.
  • Indicators and targets set, form the basis of the Global Fund’s performance-based funding system. The Global fund has developed a suite of tools to facilitate grant management and PBF. These tools track relevant performance targets and achievements by using a clear set of indicators and targets taken from original proposal and included in GA. These indicators are tracked at every point in the process: from GA, through regular DR and PU, through to the requests for continued funding and extended GA for Phase II funding. Simultaneously, all performance related information is compiled in a GPR. The Grant Performance Report is updated as performance and disbursement information becomes available and is actively shared with all partners Towards the end of each grant’s initial 2 year funding period, Grant scorecard is prepared combining the aggregate results with independent verification and assessment data on the grants performance, any relevant contextual information and this then becomes the basis for the Phase II funding decisions taken by the board.
  • Fixed Picture: Credit: Riccardo Gangale. File name: DRG0164
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  • Update every 6-12 months
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    1. 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. 2. Contents From Proposal to Grant Funding Principal and Sub-Recipient Capacity (LFA) Assessment Grant Performance CCM Oversight
    3. 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. 4. From intent to implementation… <ul><li>PROPOSAL IS APPROVED FOR FUNDING: </li></ul><ul><li>The CCM formally nominates the Principal Recipient (PR) </li></ul><ul><li>The Local Fund Agent (LFA) (re-)assesses the PR capacity to implement the grant </li></ul><ul><li>The Fund Portfolio Manager - with the GF technical support team - negotiates the Grant Agreement with the PR (6 months > 1 year). </li></ul><ul><li>The CCM and Civil Society representative endorses new Grant Agreement </li></ul><ul><li>When the Grant Agreement is signed by both parties, it is posted on public GF website. Anyone can have a copy from there. </li></ul><ul><li>Grant Agreement terms and conditions change overtime. An amendment to the original document is called Implementation letter. </li></ul>
    5. 5. <ul><li>Relies on local stake-holders at the country level to implement programs and manage grant proceeds </li></ul><ul><li>Promote rapid release of funds to assist target populations </li></ul><ul><li>Monitor and evaluate program effectiveness and make funding decisions based on (1) program performance and (2) financial accountability </li></ul><ul><li>As far as possible promote the use of existing standards and processes in grant recipient countries. </li></ul>Global Fund Fiduciary Principles
    6. 6. As a minimum, the Global Fund requires PRs to have: <ul><li>Financial Management and Systems that : </li></ul><ul><ul><ul><ul><li>Can correctly record all transactions and balances, including those supported by the Global Fund; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Can disburse funds to sub-recipients and suppliers in a timely, transparent and accountable manner; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Maintains an adequate internal control system </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Can support the preparation of regular reliable financial statements; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Can safeguard the PR’s assets; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Are subject to acceptable auditing arrangements. </li></ul></ul></ul></ul>
    7. 7. As a minimum, the Global Fund requires PRs to have: <ul><ul><ul><li>(b) Program Management Capacity and arrangements that include : </li></ul></ul></ul><ul><ul><ul><ul><li>Legal status and authority to enter into the grant agreement with the Global Fund; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Effective organizational leadership, management, transparent decision making and accountability systems; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>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 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Adequate health expertise (HIV/AIDS, tuberculosis and/or malaria) and cross-functional expertise (finance, procurement, legal, M&E). </li></ul></ul></ul></ul>
    8. 8. More on PR minimum requirements… <ul><li>(c) Sub-recipient Management capacity, including: </li></ul><ul><li>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 </li></ul><ul><li>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. </li></ul>
    9. 9. PR minimum capacity cont/d… <ul><li>(d) Pharmaceutical and Health Product Management Systems that can: </li></ul><ul><li>Procure, store and distribute health products in accordance with Global Fund procurement and supply management policies. </li></ul><ul><li>(e) Monitoring and Evaluation Systems that can : </li></ul><ul><ul><ul><ul><li>Collect and record programmatic data with appropriate quality control measures; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Support the preparation of regular reliable programmatic reports; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Make data available for the purpose of evaluations and other studies. </li></ul></ul></ul></ul>
    10. 10. Performance Based Funding (PBF) <ul><li>DESIGNED TO: </li></ul><ul><li>Provide incentives to encourage grant recipients to concentrate on results rather than on inputs; </li></ul><ul><li>Serve as a management tool for PR; </li></ul><ul><li>Furnish the GF with necessary performance information to decide on future disbursements of funds; </li></ul><ul><li>Provide performance information to the CCMs for its oversight and monitoring purposes; and </li></ul><ul><li>Communicate periodic progress updates to the Global Fund Board and wider constituency. </li></ul><ul><li>PBF ARRANGEMENTS: </li></ul><ul><li>- flexible rather than prescriptive </li></ul><ul><li>responsive to local conditions </li></ul><ul><li>aligned with donor harmonization efforts and best practices. </li></ul>
    11. 11. 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
    12. 12. PBF - Importance of M&E <ul><li>We adhere to Performance Based Funding model </li></ul><ul><li>Some key intended outcomes  </li></ul><ul><li>Long term  Ensure investments are made where impact on the diseases can be achieved </li></ul><ul><li>Strategy level  Provide incentives to focus on results and timely implementation </li></ul><ul><li>Implementation level  Help countries identify : </li></ul><ul><ul><li>Effective efforts for early replication & scale-up ; or </li></ul></ul><ul><ul><li>Take early corrective actions </li></ul></ul>
    13. 13. Implementing the Grant Performance System Grant Agreement Grant Proposal Form CCM Request for continued funding Annual Review 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
    14. 14. Performance Indicators to Measure Coverage <ul><li>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. </li></ul><ul><li>Coverage is measured by assessing the number of: </li></ul><ul><ul><li>people reached with services and goods </li></ul></ul><ul><ul><li>service delivery points </li></ul></ul><ul><ul><li>people trained to deliver services </li></ul></ul>GP/290607/1
    15. 15. CCM Oversight Role Grant Implementation Grant Negotiation Proposal Development
    16. 16. CCM - Implementation Oversight <ul><li>Oversight is a key function of governance : </li></ul><ul><li>Ensuring that the resources – financial and human – are being used efficiently and effectively for the benefit of the country. </li></ul><ul><li>Ensuring that the activities are implemented as planned by providing strategic direction to PRs; </li></ul><ul><li>Ensuring policies and procedures are applied </li></ul><ul><li>Instituting financial controls (including independent audits), and </li></ul><ul><li>Following through on key recommendations in a transparent and accountable manner. </li></ul>
    17. 17. Countries with Global Fund Grants BG/261107/6
    18. 18. Who Administers Global Fund Grants? Rounds 1-7, (December 2007) 100% = $9.98 billion USD Percentages 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
    19. 19. Fund Portfolio Manager <ul><li>(few reflections) </li></ul><ul><li>Manages grants not programs. </li></ul><ul><li>Gate keeper for the country within the GF Secretariat, GF Board and a wide world. </li></ul><ul><li>Decision maker and “Jack-of-all-trades”. </li></ul><ul><li>Interacts with multiple stake-holders at country level, regionally and globally. </li></ul><ul><li>Great believer in the PBF principle. </li></ul>
    20. 20. Round 8 Proposals
    21. 21. <ul><li>Thank you. </li></ul><ul><li>Tatjana Peterson, FPM </li></ul><ul><li>Southern Africa Country Team </li></ul>