TGF/LOG/150804/1

Grant Life Cycle

Global Fund architecture

• Grant process– Proposals management– Grant negotiations– Performance-Based Funding– Phase 2 decision

• Disbursement process

ARCH/300704/1

Grant process key dates

Proposals Submitted

1.3 Screening

Eligible Proposals Selected

1.4 TRP

Review

TRP Recommend

ations

TRP Chair/Vice Chair Sign-off (Final Board

Approval)

1.5 Board

Approval

1.6 TRP Clarification

(as required)

Call for Proposals

1.1 Future Round Planning

1.2 Guidelines for Proposal

Refinement & Call for

Proposals

Board Approval

I. Proposals Management

Board Approval

Grant Start

Grant Renewal (2 years)

Grant End (up to 5 years)

The Global Fund grant process

Grant Signing

2.1 CCM Confirmation

of PR Nomination

PR Nomination Confirmed Grant Signing &

First Disbursement

2.2 LFA Selection and Contracting

II. Grant Negotiation and First Disbursement

Grant Negotiations

2.4 Review of Budgets, Workplan, and Indicators

2.5 Negotiation (including conditions

precedent)

2.6 First Disbursement Preparation

LFA Contracted

2.3 PR Assessments

18 months since first disbursement

3.3 Phase 2 Grant Renewal

Process

Updated Grant

Agreement

3.5 LFA Management

Phase 2 Go/No Go Decision

3.4 Grant Extension

3.6 Grant Support

Performance-based Funding

3.1 Ongoing Reviews &

Disbursements

3.2 Grant Revisions

III. Performance-Based Funding and Grant Support

Performance-based Funding

3.1 Ongoing Reviews &

Disbursements

3.2 Grant Revisions

End of Phase 2 Support

ARCH/300704/3

TRP Chair/Vice Chair Sign-off (Final Board

Approval)

1.3 Screening

1.4 TRP

Review

1.5 Board

Approval

1.6 TRP Clarification

(as required)

Call for Proposals

1.1 Future Round Planning

1.2 Guidelines for Proposal

Refinement & Call for

ProposalsEligible

Proposals Selected

TRP Recommend

ations

Board Approval

Proposals Submitted

Submit proposals Reply to TRP

Decide timing of Call for Proposals

Screen proposals for eligibility

Review proposals;make fundingrecommendations on proposals

Help CCM develop and submit grant proposals

Review clarifications, make final decisions

Prepare Guidelines for Proposals

Decide on proposals based on TRP recommendations

Technical Review Panel

CCM

Board

Partners

Local Fund Agent

Trustee

PrincipalRecipient

Secretariat

Proposals management

ARCH/300704/4

Key Issues in Proposal Submission

• Program and budget alignment

• Alignment with previous submissions

• Anticipating future program realities

• Is the PR known? (UNDP?)

• Follow up with grant negotiations

• Opportunities/needs for technical assistance?

Grant negotiation and first disbursement

Determine policies governing grants management

Confirm nomination of PR (if necessary)

Assist in preparing Budget and Workplan, indicators, PSM and M&E Plans; Sign Grant Agreement (as acknowledgement only)

Disburse funds in accordance with written instruction from Secretariat

Assess suitability of nominated PR

Identify and contract LFA

2.1 CCM Confirmation

of PR Nomination

PR Nomination Confirmed

Grant Negotiations

Grant Signing & First

Disbursement

2.3 PR Assessments

2.4 Review of Budgets, Workplan, and Indicators

2.5 Negotiation (including conditions

precedent)

2.2 LFA Selection and Contracting

LFA Contracted

2.6 First Disbursement Preparation

Assess proposed PR’s capacity; Review Budget and Workplan, indicators, PSM and M&E Plans; Facilitate grant negotiations; Provide recommendation on first disbursement request

Provide previous reviews and assessments of the PR to the LFA; Assist in preparing Budget and Workplan; indicators; PSM and M&E Plans

Assist in preparing Budget and Workplan, indicators, PSM and M&E Plans; Negotiate and sign Grant Agreement; Make first disbursement request

Review Budget and Workplan, indicators, PSM and M&E Plans;Negotiate and sign Grant Agreement; Decide to disburse

Enter into contract with Global Fund

CCM

Board

Technical Review Panel

Partners

Local Fund Agent

Trustee

PrincipalRecipient

Secretariat

ARCH/300704/5

Key Issues for Grant Negotiation

• Budgets alignment• Indicator alignment• Work plan alignment• Technical assistance during implementation• Incorporating M&E• LFA assessments/CPs/capacity building• Opportunities/needs for technical assistance?

18 months since first

disbursement

3.3 Phase 2 Grant Renewal

Process

Updated Grant

Agreement

Phase 2 Go/No

Go Decision

3.4 Grant Extension

Performance-based Funding

3.1 Ongoing Reviews &

Disbursements

3.2 Grant Revisions

Performance-based funding & grant support

Negotiate Phase 2 Grant Extension

Negotiate Phase 2 Grant Extension

Facilitate negotiationof Phase 2 Grant extension

Provide technical review of requests for changes in scope of grants

Review Phase 2 Request for Continued Funding

Provide comments/assessments to CCM and to Global Fundregarding program performance

Provide recommendation Regarding Phase 2 Funding

Commit resources for Phase 2 Renewals

Submit Request for Continued Funding for Phase 2

Monitor grant implementation; Verify PR reports of progress; Provide recommendations on ongoing disbursements

Disburse funds in accordance with written instruction of Secretariat

Assess Phase 2 funding request if requested

Decide to disburse based on performance; Work with partners to assure support to PR implementation

Legally accountable for grant implementation; Request disbursements and provide periodic reports of progress

Support PR with capacity building and technical assistance throughout program implementation

As needed, revise policies governing grants management;

Oversee implementation process;Coordinate with other donors and domestic programs

Secretariat

Technical Review Panel

Board

CCM

Partners

Principal Recipient

Local Fund Agent

Trustee

ARCH/300704/6

Disbursement process

LFA recommendationand request Trustee

to disburse

Complete conditionsprecedent to first

disbursement

Disbursement to PRbank account

Responsibility: PR Global Fund Trustee

Ongoing disbursements

First disbursement

Timeframe: Variable

(days to months)

Typically <1 week 1-3 weeks

Disbursementto PR

bank account

Review ofprogress and

request Trusteeto disburse

Completion ofany additional

conditionsprecedent

Disbursementrequest and

program update

Responsibility: PR Global Fund Trustee

Timeframe: Variable

(by grant agreement)

Typically 1-3 weeks

1-3 weeks

PR

Typically

45 days after quarter close

Grant signing

ARCH/300704/7

Performance-based funding

The Global Fund’s system for Performance-Based Funding was developed in order to:

• Relate disbursements to achievement of targets

• Provide incentives for grantees to focus on results and timely implementation

• Early identify opportunities to expand effective efforts and address potential issues

• Provide a tool for the CCM’s oversight and monitoring purposes

• Free up committed resources from non-performing programs for re-allocation to programs where results can be achieved

PBF/300704/2

Performance-based funding: What

Programmatic monitoring

Financial monitoring

Performance-Based

Funding

Linking ongoing disbursement to attainment of programmatic results and financial expenditures

PBF/300704/1

Key Issues in Performance Base Funding

• Reaching targets

• Disbursements and utilization of funds

• Procurement and activities

• Sub-recipient performance

• Timely reporting

• Reliability of data

• Opportunities/needs for technical assistance?

Portfolio update: lessons learned

• Good practices• Many grants are implementing, showing progress, and require

minimal intervention

• Strong management by Principal Recipients

• Active CCMs, engaged in program oversight

• Partners involved and providing technical assistance

• Implementation challenges• Some grants are implementing at a concerning slow pace and unable

to achieve targets and will require special intervention

• Overambitious work plans and programs

• Lack of capacity

• Slow disbursements of funds

• In some cases, lack of facilitation by the Global Fund

• Capacity of partners to cope with growing technical assistance needs

PERF/300704/2

97%

65%

21%

0%

25%

50%

75%

100%

Status

Dis

burs

emen

t rat

eStatus 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)

25 one year old grants: Disbursement rates by performance status

PRS/300704/22

Performance rating system

Decision category Grant Performance

rating

Contextual considerations

“Go”Phase 2 grant committed for the remaining proposal period (years 3-5)

Aexpected or exceeding

expectations

andNo 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)

B1Adequate

and/or

Major 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 approval

B2inadequate but

potential demonstrated

and/or

Major recent improvements in

program supporting

environment

“No go”*Phase 2 grant not committed *requires Board Decision

Cunacceptable

or

Critical contextual risks

beyond PR and/or CCM

controlM&E/300704/9

Technical partnerships with and local support from multilateral and bilateral agencies are critical to credible and consistent collection of data for M&E

Successful implementation

at scale

The Global Fund

• Provide substantial, sustained financing

• Contribute to advocacy for resources to partners providing technical support to grantees

• Endorse and apply technical guidelines in reviews

Technical partners

• Support countries in proposal development with operational plans

• Provide on-the-ground assistance to countries to enable implementation

• Assist in monitoring & evaluation with reporting systems & data gathering

• Offer additionality of financial resources and coordination

The role of partnership

PART/300704/1

WHO technical assistance

30%

22%

36%

30%

50%

62%

56% 56%

HIV/AIDS Malaria Tuberculosis Total

Without WHO Assistance

WHO Assisted

Success rates for Round 4

14 13

8

14

15

27 42

27+42= 69 components recommended in Round 4

5

PART/300704/2