1.  Capacity Development; National Systems / Global Fund Summary of the implementation capacities for National Programs and Global Fund Grants For HIV /TB /Malaria

2. Introduction  The National Program Manager and/or Global Fund Principal Recipient / Sub Recipients require a number of implementation capacities.  Important to identify;  what implementation capacities are already in place;  identify any capacity gaps and;  design an action plan to strengthen the priority implementation capacities  This will help increase the performance of the program / grants, mitigate risks and help reduce the imposition of Conditions Precedent in grant agreements.

3. Implementation Capacities  Implementation capacities for National Program / Global Fund grants;  Developing National Programs (including New Funding Model);  Program Management;  Sub-Recipient Management;  Financial Management;  Risk Management;  Procurement and Supply Chain Management;  Monitoring and Evaluation.  List of capacities on the following slides can be used as a checklist to identify the minimum requirements.  The list of capacities selected can be added to, or decreased based on the context.  The capacities are aligned to the NFM, LFA assessment and Minimum PR Requirements, updates can be found on http://www.theglobalfund.org/en/.http://www.theglobalfund.org/en/

4. Management  Management and organizational leadership with transparent decision making processes and performance of existing grants and future NFM.  To have in place human resources with adequate technical knowledge and health expertise.  To have in place human resources with adequate skills and experience to manage the implementation functions; program management; SR Management; Finance; PSM and M&E  Functional analysis of the future roles and responsibilities to implement a National Program / Global Fund Grant and check adequate Human Resources for health expertise and functions.  New Funding Model Identify dates to start Country Dialogue / preparation of the Concept Note  Where appropriate Consider structure needed for Transition to National PR-ship and increased use of National Systems.  Sustainability– e.g. reduce reliance on international funding and increase in domestic funds.  Consider options Civil Society and Capacity Development for Key Affected Populations (KAPs).

5. Program Planning  National disease program review(s) to inform decisions.  Revise National Strategic Plans (NSPs) using multi-stakeholder process, including realistic indicators.  Country Dialogue including Key Affected Populations (KAPs) capacitated for planning & decision-making.  Concept Note(s) as part of the NFM application process including the engagement inputs of KAPs.  Human Rights / Gender Equality/ Sexual Orientation barriers to accessing services are addressed.  Sufficient oversight and accountability mechanisms in place

6. Program Implementation  Operations manuals with procedures (SOPs) and templates that are being utilized to meet the national and Global Fund requirements.  Operational Plan(s) aligned to the NSP, National Strategies / Programs and Global Fund grants, together with coordination.  Operational Plan(s) based on national and international guidelines.  Plans take into account issues related to accessibility of products and services for Key Affected Populations.  Consider national entities structure for implementing the NFM  If appropriate the structures for nation entities to take on PR-Ship.

7. Sub-Recipient Management  New function for future PR (if appropriate)  Systems for the management and oversight of Sub-Recipients to safeguard physical and financial assets.  Procedures to select, contract and develop capacity of SR’s for timely and quality program implementation.  Consider structure / modality for future PR to manage SRs

8. Financial Management  Identify current financial arrangements e.g. direct payment, reimbursement, cash advances etc, together with future requirements.  Financial manual procedures revised to adhere to national and Global Fund requirements.  Internal control system including an independent internal audit to monitor and verify compliance.  External auditors selected in accordance with national / Global Fund guidelines.  Functioning accounting system record all transactions and balances in line with the budget, timely and accurate reports with codes for indicator & ministry.  Monitor actual spending against budgets and work plans and analyze variances, taking action where needed.  Government entities; Commercial Bank accounts or Consolidated account in the Treasury?  Consider FM arrangements for current grant and the NFM

9. Procurement and Supply Chain  To put in place a PSM system with capabilities to forecast, procure and ensure end users have reliable access to commodities, that provides value for money and meets national and Global Fund quality requirements.  To manage and improve storage conditions to meet requirements including, the management and upgrading of storage and the equipment needed, for the type and quantity of the products to be stored, including facilities with temperature monitoring and controlling mechanisms.  To design and utilize a distribution plan for supplies, dispatches and transportation.  To put in place and utilize with adequate levels equipment and transportation with defined security measures for transportation.  To put in place and utilize a Logistics Management Information Systems (LMIS) with requisition and stock reporting tools.  To put in place and utilize quality assurance plans to monitor product quality throughout the in-country supply chain, guided by the WHO

10. Monitoring and Evaluation  To be able to develop and utilize realistic and relevant indicator frameworks.  To have in place data assurance mechanism, to allow routine monitoring of activities that are aligned to the goals and objectives of National Programs and Global Fund grants.  To have M&E systems that are able to generate quality and timely data that is used to; generate accurate and timely reports; facilitate analysis; and informs management decisions.  To be able to put in place and utilize a Health Management Information Systems (HMIS) databases for National Program Manager, PR(s) and SR(s).

11. Potential Steps  Engage key stakeholders and conduct a CD scoping exercise  Facilitate a rapid self-assessment and share findings and main recommendations  Nominate focal points in each national entity (working group?)  Facilitate prioritization and action planning with Stakeholders  Finalize and approve Capacity Development Plan  Mobilize resources for CD Plan and commence implementation.

12.  Capacity Development Toolkit http://www.undp-globalfund-capacitydevelopment.org/