1 January 2005 Introduction to Phase 2 and General Update Lesotho CCM

Performance-based funding across the chronology of a Global Fund proposal Y1Y2Y3Y4Y5 Proposal Initial Grant AgreementExtension of Grant Agreement Phase 1 Phase 2  Funding beyond Phase 1 is based on: –Performance during Phase 1; –Availability of resources  Proposals are approved for up to a 5 year term  However, Global Fund initially commits funds only for years 1 and 2 – “Phase 1”  Performance assessment builds on periodic reviews throughout Phase 1 (quarterly/semi-annual Disbursement Requests/ Progress Updates), complemented by Annual Review and Audit Report

Key dates in Phase 1 lifecycle 1. Board approves Proposals 2. Global Fund and PR(s) sign Grant Agreement 3. PR receives first disbursement; Program start date (1 January 2004) 0 9. Negotiate and sign Grant Agreement extension by month Phase 2 Secretariat recommendation CCM submits Request for Continued Funding 10. First phase 2 disbursement CCM invited to submit a Request for Continued Funding (1 May 2005) Program month 4. PR implementation and reporting; CCM oversight; LFA verifications; Global Fund performance- based disbursements; partner support 8. Board approval during month Phase 2 Renewal Process * End of months

Phase 2 documentation Invitations sent to CCM CCM Submit Request for Continued Funding Month 16Month 18Month 20Month 22 Phase 2 Renewal Process Submitted Documents (by the CCM) CCM Request for Continued Funding Minutes of the CCM meetings (on Phase 2 Request) Detailed Budget and Workplan for Y3 List of Health Products for Y3 Indicative Budget and Workplan for Y4-5 Proposed Attachments 3 Latest Progress Report Revised Program Implementation strategy (if necessary) CCM Request for Continued Funding Minutes of the CCM meetings (on Phase 2 Request) Detailed Budget and Workplan for Y3 List of Health Products for Y3 Indicative Budget and Workplan for Y4-5 Proposed Attachments 3 Latest Progress Report Revised Program Implementation strategy (if necessary) Sent Documents (to the CCM) Invitation letter to CCM to submit a Request for Continued Funding Grant Performance Reports CCM Request for Continued Funding Form and Instructions Attachment 3 Form Attachment 3 Form Instructions Invitation letter to CCM to submit a Request for Continued Funding Grant Performance Reports CCM Request for Continued Funding Form and Instructions Attachment 3 Form Attachment 3 Form Instructions Documents to be submitted later by PRs Annual Reviews Audit Reports Annual Reviews Audit Reports

CCM Request for Continued Funding Country contextual information Partnerships Linkages with related national/regional/ international initiatives Overall national financial resources CCM assessment of Phase 1 Feedback on Global Fund processes Phase 2 budget –Maximum amount available –Phase 2 request

Phase 2 timing in Lesotho Invitations sent to CCM CCM Submit Request for Continued Funding Month 16Month 18Month 20Month 22 Phase 2 Renewal Process Board decision 1 May July 2005 Deadline September - October 2005

Maximum amounts available for TB in Phase 2 Original proposal, total Original proposal, years 3-5 Phase 1 agreements, years 1-2 Disbursements to date Maximum available for Phase 2 (total minus actual and projected Phase 1 disbursements) US$5,000,000 US$3,000,000 US$2,000,000 US$946,329 US$4,053,671 (minus Phase 1 disbursements in 2005)

CCM Guidelines – Updated by the Board Board adopted the following requirements for CCMs: –All CCMs are required to show evidence of membership of people living with or affected by the diseases –CCM members representing the non-government sectors must be selected by their own sector(s) based on a documented, transparent process, developed within each sector –CCMs are required to put in place and maintain a transparent, documented process to: Solicit and review submissions for possible integration into the proposal Nominate the Principal Recipients and oversee program implementation Ensure the input of a broad range of stakeholders, including CCM members and non-members, in the proposal development and grant oversight process This decision will be effective from Round 5 onwards and for Phase 2 renewals starting from June 2005 (this applies to the Lesotho CCM)