1 Introduction to the new funding model Key features and implementation LFA PSM expert workshop 28 – 30 January 2014

2 Bigger impact: focus on countries with the highest disease burden and lowest ability to pay, while keeping the portfolio global Predictable funding: process and financing levels become more predictable, with higher success rate of applications Ambitious vision: ability to elicit full expressions of demand and reward ambition Flexible timing: in line with country schedules, context, and priorities More streamlined: for both implementers and the Global Fund Principles of the new funding model Principles of the new funding model

3 How does the new model differ from the previous model? Passive role by the Secretariat in influencing investments More active portfolio management to optimize impact Low predictability: timing of Rounds, success rates and available funds Engagement by Global Fund Country Teams in country dialogue and concept note development Cumbersome undifferentiated process to grant signing with different delays Disbursement-ready grants with differentiated approach Timelines largely defined by the Global Fund Hands-off Secretariat role prior to Board approval Timelines largely defined by each country High predictability: timing, success rates, indicative funding range From previous model To new funding model

4 New funding model cycle and timing 2 nd GAC Concept Note 2-3 months Grant Making months Board TRP GAC Ongoing Country Dialogue National Strategic Plan/ Investment Case Grant Implementation 3 years Countries can apply anytime in – identify now when funds are needed for each disease Grant funds will run to the next replenishment in 2017 at least

Structure of the concept note 5 CCM Eligibility Requirements 1 & 2 Section 1:Country context and response Overall funding landscape, additionality of resources requested & financial sustainability Summary information about the request Section 4: implementation arrangements and risk assessment The funding request, including a programmatic gap analysis & the modular template Section 2: Section 3: Essential info & process Content

6 The modular approach is a framework that runs through a grant's lifecycle The modular approach is a framework used to structure the information that defines a grant It runs throughout a grant's lifecycle, providing consistency at each stage –During the concept note stage, a funding request is defined by selecting a set of interventions per module to align with national strategy –During the grant making stage, each approved intervention is further defined by identifying and describing the required sets of activities –During grant implementation, progress of each intervention is monitored as laid out in the prior stages Program level Module Intervention Activity

7 Preparing for the new funding model

NovemberDecemberJanuaryFebruaryMarch Concept note submissiondates announced Regional applications initialguidance* 3 December Replenishment Conference 4-7 March 31 st Board Meeting Confirms country bands Approves allocation to bands Approves strategic initiatives and Secretariat budget Approves Comprehensive Funding Policy adjustments Standard concept notes +guidance * * These dates reflect availability in English. Translations into French, Spanish and Russian will take a further 3-4 weeks. Eligibility List for 2014* Resource book for externalstakeholders* Non-standard concept notes +guidance* 4-6 February 10 th SIIC Meeting Recommends: Country bands Allocation to bands Strategic initiatives (including regional proposals) Expected Timeline to New Funding Model Roll-Out Last updated: Secretariat activities Key events January 10 th FOPC Meeting Recommends: Comprehensive Funding Policy adjustments Funding allocation envelope Secretariat budget Allocation letters sent tocountries PR Capacity Assessmenttool goes live Grant Management Portalgoes live

9 How long will it take to access funds? The average timing will be around 10 months from country dialogue to grant dispersements. Depending on how prepared a country is, it could take as little as 6 months or as long as 16 months to access funds. Working ahead on a strong National Strategic Plan or investment case is the best way to speed up the process. 1

Partnership Call 27 November 2013 Submission dates JanFebMarAprMayJunJulAugSepOctNovDec JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDec TRP # Submission deadline on 15 th of the month TRP review meeting (approx.) TRP Submission deadline for EoI (regionals only) EoI

11 Timings: work backwards

12 National strategic plans (NSPs): The basis for Global Fund funding 2 National strategic plan* Robust NSP* NSP Assessment Concept Note with prioritized programmatic gaps Before assessment Epi analysis & program review Grant funds may be reprogrammed to support NSP development, especially data strengthening. * or investment case

13 Health System Strengthening

14 Objectives of the Global Fund’s HSS investments Objectives:  Building system’s capacity to scale-up services and improve their quality, equity and sustainability, particularly in hard-to-reach areas;  Strengthening performance of priority health system components;  Fostering synergies between multiple disease programs and promoting integrated approach to planning and programming multiple disease programs;  Maximizing the impact of the Global Fund’s investments beyond the three diseases, particularly for health improvements of mothers and children;  Supporting community and civil society actors enhance their engagement and contributions to the health system;  Ensuring that human rights and gender-related issues are adequately addressed. Support that contributes to strengthening performance of a health system function or a component, have direct linkage to improving HIV, TB or malaria outcomes, and benefit more than one disease programs (including HIV, TB, malaria and beyond)

15 Options for Requesting HSS Support under NFM 1.Developing Concept Notes for eligible diseases without cross-cutting HSS (HSS formerly known as disease-specific HSS is still allowed) 2.Including HSS module(s) under one or more disease Concept Notes 3.Developing a separate HSS Concept Note for a stand-alone HSS grant 4.Developing a consolidated Concept Note by including eligible diseases and HSS under one funding request

16 Your questions...

17 How long will it take to access funds? 2 months1 month1.5 months* Country can move more rapidly because it has: Up-to-date and costed national strategic plan or investment case with agreed priorities CCM is able to rapidly coordinate stakeholders PRs are well performing 2 months1 month 2 months* 3 months1 month3 months* NSP development 8 months 6 months 10 months 16 months 4 months Concept note writing TRP and GAC review Grant making Time from dialogue to 1 st disbursement Pre-CN development country dialogue From Board approval to 1 st disbursement 1 month Country may need moderate amount of time to: Conduct country dialogue to agree on priorities and consult stakeholders But has well performing CCM and PRs Country may need significant time to: Develop clear strategy or viable extension plan through grant period Strengthen capacity for PR Reach agreement with the CCM 1 month Accelerated Average Long 1 Note: TRP reviews will be scheduled to accommodate the most programs. If there is no TRP scheduled in the month the Concept Note is submitted, the “TRP and GAC review” stage may take longer, up to 3 months * This is the anticipated average scenario – it may take longer in some countries.

18 Minimum Standards for PRs PR demonstrates effective management structures and planning PR has the capacity & systems for effective management & oversight of SRs Data-collection capacity and tools are in place to monitor program performance Functional routine reporting system with reasonable coverage to report program performance CCM actively oversees the implementation of the grant, & intervenes where appropriate 12 No conflict-of-interest for the selection of the PR(s) & SRs Program implementation plan provided in the funding request is sound 3 4 Internal control system of PR is effective to prevent & detect misuse or fraud The financial management system of the PR is effective & accurate 56 Central & regional warehousing have capacity, & aligned with good storage practices Distribution systems & transportation arrangements are efficient to ensure secure and continued supply * Please refer to Appendix 4 of the Transition Manual for full text and descriptions of the Global Fund’s Minimum Standards for Implementers Implementers have capacity to comply with quality requirements & monitor product quality throughout the in- country supply chain 5 The Global Fund will now expect grant implementers to meet 12 minimum standards