Capacity Development and Transition UNDP Global Fund Partnership 26 May 2013

An Approach for Capacity Development & Transition 1. Existing Systems Roles, Manuals, Procedures 2. Review of SRs national systems Institutional arrangements reviewed; SR systems reviewed & designed where needed; Roles & responsibilities clarified; Manuals & SOPs / Templates revised; Software; Policy / Strategy review 3. Pilot Systems Up date and put in place legal frameworks; Strengthen national SRs programming and M&E; Introduce SR management pilots; Introduce new or revised SR systems; Scale up pilot; Revise Policy / Strategy; 4. Transfer to National Systems On achievement of milestones. Transfer to National Systems. Oversight and quality assurance of systems in place and operational.

New Global Fund Model - Opportunities Performance-based funding - to obtain / access Global Fund (and other donors) Demonstrate effectiveness and value for money Demand driven Progress towards impact Good quality Policy & National Strategies (HIV Malaria & TB) Support to invest in National Strategies Country Dialogue between implementers (GO & NGO) Allocation formula; country’s share in the global disease burden and Gross National Income (GNI) per capita. Prepare quality Concept Note http://www.theglobalfund.org/en/activities/fundingmodel/

Capacity Development / Transition Principles Continuous Provision of Services to Vulnerable Groups To develop sustainable capacity of National Entities – Government and Non Government To reduce transaction costs Maximize Performance Management Minimize Fiduciary Risk Clear Plan of Action Transition Milestones Systems and procedures in place Systems allowing main functions to be carried out with acceptable levels of compliance Capacity Development Indicators Systems in place and the degree to which they are being used

Institutional Framework Functional Analysis of PR & SR roles; Programming / Work Planning / Budgeting / SR Management Financial Management / Accounting / Risk / Oversight Forecasting / Procurement/Quality Assurance/Supply Chain M&E / Reporting / Analysis / Decision making Clarify Roles and Responsibilities of PRs & SRs Decide on management structures for PRs (PIU etc) Develop Organograms for PR & SR role New / Revised ToRs for PR & SR role Strengthen Oversight & Accountability- CCM, Audit

Functional Capacities Programming Decision Making Procedures Leadership HRM Sub-recipient Management Selection & Oversight Build Capacity Financial Management Asset Management Budget Management Internal Control Accounting Procurement of; Drugs; Goods; Supplies; Expertise Technical Specifications Procurement Planning Policies and Procedures Value for Money Supply Chain Management Storage /Security Quality Assurance Logistics Monitoring & Evaluation Managing Information Informed Decisions Analysis Data quality National Strategic Plan New Funding Model Country Dialogue Concept Note

Programming Capacities Capacity areas / actions; Alignment e.g. between Grants / NFM & National Strategies Operations manual with Functions / SOPs / Procedures / Guidelines/ Templates adapted for each PR / SR Merit based recruitment of human resources to manage PR /SR Integrated Work Planning for PRs / SRs / SSRs Further strengthen coordination at all levels Submissions to the Global Fund and other donors. Communicate Results and Lessons Learned

Sub-Recipient Management SR management is a new role for new PRs Capacity areas / actions; Establish Systems for SR Management including; SR assessment Selection of SRs Contracting SRs Managing performance of SRs Risk Management of SRs SR capacity assessment capacity development plans SR Monitoring and Evaluation Pilot with new SRs then scale up?

Financial Management (1) Transition – will result in increase in volume of funds managed by national entities Need to meet national requirements, international standards & Global Fund requirements. PRs will be responsible for oversight and accountability of SRs. Sustainable financing to help meet funding shortfalls Capacity areas / actions to strengthen Financial Management of PRs Review and revise Financial Manuals for Prospective PRs and SRs System for joint Budgeting for PRs, including for budget planning, reviewing, monitoring analyzing variances and reporting Accounting system – Review and upgrade and roll out accounting software for PRs and ensure that SR systems are compatible e.g. consolidate reports are possible

Financial Management (2) Internal Audit – Strengthen audit & management follow up Disbursements – PRs develop cash forecast; information; introduce system to track SR disbursements Treasury systems – PR to ensure SRs; separate bank account; petty cash management; monthly bank reconciliations; payment vouchers Reporting – PR and SRs financial reporting in line with GF requirements; Service Delivery Areas (SDAs); program cost categories; and implementers) Purchasing system – PR introduce purchase order system; strengthen contract management Asset Management – PR to check that SR have system to protect assets & manage inventory Tax exemption – For PRs

Procurement Procurement capacity areas and actions: Procurement of pharmaceuticals e.g. ARVs & meeting international standards is critical for grant performance and will require a number of decisions and activities. Procurement department in PR, needs to become fully operational. National procurement policies reviewed against international standards and Global Fund requirements Technical support needed, decisions on procurement management Review Quality Assurance systems for pharmaceutical products Review forecasting system including consumption & quality control Decisions on product selection & alignment to Global Fund policy Strengthen National Drugs Registry Authority registry system Systems to produce prioritized and budgeted procurement planning How to produce technical specification and evaluation Procurement feasibility study could be considered Procurement and Supply Chain Management business plan needed

Supply Chain Management Supply chain management capacity areas and actions; Quality assurance control systems for random sampling and qualified testing, National laboratory certification and management Logistics MIS reviewed and revised to improve data flow, clarify roles, introduce stock cards, improve templates Health MIS to be reviewed and revised Review distribution schedule, ensure adequate transport Prioritize plan to improve national & sub-national storage Validation and management of buffer stocks Systems to manage expiry dates Enhance the management, sustainability and oversight. Sub-national control systems / Attract and retain Human resources / SOPs / training/ monitoring visits

Monitoring & Evaluation Clarify roles and responsibilities for M&E Strengthen data collection and quality Integrated management and access of M&E systems Strengthening analysis and informed decision making by PRs and key stakeholders M&E linkages to Programming, SR Management, budget allocations and forecasting Identify case studies to demonstrate and communicate results Capacity areas and actions; Revise / Prepare M&E manual PR, National Centers & SRs Improve quality and timeliness of data collection at sub-national and national level Review existing databases to improve access and linkages with open-source software Increase access and use of analytical software Management reports to improve decision making

Human Resource Management - Incentives Capacity areas and actions; Functional Analysis of PR(s) and SRs identifies national structures Clarify Roles and responsibilities for PR and SR structures Revise Organogram to reflect PR functions and roles Consider how Global Fund positions integrated into national entity PRs merit based recruitment with adequate oversight Consider staff survey on retention and motivation of staff Review and strengthen Financial and Non-Financial Incentives Staff development plan Professionalization for Grant Functions e.g. Accountancy qualifications Leadership and management development Peer to Peer learning Coordinated training plans

National Strategy / Policy / Legal Framework Enabling Environment Enabling Environment capacity areas and actions Align CD & Transition actions with National Strategy Review national strategies; Identify gaps Action plan to implement nation strategies Harmonise / update Legal Framework Meeting international standards & WHO guidelines Mainstream Human Rights approaches

Capacity & Transition - Success Factors Ownership & Leadership– participation by PRs & stakeholders Global Fund requirements - Capacity actions and transition milestones Attracting & Retaining Human Resources Oversight & Accountability – Mechanisms and risk mitigation Institutional Framework - Clear roles and responsibilities PR Operational Manuals – SOPs, procedures guidelines templates, with roll out and training Mobilizing funding to support strengthening systems Momentum - realistic, quick results, priorities & milestones Sustainability – costing exercise for programs Coordination – CCM stakeholder engagement, link to health system reforms, donor coordination

CD & Transition Management Considerations CD / Transition Plans allow UNDP, Global Fund & Development Partners to provide and coordinate support & increase performance Correct and realistic timing and ownership Focus on strengthening national systems Programming; SR Management; FM; PSM; & M&E CD is a significant contribution to risk mitigation CD needs to have a grant performance indicator Country context determines when & how Transition can take place e.g. ASP / Risk / Sanctions Transition Milestones for putting systems in place

Capacity Development Toolkit: To support national entities in implementation of national responses to HIV and AIDS, TB and Malaria http://undp-globalfund-capacitydevelopment.org/