1. Capacity Assessment of Implementers LFA PSM expert workshop 28 - 30January 2014

2. What are the objectives of this session? What is the Capacity Assessment of implementers? Explain why and how the approach has changed and the differences with the old tools/processes Inform you about new tool to assess capacity of implementers What is LFA role in the implementer capacity assessment process? Inform you about the role of the LFA in the process of assessing capacity of implementers Key questions Objectives

3. What is the Capacity Assessment of implementers? Capacity Assessment is the assessment of the implementing entity’s systems and capacities against a set of requirements necessary to assume financial and programmatic accountability of a Global Fund supported program in a given context. Capacity Assessment is a pre-requisite for entering into a grant agreement with a nominated entity.

4. Country Team led process – tailored to the context, role of the implementer, scope and scale of the program, past experience, available partner reports, past assessments Streamlined tool combining number of assessment reports/tools and plans – comprehensive source of information involving multiple actors Linked to the risk assessment processes of the Global Fund 1 2 3 4 Shifting from a compliance-based to a risk-based approach – assessment not limited to PR only – focus on key implementers Why and how is the process changing?

5. CAT consolidates the following tools and reports Repeat and New PR Assessment Reports PR Background Analysis 5 LFA Assessment Tools: PHPM Assessment Tool, SR Management Assessment Tool, Program Management Capacity Assessment Tool, Financial Management Assessment Tool, M&E Checklist PSM Plan (narrative) PSM Country Profile M&E Plan M&E Country Profile Data Quality Assessment Tool

6. When is Capacity Assessment conducted? As soon as the PR is nominated by the CCM - prior to submitting a Concept Note or after the CN submission; and As soon as the implementation arrangement map is completed, and the Country Teams decide which implementers need to be assessed

7. Objectives of the Capacity Assessment 1. Identify implementers that pose risks to the program due to their programmatic and fiduciary importance (Impl. Arrangement map) 3. Inform decision about the nominated implementer and determine measures to address capacity gaps and risks to ensure effective program implementation

8. Implementation Arrangements mapping 8 PR ?? ???? SR? ???? PR SR SSR Pre-submission CDCN submissionPost Grant signing Identify key entities and flow of funds: Entities roles and proportion of the grant value they are managing Identify potential risk factors: PRs / SRs handling large amount of funds Procurement & supply chain arrangements Interactions between grants External entities that influence implementation Prioritize risk through capacity assessment: Decide who needs to be assessed based on their financial and programmatic role Mapping is an iterative process showing what is known and unknown at a point of time 1 2 1 3 Important Note: Implementation arrangement map is mandatory for all new grants

9. M&E Assessment Finance Assessment PSM Assessment Governance and Program Management (including Sub-recipient management) Country Team tailors the information needs based on the context Implementer inputs information on their systems and management processes, as determined by the CT LFA verifies information submitted by the key implementers, as requested by the CT 1. Final conclusion/final rating on each section in each functional assessment area: No issues Minor issues Major issues Unknown Not applicable 2. Decision on the nominated implementer 3. Action Plan – includes measures to address capacity gaps and risks 4 assessment areas to assess 3 actors involved in the process Outputs of the assessment Assess capacity of implementers 8 2 Country Teams tailor the scope and depth of the assessment, shifting from a compliance-based approach to a risk-based approach

10. Measures to address capacity gaps and risks 3 Suggest TA provision Request CCM to nominate new PR/SR Suggest contracting of implementation support Could not be mitigated in the short term Issues Identified during assessment process Major issues: Corruption risk System weaknesses Poor past performance Minor issues: Technical weaknesses but fair past performance or strong governance Could be mitigated in the short term Could not be mitigated in the short term Could be mitigated in the short term

11. Overview of the Capacity Assessment Process Define implementers to be assessed Tailor Capacity Assessm ent Mitigating actions and oversight plan Finalize the Capacity Assessment Grant Making Country Team Complete relevant sections, as requested by CT Verify info as requested by CT, propose mitigating measures Concept Note Implementer LFA Concept Note Follow-up on mitigating measures, as requested by CT

12. Tailoring of the capacity assessment 12 Implementer needs to provide information on and LFA verify only these sections CT finalizes the rating after receiving implementer/LFA input and finalizes an action plan with mitigating/capacity building measures Factors to be considered during tailoring: -New/repeat implementer; -Role of the implementer in the program; -Scope and scale of the program; -Past assessment reports; -Recent partner/donor reports.

13. Inter-action between various actors No Issues Minor Issues Major Issues Unknown Not applicable 1 Section 1: Product SelectionNo Issues Section 2: Forecasting/quantification Minor Issues Section3: Procurement Major Issues Section 4: Storage Minor Issues Section 5: DistributionNo Issues CAT Dashboard per area 2 13 Action Plan 1.Suggested action 2.Responsible actor 3.Start/end date 4.Estimated cost and source of funding

14. Health Products Management

15. Key PSM Documents Before: PSM plan including ( attachment 1a & 1b) PSM plan including ( attachment 1a & 1b) Country Profile + Procurement Plan + Action plan Country Profile + Procurement Plan + Action plan Option 1Option 2 AND LFA ASSESSMENT

16. Key PSM Documents under NFM Modular Tool: List of Health Products to be procured with grant resources including quantities and unit costs. It replaces the previous procurement plan & annexes of the PSM plan Modular Tool: List of Health Products to be procured with grant resources including quantities and unit costs. It replaces the previous procurement plan & annexes of the PSM plan Capacity Assessment Tool: Provides Information on the implementation arrangements and the Systems & Structures that will be used for managing the health products under the grant It replaces The PSM plan (Descriptive component), Country profile, Action plan and LFA assessment AND

17. Key PSM Documents

18. Capacity Assessment Tool Key implementers: Key technical PSM areas to assess remain the same. Very limited new questions (Country Profile & PSM plan) Tailored approach

19. LFA assessment Verify information submitted by the key implementers To provide an analysis on the key risks and recommendations to the Secretariat to ensure there is adequate capacity to select, procure, store and distribute health products in line with Global Fund PSM policies

20. Global Fund’s PSM Principles  Procure quality assured products  in a transparent and competitive manner  In the most adequate form to support adherence (fixed dose combinations, children forms)  At the lowest possible price  In adherence to applicable National Laws and international agreements  Supply Systems: capacity to ensure an uninterrupted supply of health products while minimizing risk of wastage and diversion General principles while executing procurement: o Best value for money o Fairness, Integrity, Transparency o Effective competition

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