1. Stop TB Workshop, Geneva 15-18 May 2006 Stop TB Workshop Proposal preparation Information for the Global Fund's Round 6 Call for Proposals Unit 7 – Program Activities: The Budget & Work Plan Geneva, 16 May 2006

2. Stop TB Workshop, Geneva 15-18 May 2006 Presentation outline – 5 topics 1. Inter-Relationship of Budget & Work Plan (a)Round 6 – emphasis on robust gap analysis: section 4.5 (b)Effectively documenting a strategy: section 4.6.6 (c)Tools for Round 6 usage (d)Importance of effective gap analysis 2. Evolution from proposal to Grant amount 3. Health Systems Strengthening (HSS) (a)Round 6 within a disease component (b)Impact of cross-cutting HSS activities on budgets ? 4. Common funding mechanisms 5. Proposal Form – Budget requirements

3. Stop TB Workshop, Geneva 15-18 May 2006 1(a). Gap Analysis: Key concept for strong proposals Global Fund support meets demonstrated gaps (Section 4.5) A logical, systematic approach is required to determine: 1 st What is the programmatic gap to be filled? 2 nd What financial resources are already available? - non Global Fund sources + - Global Fund sources 3 rd Then identify the financial gap – Table 4.5.1-3

4. Stop TB Workshop, Geneva 15-18 May 2006 1(b). Work Plan Requirements – Yr 1 & 2 Section 4.6 Component Strategy Identifies that Work plans must be: Highly detailed for Yr 1, divided into quarters and Indicative for Yr 2 (and fully in line with the 2 Yr budget) Structured in line with the overall strategy –(i.e., the same goals, Objectives, SDAs, activities) Fully consistent with the "Targets & Indicators Table

5. Stop TB Workshop, Geneva 15-18 May 2006 1(c). Gap Analysis – Tools for Applicants One size clearly doesn't fit all 1.Country circumstances will determine "gaps" 2.CCMs determine priorities However, some tools include: Multi-agency M+E Toolkit – January 2006 HSS "Health Metrics Network" for M+E & HIS gaps Proposal Form & Guidelines themselves FAQ on Global Fund Website (see "Tools" Q&A # 100)

6. Stop TB Workshop, Geneva 15-18 May 2006 1(d). Why effective gap analysis matters ? From earlier rounds, the TRP has noted all too frequently: An absence of highly detailed budgets for Yr 1 & 2 (including all relevant assumptions, units and unit costs) Inconsistencies between the Work Plan & component strategy – Goals, Objectives, SDAs and activities. Budgets are not linked to the Yr 1 and 2 Work Plans (although precise formats for the Budget & Work plan are not mandated – countries to follow existing systems where present) From the Round 6 Guidelines for Proposals (Part 2, p.1) Proposals that do not have detailed budgets and work plans that support the proposed interventions from a programmatic and financial feasibility perspective are very difficult to review and recommend for funding.

7. Stop TB Workshop, Geneva 15-18 May 2006 2. Evolution from 'Proposal' to Grant Introduction Budget Section - basis for all financial Qs from GF Proposals disclose budgets for up to 5 years –Years 1 & 2 will form the Phase 1 (initial 2 year) grant –The full proposal budget will define the maximum Phase 2 amount Budgets are typically for 5 years –May be for less (e.g. 2, 3 or 4 years – depends on "gap") Budgets – per component 3 components in Round 6 = 3 x 2 year detailed budgets Also – 3 x Y3, Y4 & Y5 summary budgets based on key assumptions

8. Stop TB Workshop, Geneva 15-18 May 2006 Budget Request Grant Funds Hypothetical USD Example Proposal Budget – Years 1 & 2 $10 m TRP review Board conditional approval $10 m (Phase 1 ceiling) TRP adjustments - $1 m 2 nd Adjustment in grant negotiations - $0.5 m Signed grant $8.5 m for Years 1&2 2(a). Proposal Request Grant Amount Years 1 & 2 must have detailed budgets

9. Stop TB Workshop, Geneva 15-18 May 2006 2(b). Phase 1 Grant Year 5 Grant (Phase 2) Importantly Phase 2 is conditional on: Performance and Availability of funds Phase 2 may be reduced from possible maximum e.g. down to $18 m Budget for Years 3-5 are important. However, can be less detailed. Example (contd) Proposal Phase 2 amount Total original proposal amount for 5 years Less Adjusted in Phase 1 = Maximum for Full Proposal term Less Utilized in Phase 1 $21.5 m (Phase 2 ceiling) $28.5 m -$1.5 m $30 m -$7.0 m

10. Stop TB Workshop, Geneva 15-18 May 2006 2(c). General Guidance on some budget aspects Budget duration Up to a maximum of 5 years Shorter period where program duration is less GF allocates funds for first 2 years – Phase 1 Funding for "Phase 2" - subject to Performance and Resources Size of request No fixed upper limits Absorptive capacity an important factor TRP may view excessive requests negatively TRP also may view negatively small projects Budget currency Either US$ or only All figures in proposal must be same 1 currency Identify: – Exchange rates & source of rate – Proportion of budget in local currency – Assumptions related to inflation

11. Stop TB Workshop, Geneva 15-18 May 2006 3. Health Systems Strengthening (HSS) Overview for Round 6 Round 6 – No separate HSS component Applicants should integrate HSS within disease component(s) HSS activities should be: –Identified and costed (Guidelines provide example) –Linked to the disease component –Strengthening other pre-existing interventions HSS activities may be: –Disease specific (e.g. Malaria only) or –Straddling 2 or more components (e.g. HIV/AIDS and TB)

12. Stop TB Workshop, Geneva 15-18 May 2006 3(a). HSS: Cross-cutting activities in R6 Cross-cutting HSS – What is it? An HSS activity relevant to more than one disease component required in order to support each of the disease components. Example: Acquisition of microscopes for a lab that will jointly support TB and HIV components How to apply: Either all costs in one component (e.g. TB) or costs shared between benefiting components (e.g. TB and HIV) Challenge: What if one component is not approved?

13. Stop TB Workshop, Geneva 15-18 May 2006 3(b). HSS: Additional R6 Budget Information Needs If funding request includes cross-cutting HSS the applicant should complete the HSS Information Sheet This requires applicants to identify: Components which include cross-cutting HSS activities/budgets Value of cross-cutting HSS budgets (in US$ or Euro) Components that depend on cross-cutting HSS in another component. For all dependent components – disclose HSS activities/budget necessary if host component not approved

14. Stop TB Workshop, Geneva 15-18 May 2006 4. Common funding mechanisms GF supports funding through common funding mechanisms (CFMs), e.g. SWAp, pooled funding etc. In such cases budgets should be based on CFM Need to identify: –Budget attributed/allocated to GF sources –Incremental results attributed to GF sources Reporting/budgetary framework will inevitably reflect CFM.

15. Stop TB Workshop, Geneva 15-18 May 2006 5. Overview – Budgets & requirements "Cutting" the Budget 4 ways how & why? Key elements of detailed budgets Potential tools - if detailed budgets are not already available Planning for some of the key budget requirements

16. Stop TB Workshop, Geneva 15-18 May 2006 5.1 "Cutting" the budget 4 ways Budget Analysis & Summary Sections 5.1 to 5.6 Inclusive – to be provided within the Proposal Form Proposal Form – Required Outputs Table 5.6: By functional area Detailed budget & assumptions Section 5.2 – to be Provided in Excel Format as an Annex Table 5.1: By cost category Table 5.4: By SDA Table 5.5: By partner allocation Section 5 - Proposal Form identifies the minimum requirements

17. Stop TB Workshop, Geneva 15-18 May 2006 5.2 So, in greater detail… SectionBudget breakdownUnit 5.1: Component budget summary By cost category: Human resources, Infrastructure and equipment, Training, Commodities and products, Drugs, Planning and administration… $/ 5.4: Service delivery area By SDA: Should match the Targets and Indicators Table (Attachment A to Proposal Form) $/ 5.5: Implementing entities By partner allocation: Academic/educational, Government, Nongovernmental/community-based, Private sector, Religious/faith-based, multi-/bi-lateral development partners. % 5.6: Functional areas By 3 functional areas: Monitoring and evaluation/ Procurement and supply management/ Technical and management assistance. $/ + Detailed budget and work plan

18. Stop TB Workshop, Geneva 15-18 May 2006 5.3 Detailed budgets – key elements a) Structured along the same lines as component strategy reflecting the same goals, objectives, service delivery areas & activities. b) Highly detailed for Y1 & 2 (Phase 1 grant term) all key assumptions, e.g., details of all material unit items and unit costs consistent with assumptions & explanations elsewhere in Budget Section. c) Summarized budget information & assumptions for rest of proposal (typically Yrs 3 to 5, or "Phase 2") d) Fully accurate & integrated with the highly detailed Yr 1 W'Plan e) In full agreement with all summary budgets provided elsewhere Strong, accurate budgets should meet the following minimum criteria (section 5.2):

19. Stop TB Workshop, Geneva 15-18 May 2006 5.4 Budget Analysis - Tools for applicants Proposal Form requests various analyses of budget (e.g. by category, by recipient, by SDA etc.) Guidelines include a Template that may assist analysis Not a substitute for Detailed Component Budget… …but a possible linking tool Tool comes with instructions Attachment 5 to Guidelines: Budget Analysis Template

20. Stop TB Workshop, Geneva 15-18 May 2006 5.5 Budget Analysis - Worked Example Same $35,000. Merely different ways to cut the budget to help complete section 5

21. Stop TB Workshop, Geneva 15-18 May 2006 5.6 Budget Analysis - Worked Example detail Activities Sub-activities These should be linked to the Work Plan

22. Stop TB Workshop, Geneva 15-18 May 2006 Concluding comments Support CCM by providing the necessary: –Programmatic & technical skills for effective "gap analysis" –Budgeting skills to help smaller projects into the one proposal Recognize the need for budgets which are: –Highly detailed –Supported by all key assumptions (too much information is better than not enough) –Linked to a detailed work plan and performance measures Level of sophistication may vary depending on: –Size of funding request –Nature of interventions – e.g. Prevention/Treatment Build budgets from ground up (gap analysis): Activities SDAs Objectives GF Request

23. Stop TB Workshop, Geneva 15-18 May 2006 More information… Beyond today's presentation: 1.Please read the Proposal Form and Guidelines fully; 2.Consult the "FAQ" on the Global Fund website; 3.Consult other relevant tools and links on the Global Fund website. 4.Always liaise with a Coordinating Mechanism whenever one exists.

24. Stop TB Workshop, Geneva 15-18 May 2006 Questions?

25. Stop TB Workshop, Geneva 15-18 May 2006 Appendix

26. Stop TB Workshop, Geneva 15-18 May 2006 Component Budget – Section 5.1 The budget categories are defined in the Guidelines

27. Stop TB Workshop, Geneva 15-18 May 2006 Budget breakdown by SDA

28. Stop TB Workshop, Geneva 15-18 May 2006 Budget Analysis – Summary of key assumptions Example – Year 1

29. Stop TB Workshop, Geneva 15-18 May 2006 Budget Analysis – cost categories Example – Year 1

30. Stop TB Workshop, Geneva 15-18 May 2006 Budget Analysis – implementing agencies Example – Year 1

31. Stop TB Workshop, Geneva 15-18 May 2006 Budget Analysis – link to work plan Example – Year 1