1. Global Fund Assessments Part II: Understanding Assessment Results Geneva – December 2005

2. 1 Reminder: Purpose of LFA Assessments The aim is to maximize speed to implementation and efficient and effective use of funds. Accordingly, the Global Fund together with assistance from all actors must: 1.determine if the nominated Principal Recipient’s existing systems and capacities are sufficient to implement successfully the approved proposal; and 2. identify critical capacity gaps (if any) that need to be addressed in the short- and/or long-term. It is important to remember that what is being assessed is the capacity of the nominated PR to implement successfully the program described in the proposal. Approval of the proposal by the Board is approval of the technical merit of the proposal (based on the TRP’s recommendation) and is not approval of the PR, implementation arrangements etc.

3. 2 Key Elements of Assessments Overall Assessment Conclusion (A1, A2, B1, B2, C1, C2) Ratings in each functional area Identification of: (i) critical capacity gaps in each functional area (i) lack of critical information or implementation plans Recommendations for addressing critical gaps (capacity, information, planning etc.)

4. 3 Translating assessment results into better implementation arrangements Most PRs are assessed in the “B” category (even an “A” rating for overall capacity may have a “B” rating in one functional area) The question is how and when to address the capacity issues identified How? –LFA makes recommendation –PR has self-assessed and has plans and suggestions –CCM involvement –Partners offer assistance → Collaborative process When? –A “B1” rating generally suggest that capacity issues can be addressed concurrently with implementation –A “B2” rating generally suggests that capacity issues need to be addressed before implementation begins (if they are not addressed in time, another entity may need to be brought in as an additional or replacement PR) → Aim is to ensure that PR can move to effective program implementation as soon as possible

5. 4 Common capacity gaps Program Management: Lack of structure and clear lines of responsibility and terms of reference for key positions Lack of qualified staff and lack of training Lack of systems for assessing, selecting, managing and monitoring Sub-recipients Financial Management and Systems: Lack of qualified staff and lack of training Lack of systems for monitoring financial reporting of Sub-recipients Monitoring and Evaluation: Lack of qualified staff and lack of training Lack of systems for monitoring programmatic reporting of Sub-recipients M&E plan is unworkable in context No systems for verifying results Procurement and Supply Management Systems: Lack of qualified staff and lack of training In case of government PRs, over-cumbersome and slow procedures Weak capacity for forecasting and quantification

6. 5 Other Common Weaknesses No M&E Plan No PSM Plan Unclear funding streams (Global Fund and other donors) Inconsistencies between workplan, budget, M&E Plan, PSM Plan etc.

7. 6 Technical Assistance Areas where partner support and technical assistance can be critical to successful future implementation: Good advance planning, including workable M&E and procurement plans Systems in place to manage sub-recipients and ensure correct and complete reporting (including by ensuring rapid progress to signing agreements between PR and each SR) Identifying problems early on and seeking assistance Good communication with the FPM, including alerting the FPM early on if problems are identified

8. 7 What is a Condition Precedent? Two key considerations: –The primary aim of the Global Fund is to make sure that grant funds reach the people who need them most as efficiently as possible. –The Global Fund’s guiding principle is that funding is conditional upon evidence of performance. If the Global Fund has identified capacity weaknesses of the PR, then there is a risk that the PR will not be able to implement the program and that: –Grant funds will not reach the target beneficiaries –There is no way for the Global Fund to assess performance Conditions precedent to disbursement are a way of managing that risk and keeping the PR focused on building capacity and improving program management.

9. 8 The Proposal The proposal is developed by the country’s CCM and represents the CCM’s commitment as to goals, activities and targets for the program. The Global Fund Board makes a decision to grant funds on the basis of the goals, activities and targets set out in the proposal and on the basis of the TRP’s recommendation to the Board that the proposal has technical merit. The proposal is therefore the starting point for negotiations of the program documents, including the workplan, budget and attachment. Note that the TRP may require that the CCM provide clarification for certain aspects of the proposal and that, if acceptable to the TRP, such clarifications will amend the proposal.

10. 9 Consistency General Principle: The program documents must be consistent with the proposal (as may have been adjusted during the TRP clarification process). Exceptions: In some cases, the PR may request deviations from the proposal. This is a re-programming. –Minor deviations from the proposal are usually permitted, provided that the PR provides written justification that is acceptable to the Global Fund. –Major deviations from the proposal require more in-depth analysis. The re- programming policy and procedure must be followed.

11. 10 Material Re-programming What is material re-programming? A change which is so substantial that it questions whether the TRP would have approved the proposal as revised. Examples: substantial changes in targets, dropping or adding an activity (depending on the scale), introducing a new medical intervention (normally not dependent on scale).

12. 11 Material Re-programming Procedure The CCM and PR must provide a written justification for the change, explaining the technical reasons that justify or necessitate the change (including supporting evidence e.g. recent survey results). The CCM and PR must also provide revised program documents (workplan, budget, attachment) highlighting the changes. If the change would result in a saving, then the CCM must also explain how such savings will be used (e.g. target for people treated with ARVs is reduced – how will the savings from reduced procurement be used?)

13. 12 Material Re-programming Procedure (Cont.) The Global Fund will determine, on the basis of the documents provided by the CCM and PR, whether the changes requested are acceptable. The LFA will provide support to the Global Fund. The TRP will review the technical merit of the proposed changes.