05 Grant Implementation · Selection and Contracting II. Grant Negotiation and First Disbursement...
Transcript of 05 Grant Implementation · Selection and Contracting II. Grant Negotiation and First Disbursement...
Grant Implementation
STOP TB workshop
Workshop on Grant Negotiation and Implementation of TB grants, Anglo/Lusophone Africa
11-14 December 2007, Geneva
OUTLINE
1 - The grant cycle revisited: Grant Agreement Overview, Conditions Precedent
2 - Progress reporting and disbursement requests
3 - Annual review
4 - Annual audit
Grant process
key dates
Proposals Submitted
1.3 Screening
Eligible Proposals Selected
1.4
TRP Review
TRP Recommend
ations
TRP Chair/Vice Chair Sign-off (Final Board Approval)
1.5
Board Approval
1.6
TRP Clarification
(as required)
Call for Proposals
1.1 Future Round Planning
1.2 Guidelines for Proposal Refinement &
Call for Proposals
Board Approval
I. Proposals Management
Board
Approval
Grant
Start
Grant Renewal
(2 years)
Grant End
(5 years)
The Global Fund grant process
Grant
Signing
2.1 CCM Confirmation
of PR Nomination
PR Nomination Confirmed
Grant Signing & First Disbursement
2.2 LFA Selection
and Contracting
II. Grant Negotiation and First Disbursement
Grant Negotiations
2.4 Review of Budgets, Workplan,
and Indicators
2.5 Negotiation
(including conditions precedent)
2.6 First Disbursement
Preparation
LFA Contracted
2.3 PR Assessments
18 months since first disbursement
3.3 Phase 2 Grant
Renewal Process
Updated Grant
Agreement
3.5 LFA Management
Phase 2 Go/No Go Decision
3.4 Grant Extension
3.6 Grant Support
Performance-based Funding
3.1 Ongoing Reviews &
Disbursements
3.2 Grant Revisions
III. Performance-Based Funding and Grant Support
Performance-based Funding
3.1 Ongoing Reviews &
Disbursements
3.2 Grant Revisions
End of Phase 2 Support
ARCH/300704/3
Grant Agreement
• Grant Agreement: negotiated and signed for initial two years, with a scope of extending it to max. 5 years (i.e. Phase 1 and Phase 2 of the Grant).
• Grant Agreement, like other contractual agreements, provides legal basis for disbursing GF funds at agreed intervals and against proven performance;
• Grant Agreement has terms and conditions, applicable in any country where Global Fund support programmes to fight HIV, TB and Malaria, Conditions Precedent (CP) to disbursing funds, and any other special conditions depending on the country and implementation context;
Grant Agreement cont/d…
• Grant Agreement consists of Face Sheet (portrait of the Grant “at a glance”) with signatures of PR, CCM and Civil Society representatives
• Standard Terms and Conditions (applicable to all grants)
• Annex A - country and programme specific arrangements, and includes reporting timelines, CP and special conditions
• Performance framework (Previously called Attachment 1,2,3,4 and 5 to Grant Agreement) – parameters for disbursement decisions (targets vs. results)
• NEW! Annex B, which is the summary budget per expenditure category, program activity (objective/SDA) and implementing entity
Standard Terms and Conditions
Duties of the Principal Recipient:
� Prudent management of grant funds
� Management of Sub-Recipients
� Keep financial records for audit purposes
� Monitoring and Evaluation (M&E)
� Procurement policies
Grant Agreement, once signed by all parties, is posted and available on the Global Fund website under that country profile.Every manager involved in grant implementation should keep his/her own copy for reference and action.
Performance Based Funding
• Forms the basis for the entire Global Fund
grant management system
• Therefore if you want your grant funds to flow
smoothly, you need to implement
performance-based management systems &
procedures on the ground
• AND, because systems/procedures on the
ground are performance-based, you should
also find that you are able to perform better!
The PR representative from Western Cape
Province, South Africa, early October 2007
3.1 Performance-based Funding and Grant
Support
• The PBF Framework was developed to:
– Monitor and track grant progress and performance
– Link disbursements to achievement of targets
– Provide incentives for grantees/countries to focus on results and timely implementation
– Identify opportunities early in the grant lifecycle and expand efforts and address implementation issues
– Provide a tool for the CCM oversight and monitoring purposes
– Free up committed resources from non-performing grants for re-allocation to programs where results can be achieved
Grant Agreement
GRANT AGREEMENT ALLOWS THE GLOBAL
FUND TO:
�Stop disbursing funds due to lack of
performance (programmatic, financial) even
before the Phase 2 review
�Suspend or terminate the agreement due to
various other breaches, including the
mismanagement of funds (f. ex. no reporting,
non-transparent procurement practices, fraud,
etc.)
Conditions Precedent and Special
Conditions
“CP” = conditions precedent
�A condition which must be fulfilled before something else can occur, usually a disbursement
� “Special Condition” is a condition particular to the programme or PR in addition to those in the Standard Terms and Conditions
(“Until we fulfilled those CPs imposed on our grant, it took us so much time and energy that we ended up with lame walking!”, said a MoH Senior Official from one of the countries present at this workshop)
Conditions Precedent
• So, why are the CPs “imposed” on the PR/country, or
why are they necessary?
• And how are they fulfilled?
CPs address common capacity gaps to implement the
programme – NB! considering the increased volume of
funding (i.e. additional, from the Global Fund). The
implementation capacity gaps are typically established
during the assessment of the PR implementation
arrangements (so called LFA Assessment) and also
during the grant negotiation.
“CP” – Common capacity gaps
Program Management• Qualified staff and training
• Structure and clear lines of responsibility
(organigram)
• Systems for assessing, selecting and
monitoring sub-recipients
Financial Management and Systems• Qualified staff and training
• Systems for monitoring the financial
reporting of the PR and of Sub-Recipients
M&E• Qualified staff and training
• Systems for monitoring programmatic
reporting of SRs
• M&E plan that is not implemented
• Systems for verifying results and data
quality
Procurement and Supply
Management
• Over-cumbersome and slow
procedures
• Forecasting and quantification
• Storage capacity or distribution
systems
• Qualified staff and training
Other types
• Insufficient coordination between the
TB and STI directorate within the
MoH on HIV/TB related activities
• Etc.
“CP” – how are they fulfilled?
• CP either link to disbursement (by 2nd disbursement, PR shall provide evidence of…. for approval by the Global Fund) or they block the activity (procurement of health products)
Good News:
• Once the progress is reported (either attached to disbursement or separately) and there is evidence that the CP is fulfilled, the funding can flow again. LFA recommends lifting, Global Fund substantiates decision.
• If a CP is negatively impacting on the overall program, the PR may request a waiver, temporary or otherwise.
• The CCM and PR have opportunity to argue against a particular CP prior to signing the Grant Agreement!
Bad News:
• Once the CP are fulfilled, there is no time for complacency, and vigilance remains.
• Old, or new CP can be re-introduced at any point of time in the grant life cycle if any of the implementation aspects deteriorate, where the PR will be tasked to address the issues through a formal introduction of CP by means of Implementation Letters amending the Grant Agreement.
Reporting – Background
� PR will submit a DR/PU normally on a quarterly or semi-
annual basis
� The frequency is agreed during initial grant negotiations
and can change during implementation
� The frequency is influenced by:
– Country characteristics
– Grant characteristics
– Partner involvement and grant harmonization
� Funding is provided in advance for the next reporting
period plus a buffer of 1 quarter
Disbursement Request and Progress Update (DR/PU)
Reporting - Progress Updates/
Disbursement Requests
• It is through reporting on progress against
agreed targets, and the grant funds spent to
achieve those targets, that the disbursements
are effected to finance the country program;
• The reporting format used by the Principal Recipient to
report on grant achievements is called Progress
Update/ Disbursement Request (PU/DR);
• The PU/DR “mirrors” the performance framework for the Grant
Agreement in programmatic section, with results and comments
columns added to track performance and/or explain variations.
Grant
start
date
S1
1 year
45 days45 days 45 days
1st DR/PU:
funds
needed
for Q1 - 3
S2 S3
Grant
end
date
S4
2nd DR/PU:
funds
needed
for Q3 - 5
3rd DR/PU:
funds
needed
for Q5 - 7
4th DR/PU:
funds
needed
for Q7 - 8
DR/PU Request Summary: periods covered
Reporting - semi-annual basis
Annual reports
� Annual reports are required as part of programmatic
progress reports (Art 15 b.ii of grant agreement)
� Contain aggregated information on grant progress
Audits: GF Requirements
� SWAps – single audit acceptable but GF funded expenditures should be
clearly identifiable
� UNDP as PR –
• Annual financial statements certified by comptroller
• Biennial financial statements externally audited
� UNDP as PR in additional safeguards country – general rule applies
� GF funding forms a substantial proportion of PR’s source of funding – PR
audit acceptable
General rule: need for annual audit of program financial statementsGeneral rule: need for annual audit of program financial statements
Program financial statement sources and uses of funds statementProgram financial statement sources and uses of funds statement
Note following special situations:
Audits - When due
General rule: coincides with the PR’s fiscal year and not
anniversary of the grant start date. Audit report due within six
months of end of fiscal year. Note:
General rule: coincides with the PR’s fiscal year and not
anniversary of the grant start date. Audit report due within six
months of end of fiscal year. Note:
M6 M12 M18 M24
PR’s Fiscal Year 1
When program starts
before M6, audit is due
by M18
When program starts
after M6, audit is due
after M18
audited accounts may not be available
at the time of Phase 2 renewal
review
audited accounts may not be available
at the time of Phase 2 renewal
review
Audits: Responsibilities
Responsibilities of PR, LFA and FPMs
PRPR
• Engages the services of
the auditor
• Develops audit plan for
SR
• Facilitates performance
of audit
• Submits audit reports
• Responds to and
implements
recommendations
• Engages the services of
the auditor
• Develops audit plan for
SR
• Facilitates performance
of audit
• Submits audit reports
• Responds to and
implements
recommendations
1
LFA LFA
• Reviews acceptability of
auditor, ToR and SR’s
audit plan
• Reviews audit reports
and advises GF
• Reviews PR’s
implementation of audit
recommendations
• Reviews acceptability of
auditor, ToR and SR’s
audit plan
• Reviews audit reports
and advises GF
• Reviews PR’s
implementation of audit
recommendations
2FPMFPM
3
• Decides on the
acceptability of the
auditor, ToR and SR
audit plan
• Decides on appropriate
remedial actions in
response to audit
findings and
recommendation
• Decides on the
acceptability of the
auditor, ToR and SR
audit plan
• Decides on appropriate
remedial actions in
response to audit
findings and
recommendation