Grant Lifecycle: Phase 1 - World Health Organization · Grant Lifecycle: Phase 1 ... develop and...

Grant Lifecycle: Phase 1

From Approved Proposal through to Phase 2 decision

(Overview of Requirements and Timelines)

Workshop on Grant Negotiation and Implementation of TB grants, Anglo/Lusophone Africa

11-14 December 2007, Geneva

Governance, Management, and M&E

• CCM – Country-level partnerships, multi-sectoral, develop and submit grant

proposals,

– monitor implementation and coordinate with other donors and domestic programs,

– NOT involved in daily management or disbursement of funds but provides GENERAL OVERSIGHT to the project

• TRP– An independent panel that reviews and recommends proposals

• PR – Local entity, nominated by the CCM and confirmed by the Fund to

be legally responsible for grant proceeds and implementation

• LFA – Independent entity hired by the Fund to assess the PR’s capacity to

administer funds and provide ongoing oversight and verification of reported data on financial and programmatic progress

Grant Lifecycle: From Approved Proposal

through to Phase 2

4. Phase 2

Renewal

•Procedures for

renewals

3. Performance-

based Funding

•Ongoing grant reviews

and disbursements

2. Grant

Negotiations

•LFA Assessments

•Grant negotiations

•Grant signature

•1st Disbursement

1. TRP

Clarifications

•Clarifications

Process

1. TRP Clarifications

After Board Approval, CCM has

�6 weeks to respond to first clarifications

�4 months to complete clarifications (Incl. 6 weeks)

� Should not normally exceed 3 iterations

� Deliverables: Timely response to all the TRP queries in the TRP Form

2.1 Grant Negotiations: LFA Assessments

The LFA Assesses whether the PR has the required

minimum capacities in the 4 functional areas, namely:

� Programmatic and Institutional Capacity (I&P)

� Financial Management and Systems (FMS)

� Procurement and Supply Management (PSM)

� Monitoring and Evaluation (M&E)


continue..

Deliverables for the LFA Assessments:

� CCM letter confirming the PR(s) nomination, and LFA access to the PR(s),

� previous assessments in any of the 4 areas

� Workplans and Budgets

� Performance Framework for Years 1 and 2 (Attachment 1&2)

� M&E Plan (National, Global Fund)

� PSM Plan (if applicable)

� Any other relevant documents

Guidance documents: http://www.theglobalfund.org/en/about/policies_guidelines/


continue..

Timelines for the LFA Assessments:

� All the documents to be submitted as soon as possible after

Board approval as the assessments can be carried out

concurrently with the TRP clarification process

� The Grant Agreement must be signed within 1year after

Board Approval

� After completion of the assessments, the LFA submits the

report(s) and documentation to the Global Fund for grant

negotiations

2.4 Grant Negotiations: Secretariat

• The secretariat reviews the findings in the LFA assessments, and documents provided, and start the grant negotiation process with the PR,

�previous assessments in any of the 4 areas

�Workplans and Budgets

�Performance Framework for Years 1 and 2 (Attachment 1&2)

�M&E Plan

�PSM Plan (if applicable)

�Any other relevant documents

• Possible Conditions Precedent

2.5 Grant Negotiations: Secretariat continues…

• Deliverables before Grant Signing (in final form):� Grant Agreement Face Sheet

� Annex A

� Performance Framework for Years 1 and 2 (Attachment 1&2)

� PR Bank Details

� PR Authorised Signatories

� PR, CCM, and Civil Society Signatories to Grant Agreement

� Workplans and Budgets

� M&E Plan

� PSM Plan (if applicable)

• Grant Signature

• 1st Disbursement

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


Support continues…

Grant

Proposal

Form

Annual

Review

Grant

Agreement

Attachment

1&2

Annex A

Grant Performance Report

Disbursement

Request/

Progress

Update

PROGRAMMATIC ACHIEVEMENTS

(coverage indicators)FINANCIAL PERFORMANCE


Support: Criteria for Performance-Based Disbursements

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

Timing for Disbursements



Progress Update

& Disbursement Request

Timing: To LFA within 45 days

PR

� Results vs. Targets

� Expenditures vs.

Budget

� Contextual Information

� Advancement on

Condition Precedents

(CPs)

� Disbursement Request

Amount

Progress Review &

Disbursement Recommendation

Timing: To TGF within 5 days

LFA

� Verification of:

- Reported Results

- Reported

Expenditures

- Fulfillment of CPs

� Review of Contextual

Information

� Recommended

Disbursement Amount

Performance Evaluation &

Disbursement Decision

FPM

� Review of:

- Programmatic

Results

- Financial

Performance

- Contextual

Information

- Fulfillment of CPs

� Disbursement Decision

DISBURSEMENT PROCESS



1- PERFORMANCE EVALUATION1- PERFORMANCE EVALUATION

� Have programmatic targets been reached?� Have programmatic targets been reached?

2- FINANCIAL REVIEW2- FINANCIAL REVIEW

� Are expenditures in line with budgets?� Are expenditures in line with budgets?

3- CONTEXTUAL INFORMATION3- CONTEXTUAL INFORMATION

� Is there contextual information that should be taken into

account in the disbursement decision?

e.g., governance, general management, external factors

� Is there contextual information that should be taken into

account in the disbursement decision?

e.g., governance, general management, external factors

4- OUTSTANDING REQUIREMENTS4- OUTSTANDING REQUIREMENTS

� Are there any requirements that have not been met?

e.g., unfulfilled CP, missing Audit Report, late Attachment

� Are there any requirements that have not been met?

e.g., unfulfilled CP, missing Audit Report, late Attachment

Disbursement

Decision



QUALITY

DISBURSEMENTS

EVIDENCE OF

PERFORMANCE (PBF)

TIMELY

DISBURSEMENT

REQUEST

CLEAR, ACCURATE

& COMPLETE

DOCUMENTATION

Due to TGF 45 days after

end of reporting period Responsible speed



Why Focus on Disbursements

• Late and incomplete PU/DR result in:

– Postponed TGF disbursement decision

– Delayed identification of grant implementation

problems and mobilization of needed TA

– Increased transaction cost of disbursement



Why Focus on Disbursements continues..

• The overall impact is:

– Poor implementation rate

– Lack of target achievement

– Lack of confidence in the program

– Overall failure of the grant.



Primary Issues That Delay Processing of Disbursement Requests….

1. Conditions Precedent (CPs) are not properly addressed

2. Lack of confirmation of bank details

3. PR authorized signature related issues

4. The Price Reporting Mechanism not updated.

5. Deficiencies in the cash reconciliation page of the PU/DR:

6. Time/ Expiry related issues


Support: Key deliverables

DR/PU – due 45 days after close of semester

Annual Audit – no later than 6 months after end of

fiscal year

Annual Review – no later than 3 months after end

of fiscal year

PSM – input key data into the PRM continuously

– The Global Fund approves funding in principle for 5 years.

However, initial funding is committed for the first 2 years only (Phase

1)

– Phase 2 is the extension of Phase 1 and covers the remaining

proposal period (typically years 3-5)

– The review of this first phase is a critical aspect of the grant lifecycle

and for the performance based funding model used by The Global

Fund

– Funding beyond Phase 1 (i.e., Phase 2) is based on performance

during Phase 1, contextual considerations, and availability of

resources

4. Phase 2 Overview: What is Phase 2?

Y1 Y2 Y3 Y4 Y5

Proposal

Initial Grant Agreement(s) Extension of Grant Agreement(s)

Phase 1 Phase 2

4.1 Phase 2 Application: Application Timeline

• Phase 2 serves as a checkpoint to ensure that funding is

performance-based

1. Board approves

Proposals

2. Global Fund and

PR(s) sign Grant

Agreement(s)

3. PR(s) receives first

disbursement; Program

start date

0

9. Negotiate and

sign extension to

the Grant

Agreement(s) by

month 26

24-26

7. Phase 2

Secretariat

recommendation to

the Board

20

19

6. CCM

submits

Request for

Continued

Funding

10. First phase 2

disbursement

21.5

5. CCM invited to

submit a Request

for Continued

Funding

16

24Program month

4. PR implementation

and reporting; CCM

oversight; LFA

verifications; Global

Fund performance-

based disbursements;

partner support

8. Board

approval

10th of

month 24

Phase 2 Renewal Process

* End of months

CCM can

accelerate timing

27

Invitations sent

to CCM

CCM Submit Request for

Continued Funding

Month 16 Month 18 Month 20 Month 22

Phase 2 Renewal Process

CCM Phase 2 Documents (sent to Secretariat)CCM Phase 2 Documents (sent to Secretariat)

• CCM Request for Continued Funding (completed)

• Minutes of the CCM meetings (on Phase 2 Request)

• Detailed Budget and Workplan for Y3

• List of Health Products for Y3

• Indicative Budget and Workplan for Y4-5 (if applicable)

• Proposed Attachment 3

• Revised Program Implementation strategy (if necessary)

• CCM Request for Continued Funding (completed)

• Minutes of the CCM meetings (on Phase 2 Request)

• Detailed Budget and Workplan for Y3

• List of Health Products for Y3

• Indicative Budget and Workplan for Y4-5 (if applicable)

• Proposed Attachment 3

• Revised Program Implementation strategy (if necessary)

Secretariat Phase 2 Documents (sent to the CCM)Secretariat Phase 2 Documents (sent to the CCM)

• Invitation letter to CCM to submit a Request for

Continued Funding

• Grant Performance Report

• CCM Request for Continued Funding Form and

Instructions

• Attachment 3 Form

• Invitation letter to CCM to submit a Request for

Continued Funding

• Grant Performance Report

• CCM Request for Continued Funding Form and

Instructions

• Attachment 3 Form

Additional required PR DocumentsAdditional required PR Documents

• Agreed-upon Attachment 2

• Latest Progress Update (typically Q5)

• Annual Review

• Audit Report (if due before Month 20)

• Agreed-upon Attachment 2

• Latest Progress Update (typically Q5)

• Annual Review

• Audit Report (if due before Month 20)

4.2 Phase 2 Application: Required

Documents

4.3 Phase 2 Review

QUESTIONS?

Grant Lifecycle: Phase 1 - World Health Organization · Grant Lifecycle: Phase 1 ... develop and...

Documents

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