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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)
2.2 Grant Negotiations: LFA Assessments
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/
2.3 Grant Negotiations: LFA Assessments
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
3.2 Performance-based Funding and Grant
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
3.3 Performance-based Funding and Grant
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
3.5 Performance-based Funding and Grant
Support: Criteria for Performance-Based 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
3.6 Performance-based Funding and Grant
Support: Criteria for Performance-Based Disbursements
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
3.7 Performance-based Funding and Grant
Support: Criteria for Performance-Based Disbursements
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
3.8 Performance-based Funding and Grant
Support: Criteria for Performance-Based Disbursements
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
3.9 Performance-based Funding and Grant
Support: Criteria for Performance-Based Disbursements
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.
3.10 Performance-based Funding and Grant
Support: Criteria for Performance-Based Disbursements
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
3.11 Performance-based Funding and Grant
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