NEW FUNDING MODEL June 2014 - PowerPoint Presentation

Slide1

NEW FUNDING MODEL

June 2014Slide2

New funding model cycle

2

nd

GAC

Concept Note

Grant Making

Board

TRP

GAC

Ongoing Country Dialogue

National

Strategic Plan/

Investment Case

Grant

ImplementationSlide3

Allocation*To be approved by the Steering CommitteeGlobal Fund provides one allocation amount across all eligible disease components.

The Allocation Letter contains:

A breakdown by disease component for information only (

countries may propose a different split

);

Historical

allocation of GF funding and identified over-allocated disease

components*;

Band allocation, for the respective country, based on disease burden and income

level; and

Amount of potential

incentive funding

available for band

$

HIV

Allocation

$

TB

Allocation

$

MALAllocation

Overall

allocationfor country xSlide4

Preparing for the Concept NoteSlide5

Agree on program split across eligible diseases and HSS activitiesKey tasks during concept note preparationReview national strategic plans

Plan for inclusive dialogue

Plan

when to apply

1

2

3

4

Review CCM compliance with eligibility requirements

Begin negotiations on increased governmental commitments

Begin discussion on appropriate implementation arrangements

5

6

7Slide6

1. Plan for Inclusive DialogueSlide7

Key takeaways on inclusive dialogueCountry dialogue is a key component of the Global Fund application process.Involves participation from all key stakeholders, in alignment with the epidemic in the countryProduces a concept note that can maximize the impact of Global Fund resourcesCCMs should be proactive in preparing for and overseeing the country dialogue process.Kick-start the process by engaging the stakeholders of the dialogue as early as possible.

Leverage the relevant stakeholders to make things happen.

1

2Slide8

2. Program Split: Agree on how to split allocation from the Global FundSlide9

Program split: What is the process?GF reviews proposed split based on set criteriaProposed split is potentially revised and concept note is adjusted

CCM submits proposed split before concept note submission or at the time of first concept note submission

CTs and CCM discuss Disease split during country dialogue

CTs communicate allocation via the letter of allocation

Countries may request early review of the split if desiredSlide10

All countries receiving Global Fund’s support for disease programs are eligible for HSS investmentsRequest by including one or more cross-cutting HSS module’s in one disease Concept Note (s), or by preparing a separate HSS concept note for a stand-alone cross-cutting HSS grantUpper-middle income countries with “high” disease burden

are not eligible for a stand alone HSS concept note

Disease-specific interventions with spill-over effects on health system components relevant to only one disease program (labelled as “disease-specific HSS” under the Rounds-based system) are allowed and can be embedded in disease

grant; not labelled

as “HSS”

Eligibility for HSS fundingSlide11

11

Five components of the health system are prioritized for HSS investments based on programmatic risk analysis:

Procurement and supply chain management

Health management information system

Health and community workforce

Service delivery

Financial management

Prioritized scope of HSS investmentsSlide12

Proposed program split will be reviewed by The Global FundScreening CriteriaCompares proposed allocation against allocation amounts based on disease burden and income levels

Initial

automatic screening

No criterion triggered

Any criterion triggered or

request by

Country Team

Simple review

Regular reports to GAC on country-level program split

Elevated

reviewSlide13

3. Plan when to applySlide14

Key considerations around timing in the new funding modelFlexible timing – to maximize concept note qualityConsider when you will need grant funds disbursedAlignment with national strategic plan timing and/or fiscal cycle is an advantage

Each disease component can plan its own timing with separate concept notes -> one request for existing & new funds

Extensions can be used sparingly to help align timing

4

1

2

3

5Slide15

CCMs choose one of the submission dates for each component

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

1

2

3

4

5

6

7

8

9

2014

2015

2016

TRP

TRP

TRP

TRP

TRP

TRP

TRP

TRP

TRP

#

Submission deadline on 15

th

of the month

TRP review meeting (approx.)

TRP

Submission deadline for EoI (regionals only)

EoI

EoISlide16

Time required for new funding model stages also depends on country context2 months

1.5 months*

Up-to-date and costed national strategic plan or investment case with agreed priorities

via inclusive dialogue

Strong CCM and PRs that meet minimum standards

2 months

3

months*

3 months

3 months*

NSP development

8 months

11 months

3

months

Concept note writing

TRP and GAC review

Grant making

Time from dialogue to 1

st

disbursement

Pre-concept note country dialogue

From Board approval to 1

st

disbursement

1 month

1 month

Need time

for country dialogue to agree on priorities and consult stakeholders

PRs and implementation arrangements are satisfactory

Lack clear strategy or viable extension plan through grant period

Weak CCM and/or

implementers

Weak technical

partners in-country

1 month

Accelerated

Average

Long

* This is the anticipated average scenario – it may take longer in some countries.

17 months

2 months

2 months

2 months

7

months

Timing of concept note submission has to be aligned to one of the TRP / GAC windowsSlide17

4. Review National Strategic PlansSlide18

Funding requests should be based on national strategic plans (NSPs)

National Strategic Plan

Sound situational analysis and programming

Inclusive development and endorsement process

Sound and feasible costs and budgetary framework

Effective implementation and management arrangements & systems









Effective monitoring, evaluation and review mechanisms



A robust NSP meets JANS criteria:

Concept

Note

w

ith prioritized

programmatic

gaps

The new funding model places more emphasis on

alignment to country processes

, and aims to incentivize the development of

robust,

costed

and prioritized

disease-specific

NSPs

(and/or investment cases for HIV) as well as the overall national health

strategySlide19

1

2

3

4

5

6

Develop, publish and follow a

policy to manage conflict of interest that applies to all CCM members, across all CCM

functions

Ensure representation of non-governmental members through transparent and documented processes

Document the representation of affected communities

Overseeing program implementation and

having an oversight

plan

Open and transparent PR selection process

Transparent and inclusive concept note development process

3 to 6 monitored on going basis

1 and 2 assessed at CN submission

Changes under the new funding model

CCM Eligibility RequirementsSlide20

6. Begin negotiations on increased government funding commitmentsSlide21

How does ‘Counterpart Financing’ work?Mandatory minimum requirements of counterpart financingMinimum threshold contribution (LI-5%, Lower LMI-20%, Upper LMI-40%, UMI-60%)Increasing government contribution to disease programs and health sector

Reliable disease and health expenditure data

‘Willingness-to-Pay’ commitment to further incentivize

Additional co-investments by government in disease programs

in accordance with ability to pay

Realization

of planned government

commitments

15% of allocation is

contingent upon meeting WTP commitments

Core Global Fund principles:

Sustainability, Additionality, Country OwnershipSlide22

What counts towards Willingness to Pay commitments?Counterpart financing in the next phase, which isBeyond current levels of government spending or over minimum threshold requirements, whichever is higherCommitted to strategic areas

of the national disease programs supported by the Global Fund and/or health systems strengthening to address bottlenecks in management and service delivery of programs supported by the Global Fund

Verifiable

through budgets or equivalent official documentation on an annual basis

A

country

must demonstrate it has

met its minimum counterpart financing requirements and

WTP commitments

on an annual basis

Funding

from the Global Fund will be adjusted downwards proportionately if a government fails to meet these requirements and commitments (Timing and mechanism of tracking and reporting government spending on an annual basis to be agreed during country dialogue)

Key

take-awaySlide23

7. Begin discussion on appropriate implementation arrangementsSlide24

Concept Note Review ProcessSlide25

Review Process

2

nd

GAC

Concept Note

Grant Making

Board

TRP

GAC

Ongoing Country Dialogue

National

Strategic Plan/

Investment Case

Grant

ImplementationSlide26

What is the Technical Review Panel looking for?Soundness of approachFeasibilityPotential for sustainable outcomes

Value for money

The TRP is

a

n independent panel of international experts that reviews and assesses the prioritized interventions in the concept note.

Criteria for reviewing funding requestsSlide27

What does the Grant Approval Committee take into account?The GAC determines the upper-ceiling for the budget and awards incentive funding TRP’s recommendations

Sustainability

Strategic focus

Reward strong performance

Ambition of the request

Ensures adequate investment in gender, CSS, human rights and key populationsSlide28

Grant MakingSlide29

What is grant-making?Translation of the approved interventions, based on the TRP and GAC recommendations, into disbursement-ready grants for Board approval and signature Slide30

Grant ApprovalSlide31

Grant Approval ProcessGAC reviews disbursement-ready grant and submits a final report to the BoardThe GF Board reviews and approves grantsThe

GF signs the Grant Agreement after the Principal Recipient and CCM have signed

The GF and

PR set the grant start

dateSlide32

Questions?