Prepare Funding Request
The initial step in the funding process is the development of a funding request for a disease component by all stakeholders. In preparation for the development of the funding request, the applicant chooses a proposed start date for the implementation period of the new funding request. The applicant will need to be aware of the upper limit for grant-making, taking into account the funding forecast available at the start date of this period.
Initial “best estimate” budgets by intervention are the minimum requirements for the submission of the funding request. The budget at the funding request stage is not detailed, but it serves to provide the strategic investment and intervention choices. It should be based on both realistic requirements to meet targets and the total amount of grant funds available.
The following are the key information requirements for budgets at this stage:
- A description of the intervention, including details of the target population and geographic scope, the implementation approach, and other relevant information;
- The annual funding required for each intervention, including the following qualitative details (if available):
- cost assumptions (e.g. latest historical cost, quotations provided by vendors etc.);
- reference to development partners costing tools (where applicable);
- outline of additional sources and amounts of funding available for each intervention, with a distinction of the requests by “Within the allocation” (based on total approved programme split of the country for a specific disease) and “Above-allocation” (which covers the full expression of need for effective disease programme implementation in the country, covering all existing funding gaps); and
- Proposed implementing Principal Recipient(s)(PRs) and Sub-recipient(s) (SRs) (if available).
It may be more convenient to prepare a more detailed budget at the funding request stage, which can then be consolidated into an intervention-based budget for submission to the Global Fund (for example, in cases where the latest historical costs of certain known activities in an intervention are already available).
Please see here for detailed information on the budget approval process.
The diagram below (Global Fund Guidelines for Grant Budgeting and Annual Financial Reporting - page 23) provides a summary of the stages of the budgeting process for the funding request (formerly 'concept note').
Funding ceiling and treatment of in-country cash balances
In preparation for funding request development, the applicant chooses a proposed start date for the implementation period of the new funding request. The applicant will need to be aware of the upper limit for grant-making, taking into account the funding forecast available at the start date of this period. Calculating this involves taking the country allocation for the component in question after programme split, and reducing this figure by the amount of disbursements (actual and projected) to be made before the start date of the new request. This will provide the forecast funds available for each disease, which will be the budget ceiling amount for each funding request.
All interventions to be implemented and paid as of the new funding model grant start date, whether originating from already existing grants or from the funding request, should be incorporated in the budget.
The indicative upper ceiling available for each disease component at the funding request stage can be calculated as described in Global Fund Guidelines for Grant Budgeting and Annual Financial Reporting (Table 1.a Funds available for funding request preparation - GAC1 (Illustrative amounts).
When establishing the funding request funding ceiling for budgeting, the disbursement forecast for the remaining period of the existing grant should be done with the assumption of a “zero cash balance”, unless there are available cash balances from active grants not required for the payment of invoices or implementation of activities under the associated grant agreement prior to the new funding model grant. With respect to in-country cash balances relating to: (1) recoverable (Office of Inspector General (OIG) or otherwise), (2) grants in closure or already closed prior to the allocation period, the PR is required to reimburse the cash balance directly to the Global Fund, unless otherwise approved in writing by the Global Fund for re-investment into the new funding cycle/reprogramming.