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Functional Areas
- Audit and Investigations
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Capacity development and transition, strengthening systems for health
- A Strategic Approach to Capacity Development
- Capacity Development and Transition - Lessons Learned
- Capacity development and Transition Planning Process
- Capacity Development and Transition
- Capacity Development Objectives and Transition Milestones
- Capacity Development Results - Evidence From Country Experiences
- Functional Capacities
- Interim Principal Recipient of Global Fund Grants
- Legal and Policy Enabling Environment
- Overview
- Resilience and Sustainability
- Transition
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Financial Management
- CCM Funding
- Grant Closure
- Grant Implementation
- Grant-Making and Signing
- Grant Reporting
- Import duties and VAT / sales tax
- Overview
- Sub-recipient Management
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Grant closure
- Overview
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Steps of Grant Closure Process
- 1. Global Fund Notification Letter 'Guidance on Grant Closure'
- 2. Preparation and Submission of Grant Close-Out Plan and Budget
- 3. Global Fund Approval of Grant Close-Out Plan
- 4. Implementation of Close-Out Plan and Completion of Final Global Fund Requirements (Grant Closure Period)
- 5. Operational Closure of Project
- 6. Financial Closure of Project
- 7. Documentation of Grant Closure with Global Fund Grant Closure Letter
- Terminology and Scenarios for Grant Closure Process
- Human resources
- Human rights, key populations and gender
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Legal Framework
- Agreements with Sub-recipients
- Agreements with Sub-sub-recipients
- Amending Legal Agreements
- Implementation Letters and Performance Letters
- Language of the Grant Agreement and other Legal Instruments
- Legal Framework for Other UNDP Support Roles
- Other Legal and Implementation Considerations
- Overview
- Project Document
- Signing Legal Agreements and Requests for Disbursement
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The Grant Agreement
- Grant Confirmation: Conditions Precedent (CP)
- Grant Confirmation: Conditions
- Grant Confirmation: Face Sheet
- Grant Confirmation: Schedule 1, Integrated Grant Description
- Grant Confirmation: Schedule 1, Performance Framework
- Grant Confirmation: Schedule 1, Summary Budget
- Grant Confirmation: Special Conditions (SCs)
- Grant Confirmation
- UNDP-Global Fund Grant Regulations
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Monitoring and Evaluation
- Differentiation Approach
- Monitoring and Evaluation Components of Funding Request
- M&E Components of Grant Implementation
- Monitoring and Evaluation Components of Grant Making
- Overview
- Principal Recipient Start-Up
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Health Product Management
- Compliance with the Global Fund requirements
- Distribution
- Inspection and Receipt
- International freight, transit requirements and use of INCOTERMS
- Inventory Management
- Overview - Health Product Management
- Pharmacovigilance
- Product Selection
- Quality monitoring of health products
- Quantification and Forecasting
- Rational use
- Risk Management for PSM of health products
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Sourcing and regulatory aspects
- Development of List of Health Products
- Development of the Health Procurement Action Plan (HPAP)
- Global Health Procurement Center (GHPC)
- Guidance on donations of health products
- Health Procurement Architecture
- Local Procurement of health products
- Other Elements of the UNDP Procurement Architecture
- Procurement of non-pharmaceutical Health Products
- Procurement of Pharmaceutical Products
- Submission of GHPC CO Procurement Request Form
- Storage
- Supply Planning of Health Products
- UNDP Health PSM Roster
- Waste management
- Grant Reporting
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Risk Management
- Introduction to Risk Management
- Overview
- Risk management in crisis settings
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Risk Management in the Global Fund
- Additional Safeguard Policy
- Challenging Operating Environment (COE) Policy
- Global Fund Review of Risk Management During Grant Implementation
- Global Fund Risk Management Framework
- Global Fund Risk Management Requirements During Funding Request
- Global Fund Risk Management Requirements for PRs
- Local Fund Agent
- Risk management in UNDP
- Risk Management in UNDP-managed Global Fund projects
- UNDP Risk Management Process
- Sub-Recipient Management
Grant Reporting
The Principal Recipient (PR) is required to provide the Global Fund with periodic reports concerning all funds and activities financed by the grant. Reports should be channelled through the Local Fund Agent (LFA), and copies given to the Country Coordinating Mechanism (CCM) (with the exception of the Cash Balance Report (CBR)); see below). This section of the Manual will focus on financial reporting. Guidance on overall grant reporting, including programmatic reporting is available in the Grant Reporting section of the Manual.
Global Fund policy
Exchange rate
The exchange rate to be used to report expenditures in annual financial reporting should ideally be actual exchange rates applicable on the date of payments of expenditure if known and practical, or the annual/period average exchange rate, using an official or published verifiable rate consistent with the budgeting approach and country norms.
The UN Operational Rate of Exchange (UNORE) as captured in Quantum fulfils Global Fund requirements. For grants that are denominated in Euros, the expenditures in Quantum in US dollars ($) should be translated into the reporting currency using the UNORE prevailing as of the accounting date. Assets and liabilities (cash balances and advance balances) should be translated into reporting currency using the UNORE as of reporting date.
Eligible and ineligible expenditures
Under Global Fund grants, expenditures incurred by implementers are classified as “eligible” or “ineligible.” The initial classification is usually done by the LFA and/or assurance providers (i.e., the Office of the Inspector General (OIG), internal and external auditors, country teams), with the final classification of the expenditure confirmed by the Global Fund.
Eligible expenditures are those that have been validated by the Global Fund Secretariat and/or assurance providers based on credible documentary evidence that they were in line with the Global Fund-approved budget and used solely for programme purposes consistent with the terms and conditions of the grant agreement. Eligible expenditures are:
- incurred during the implementation period as stipulated in the grant agreement;
- in line with the Global Fund-approved detailed budget; and/or
- pre-approved in writing by the Global Fund prior to the expenditure being incurred.
The Implementors should comply with competitive and transparent procurement/tendering processes and the appropriate application of the relevant financial and procurement procedures. Expenditures incurred as part of approved close-out plans are considered eligible subject to the application of the grant regulations and the relevant financial/procurement procedures.
Ineligible expenditures are those expenses incurred which have been found not compliant with the signed Grant Confirmation and/or the appropriate financial and procurement procedures of the implementer/grant. The non-exhaustive list of expenditures that could potentially be classified as ineligible by the Global Fund may include:
- expenditures for goods and services not included in the approved detailed budget;
- expenditures incurred outside of the grant implementation period, close-out period, and/or not included in an approved close-out budget;
- expenditures not duly authorized by the appropriate authority as stipulated in the Manual of Procedures and/or signature authority and approval procedure of the implementer (i.e., missing and/or wrong signatory on the payment voucher or instruction to the bank);
- prices in excess of the prevailing market prices for goods and services without proper rationale/justification;
- expenditures on services for which a report is expected but not received (e.g., headquarters’ fees, consultancies);
- fraudulent expenditures (as verified by Global Fund assurance providers), such as expenditures with falsified/fake receipts, contracts with fictitious suppliers, contracts involving collusion or nepotism between implementer and suppliers, and other procurement irregularities;
- recoverable taxes not recovered by the implementer within a reasonable period of time (six to nine months after incurring the actual expenditure); and
- use of interest income and/or other revenues (such as those from income-generating projects) by implementers to incur expenditures without the prior approval of the Global Fund.
When expenditures are initially classified as ineligible by the LFA and/or assurance providers, the Global Fund at its discretion may request additional justification from the PR and/or directly seek reimbursement from the PR. In the event the Global Fund decides to seek additional justification on ineligible expenditures, the PR has 30 days from the date of the official notification by the Global Fund (through a performance letter or a notification letter) to provide the relevant justification with appropriate supporting documents for review by the Global Fund (copying the LFA).
Upon receipt and review of the additional justification and supporting documentation, the Global Fund may fully or partially reclassify the expenditure as eligible for funding or may confirm ineligibility. If the expenditure is confirmed as ineligible, a refund request will be communicated for the amount considered as ineligible in the grant currency, using the exchange rate applicable on the date of the original expenditure transaction or the date of first notification of ineligibility. The amount should be fully refunded by the PR directly to the grant bank account (unless specified otherwise by the Global Fund) within 60 days of notification of the reimbursement request.
Financial reporting
PR Reporting Requirements are regulated as per the Global Fund Operational Policy Manual.
The PR reports information collected on grant delivery and PR operations to the Global Fund Secretariat and CCM to enable assessment of progress and drive decision-making. The quality and timeliness of PR reporting is a critical part of evaluating PR performance.
Table 1 presents the standard reporting requirements. Portfolios categorized as Challenging Operating Environments1 can request for flexibilities in PU/DR submission timelines. Grants applying Payment for Results arrangements, particularly those with Results-Based Financing2, use a fit-for-purpose reporting approach.
Annual reporting:
- Progress Update and Disbursement Request (PU/DR) (Including Tax reporting )
- Certified Financial Reports – produced and certified by the Office of Financial Management (OFM)
[1] Spanish and French versions are courtesy translations only. External stakeholders should complete and submit the English version of this template.
[2] If LFA verification is requested following Legal Counsel review, the Legal Counsel notifies the FPM or PO (as applicable) to arrange for the LFA verification. Once received, the Legal Counsel attaches evidence of the LFA verification in GOS.