Audit and Investigations
- Ad hoc Site Visits
- Audit of Country Coordinating Mechanism Funding
- Global Fund Office of the Inspector General (OIG) Investigations and Audits
- Office of Audit and Investigations (OAI) Investigations
- Principal Recipient Audit
- Sub-recipient Audit
Capacity development and transition strengthening systems of 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
- Resilience and Sustainability
- CCM Funding
- Grant Closure
- Budget Reallocation and Revision
- Expenses Management
- Project Management and Update in Atlas
- Revenue Management
Grant-Making and Signing
- Prepare and Finalize a Global Fund Budget during Grant-Making
- Prepare and Negotiate Pre-allocation Budget
- Prepare and Negotiate Work Plan and Budget with the Global Fund
- Prepare Funding Request
- Project and Budget Formulation in Atlas
- Secure Banking Arrangements
- Grant Reporting
- Sub-recipient Management
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
- Access to Medicines
- Integrating Human Rights, Key Populations and Gender in the Grant Lifecycle
- Objective of this Section
- UNDP’s Work on Human Rights, Key Populations and Gender
- Agreements with Sub-recipients
- Agreements with Sub-sub-recipients
- Amending Legal Agreements
- Implementation Letters and Management Letters
- Language of the Grant Agreement and other Legal Instruments
- Legal Framework for Other UNDP Support Roles
- Other Legal and Implementation Considerations
- Project Document
- Signing Legal Agreements and Requests for Disbursement
The Grant Agreement
- Grant Confirmation: Conditions Precedent (CP)
- Grant Confirmation: Conditions
- Grant Confirmation: Face Sheet
- Grant Confirmation: Limited Liability Clause
- 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
Monitoring and Evaluation
- Funding Request Development
- Global Fund M&E System Requirements
- M&E Components of Grant Implementation
- M&E Components of Grant-Making
- M&E components of grant reporting
- Principal Recipient Start-Up
Procurement and Supply Management
- Development of List of Health Products and Procurement Action Plan
- Distribution and Inventory Management
- Price and Quality Reporting (PQR) System
- Procurement of Non-health Products and Services
- Procurement of Pharmaceutical and Other Health Products
- Quality Control
- Rational use of Medicines and Pharmacovigilance Systems
- Strengthening of PSM Services and Risk Mitigation
- UNDP Health PSM Roster
- UNDP Quality Assurance Policy and Plan
- Grant Performance Report
- Performance-based Funding and Disbursement Decision
- PR and Coordinating Mechanism (CM) Communication and Governance
Reporting to the Global Fund
- First Disbursement, Execution Period and Reporting Calendar
- Progress Updates/Disbursement Request (PU/DR)
- Quarterly Financial Reporting to the Global Fund
- Tax Status Reporting
- UNDP Corporate Reporting
- Common Risks Identified in Global Fund Programmes
Global Fund Risk Management
- Global Fund Operational Risk Management
- Global Fund Requirements for Risk Management at Implementer Level
- Global Fund Local Risk Management Releated Policies
- Introduction to Risk Management
- Risk Management in High Risk Environments
- Risk Management in UNDP-managed Global Fund Grants
- Risk management in UNDP
- UNDP Risk Management in the Global Fund Portfolio
- Capacity Assessment and Approval Process
- Engaging Sub-recipients
- Managing Sub-recipients
- Selecting Sub-recipients
- Sub-recipient Management in Grant Lifecycle
- Audit and Investigations
Agreements with Sub-recipients
UNDP engages Sub-recipients (SRs) by entering into binding legal agreements with them (SR agreements). Depending on the type of SR, the appropriate template should be used (i.e. the template for a government entity (which is available in English, French and Spanish) or the template for an intergovernmental organization (IGO) or a civil society organization (CSO) (which is also available in English, French and Spanish). In 2013, UNDP released a model agreement for United Nations SRs, which replaces the previous templates negotiated separately with each UN partner. The model agreement with United Nations SRs is based on the United Nations Development Group (UNDG) model UN agency to UN agency contribution agreement and is intended to introduce a more efficient framework of cooperation between UNDP and UN partners serving as SRs, while meeting the Global Fund requirements. Please contact the UNDP Global Fund/Health Implementation Support Team before signing an agreement with a UN agency.
A SR agreement is structured similarly to the Grant Agreement. It is composed of a face sheet, standard terms and conditions, and several annexes.
A face sheet is similar to that of the Grant Agreement. The Country Office (CO) should carefully review it and make sure to complete all the blocks with correct information.
The standard terms and conditions (Grant Regulations) are non-negotiable and must be accepted by a SR without changes.
The Grant Regulations for IGOs, CSOs and government entities include the following key provisions:
- As a rule, UNDP undertakes procurement on behalf of SRs. (See Grant Regulations, Art. VII).
- SRs may be authorized to do procurement in exceptional cases, which must be set forth in the work plan (Id. Art. VII).
- There are several financing modalities available for funding SR activities: advance payment, cost reimbursement and direct payment. Direct payment can also be used in combination with advance payment and cost reimbursement (Id. Art. VIII).
- SR funds and income must be spent only on SR activities (Id. Art. VIII(6)).
SRs must report other donor funds targeting similar activities or objectives (Id. Art. XXIX(7)).
- SRs have comprehensive programmatic and financial reporting obligations, which they must fulfill according to a specific schedule (Id. Art. XI).
- SRs must report any refund received from suppliers (Id. Art. XI).
- SRs’ activities are audited and investigated by UNDP (Id. Art. XIII).
As noted above, Art. VIII of the Grant Regulations for IGOs, CSOs and government entities sets forth three modalities for financing SR activities: advanced disbursement (used when an SR has sufficient capacity to manage funds); cost reimbursement (used when an SR has sufficient resources to pre-finance activities), and direct payment (used when an SR has little capacity to manage funds or country-specific banking regulations prevent or complicate any other modality—in which case, UNDP pays directly to vendors and SR personnel). In addition to being a standalone financing modality, direct payment is also built into the advance disbursements and cost reimbursement modalities. This gives the CO the flexibility to decide whether a portion of funding should be advanced and a portion directly paid to vendors and SR personnel. Such flexibility allows UNDP to manage the risk accompanying advance disbursements while building SR capacity to manage funds. Further guidance on the modalities for financing SR activities is available in the financial management section of the Manual.
The SR agreement must be accompanied by a number of annexes, including a project document, a Grant Agreement and a work plan. These documents must be annexed to every SR agreement. The most important operational annex is a work plan, which is developed by the CO in consultation with the SR being engaged. The work plan should be consistent with the Grant Agreement and include (i) detailed activities and related costs/budget; (ii) outputs/deliverables; (iii) required supporting documentation showing delivery; (iv) indicators of performance; and (v) time frames for achievement of targets and deliverables.
The work plan must detail the financing modality that will be used to fund the SR activities. It should clearly outline which activities will be funded through advanced disbursement, direct payment and/or cost reimbursement.
Art. XVI of the Grant Regulations for IGOs, CSOs and government entities outlines detailed steps to be followed when circumstances warrant early suspension and termination of the SR agreement. Consultation with the SR in question, exchange of information, close collaboration on remedying the circumstances that interfere with continuation of activities, and gradual escalation are key to the process. Formal steps such as deadlines for notices and written notifications must be carefully observed. Since termination of SR relationships bears programmatic, legal and reputational risks, the UNDP Global Fund/Health Implementation Support Team and LO should be consulted on the process and approach.
When the SR agreement is coming to an end, because of either completion of SR activities or termination, the CO should prepare a closure plan and advise the SR of the following requirements in the Grant Regulations for IGOs/CSOs and government entities:
Within one month of the end or termination of the SR agreement, the SR must return all assets funded by UNDP under the SR agreement. See Art. VII(6). Please note that it is very rare for the physical return of assets to occur. As a rule, the Global Fund authorizes the SR, such as the ministry of health, to retain the assets or instructs UNDP to arrange for the assets to be transferred to an incoming PR or another SR. Please see the section on property issues for further guidance on asset management.
- Within one month of the end or termination of the SR agreement, the SR must also return to UNDP all SR funds (where applicable) and income generated under the SR agreement. See Art. VII(6).
- Within two months of the end or termination of the SR agreement, the SR must provide a final report on SR activities and include a final financial report on the use of SR funds, as well as an inventory of assets funded by UNDP. See Art. XI (7).
If any deviations or additional terms (such as different reporting deadlines) are authorized, exceptionally, by the UNDP Legal Office (LO), they should be reflected in the Grant Regulations, which should be annexed separately to the SR agreement.
SR agreements can only be signed after a Grant Agreement is concluded. Before that, UNDP does not have a legal basis to enter into binding commitments with third parties. To avoid delays with implementation, SR agreements should be negotiated and made ready for signature before the Grant Agreement is concluded. As soon as that happens, signature of SR agreements should be immediate and automatic.
Two originals of SR agreements should be signed. After signature, UNDP keeps one original and provides the SR with the other original.
Any substantive changes to the provisions in the corporate templates must be cleared by the UNDP Global Fund/Health Implementation Support Team for operational issues and by the LO for legal issues. Any approved deviations should be reflected in the Grant Regulations annexed to the SR agreement.
If the CO contemplates suspension or termination of the SR agreement, LO and the UNDP Global Fund/Health Implementation Support Team should be consulted on the process and approach.