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 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
- 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-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
- Communicating Results
- 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 Audit
- Sub-recipient Management in Grant Lifecycle
- Audit and Investigations
A Sub-recipient (SR) is an organization/entity engaged by a Principal Recipient (PR) to carry out programme activities that are part of a Global Fund grant. Taking into account that UNDP-managed Global Fund grants are implemented under Proposal Defined Engagement, an SR is also referred to as a ‘responsible party’ (RP), while UNDP is the ‘implementing partner’ (IP).
UNDP classifies SRs into three categories:
- Government entities;
- Civil society organizations; and
- United Nations agencies.
UNDP’s selection and capacity assessment procedures vary according to the SR category.
Sub-recipients versus Private Contractors
Private contractors may also provide services in the implementation of a Global Fund programme, but private contractors are not SRs and cannot be engaged as such. Engagement of private contractors is described in detail in the UNDP Programme and Operations Policies and Procedures (POPP). Table 1 below can be helpful in identifying whether an entity is an SR or a private contractor.
When it is not clear whether an entity should be contracted as an SR or a private contractor, the UNDP Country Office (CO) consults with the Global Fund/Health Implementation Support Team.
|Type of organization||
|Type of activity||
||Specific project inputs that do not require a substantive developmental approach: services that do not directly lead to development outcomes typically sold in the open market and provided by commercial non-development entities|
|Example of activity||
|Values and vision||Share UNDP’s development values and vision||Do not necessarily share UNDP’s development values and vision|
|Availability||Interventions/services are not available in the open market||Services or goods are readily available and traded in the open market|
Questions and answers:
Question: UNDP wishes to engage the services of an organization to distribute large numbers of insecticide-treated nets; should this be an SR or a private contractor arrangement?
Answer: It depends on the actual service to be provided:
- If the service involves delivering the insecticide-treated nets directly to beneficiaries, then behavioural change communication is a critical component of the activity and this should be contracted as an SR arrangement.
- If the service is simply the delivery of the insecticide-treated nets to health facilities, and the health facilities will be responsible for providing the nets to beneficiaries, this could be contracted through a private contractual arrangement providing this is the most cost-effective approach and taking the risks into account.
Organizations included in the Consolidated United Nations Security Council Sanctions List are summarily excluded from becoming SRs because they are on a list of terrorism-linked institutions, established by the Security Council Committee.
Country Coordinating Mechanism membership of Sub-recipients
If an organization is a member of the Country Coordinating Mechanism (CCM) and at the same time wishes to become a grant SR, it should consult the CCM Secretariat to obtain guidance on CCM membership and conflict of interest. In most CCMs, SRs can continue to act as CCM members, as long as they disclose the potential conflict of interest (please see item 6 in the Global Fund Guidelines and Requirements for CCMs), and do not vote on any decisions that affect them. However, since an organization cannot provide effective oversight of itself, SRs are usually not members of the CCM Oversight Committee. In the case of potential conflicts of interest when identifying or contracting SRs, UNDP COs should consult the Global Fund/Health Implementation Support Team.
As PR, UNDP is responsible for identifying and selecting SRs. Although the Global Fund and the CCM cannot determine which organizations are selected as SRs, it is good practice to keep the CCM informed of the SR selection process. The SR selection process should be detailed, transparent, open and fully documented. 
There are several possible procedures for selecting SRs, depending on the type of SR required:
- UNDP identifies government entities and United Nations agencies as potential SRs exclusively through a Proposal Defined Engagement. UNDP identifies CSOs through either a UNDP Proposal Defined Engagement, a UNDP procurement engagement (i.e. strategic engagement) or other forms of engagement (i.e. programmatic) as described in the POPP on Engaging CSO/NGO as a Responsible Party.
The Proposal Defined Engagement for the selection of GF SRs differs from programmatic engagement as detailed in the POPP on Engaging CSO/NGOs as a Responsible Party. Programmatic engagement does not apply to GF SRs as they are considered Responsible Parties and not Implementing Partners. Please see more information below.
Proposal Defined Engagement
This modality is used only for the following entities:
- All government entities (please refer to figure 1 below);
- United Nations agencies: in certain circumstances they may be asked to serve as SRs to provide technical support to grant implementation in line with their organization’s expertise and mandates (please refer to figure 1 below); and
Civil society organizations (CSOs)
- If the CSO in question is named as SR in a grant proposal submitted by the CCM to the Global Fund, and UNDP has assessed the entity as having the programmatic and operational capacity to take on the SR role. Also, a CSO can be engaged through this modality if it was a former SR or PR when there is a transfer of the PR role from another PR to the UNDP CO.
- If the CSO has not been named in the grant proposal and the CO wishes to select it through this modality, the UNDP CO provides a justification to UNDP Global Fund/Health Implementation Support Team. After analysis of specific circumstances described in justification, the UNDP Global Fund/Health Implementation Support Team may exceptionally authorize this engagement. Nevertheless, such engagement is still subject to a positive capacity and value for money (VfM) assessment. The VfM assessment is conducted by UNDP CO and evaluated and authorized by the UNDP Global Fund/Health Implementation Support Team.
Entities that qualify through this engagement modality are not required to undergo a formal competitive selection process under UNDP procurement rules and procedures with approval from the Contract, Assessment and Procurement Committee (CAP)/Regional Advisory Committee on Procurement (RACP)/Advisory Committee on Procurement (ACP). However, if the UNDP CO deems that there are alternatives to the entities so named, it is entitled to undertake a procurement engagement or other forms of engagement. The naming in the grant proposal; former SRs/PRs when there is a transfer PR role or authorization of the entities based on specific circumstances are the only cases in which CSOs are engaged through this modality. For this modality, a programming decision of the Local Project Appraisal Committee (LPAC) should be made prior to engagement. For all other cases, the engagement is subject to procurement engagement or other forms of engagement.
Figure 1. Selecting Government and UN Agencies by Proposal Defined Engagement
Figure 2. Selecting CSOs by Proposal Defined Engagement
Procurement Engagement (strategic selection) and other forms of Engagement (programmatic) for selection of CSOs/NGOs
UNDP COs should use UNDP’s POPP on Engaging CSO/NGO as a Responsible Party to select a CSO as an SR in the following cases:
- There is no CSO named in the grant proposal submitted by the CCM to the Global Fund;
- The CSO is not a former SR or PR when there is a transfer of the PR role from another PR to UNDP CO;
- The CSO is not exceptionally authorized by UNDP Global Fund/Health Implementation Support Team to go through proposal defined engagement modality; or
- The UNDP CO deems it appropriate to use another engagement modality.
The POPP outlines three modalities for UNDP’s engagement with NGOs/CSOs and highlights that selection of the appropriate instrument depends on the particular set of shared goals and planned results:
Procurement Engagement (strategic selection)
This modality foresees selection of NGOs/CSOs as Responsible Parties and is subdivided into the following modalities:
1. Non-competitive procurement modality based on the assessment of NGOs/CSOs collaborative advantage.
2. Based on a competitive procurement selection process that can be completed through:
2.1. Quality-Based Fixed Budget Selection (QB-FBS).
2.2. Standard competitive procurement process - RFP selection process whereby NGOs/CSOs can participate in any UNDP selection of service providers to its projects. The competitive selection processes required by UNDP are fully set out in the UNDP POPP.
2.3. Direct contracting NGOs/CSOs, using the UNDP policy for justifying direct contracting.
For the strategic selection non-competitive procurement modality (item 1 above) based on the assessment of NGOs’/CSOs’ collaborative advantage as per the best practice, the UNDP COs are requested to complete the value for money (VfM) assessment in the form and substance as it is done for proposal defined engagement. This specific requirement serves as a risk mitigation instrument for engagement without competitive Strategic Selection. The VfM assessment, along with the other corresponding documents as described in the policy for collaborative advantage modality, should be evaluated and recommended for approval by the evaluation panel appointed by the UNDP CO’s senior management.
In case of strategic selection competitive procurement modality (item 2 above), it is also useful for UNDP COs to hold a tender consultation meeting with all potential SRs and organizations working with key populations to present the Global Fund programme, and answer and clarify questions and/or concerns. It is best practice that meeting minutes are distributed to all attendees and posted on the UNDP CO website.
UNDP should advise potential SRs to review the CCM grant posposal before completing their quotation/proposal and to visit the Global Fund website to review documents relevant to their application. Proposals in response to the RFQ or RFP should include a work plan and budget as part of the proposal.
Another form of engagement that is not applicable to UNDP-managed Global Fund programmes is programmatic engagement: when NGOs/CSOs are engaged as Implementing Partners (IP) and the agreement between UNDP and the NGO/CSO shall be formalized through the signing of a Project Cooperation Agreement (PCA). This modality is not applicable for use by UNDP COs to select Global Fund SRs as they are considered Responsible Parties, not Implementing Partners.
 For the purposes of this classification, this includes: non-governmental organizations (NGOs), faith-based organizations (FBOs), community-based organizations, community groups and academic institutions.
 Please refer to Global Funds Core Operational Policy Note on Additional Safeguards Policy (24 July 2015), for the Global Fund and CCM Role in an ASP Country.