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Legal and operational framework

UNDP and Gavi legal teams are finalizing a standard legal framework. The template Grant Agreement will be based on a model that Gavi uses for WHO and UNICEF. To accommodate Gavi, UNDP has obtained an exceptional authorization from its Treasurer to re-invest all interest earned on Gavi’s contributions into the programme. 

To cover its indirect costs, UNDP charges a standard general management support fee (GMS) of 8 percent. The GMS is re-invested into development projects. Among other things, it covers support at the corporate level of the organization, including corporate oversight and assurance (internal audit, investigation and corporate evaluation), financial support/management, information and communication technology (ICT) and administrative management, corporate human resources management, external relations and partnerships, communication and resources mobilization, staff and premises security, field/Country Office oversight, management and operations support.

UNDP offers comprehensive financial and programmatic reporting to Gavi, with well-tested tools and guidance that can be tailored to accommodate Gavi’s requirements if the partnership scales up.  Among other things, UNDP can develop Gavi-specific reporting templates.

UNDP has a robust risk management framework, including tools and processes that can be customized to meet donor requirements and risk assessment needs. Depending on the scale of engagements, UNDP may be able to offer a special audit regime to Gavi, including a centrally-managed audit of sub-recipients of Gavi’s contributions.

Applicability of the 1% Coordination Levy: The 1% coordination levy endorsed by Member States on 31 May 2018 through the United Nations General Assembly resolution 72/279 on the Repositioning of the United Nations development system (paragraph 10) does not apply to contributions from a global vertical fund. The data standard includes Gavi as an example of global vertical funds.

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