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Global Fund Observer NEWSLETTER Issue 231: 11 November 2013 GFO is an independent newsletter about the Global Fund. To download Word and PDF versions of this issue, click here. GFO Live >> Aidspan Website >> Contact GFO >> CONTENTS OF THIS ISSUE: Editor’s Note: (1) Several of the articles in this issue relate to the allocation methodology for the new funding model. Readers may wish to consult a new Aidspan paper, “The NFM Allocation Methodology Explained,” which is available on the Aidspan website here. (2) This has been a busy period for news about the Global Fund. In addition to the Board meeting just concluded, and the many papers prepared for that meeting, there has been news about the NFM-related decisions taken by the Strategy, Investment and Impact Committee, the Fourth Replenishment and the latest wave of funding decisions taken by the Board through electronic voting. There was not enough space to cover all of these stories in this issue of the newsletter. We invite readers to consult the “Also Available on GFO Live” section at the end of the newsletter for links to articles on these other stories. 1. NEWS: Main Decisions Made at Board Meeting This article provides a summary of the main decisions made by the Global Fund Board at its 30th meeting in Geneva on 7–8 November 2013. 2. NEWS: Revised Eligibility Policy Retains the Main Elements of the Old Policy The revised eligibility policy adopted by the Global Fund Board retains most of the main elements of the old policy. However, under the revised policy, countries that become newly ineligible will benefit from a new transition provision. Further work will be done on the transition modalities. 3. NEWS: SIIC Approves Parameters for the Allocation Formula for 2014–2016 The Strategy, Investment and Impact Committee has determined the indicators for disease burden and ability to pay; the methodology for establishing Band 4 allocations; and maximum and minimum shares for apportioning indicative funding to countries. 4. NEWS: SIIC Takes Decisions on Incentive Funding and Other NFM Matters The Strategy, Investment and Impact Committee has made decisions in four areas related to the new funding model: awarding of incentive funding, managing unfunded quality demand, health systems strengthening and TB/HIV collaboration. 5. NEWS: Large Influx of NFM Applications Expected in 2014 The Secretariat expects that about half of all applications for the 2014–2016 allocation period will be submitted in 2014. 6. NEWS: Corporate KPI Framework Is Approved The Board has approved a revised edition of the Global Fund’s Corporate Key Performance Indicator Framework (2014–2016), which has 16 indicators. This edition of the KPI Framework reflects extensive consultations with Board committees and donor and implementer constituencies. 7. NEWS: Global Fund Releases Report on Losses and Recoveries Twenty percent of the $118 million in losses identified by the Office of the Inspector General has been recovered so far, according to a report released by the Global Fund. The Secretariat is continuing to develop policies and guidelines on the recovery process. 8. NEWS: Replenishment Roundup This article reports on recent developments concerning the Fourth Replenishment. See section near the end of this newsletter listing additional articles available on GFO Live. ARTICLES: 1. NEWS: Main Decisions Made at Board Meeting On 7–8 November 2013, the Global Fund Board held its 30th meeting in Geneva, Switzerland. GFO was present, with observer status. The main decisions made at the meeting, in chronological order, were as follows. (For precise wording of what the Board agreed, see the decision points document that has been posted here. Background documentation will also, in time, be posted by the Global Fund at the same location.) Revised whistleblowing policy. The Board approved revised Whistle-Blowing Policy and Procedures. The revised policy contains measures to enhance the protection of whistle-blowers against retaliation. In addition, an item has been added to the list of examples of misconduct that should be reported: violations of human rights in relation to Global Fund–supported programmes. [See Decision Point 4.] See also separate GFO article here. Revised eligibility criteria. The Board approved a new Eligibility and Counterpart Financing Policy to replace the old Eligibility, Counterpart Financing and Prioritization Policy. In addition to removing the section on prioritisation, which is no longer relevant under the new funding model, the most significant modifications have to do with countries becoming newly eligible or newly ineligible as a result of changes in income level or disease burden. The Board also decided that the Strategy, Investment and Impact Committee will initiate a process that will produce, by the end of 2014, options and recommendations for refining the Global Fund’s approach to transitioning countries. (“Transitioning countries” refers to countries that become newly ineligible.) The Board further decided that this approach will include consideration of public health indicators to measure progress in sustaining and enhancing gains against the three diseases. [See Decision Point 5.] See also Article 2 in this issue. Operating expenses budget. The Board delegated to the Finance and Operational Performance Committee the authority to approve an operating expense budget for the first quarter of 2014, with the proviso that this budget will not exceed the amount of the first quarter budget for 2013 ($77.4 million). The full 2014 operating expenses budget will be presented to the Board at its next meeting in February 2014. [See Decision Point 6.] Key Performance indicators. The Board approved revised corporate key performance indicators for 2014–2016. There are 16 indicators in all, covering operational performance, grant performance, systems effects and impact. Acknowledging that further work is required to extend the scope of certain indicators, the Board decided that the Secretariat will submit indicator revisions for approval by the Board, and that a complete KPI framework, including baselines for each measure, will be finalised by June 2014, subject to certain exceptions. In addition, the Board decided that indicator results should be complemented by sex and age disaggregated data where feasible. [See Decision Point 7.] See also Article 6 in this issue. Committee leadership. The Board approved the following appointments for two-year terms, effective 1 March 2014 – As Chair and Vice-Chair, respectively, of the Finance and Operational Performance Committee: Soltan Mammadov (Eastern Europe and Central Asia constituency) and Jason Lawrence (US constituency); as Chair and Vice-Chair, respectively, of the Strategy, Investment and Impact Committee: David Stevenson (Canada/Switzerland constituency) and Anita Asiimwe (Eastern and Southern Africa constituency); and as Vice-Chair of the Audit and Ethics Committee (AEC): Claude Rubinowicz (France constituency). [See Decision Point 8.] [This article was first posted on GFO Live on 10 November 2013.] TOP ________________________________ 2. NEWS: Revised Eligibility Policy Retains the Main Elements of the Old Policy Countries that become newly ineligible will benefit from transition provision NGO rule is retained The Global Fund has adopted a revised Eligibility and Counterpart Financing Policy to replace the old Eligibility, Counterpart Financing and Prioritization Policy. Aside from the fact that the prioritisation section of the policy was dropped – it is no longer relevant in the context of the new funding model (NFM) – the revisions were not particularly extensive. The revised policy was recommended by the Strategy, Investment and Impact Committee (SIIC). There were no changes to the main eligibility requirements. High-income countries still cannot apply for funding directly. Lower-middle-income (LMI) and upper-middle-income (UMI) countries still have to meet the same focus of proposal and disease burden requirements. CCM applicants still have to meet certain requirements. There are still limits on the amounts of funding some UMI countries can receive. And the counterpart financing requirements remain the same. This article provides information on what has changed under the revised policy. Changes in eligibility status Newly ineligible Under the revised policy, eligibility will continue to be determined on an annual basis even though allocation periods last for three years. Countries that suddenly become ineligible for a given component, because of changes in income level or disease burden, and that are implementing a grant for that component, will remain eligible to receive funding for that component for up to one allocation period immediately following the change in eligibility. This transition measure is designed to ease the burden on, for example, a country that moves from the LMI classification to UMI and does not have the high, severe or extreme disease burden necessary to maintain eligibility for that disease. There are limitations to the transition measure. The Global Fund Secretariat will determine the appropriate amount and period of funding based on the country context and other considerations, such as whether there is sufficient time left in the existing grant (e.g. more than 12 months after becoming ineligible) to allow for a clear transition to other sources of funding. The Secretariat may decide to limit the scope of the funding (e.g. fund only activities deemed essential). The Secretariat may require that that the country