Local Fund Agent

In keeping with its aim to promote country ownership and to maintain a lean organizational structure, the Global Fund does not have offices in the countries, regions or territories that receive Global Fund finance. Instead it relies on contracted entities, selected through a competitive bidding process, to serve as Local Fund Agents. The Local Fund Agent is a crucial part of the Global Fund’s system of oversight and risk management, providing independent, professional information and recommendations that enable the Global Fund to make informed funding decisions at each stage of the grant life cycle. Typically, the Global Fund contracts with one Local Fund Agent per country receiving Global Fund resources.

Specific role of the Local Fund Agent in performance-based funding

• At grant negotiation, the Local Fund Agent assesses the financial management, procurement, monitoring and evaluation, and administrative capacities of the nominated Principal Recipient. The agent also reviews the work plan, budget and Performance Framework .
• For periodic disbursements, the Local Fund Agent reviews the Principal Recipient’s programmatic and financial reports and makes recommendations to the Global Fund on the amount to be disbursed in the next period. The LFA also validates onsite visits to ensure the quality of results reported by the Principle Recipient.
• For grant renewal, the Local Fund Agent reviews the Country Coordinating Mechanism request for continued funding, assesses the performance of the grant and makes a recommendation on whether or not to renew the grant and, if so, how much to commit for the remaining years of the proposal.

More information about Local Fund Agents