GRANT PERFORMANCE ASSESSMENT METHODOLOGY

The Global Fund makes decisions based on performance to ensure that investments are made where impact in alleviating the burden of HIV, TB and malaria can be achieved. Consistent with its performance-based funding model, the Global Fund Secretariat routinely assesses grant performance and links the outcome of this assessment to a funding decision.

The Global Fund follows a Grant Performance Assessment methodology at disbursement and grant renewals in order to: 1) ensure a more consistent assessment of grant performance; and 2) strengthen the relationship between grant performance and funding decisions.
This methodology comprises two major steps:

1. Assigning a performance rating: The performance rating of a grant is based on:

1. the overall progress achieved against time-bound targets for key output indicators; and

2. an assessment of management performance (notably in the areas of M&E, financial management and systems, pharmaceutical and health products management, and program management). The programmatic achievements are the primary factor in deriving the grant performance rating; however this initial rating based on programmatic performance may be downgraded due to critical management issues (e.g. poor data quality, procurement delays and ineligible expenditures).

2. Deciding on an amount: Each performance rating (A1, A2, B1, B2, C) has an indicative funding range, calculated in order to ensure the relationship between results achieved and funds disbursed (or committed for the next implementation period, in the case of grant renewals) by the Global Fund. These ranges are, nevertheless, only indicative and serve as a starting point for the funding decision. Ultimately, the final decision on the amount to disburse/commit is based on: 1) overall grant performance; 2) contextual factors (force majeure, political and civil issues, etc.); 3) real budget needs in the context of spending ability and (4) actions needed to address identified weaknesses in management capacity.

At the time of grant renewals, impact and outcome assessment also becomes a material part of the decision. Based on a comprehensive review of: (1) trends in impact and outcome results for indicators selected in the performance framework, and (2) additional data and analysis on impact and outcome (including coverage) supported by program reviews/evaluations and other sources, the Global Fund assesses whether the program is progressing towards the objectives and goals of the proposal. If this is not the case, it may request the country to revise its strategy or –in extreme cases- it might decide not to renew its financial commitment for the next implementation period.