Board Decisions


Approved by the Board on:
06 May 2009

Country Coordinating Mechanisms (CCM) Funding Policy

The Board agrees that funding for Country Coordinating Mechanisms (CCMs) should be linked to their core functions as defined in the Global Fund Framework Document and further elaborated in the CCM Guidelines. The Board recognizes that the role of CCMs has expanded as Global Fund financing for programmes to fight AIDS, tuberculosis and malaria have increased.

To reduce financial constraints that hinder CCMs from fulfilling their responsibilities, the Board adopts in principle a new funding model for CCMs which allows for increased budget amounts and flexible funding modalities on the basis of the following key objectives:

i. Meaningful civil society and private sector participation (including access to funding for civil society);

ii. Enhanced CCM capacity for program oversight;

iii. Improved incentives to harmonize and align with national structures;

iv. Improved capacity to implement the Gender Equality Strategy and the Sexual Orientation and Gender Identify Strategy;

v. Introduction of performance-based funding for CCMs;

vi. Improved measurability and transparency of CCM performance;

vii. Enhanced country ownership; and

viii. Encouraging continued multi-stakeholder donor support to CCMs.

The Board delegates authority to the Portfolio Committee (PC) to approve at its 12th Meeting (September 2009) a revised policy for funding for CCMs based upon:

i. Linking funding to function;

ii. Accountability through a robust performance framework;

iii. Strategic objectives and performance targets expressed in workplans and budgets;

iv. Different country contexts and needs;

v. Incorporating CCM best practices; and

vi. Rigorous oversight mechanisms including Local Fund Agent (LFA) verification as appropriate.

The current funding model (GF/B16/DP19) continues to apply until PC approval of the fully defined revised policy, which is expected to take effect in January 2010.

The annual budget for CCM funding will be subject to approval by the Board as part of the regular budgetary process under the oversight of the Finance and Audit Committee (FAC). The financial implications of the proposed CCM funding model are estimated to be approximately US$ 8 million in 2010 (a maximum increase of US$ 2 million over the US$ 6 million CCM budget in 2009) and US$ 12 million in 2011.

The Board also requests the Secretariat to conduct a review of the CCM Guidelines to clarify the role of CCMs and, as appropriate, to recommend amendments to the CCM Guidelines in time for the

Twentieth Board Meeting (November 2009). The review should take into consideration the recommendations of the Five Year Evaluation, lessons learned and best practice as identified in various CCM studies.

In developing the revised funding policy and reviewing the CCM Guidelines the Secretariat shall engage in a broad consultative process.

Budgetary Implications

The budgetary implications of this decision are estimated at approximately US$ 250,000 in 2009 for consultations, meetings and professional fees. The Secretariat will endeavor to absorb the incremental costs in 2009 by making commensurate savings within the already approved budget.