GF/B23/DP28
Approved by the Board on: 12 May 2011
Communication of Losses and Recoveries arising from OIG Audits and Investigations
As outlined in GF/B23/DP24, the Board reiterates its full commitment to transparency, and to the independence of the Office of the Inspector General within the Global Fund.
The Board recognizes the need to have clear, consistent and contextualized information regarding the status of losses identified from OIG audits and investigations, as well as the status of efforts to recover losses, which can then be made public.
Accordingly, the Board requests the Global Fund Secretariat and the OIG, under the oversight of FAC, to jointly publish before each regular scheduled meeting of the Board, a Losses & Recoveries Report ("Report") containing background information and an updated table in the format outlined in Attachment 1 to GF/B23/6.
The Board requests the FAC to:
- Oversee the process to create/update this report and table.
- Ensure requests for clarifications are addressed to their satisfaction.
- Report to the Board on their oversight of this process.
The table shall only contain information on identified losses when:
- The principle of country ownership has been respected by notifying the Country Coordinating Mechanism (CCM) and the entities involved, of the details of the losses claimed, where they have been provided with appropriate time to respond, and this response is incorporated by the OIG in the publicly available reports.
- The details of losses identified have been submitted to the Global Fund Secretariat and comments have been considered by the OIG.
- The Global Fund‟s Legal Counsel has made a determination that the Global Fund is entitled to make a claim for recovery against an entity based on the work of the OIG.
- These figures have been made public, i.e. the OIG has reported a number either through a specific public report or through the OIG Progress report to the Board which will also be made public, or the OIG has notified the FAC in writing.
The usefulness of the application of the Losses & Recoveries Report for information sharing and communication will be reviewed by FAC before the second Global Fund Board meeting of 2012.
The Board requests that the High Level Independent Review Panel on Fiduciary Controls and Oversight Mechanisms consider and provide guidance on the issues surrounding the use of a denominator to serve as a communication tool regarding the scale and evolution of losses in Global Fund supported programs, as part of their interim report.
Budgetary Implications
This decision does not have material budgetary implications for the 2011 Operating Expenses Budget.