The Global Fund partnership includes many stakeholders. Fundamental to this partnership are the organizations we rely on to implement the grants, known as Principal Recipients.
As a financing institution, our responsibility is to support countries in their efforts to fight AIDS, tuberculosis and malaria. We provide the financing, but we rely on local expertise for the implementation. Each grant is implemented by a Principal Recipient, which can be any type of organization, from government ministry to community-based organization to private sector entity.
In most cases, Principal Recipients then disburse funds to other, smaller organizations who serve as sub-recipients or even sub-sub-recipients. In this way, financing effectively cascades down to smaller organizations, and programs can be carried out to reach those populations or groups which a government may not able to reach effectively.
Accountability, transparency and effectiveness are key. Principal Recipients are selected by the Country Coordinating Mechanism and assessed by the Local Fund Agent in that country for their financial, managerial and programmatic capacities. Once approved, Principal Recipients sign a grant agreement with the Global Fund which includes a detailed budget, a procurement and supply management plan, a performance framework, and a workplan or implementation map.
At every step of the process, recipients are expected to be able to demonstrate results and to prove exactly how the grant money has been used.
Principal Recipients select sub-recipients through a national, open and transparent process, and are expected to assess the capacity of potential sub-recipients to carry out the work as well as to meet the required standards of accountability and transparency.