Message from the Board Leadership - Governance Review
28 September 2018
As Chair and Vice-Chair of the Global Fund Board, we welcome the advisory review of the Office of the Inspector General on governance as a valuable source of guidance and constant improvement. The review highlights significant progress in governance structures and processes that has been implemented since the previous review in 2014 ensuring more effective and robust Board governance. Further progress has been made since the OIG Advisory Report on the recommendations.
In particular, the OIG review recognizes an enhanced committee structure, including the creation of the Ethics and Governance Committee; a strengthened governance process, with a standardized Onboarding program to prepare governance officials to assume their responsibilities more effectively; embedding a competency-based selection process for committee members; and more flexibility to better address the needs of implementing constituencies in order to maximize their engagement and representation at the Board.
The advisory report also identified a need to move beyond process and focus on broader structural issues, such as long-term cultural changes to the Board. To address this issue, the Governance Action Plan was developed under the oversight of the EGC and structured around these main focus areas: Board culture, conflicts of interest, and succession planning and selection processes. Some essential actions of the Governance Action Plan have already been implemented:
- A new non-voting seat to give a voice at the Board to additional public donors who are not part of an existing constituency;
- Training on ethics and mitigation of actual or perceived conflicts of interest;
- An enhanced selection process for both Board and committee leadership proactively addressing competency, institutional memory, and conflict of interest;
- A sharper focus by Board and committees on decision-making and strategic issues most relevant to achieve the goals of the Global Fund Strategy 2017-2022.
Among other actions taken since the review, the Board approved the Risk Appetite Framework, including Risk Appetite, and Target Risk levels, addressing a major OIG recommendation. The documentation for Board meetings also has become progressively more focused and reduced in amount.
The Global Fund is constantly evolving to improve its impact for the people affected by the diseases and its progress toward ending the epidemics. The OIG is a central and important part of these efforts. As the OIG advisory review and our actions in response clearly demonstrate, collectively we continue to improve the effectiveness of our governance structures, processes and practices.
Respectfully,
Aida Kurtovic
Chair of the Global Fund Board
Amb. John Simon
Vice-Chair of the Global Fund Board