Office of the Inspector General

Advisory on the Evolution of Local Fund Agents

31 October 2022

Evolution of Local Fund Agents Approaches for Country-Level Monitoring
GF-OIG-22-016
31 October 2022
download in English

Local Fund Agents (LFAs) are fundamental to the Global Fund operating model, representing the key provider of monitoring and oversight of in-country implementer activities for the Secretariat. Since the Global Fund does not maintain country offices, LFAs act as its “eyes and ears” on the ground. LFAs provide essential country information and insights to Country Teams to better manage implementation risks, facilitate grant management activities as well as support effective decision-making.

The LFA model is a unique mechanism that has served the organization well over time, proving especially crucial during the pandemic since most travel was prohibited for the Global Fund Country Teams. While the LFA model is considered effective and value-adding, feedback from several Secretariat teams in recent years and various OIG and other reviews, signaled that there are opportunities to further evolve LFA services and their approach.

The OIG’s conclusion from its assessment is that the current LFA approach is overall fit-for-purpose, with some key strengths and improvement opportunities identified. There are in particular three key areas for improvement to consider for the next funding cycle:

  1. Further optimize the use of LFA services in select areas, both in the design and implementation of Global Fund supported programs
  2. Streamline the approach to LFA’s financial monitoring by leveraging the work of other providers in line with risk appetite
  3. Strengthen and harmonize the maturity of Country Teams in risk management and further clarify the role of second-line functions to better leverage LFA services