Board Decisions

GF/B02/DP08

Approved by the Board on: 22 April 2002

Phase one agreement

1. Guidelines:
   
   1. The Board decided to approve the Phase one agreement.
   2. The Board requested the Secretariat to seek clarity from the Trustee on the management of exchange rate risks as well as the request for different accounts, and that the donors be asked to clarify the intention to earmark funds.
   3. The Board decided to request the CCMs in consultation with the Secretariat and the Trustee to identify a suitable, independent, credible and experienced partner organization at country level to assure readiness for implementation and adequate programmatic, financial and related standards; and thereafter to oversee the financial accountability and programmatic implementation of the primary recipients (which could be more than one). This organization will not manage or implement the program. Implementation will be the responsibility of the local country partners identified in the proposal by the CCM.
   4. The Board requested the Secretariat in consultation with the Trustee and other partners to define the standards for the Global Fund on financial accountability and programmatic implementation requirements at the country level, and stressed the importance of linkages to procurement policy.
   5. The Board agreed to grant the Executive Director authority to enter into agreement with the identified partner organization at country level on the basis of the above CCM process in consultation with the Trustee on accountability standards.
   6. The country-level arrangements should, if possible, build on already existing structures in country and leverage new private and public partnerships. In addition, the arrangement should aim at increasing local capacity and ensuring local ownership
   7. The Board will be continuously informed as arrangements with in-country partner organizations are made in each country.
   8. The Board agreed that, in parallel to the immediate steps described above, the Secretariat in consultation with the Trustee and other partners should develop and specify the Global Fund’s long term fiduciary requirements corresponding to international standards.
   9. The outcome of the discussions between the Secretariat and the Trustee concerning long-term fiduciary requirements will be reported at the next Board meeting.
2. Monitoring and evaluation:
   
   1. The Board endorsed the inclusion of monitoring and evaluation as integral components of the grant agreement negotiations for approved proposals, noting the likely need for additional information on monitoring and evaluation to be provided by applicants.
   2. The Board requested that monitoring and evaluation revisions to the guidelines for proposals and proposal form be considered by the Sub-working Group on Proposals (former sub-working Group on TRP) with input from the Monitoring & Evaluation and Results-Based Disbursement Working Group (MER).
3. Procurement:
   
   1. The Board instructed the Secretariat to solicit additional information on approved applicants' procurement and distribution systems and to review this information prior to the approval of disbursement in accordance with other pre-disbursement arrangements.
   2. The Board instructed the Executive Director to create a Procurement Task Force – consisting of a limited number of technical experts from multiple sectors, including UN agencies, the private sector and civil society – acting in their personal capacity and selected based on suggestions by and the approval of the Board – and to instruct this Task Force to provide the Board by its third meeting with recommendations on possible procurement policies. The Task Force will be chaired by two members of the Board and invite other Board members to voluntarily participate. The Task Force may draw on other technical expertise as necessary and on an ongoing basis."