GF/B21/EDP20
Approved by the Board on: 10 September 2010
Multi-Year Contributions and Promissory Notes from Private Donors
The Board refers to its decision at its Twenty-First Meeting, which requested the Finance and Audit Committee (FAC) to conduct a review of the Global Fund Comprehensive Funding Policy (CFP) (GF/B21/DP13). It also notes the issues raised in the report of the FAC Working Group on the Review of the Comprehensive Funding Policy (GF/FAC15/08) and its associated annexes.
The Board notes the importance of increasing the level of assurance and predictability of donor funding to the Global Fund, promoting inter-donor equity and ensuring that donor funding is used as effectively as possible for the benefit of people in need. In this context, the Board notes the need for formalization of donor commitments made through the replenishment process.
The Board decides that in order to increase the level of assurance and predictability of donor commitments following the announcement of pledges, while taking into consideration the budgetary systems of individual donors, the Secretariat should seek to conclude multi-year contribution agreements between individual donors and the Global Fund. The Board agrees that such multi-year contribution agreements should, as appropriate, be developed on the basis of the principles outlined in GF/FAC15/08 Annex 3.
The Board notes that the conclusion of multi-year contribution agreements does not require amendment to the CFP. However, the FAC and the Working Group will pursue the review of the CFP to ensure donor funding is used as effectively as possible for the benefit of people in need, while maintaining appropriate levels of financial assurance. The FAC will present any recommended changes thereto, beyond those set out below, to the Board for decision at its Twenty-Second Meeting.
The Board notes Annex 5 to GF/FAC15/08, entitled "The CFP and Promissory Notes from Private Donors", and decides to replace paragraph 4 of the CFP as follows:
The Global Fund shall consider as assets for the purposes of entering into grant agreements the following: cash; promissory notes or similar obligations issued by the government of a sovereign state (or its designated depository); and, subject to approval by the Finance and Audit Committee, promissory notes or similar obligations issued by private donors. For these purposes, promissory notes and similar obligations shall be non-negotiable, non-interest bearing and payable at par value to the account of the Global Fund in the designated depository on demand or in accordance with an encashment schedule agreed on between the contributor and the Secretariat.