Twenty-Fifth Board Meeting

Mr. Alvaro Bermejo from the Developed Country NGO constituency is designated as rapporteur for the Twenty-Fifth Board Meeting.

The agenda for the Twenty-Fifth Board Meeting (GF/B25/1) is approved.

The report of the Twenty-Third Board Meeting (GF/B25/10) is approved.

The report of the Twenty-Fourth Board Meeting (GF/B25/11) is approved.

<p>The Board refers to its decision on the Global Fund Strategy 2012-2016 Framework (GF/B23/DP14) and:</p> <ol> <li>Approves the Global Fund Strategy Framework 2012-2016 (GF/B25/7/a) (the "Strategy Framework"), endorses in principle the Strategic Actions articulated in the Global Fund Strategy 2012-2016 (GF/B25/7/b) (the "Strategy Document"), and affirms its vision of a more vibrant and engaged institution working more closely with countries to achieve impact;<br /><br /></li> <li>Requests the Secretariat to commence work to implement the strategy as set forth in the Strategy Framework and the Strategy Document; and<br /><br /></li> <li>Requests the Strategy, Investment and Impact Committee to:<br /><br />i. oversee the implementation of the strategy;<br /><br />ii. review and recommend as appropriate any related changes in policy or operations that require Board discussion or approval (or refer other changes as appropriate to the Coordinating Group for attention by other committees); and<br /><br />iii. provide the Board with a progress update on the implementation of the Strategic Actions at the Twenty-Seventh Board Meeting, and regularly thereafter.</li> </ol>

<ol> <li>To transform the Global Fund into a more efficient and effective organization, the Board approves the Consolidated Transformation Plan presented in the Board paper titled "Consolidated Transformation Plan" (GF/B25/4, Revision 1 and Attachment 1, Revision 1) to address and implement the recommendations of the High-Level Independent Panel (the "HLP") that were adopted at the Twenty-Fourth Board Meeting and to integrate the Plan for Comprehensive Reform which was endorsed at the Twenty-Third Board Meeting. The Consolidated Transformation Plan sets objectives, deliverables and timelines to transform through the following elements:<br /><br /> <ul> <li>a. Transforming Resource Allocation, Investment, Results Measurement and Evaluation;<br /><br /></li> <li>b. Transforming Risk Management;<br /><br /></li> <li>c. Transforming Grant Management including working with partners;<br /><br /></li> <li>d. Transforming Secretariat Organization, Management and Culture;<br /><br /></li> <li>e. Transforming Board Governance; and<br /><br /></li> <li>f. Transforming Resource Mobilization.<br /><br /></li> </ul> </li> <li>The Board requests the Secretariat, the OIG and the Board Chair and Vice Chair to proceed with implementation, and to provide a comprehensive progress update at the two regular Board meetings in the 2012 calendar year.<br /><br /></li> <li>A review to evaluate the success of the Consolidated Transformation Plan and identify any adjustments that may be required will be conducted after one year of full implementation. The results of this review shall be presented to the Board at its first regular meeting in the 2013 calendar year.<br /><br /></li> <li>The budgetary implications of the Consolidated Transformation Plan will be part of the 2012 Operating Expenses Budget. The Board requests the Secretariat to provide, by 31 January 2012, a detailed costing of the Consolidated Transformation Plan based on the estimated funds, based on the principles of cost neutrality, specifying from which de-prioritized activities the resources will come.</li> </ol>

<p>The Board notes that:</p> <ul> <li>A. The Board Chair and Board Vice-Chair were requested by the Board to lead and oversee a governance reform initiative based on recommendations from the Comprehensive Reform Working Group at the Twenty-Third Board meeting. Drawing from an extensive consultation process, in September 2011 the Chair and Vice-Chair provided the Board with a summary of the emerging governance reform recommendations. These governance recommendations were further complemented by the release of the findings and recommendations of the High-Level Independent Review Panel.<br /><br /></li> <li>B. On the basis of these recommendations, a number of governance reform decisions were undertaken by the Board at its Twenty-Fourth meeting, including the replacement of the four standing committees with three new standing committees and establishment of a Coordinating Group comprised of Board and Committee chairs and vice-chairs.</li> </ul> <p>To further transform the governance of the Global Fund, the Board decides as follows:</p> <ol> <li>The Board approves the revised Bylaws of the Global Fund as set out in Attachment 1 to the paper titled "Governance Reforms‟, GF/B25/5 ("the Board Governance Paper"), which shall supersede the existing Bylaws of the Global Fund as last amended by the Board on 2 March 2011(GF/B22/EDP/10).<br /><br /></li> <li>The Board approves a Charter for each of the new standing Committees of the Board, namely:<br /><br />a. the Strategy, Investment and Impact Committee (as set out at Attachment 2 to the Board Governance Paper);<br /><br />b. the Finance and Operational Performance Committee (as set out at Attachment 3 to the Board Governance Paper); and<br /><br />c. the Audit and Ethics Committee (as set out at Attachment 4 to the Board Governance Paper).<br />These Charters shall supersede the standing committees‟ terms of reference as last amended at the Nineteenth Board Meeting (GF/B19/DP8) and ad hoc committees‟ terms of reference.<br /><br /></li> <li>The Board approves the Terms of Reference for the Coordinating Group as set out at Attachment 5 of the Board Governance Paper.<br /><br /></li> <li>The Board approves the Operating Procedures of the Board and Committees of the Global Fund (as set out at Attachment 6, Revision 1 of the Board Governance Paper), which shall supersede both the Board Operating Procedures as last amended on 2 March 2011 (GF/B22/EDP/10) and the Committee Rules and Procedures as last amended at the Twentieth Board Meeting.<br /><br /></li> <li>The Board authorizes the Secretariat to undertake any necessary consequential modifications to existing policies, processes and procedures in order to reflect the amendments to the governance materials of the Global Fund as set out in this decision point.<br /><br /></li> <li>The amendments to the governance materials of the Global Fund as set out in this decision point shall have immediate effect.</li> </ol> <p>The Board notes that this decision point concludes the first phase of the governance reform program initiated in May 2011.</p> <p>The Board requests the Board Chair and Board Vice-Chair to proceed to propose further governance reforms as appropriate and present findings and recommendations for decision at the first Board meeting of the 2012 calendar year.</p>

<p>The Board decides to extend the terms of current TERG members Minister Dorothée Kinde Gazard, Prof. Wim Van Damme, Mr. Stein-Erik Kruse, Dr. Kumaraswami Vasanthapuram, and Dr. Lixia Wang until the completion of the recruitment and selection of new TERG members, as required under the TERG Terms of Reference (GF/B22/4, Annex 5).</p>

<p>The Board:</p> <ol> <li>Approves the Global Fund Evaluation Strategy 2012-2016 (as set out in Annex 1 to the Report of the Policy and Strategy Committee (GF/B25/12));<br /><br /></li> <li>Acknowledges that the Global Fund Evaluation Strategy 2012-2016 may require additional revisions in order to ensure consistency with the final Global Fund Strategy 2012-2016, as approved under GF/B25/DP5, and requests that the Secretariat, working together with the TERG, update the Global Fund Evaluation Strategy 2012-2016 as may be required;<br /><br /></li> <li>Requests the TERG to develop an annual implementation plan for the Global Fund Evaluation Strategy 2012-2016; and<br /><br /></li> <li>Requests the TERG, through the new Strategy, Investment and Impact Committee, to submit a revised Global Fund Evaluation Strategy 2012-2016 and the first annual implementation plan to the Twenty-Sixth Board Meeting for approval, and to submit subsequent annual implementation plans thereafter.</li> </ol>

<p>The Board:</p> <ol> <li>Refers to the Policy and Strategy Committee's endorsement of the findings of the Independent Review of the Key Performance Indicator (KPI) Framework (GF/PSC16/07), and requests the Secretariat to revise the KPI Framework in light of that Independent Review, the High-Level Panel recommendations (approved under GF/B24/DP3), and the Global Fund Strategy 2012-2016 (as approved under GF/B25/DP5);<br /><br /></li> <li>Requests the Secretariat to submit the revised KPI Framework to the Board for a decision to approve any revisions; and<br /><br /></li> <li>Requests the Secretariat to allocate sufficient resources under the KPI Framework to allow appropriate reporting to Board Committees relating to the KPIs under their oversight function.</li> </ol>

<ol> <li>The Board refers to its decision on "TRP Recruitment 2010-2012" (B21/EDP/18) appointing the membership of the Technical Review Panel (TRP) Support Group, comprising the pool of experts from which TRP membership will be replenished in the event of TRP vacancies as they may arise. The Board also notes that each of the TRP Support Group members (as presented in Annex 1 of the Report B21/EDP/18) have been recommended by the Portfolio and Implementation Committee and the Executive Director of the Global Fund Secretariat. The Board authorizes the TRP Chair and TRP Vice-Chairs to appoint replacements for vacancies in the Permanent TRP and Alternate members from members of the TRP Support Group.<br /><br /></li> <li>The Board authorizes the TRP Chair and TRP Vice-Chairs to add members to the TRP as required for a given round of proposals. Such additional members shall be selected from Alternate Members, and where necessary due to member unavailability, from former TRP Members.<br /><br /></li> <li>When additional members are added to the TRP, the TRP leadership shall report such additions to the relevant Board Committee.<br /><br /></li> <li>The Terms of Reference of the TRP shall be amended accordingly.</li> </ol>

The Board approves the adoption of a Voluntary Dispute Resolution Process as described in GF/FAC17/23 to provide Principal Recipients of Grant funds with a non-binding alternative to arbitration to resolve disputes related to OIG final audit or inspection reports.

<p>The Board approves the Global Fund Medium-Term Human Resources Strategy as described in GF/FAC17/17.</p>

<ol><li>The Board approves the appointment of Todd Summers and Shaun Mellors respectively as Chair and Vice-Chair of the Strategy, Investment and Impact Committee to serve two-year terms, or until the appointment of their respective successors;<br/><br/></li><li>The Board approves the appointment of Viorel Soltan and John Monahan respectively as Chair and Vice-Chair of the Finance and Operational Performance Committee to serve two-year terms, or until the appointment of their respective successors; and<br/><br/></li><li>The Board approves the appointment of Brian Brink, Claude Rubinowicz and Karlo Boras to serve as members of the Audit and Ethics Committee, occupying those Committee seats reserved for Board constituencies, and Brian Brink as Vice-Chair of the Audit and Ethics Committee to serve two-year terms, or until the appointment of their respective successors. The remaining four seats on the Audit and Ethics Committee reserved for independent members, including that of the Committee Chair, shall be filled by the Board in due course based on the nominations received from the Coordinating Group.</li></ol>

<ol><li>The Board approves a budget ceiling for the 2012 Operating Expenses Budget in the amount of US$ 369.9 million, as set out in Attachment 1 to the Report of the Finance and Audit Committee ("FAC") to the Twenty-Fifth Board Meeting (GF/B25/14), based on the exchange rate outlined in Attachment 1 of the Report of the FAC (GF/B25/14) and subject to the Secretariat providing a budget paper to be presented to the Finance and Operational Performance Committee and shared with the Board before the end of the calendar year 2011.<br/><br/></li><li>The Secretariat shall enter into a forward contract with a reputable bank and shall notify the Board of the budget amount at the exchange rate determined on the date of the signature of the forward contract in a paper submitted to the Board. The new amount shall thus be deemed to be the approved Operating Expenses Budget for 2012.<br/><br/></li><li>The use of any amount in the US$ 3.0 million contingency within the OIG budget for 2012 is conditional upon the advance approval of the Finance and Operational Performance Committee on the recommendation of the Audit and Ethics Committee.</li></ol>

<p>The Board:</p> <ol> <li>In light of current resource constraints, adopts the measures identified in Annex 1 in order to make available resources to provide for continuation of essential prevention, treatment and/or care services by current grantees.</li> <li>Agrees to establish a Transitional Funding Mechanism as described in Annex 2 in order to provide this continuation funding.</li> <li>Decides to convert Round 11 into a new funding opportunity consistent with the new Global Fund 2012-2016 Strategy, with a view towards funding proposals under the new model beginning in early 2014. Round 11 proposals that are updated as appropriate may form the basis for an application for the next funding opportunity.</li> <li>Directs the Secretariat to work with countries and partners to develop full expressions of demand for programs for the three diseases and related health systems and civil society strengthening investments that are consistent with the new strategic approach envisioned in the new Strategy with such information to be available for the Mid-Term Replenishment.</li> <li>Urgently requests donors to consider measures to increase and accelerate funding, and implementing country governments, especially those from middle-income countries, to increase funding for the three diseases and related health investments.</li> <li>Delegates to the Board Chair, in consultation with the Vice-Chair, authority to make or delegate any additional decisions necessary to implement the above. The Board Chair shall report to the Board on any such decisions taken.</li> </ol> <p>Annex 1: Financial Measures</p> <ol> <li>Effective 1 January 2012, a revised application and approval process for renewals will be employed to ensure strategic investments, as described in “Options for Modification of the Application, Renewal and Approval Processes for New and Existing Investments,” (GF/B25/8).</li> <li>Effective 1 January 2012, the following eligibility criteria for renewals applications will become effective: <ol type="a"> <li>Group of 20 (G-20) upper middle income countries with less than an extreme disease burden will no longer be eligible for renewals of grants; and</li> <li>The counterpart financing and focus of proposal requirements under the Policy on Eligibility, Counterpart Financing and Prioritization will apply.</li> </ol> </li> <li>Transitional measures as described in GF/B25/8 will be made available to countries impacted by the above changes to eligibility.</li> <li>The one-year Grace Period provision for changes in country income classification will be rescinded for both new proposals and grant renewals.</li> <li>The TRP will support the renewals process by providing independent technical expertise to the Secretariat panel making recommendations on grant renewals.</li> <li>The total funding approved for grant renewals for Low Income Countries will be no less than 55% of any annual funding window.</li> <li>Additional Commitments (as defined in the Comprehensive Funding Policy) longer than one year shall be committed in annual tranches for renewals of existing grants.</li> </ol> <p>Annex 2: Transitional Funding Mechanism</p> <p>Scope:</p> <ol> <li>Grantees may apply for up to two years of funding for continuation of essential prevention, treatment and/or care programs currently financed by the Global Fund that will otherwise face disruption between 1 January 2012 and 31 March 2014.</li> <li>The Secretariat, in consultation with partners and the TRP, will develop guidance on components of “essential prevention, treatment and/or care.”</li> <li>Applicants must show that there are no alternative sources of funding available to fund the activities proposed.</li> <li>The Policy on Eligibility, Counterpart Financing and Prioritization will apply.</li> <li>Applications will be due 31 March 2012.</li> <li>Second Wave NSA applications will also be subject to the criteria above.</li> <li>The Health Systems Funding Platform will be suspended until the new funding model is operational.</li> </ol> <p>Review and Approval Process</p> <ol> <li>The TRP will assess applications for the Transitional Funding Mechanism in accordance with the criteria in its Terms of Reference and will also determine whether applicants demonstrate a risk of “disruption of essential prevention, treatment and/or care” services and that the activities cannot be funded by alternative sources of funding.</li> <li>The Board or an appropriate committee, as determined by the Board Chair, will endorse the TRP‟s recommendations, and provide guidance on prioritization if demand exceeds supply.</li> <li>Applications will be approved on a rolling basis. Funds may be committed in staggered commitments so as to minimize disruption of activities.</li> </ol> <p>Implementation</p> <ol> <li>If programs face disruption before funds become available under the Transitional Funding Mechanism, the Secretariat (under the direction of the Board Chair) will develop a bridge funding mechanism to cover the disruption for the minimum amount and time necessary.</li> </ol>

<p>The Board:</p> <ol> <li>Approves additional funding for the Phase 2 period for the proposals listed in Table 1 in the amounts indicated for each proposal, with the clear understanding that the amounts approved are upper ceilings rather than final funding amounts, and based on an understanding that the Secretariat shall pursue on-going implementation arrangements for each proposal consistent with the recommendations set forth in its Grant Score Card. Approval is also subject to Paragraph 7 of Annex 1 to the Decision Point Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16).^[1]</li> <li>Reaffirms that the maximum funding amount for Phase 2 of each proposal shall be the sum of the amount approved by this decision and the amount of any funds approved for Phase 1 which have not been disbursed by the Global Fund at the end of the Phase 1 period.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 475,214,596 for the following grants: CAF-708-G05-H ; DMR-202-G01-H ; MR-202-G04-H ; GMB-809-G05-H ; GMB-809-G06-H ; LSO-809-G06-H ; MLW-102-G01-H ; PNG-809-G04-M ; PNG-809-G05-M ; PNG-809-G06-M ; TP-809-G04-T ; TNZ-809-G11-M ; TNZ-809-G12-H ; TGO-809-G08-H ; TGO-809-G09-H ; UGD-708-G08-M ; UZB-809-G05-T ; PSE-809-G02-T</p>

<p>The Board:</p> <ol> <li>Approves additional funding for the Phase 2 period for the proposals listed in Table 1 in the amounts indicated for each proposal, with the clear understanding that the amounts approved are upper ceilings rather than final funding amounts, and based on an understanding that the Secretariat shall pursue on-going implementation arrangements for each proposal consistent with the recommendations set forth in its Grant Score Card. Approval is also subject to Paragraph 7 of Annex 1 to the Decision Point Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16).^[1]</li> <li>Reaffirms that the maximum funding amount for Phase 2 of each proposal shall be the sum of the amount approved by this decision and the amount of any funds approved for Phase 1 which have not been disbursed by the Global Fund at the end of the Phase 1 period.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$282,752,190 for the following grants: BLR-809-G03-H ; BRN-809-G07-H ; IND-809-G13-M ; IND-809-G14-M ; KAZ-809-G04-T ; NIC-809-G06-H ; PHL-202-G09-M ; PHL-202-G11-T ; SOM-809-G06-H ; ZIM-809-G14-S ; ZIM-809-G13-M</p>

<p>The Board notes the decision of the Phase 2 Panel to provisionally approve funding of a ceiling amount of USD 3,547,057 for two years for Continuity of Services for the Mauritania Round 5 HIV (MRT-506-G03-H) grant. The Board further notes that while incremental funding is not required due to sufficient funds within the expired grant, the Phase 2 Panel has approved Continuity of Services subject to approval by the Board of an exception to the standard methodology under the Continuity of Services Policy for quantification of eligible patients. Based upon the information presented by the Secretariat, the Board approves the proposed exception so as to permit financing for continuation of life-saving treatment for the <span style="font-size: 12px; line-height: 1.5;">1,631 patients receiving treatment as of the Ending Date of the Grant.</span></p><p>This decision does not have material budgetary implications for the 2011 Operating Expenses Budget.</p>

<p>The Board decides to extend the timeline for the completion of the condition requiring the Principal Recipient to deliver a detailed and costed Action Plan to address and improve the diagnosis of suspected malaria cases and reduce the current trends in over prescription of ACTs <span style="font-size: 12px; line-height: 1.5;">at health facility level from 21 October 2011 to 21 January 2012.</span></p><p>This decision does not have material budgetary implications for the 2011 Operating Expenses <span style="font-size: 12px; line-height: 1.5;">Budget.</span></p>

<p>The Board:</p><ol><li>Expresses its gratitude to the out-going Committee Chairs and Vice-Chairs for their leadership and service to the Global Fund.<br/><br/></li><li>Notes the nominations presented by the Board Chair and Vice-Chair for membership of the Finance and Operational Performance Committee and the Strategy, Investment and Impact Committee, each identified through reference to the key competencies and responsibilities required for membership in such Committees.<br/><br/></li><li>Approves the appointment of the following individuals as representatives of their respective constituencies to the Finance and Operational Performance Committee to serve as Committee Members for two-year terms, or until the appointment of their respective successors:<br/><br/><ul><li>Pasqualino Procacci, Italy and Spain</li><li>Ann Lion, Private Sector</li><li>Tom Hunstad, Point Seven</li><li>Carlton Evans, United Kingdom and Australia</li><li>Jan Paehler, European Commission</li><li>Allan Ragi, Developing Country NGOs </li><li>Juliette Bynoe-Sutherland, Latin America and the Caribbean</li><li>Joseph Niangue, West and Central Africa</li><li>Bal Suvedi, South East Asia<br/><br/></li></ul></li><li>Approves the appointment of the following individuals as non-voting, ex-officio members of the Finance and Operational Performance Committee to serve for two-year terms, or until the appointment of their respective successors:<br/><br/><ul><li>Denis Broun, Partners</li><li>Veronique Bishop, World Bank<br/><br/></li></ul></li><li>Approves the appointment of the following individuals as representatives of their respective constituencies to the Strategy, Investment, and Impact Committee to serve as Committee Members for two-year terms, or until the appointment of their respective successors:<br/><br/><ul><li>David Stevenson, Germany (Canada, Switzerland)</li><li>Mireille Guigaz, France</li><li>Masaki Noke, Japan</li><li>Julia Martin, USA</li><li>Kieran Daly, Private Foundations</li><li>Joanne Carter, Developed Country NGOs</li><li>Lucy Cheshire, Communities</li><li>Narciso Matos, East and Southern Africa</li><li>Ren Minghui, Western Pacific Region</li><li>Maksut Kulzhanov, Eastern Europe and Central Asia<br/><br/></li></ul></li><li>Approves the appointment of the following individuals as non-voting, ex-officio members of the Strategy, Investment, and Impact Committee to serve for two-year terms, or until the appointment of their respective successors: <br/><br/><ul><li>Bernard Schwartlander, UNAIDS</li><li>Winnie Mpanju-Shumbusho, WHO<br/><br/></li></ul></li><li>Delegates to the Board Chair and Vice-Chair the authority to fill, in consultation with the Chair and Vice-Chair of the Finance and Operational Performance Committee, the current vacancy on that committee through appointment of a suitably qualified representative of the Eastern Mediterranean constituency, to serve as a Committee Member for the remaining period of the two year term for the currently vacant seat. </li></ol>

<p>The Board:</p> <ol> <li>Approves additional funding for the Phase 2 period for the proposals listed in Table 1 in the amounts indicated for each proposal, with the clear understanding that the amounts approved are upper ceilings rather than final funding amounts, and based on an understanding that the Secretariat shall pursue on-going implementation arrangements for each proposal consistent with the recommendations set forth in its Grant Score Card. Approval is also subject to Paragraph 7 of Annex 1 to the Decision Point Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16).^[1]</li> <li>Reaffirms that the maximum funding amount for Phase 2 of each proposal shall be the sum of the amount approved by this decision and the amount of any funds approved for Phase 1 which have not been disbursed by the Global Fund at the end of the Phase 1 period.</li> </ol> <p><span style="font-size: 12px; line-height: 1.5;">See attached tabledetailing total recommended funding amount of US$ 146,478,569 for the following grants: BRN-809-G08-H ; ZAR-809-G07-M ; ZAR-810-G08-M ; ECU-809-G04-M ; ECU-809-G05-M ; PER-809-G06-T ; PER-809-G07-T</span></p>

<p>Referring to its earlier decision on 19 December 2011 (B25/EDP/02), the Board:</p> <ol> <li>Notes that a transcription error was made in the reporting of the amounts requested and the Secretariat’s recommendation for incremental funding for the Phase 2 period for the Zimbabwe grants numbered ZIM-809-G14-S and ZIM-809-G13-M listed in decision point B25/EDP/02;</li> <li>Decides to amend its funding decision for the two Zimbabwe grants numbered ZIM-809-G14-S and ZIM-809-G13-M, by replacing the earlier approved amounts with the corrected funding amounts as set out in Table 1, with the clear understanding that the amounts approved are upper ceilings rather than final funding amounts, and based on an understanding that the Secretariat shall pursue ongoing implementation arrangements for each proposal consistent with the recommendations set forth in its Grant Scorecard. Approval is also subject to Paragraph 7 of Annex 1 to the Decision Point Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16).^[1]</li> <li>Reaffirms that the maximum funding amount for Phase 2 of each of affected proposals shall be the sum of the amount approved by this decision and the amount of any funds approved for Phase 1 which have not been disbursed by the Global Fund at the end of the Phase 1 period.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$282,752,190 for the following grants: BLR-809-G03-H ; BRN-809-G07-H ; IND-809-G13-M ; IND-809-G14-M ; KAZ-809-G04-T ; NIC-809-G06-H ; PHL-202-G09-M ; PHL-202-G11-T ; SOM-809-G06-H ; ZIM-809-G14-S ; ZIM-809-G13-M</p>

<p>The Board:</p><ol><li>Acknowledges the decision of Board Leadership, acting on the request of the Board and pursuant to a consultative process, to select and appoint Gabriel Jaramillo to the temporary position of General Manager of the Global Fund for a one-year term beginning 1 February 2012.</li><li>Decides that the General Manager will throughout his term exercise all of the powers and <span style="font-size: 12px; line-height: 1.5;">functions of the Executive Director, including the power to execute agreements on behalf of </span><span style="font-size: 12px; line-height: 1.5;">the Global Fund. The General Manager will report to the Board in relation to all his </span><span style="font-size: 12px; line-height: 1.5;">functions and for the management of the Secretariat.</span></li><li>Requests Board Leadership to oversee the activities of the General Manager, undertake periodic assessments of his performance, and report accordingly to the Board.</li><li>Requests the Secretariat to undertake any administrative actions necessary to facilitate the formal engagement of Gabriel Jaramillo as General Manager.</li></ol>

<p>The Board:</p> <ol> <li>Approves additional funding for the Phase 2 period for the proposals listed in Table 1 in the <span style="font-size: 12px; line-height: 1.5;">amounts indicated for each proposal, with the clear understanding that the amounts </span><span style="font-size: 12px; line-height: 1.5;">approved are upper ceilings rather than final funding amounts, and based on an </span><span style="font-size: 12px; line-height: 1.5;">understanding that the Secretariat shall pursue on-going implementation arrangements for </span><span style="font-size: 12px; line-height: 1.5;">each proposal consistent with the recommendations set forth in its Grant Score </span><span style="font-size: 12px; line-height: 1.5;">Card. Approval is also subject to Paragraph 7 of Annex 1 to the Decision Point Modification </span><span style="font-size: 12px; line-height: 1.5;">of Grant Renewals and Transition to New Funding (GF/B25/DP16).</span><sup style="font-family: inherit; font-style: inherit; font-weight: inherit;">[1]</sup></li> <li>Reaffirms that the maximum funding amount for Phase 2 of each proposal shall be the sum of the amount approved by this decision and the amount of any funds approved for Phase 1 which have not been disbursed by the Global Fund at the end of the Phase 1 period.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 1,654,675 for the following grant: KGZ-811-G09-M</p>

<p>The Board approves additional funding for two years for the Continuity of Services for the proposal listed in Table 2 and described in the Secretariat’s COS form, with the clear understanding that the amount approved is an upper ceiling rather than a final funding amount, and based on the understanding that the Secretariat shall pursue implementation arrangements <span style="font-size: 12px; line-height: 1.5;">for such proposal consistent with the recommendations set forth in the Secretariat’s COS form.</span></p><p>See attached tabledetailing total recommended funding amount of US$8,317,359 for the following grant: SSD-405-G05-H</p>

<p>The Board declines approval of additional funding for the Phase 2 period for the Round 8 Gabon HIV (GAB-809-G05-H) and the Multi-Country Africa RCC Malaria (MAF-202-G01-M-00) <span style="font-size: 12px; line-height: 1.5;">proposals.</span></p><p>See attached table.</p>

<ol> <li>The Board approves, on an exceptional basis, the following specific arrangements for the RUS-506-G05-H grant (“Grant”): <ol type="a"> <li>An application may be submitted for funding under the Bridge Funding Mechanism in the context of the Transitional Funding Mechanism (“BFM”), as well as to the Transitional Funding Mechanism (“TFM”);</li> <li>In assessing the TFM application, the relevant period for considering whether there has been a disruption of essential prevention, treatment and/or care programs financed by the Global Fund shall be 31 August 2011 to 31 March 2014 (inclusive); and</li> <li>In accordance with Decision Point GF/B25/DP16, the Secretariat shall provide appropriate BFM arrangements for the Grant up to 31 December 2012, when TFM funding is expected to come into effect.</li> </ol> </li> </ol>

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period^[1] for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grant.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 157,073, 590 for the following grants: BAN-M-NMCP ; BAN-M-BRAC ; TCD-810-G04-H ; TCD-810-G05-H ; TCD-810-G06-H ; ZAR-809-G10-H ; ZAR-810-G11-H ; ZAR-810-G12-H</p>

<p>The Board declines approval of additional funding for the next implementation period for them Round 8 Guyana HSS (GYA-809-G05-S) grant.</p><p>See attached table.</p>

The Board decides to extend the deadline for the signing of the Niger Round 10 Tuberculosis Proposal until such time as the Secretariat has established appropriate safeguards and implementation arrangements for the related grants. The Secretariat will report back to the Board or its relevant Committee when the grant is signed.

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period^[1] for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision for that grant and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by <span style="font-size: 12px; line-height: 1.5;">recipients under the grant.</span></li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 313,697,746 for the following grants: AFG-809-G09-M ; AFG-809-G10-M ; PRK-810-G01-M ; ZAR-810-G09-M ; MAL-809-G08-H ; ZIM-809-G11-H ; ZIM-809-G12-T </p>

<p>The Board approves additional funding for two years for the Continuity of Services for the proposal listed in Table 2 and described in the Secretariat’s COS form, with the clear understanding that the amount approved is an upper ceiling rather than a final funding amount, and based on the understanding that the Secretariat shall pursue implementation arrangements for such proposal consistent with the Secretariat’s recommendations.</p><p>See attached tabledetailing total recommended funding amount of US$419,941 for the following grant: ALB-506-G01-H</p>

<p>The Board notes that:</p> <ol> <li>In September 2011, the Board decided (GF/B24/DP3, entitled “High Level Independent Review Panel”) to form an Audit and Ethics Committee (“AEC”) comprised of seven members, four of whom would be independent of any constituency of the Board.<br /><br /></li> <li>In November 2011, the Board mandated the Coordinating Group (GF/B25/DP14, entitled “Appointment of Committee Leadership”) to provide nominations to the Board to fill the four independent member seats on the AEC, with one of those seats being for the Chair of the AEC.<br /><br /></li> <li>The Coordinating Group’s 27 March 2012 “Electronic Report” to the Board on the nominations process (GF/B25/ER11) recommended that the Board increase the number of independent AEC members from four persons to five in order to ensure that the AEC will have an appropriate level of expertise in its financial audit function, in addition to the three other necessary disciplines of forensic investigation, ethics, and legal and dispute resolution.</li> </ol> <p>The Board:</p> <ol> <li>Approves the increase in independent members of the AEC from four persons to five, to bring the full membership of the committee to eight.<br /><br /></li> <li>Amends the Charter of the Audit and Ethics Committee and the Board and Committee Operating Procedures in the manner set forth below with immediate effect:<br /><br /> <ol> <li>Amendments to the Charter of the Audit and Ethics Committee:<br /><br /> <ol> <li>the word “four” is deleted in each of paragraphs 3.i, 6 and 7, and is replaced with “five”; and<br /><br /></li> <li>a new paragraph is inserted immediately following paragraph 4, containing the following text: “In instances in which the Committee is unable to take a decision, the AEC Chair shall, in consultation with the AEC Vice-Chair, exercise an additional vote in order to resolve such impasse.”<br /><br /></li> </ol> </li> <li>Amendments to the Board and Committee Operating Procedures:<br /><br /> <ol> <li>Table 3.b of Annex 1 (“Expected Minimum Key Competencies and Responsibilities of Members of each of the Standing Committees of the Board”), is amended by striking out the whole of the text in bulleted item 1 in column three of that table (“Key Competencies of Audit and Ethics Committee Members”); and<br /><br /></li> <li>replacing it with the following text: “At least two voting members with financial audit experience, with professional accreditation in financial accounting (Committee Chair should be selected from amongst the independent members who hold professional accreditation in financial accounting)”.<br /><br /></li> <li>The word “four” is deleted in paragraph 44.1.3 and is replaced with “five.”<br /><br /></li> </ol> </li> </ol> </li> <li>Approves the appointment of the following individuals as independent members of the AEC to serve for two-year terms from the date of effect of this decision, or until the appointment of their respective successors:<br /><br /> <ol> <li>Graham Joscelyne (Financial audit competency) as member and Chair of the AEC</li> <li>Gabor Amon (Forensic investigation competency) as member of the AEC</li> <li>Veronica Charlesworth (Financial audit competency) as member of the AEC</li> <li>Wendy Harrison (Ethics competency) as member of the AEC</li> <li>Barry Metzger (Legal/dispute resolution competency) as member of the AEC<br /><br /></li> </ol> </li> <li>Acknowledges that the Finance and Operational Performance Committee will bring to the November 2012 Board meeting a comprehensive remuneration and honorarium strategy across the Global Fund’s governance and advisory entities, which will include a recommendation on the appropriate honorarium for independent members of the AEC having regard to their role and fiduciary obligations.<br /><br /></li> <li>Approves an honorarium for the period April to December 2012 of US$ 14,000 for the independent Chair of the AEC, and US$ 9,000 for other independent members of the AEC. The Board notes that the FOPC’s recommendations in November 2012 may include a recommendation to retroactively increase the honorarium of independent members of the AEC.<br /><br /></li> <li>Requests the Audit and Ethics Committee to provide recommendations into the Phase 2 Governance Reform process on revised “Criteria for Independent Members of the Audit and Ethics Committee” that takes into account lessons learned during the process of constituting the committee.</li> </ol>

<p>The Board refers to the Quality Assurance Policy for Pharmaceutical Products (the “QA Policy”) (as last approved and amended in GF/B22/DP9), and the requirement set forth therein that Global Fund grant funds may only be used to purchase Finished Pharmaceutical Products which comply with the QA Policy.</p> <p>The Board grants an exception to the quality standards set forth in the QA Policy such that sufficient quantities of ritonavir 100mg may be procured under existing Global Fund grants in Cuba to avoid a treatment disruption.</p> <p>This exception is valid until a source of ritonavir 100mg that is compliant with the quality standards of the QA Policy is available for the Global Fund Cuba programs, and if such a source becomes available and a procurement of ritonavir 100mg can be made from that source in time to avoid a treatment disruption in Cuba, that procurement should be made and this exception should not be applied.</p> <p>The Secretariat shall take appropriate measures to minimize and address any quality risks associated with the procurement authorized by this decision, including:</p> <ol> <li>Requiring that, at a minimum, the manufacturing site of the ritonavir 100mg procured must, at the time of the procurement, be in compliance with Good Manufacturing Practices as verified by the WHO Prequalification Programme, a Stringent Drug Regulatory Authority, or a regulatory authority participating in the Pharmaceutical Inspection Cooperation Scheme; and</li> <li>Applying the notification/confirmation and systematic quality control testing as described in paragraphs 9 and 31 of the QA Policy to such procurement.</li> </ol>

<p>Consistent with the Board's November 2011 decision titled 'Modification of Grant Renewals and Transition to New Funding' (GF/B25/DP16) as it applies to grant renewals, Group of 20 Upper Middle Income Countries with less than an extreme disease burden will not be eligible for funding under the Transitional Funding Mechanism.</p>

<p>Notwithstanding the effect of Decision 1 (GF/B25/EDP20 applied post factum) above, paragraph 11 of the Global Fund's 'Policy on Eligibility Criteria, Counterpart Financing Requirements, and Prioritization of Proposals' (GF/B23/14), which allows NGOs from Upper Middle Income Countries not listed on the OECD's DAC list of ODA recipients to apply for HIV/AIDS funding, shall remain applicable to the Transitional Funding Mechanism.</p>

<p>Consistent with the Board’s November 2011 decision titled ‘Modification of Grant Renewals and Transition to New Funding’ (GF/B25/DP16) as it applies to grant renewals:</p> <ol> <li>While the Secretariat works on scenarios to model the impact of the 55% rule, and the most effective measures for implementation, grant renewal invitation letters issued to Country Coordinating Mechanisms will have ceilings of 90% for Low Income Countries and Low-Lower Middle Income Countries, and 75% for all other country income level categories;</li> <li>New ceilings will apply to all grant renewal invitation letters issued on or after 1 January 2012; and</li> <li>The letters will explain the reasons for these (in some cases) new ceilings, and will also mention that the ceilings may be adjusted later.</li> </ol>