Forty-First Board Meeting

<p>Allan Maleche from the Developing Country NGO constituency is designated as Rapporteur for the 41st Board Meeting.</p>

<p>The agenda for the 41st Board Meeting (GF/B40/01) is approved.</p>

<ol> <li>The Board notes: <ol type="a"> <li>Its decision in April 2016 (GF/B35/DP10) that (i) established the allocation methodology for the 2017 - 2019 allocation period; (ii) acknowledged the technical parameters for the 2017 - 2019 allocation period; and (iii) affirmed the restatement of core parts of the principles and framework for the allocation-based funding model (the “Core Funding Model Principles”); and</li> <li>The decision by the Strategy Committee (the “SC”) in March 2019 (GF/SC09/DP02), under authority delegated by the Board, to establish technical parameters for the 2020 – 2022 allocation period (the “Technical Parameters”).</li> </ol> </li> <li>Accordingly, based on the recommendations of the SC, as presented in GF/B41/02, the Board: <ol type="a"> <li>Approves the allocation methodology presented in Annex 1 to GF/B41/02 (the “Allocation Methodology”);</li> <li>Acknowledges the Technical Parameters for the 2020 – 2022 allocation period, as presented in Annex 2 to GF/B41/02;</li> <li>Approves that no more than USD 800 million of sources of funds available for country allocations be used to ensure scale-up, impact and paced reductions, as<br />described in paragraph 4.c of the Allocation Methodology; and</li> <li>Reaffirms the Core Funding Model Principles, as presented in Annex 3 to GF/B35/05 – Revision 1.</li> </ol> </li> <li>Accordingly, the Board:<br /> <ol type="a"> <li>Requests the SC to review and approve, at its July 2019 meeting, the method by which the Secretariat will apply and report on the qualitative adjustment process; and</li> <li>Acknowledges that the Allocation Methodology and Technical Parameters shall apply for the 2020 – 2022 allocation period and supersede the 2017 – 2019 allocation methodology and technical parameters presented in GF/B35/05 – Revision 1.</li> </ol> </li> </ol>

<p>Based on the recommendation of the Strategy Committee (the “SC”), as presented in GF/B41/03 - Revision 1, the Board:</p> <ol> <li>Acknowledges that the total amount of sources of funds for allocation for the 2020-2022 allocation period will be decided by the Board in November 2019, based on the recommendation of the Audit and Finance Committee following announced replenishment results from the 6th Replenishment;</li> <li>Approves that the total amount of funding for catalytic investments in the 2020-2022 allocation period, as described in the Allocation Methodology approved under GF/B41/DP03, will be determined by the total amount of sources of funds for allocation for the 2020-2022 allocation period;</li> <li>Approves catalytic investments for the 2020 – 2022 allocation period as set forth in the scenarios described below: <ol type="i"> <li>USD 900 million scenario: If sources of funds for allocation for the 2020 – 2022 allocation period are greater than or equal to USD 13.1 billion, USD 900 million will be made available for catalytic investments, in accordance with the priorities and associated costs set forth in Table 1 of Annex 1 of GF/B41/03 - Revision 1 (“Annex 1”);</li> <li>USD 800 million scenario: If sources of funds for allocation for the 2020 – 2022 allocation period are below USD 13.1 billion and greater than or equal to USD 12.1 billion, USD 800 million will be made available for catalytic investments, in accordance with the priorities and associated costs set forth in Table 2 of Annex 1;</li> <li>USD 600 million scenario: If sources of funds for allocation for the 2020 – 2022 allocation period are below USD 12.1 billion and greater than or equal to USD 11.1 billion, USD 600 million will be made available for catalytic investments, in accordance with the priorities and associated costs set forth in Table 3 of Annex 1;</li> <li>USD 400 million scenario: If sources of funds for allocation for the 2020 – 2022 allocation period are below USD 11.1 billion and greater than or equal to USD 10.6 billion, USD 400 million will be made available for catalytic investments, in accordance with the priorities and associated costs set forth in Table 4 of Annex 1; and</li> <li>USD 200 million scenario: If sources of funds for allocation for the 2020 – 2022 allocation period are below USD 10.6 billion and greater than or equal to USD 10.1 billion, USD 200 million will be made available for catalytic investments, in accordance with the priorities and associated costs set forth in Table 5 of Annex 1.</li> </ol> </li> <li>Requests the Secretariat to return to the SC with a new recommendation on catalytic investments if sources of funds for allocation for the 2020 – 2022 allocation period are below USD 10.1 billion, for SC recommendation to the Board;</li> <li>Agrees that in the event that sources of funds for allocation for the 2020-2022 allocation period are above the midpoint of the funding range specified for a scenario above, the Secretariat may recommend the Board to approve an additional total amount up to USD 100 million for catalytic investments, to be invested in the priority areas for the scenario immediately preceding the applicable scenario in the list above;</li> <li>Requests the Secretariat to (i) implement a rigorous approval process for all catalytic investments, including strategic initiatives, by a review body with clear and transparent management of conflicts of interest to maintain the integrity of decision making, whether financial or programmatic; (ii) execute a credible, robust technical review process on the activities, mechanisms, and the requested amounts; and (iii) report regularly to the SC on all catalytic investments; and</li> <li>Notes the Secretariat will (i) have flexibility to operationalize catalytic investments; (ii) update the SC and Board on such operationalization; (iii) have flexibility to reallocate associated costs among the approved priorities under any applicable scenario, within 10% of the approved amount of associated costs for a specific priority; and (iv) present any reallocations of associated costs exceeding 10% for a specific priority for the SC’s approval.</li> </ol>

<p>Based on the recommendation of the Audit and Finance Committee, the Board approves the Amended and Restated Policy on Restricted Financial Contributions, as set forth in Annex 1 to GF/B41/06 – Revision 1, which shall supersede the Amended and Restated Policy on Restricted Financial Contributions approved by the Global Fund Board in May 2017 under decision point GF/B37/DP08.</p>

<p>The Board authorizes the issuance of, and therefore approves, the Global Fund’s 2018 Annual Financial Report, which includes the 2018 Consolidated Financial Statements that have been audited by KPMG SA, as set forth in Annex 1 to GF/B41/04.</p>

<p>The Board authorizes the issuance of, and therefore approves, the Global Fund’s 2018 Statutory Financial Statements, which have been audited by KPMG SA, as set forth in Annex 2 to GF/B41/04.</p>

<p>Based on the recommendation of the Audit and Finance Committee, as set forth in GF/AFC09/DP03, the Board authorizes the reappointment of KPMG SA as the Global Fund’s independent external auditor for a second term of three years beginning with the 2019 financial year.</p>

<p>The Board expresses its deep appreciation to Aida Kurtović for her leadership as Chair of the Board. Over her time working with the Global Fund as Board Member for the Eastern Europe and Central Asia Constituency, Vice-Chair and Chair of the Board, Aida has shown a high degree of personal commitment, willingness to devote time and energy to the work of the Global Fund, and particular attention to engagement with constituencies. The Board recognizes her significant contribution to the priorities of the Global Fund over many years.</p> <p>The Board also expresses sincere gratitude to Amb. John Simon for his leadership as ViceChair of the Board. He has served the Global Fund with dedication, and has been an active driver of governance effectiveness, relationship building and collaboration that will have a lasting impact on the Global Fund.</p> <p>During their tenure, the outgoing Chair and Vice-Chair have presided over significant deliberations and decisions that will continue to shape the future of the Global Fund. Under their leadership, the Board appointed the Executive Director, guided resource mobilization efforts, adopted key decisions, including, the Revised Eligibility Policy and criteria regarding potential engagement with on-eligible countries in crisis, a strengthened Board Leadership Selection Process, the CCM evolution initiative, the Allocation Methodology and Catalytic Investments for the 2020-2022 Allocation Period, and integrated additional public donors into the Global Fund Governance Structure.</p> <p>The Board wishes Aida and John every success in their future endeavors and bestows upon them the honorary titles of Chair Emeritus and Vice-Chair Emeritus of the Board, respectively</p>

<p>The Board:</p> <ol> <li>Approves the funding recommended for each country disease component, and its constituent grants, as listed in the Table 1 of GF/B41/ER01 (“Table 1”);</li> <li>Acknowledges each country disease component’s constituent grants will be implemented by the proposed Principal Recipients listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Affirms the funding approved under this decision (a) is subject to the availability of funding, and (b) shall be committed in annual tranches; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board:</p> <ol> <li>Approves the revised budget recommended for each grant listed in Table 2 of GF/B41/ER01 (“Table 2”);</li> <li>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<ol> <li>The Board approves the revised Governance Performance Assessment Framework as set forth in Annex 1 to GF/B41/ER01 (“Framework”), which shall enter into force upon Board approval of this decision point.</li> <li>The revised Framework shall supersede all prior versions of the Governance Performance Assessment Framework.</li> <li>The Board mandates the Ethics and Governance Committee (“EGC”) to regularly review the Framework and delegates decision-making powers to the EGC for any future changes to the Framework and any supporting materials related to it.</li> </ol>

<p><span>The Board:</span><span></span></p> <ol> <li><span>Approves the revised budget recommended for each grant listed in Table 1 of GF/B41/ER03 (“Table 1”);</span><span></span></li> <li><span>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</span><span></span></li> <li><span>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</span></li> </ol>

<p class="x_MsoNormal"><span>The Board approves the Report of the 41st Board Meeting, as set forth in GF/B41/18.</span></p>

<p>Based on the recommendation of the Strategy Committee described in GF/B41/ER04, the Board:</p> <ol> <li>Notes that the Eligibility Policy (GF/B39/02) provides that certain non-eligible countries may be recommended to be eligible for malaria in the event of a significant resurgence in malaria cases;</li> <li>Acknowledging the Secretariat and technical partners’ recommendation described in GF/B41/ER04, decides that Venezuela’s malaria component will be eligible for funding for the 2020-2022 allocation period due to significant resurgence; and</li> <li>Notes that any resultant grant(s) will be subject to and governed by existing policy and processes.</li> </ol>

<p>The Board:</p> <ol> <li>Approves the funding recommended for each country disease component, and its constituent grants, as listed in the Table 1 of GF/B41/ER05 (“Table 1”);</li> <li>Acknowledges each country disease component’s constituent grants will be implemented by the proposed Principal Recipients listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Affirms the funding approved under this decision (a) is subject to the availability of funding, and (b) shall be committed in annual tranches; and<br />Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board:</p> <ol> <li>Approves the revised budget recommended for each grant listed in Table 2 of GF/B41/ER05 (“Table 2”);</li> <li>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board:</p> <ol> <li>Approves the funding recommended for the country disease components, and its constituent grant, as listed in the Table 1 of GF/B41/ER06 (“Table 1”);</li> <li>Acknowledges the country disease components’ constituent grant will be implemented by the proposed Principal Recipient listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Affirms the funding approved under this decision (a) is subject to the availability of funding, and (b) shall be committed in annual tranches; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board:</p> <ol> <li>Approves the revised budget recommended for each grant listed in Table 1 of GF/B41/ER07 (“Table 1”);</li> <li>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board approves the appointment of Dr. Mohsen Asadi-Lari, representing the Eastern Mediterranean Region Constituency, as a voting member of the Audit and Finance Committee for a term that will expire in May 2020.</p>

<p>The Board:</p> <ol> <li>Approves the funding recommended for the country disease component, and its constituent grant, as listed in the Table 1 of GF/B41/ER09 (“Table 1”);</li> <li>Acknowledges the country disease component’s constituent grant will be implemented by the proposed Principal Recipient listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Affirms the funding approved under this decision (a) is subject to the availability of funding, and (b) shall be committed in annual tranches; and</li> </ol> <p>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for the country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</p>

<p>The Board:</p> <ol> <li>Approves the revised budget recommended for each grant listed in Table 2 of GF/B41/ER09 (“Table 2”);</li> <li>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>The Board:</p> <ol> <li>Expresses continuing concern about the public health crisis in Venezuela, a country that has been made eligible for Global Fund funding for malaria only for the 2020-2022 allocation period, under GF/B41/EDP06, and its adverse impact on the fight against HIV, tuberculosis and malaria in Venezuela and the region;</li> <li>Acknowledges the new proposal for exceptional funding presented by the Secretariat, and developed in consultation with partners and civil society, in accordance with the approach for potential engagement with non-eligible countries in crisis approved by the Board through GF/B39/DP04;</li> <li>Recognizes that the emergency circumstances in Venezuela continue to require unique implementation and management arrangements, which differ substantially from the standard Global Fund funding model and applicable policies, as described in GF/B41/ER10 and Annex 1;</li> <li>Accepts that the proposed implementation and management arrangements continue to entail unique risks, as described in GF/B41/ER10 and Annex 1, including that the Office of the Inspector General will not be able to provide the Board with assurance, whether through audit or investigation work, over the funds disbursed under the proposed funding arrangements and that civil society oversight may not be able to provide adequate assurance as envisaged in GF/B41/ER10 and Annex 1;</li> <li>Based on the recommendation of the Strategy Committee, approves the investment and terms set forth in Annex 1, to provide an additional USD 6,000,000, for the year 2020, to support the procurement of critical HIV, TB and malaria health products for Venezuela and social monitoring of the investment; and</li> <li>Calls for continuous engagement from relevant partners, donors and other stakeholders to further support a regional response to the health crisis in Venezuela.</li> </ol>

<ol> <li>The Board approves (i) the proposed amendments to the Operating Procedures of the Board and Committees of the Global Fund (“BCOP”) set out in Annex 1 of GF/B41/ER11; and (ii) the proposed amendments to the Charter of the Ethics and Governance Committee (“EGC Charter”) set out in Annex 2 of GF/B41/ER11.</li> <li>The Board endorses the due diligence process overview set out in Annex 4 of GF/B41/ER11.</li> <li>The proposed amendments to the BCOP shall enter into force upon the adoption of this decision point. The proposed amendments to the EGC Charter shall enter into force upon the expiry of the term of the current EGC in May 2020.</li> </ol>

<p>Based on the recommendation of the Audit and Finance Committee, the Board approves:</p> <ol> <li>the wording revision for Key Performance Indicator 10 as presented in GF/B41/ER12</li> <li>the indicator revision and performance target for Key Performance Indicator 12a as presented in GF/B41/ER12</li> <li>the 2020 performance target for Key Performance Indicator 12b as presented in GF/B41/ER12</li> </ol>

<p><span>The Board:</span></p> <ol> <li><span>Approves the funding recommended for each country disease component, and its constituent grants, as listed in Table 1 of GF/B41/ER13 (“Table 1”);</span></li> <li><span>Acknowledges each country’s disease component’s constituent grants will be implemented by the proposed Principal Recipients listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</span></li> <li><span>Affirms the funding approved under this decision (a) is subject to the availability of funding, and (b) shall be committed in annual tranches; and</span></li> <li><span>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</span></li> </ol>

<p><span>The Board:</span></p> <ol> <li><span>Approves the revised budget recommended for each grant listed in Table 2 of GF/B41/ER13 (“Table 2”);</span></li> <li><span>Affirms the additional funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, and (b) is subject to the availability of funding; and</span></li> <li><span>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</span></li> </ol>