Progress Update and
Disbursement Request
Form Instructions
Date Published: 17 February 2022
Date Updated: 21 November 2023
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Table of Contents
Abbreviations 4
1 Introduction 6
Context 6
2 General Guidance 7
2.1 PU/DR Reporting Process 7
2.2 PU/DR Structure, Reporting Requirements & Timelines 8
3 Cover Sheet & Summary 9
3.1 Language Selection & Form Legend 9
3.2 General Grant Information & Reporting Periods 9
3.3 Exchange Rates 11
3.4 Executive Summary 11
4 Programmatic Reporting 12
Tab 1.A & Tab 1.B. Impact/Outcome Indicators, Including Disaggregation 12
Tab 1.C & Tab 1.D. Coverage Indicators, Including Disaggregation 14
Tab 1.E. Work Plan Tracking Measures 17
5 Financial Reporting 18
General principles of financial reporting to the Global Fund and key definitions 18
Special Cases 19
Tab 2. Principal Recipient Cash Reconciliation Statement 19
Tab 2A. Opening Cash Balance at Start of IP 20
Table A: Principal Recipient Cash Reconciliation Statement in IP Currency 21
Table B. Schedule of Open Advances in IP Currency 27
Table C. Principal Recipient Financial Commitments & Obligations 28
Table D. Triangulation of Financial Figures 29
Table E. Principal Recipient Bank Statement Balance & Cash In-Transit in IP Currency 31
Table F. Principal Recipient Ineligible Transactions in IP Currency 32
Tab 3. Sub-recipient Cash Reconciliation 34
Tab 4. Total Expenditure 36
Tab 5. C19RM Expenditure 39
Tab 6. Forecast & Disbursement Request 40
Tab 7. Tax Reporting 43
6 Health Product Procurement & Supply Chain Management 45
Table 8.A. Price & Quality Reporting (PQR) 45
Table 8.B. Risk of Stock-Out & Expiry 46
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Table 8.C. Quantification & Forecasting (Applicable for reporting only for selected pilot grants as of
period starting 1 July 2023) 49
Table 8.D. Grant Procurement Planning Performance (Applicable for reporting only for selected pilot
grants as of period starting 1 July 2023) 51
Table 8.E. Central Stock Level - Stocked According to Plan (Applicable for reporting only for
selected pilot grants as of period starting 1 July 2023) 53
Table 8.F. Additional information 55
Table 8.G. Value of Pharmaceuticals and Health products in the PQR - LFA use only 56
7 Grant Management 57
Tab 9.A. Grant Requirements 57
Tab 9.B. Mitigating Actions & Management Issues 59
8 Assessment & Sign-Off 60
Tab 10.A. Principal Recipient (PR) Self-Assessment 60
Tab 10.B. Principal Recipient Sign-Off 63
Tab 10.C. LFA Performance Assessment (LFA only) 64
Tab 10.D. LFA Sign Off 68
9 LFA Findings & Recommendations (LFA only) 69
10 PU/DR Annexes 70
Section 1 Annex on PR Financial Commitment, Obligations & Accrued Severances 70
Section 2 Annex on Financial Triggers (Focused Portfolios Only) 71
11. Local Fund Agent Scope of Work 72
11.1 Scope of work 72
11.2 Recommended approach for the review and verification of information 76
11.3 Sources of information 76
12. Overview of Reporting Requirements 77
13. Additional Resources 81
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ABBREVIATIONS
▪
AER - Annual Expenditure Report
▪
AFR - Annual Financial Report
▪
AFDD - Annual Funding Decision and Disbursements
▪
AMC - Average Monthly Consumption
▪
ARV - Anti-retroviral
▪
C19RM - COVID-19 Response Mechanism
▪
CCM - Country Coordinating Mechanisms
▪
CMS - Central Medical Store
▪
CT - Country Team
▪
DQA - Data Quality Assessment/Assurance
▪
DQR – Data Quality Review
▪
ELISA - Enzyme-linked Immunosorbent Assay
▪
FCR - Financial Closure Report
▪
GDF - Global Drug Facility
▪
GFS - Grant Financial System
▪
GOS - Grant Operating System
▪
HMIS - Health Management Information Systems
▪
HIV - Human Immunodeficiency Virus
▪
HP-PSCM - Health Product Procurement and Supply Chain Management
▪
HPMT - Health Product Management Template
▪
ICR - Indirect Cost Recovery
▪
IP - Implementation Period
▪
IRM - Integrated Risk Management
▪
KMA - Key Mitigating Action
▪
LFA - Local Fund Agent
▪
LMIS - Logistics Management Information Systems
▪
MOH - Ministry of Health
▪
NGO - Non-Governmental Organization
▪
OIG - Office of the Inspector General
▪
PEPFAR - The President's Emergency Plan for AIDS Relief
▪
PF - Performance Framework
▪
PL - Performance Letter
▪
PP - Global Fund Partner Portal (Partner Portal)
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▪
PPM - Pooled Procurement Mechanism
▪
PQR - Price and Quality Report
▪
PR - Principal Recipient
▪
PU/DR - Progress Update and Disbursement Request
1
▪
PU - Progress Update
▪
RSSH - Resilient and Sustainable Systems for Health
▪
SOP - Standard Operating Procedures
▪
SR - Sub-recipient
▪
WPTM(s) - Work Plan Tracking Measure(s)
▪
TB - Tuberculosis
▪
UNAIDS - The Joint United Nations Programme on HIV/AIDS
▪
UNICEF - United Nations Children’s Fund
▪
UNFPA - United Nations Population Fund
▪
VAT - Value Added Tax
▪
VF - Verification Factor
▪
wambo.org - The Global Fund's online procurement platform
▪
WHO - World Health Organization
1
In this document, the term PU/DR is used to refer to PU/DRs, PUs, and Final PUs, unless otherwise specified.
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1 INTRODUCTION
This document provides guidance to Principal Recipients (PRs) and Local Fund Agents (LFAs)
on how to complete/review the Progress Update and Disbursement Request (PU/DR).
CONTEXT
To facilitate oversight of Global Fund-supported programs, PRs submit regular updates on
implementation activities, including collecting and collating information from sub-recipients
(SRs). In addition, PRs request funds on an annual basis for the following year of
implementation, i.e., the execution period, plus a buffer period.
PRs use the Progress Update (PU) to report on the latest completed period of program
implementation, the duration of which is defined in the Performance Framework (PF), and the
Disbursement Request (DR) to define financial needs for the coming execution and buffer
periods. Together, they are the Progress Update and Disbursement Request Form, or PU/DR.
In this document, the term PU/DR is used to refer to PU/DRs, PUs, and Final PUs, unless
otherwise specified.
2
Upon Global Fund request, LFAs review the PU/DR submitted by the PR, capturing their
findings and recommendations in the respective sections of the PU/DR. The Global Fund relies
on LFAs, as assurance providers, to verify and confirm that the information provided by the PR
in the PU/DR is complete and accurately represents the expenditures incurred (including for
health products) and programmatic targets achieved.
The Global Fund uses the information provided in the PU/DR to:
▪
Review implementation progress of each grant, including programmatic, financial, Health
Product Procurement and Supply Chain Management (HP-PSCM), risk, governance, and
cross-cutting grant management aspects.
▪
Determine the Performance Rating.
▪
Make Annual Funding Decisions (AFDs) aligned to the performance-based funding
principle of the Global Fund and make related disbursements.
▪
Identify implementation issues and risks and determine appropriate mitigating measures.
▪
Track progress on implementation of grant requirements.
▪
Comply with agreed reporting to the Global Fund Board, donors, and stakeholders,
including on results achieved and use of funding.
2
Reporting requirements vary by report type, portfolio category, and country-specific factors. Please refer to 12. Overview of
Reporting Requirements of this guidance document for further information.
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2 GENERAL GUIDANCE
2.1 PU/DR REPORTING PROCESS
Diagram 1. High-level PU/DR Reporting Process
1. The PU/DR is shared with the PR through the Global Fund Partner Portal (the Portal) as a
downloadable Excel form. It contains pre-populated information from the signed Grant
Confirmation, approved PF, and budget.
2. The PR receives a notification from the Portal to download the PU/DR. The PR completes
the PU/DR and submits it through the Portal by the due date at latest.
3. Following PR submission, the Global Fund reviews the PU/DR. Please note that incomplete
submissions are returned to the PR for further inputs.
4. Upon Global Fund request, the LFA reviews the PU/DR. The LFA receives a Portal
notification to download the form, then verifies the PR-submitted information and completes
the LFA sections as per the defined scope of work. The outcomes of the LFA review,
including recommendations, are confidential and are intended for the Global Fund only.
5. The Global Fund reviews the verified information and consults further with the LFA and/or PR
as needed. The Global Fund validates the verified information in internal Global Fund
systems, completes the Performance Rating, makes an Annual Funding Decision (if
relevant), and determines mitigation measures to identified risks and implementation issues.
6. The Global Fund shares the Performance Rating and Performance Letter with the PR
through the Portal.
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2.2 PU/DR STRUCTURE, REPORTING REQUIREMENTS & TIMELINES
The PU/DR consists of thematic and cross-cutting reporting tabs. The required sections depend
on report type,
3
portfolio category,
4
and country-specific factors. Please refer to 12. Overview of
Reporting Requirements of this guidance document for further information.
Reporting frequency is defined in the PF. Generally, the PU covers 6 months. It is reported mid-
year
5
for High Impact and Core portfolios and is usually not required for Focused portfolios. The
Final PU covers the last reporting period of implementation and is required for all portfolios.
The PU/DR is reported at year-end and covers 12 months for Focused portfolios and 6 months
for High Impact and Core portfolios.
Diagram 2. PU/DR Timelines
3
PU, PU/DR, Final PU.
4
High Impact, Core, Focused portfolio categorization is captured in the Operational Policy Manual.
5
The reporting year may not be aligned to calendar years, depending on the agreed reporting cycle in the PF.
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3 COVER SHEET & SUMMARY
3.1 LANGUAGE SELECTION & FORM LEGEND
The PU/DR is available in English, French and Spanish. The language can be selected in the
drop-down menu at the top of the PU/DR Cover Sheet and Summary tab.
Please note: Forms that have been tampered with cannot be integrated into the Global Fund
systems. Tampering refers to modifying the form’s structure, content and/or formulas, or
overwriting pre-populated values. Forms that have been tampered with are rejected and
returned to the PR or the LFA for full resubmission, negatively impacting timely submission and
processing.
PRs and LFAs cannot use Google sheets to edit the PU/DR form as it prevents the import of the
submitted information into the Grant Operating System (GOS).
PRs and LFAs are expected to report inaccuracies in pre-populated data as soon as noted to
Country.Support@theglobalfund.org.
3.2 GENERAL GRANT INFORMATION & REPORTING PERIODS
The PU/DR Cover Sheet and Summary contains general grant information – country, disease
component, grant implementation period number, PR name, LFA name, IP start date, and IP
currency.
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The cover sheet also outlines reporting period and disbursement request
6
information.
Type of Reporting
Period
Reporting Period
Other Remarks
Current
Programmatic
Reporting Period
Typically:
▪
6 months for High Impact and
Core portfolios.
▪
12 months for Focused
portfolios.
To align grant start date with the
country’s programmatic and fiscal
reporting cycles, the first and last
reporting periods of a grant can be
longer or shorter than 12 months.
The periods immediately follow
those covered by the previous
PU/DR.
Current Financial
Reporting Period
Cumulative
Financial
Reporting Period
Cumulative from the
Implementation Period start
date.
Reporting end date to match the
end date specified under Current
Financial Reporting Period.
Disbursement
Request
Execution Period
A 12-month period during which
approved grant activities are
implemented and grant funds
are disbursed.
7
Typically covers the following year
of the grant and does not include a
buffer period.
Disbursement
Request Buffer
Period
A maximum 6-month period,
following the Disbursement
Request Execution Period, for
which funds are disbursed while
the PR reporting process is
being completed.
The buffer period is added to the
disbursement execution period, for
a maximum of 18-month execution
and buffer period.
6
All dates have the format dd-mmm-yyyy (e.g. 31-Mar-2022).
7
In some cases, an execution period can be six months in high-risk environments.
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3.3 EXCHANGE RATES
Expenditures incurred in a currency other than the grant currency are to be translated into the grant
currency using the spot rate applicable on the day of each transaction. If the use of daily rates is
not practical, the average exchange rate (monthly or quarterly) for the reporting period is to be
used. The source and actual exchange rates used in the calculations are to be disclosed. The
exchange rate applied for expenditures (which is inclusive of commitments) is the same rate
applied for converting cash outflows.
Please note: In cases of significant currency rate fluctuations, a separate average exchange rate
is to be calculated each month. Monthly average exchange rates can be obtained or calculated
from the country’s central/national bank or other official sources (e.g., the International Monetary
Fund or other international financial institutions).
3.4 EXECUTIVE SUMMARY
This section is view only and is pre-populated based on PR and LFA entries in subsequent
sections of the PU/DR.
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4 PROGRAMMATIC REPORTING
TAB 1.A & TAB 1.B. IMPACT/OUTCOME INDICATORS, INCLUDING
DISAGGREGATION
Impact and Outcome indicators due to be reported during the period, or outstanding from any
previous period, are pre-populated in Tab 1.A, based on the signed PF.
The PR reports results against the current year target based on the report due date in the PF. If an
indicator result is outstanding from the previous period or year, this indicator will appear again in the
current PU/DR. Outstanding indicators without a current year target remain listed until a result is
reported.
In such cases the PR reports:
a. Previous year results against the previous year target.
b. Current year results against the current year target.
The target year refers to the year when the indicator will be measured and is prepopulated from the
PF. For the indicators that are reported using routine reporting systems, the result year must be the
year in which the result was measured and is expected to match the target year. For example, if the
target year is 2022, the result year will be also 2022.
For the indicators reported through surveys, if the measurement is delayed (e.g., the survey data
collection is postponed from 2022 to 2023), the result year is the year when the survey data
collection took place, i.e., 2023. This, however, will not allow for assessment of performance against
the target as the target year and the result year will not match. In such cases, it is advisable to
update the target and the target year (as applicable) in the PF such that the targets match the result
year (year of data collection) through a revision process. The reason for the delay in measurement
is to be noted in the comments box.
The PR additionally provides a performance analysis, including comments on:
▪
Results achieved, including any variations in results from agreed targets.
▪
Data collection method or measurement approaches and data sources for all reported results
listed.
▪
Any other contextual information related to reported results, such as delays to planned
baseline or other surveys, with reasons and a revised timeline in the PR only section of the
PU/DR.
▪
Analysis of trends over time.
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Please note: The ‘Value’ column is applicable for grants from the 2017-2019 allocation period,
where baseline values are all included in one cell.
For indicators that require disaggregation (Tab 1.B Impact/Outcome Disaggregation), the category
and required disaggregation is pre-populated.
Specific LFA Requirements
Unless otherwise agreed, LFAs:
▪
Verify PR-reported data for the reporting period as per the PF, based on the relevant data sources, and include any
modifications to PR reported results following LFA verification in the ‘Verified Results’ column, unless specified
otherwise by the Global Fund or indicated in 11 LFA Scope of Work.
▪
Indicate unverified results by selecting ‘not verified’ from the dropdown list and provide an explanation.
▪
Comment on:
o Variations in data sources or data collection methods from agreed measurement approaches.
o Issues with data collection and reporting.
o Completion status for surveys or any delays in implementation.
o Rationale provided by the PR.
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o Whether the expected result was not achieved or information on the results achievement was not provided
by the PR.
▪
Conduct additional analysis as relevant.
Refer to 11.1 LFA Scope of Work for further information on LFA review in Focused portfolios.
Tab 1.C & Tab 1.D. Coverage Indicators, Including
Disaggregation
Coverage indicators due to be reported during the period are pre-populated in Tab 1.C, based on
the signed PF.
The PR reports results and ensures:
▪
Consistency with how targets were set in the PF, e.g., if a target was set as ‘non-cumulative
other’, the result is reported this way.
▪
Consistency with target value types, e.g., if a target was set as a
‘numerator/denominator/percentage,’ the result is reported this way.
▪
Reported results are based on the agreed-upon measurement methods, frequency and data
sources, as established in the PF and/or the indicator guidance sheets.
8
For results reported
in the value type ‘numerator/denominator/percentage’ against a target set in the same value
type, the percentage value is used in calculating the achievement ratio automatically.
The PR provides performance analysis, including comments on:
▪
Trends in performance over time.
▪
Reasons for variations in results, such as subnational variations (by regions/districts) or by
type of implementer (e.g., SRs) or by populations reached (e.g., KPs, gender, age groups,
and others).
▪
Reasons for under or overperformance, and corrective actions to address them.
▪
Projections for the next period, including arguments supporting the prospects to maintain,
decline or improve performance for each indicator.
▪
Data quality challenges, if any, and planned action.
▪
Triangulation with consumption data and stock levels for relevant indicators.
8
Refer to the respective indicator guidance sheets available in 13. Additional Resources of this guidance document.
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For indicators that require disaggregation (Tab 1.D Coverage Disaggregation), the required
disaggregation is pre-populated, based on the PF.
The PR is required to:
▪
Provide disaggregated results for specific set of coverage indicators by age, sex, gender,
status, and others as indicated.
▪
Include in their performance analysis a discussion of disaggregated results and specific
mitigation measures, including actions to address inequities where required.
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Specific LFA Requirements
The LFA verifies that the PR has reported all results that are due for coverage indicators, and the required
disaggregation.
Please note: For Focused portfolios, the LFA is not required to verify the disaggregated results reported. Please
Refer to 11.1 LFA Scope of Work for further information.
The LFA:
▪
Reviews consistency of PR results with how targets were set in the PF and with agreed measurement methods,
frequency and data sources.
▪
Verifies compliance of results with indicator definition as per Global Fund indicator guidance sheets
9
and/or PF
results correspond to the respective reporting period.
▪
Enters verified results. Differences between LFA-verified and PR-reported results must be explained.
▪
Specifies how results for each indicator were verified (e.g., desk review or on-site verification). If other verification
methods were used, the LFA explains the methodology followed.
▪
Indicates any discrepancies between the target accumulation in the PF and the PR-reported results to ensure
results are aligned to the appropriate reporting period.
Recommended review scope for reported results
The LFA:
▪
Undertakes an annual document review of reported results. In agreement with the Global Fund, the review can
be waived for the semi-annual PU if there is a history of good data quality and/or reliable and routine delivery of
programmatic reports. The LFA verifies results against the source (e.g., national reporting system, a report
published by technical partners) and, where applicable, checks consistency with results reported for other
indicators and adjusts, as needed, both the numerator and denominator. If based on estimates, the validity of
the estimate must be verified against the source. If a numerator or denominator used cannot be validated, this
is explained in the review comments.
▪
Comments on progress to date and explains any significant variance between targets and results and any
deviations from the related work plan activities. The LFA is expected to not copy and paste comments provided
by the PR.
▪
Verifies that the PR’s performance assessment is consistent with agreed targets as set in the PF and ensures
the PR provides the required analysis.
▪
Raises any data quality issues in the comment column next to the specific indicators.
Please note:
▪
The LFA must not change any data values provided by the PR in the PR section of the PU/DR.
▪
The LFA must indicate if results have not been verified and provide an explanation.
▪
Programmatic performance is measured through quantitative indicator rating determined in the Assessment and
Sign-off tab (Refer to Tab 10.C LFA Performance Assessment for further information). The achievement ratio
automatically calculated in the Coverage Indicators tab informs the calculation of the Quantitative Indicator
Rating.
9
Refer to the respective indicator guidance sheets available in the 13. Additional Resources of this guidance document.
Page 17 of 81
TAB 1.E. WORK PLAN TRACKING MEASURES
When grants do not include any coverage indicators, Work Plan Tracking Measures (WPTMs) are
used to assess performance and make annual funding decisions. Some grants may include both
coverage indicators and WPTMs. In this case, both will be reported in the respective section.
For each Workplan Tracking Measure (WPTM), all modules, interventions, activities, milestones, and
criteria for completion for the specific activity and for the period which are due for reporting are pre-
populated, based on the signed PF.
The PR categorizes progress on WPTMs (i.e., milestones and targets for input and process
indicators) by selecting an appropriate value in the Progress Status column:
Specific LFA Requirements
The LFA verifies the PR reported results and self-attributed progress status against the activities and agreed
milestones and assigns a verified progress status.
Implementation progress during the reporting period
Status
No progress against planned milestone or target
Not started
Less than 50% of the milestone or target
Started
50% or more completion of planned milestone or target
Advancing
100% achievement of planned milestone or target
Completed
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5 FINANCIAL REPORTING
GENERAL PRINCIPLES OF FINANCIAL REPORTING TO THE GLOBAL FUND AND
KEY DEFINITIONS
The financial reporting section of the PU/DR provides the Global Fund with a minimum set of reliable
information on the implementation of grants. This financial information is important:
▪
To assist grant management: Having financial breakdowns and variance analyses, and
being able to link financial information to programmatic performance, strengthens the ability
to make informed funding and investment decisions (e.g. allocations, annual funding
decisions and disbursements).
▪
To pinpoint areas of financial risk: Tracking expenditures against budgets also enables an
analysis of financial risks across the grant portfolio. For example, where is the largest
proportion of funds being allocated and used? Are the funds being spent in the planned
areas in a timely manner? Are there any bottlenecks that impact absorption and program
implementation (such as in procurement)?, and others.
▪
For external reporting and resource mobilization: Being able to demonstrate the
efficiency of Global Fund investments and that funding is spent in line with the approved
Global Fund grant agreement to achieve maximum impact in the disease program is critical
for external reporting and resource mobilization.
▪
For transparency and accountability: Being able to accurately report on the use of funds to
donors, the general public, and other stakeholders in an efficient and timely manner is one of
the core principles of the Global Fund.
The information reported in the financial sections of the PU/DR is based on the PR’s accounting
and other program records, and on those of SRs. It is supported by relevant breakdowns,
schedules, summaries, and notes based on the financial, accounting and management systems
used.
Supporting documents must be made available for review of the Global Fund and the LFA. Where
applicable, supporting documentation can be included in the annexes.
The PR is not expected to replace existing accounting and financial information systems or create
parallel systems but is required to adapt, as needed, accounting and financial information from
existing systems to meet the Global Fund’s requirements.
Actual expenditures incurred in a currency other than the grant currency are translated into the grant
currency using the spot rate applicable on the day of each transaction. If the use of daily rates is not
practical, the average exchange rate (monthly or quarterly) for the reporting period is used. The
source and actual exchange rates used in the calculations are to be disclosed.
The following definitions apply:
▪
Financial commitment: A current contractual obligation to pay a specified amount against
goods and services already received i.e., the goods/services have been received, however,
the related payment is not yet made (all or partial) either due to delay in/non-receipt of
invoices, use of favorable payment terms or prolonged payment process. Financial
commitments mainly include accounts payable and creditors.
▪
Financial obligation: A current contractual obligation to pay an agreed amount (as per
signed contract and/or Purchase Order) to a third party for the provision of goods/services
Page 19 of 81
at a certain point of time in the future, i.e., goods or services are yet to be received.
The PR is required to share any additional information that can improve understanding of the
reported financial information. The PR is also required to make every possible effort to facilitate the
work of the LFA during its program review and verification process, whether it is done on-site or
remotely.
SPECIAL CASES
If any of the special cases outlined below apply to a grant, the PR explicitly discloses the nature of
the situation and any departures from these guidelines in their PU/DR.
Restatement of financial information reported previously for the same implementation
period, as stipulated in section 3.7 of the Grant Confirmation.
In certain cases, past expenditure and budget information reported in one or several previous
PU/DR(s) need to be updated to correct material errors, such as erroneous exchange rate
assumptions, ineligible transactions
10
or arithmetic errors. Adjustments made in the subsequent
PU/DR to correct the reported cumulative and actual expenditure, disbursements to SRs and budget
amounts can require updating current cash balances. Following such adjustments, the PR is required
to issue an official letter or provide a copy of the note to file duly approved by the accountable official
of the PR to the Global Fund, indicating the correct cumulative and actual cash outflow and budget
amounts, as well as a description of the adjustments and reasons for these adjustments.
Reporting under fiduciary agency (including fiscal agent) arrangements.
Reporting for a grant that utilizes the services of a fiduciary or management agency is no different
from reporting under regular grants managed directly by a PR. All budgets, actual expenditures,
revenues, disbursements, and other financial information related to the grant are to be reported as
though directly managed by the PR, even if, for example, some expenditures and cash balances
are to be found at the fiduciary or management agency level.
TAB 2. PRINCIPAL RECIPIENT CASH RECONCILIATION STATEMENT
The PR Cash Reconciliation Statement (hereinafter referred to as the cash reconciliation statement)
provides information on the program’s cash position as at the reporting period end, showing the
movements in cash (cash inflows and outflows) during the period covered by the PU/DR. The cash
reconciliation report to the Global Fund covers the PR’s cash balance in support of Global Fund
disbursement decisions.
This statement is required to be completed in the currency of the grant, as stipulated in section 3.6 of
the Grant Confirmation. It is to consider disbursements made directly to the PR and on its behalf to
third parties; other income received, including that related to income generating activities; PR
expenditure; and net gains and losses arising from exchange rate fluctuations.
The cash reconciliation statement is required to:
i. Fully reflect all bank accounts owned and held by the PR and SRs (when applicable) for
implementation of grant activities irrespective of physical location and currency denomination
10
For purposes of PU/DR reporting, ineligible transactions include both non-compliant expenditure as defined in section 2.5.1 of the the
Global Fund Guidelines for Grant Budgeting. and/or income, foreign exchange and any other adjustments required to arrive at the
accurate cash position.
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of those accounts. It is to also include any grant funds held with fiduciary agents (if
applicable).
ii. Provide information on the PR’s bank statement balances as detailed below.
iii. Include information on open advances at the level of SRs (funds disbursed to SRs and not
yet reported as expenditures), at wambo.org/PPM level (difference between total payments
made and value of goods received) or for other PR advances to staff, suppliers, and others.
Open advances are any cash outflows made for which no corresponding expenditure has
been recognized.
iv. Include financial commitments and financial obligation analyzed between those at their level
and those at the level of their SRs and accrued severance entitlements
11
. For financial
commitments, the PR is required to also provide the balance at the start of the period.
v. Include a section which pulls out information from different sections of the PU/DR form to
enable the triangulation of financial figures. This helps the PR, the LFA and the Global Fund
to appreciate the internal consistency of the information provided and resolve any inaccurate
reporting forthwith.
vi. Provide information on non-compliant expenditure identified under the grant to facilitate
transparency and reporting of these to the Global Fund for data alignment purposes.
In addition, in case of a program continuation (signing of a grant for a subsequent implementation
period with the same PR), the PR is required to report the final cash balance for the previous
implementation period as opening balance for the new implementation period.
For reporting purposes, a distinction is made in the cash reconciliation statement between regular
funds and C19RM funds. Disbursements made by the Global Fund to and on behalf of the PR as
well as cash outflows from the PR’s side are analyzed accordingly.
The SR cash reconciliation is also provided (see Tab 3 ‘Sub-Recipient Cash Reconciliation’).
The cash reconciliation statement only covers financial transactions for the grant implementation
period,
12
as stipulated in section 3.7 of the Grant Confirmation.
The PU/DR enables reporting on cumulative financial data for previous periods, transactions
incurred during the current reporting period and adjustments approved by the Global Fund. Upon
validation of the PU/DR, the Global Fund shares a communication with the PR in the form of a
Performance Letter indicating the required adjustments (including any ineligible transactions) for the
PR to take appropriate actions within the stipulated timelines and prior to the submission of the
PU/DR for the next reporting period.
TAB 2A. OPENING CASH BALANCE AT START OF IP
For the continuing PR, for the purpose of calculating the budget utilization ratio, opening cash
balance at the start of the IP needs to be taken into consideration. As such, cash balances rolling
over from the previous IP are reported for all PU/DRs. This information comes from the validated
Financial Closure Report and is confirmed by the Global Fund through the Implementation Letter. It
includes balances at both the PR and SR level.
11
Refer to section 1.1. of the Operational Guidance for Grant Budgeting.
12
Including end-date revisions and closure periods communicated through the relevant Grant Agreement and/or Implementation/Notification
Letters.
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Table A: Principal Recipient Cash Reconciliation Statement in IP Currency
This table captures relevant financial data to calculate the PR (including sub-offices of the PR) cash
balance at the end of the reporting period.
Item 1.1 – ‘PR cash balance: beginning of the current financial reporting period’
13
The PR’s opening cash balance for the first PUDR under the current IP is required to correspond to
the FCR-validated cash balance of the previous IP less cash refunds made to the Global Fund after
the financial closure as communicated by the Global Fund in the Implementation Letter in case of a
continuing PR. Otherwise it is nil.
If this opening cash balance coming from the Financial Closure Report (FCR) of the previous
implementation period includes SR cash balances as well, then the portion relating to the SRs is
included as an outflow as part of lines 3.4a and/or 3.4b – PR disbursement(s) to sub-recipients. For
example: if the FCR closing cash balance (as a reminder this refers to the total closing cash balance
for the IP) was of US$1,000 made up of PR cash balance of US$700 and SR cash balance of
US$200 for regular funds and US$100 for C19RM, then section 1.1 shows the full US$1,000 while
the US$200 of regular funds are included under 3.4a - Regular Funds: PR disbursement(s) to sub-
recipients and the US$100 for C19RM is included under 3.4b - C19RM Funds: PR disbursement(s)
to sub-recipients. The PR provides comments under line 1.1 to explain accordingly.
13
The opening cash balance of the first PU represents any available in-country cash balances (PR, SR, procurement agents, etc..) at the
end of the previous implementation period and/or grants that were incorporated as part of the funding available for the current
implementation period.
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For subsequent PUDRs, the opening cash balance is to correspond to the prior period’s closing
cash balance as reported by the PR
14
under line 5.1. Any adjustment required as per the validated
figures from the Global Fund is to be reported under other reconciliation adjustments for the current
period and/or processed as justification or reimbursements for ineligible transactions in the current
reporting period. There is to be no restatement of prior period records unless required for audit
purposes.
Item 2. ‘IP Income’
This is to capture all income received under the grant cumulatively for prior periods and the current
period.
Disbursements made by the Global Fund, whether directly to the PR, through PPM / wambo.org, or
directly to third parties, are classified as regular or C19RM.
These disbursements are pre-populated in the PU/DR by the Global Fund. If the PR notices any
discrepancy between the pre-populated data and their accounting records, the PR must reconcile
the disbursement notification letters and statements shared by the Global Fund and include the
comments in the relevant sections of the PU/DR.
Item 2.1a and 2.1b – ‘Disbursement made directly by the Global Fund to the Principal
Recipient’
Direct disbursements made to the PR by the Global Fund for regular (Item 2.1a) or C19RM (Item
2.1b) funds, based on information contained in the disbursement notification letter sent to the PR. If
there are direct disbursements made by the Global Fund to SRs, these are included under these
respective sections. The PR is then required to include as part of lines 3.4a - Regular Funds: PR
disbursement(s) to sub-recipients and 3.4b - C19RM Funds: PR disbursement(s) to sub-recipients
the respective amounts disbursed to the SRs. The notification letters from the Global Fund will
specify the nature and payees for the disbursements.
Item 2.2a and 2.2b – ‘Disbursements made by the Global Fund through PPM / wambo.org’
Direct payments made by the Global Fund through the Pooled Procurement Mechanism /
wambo.org for allocation or C19RM funds. This amount corresponds to the disbursement notification
letters sent to the PR for such payments.
Item 2.3a and 2.3b – ‘Other direct disbursements made by the Global Fund’
Direct payments made by the Global Fund for allocation or C19RM to third parties, as authorized by
the PR (e.g., payments made to the Global Drug Facility or Fiscal Agent). This amount is to match
the disbursement notification letters sent to the PR for such payments.
Please note: Any associated bank charges, currency translation fees and other financial
transactions costs on disbursements cannot be deducted. Instead these are included as
expenditure under ‘Bank charges on disbursements and payments.’
Item 2.4 – ‘Interest received on bank accounts’
This represents income received during the current reporting period from bank accounts held by the
PR as indicated in bank statements.
14
This is to be based on the accounting records and transactions of the PR.
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Please note: the grant agreement does not authorize the PR to invest cash in other financial
instruments or in long-term deposits.
15
Funds deposited in an interest-bearing account are to be
available for immediate use for program purposes as needed.
Item 2.5 – ‘Revenue from income-generating activities and other income (e.g., income from
disposal of assets, etc.), if applicable’
This represents additional income arising from the sale of commodities/products and other services,
if applicable (e.g., micro loan interest, and others), as well as other income-generating activities
funded by the program and approved by the Global Fund. It also includes any income outside the
above items which arise outside normal or regular grant activities, e.g. income arising from disposal
of assets, or program specific donations or contributions by third parties.
Item 2.6 – ‘Tax refunds received (e.g., VAT/other tax returns)’
This represents all reimbursements received from tax authorities with respect to taxes incurred in
the current financial reporting period. The amounts refunded, including SR taxes, are linked to
PU/DR Tab 7: Tax Reporting. (Refer to tab 7 Tax Reporting in Financial Reporting of this guidance
document for further details).
Item 2.7 – ‘Total IP Income’
This is automatically calculated based on the financial information entered in the fields above.
Please note: Reimbursements received by the PR from suppliers (PPM / wambo.org or the Global
Drug Facility (GDF)) are to be included under the relevant IP income sections as a negative amount
instead of another income element under section 2.5 or 4.1 of the PR cash reconciliation PU/DR.
Specific LFA Requirements
Guidance on Item 1.1.
The LFA reviews
16
and proposes adjustments as appropriate. Explanations for adjustments for exceptions and
additional context regarding PR-reported information are included in the section ‘For Local Fund Agent Use Only.’
The LFA’s scope of work, unless otherwise agreed with the Global Fund, includes:
▪
Verifying the opening cash balance against the FCR and Implementation Letter, providing comments for identified
deviations, and proceeding to the required adjustments where applicable.
▪
Verifying consistency with previous periods’ information and providing comments for identified deviations.
Guidance on Items 2, 2.1a, 2.1b, 2.2a and 2.2b.
This information is pre-populated and does not require detailed verification. In case the LFA notices any discrepancy
between the pre-populated figures and the PR’s underlying records, the LFA is requested to provide the required
comments where applicable.
Requirements for Items 2.3a, 2.3b. 2.4, 2.5, 2.6, 2.7.
The LFA:
▪
Verifies and validates the accuracy of entries and source documents for interest received on grant income, income
generating activities, and any other sources of income.
▪
Ascertains whether the events, transactions, balances, and other matters disclosed in the cash reconciliation
statement:
o
Are correctly recorded.
o
Have occurred and/or are relevant to the reporting period.
o
Pertain to the entity.
o
Are correctly and accurately disclosed (with regards to amounts).
▪
Provides comments with sufficient details with respect to any adjustments or key considerations made in the report.
15
As stipulated in clause 3.4 (1) (c) of the Grant Regulations (2014) or Global Fund Grant Regulations Version 2 (2023).
16
Review procedures can include but are not limited to the inquiry of management/staff, observation of process/ procedures and
inspection of financial information.
Page 24 of 81
Item 3. IP Cash Outflows
This item comprises expenditure on cash basis in the period of the PU and cumulatively for prior
periods, split between regular and C19RM funds, except for bank charges on disbursements and on
payments, which are to be reported together.
Item 3.1a and 3.1b – ‘Principal Recipient Expenditure (including payments and other advance
payments)’
These represent the cash outflows attributable to activities implemented by the PR to be funded
under the regular budget (Item 3.1a) and C19RM budget (Item 3.1b), respectively. It also includes
indirect and any overhead
17
amounts paid under the grant.
Item 3.2a and 3.2b – ‘PPM / wambo.org payments made by the Global Fund on behalf of the
PR’
The same data as provided in 2.2a and 2.2b above is automatically populated.
Item 3.3a and 3.3b – ‘Payments to other third parties by the Global Fund on behalf of the
Principal Recipient’
The same data as provided in 2.3a and 2.3b above is automatically populated.
Item 3.4a and 3.4b – ‘Principal Recipient disbursement to Sub-Recipients’
This includes all disbursements made to SRs by the PR during the reporting period for activities to
be funded under the regular budget (Item 3.4a) and C19RM budget (Item 3.4b), respectively. In the
case of a first reporting under the new IP, these lines also include SR cash balances forming part of
the opening cash balance under line 1.1. Additionally, any direct disbursements made by the Global
Fund to SRs are included under the respective lines. Refunds from SRs to PR cannot be included
as other income but rather are deducted from the disbursement made.
Please note: Payments made for goods or services to be rendered by suppliers as per valid
purchase orders/contracts and as per agreed grant agreement budget and work plan are to be
17
The Indirect Cost Recovery (ICR) is calculated based on actual expenditure incurred by the PR and disbursements to SRs (excluding any
commitments). When refunds are received from SRs, the PR need to apply an adjustment on ICR on the refund received to reflect the
accurate ICR amount.
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accounted for as advances and reflected in the cash reconciliation statement as PR expenditure
(i.e., under item 3.1a or 3.1b).
Item 3.5 – ‘Bank charges on disbursements and payments’
These include all fees arising from the PR’s normal banking relationship for transactions involving
receipt (e.g., disbursement received from the Global Fund) and payments for grant activities, as
indicated in the PR’s bank statements (e.g., commission on turnover, transfer fee, and others).
Item 3.6 – ‘Total IP Cash Outflows’
This is automatically calculated based on the information entered in the fields above.
Item 4. Reconciling Adjustments: (PR and SRs)
This item captures adjustments required in reconciling the cash balance of the PR.
These adjustments have been categorized as follows:
Item 4.1 – ‘Other reconciliation adjustments (including for previous financial reporting
periods)’
These mainly include, but are not limited to, changes arising from prior periods’ financial information
(i.e., any of the elements of grant income and expenditure above, impacting the calculation of PR
cash balance) emanating from correction of errors, inaccurate posting or new information available.
This amount can be positive or negative depending on the nature of the adjustments. The PR is
required to also include or consider adjustments that were validated, cleared, and officially
communicated by the Global Fund in Performance Letters covering prior periods.
Item 4.2 – ‘Net exchange gains/losses on translation of balances’
Specific LFA Requirements
Requirements for Items 3 (Items 3.1a – 3.6).
The LFA verifies that grant cash outflows consist of compliant expenditures and provide details/analysis
on exceptions to eligibility as part of budget variance analysis. The LFA also provides comments with
sufficient details with respect to any adjustments or key considerations made in the report.
In case the LFA identifies non-compliant expenditures, these are adjusted in the reported expenditures
and identified under item 10.1. However, since the cash outflow has already occurred, no adjustments
can be made to cash outflows.
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This adjustment is to consider foreign exchange, gains or losses from translating closing non-grant
currency balances (functional and/or other currencies) to grant reporting currency balances at the
end of the PU period. Where there is an overall net loss in foreign currency translation,
18
this is
recorded as a negative value.
Please note: In an environment of depreciating (or devaluing, if applicable) local currency versus
grant currency, it is recommended that funds disbursed by the Global Fund be held in the grant
currency up to the point of utilization for program purposes.
Item 4.3 – ‘Total reconciling adjustments’
Automatically calculated based on the information entered in the fields above.
Item 5. Total cash balance: end of the current financial reporting period.
Items 5.1 – ‘Total cash balance in-country’
Closing cash balance at the PR level reported in grant currency is a calculated field. It is translated
at the spot exchange rate as of the end date of the reporting period (in the event the cash is held in
non-grant currency). The foreign exchange adjustment derived from the translation is entered in
Item 4.2 of the cash reconciliation. It represents total cash balances whether regular or C19RM.
Please note: The closing cash balance is derived as the PR opening cash balance, adding the total
grant income for the period minus total outflows of funds on a cash basis and adding reconciling
adjustments for the period.
18
In the event disbursements are made by the Global Fund in local currency, the PR will be informed by the Global Fund of the applicable
exchange rate to convert transactions in the grant currency.
19
Refer to sections 2.5.1 of the Global Fund Guidelines for Grant Budgeting.
Specific LFA Requirements
For item 4 (4.1 – 4.3) and Item 5 (5.1), the LFA:
▪
Recommends and explains adjustments to the reported figures due to identified non-compliant transactions
as appropriate.
19
▪
Verifies that all prior period adjustments including those officially communicated to the PR by the Global Fund
have been accurately entered in the reporting period and are backed by adequate supporting documents. In
event there was no adequate supporting documentation available, the LFA captures the findings in the LFA
Findings and Recommendations tab. Please Refer to 9. LFA Findings and recommendations for further
information.
▪
Verifies the accuracy of computations for ‘net exchange gain/losses arising from foreign exchange
translations’ with reference to applicable closing spot rates used with reference to official central bank spot
rate or other applicable interbank rate.
▪
Verifies accuracy and consistency of closing cash balances (PR and SR, the latter of which on special request
by the Global Fund), ensuring that the spot exchange rate is reasonable with reference to official central bank
spot rate or other applicable inter-bank rate and that the amounts agree with updated cash book balances
from month end bank reconciliations.
▪
Verifies the reasonableness of exchange rates used to convert period and cumulative expenditures into the
grant currency.
▪
Provides comments with sufficient details with respect to any adjustments or key considerations made in the
report.
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Table B. Schedule of Open Advances in IP Currency
Open advances are cash outflows for which no corresponding expenditure has been recognized by
the PR. Three levels of aggregation of open advances are provided under Table B with respect to
SRs, PPM / wambo.org advances and PR advances for local procurement or staff advances, for
instance.
▪
Sub-recipient Advances: funds advanced by the PR for which the respective expenditure
has not yet been validated by the PR. The information in this section of the PU/DR comes
directly from the Tab 3. Sub-recipient(s) cash reconciliation.
▪
PR Procurement Advances (PPM and others): relate to PPM / wambo.org advances only.
Payments made to other suppliers directly by the Global Fund such as GDF, Cepheid, and
others are included under ‘PR Other Advances’ section. They represent the differences
between total disbursements made by the Global Fund and the value of goods received in-
country as confirmed by the PR.
▪
PR Other Advances: these relate to other advances, which include but are not limited to
advances provided to staff for travel-related costs, advances to local suppliers, payments
made to GDF and other direct payments, funds balances sitting in mobile money platforms
and prepayments for goods and services. The PR is required to submit to the Global Fund
and for the LFA to review, the required schedules supporting the reported amount of other
advances.
Item 6.1 – ‘Open advances at the beginning of the current financial reporting period’
The PR’s open advances balance at the beginning of the current financial reporting period for the
first progress report is required to be nil.
For subsequent reports, it is to correspond to the prior period’s closing balance as reported by the
PR under item 6.8.
Item 6.2 – ‘Disbursements made through PPM / wambo.org’
The same data as provided in 2.2a and 2.2b above is automatically populated.
Item 6.3 – ‘Other direct disbursements made by the GF’
The same data as provided in 2.3a and 2.3b above is automatically populated.
Item 6.4. – ‘Disbursements to sub-recipient(s) and other suppliers’
These are cash outflows at the PR level in favor of the respective service providers.
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Item 6.5. – ‘Less: value of goods and services delivered against open advances’
The value of goods and services delivered during the current financial reporting period for which an
advance was recorded is reported here. It corresponds to the value of advances liquidated during
the current financial reporting period.
Item 6.6. – ‘Sub-recipient(s) other income’
These constitute income arising from regular grant activities as covered in the grant confirmation’s
budget, such as income generating activities and bank interest income. This can also include
income arising outside normal grant activities, such as realized proceeds from the approved
disposal of grant assets.
Item 6.7. – ‘Sub-recipient(s) refunds’
This represents the refunds received (if any) from the SR(s) during the reporting period. However, if
adjustment in 3.4. was already made then the same adjustment is not shown in 6.7.
Item 6.8. – ‘Open advances at the end of the current financial reporting period’
This is automatically calculated based on the information entered in the fields above.
Specific LFA Requirements
For Items 6 (6.1 – 6.8) the LFA:
▪
Completes the respective fields based on the information reviewed at PR level. It is not required to proceed with
a detailed review of each SRs’ underlying records unless requested by the Global Fund.
▪
Reviews the completeness and accuracy of the value of goods and services delivered during the reporting period
as reported by the PR to determine the closing balance of open advances for PPM / wambo.org.
▪
Reviews the completeness and accuracy of the reported amount of other advances and includes comments
wherever applicable on the ageing of such advances, the timely liquidation thereof into expenditures and any
other relevant information.
Table C. Principal Recipient Financial Commitments & Obligations
Financial commitments and financial obligations as defined above
20
arising at PR and SR levels are
to be recorded here together with the amount of accrued severance entitlements.
Item 7.1a and 7.1b – ‘Total financial commitments’
20
Refer to 5. Financial reporting section of the document
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In addition to the closing balance of financial commitments arising at PR and SR level (where
applicable), the PR is required to include the corresponding amount for the previous financial
reporting period. For the first report, the amount for the previous financial reporting period must be
nil.
Item 7.2a, 7.2b and 7.2c – ‘Financial obligations and accrued severance’
Balances at the end of the current financial reporting period are reported here.
Please note that for accrued severance entitlements, where applicable, the PR is required to report
on the cumulative balance at the end of each financial reporting period.
Item 7.4
21
– ‘Total financial commitments & financial obligations’
This is the total amount of items 7.1a to 7.2c, above.
Item 7.5 – ‘Uncommitted cash balances’
This is for information purposes only and is calculated as the difference between PR cash balance
in-country and total financial commitments and obligations.
Please note: Table 2C is meant for disclosure, triangulation and analytical purposes only and does
not impact the calculation of the PR’s cash balance.
Table D. Triangulation of Financial Figures
21
Previously used category 7.3 has been retired and is no longer in use.
22
Refer to 5. Financial reporting, Special cases of the document
Specific LFA Requirements
For items 7 (7.1 – 7.5), the LFA verifies the reasonableness of the amounts disclosed as PR financial commitments
and other financial obligations in accordance with the applicable PR accounting principles and with reference to the
definitions
22
on financial commitments and obligations. This includes assurance that these commitments and other
obligations have third party supporting documents and represent goods and services rendered or expected to be
rendered with reference to the currently approved grant budget, annual funding decisions and associated
disbursements made to the PR. SR financial commitments and obligations are verified based on the SR reports
collected by PR. It is not required to verify other supporting documents at SR level.
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The objective of triangulation is to ensure completeness and accuracy of financial information
presented in the PU/DR. It involves the reconciliation of the closing cash balance in Tab 2: Principal
Recipient Cash Reconciliation with Tab 4: Total Expenditure, taking into consideration financial
commitments and open advances. For more details, see Tabs 2 and 4 of the PU/DR and the
relevant sections of the guidance.
Please note: All figures are automatically calculated based on inputs in other sections. Space for
comments is provided. Triangulation differences must be investigated and explained.
Population of items:
Item 8.1 – ‘PR cash balance: beginning of the current financial reporting period’: PR cash
balance at the start of the financial reporting period from item 1.1.
Item 8.2 – ‘Open advances: beginning of the current financial reporting period’: sum of item
6.1 – open advances at the level of the SRs, PPM / wambo.org and other PR advances.
Item 8.3 – ‘Total IP income’: item 2.7 – total of disbursements and other income for the current
financial reporting period.
Item 8.4 – ‘Total expenditure per PR expenditure report’: total expenditure for the current
financial reporting period as per Tab 4: Principal Recipient Total Expenditure.
Item 8.5 – ‘Net change in total financial commitments from previous year’: difference between
the current financial reporting period and the previous reporting period for items 7.1a and 7.1b.
Item 8.6 – ‘Open advances at the end of the current financial reporting period’: sum of item 6.8
– open advances at the level of the SRs, PPM / wambo.org and other PR advances.
Item 8.7 – ‘Total reconciling adjustments’: populates from item 4.3 – total reconciling
adjustments.
Item 8.8 – ‘Total expected PR closing cash balance’: calculates opening cash balance at PR
level (8.1), the open advances (8.2) plus all disbursements made to and on behalf of the PR (8.3),
minus all expenditures recognized (8.4) and adjusted for net change in financial commitments (8.5),
open advances at the end of the period (8.6) and reconciling adjustments (8.7).
Item 8.9 – ‘PR cash balance’: item 5.1, the calculated in-country cash balance at the level of the
PR.
Item 8.10 – ‘Triangulation variance to be reconciled or reimbursed by PR’: item 8.8 – total
expected PR closing cash balance, minus item 8.9 – total cash balance in country. Examples of the
justified triangulation variances include:
- SR income.
- SR net exchange gain or loss from translation of balances.
- Open ineligibles.
- Refund of taxes.
- SR refunds (excluding SR refunds to the PR).
Specific LFA Requirements
For items 8 (8.1 – 8.10): This section is a compilation of information provided elsewhere in the PUDR. The analysis
of the variances and any recommended adjustment are required to be made in the respective sections.
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Table E. Principal Recipient Bank Statement Balance & Cash In-Transit in IP
Currency
This section provides financial information on PR bank statement balances, cash in transit during
the current PU period and cash in transit falling outside that period
23
(i.e., falling in the disbursement
request period).
Item 9.1 – ‘Principal Recipient Cash Balance as per bank statements’
The PR is requested to furnish the Global Fund with the bank statement balance as at the PU period
end for analytical purposes only as part of determining annual funding and subsequent
disbursement decisions. These balances are for bank accounts maintained in grant currency and for
those in other currencies (including local currency) translated into grant currency using the prevailing
official spot exchange rate.
In the case of a comingled account, provision of the grant allocated bank balance is required and is
referred to as ‘fund balances’ and indicated as such in the comments field.
Item 9.2 – ‘Bank reconciliation net amount’
Reflecting the bank reconciliation statement balance, this represents the cash balance as reported
under line 9.1, which is adjusted for reconciling items, such as unpresented checks or bank charges
not booked in the PR’s accounting.
Item 9.3 – ‘Cash in-transit for the current financial reporting period’
This is automatically calculated based on information provided in Tab 6: Forecast and Disbursement
Request.
Item 9.4 – ‘Cash in-transit after the current financial reporting period’
23
This information is included if the PR has received disbursement notification before the PU/DR submission due date to the Global Fund,
otherwise, the information is not required.
Note: while the cash received by the SR is recorded in the triangulation, the SR income is not (the SR(s) other income
amount (recorded under 2B 6.6) is not included in 2D 8.3 Total IP income). Further, certain elements such as ineligibles
or refunds which impact the cash reconciliation across different reporting periods may create triangulation difference
for the reporting period. To address this, the LFA is expected to include in the comments section that the triangulation
difference relates to the justified variances.
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This is automatically calculated based on information provided in Tab 6: Forecast and Disbursement
Request.
Please note: The PR must include all commitments and outstanding payments in the disbursement
forecast, as cash balances
and cash in-transits are deducted from the disbursement forecast.
Specific LFA Requirements
Guidance on Items 9 (9.1 – 9.4).
The LFA verifies:
▪
The reported PR bank statement balance against official bank statements.
▪
That a bank reconciliation statement has been prepared by the PR for the financial reporting period closing
cash position.
▪
That cash in transit amounts are accurate with reference to disbursement notification letters for disbursements
to the PR and to third parties on behalf of the PR, ensuring they relate to the periods as explained above.
Table F. Principal Recipient Ineligible Transactions in IP Currency
This section of the cash reconciliation statement is meant for the tracking of ineligible transactions to
ensure transparency and alignment on potential recoverable amounts as at the reporting period end
date, arising from expenditures which have been declared as ineligible during the current
implementation period of the grant and formally communicated through Performance,
Implementation or Notification Letters.
Item 10.1 – ‘Ineligible transactions validated for the current financial reporting period’
Relates to identified expenditure in the current reporting period deemed non-compliant by the PR
based on the guidelines on ineligible transactions.
24
Item 10.2 – ‘Ineligible transactions from previous financial reporting periods for which
justification was approved by the Global Fund’
This is pre-populated from the Global Fund’s Recoveries Module.
Item 10.3 – ‘Reimbursement of ineligible transactions from previous financial reporting
periods’
24
Based on the guidelines on ineligible transactions contained in section 2.5.1 of the Global
Fund Guidelines for Grant Budgeting.
Page 33 of 81
This is pre-populated from the Global Fund’s Recoveries Module and reflects transactions for which
the PR has provided a physical refund to the grant bank account or transferred the funds directly to
the Global Fund.
Item 10.4 – ‘Cumulative ineligible transactions for the implementation period’
This is the sum of all ineligible transactions since the start of the current implementation period and
is pre-populated from the Global Fund’s Recoveries Module.
Item 10.5 – ‘Open ineligible amounts receivable’
Represents the value in IP currency of ineligible transactions as of the end of the reporting period. It
is automatically calculated based on the information entered in the fields above.
Item 10.6 – ‘Net recoverable amount from recoveries module’
For information purposes only, this field shows the balance of recoverable amounts as identified in
the Global Fund’s Recoveries Module. Any differences between 10.5 and 10.6 are reconciled by the
Global Fund and may be communicated to the PR in the Performance Letter upon resolution.
Item 11 – ‘Validated / Unvalidated net cash recoverable’
This shows the net cash available in country after taking into consideration confirmed and newly
identified non-compliant transactions, for information purposes only.
25
This requirement to be in line with the guidance under Section 2.5.1 of the Global Fund Guidelines for Grant Budgeting.
Specific LFA Requirements
Guidance on Items 10 - 11.
The LFA is required to report transactions considered to be non-compliant for the current financial reporting period,
with sufficient details.
25
Page 34 of 81
TAB 3. SUB-RECIPIENT CASH RECONCILIATION
To support annual funding decisions and decisions on cash transfer needs, the PR provides
financial data on the management of SR advances. These are the balances as per the PR’s
books and records, which can differ from the actual balances at individual SR levels due to timing
of validation of SR reports and cut-off periods, etc. It is sufficient for the PR to report on the
balances as per its books and records.
The SR cash reconciliation statement captures the reconciliation of funds provided to SRs at a
given PU period end date. SR open advances are defined as disbursements made to SRs and
other SR income less SR expenditures validated and recorded by the PR in its records as fully
liquidated amounts (i.e., recognized officially as SR expenditure by the PR in its own records).
To ensure financial control over resources at the disposal of SRs, the Global Fund strongly
recommends that the PR establishes advance accounting principles for disbursements made to
SRs for program implementation. Although disbursements made to SRs are treated as ‘cash-
outflow’ for purposes of PU/DR reporting, it is important that the PR includes SRs’ expenditure in
their records upon verification and/or validation of SR reports (including verification by assurance
providers).
In certain instances, where ‘zero-cash or restricted cash policy’
26
is in place, the PR is required to
report payments made under such policies as actual disbursements to SRs (Item 3.4a and Item
3.4b of the PR cash reconciliation statement) and also treat them as SR expenditure in the SR
cash reconciliation section (columns 4 and 6).
If adequate controls and risk mitigation measures are in place, the PR is required to apply a risk-
based approach for the verification of SRs’ expenditure, and verification can be performed on a
sample basis.
Sample expenditure verification can also be performed by the LFA or other assurance providers
depending on the country context.
1.
Sub-recipient Name: the SR(s) for which financial details are being given. Where there are
a significant number of SR(s) involved in the implementation of the grant and to simplify the
reporting process, the PR can be authorized by the Global Fund to input ‘Other’ to group
SRs that have managed a cumulative budget below US$50,000 as at the end of the PU
reporting period.
2.
Cumulative Sub-recipient expenses for previous financial reporting periods at the
Principal Recipient level: the cumulative expenditure amount validated by the PR and
entered into its accounting records derived from amounts previously disbursed to SRs as at
the end of the previous PU reporting period.
3.
Sub-recipient(s) Open Advances at Principal Recipient Level: open balances from the
previous PU period regarding advances provided to SRs that are yet to be validated and/or
booked as grant expenditure as part of the PR’s regular accounting closure process.
27
4.
Disbursements made by the Principal Recipient or directly by the Global Fund during
the current financial reporting period: all direct disbursements made by the PR to SRs
during the PU/DR reporting period and direct disbursements made by the Global Fund to the
26
Such policies imply that the PR makes direct payments on behalf of the SRs.
27
The Global Fund strongly recommends a monthly closing of accounts by all implementers and recipients of funding.
Page 35 of 81
SRs. These are cash outflows at the PR level, which impact the cash balance, however, they
do not constitute expenditure in the form of payments for goods and services. This amount is
to fully reconcile and correspond to the amount reported in item 3.4a and 3.4b (i.e., ‘PR
disbursement to SRs’) in the PR cash reconciliation statement.
5.
Other Income during the Current Financial Reporting Period: constitutes income arising
from regular grant activities as covered in the grant confirmation’s budget, such as income
generating activities and bank interest income. This can also include income arising outside
normal grant activities, such as realized proceeds from the approved disposal of grant
assets.
6.
Expenditure validated by Principal Recipient during the current financial reporting
period: expenditure accepted and/or validated by the PR as SR expenditure for the PU/DR
reporting period, following a formal process of verifying supporting documents
28
of
expenditure transactions.
7.
Refunds Received from Sub-recipient: Refunds received (if any) from the SR(s) during the
reporting period.
8.
Sub-recipient Closing Balance at Principal Recipient Level: Open SR advances
maintained by the PR as at PU period end date. It represents expenditure which is yet to be
officially validated, cleared and recognized by the PR in its accounting records; funds for
activities which are yet to be implemented by the SR; and/or savings from activities
implemented. It does not require any direct input from the PR and is the product of points 3
through 7 above.
9.
Actual Sub-recipient(s) Cash Balance (if applicable): to be filled in by the PR upon proper
verification and validation of SR cash balances as at the reporting period. In all cases, the
PR is required to have oversight mechanisms in place to provide assurance on
reasonableness of SR expenditure and cash balances.
10. Variances on Sub-recipient(s) Balances: does not require any direct input from the PR
and is the difference between the closing balance at PR level in respect to open SR
advances and actual SR cash balances. The PR is required to ensure that it takes all steps
necessary to ensure that this variance is kept to a reasonably low level by ensuring proper
oversight of SR(s) expenditure, timely disbursements, and reporting.
Specific LFA Requirements
Only if requested by the Global Fund, the LFA reviews and reports this section of the PU/DR.
The LFA review is based on the documents available at the PR level, e.g., SR reports collected by PR. The LFA does
not review other documents at SR level unless specifically requested by the Global Fund. Depending on risk factors,
LFA financial verification work can include site visits to SRs in addition to verifying PR-held financial information on
SRs.
29
The LFA verifies:
▪
Consistency of cumulative SR expenses for prior periods with the amounts reported in the previous PU/DR.
▪
Correspondence of SR open advances to both closing balances for the previous PU/DR reporting period and
PR’s underlying books and records.
28
The verification of SR expenditure is based on a risk-based approach and can be performed on a sample basis in cases when
adequate controls and risk mitigation measures are in place.
29
For further information refer to the section 11.2 Recommended approach for the review and verification of information.
Page 36 of 81
▪
Correspondence of the reported PR disbursements to SRs, notifications sent to SRs and amounts entered in
PR’s accounting records for advances, which form the basis for the entry made on items 3.4a and 3.4b of the
PR cash reconciliation statement.
▪
Completeness and accuracy of ‘other income’ reported at the level of SRs.
▪
Accuracy and support for amounts booked by the PR (by way of expenditure returns from SRs, with
supporting documents such as delivery notes, invoices, payment vouchers, receipts, and others) as
constituting validated SR expenditures, and also accuracy of closing SR open advances reported by the PR.
▪
Reasonableness of reported SR cash balance, including recommending adjustments to these balances where
there is inaccuracy, provided the PR has been requested to provide SR cash balance information in the
column.
▪
‘Actual SR Cash Balance (if applicable)’. Where a PR elects to provide SR cash balance information, the LFA
reviews upon request of the Global Fund.
▪
The adequacy of underlying systems and oversight controls in the management of SR advances by the PR.
TAB 4. TOTAL EXPENDITURE
The purpose of PR expenditure reporting is to enhance the overall expenditure analysis of Global
Fund investments. The report covers in-country expenditures and variance analysis against the
approved activity plan for regular and C19RM (where applicable) activities and funding for PRs
and SRs. In line with the approved detailed budget for grants, the Expenditure Report
requirement provides a standardized reporting approach that incorporates the costing dimension
(cost grouping/inputs) as an integral part of the overall modular approach, which further enhances
the standardized modules and interventions.
This integrated approach and standardized menu for cost and modular classification removes
ambiguity and provides greater alignment with partners, country data systems, and national
health accounts. It also provides analytical granularity for both budgeting and expenditure
reporting and thus enhances strategic and operational information in the management of Global
Fund investments. The Expenditure Report is thus fully aligned to the modular approach and
costing and provides additional visibility to better understand in-country expenditures. It also
provides information on Global Fund investments and their linkages to programmatic results and
impact.
Reporting schedule
The PR is required to submit the Expenditure Report for each grant at least annually from the
agreed grant start date (i.e., month 12, month 24, etc.). The first Expenditure Report for any
grant, depending on the start date and alignment to country/PR reporting cycles, can cover a
period of six to 18 months, and every 12 months thereafter.
The PRs implementing in High Impact and Core portfolios are required to submit annual
expenditures as part of the PUDR, in addition to cumulative expenditures from the start of
implementation to the reporting period end date in the Expenditure Report. The Expenditure
Report as an integral part of the PUDR is verified by the LFA, unless the Global Fund decides
otherwise.
The Global Fund at its own discretion can request more frequent reporting (i.e., every quarter for
certain PRs from High Impact or Core countries).
Financial Information
The reported financial information is required to include the approved budgets, expenditures, and
variance analysis by (a) cost dimension groupings; (b) modules and interventions; and (c)
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implementers (PRs and SRs). The total budget and expenditure amounts across all three
breakdowns are to be the same.
In the Global Fund Expenditure Report, amounts reported as expenditures are required to include
all activities for which the goods and services have been received by the grant implementer.
This will include:
▪
Payments made for goods and services delivered
30
during the reporting period; and
▪
Open financial commitments
31
at the end of the period.
However, payments made for which no corresponding goods have been received or services
rendered are not to be included as expenditures. These are to be treated as open advances.
Common examples include payments made directly by the Global Fund with respect to
PPM/wambo.org procurement but for which the goods have not been received, payment of the
advance for external audit services when audit report has not been received, or rental deposit for
premises occupied.
The diagram below depicts the key considerations when determining the expenditure to be
recognized in the current or next reporting period.
Diagram 3: Expenditure reporting for Global Fund purposes
The reporting by costing dimension is based on the cost grouping or cost inputs.
32
The reporting by implementing entity is required to include both the name and the type of
implementing entity. This reporting is to be done at the PR and SR levels (it is not necessary to
report at the Sub-Sub-Recipient level).
Financial information is reported for the current financial reporting period (whether on semi-
annual or annual basis) and cumulatively from the beginning of the implementation period.
Reporting covers the entire grant implementation period budget and expenditure information.
30
Including indirect and any overhead amounts charged to the grant.
31
A current contractual obligation to pay a specified amount of cash against goods and services already received, i.e., the
goods/services have been received however the related payment is not yet made (all or partial) either due to delay in/non-receipt of
invoices, use of favorable payment terms or prolonged payment process. Financial commitments mainly include accounts payable and
creditors.
32
Refer to the Global Fund Guidelines for Grant Budgeting.
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Annual depreciation expenses will not be considered in the Expenditure Report and equipment
acquired during the year needs to be expensed fully in the year of acquisition. Consequently, the
full cost of equipment is included in the Expenditure Report of the year of acquisition.
Treatment of budget variances
The financial reporting is used to explain all variances from the most recent approved budget for
each module/intervention, cost grouping/cost input and by implementing entity.
As a general principle, even in the case of non-material budgetary adjustments,
33
detailed
variance analysis for expenditures is required for variances that are below 95% and above 105%
of the official approved budget for the specific intervention, or by implementing entity, or the
costing dimension under the differentiated reporting requirement.
Based on automated controls, an Expenditure Report is not fully compliant if a variance exceeds
the above-mentioned threshold, and the relevant variance analysis has not been provided by the
PR.
Adjustments to reported expenditures
All adjustments (including those coming from the audit of the financial statements) to PR and SR
expenditures in Expenditure Reports which have already been reported and approved (prior
period Expenditure Report) are to be made in the current reporting period and explained in the
variance analysis of the most current reporting cycle.
It is not possible to change expenditure data in the reports which have already been submitted to
and approved by the Global Fund, because prior period expenditure data is locked from further
changes. Such changes can result from finalization of expenditure verification, refunds received
from suppliers/procurement agents or other audit adjustments for PR/SR/sub-sub-recipient
activities. Consequently, the adjustment is captured as part of the current Expenditure Report and
not as a re-statement of the previous Expenditure Report to which the adjustment relates.
Column ‘Budget’: is pre-populated and corresponds to the approved budget amount for the
relevant period, as per the Grant Confirmation or subsequent revisions formalized through an
Implementation Letter.
Column ‘Actual Expenditure’: corresponds to the actual expenditure (PR direct expenditure
and SR direct expenditure) incurred during the current reporting period.
Please note: The PR is not required to report the disbursements to SRs as expenditure, as they
report the actual expenditure incurred by the SRs. All sub-sub-recipient expenditures as validated
and compliant are captured as part of SR expenditures.
Column ‘Budget Vs. Actual Variances’: is automatically calculated based on the information
entered in the fields above.
Column ‘Absorption Rate’: is automatically calculated based on the information entered in the
fields above.
Column ‘Explanation of Current Period Variances’: it is mandatory to provide an explanation
for variances below 95% and above 105% of the budget. The PR is required to be as specific as
possible when commenting on variances and must explain the link with programmatic results.
33
Refer to relevant section of the Global Fund Guidelines for Grant Budgeting.
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Please note: In cases where a more detailed analysis of the variance is necessary to ensure an
adequate explanation of the variance and the relationship to the programmatic results, the PR is
required to summarize the explanation in the ‘Explanation of Variances’ column and provide
additional information justifying the variance in an empty worksheet in the form. Please include in
the ‘Explanation of Variances’ the reference to the detailed explanation, if applicable (e.g., see
Free Sheets 1, 2, 3, etc.).
The ‘Cumulative Budget’, ‘Cumulative Actual Expenditure’, ‘Cumulative Budget Vs. Actuals
Variances’, ‘Absorption Rate’ and ‘Explanation of Cumulative Period Variances’ columns
reflect the aggregated amounts (including any adjustments) from the beginning of the
implementation period to the end of the period covered by the current PU/DR.
Specific LFA Requirements
The LFA verifies that:
▪
The total ‘Budget for Reporting Period’ corresponds to the approved budget amount for the relevant period as
per the summary budget submitted with the Grant Confirmation or a revised budget subsequently approved
through an Implementation Letter; and
▪
The Actual Expenditures are eligible. Eligible expenditures are those that have been spent in line with the Global
Fund approved budget and used solely for program purposes consistent with the terms and conditions of the
grant confirmation.
The LFA also:
▪
Recommends and explains its adjustments to the reported figures due to identified ineligible transactions
(including mistakes/inaccuracies) as appropriate.
34
▪
Comments on the PR’s explanation of variances.
▪
Verifies that the cumulative budget and expenditure figures reflect the aggregated amounts from the beginning
of the implementation period to the end of the period covered by the PU/DR.
▪
Confirms the reasonableness of any adjustments to cumulative budgets and actual expenditures proposed by
the PR.
TAB 5. C19RM EXPENDITURE
The C19RM Expenditure section covers in-country expenditures and variance analysis against
the approved activity plan for C19RM activities only and funding for PRs and SRs.
The principles for reporting on C19RM expenditures as well as LFA verification are the same as
those presented in the section above on total expenditure reporting, except Tab 4 covers regular
funds and Tab 5, C19RM funds.
Please note: Table D includes automatically calculated fields that monitor cash requirements for
C19RM activities.
34
Refer to sections 2.5.1 of the Global Fund Guidelines for Grant Budgeting.
Page 40 of 81
TAB 6. FORECAST & DISBURSEMENT REQUEST
This section of the PUDR contains a summary of the cash expenditure forecast for activities to be
financed under the regular allocation and under C19RM, where applicable, for the period
immediately following the period covered by the PUDR and for an extra cash ‘buffer’ period of up
to six months where applicable.
It also contains a calculation of the disbursement amount requested by the PR based on the cash
balance, the forecasted cash outflows for the period immediately following the period covered by
PUDR (as well as for an extra cash ‘buffer’ period of up to six months) and cash ‘in transit’ (if
any).
The forecast must be based on a solid understanding of grant implementation and planned
programmatic activities.
The forecast totals reported are to include activities in the approved budgets requiring payment of
goods and services in the next execution period plus buffer period.
Supporting evidence to be provided by the PR can be submitted in a flexible format, by cost
grouping at minimum. In addition, this forecast is to be broken down by:
a) Quarter;
b) Recipient of the funds (PR, direct disbursement from the Global Fund or
PPM/wambo.org); and
c) Type of funding (Regular Funds, C19RM Funds).
The forecast includes new activities to be implemented (new contracts/procurement for goods and
services) and open existing contracts (financial commitments and financial obligations) from which
payments are to be made during the period covered by the forecast.
The PR is required to consider several factors in determining its forecast of cash needs, such as
(but not limited to):
▪
Program absorption capacity: what are the current budget absorption rates
(expenditure/budget) over the most recent periods and are they high or low? What are the
factors causing this, and do any of these factors affect the current period?
▪
Changes to the work plan: have there been major changes to the work plan for the next
period of implementation, such as postponement or acceleration of activities, or delays or
Page 41 of 81
advances in major procurements which have an impact on the cash needed for the period?
▪
Unit price changes: how do current/expected unit prices compare to those in the budget?
▪
Cash balances: are there significant cash balances at the SR’s level, which can reduce
the additional cash required from the PR and consequently the Global Fund? The PR is
required to state whether and to what extent the information on the SR’s cash balances has
been used in the calculation of the requested disbursement amount.
▪
Financial commitments and financial obligations: current confirmed commitments and
obligations to be paid during the disbursement request period.
▪
Macroeconomic factors: have there been major changes in inflation or exchange rates that
can affect the cash needs for the period?
If the forecasted expenditure is significantly different from budgeted amounts, the PR must
specify the major drivers of the deviation and their impact on the variance (in terms of specific
amounts) in the PUDR.
In case of significant variances between forecasted expenditures and budget, the PR is required
to present an updated work plan and budget at the Global Fund’s request.
Recognizing that PRs have different ways of presenting forecasts, the minimum requirements set
out in the detailed description above are nevertheless to be respected. This detailed forecast
must be shared with the Global Fund at the time of submission of the PUDR, if not already
shared as part of reprogramming or cash releases requests.
Such analysis is to be done separately for activities to be financed from the regular allocation and
those to be financed from C19RM, where applicable.
‘Implementation Quarter’: is pre-populated and corresponds to quarters covered by the
disbursement request period, including a maximum of six months of buffer.
‘Source of Funding’: distinguishes between regular allocation funds and C19RM funds where
applicable.
‘Approved Budget’: is prepopulated and corresponds to the budget (by quarter) covered by the
disbursement request period for regular allocation and C19RM funding, where applicable.
Page 42 of 81
‘Principal Recipient Forecast’: the cash forecast (by quarter) of the PR analyzed by regular
allocation activities and C19RM activities, where applicable. The total amount by quarter for each
component needs to correspond to the underlying detailed forecasts to be shared by the PR.
‘Cash balance at the end of current financial reporting period covered by Progress Update’
is completed automatically based on the closing cash balance (Item 5.1 of the Principal Recipient
Cash Reconciliation and taking into consideration the indicative C19RM cash balance, where
applicable as per Table D. Indicative Cash Balance for C19RM Allocation in Tab 5: Principal
Recipient Expenditure Report for C19RM Activities).
‘Cash in transit for the current financial reporting period (Disbursements to PR)’ and ‘Cash
in transit for the current financial reporting period (Third party disbursements)’: the
disbursements made by the Global Fund
35
to the PR or to a third party on behalf of the PR during
the current reporting period but received by the PR after the reporting period end date. For
example, a disbursement made to the PR on 28 June 2022, during the PU semester period
ending 30 June 2022 but received by the PR on 15 July 2022. As this constitutes cash resources
at the disposal of the PR, this amount is automatically deducted from the total forecast amount for
the disbursement request period.
‘Cash in transit after the current financial reporting period (Disbursements to PR)’ and
‘Cash in transit after the current financial reporting period (Third-party disbursements)’: In
certain instances, the Global Fund can release disbursements to the PR (or to a third party on
behalf of the PR) after the reporting period end date, but prior to the due date for PU/DR
submission. When such disbursements are made to and received by the PR after the current
progress, they are included here.
‘Forecasted Disbursement to Principal Recipient’: represents the anticipated direct
disbursement needs of the PR.
‘PPM/Wambo.org forecasted disbursement’: represents the forecasted disbursement to be
made by the Global Fund under the Pooled Procurement Mechanism.
‘Forecasted Direct Disbursement by entity’: represents the forecasted disbursement to be
made to third parties by the Global Fund on behalf of the PR (is not to include disbursements
made under the Pooled Procurement Mechanism). The PR can designate here specific payees
35
The date on the Disbursement Notification Letter transmitted by the Global Fund is during the current reporting period.
Page 43 of 81
like the Fiscal Agent, Global Drug Facility (GDF), Cepheid or the External Auditor amongst others
where payments are to be done directly by the Global Fund.
‘Disbursement Request’: is automatically calculated based on the information from the fields
above.
Please note: The amount for each period and by funding type for this table needs to match with
the amount appearing in the same ‘Disbursement Request’ line of the previous table.
Column ‘Execution Period Total’: is automatically calculated based on information entered for
the respective quarters of the Execution period.
Column ‘Buffer Period Total’: is automatically calculated based on information entered for the
respective quarter(s) of the Buffer period (where applicable).
A field is provided at the end of the section of the PU/DR for the PR to explain significant variance
between the forecasted amounts and the amounts as per approved budgets.
Specific LFA Requirements
For PU/DR reporting, the LFA review of the Forecast and Disbursement tab does not need to be completed unless
otherwise agreed with the Global Fund. The Global Fund and the LFA agree on any information to be provided and its
format, to allow for flexibility considering reviews done as part of reprogramming and cash releases and to avoid
duplication of LFA efforts.
TAB 7. TAX REPORTING
As stipulated in Section 3.5 of the Global Fund Grant Regulations
36
applicable to allocation-
based model grants, Global Fund funding is based on the principle that grant funds are intended
to be free from taxation, so that all the grant funds provided by the Global Fund contribute directly
to the prevention, diagnosis, and treatment of the three diseases in the country.
The required tax exemption for Global Fund purposes mainly includes (but is not limited to):
▪
Customs duties, import duties, taxes or fiscal charges of equal effect levied or otherwise
imposed on the ‘Health Products’
37
imported into the Host Country under the Grant
Agreement or any related contract (collectively ‘Custom/Import Duties’).
▪
VAT levied or otherwise imposed on goods and services purchased using grant funds.
▪
Any other taxes that are applicable in-country based on local fiscal legislations and not
specifically mentioned.
The Global Fund has been requested by donors to report on how this provision is applied across all
our grants before donor commitments are released to the Global Fund. PRs are required to report
on tax exemption information once a year to verify compliance with grant agreements.
The purpose of the Tax Report is to collect information for import duties, VAT related to goods
and services (including commodities and other health products) and any other taxes paid from
Global Fund grants in every reporting period. The tax reporting period is now fully aligned to the
PUDR reporting period.
‘Specify Fiscal Year’: is pre-populated and corresponds to the period covered by the PU/DR.
36
Available at Global Fund Grant Regulations Version 1 (2014) or Global Fund Grant Regulations Version 2 (2023).
37
As defined in the Global Fund’s ‘Guide to Global Fund’s Policies on Procurement and Supply Management of Health Products’
Page 44 of 81
‘PR Grant Tax Exemption Status’ and ‘SR Grant Tax Exemption Status’: the PR is required to
select the appropriate tax exemption status from the drop-down menu list. Tax exemption related
to social contributions and salary income tax does not need to be reported. When different SRs
have different tax exemption status, please choose the option that covers the majority of funds
managed by the SRs.
Please note: The PR is required to ensure the documentation confirming its tax exemption status
and that of the SR(s) is available upon request.
‘Overall Tax Exemption Status’: is automatically calculated based on the information entered in
the fields above.
‘Taxes paid’ (PR and SR): the total taxes (in grant currency) paid by the PR and SR(s) in the
reporting year.
‘Tax recovered’ (PR and SR): the total taxes (in grant currency) recovered from the government
by the PR and SR(s) in the reporting year.
‘Tax unrecoverable’ (PR and SR): is automatically calculated and represents the total taxes (in
grant currency) not recovered from the government by the PR and SR(s).
‘Total Taxes Paid’: is automatically calculated as the sum of PR and SR taxes paid in the
reporting period.
‘Total Taxes Recovered’: is automatically calculated as the sum of PR and SR taxes recovered
in the reporting period.
Please note: The PR is required to enter in the comments field the amount of additional
recoveries expected for the period.
‘Total Taxes Unrecoverable’: is automatically calculated and represents the total taxes (in grant
currency) not recovered from the Government by the PR and SR(s).
‘PR Tax Information Comments’ and ‘Tax Exemption Status Comments’: the PR is required
to enter any relevant comments that will facilitate the review of the Global Fund and the LFA.
Specific LFA Requirements
The LFA is required to:
▪
Review the tax exemption status of the PR and provide contextual comments as to the scope of such
exemption (in terms of types of payments covered, whether for PR and SR activities amongst others).
▪
Assess the information provided by the PR in all sections of the PU/DR form for completeness and accuracy
and to provide relevant comments as to the unrecovered taxes. In particular, whether these are at all
recoverable or if simply a timing difference. A dedicated LFA-specific section is provided in the PUDR form for
LFA comments.
Page 45 of 81
6 HEALTH PRODUCT PROCUREMENT & SUPPLY CHAIN
MANAGEMENT
TABLE 8.A. PRICE & QUALITY REPORTING (PQR)
Table 8.A requests PRs with grants having budgets for health products reportable to the PQR to
provide confirmation that the required information has been entered in the PQR for reportable
pharmaceuticals and health products they have received during the period covered by the
PU/DR.
38
The PR is required to:
▪
Indicate in the PU/DR whether the PQR has been updated with the required information on
the health products received during the period covered by the PU/DR. The PR selects from
the available options: ‘Yes’, ‘No’, ‘N/A’. If ‘No’ is selected, the PR explains why health
procurement information has not been entered; and
▪
Provide all supporting information (e.g., price quotes, pro-forma or final invoices, shipping
documents, etc.) for PQR product categories to the LFA for verification, for the relevant
reporting periods.
Specific LFA Requirements
38
For guidance on PQR data entry, please refer to the Guide to Global Fund Policies on Procurement and Supply Management of
Health Products.
The PR is required to provide:
▪
An extract from the procurement tracking tool, supplies report, or any relevant document showing the list of
items received.
▪
All purchase orders and invoices related to consignments received.
▪
Invoices for consignments received prior to the reporting period but entered into the PQR system during the
period covered by the PU/DR (entries reported into the system with delay).
Supporting Documents
Page 46 of 81
Table 8.A. and Table 8.G. - Status update on Price and Quality Reporting.
During PU/DR verification, the LFA is required to:
▪
Indicate, based on available information, whether the PR has fulfilled its obligation and reported all eligible
entries into the PQR system.
▪
Comment in the PU/DR on the accuracy and completeness of the procurement data entered in the PQR by the
PR.
▪
Ensure that the values of products verified as correct are based on validated amounts derived from supporting
documents (e.g., price quotes, pro-forma or final invoices, shipping documents, etc.). In case of major
discrepancies (>5%) between the information in the supporting documents and the data reported in the PQR,
the amounts need to be updated in the PQR by the PR and re-validated by the LFA. In case of LFA
disagreement with the PR reported information in the PQR, the LFA is required to state any requests for
corrections within the PQR system (in the field ‘Remarks on Consignment’). Doing this will return the entry to
the PR for correction.
▪
Identify and document any variance between the amounts due for reporting vs the amounts reported by the PR
and explain major reasons for the variances.
▪
Verify the conversion to the selected currency using the appropriate exchange rates when there is a mixture of
invoices in multiple currencies.
▪
Download and use an Excel summary of the PQR entries for aggregating the information needed to complete
the table.
39
▪
Debrief the PR on any identified issues.
Refer to A Quick Guide to the Global Fund’s Price and Quality Reporting System for further information.
Please note:
▪
The amounts in the PQR and expenditure amounts on health products can be different due to a time-lag
between payments and delivery of health products, and because the PQR includes information of only selected
product categories.
▪
Table 8G enables verification of completeness of information in the PQR system and is not for comparing PQR
amounts vis-à-vis expenditure amounts in the total PR cash outflow section.
TABLE 8.B. RISK OF STOCK-OUT & EXPIRY
This section helps measure the level of risk of program implementation delays and treatment
interruption, or risks of wastage, and highlights the need for actions to mitigate the risk.
Please note: Any scale-up or program acceleration plans need to be considered when estimating
future needs and assessing risk of stock-out.
Regarding risk of expiry and risk of stock-out, the PR is required to note the following:
▪
The risk of expiry exists if:
i. The months of stock in the country exceed the product shelf life.
39
Transaction Summary Report is available on the PQR homepage http://pqr.theglobalfund.org and
https://www.theglobalfund.org/en/sourcing-management/price-quality-reporting/
Page 47 of 81
ii. The months of stock in the country exceed the maximum levels recommended in the
country’s inventory management policy without planned scale up of consumption during
this period.
iii. There is a serious disparity in the distribution and location of stock at the different sites in
the country.
iv. There is a significant number of sites holding redundant or slow-moving stock.
v. Other reasons, as applicable.
▪
The risk of stock-out exists if:
vi. The proportion of understocked sites in the country is high regardless of the level of
aggregate national stock position.
vii. There is imminent expiry of a large proportion of stock.
viii. There are critical disparities in the distribution and location of stock at different sites in the
country.
ix. Logistics Management Information Systems (LMIS) reporting/recording compliance rates
are low and/or data quality is unreliable.
x. The central level stock position is below the minimum recommended.
xi. The national stock position is below the minimum recommended.
xii. Other reasons, as applicable.
Please note:
▪
Stock status, including pipeline monitoring, is an ongoing activity essential for proper
management of the national inventory.
▪
PRs (or SRs / procurement agents, as applicable) are required to inform the Global Fund and
in-country stakeholders at any time outside of the PU/DR process when a risk of expiry or
stock-out becomes imminent.
The PR analyzes the risk of stock-out or expiry for the key pharmaceuticals and health products
listed in the PU/DR
The category ‘Other’ includes other products that are procured under and represent a significant
expenditure for a grant and/or are critical for achieving the program goals and objectives as
determined by the Global Fund, LFA or PR, (e.g., needles and syringes, methadone in programs
for opioid substitution therapy; insecticides for indoor residual spraying (IRS), and others). The
product description is specified in the comment section.
Page 48 of 81
The PR selects ‘Yes,’ ‘No’ or ‘N/A’ next to each product category under the ‘Risk of Expiry’ and
‘Risk of Stock Out’ columns.
If ‘Yes’ is selected for either column, the PR must provide additional contextual information on
specific items at risk of stock-out or expiry and briefly outline the mitigation measures in place or
to be implemented in the ‘PR comments’ column.
PRs are expected to include in their comments:
▪
A summary analysis of important supply and demand factors to facilitate reaching a
conclusion on the optimality of the national inventory position and the likelihood of stock-
outs and/or expiry of products in the country over the period of the next six months.
▪
Key challenges and bottlenecks in health products management and the decisions made
to mitigate the reported risks.
▪
A brief update on ongoing or planned procurements from various sources of funding.
▪
Any product batches at risk of expiry over the next six months regardless of funding
source.
▪
The quantity of products expired in the last reporting period, regardless of funding source.
The PR is required to use the most up-to-date stock status data, including pipeline monitoring
data. The PR and LFA are required to use existing formats of a country’s national stock status
report, which needs to include the below listed data elements. PRs can request guidance from
the Global Fund in preparing and utilizing a suitable national report format.
The PR is accountable for the accuracy and completeness of the information in the PU/DR and is
required to collaborate with various implementing partners responsible for procurement and
national stock monitoring to obtain the data required to complete this section of the PU/DR.
The PR is required to prepare and submit the following documents for/during the PU/DR reporting period:
▪
Stock on Hand (SoH) report: This is the aggregate quantity of usable stock available at the central level
covering all sources (e.g., government, Global Fund, PEPFAR, and others).
▪
Average Monthly Consumption (AMC): This is the average quantity of a health product consumed per
month calculated based on the analysis of the reported total consumption in the past (normally calculated for a
period of six to 12 months) appropriately adjusted to reflect future demand levels.
o
The national AMC is determined based on LMIS consumption information reported to the Ministry of
Health (MOH) from the pool of all health facilities in the country, including NGO or private health
facilities contributing to the national program supported by the Global Fund.
o
Other reports such as ‘stock issue reports’ from provincial and district level warehouses can also be
used in the absence of a formal LMIS report from sites to higher levels of the health system, or in the
absence of functional LMIS, upon approval from the Global Fund. This will require manual calculations
and take into consideration quantity of stocks issued from district level warehouses to sites over the
same period (6-12 months).
▪
Quantity on Order (and expected delivery dates): This is the aggregate quantity of stock (on the different
confirmed purchase orders) that has been formally ordered from suppliers(s) by one or more funding sources,
and which is expected to arrive in the country during the next reporting period. This quantity is required to
exclude planned procurements which have not yet been contracted.
▪
Months of Stock (MoS): This is the stock on hand with useable shelf life and quantity on order expressed in
the estimated number of months of service coverage. It is determined by dividing the quantity by the average
monthly consumption.
Supporting Documents
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▪
Expiry date: Expiry date for each batch of a product in stock is shown. Stock reports are disaggregated by
expiry date and batch number. If this is not possible, the PR excludes from the MoS calculation stock that will
expire within 3 months from the start of the next reporting period.
Specific LFA Requirements
The LFA is expected to:
▪
Verify the completeness and accuracy of the PR-reported information.
▪
Comment on the reasonableness of the PR’s assessment of risks of stock-outs and expiry and of risk
mitigation measures proposed by the PR to address them.
▪
Provide additional information on the risk of expiry and stock-out based on the guidance above, based on the
most up-to-date information on stock levels at the central level, consumption data and procurement planning
or, in their absence, other best available information.
In cases where major risks exist, the LFA is required to describe the risks in the ‘Findings and Recommendations’
section, propose actionable recommendations to address identified risks.
Please note: for high-risk grants (as identified by the Global Fund), LFA reviews on specific aspects of health
product management may be requested by the Global Fund before and/or after the PUDR review (or proposed by
the LFA and agreed in writing by the Global Fund). In all other cases, the LFA’s PSM expert provides input through
a desk review of PR-reported information, without onsite verification.
Important:
Poor information systems for pharmaceuticals and other health products need to be classified as an important
management issue in the ‘Findings and Recommendations’ section of the PU/DR, for grants with a major
procurement component.
Note: in table G “Value of Pharmaceuticals and Health Products in the PQR”, the currency is linked through a
formula to the grant currency stated on the PU/DR cover page. There may be cases where the invoices recorded in
the PQR are in a different currency (e.g. in US$) from the IP/grant currency (e.g. which may be Euro). Currently, it is
not possible for LFAs to change the currency in table G (cell O38) without changing the IP/grant currency on the
Cover Page. In order to address this, the LFA is requested to continue to complete the table in the currency of the
PQR reported invoices (e.g. US$) and note in the comments section that the reporting for the health products is
done in a different currency (e.g. US$) than the IP/grant (e.g. Euro). There is no need to convert the PQR amounts
into the currency of the IP/grant.
TABLE 8.C. QUANTIFICATION & FORECASTING
(APPLICABLE FOR REPORTING ONLY FOR SELECTED PILOT GRANTS AS OF
PERIOD STARTING 1 JULY 2023)
For Focused portfolios:
This section does not apply to Focused portfolios.
For Core and High Impact Portfolios:
This table contains pre-populated ‘tracer’ product categories
and agreed quantification completion
date(s) for each category. The ‘tracer’ product categories and quantification completion dates are
determined by the Global Fund, in consultation with PRs, prior to the PU/DR reporting period.
‘Tracer’ product categories are selected for inclusion when they are procured with grant funds
and have significant budget allocation and/or importance for the achievement of grant goals and
objectives.
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The PR is required to:
• Work with in-country stakeholders to complete quantification as per the planned dates.
Additional information and documents (e.g., quantification worksheets, minutes of working
group meeting, and others) can be requested by the Global Fund from the PR as part of
PU/DR reporting.
• Provide the following information for each ‘tracer’ product category pre-populated in the
reporting form:
▪
If quantification has been completed for a ‘tracer’ product category, the PR inserts
the date of completion of quantification and forecasting under the column ‘R’40.
▪
Along with the PU/DR, the PR submits evidence of completion of quantification and
forecasting for a ‘tracer’ product on the date provided.
▪
Depending on the date filled in column ‘R’ and as compared to the target date,
Column ‘Q’ will be automatically populated with ‘Yes’ or ‘No’ value to provide
confirmation whether quantification was completed within target date.
The PR is requested to include additional information in the PR comments (column ‘V’) . If the PR
is unable to complete the quantification for a ‘tracer’ product category, or the process was
completed with significant delay (e.g., more than 60 days), the PR is requested to provide an
explanation.
The PR is required to submit the following documents for the reporting period covered by the PU/DR:
▪
Quantification reports: the PR is required to submit evidence that quantification process for product
categories selected in the PU/DR has been completed. The evidence can include:
-
a quantification report with approval of the respective authority; or
-
a quantification report approved by the Global Fund; or
-
minutes of the national quantification working group meeting endorsing the quantification outcomes.
▪
Evidence showing the date of completion of the quantifications, including second quantification cycles, if
applicable.
Specific LFA Requirements
40
In certain cases, a selected ‘tracer’ product category may have two quantification and forecasting completion dates. In such cases,
if the second quantification completion date falls within the reporting period, the PR is required to provide the date and supporting
evidence for the second quantification cycle completion (column ‘T’). If a second quantification cycle is not set or not due for reporting,
the respective cell in column 'P’ will remain blank or will show ‘not applicable for this reporting period.’
Supporting Documents
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The LFA is required to:
▪
Verify the accuracy and completeness of PR-reported information.
▪
Complete ‘LFA section’ in section C of Tab 8 (columns Y, AA, AC).
▪
Provide a brief explanation under the ‘LFA comments’ column (column ‘AC’), if, in the LFA’s opinion, the PR-
reported information is inaccurate.
TABLE 8.D. GRANT PROCUREMENT PLANNING PERFORMANCE
(APPLICABLE FOR REPORTING ONLY FOR SELECTED PILOT GRANTS AS OF
PERIOD STARTING 1 JULY 2023)
For Focused portfolios:
This section does not apply to Focused portfolios.
For Core and High Impact Portfolios:
This table contains information on ‘tracer’ products and planned order placement dates
(quarter/year) as per the Health Product Management Template (HPMT). The tracer products
and order placement quarters are determined by the Global Fund, in consultation with PRs, prior
to the PU/DR reporting period and in line with the grant approved HPMT or a procurement or
supply plan mutually agreed by the Global Fund and the PR.
The PR is expected to place orders as per the approved HPMT or annual procurement plan
(using approved quantities) considering the stock levels, programmatic requirements, and
published lead times. For the purpose of reporting, order placement date will be defined as the
date at which the price quotation, proforma invoice or cost estimate is signed by the PR. Actual
PO placement with supplier could depend on multiple steps after PR has signed that are related
to upstream sourcing (e.g., allocation of volumes to a specific supplier) which are outside PR's
scope.
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The PRs is required to:
▪
Report data only for ‘tracer’ products presented in the table.
▪
Report on the quarter of actual order placement for each ‘tracer’ product in column ‘O’.
Where a tracer product has not yet been ordered, PR is required to select ‘Not Ordered'.
▪
Column ‘P’ is automatically populated with ‘Yes’ or ‘No’ to indicate if order has been placed
according to plan.
▪
In case of delays in order placement (e.g., delays of more than 3 months or order is not
placed yet), the PR provides an explanation and background information under the ‘PR
comments’ column ‘R’.
The PR is required to submit the following documents for the PU/DR reporting period:
▪
Evidence (such as signed price quotes/cost estimates/confirmed contract(s) or purchase order(s)) showing
that the tracer health products (selected in the PU/DR) were ordered as per the annual procurement plan
and as per the quarters indicated for the respective tracer health products in the PU/DR form.
▪
An up-to-date procurement plan or Health Product Management Template (HPMT) for the grant (one at the
beginning of the grant and an updated one for each year).
Supporting Documents
Page 53 of 81
Specific LFA Requirements
The LFA is required to:
▪
Review the information and documents submitted by the PR.
▪
Complete ‘LFA section’ (columns ‘T’ and ‘W’).
▪
Provide a brief explanation under the ‘LFA comments’ in column ‘W’, if, in the LFA’s opinion, the PR-reported
information is inaccurate or requires further explanation.
TABLE 8.E. CENTRAL STOCK LEVEL - STOCKED ACCORDING TO PLAN
(APPLICABLE FOR REPORTING ONLY FOR SELECTED PILOT GRANTS AS OF
PERIOD STARTING 1 JULY 2023)
For Focused portfolios:
This section does not apply to Focused portfolios.
For Core and High Impact Portfolios:
This table contains pre-populated data on agreed minimum and maximum stock levels at the
central level for selected tracer products. Tracer products are determined by the Global Fund, in
consultation with PRs, prior to the PU/DR reporting period. This information will be useful to
assess stock levels at the central level, to identify and to address any risk of expiry or shortage
of key health products at the central level.
The values under columns ‘N’ and ‘O’ are pre-populated based on the targets set for the tracer
products.
The PR is required to use the most up-to-date stock status data to monitor central stock status on
an on-going basis, as an essential activity for proper management of the national inventory.
The PR is ultimately accountable for the accuracy and completeness of the information in the
PU/DR. The PR is required to collaborate with various implementing partners responsible for
procurement and national stock monitoring to obtain the data required to complete this section of
the PU/DR.
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The PR is required to:
Confirm whether the tracer products are stocked according to plan (SATP) and provide additional
documents as outlined below:
• Provide information regarding the source of the information under 'Data source' under the
column ‘Q’, by selecting among the options provided in the drop-down menu (e.g. average
monthly consumption (AMC) or central medical store (CMS)-issue/distribution data or
service delivery data).
• Enter quantity of products in stock (stock on hand) as of the last day of the reporting period
(in packs) in column ‘R’.
• Input the ‘Average monthly consumption (AMC) in Packs’ under the column ‘S’ as per the
methodology described above. Note that, if consumption data is unavailable, data on
distribution (quantity issued during the reporting period) is to be used.
▪
Based on the PR-reported information, the values under the column ‘P’ (‘All Stocked
According to Plan during the Reporting Period (Yes/No)’) and under column ‘T’ (‘Actual
reported stock level in Months of Stock (MOS)’) are automatically generated by the form.
Important: The PR (or SRs/procurement agents, as applicable) is required to promptly inform the
Global Fund and in-country stakeholders at any time outside of the PU/DR process when a risk of
expiry or stock-out becomes imminent.
The PR is required to prepare and submit the following documents for/during the PU/DR reporting period:
▪
Stock on Hand (SoH) report: showing the quantity of tracer products at the central level. The quantity is
required to be an aggregate quantity of usable stock available at the central level covering all sources (e.g.,
government, Global Fund, PEPFAR, and others.)
▪
Average Monthly Consumption (AMC): showing average monthly consumption for tracer products. The
AMC normally is calculated based on the reported total consumption of a product during the last 6-12 months
period. The AMC, if necessary, can appropriately be adjusted to reflect future demand levels or account for
‘no consumption’ due to stockouts.
-
The national AMC is determined based on LMIS consumption information reported to the Ministry of
Health (MOH) from the pool of all health facilities in the country, including NGO or private health facilities
contributing to the national program supported by the Global Fund.
Supporting Documents
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-
In the absence of reliable AMC, in exceptional circumstances ‘distribution data’ (e.g. quantity issued
during the reporting period, e.g. past 6 or 12 months divided by number of months) can be used in lieu
of AMC.
-
For new products, which are being introduced and no historical consumption or distribution data is
available, a projected consumption can be used. Projected consumption can be calculated based on
projected targets and anticipated consumption to reach these targets.
▪
Months of Stock: This is the stock on hand with useable shelf-life expressed in the estimated number of
months of service coverage. It is determined by dividing the stock on hand quantity by the AMC. The PR is
required to also identify and present a source of data for AMC (e.g., consumption data from LMIS or program
reports, Central Medical Store (CMS) distribution data, projected service delivery, and others).
Specific LFA Requirements
The LFA is required to:
▪
Review the information and documents submitted by the PR.
▪
Verify the accuracy and completeness of the information and PR-reported information and provide alternative
information if in LFA’s opinion the PR-reported information requires correction.
▪
Complete ‘LFA section’ (column ‘Y’ and ‘AA’).
▪
Provide a brief explanation under the ‘LFA comments’ column ‘AA’, if in LFA’s opinion the PR-reported
information is inaccurate or requires further explanation.
TABLE 8.F. ADDITIONAL INFORMATION
The PR is required to comment on any additional issue(s) or information related to the
procurement and supply management of health products that can impact program implementation
and highlight any mitigation measure already in place or to be implemented.
Based on contextual information and in-depth discussion and verification of data with
implementers, PR to provide information to aid in the interpretation of the results in Sections C, D,
and E, including context on factors within and beyond the PR’s control.
Below are some examples of factors to consider when making recommendations:
Section C. Quantification and Forecasting:
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• Quantification was delayed since PR was anticipating a change in treatment guidelines or
quantification was completed on time, but the quality of produced quantification was poor.
Section D. Grant Procurement Planning Performance:
• Delay in ordering due to reasons outside PR’s control such as unexpected change in
procurement policies/ treatment guidelines/ diagnostic algorithms affecting product stock
levels and / or order placement dates.
Section E. Central Stock Level (Stocked According to Plan):
• Stock levels are outside defined min/max levels due to i) need to operate with large buffer
stock with a justified reason or ii) orders were placed on time but stock levels are lower
due to international supply constraints.
• Consider other changes in international/ national treatment guidelines/ diagnostic
algorithms affecting product stock levels and / or order placement dates.
Specific LFA Requirements
The LFA is required to comment on issues reported by the PR and any additional issues related to the procurement
and supply management of health products and the mitigation actions already in place or to be implemented by the
PR and that have come to the LFA ’s knowledge.
TABLE 8.G. VALUE OF PHARMACEUTICALS AND HEALTH PRODUCTS IN
THE PQR - LFA USE ONLY
Please refer to the Specific LFA Requirements in Section 8: Health Products and
Procurement and Supply Chain Management, Table 8A, for further details.
Page 57 of 81
7 GRANT MANAGEMENT
TAB 9.A. GRANT REQUIREMENTS
Grant requirements are pre-populated in Tab 9.A., based on the Grant Confirmation or any
subsequent Implementation Letters, and including all outstanding requirements from previous
periods.
For the relevant reporting period, the PR provides a status update on progress on all grant
requirements that were due to be fulfilled (including those whose fulfilment was outstanding from
previous periods). While grant requirements can vary in importance, they are all required to be
met within the specified timelines before any further disbursements are authorized by the Global
Fund.
The PR chooses from the available fulfilment status options:
Requirement
fulfilment status
PRs are required to provide the following information
Met
▪
Details on progress necessary for understanding the fulfilment of the
requirement.
Unmet – in
progress
▪
Comments on progress towards achievement, including clear reasons and
explanations for any delays, indicating timelines for expected completion.
Unmet – not
started
▪
Clear reasons and explanations for non-fulfilment and indicate timelines for
expected completion, unless previously waived by the Global Fund.
Please note: A response provided by the PR on the fulfilment of grant requirements is only the
PR’s self-assessment of its own accomplishments. It is still subject to LFA verification and Global
Fund review. A requirement remains effective until formally cleared by the Global Fund in writing.
The PR is required to make available all documentation evidencing fulfilment of grant
requirements.
Some requirements can apply to more than one period of grant implementation (e.g., counterpart
financing). Their fulfilment during one period does not automatically imply fulfilment in subsequent
Page 58 of 81
periods. The LFA verifies that the status of such requirements is reported by the PR during each
period concerned.
Assessments of overall grant performance will consider adequate and timely fulfilment of grant
requirements.
Specific LFA Requirements
The LFA is required to:
▪
Review grant requirements for each functional area.
▪
Examine the reported financial, procurement and supply chain management (PSCM) and programmatic results
as applicable to support review of the PR reported fulfilment status.
▪
Comment on the PR’s progress in fulfilling grant requirements, as well as on the PR’s compliance with the
standard terms and conditions of the grant confirmation, as applicable.
▪
Verify that all grant requirements applicable to the period covered by the PU/DR are accurately listed by the PR,
including all outstanding requirements from previous periods, and all requirements due for reporting during the
period covered by the PU/DR (whether they are met or not).
▪
Inform the PR if any applicable requirement was omitted or unreported and report the findings in the comments
section and LFA Findings and Recommendations tab. LFA will consider missing information when evaluating
completeness and accuracy of the PR submission.
▪
Indicate the fulfilment status of all applicable requirements and provide comments on progress towards the
achievement of yet unfulfilled requirements. Comments are to reflect the LFAs’ own analysis based on the
review of the available information.
Please note: The involvement of other technical and functional experts (such as LFA PSM, Programmatic/M&E
experts) in the review will depend on the nature of the grant requirements. If a previously fulfilled requirement,
classified as critical, is reopened due to new circumstances, it is to be disclosed in the Findings and Recommendation
section. At the discretion of the Global Fund, said issue can be followed up through the management actions
assigned to the PR by the Global Fund.
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TAB 9.B. MITIGATING ACTIONS & MANAGEMENT ISSUES
Information on sub-risks , completion due dates, and KMA/MA details is pre-populated, based on
the identified risks and mitigating actions as communicated by the Global Fund in the previous
reporting period.
Please note: The Global Fund can choose to provide a separate Annex to the PU/DR capturing
mitigating actions, in which case, the PR in discussion with the Global Fund, can decide which
format is the most appropriate for reporting.
The PR:
▪ Comments on progress toward fulfilment for each action;
▪ Provides clear explanations for any delays, indicating timelines for expected completion;
and
▪ In case a separate Annex is used to report mitigating actions: lists all outstanding
mitigating actions already assigned to the PR by the Global Fund, including a reference to
the date of the respective Performance Letter and action number.
Specific Requirements for LFA only
The LFA:
▪
Reviews actions in all risk settings (low, medium, high and very high) and for each functional area;
▪
Ensures all actions assigned by the Global Fund to the PR and applicable to the reporting period, or outstanding
from previous periods, have been accurately listed by the PR;
▪
Comments on progress toward the fulfilment of each action based on the LFA’s own analysis and review of the
available information; and
▪
In case a separate Annex is used to report on Mitigating Actions: lists any actions omitted or unlisted by the PR and
follows up with a request with the PR for clarification on their status in LFA Findings and Recommendations tab.
Page 60 of 81
8 ASSESSMENT & SIGN-OFF
TAB 10.A. PRINCIPAL RECIPIENT (PR) SELF-ASSESSMENT
10.A.1. PR Performance – Self-Assessment during the reporting period covered by the
PU/DR
The PR provides a high-level self-assessment of performance in the reporting period covered by
the PU/DR, integrating programmatic, financial, procurement and supply chain management
components of the program delivery.
This includes, but is not limited to:
▪ A summary of grant performance, combining a quantitative and qualitative overview of key
accomplishments in programmatic, HP-PSCM and financial areas, as well as linkages
between them.
▪ Key challenges in any of the functional areas (monitoring and evaluation, finance, HP-
PSCM and program management) which put successful program implementation under
risk and/or that negatively impacted quality and timely delivery during the reporting period.
▪ Possible risks that compromise future implementation.
10.A.2 External factors beyond the control of the PR that have negatively impacted quality
and timely program delivery during the reporting period covered by the PU/DR
The PR:
▪ Explains any external factors beyond the control of the PR that have negatively impacted
program delivery during the reporting period covered by the PU/DR; and
▪ Describes any issues or risks, including external factors (e.g., force majeure, political and
civil issues at the country level, etc.) that have posed or can pose challenges to the
successful delivery of the program.
10.A.3 PR forward-looking assessment on implementation delivery by module for the
coming reporting period
Please note: This section is not required for the Final PU.
The PR provides a qualitative self-assessment of anticipated implementation progress by module
for the next reporting period (immediately following the reporting period covered by the PU/DR).
The PR’s prospective self-assessment captures whether the program is on track, and how key
risks and bottlenecks are to be addressed in the coming reporting period and remainder of the
grant.
Relevant modules for reporting are prepopulated based on the signed PF and Budget.
Cumulative absorption rate through the end of the reporting period is provided for reference only
and is calculated as a ratio of cumulative PR cash outflow to cumulative budget amounts to date.
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The PR is required to select one applicable answer from the drop down-menu for each of the
modules to reflect the status of the implementation, referring to the scale below, and to provide
further for any other challenges not stated below.
In the coming reporting
period, programmatic
indicators expected to
achieve an average of:
Service delivery, financial
absorption and health product
procurement and supply chain
management; and mitigation of key
implementation risks
On track
above 90% of targets
AND
No major challenges
Off-track with
minor issues
between 60% and 90% of
targets
AND
No major challenges
Off-track with
major issues
between 60% and 90% of
targets
AND
Major challenges
Module at risk
below 60% of targets
AND
Major challenges
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10.A.4 – Planned changes to the program (if any)
The PR provides a detailed description of the planned / required changes to the program vis-à-vis
the grant agreement (including the PF) based on the results demonstrated and gaps identified
during the period covered by the PU/DR.
The required changes are to clearly articulate the scope of change, timelines, and impact on the
programmatic, financial, and HP-PSCM components of the program delivery, taking into
consideration agreed workplan and planned activities in the next reporting period(s).
Proposed changes to the program can trigger a revision and subsequent amendment to the
signed grant documents. If a revision process is required, the PR is required to discuss with the
Global Fund the most appropriate timeline for initiating and completing the revision process.
41
41
For further details on the Revisions process and requirements, refer to the Operational Policy Manual.
Page 63 of 81
TAB 10.B. PRINCIPAL RECIPIENT SIGN-OFF
The PR’s sign-off section is pre-populated with summary information.
By providing a sign-off on the PU/DR, the PR acknowledges that:
▪ All the information provided in the PU/DR form is complete and accurate.
▪ The funds disbursed in accordance with the request made through the PU/DR can be
deposited in the bank account specified in the Core Data Forms.
▪ The funds disbursed shall be used in accordance with the Grant Agreement.
▪ The details for the Authorized Signatory for Disbursement Request provided in the form
match the validated information in the Partner Portal Grant Entity Data Module.
42.
After completing the PU/DR, the Authorized Signatory for Disbursement Requests signs a printed
version or electronically signs the PU/DR form, and an authorized PR Submitter submits it to the
Global Fund in the Global Fund Partner Portal.
43
42
For further details on the creation and update of the organization and/or contact details in the Partner Portal Grant Entity Data Module,
follow this link to the Grant Entity Data Module.
43
For further details on the steps to be completed in the Partner Portal, refer to the following link:
https://www.theglobalfund.org/media/11753/fundingmodel_pudr-interactive_guide_en.pdf
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TAB 10.C. LFA PERFORMANCE ASSESSMENT (LFA ONLY)
Specific Requirements for LFA only
All LFA technical experts contribute to the completion of this section in the relevant functional areas. The
LFA Team Leader is responsible for drawing linkages between various areas, providing quality assurance
and ensuring that LFA comments/analysis provide a comprehensive and cohesive picture.
10.C.1 LFA overall evaluation and performance assessment for the current reporting period
The LFA:
▪
Provides an overall assessment of the grant performance.
▪
Comments on the evidence of impact, success stories and/or lessons learned from program implementation, if
this information is included in the column completed by the PR. In case this information was not provided by the
PR, the LFA provides a summary of performance assessment taking into consideration LFA verified results,
contextual knowledge of the portfolio and professional judgement. Any missed information by the PR will be
taken into consideration when evaluating completeness and accuracy of the PR submission.
▪
Reviews the quantitative indicator rating and assesses whether a technical adjustment is required.
▪
Suggests technical adjustment to the Global Fund by providing a rationale when the quantitative indicator rating
does not adequately reflect the performance results.
Important: In assessing overall performance, the LFA is required to provide an analysis of how programmatic,
financial, HP-PSCM and grant management performance to-date are linked, as well as an assessment of any major
implications of historical performance on future performance.
This tab contains a pre-calculated quantitative indicator rating based on the LFA verified results for coverage
indicators.
44
The LFA is required to review the quantitative indicator rating and assess whether a technical adjustment
is required by selecting ‘Yes’ or ‘No’ in the appropriate box.
In some specific scenarios, the Quantitative Indicator Rating may not reflect the actual grant or program performance.
Specific scenarios, where a technical adjustment is relevant to consider, include:
▪
Achievement or overachievement of one indicator when correlated with another indicator indicates a gap in
reaching people in need of services i.e., below 60%.
▪
In case of multiple PRs, underperformance of one indicator for one PR results in over-performance of another
related indicator for another PR, when the actual performance of the latter is below 60% of the expected target.
▪
In case of disease grants with substantial investments in RSSH and/or CRG related modules, which include
both coverage indicators and Work Plan Tracking Measures (WPTMs), if the overall WPTM rating is below 60%,
44
Or Work Plan Tracking Measures if there are no coverage Indicators signed with the Performance Framework.
Page 65 of 81
the Quantitative Indicator Rating can be downgraded by one rating point.
▪
Other, to be selected in exceptional circumstances and well elaborated.
If a technical adjustment is required, the LFA selects the appropriate technical adjustment rationale. The LFA is
required to include any relevant comments that will help to better understand the rationale for a given rating, including
a summary of any major issues in functional areas that can put successful program implementation at risk.
10.C.2. LFA assessment of performance, including key risks, challenges, or capacity gaps that can
negatively impact quality grant implementation and achievement of targets during the remainder of the
implementation period.
The LFA provides an overall summary of the grant performance, taking into consideration PR self-evaluation,
verified results and findings emerging from the PU/DR verification and other work done by LFA.
The assessment integrates qualitative and quantitative aspects, clearly articulating performance issues identified,
including linkages between programmatic, financial, HP-PSCM and grant management areas. The LFA is required
to specify emerging risks that can compromise implementation delivery in the remainder of the implementation
period, linking to the identified risks and issues flagged in the LFA Findings and Recommendations (Tab 11) or
other sections.
As part of this review, the LFA is expected to highlight any issues identified during the verification of the PU/DR
which relate to the utilization or possible misappropriation of funds at the PR and SR levels.
Page 66 of 81
10.C.3. LFA review of PR forward-looking assessment on implementation delivery by module.
Similar to the PR section (10.A.3), the LFA is required to provide a qualitative assessment for each module for the
coming reporting period, taking into consideration PR self-evaluation, contextual knowledge of the operating
environment and any other relevant information available based on the PU/DR verification completed.
Relevant modules for reporting are prepopulated in the form based on the signed PF and Budget, alongside the
answers provided by the PR for reference.
Cumulative absorption rate through the end of the reporting period is provided for reference only and is calculated
as a ratio of cumulative cash outflow to cumulative budget amounts to date, based on the PR expenditures reported.
The LFA selects the most appropriate answer from the drop-down menu using the scale provided (refer to 10.A.3
above), comments on the grant trajectory and any identified or foreseen potential bottlenecks and captures
recommended actions to address them.
10.C.4. LFA assessment of effectiveness of implementation arrangements
The LFA elaborates on whether the current implementation arrangements continue to provide a fit-for-purpose
operational setup.
Please note: Unlike the implementation arrangements assessment conducted following a specific request of the
Global Fund (e.g. during grant-making), the LFA is not expected to perform a detailed review of the implementation
arrangements at this stage.
The LFA is required to comment on whether the existing implementation arrangements continue to support quality
delivery of the program, based on the results and the PR-reported information, their subsequent review, and site
visits conducted outside of the PU/DR verification process. The LFA is required to take into consideration, as
applicable, any recent changes to the program (e.g. rolled out through a revision process) that have positively or
negatively affected implementation.
The outcomes of such analysis can inform a need to conduct a subsequent, more profound assessment focusing on
the specific areas of concern as identified by the LFA during the PU/DR verification.
Any recommendations to perform an immediate modification to the implementation arrangements, without
conducting a detailed assessment, are to be justified and well supported, capturing clear evidence-based
Page 67 of 81
explanation for the change rationale, including programmatic, procurement and financial implications on
implementation delivery, as well as on operational considerations, such as timelines and funding.
The LFA is required to review the PR’s comments on contextual factors (e.g. force majeure, political and civil issues
at the country level) which are beyond control of the program, and which have or can have an impact on the
program, and provide their own comments based on their analysis/review and understanding.
If the PR has indicated any planned changes in the program, the LFA is required to comment on these planned
changes, specifically their rationale and expected benefits and the PR’s capacity to implement these changes.
If the LFA is aware of planned changes that have not been mentioned by the PR, the LFA is required to mention
these changes and also seek clarification from the PR as applicable.
10.C. 5. LFA recommendations for Global Fund attention in the coming reporting period
The LFA provides the top five key recommendations and appropriate actions for Global Fund attention, which will
drive the implementation of the program forward while addressing critical bottlenecks in implementation delivery.
The recommendations captured in this section can differ from the recommendations captured in the LFA Findings
and Recommendations section in their nature and focus on the strategic and cross-cutting issues the program is
facing.
Recommended actions can vary depending on the unique portfolio / grant context. The LFA is required to apply
professional judgment and profound understanding of the operating environment when preparing such
recommendations.
The underlying issues and/or root causes can be pertinent to specific thematic area(s): programmatic, financial, HP-
PSCM and/or governance. The LFA is required to select the appropriate area in the drop-down menu as shown in
the screenshot below.
The LFA:
▪
Ensures that each recommendation is specific, measurable, time-bound, actionable and reflects how the
proposed action will benefit the program in the short-, mid-, or long-term, including impact on the quality of
implementation delivery for the selected functional area.
▪
Captures the resulting implications in case of no action taken, clearly articulating negative effects on the
program, implementation of the core activities, timelines, and funding.
▪
Provides specific recommendations to the Global Fund for the purpose of supporting prioritized decision
making and Global Fund action.
Page 68 of 81
Assessing quality of the PU/DR PR submission
The LFA assesses the completeness and accuracy of the information submitted by the PR for the reporting period,
including in the PU/DR and in supporting documentation.
The reference scale is provided below:
Dimension
No Issues
Minor Issues
Major Issues
Completeness of
information and
comment
All information as required
by the Global Fund and as
captured in the form /
instructions is provided by
PR.
Core information provided
however relevant contextual
details are missing. LFA can
proceed with verification.
Core information is missing
and/or required sections
were left blank by the PR.
LFA is not able to proceed
with verification based on the
information provided. A
partial / full resubmission of
the PU/DR is required.
Accuracy of
information
Financial and programmatic
information and results
correctly calculated as per
the Global Fund Modular
Framework guidelines
45
and
grant Performance
Framework.
Calculations provided by the
PR are largely correct. There
are minor inaccuracies in the
information provided which
do not affect overall
calculation of performance
metrics.
Calculations provided by the
PR are largely incorrect, do
not follow provided
methodology / instructions or
significantly deviate from the
LFA-verified information.
Additionally, the LFA is required to capture the date the first version of the PU/DR form was submitted to the Global
Fund as well as the final date of PR submission, in case of resubmission(s).
TAB 10.D. LFA SIGN OFF
By signing the verified version of the PU/DR, the LFA Signatory for Disbursement Requests acknowledges that the
information captured in the LFA – verified sections is complete and accurate.
At sign-off, the LFA is required to provide a summary of verification approaches and methods used for the verification
of financial, programmatic, procurement and supply chain management, as well as data and quality assurance
undertaken by the LFA, including specifically:
▪
Indication of percentage of expenditure verified at PR or SR level.
▪
Any other important parts of the verification approach LFA agreed upfront with Global Fund, based on
country/grant risks.
Please note: The approach to verification can be reviewed jointly between the LFA and Global Fund on an annual
basis. After completing the verification of the PU/DR, the LFA Signatory for Disbursement Requests is required to sign
a printed or electronic version of the PU/DR form, and the LFA Submitter submits this attachment to the Global Fund
via the Global Fund Partner Portal,
46
in addition to the full PU/DR form.
45
Further information available in the Modular Framework Handbook.
46
For further details on the steps to be completed in the Partner Portal, refer to the following link:
https://www.theglobalfund.org/media/11753/fundingmodel_pudr-interactive_guide_en.pdf
Page 69 of 81
9 LFA FINDINGS & RECOMMENDATIONS (LFA ONLY)
In this section, LFAs are required to document the issues identified that impact grant implementation or achievement
of results, and recommendations to address them. Attention to be paid to thematic areas (programmatic, financial and
health products procurement and supply chain management) and issues such as programmatic governance, including
PR management of SRs, and critical management issues (poor data quality, procurement delays, ineligible
expenditures, and others).
The LFA is required to ensure grants comply with the Global Fund requirements as stipulated in the Grant Agreement
documents.
The LFA completes the LFA Findings and Recommendations tab and:
▪
Lists all/any major issues/risks which impact grant implementation/achievement of results, proposing a
mitigating measure for each. Examples include key issues identified through LFA assurance services provided
during the reporting period, as relevant, and/or findings reported in the previous sections of the PU/DR.
▪
Comments on immediate or anticipated adverse impact of such major issues on program implementation and
▪
Identifies persistent or recurring issues as unresolved management actions by the PR.
47
▪
Draws linkages between findings and issues identified.
▪
Classifies identified issues into one of the thematic categories listed in the drop-down menu.
▪
Recommends for each of the identified issues, mitigating actions and/or capacity-building/strengthening
measures to be implemented by the PR. These are to be relevant, specific, measurable and actionable by the
PR within a reasonable time frame.
▪
Provides relevant, specific, time bound, prioritized and actionable recommendations aimed at improving program
implementation.
Please note:
▪
An issue is classified as ‘major’ if it impacts on or is likely to impact on program implementation and results.
▪
The severity classification of issues is based on the LFA’s professional judgment.
▪
The Global Fund uses the recommended remedial measures to define assurance activities for the mitigating
actions to be communicated to the PR.
▪
Recommended remedial actions are to be prioritized to the most relevant, critical, and impactful.
47
See 7.Grant Management of this guidance document for further details.
Page 70 of 81
10 PU/DR ANNEXES
SECTION 1 ANNEX ON PR FINANCIAL COMMITMENT, OBLIGATIONS &
ACCRUED SEVERANCES
This annex illustrates how the PR can report financial commitments, obligations, and accrued
severances. The PR is required to provide financial commitments and financial obligations
analyzed between those at their level and those at the level of their SRs, and accrued severance
entitlements.
48
The PR is required to use the provided form only when submitting the final PU. In
other instances, PR may opt to submit extracts from the PR financial systems as supporting
evidence.
Specific LFA Requirements
The review of the PR Financial Commitments, Obligations and Accrued Severance (or PR Cash Information Form if
chosen to be reported by the PR) is not part of the scope of work of the LFA unless otherwise agreed with the Global
Fund.
48
Refer to the section 1.1. of the Operational Guidance for Grant Budgeting.
Page 71 of 81
SECTION 2 ANNEX ON FINANCIAL TRIGGERS (FOCUSED PORTFOLIOS
ONLY)
PRs of Focused portfolios:
▪
Assess whether any of the circumstances (i.e., triggers) listed in the table apply and
respond with a ‘Yes’ or ‘No’, depending on the existence of the trigger.
▪
For any ‘Yes’ answer, provide comments detailing rationale behind the trigger and how
compliance with the Global Fund policies will be achieved.
▪
Provide additional comments, for any ‘No’ answer.
Specific LFA Requirements
The LFA is required to verify the responses provided by the PR and include additional comments where needed.
Page 72 of 81
11. LOCAL FUND AGENT SCOPE OF WORK
11.1 SCOPE OF WORK
Before starting the PU/DR review, the LFA confirms the scope of work, the verification approach,
and the estimated Level of Effort with the Global Fund. If changes occur during review that impact
the Level of Effort agreed with the Global Fund, the LFA immediately notifies the Global Fund and
re-negotiates the scope and Level of Effort. In their review, the LFA exercises professional judgment
and seeks further clarifications from the Global Fund, as needed.
The scope of the LFA’s verification varies depending on various factors including the portfolio
categorization, assessed level of grant risks,
49
disease burden, materiality, country/grant context,
and available Global Fund resources.
The LFA:
▪ Verifies the validity, accuracy, quality, and completeness of the PR-reported information,
including availability of supporting documentation, as per the agreed scope of work and
requirements stated in this document.
▪ Drawing on historical and contextual knowledge of the grant/country, including from previous
reviews or routine monitoring of risks, uses a risk-based approach to define a verification
methodology (including data sampling criteria or sampling size, where relevant) consistent
with the risk level in each of the functional areas (programmatic/monitoring and evaluation,
finance, health product procurement and supply chain management, and governance), and
discloses this methodology to the Global Fund in their report.
▪ Identifies and assesses risks of material misstatements or omissions in reported information
and, as relevant, reviews the effectiveness of internal control procedures put in place by the
PR to mitigate risks.
The LFA’s report to the Global Fund must be timely and accurate, based on sound analysis, review
of supporting documentation and must include relevant recommendations.
The following tabs require LFA review in Focused portfolios only if requested by the Global Fund.
The LFA is expected to engage with the Global Fund to determine whether such review is required.
LFA review in Focused portfolios
Unless otherwise agreed between the Global Fund and the LFA, the scope of LFA review in focused
countries differs from that of High Impact and Core portfolios (and the guidance included in this
document for each respective sections) as follows:
Programmatic Reporting:
▪ Data verification is not required except in exceptional circumstances when data consistency
checks and Spot Checks/Data Quality Reviews are not sufficient to address serious data quality
issues.
49
LFA will contact the Global Fund for more information.
Page 73 of 81
▪ The LFA only undertakes data consistency checks (desk reviews), spotting basic mistakes in
the data sent by the PR to the Global Fund, including:
o The use of % instead of absolute value; no denominator, empty cells, etc.
o The impact and outcome indicators that are due for reporting as per the Performance
Framework are reported upon.
o All modules and programmatic indicators due for reporting in the current reporting period
are reported upon.
o The results are reported consistently with targets in the Performance Framework.
▪ Such consistency checks are not data verifications against source documents. The results of
this check are entered in the column “Verified Results”. If the result is different from the result
reported by the PR, the nature of the adjustment is explained.
▪ The Level of Effort is estimated at maximum two days.
Financial Reporting:
▪ Financial commitments and financial obligations are reviewed only if requested by the Global
Fund.
Health Product Procurement and Supply Chain Management Reporting:
▪ Risk of stock-out and expiry – review not required. In exceptional circumstances, based on
considerations of risk, materiality and type of health products procured, the Global Fund can
request the LFA to provide an analytical review of the stock status report.
In other areas, the LFA in Focused portfolio follows the guidance provided in the respective sections
in this document.
The LFA scope for all types of portfolios is summarized in the following table:
Page 74 of 81
Report Type
PU/DR
PU*
Final PU
Tab
No
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
'THEMATIC REPORTING REQUIREMENTS
Programmatic Reporting
1A
Impact/Outcome
Indicators
Focused portfolios – Data
verification is not required.
LFA performs consistency
checks only in exceptional
circumstances
Required
NA
Required
NA
1B
Impact/Outcome
Indicator
Disaggregation
Required
NA
1C
Coverage Indicators
1D
Coverage Indicator
Disaggregation
1E
Workplan Tracking
Measures (WPTMs).
Financial Reporting
2
PR Cash
Reconciliation
Items 6.1-6.8 – LFA
completes the respective
fields based on the
information reviewed at the
PR level. A detailed review
of each SR’s underlying
records is not required,
unless specifically asked by
the Global Fund
Required
Not applicable
Required
3
SR Cash
Reconciliation
-
Global Fund request
Not applicable
Global Fund request
4
Recipient
Expenditures Report
-
Required
50
Not applicable
Required
5
Recipient
Expenditure Report
for C19RM Activities
-
Required
51
Not applicable
Required
6
Forecast &
Disbursement
For PU/DR reporting, the
LFA review of the Forecast
and Disbursement tab does
not need to be completed
unless otherwise agreed
with the Global Fund. The
Global Fund and the LFA
agree on any information to
be provided and its format,
to allow for flexibility
considering reviews done as
part of reprogramming and
cash releases and to avoid
duplication of LFA efforts.
Not applicable
7
Tax reporting
Required
Not applicable
Required
Health Products and Procurement and Supply Chain Management
8
A. Price Quality
Reporting
B. Risk of Stock out
and Expiry
C. Quantification and
Forecast
D. Grant
Procurement
Planning
Performance
E. Central Stock
Level (Stocked
According to Plan)
F. Additional
Information
Table B is not required for
Focused portfolios, unless in
exceptional circumstances
based on considerations of
risk, materiality and type of
health products procured,
the Global Fund may
request the PR to submit a
stock status report and the
LFA to provide an analytical
review of the latter.
Sections C. D. E. are
applicable for reporting only
for selected pilot High-
Impact and Core grants as
of period starting 1 July
2023.
Table A: Required
Required for Table
‘A. Risk of Stock
out and Expiry’
only.
Table A: Required
Required
Table B:
Only if
requested
by GF
Required
Table B:
Only if
requested
by GF
Tables
C,D,E,F:
N/A
Tables
C,D,E,F:
N/A
Table G: Required
Table G: Required
50
The LFA verification scope and expenditure sample review are not expected to increase due to removal of the mid-year expenditure
verification.
51
Ibid.
Page 75 of 81
G. Value of
Pharmaceuticals and
Health Products in
the PQR (For LFA
use only)
*: Does not apply to Focused portfolio R: Required NA: Not applicable
Report Type
PU/DR
PU*
Final PU
Tab
No
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
CROSS-CUTTING REPORTING REQUIREMENTS
9
Grant
Management
Whether or not a desk
review or onsite input of the
PSM or M&E/Public Health
expert is required will be
dependent on and
determined by:
▪
The nature of the grant
requirements and/or
management actions.
▪
The Global Fund’s
request for review.
Required
NA
Required
10
Assessment
and Sign-off
LFA review of PR forward-
looking assessment on
implementation delivery by
module is not required for
the Final PU
Required
Required for the
following sections
for programmatic
verification only:
C.1, C.2 & C.5
Assessment of
quality &
completeness and
D. Sign-off
Required
11
LFA Findings
and
Recommendat
ions
Focused portfolios:
Required If LFA has
relevant information e.g.,
from assessments /Spot
Checks performed in the 12
months preceding the
PUDR
Required
Required for
recommendations
in light of
programmatic
verification only
Required
ANNEXES
Annexes
I
Financial
Commitments,
Financial
Obligations
and Accrued
Severance
The review of the PR Cash
Information Form is not part
of the scope of work of the
LFA unless otherwise
agreed with the Global
Fund.
GF request
NA
GF request
II
Financial
Triggers:
Required for
Focused
portfolios only
The LFA is required to
verify the responses
provided by the PR and
include additional
comments where needed
NA
R
NA
NA
R
Page 76 of 81
11.2 RECOMMENDED APPROACH FOR THE REVIEW AND VERIFICATION OF
INFORMATION
In discussion with the Global Fund, the LFA ensures that a clear link exists between the risks
identified and the verification methodology adopted.
LFA verification is undertaken in the following ways:
▪
The LFA reviews data at the PR level. This includes databases of information, reports from
the lower levels or any data system that aggregates the data e.g., DHIS-2.
▪
In addition to email and telephone communication, the LFA meets with the PR’s program
managers, monitoring and evaluation, procurement, finance, and accounting staff. The LFA
can also engage with key SR staff as needed.
▪
In exceptional circumstances, the Global Fund can request an extended scope of work from
the LFA, which can involve detailed reviews of SR reporting. Such additional work can be
requested where critical issues/risks are identified outside the realm of the PU/DR scope of
work and verifications (e.g., requiring verification at the level of SRs, Sub-SRs, suppliers,
and other stakeholders). As a rule, Spot Checks beyond the PR level are be conducted
outside of the PU/DR review.
11.3 SOURCES OF INFORMATION
Accounting and programmatic records remain the primary source of information used in the LFA’s
review and analysis. Other sources of information can include:
▪
Published reports on funding for the relevant disease component in each country or country
cluster from other donors, the government or civil society organizations.
▪
Surveys/study reports.
▪
Information published by the Global Fund on its website (www.theglobalfund.org), e.g.,
disbursements report by grant.
▪
Tender announcements for procurement of products and services.
▪
Mainstream media.
▪
Other sources (e.g., audit reports, data quality audit reports, Office of the Inspector General
reports).
Page 77 of 81
12. OVERVIEW OF REPORTING REQUIREMENTS
Report Type
PU/DR
PU
*
Final PU
Frequency of Reporting
Once per year
Once per year
Once per Implementation
Period
Period Covered by the Report
As defined in the PF
6 months
As defined in the PF
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
Tab
No
Reporting Requirement
Programmatic Information
Content Summary
THEMATIC REPORTING REQUIREMENTS
1A
Impact/Outcome Indicators
Progress against impact/outcome
indicators
Required
Required
R
1B
Impact/Outcome Indicator Disaggregation
Disaggregated results for relevant
impact/outcome indicators
**
Required
NA
NA
1C
Coverage Indicators
Progress against coverage
indicators
R
R
1D
Coverage Indicator Disaggregation
Disaggregated results for relevant
coverage indicators
**
NA
NA
1E
Workplan Tracking Measures (WPTMs)
Reporting to cover assessment of
modules that do not have any
coverage/outcome indicators
R
R
Financial Information
2
PR Cash Reconciliation:
A. PR cash reconciliation statement in
Implementation Period (IP) currency
B. Schedule of open advances in IP
currency
C. PR financial commitments and
obligations
D. Triangulation of financial figures
E. PR bank statement balance & cash in
transit in IP currency
F. PR ineligible transactions in IP currency
Reporting on opening and closing
cash positions at the PU period end,
showing the movements in cash
(cash inflows and outflows), during
the period covered by the PU
The cash reconciliation report
covers cash balance of the PR in
support of Global Fund
disbursement decisions
Required
Not applicable
Required
R = Required.
NA = Not Applicable.
* Not Applicable for Focused portfolios.
** Applicable for Focused portfolio, only if requested by CT and in exceptional cases.
Page 78 of 81
ANNEX
I
Financial Commitments, Financial
Obligations and Accrued Severance
Reporting on current accounts payable
and creditors
Flexible Format
52
Not applicable
Required
II
Financial Triggers:
Required for Focused portfolios only
The PR’s evaluation on whether
specific contextual circumstances are
applicable in the reporting period
Not applicable
R
Not applicable
R
52
Flexible Format – The PR is required to report on the detailed breakdown for the Financial Commitments, Financial Obligations and Accrued Severance. The PR may choose to submit the direct output from the
PR’s financial system as supporting evidence or, at the discretion of the Global Fund, complete the annex in the format provided in the PU/DR for Y1, Y2 and Y3.
Please note: The PR is required to complete the detailed breakdown for the Financial Commitments, Financial Obligations and Accrued Severance using the format provided in the PUDR for the Final PU only.
Report Type
PU/DR
PU*
Final PU
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
Financial Information (Continued)
THEMATIC REPORTING REQUIREMENTS
3
SR Cash Reconciliation:
A. PR reconciliation of funds provided
to SRs for the current IP
Financial data on the management of
SR advances and reconciliation of
funds provided to SRs at a given PU
period end date
Required
Not applicable
Required
4
Recipient Expenditures Report:
A. Breakdown by Costing Dimension
B. Breakdown by Module / Intervention
C. Breakdown by Implementing Entity
Reporting on the total in-country
expenditures (incl. C19RM funding) for
the current and cumulative financial
reporting periods, incl. variance
analysis against the approved activity
plan and approved budget
Required
Not applicable
Required
5
Recipient Expenditure Report for
C19RM Activities:
A. Breakdown by Costing Dimension
B. Breakdown by Module / Intervention
C. Breakdown by Implementing Entity
D. Indicative Cash Balance for C19RM
Allocation
Reporting for in-country C19RM
expenditures only for the current and
cumulative financial reporting periods,
including variance analysis against the
approved activity plan for C19RM
activities and approved funding for PRs
and SRs
6
Forecast & Disbursement
The PR’s forecast and disbursement
request for the execution and buffer
periods, including breakdown by
implementing entity and type of funding
(regular/ C19RM) as applicable
Required
Not applicable
7
Tax reporting
Tax reporting for applicable import
duties and VAT on goods and services
paid from disbursed grants
Required
Not applicable
Required
*
Not Applicable for Focused portfolios.
Page 79 of 81
Report Type
PU/DR
PU
*
Final PU
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
Health Products and Procurement and Supply Chain Management
53
THEMATIC REPORTING REQUIREMENTS
8
A. Price and Quality Reporting
Price and Quality Reporting (PQR) status
54
for
procurement of key pharmaceuticals and
health products
Required
B. Risk of Stock out and
Expiry
Analysis of risk of stock-out and expiry of key
pharmaceuticals and other health products
critical to the delivery of major health
interventions
Required
55
Only if
requested
by the
Global
Fund
Required
56
Only if
requested
by the
Global
Fund
C. Quantification and Forecast
Analysis on timely quantification and
preparation of a comprehensive forecast
NA
NA
D. Grant Procurement
Planning Performance
Analysis on PR effectiveness in procurement
planning and execution
E. Central Stock Level
(Stocked According to Plan)
Analysis of effectiveness of PR inventory
management at central level
F. Additional Information.
Additional information/ any issues related to
procurement and supply management of
pharmaceuticals and other health products.
G. Value of Pharmaceuticals
and Health Products in the
PQR (For LFA use only)
Value of health products reported in the PQR
vs. value of health products subject to PQR
reporting received during the reporting period.
This section is for LFA use only and requires
no input from grant PRs.
Required
*
Not Applicable for Focused portfolios.
53
Other sections presented on the HP-PSCM worksheet by default are not applicable to Focused portfolios, except those classified by Global Fund on ‘opt-in’ basis.
54
PQR database to be updated every time the PR procures and receives health products that are subject to PQR reporting.
55
Sections C. D. E. are applicable for reporting only for selected pilot High-Impact and Core grants as of period starting 1 July 2023.
56
Ibid.
Page 80 of 81
57
Not applicable for Final PUs.
Report Type
PU/DR
PU*
Final PU
Portfolio Type
High
Impact
Core
Focused
High
Impact
Core
High
Impact
Core
Focused
Crosscutting (continued)
9
Grant Management
PU/DR on completion / ongoing status of
the grant agreement requirements and
management actions
Required
CROSS-CUTTING REPORTING REQUIREMENTS
10
Assessment and Sign-off
▪
Integrated performance assessment,
including external factors that have
negatively impacted program
implementation and planned changes
in the grant
▪
Forward-looking PR and LFA
assessment of implementation
progress, by module
57
▪
LFA evaluation and quantitative
indicator rating
▪
LFA top-five key recommendations
for Global Fund attention
▪
PR and LFA sign-off pages
11
LFA Findings and
Recommendations
Issues and recommendations identified
by the LFA to address in the areas of
Programmatic/M&E, health products
management, financial management and
systems, as well as PR program
management and governance, including
management of SRs
*
Not Applicable for Focused portfolios.
Page 81 of 81
13. ADDITIONAL RESOURCES
For general guidance:
▪ Operational Policy Note on Implementation Oversight
For guidance on the programmatic section:
▪
Modular Framework Handbook
For guidance on the finance section:
▪ The Global Fund Guidelines for Grant Budgeting
▪ The Global Fund Audit Guidelines
For guidance on the health products procurement and supply chain management (HP-PSCM)
section:
▪ Guide to Global Fund Policies on Procurement and Supply Management of Health Products
▪ Quick guide to Global Fund’s PQR system.
