operations update presentation

Fifteenth Board Meeting Geneva, 25-27 April 2007

Operations Update

25 April 2007


Part 1: Portfolio Progress, Results and Update

Part 2: Sharpening Focus on Risk Management

Part 3: LFA Re-tender Update

Part 4: Efforts to Strengthen Operations Management

Operations Update Outline


Key Points

• Sustained progress in disbursements

• Integrated risk management a priority

• Aid effectiveness through grant portfolio

progressing

• Country-level partnerships expanding

• More gains in Operations Management


Portfolio Progress

As of April 20, 2007 through 407 grants:– $US 5.8 billion committed – $US 3.6 billion disbursed

• On Round 6:– 100% TRP clarifications completed (87 proposals)– 8 grants (9%) signed

• From Round 1-5:– Mean no. of days between board approval and

grant signing- decreased by 100 days– Mean no. of days between signing and 1st

disbursement- decreased by 27 days


Signed Grant Agreements

Status as of 20 April 2007

Round No. of Approved components

No. ofGrants

Signed % Signed

Round 1 56 68 68 100%Round 2 98 102 102 100%Round 3 70 76 76 100%Round 4 72 82 82 100%Round 5 67 72 72 100%Round 6 87 88 8 9%Phase 2 230 178 77%Total 718 587 82%


Round 7 Update

• First round with fixed date of March 1

• Enhancements– Costed capacity building and TA needs– Guidance on HSS inclusion– Private Sector-related information– Gender

• Regional meetings (Financed by UN Partners)– Katmandu, Nairobi, Cairo, Bogota, Douala, Harare,

Dakar


Rolling Continuation Channel (RCC)

• First wave of RCC commenced– 50 grants reviewed

• Eleven grants pre-qualified – Grants by disease: 5-Malaria, 2-TB, 4-HIV/AIDS

• Application forms & guidelines out on April 16, 2007

• Lessons Learned Report to Portfolio Committee after 1 year


RCC – Pre-qualified Grants

Country Round Disease

Burundi 2 Malaria

China 1 TB

Cuba 2 HIV

Haiti 1 HIV

Honduras 1 HIV

Honduras 1 Malaria

Mongolia 1 TB

Morocco 1 HIV

Multi-Western Pacific 2 Malaria

Rwanda 3 Malaria

Tanzania 1 Malaria


Results as of Dec 2006

• 770,000 people on ARV therapy (up 101% from 2005)

• 9.4 million people on counseling and voluntary HIV tests

• 2 million on Tuberculosis treatment using DOTS (up 100% from 2005)

• 18 million families received insecticide-treated nets (up 134% from 2005)

Source: Global Fund (2007). Partners in Impact: Results Report

In Partnership with CCMs, WHO, UNAIDS, US PEPFAR


Unified Risk Management

An Illustrative Definition:

“Integrated risk management is a continuous proactive and systematic process to understand, manage and communicate risk from an organization-wide perspective. It is about making strategic decisions that contribute to the achievement of an organization’s overall corporate objectives.”

Source: Treasury Board of Canada


EARS/Technical Support System

• Greater focus now to country level for earlier responses

• Systematic role of partners in grant oversight– UNAIDS-led pilot initiative of 6 countries

• Invest in better communication:– LFA and CCM--PR

– Fuller use of web grant information by partners

– Fund Portfolio Manager communication to CCM

• Formalize “EARS” role of Fund Portfolio Managers


Promoting Aid Effectiveness in Grant Management

• Global network of CCM consultants developed– UNAIDS assisted– Technical Support Facilities

• Study on CCM and governance issues– Collaborate with 5-Year Evaluation

• Promotion of Civil Society Action Team


Local Fund Agent: Re-tender Update

• LFA Framework Contracts expire in Nov ‘07

• New Request for Proposals must go public by 30 June 2007

• Principles of Tender shaped by:– Secretariat Internal Survey– Draft TERG evaluation– US Government Accountability “Talking Points”– Draft LFA Report by Office of Inspector General

• Tender Principles Provided by Portfolio Committee


LFA Re-tender: Timeline

RFP - Tender

Synthesis and Model Refinements

Evaluation

Board Board MeetingMeeting

New LFAs New LFAs selectedselected

25/04/0725/04/07 15/11/0715/11/07

PC PC MeetingMeeting

29/03/0729/03/07

Pre-Pre-Solicitation Solicitation

Notice Notice

RFP RFP issuedissued

Receipt of Receipt of Proposals Proposals DeadlineDeadline

04/0704/07 30/06/0730/06/07 30/08/0730/08/07

EvaluationsEvaluations/Reviews/Reviews

11/06 to 11/06 to 03/0703/07

Evaluations Evaluations CompletedCompleted

30/09/0730/09/07

Memo toMemo toCRCCRC

15/10/0715/10/07

Principles endorsed by Portfolio Committee


Strengthening Operations Team Management

• Quality review of disbursements completed− Training of PR started in December ‘06− LFA penalties for underperformance in re-tender− Improvement targets built into Balanced Scorecard

• Operations Balanced Scorecard finalized

• Financial tracking system tested

• Contract for Leadership training awarded

• Monitoring & Evaluation Checklist launched

• Workload review implementation commenced


Analysis of Quality Disbursements

Performance Measurement (based on rating criteria used for phase II)

Contextual and other key information (cash, key risk factors…)

QUALITY DISBURSEMENT

ROBUSTDECISION

TIMELYDISBURSEMENT

CLEAR, ACCURATE& COMPLETE

DOCUMENTATION

Key Dimensions in Quality Disbursements


Analysis of Quality Disbursements

Clarity of Roles & Responsibilities

Necessary for robust performance

assessment

Systematic feedback to all relevant parties

within and outside GF for continuous improvement and

learning

Improveddocumentation

supporting decisions to disburse

Standardized Decision Making for

consistency, transparency and risk management

purposes

Alignment of GF core business

with its basic principles:lean, transparent, speed

and accountability

Efficiency Gains Reduced time and

resources spent in processing disbursement / avoid

unnecessary frustrations

QualityDisbursements


Random Sample of 20 Disbursements

End of Reporting Period

End of Disb. Period

45 days – deadline for submission of PR

report to LFA

90 days –Period covered

by Buffer

Baseline

77 d vs. 45 d 21 d 22 d 14 dAverage

•Figure not drawn to scale•Dates based on dates of signing

LFA Review

Other Secretariat Reviews

FPM review

PR Preparation

90 days – Period covered by Buffer

134 d. from End of Reporting Period to Disb. , +44d


Analysis of Quality Disbursements: Recommendations

• Train Principal Recipients (PR) on disbursement requests and budget forecasting to ensure better quality of disbursement documentations and decisions

• Fund Portfolio Managers to assist Principal Recipients in identifying bottlenecks with the preparation of disbursement requests

• Systematic feedback to PRs and LFAs on disbursement decision

• LFA contracts to include penalties to discourage delays and low quality of reports and FPM to enforce it


Conclusion

• Sustained progress in disbursements

• Integrated risk management a priority

• Aid effectiveness through grant portfolio progressing

• Country-level partnerships

• More gains in Operations Management


END

operations update presentation

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