Capacity Development and Transition UNDP Global Fund Partnership 26 May 2013

1. Capacity Development and Transition UNDP Global Fund Partnership26 May 2013

2. An Approach for Capacity Development & Transition

3. New Global Fund Model - Opportunities • Performance-based funding - to obtain / access Global Fund (and other donors) • Demonstrate effectiveness and value for money • Demand driven • Progress towards impact • Good quality Policy & National Strategies (HIV Malaria & TB) • Support to invest in National Strategies • Country Dialogue between implementers (GO & NGO) • Allocation formula; country’s share in the global disease burden and Gross National Income (GNI) per capita. • Prepare quality Concept Note http://www.theglobalfund.org/en/activities/fundingmodel/

4. Capacity Development / Transition Principles • Continuous Provision of Services to Vulnerable Groups • To develop sustainable capacity of National Entities – Government and Non Government • To reduce transaction costs • Maximize Performance Management • Minimize Fiduciary Risk • Clear Plan of Action • Transition Milestones • Systems and procedures in place • Systems allowing main functions to be carried out with acceptable levels of compliance • Capacity Development Indicators • Systems in place and the degree to which they are being used

5. Institutional Framework • Functional Analysis of PR & SR roles; • Programming / Work Planning / Budgeting / SR Management • Financial Management / Accounting / Risk / Oversight • Forecasting / Procurement/Quality Assurance/Supply Chain • M&E / Reporting / Analysis / Decision making • Clarify Roles and Responsibilities of PRs & SRs • Decide on management structures for PRs (PIU etc) • Develop Organograms for PR & SR role • New / Revised ToRs for PR & SR role • Strengthen Oversight & Accountability- CCM, Audit

6. Functional Capacities

7. Programming Capacities Capacity areas / actions; • Alignment e.g. between Grants / NFM & National Strategies • Operations manual with Functions / SOPs / Procedures / Guidelines/ Templates adapted for each PR / SR • Merit based recruitment of human resources to manage PR /SR • Integrated Work Planning for PRs / SRs / SSRs • Further strengthen coordination at all levels • Submissions to the Global Fund and other donors. • Communicate Results and Lessons Learned

8. Sub-Recipient Management • SR management is a new role for new PRs Capacity areas / actions; • Establish Systems for SR Management including; • SR assessment • Selection of SRs • Contracting SRs • Managing performance of SRs • Risk Management of SRs • SR capacity assessment capacity development plans • SR Monitoring and Evaluation • Pilot with new SRs then scale up?

9. Financial Management (1) • Transition – will result in increase in volume of funds managed by national entities • Need to meet national requirements, international standards & Global Fund requirements. • PRs will be responsible for oversight and accountability of SRs. • Sustainable financing to help meet funding shortfalls Capacity areas / actions to strengthen Financial Management of PRs • Review and revise Financial Manuals for Prospective PRs and SRs • System for joint Budgeting for PRs, including for budget planning, reviewing, monitoring analyzing variances and reporting • Accounting system – Review and upgrade and roll out accounting software for PRs and ensure that SR systems are compatible e.g. consolidate reports are possible

10. Financial Management (2) • Internal Audit – Strengthen audit & management follow up • Disbursements – PRs develop cash forecast; information; introduce system to track SR disbursements • Treasury systems – PR to ensure SRs; separate bank account; petty cash management; monthly bank reconciliations; payment vouchers • Reporting – PR and SRs financial reporting in line with GF requirements; Service Delivery Areas (SDAs); program cost categories; and implementers) • Purchasing system – PR introduce purchase order system; strengthen contract management • Asset Management – PR to check that SR have system to protect assets & manage inventory • Tax exemption – For PRs

11. Procurement Procurement capacity areas and actions: Procurement of pharmaceuticals e.g. ARVs & meeting international standards is critical for grant performance and will require a number of decisions and activities. • Procurement department in PR, needs to become fully operational. • National procurement policies reviewed against international standards and Global Fund requirements • Technical support needed, decisions on procurement management • Review Quality Assurance systems for pharmaceutical products • Review forecasting system including consumption & quality control • Decisions on product selection & alignment toGlobal Fund policy • Strengthen National Drugs Registry Authority registry system • Systems to produce prioritized and budgeted procurement planning • How to produce technical specification and evaluation • Procurement feasibility study could be considered • Procurement and Supply Chain Management business plan needed

12. Supply Chain Management Supply chain management capacity areas and actions; • Quality assurance control systems for random sampling and qualified testing, • National laboratory certification and management • Logistics MIS reviewed and revised to improve data flow, clarify roles, introduce stock cards, improve templates • Health MIS to be reviewed and revised • Review distribution schedule, ensure adequate transport • Prioritize plan to improve national & sub-national storage • Validation and management of buffer stocks • Systems to manage expiry dates • Enhance the management, sustainability and oversight. • Sub-national control systems / Attract and retain Human resources / SOPs / training/ monitoring visits

13. Monitoring & Evaluation • Clarify roles and responsibilities for M&E • Strengthen data collection and quality • Integrated management and access of M&E systems • Strengthening analysis and informed decision making by PRs and key stakeholders • M&E linkages to Programming, SR Management, budget allocations and forecasting • Identify case studies to demonstrate and communicate results Capacity areas and actions; • Revise / Prepare M&E manual PR, National Centers & SRs • Improve quality and timeliness of data collection at sub-national and national level • Review existing databases to improve access and linkages with open-source software • Increase access and use of analytical software • Management reports to improve decision making

14. Human Resource Management - Incentives Capacity areas and actions; • Functional Analysis of PR(s) and SRs identifies national structures • Clarify Roles and responsibilities for PR and SR structures • Revise Organogram to reflect PR functions and roles • Consider how Global Fund positions integrated into national entity • PRs merit based recruitment with adequate oversight • Consider staff survey on retention and motivation of staff • Review and strengthen Financial and Non-Financial Incentives • Staff development plan • Professionalization for Grant Functions e.g. Accountancy qualifications • Leadership and management development • Peer to Peer learning • Coordinated training plans

15. National Strategy / Policy / Legal Framework Enabling Environment Enabling Environment capacity areas and actions • Align CD & Transition actions with National Strategy • Review national strategies; Identify gaps • Action plan to implement nation strategies • Harmonise / update Legal Framework • Meeting international standards & WHO guidelines • Mainstream Human Rights approaches

16. Capacity & Transition - Success Factors • Ownership & Leadership– participation by PRs & stakeholders • Global Fund requirements - Capacity actions and transition milestones • Attracting & Retaining Human Resources • Oversight & Accountability – Mechanisms and risk mitigation • Institutional Framework - Clear roles and responsibilities • PR Operational Manuals – SOPs, procedures guidelines templates, with roll out and training • Mobilizing funding to support strengthening systems • Momentum - realistic, quick results, priorities & milestones • Sustainability – costing exercise for programs • Coordination – CCM stakeholder engagement, link to health system reforms, donor coordination

17. CD & Transition Management Considerations • CD / Transition Plans allow UNDP, Global Fund & Development Partners to provide and coordinate support & increase performance • Correct and realistic timing and ownership • Focus on strengthening national systems Programming; SR Management; FM; PSM; & M&E • CD is a significant contribution to risk mitigation • CD needs to have a grant performance indicator • Country context determines when & how Transition can take place e.g. ASP / Risk / Sanctions • Transition Milestones for putting systems in place

18. Capacity Development Toolkit:To support national entities in implementation of national responses to HIV and AIDS, TB and Malaria http://undp-globalfund-capacitydevelopment.org/