A: The Global Fund provides grants to locally-developed programs to prevent, treat and mitigate HIV and AIDS, TB and Malaria.

Q: What do you mean when you say it is Performance Based Funding?

A: The Global Fund was created around the concept of “performance –based funding”. This means that only those grant recipients who can demonstrate measurable and effective results from the monies received will be able to receive additional funding. In other words, initial funding is awarded solely on the basis of the technical quality of applications, but continued and renewed funding is dependent upon proven results and targets achieved.

Q: Does Global Fund implement programs?

A: The Global Fund operates as a financial instrument, not as an implementing entity. It does not implement programs directly, relying instead on the knowledge of local institutions and expertise.

Q: Who is Country Coordinating Mechanism (CCM) and what are their functions?

A: CCM is country-level partnership that develops and submits grant proposals to the Global Fund headquarters based on priority needs at the national level. After grant approval, they oversee progress during implementation. CCM are central to the Global Fund’s commitment to local ownership and participatory decision making. They include representatives from both the public and private sectors, including government ministries, multilateral or bilateral agencies, NGOs, academic institutions, private businesses and people living with HIV/AIDS.

Q: What is Local Fund Agent (LFA)?

A: The Global Fund does not have a country-level presence outside its offices in Geneva. Instead, it relies on independent advice from local auditors referred to as LFA. In the initial stage, an LFA assesses the capacity of a nominated Principle Recipient (PR) to administer grant funds and be responsible for implementation. During the life of a grant, the LFA will also verify the PR’s periodic disbursement requests and progress updates. They are in addition responsible for reviewing the PR’s annual report, and advise the Global Fund on matters involving disbursements and other action.

Q: What is Principal Recipient (PR)?

A: For each grant, the CCM nominates one or more public or private organisations to serve as PR. The PR is legally responsible for local implementation of the grant, including oversight of sub-recipients of grant funds and communications with the CCM on grant progress. The PR also works with the Global Fund Secretariat in Geneva to develop a two-year grant agreement that sets program results to be achieved over time. Over the course of the grant agreement, the PR requests additional disbursements based on demonstrated progress towards these intended results.