Based on the recommendation of the Finance and Operational Performance Committee (the “FOPC”), the Board approves the 2014 operating expenses budget in the amount of USD 298.8 million, as set forth in GF/B31/3 Part A (the “2014 Operating Expenses Budget”), which includes USD 20.5 million for the Office of the Inspector General’s 2014 operating expenses.
As previously decided by the Board (GF/B22/DP18), the Secretariat will manage the 2014 OPEX Budget’s exposure to foreign-exchange rate volatility and include in its periodic reporting to the FOPC on budget matters any measures taken to minimize such exposure.
1. Based on the recommendation of the Finance and Operational Performance Committee, the Board approves the amended and restated Comprehensive Funding Policy, as set forth in GF/B31/04 – Annex 1 (the “Amended and Restated CFP”).
2. The Amended and Restated CFP supersedes all prior versions of the Comprehensive Funding Policy, and any related decisions previously adopted by the Board or its Committees that are inconsistent with the Amended and Restated CFP.
1. The Board notes that a portion of sources of funds may be excluded from the allocation to Country Bands for future utilization towards initiatives that are not adequately accommodated through the allocation of resources to Country Bands (Annex 1 to GF/B27/DP7) (the “Special Initiatives”).
2. Based on the recommendation of the Strategy, Investment and Impact Committee (the “SIIC”), the Board decides that up to USD 100 million will be available over the 2014 – 2016 for the following Special Initiatives, as described in GF/B31/08A and in the amounts listed below:
i. USD  million for the Humanitarian Emergency Fund;
ii. USD  million for Country Data Systems;
iii. USD  million for Technical Assistance for Strong Concept Notes; and PR grant making capacity building
iv. USD  million for Technical Assistance on Community, Rights and Gender.
v. USD  million enhancing VFM and financial sustainability of GF supported programs
The remaining balance of the total funds available for Special Initiatives may be used by the Secretariat for the following Special Initiatives, as set forth under paragraph 2a above, upon the SIIC’s approval in consultation with the Finance and Operational Performance Committee FOPC of an updated budget and plan to implement such initiatives.
3. The Secretariat shall recover investments towards Special Initiatives from funding provided through grant programs whenever possible.
4. With respect to the use of funds available for the Special Initiatives, the Board requests the Secretariat to report to the Finance and Operational Performance Committee on the financial implications and to the SIIC on the operational and strategic implications.
1. The Board notes that a portion of sources of funds may be excluded from the allocation to Country Bands for future utilization towards investments that are not adequately accommodated through the allocation of resources to Country Bands (Annex 1 to GF/B27/DP7).
2. Based on the recommendation of the Strategy, Investment and Impact Committee, as set forth in GF/B31/07, the Board:
a. Decides that USD 200 million will be available for new Regional Programs over the 2014 – 2016 allocation period;
b. Recognizes that Regional Programs will be presented to the Board for funding approval throughout the 2014 – 2016 allocation period; and
c. Acknowledges funding applications that are submitted by a group of small island economies or other small countries that typically would not apply as individual countries due to inherent administrative inefficiencies (the “Multi-Country Applications”) will be funded from amounts allocated to the individual disease components participating in each Multi-Country Application.
1. The Board acknowledges:
a. The Finance and Operational Performance Committee’s recommendation on the amount of announced replenishment results for the 2014 – 2016 Replenishment Period, net of certain adjustments and qualifying deductions, that will be allocated to Country Bands at the start of the Allocation Period (the “Initial Allocation”), as set forth in GF/B31/06, in accordance with the Comprehensive Funding Policy, as amended and restated under decision point GF/B31/DP05; and
b. The Board’s approval of the Strategy, Investment and Impact Committee’s recommendation to apportion USD 100 million to finance Special Initiatives and USD 200 million to finance Regional Programs over the 2014 – 2016 period (GF/B31/DP06 and GF/B31/DP07, respectively).
2. Accordingly, the Board decides the Initial Allocation for the 2014 – 2016 Replenishment Period is USD 10.22 billion.
1. The Board notes its prior decision to approve the Amended and Restated Comprehensive Funding Policy (GF/B31/DP05) (the “CFP”) as a standard financial management framework, and acknowledges unique measures are required to facilitate the 2014 allocation of resources to Country Bands, the first under the allocation-based funding model, to manage the transition from the rounds-based system.
2. Accordingly, based on the joint recommendation of the Finance and Operational Performance Committee (the “FOPC”) and the Strategy, Investment and Impact Committee (the “SIIC”), the Board adopts the following transition framework:
a. The total amount that will be allocated to Country Bands (the “Total Allocation”) using the allocation methodology will be comprised of the following amounts:
i. The Initial Allocation, in the amount of USD 10.22 billion, as approved under decision point GF/B31/DP08; which will determine the amount of incentive funding; and
ii. The amount of Sources of Funds, as defined in the CFP, originating from the Third Replenishment Period (2011 – 2013), or earlier, which have not been disbursed as at 31 December 2013 (the “Existing Funds”), in the amount of USD 5.55 billion, as recommended by the FOPC.
b. While each grant applicant’s portion of the Total Allocation must be requested by the applicant and approved by the Board prior to 31 December 2016, it may be utilized beyond such date in accordance with the terms of the relevant grant agreement;
c. The Total Allocation will address the remaining pipeline of grant funding due to Board-approved proposals or other Board decisions originating from the Third Replenishment Period, or earlier, as at 31 December 2013, (the “Existing Grants Pipeline”) while taking a comprehensive approach such that performance and strategic impact are reflected in the investment of the entirety of funds;
d. While each disease component's portion of the Total Allocation will typically cover a period of four years starting from 1 January 2014, the secretariat, working together with countries or regions has the operational flexibility to structure longer or shorter grant implementation periods while applying the principles of the allocation model to guide funding levels towards the amounts devided from the allocation formula.
e. Accordingly, a 25-percent target minimum reduction compared to the most recent available four-year disbursement levels (the “Graduated Reduction”) will be applied across the portfolio of disease components that have funding levels above their notional shares under the allocation methodology; and
f. If a disease component’s Existing Grants Pipeline exceeds the amount that would result from applying the Graduated Reduction described in paragraph 2.e. above, then instead of applying the Graduated Reduction, the disease component’s Existing Grants Pipeline will serve as a basis to determine its total allocation starting from 1 January 2014.
3. The Board notes the transition framework established under this decision represents measures tailored to address the unique circumstances and challenges of transitioning from the rounds-based system to the allocation-based funding model and shall not apply to subsequent allocations and Replenishment Periods.
1. Based on the recommendations of the Strategy, Investment and Impact Committee (the “SIIC”), the Board approves the composition of Country Bands for the 2014 – 2016 allocation period, as defined and set forth in Annex 1 to GF/B31/09 – Revision 1.
2. In accordance with its decision to approve the transition framework recommended by the Finance and Operational Performance Committee and the SIIC (GF/B31/DP09), the Board acknowledges USD [15.8] billion is available for allocation to Country Bands for the 2014 – 2016 allocation period, consisting of the following:
a. USD [14.8] billion for indicative funding; and
b. USD  million for incentive funding.
3. The Board approves the following allocation of indicative funding for the 2014 – 2016 allocation period:
a. Country Band 1: USD [11,250] million;
b. Country Band 2: USD  million;
c. Country Band 3: USD [1,530] million; and
d. Country Band 4: USD [1,105] million.
4. The Board also decides incentive funding, in the amount of USD  million, will be apportioned across and within Country Bands 1, 2 and 3 in accordance with the methodology approved by the SIIC under authority delegated by the Board (GF/SIIC09/DP2).
1. Based on the recommendation of the Audit and Ethics Committee, the Board approves the Policy for Disclosure of Reports Issued by the Inspector General, as revised and set forth in Annex 1 to GF/B31/12, which supersedes and replaces the disclosure policy adopted by the Board under GF/B20/DP23.
2. Accordingly, the Board approves the following revision to Section 15 of the Charter of the Office of the Inspector General1 (the “OIG Charter”) to align the OIG Charter with the revised Policy for Disclosure of Reports Issued by the Inspector General: [On]Reporting: Final reports of Office of the Inspector General regarding its assurance and investigations work will be posted on the Global Fund’s public internet site in accordance with the Board-approved ‘Policy for Disclosure of Reports Issued by the Inspector General’
Extension Approach Under The New Funding Model
1. The Board decides:
a. The Secretariat is authorized to extend a grant’s implementation period by a maximum of 12 months beyond the end date set forth in the relevant grant agreement:
i. When the extension does not require funding in addition to the amounts approved by the Board for such implementation period ; or
ii. When any portion of the extension requires funding in addition to the amounts approved by the Board for such implementation period, provided the period of additional funding does not exceed six months and the amount of additional funding does not exceed USD 10 million.
b. Any other circumstances warranting an extension will be recommended by the Secretariat to the Board for approval.
c. The Secretariat will develop a framework for exercising the authority delegated under this decision, and report to the Board the extensions approved by the Secretariat under such authority through the monthly Grant Approvals Committee Report on funding recommendations.
d. The Secretariat will review the implementation of this decision and present any recommended modifications to the Strategy, Investment and Impact Committee for approval.
2. The Board also decides that as of the date of this decision, the extension framework adopted under this decision supersedes all prior policies and decisions concerning extensions whether in whole or with respect to relevant parts, including Board Decision Points:
a. B24/EDP/5: Procedure for Rolling Continuation Channel Mid-Term Performance Reviews and Extensions;
b. GF/B20/DP31: Architecture Review – Transition Provisions;
c. GF/B16/DP7, GF/B14/DP27 and GF/B13/DP2: Phase 2 Decision-Making Policies and Procedures; and
d. GF/B26/DP5: Delegation of Authority to Secretariat for Grant Operations.
1. The Board acknowledges the recommendations set forth in GF/B31/10 outlining the membership appointment recommendations for the Board’s Audit and Ethics Committee (AEC).
2. Accordingly, the Board approves the appointment of the following individuals to the AEC for a term that will expire on 9 March 2016 or the appointment of their respective successors:
a. Graham Joscelyne as independent Chair of the AEC;
b. Mohammed Abdellatif as independent member of the AEC;
c. Gabor Amon as independent member of the AEC;
d. Wendy Harrison as independent member of the AEC;
e. Christopher Kassami as a constituency-nominated member from the Eastern and Southern Africa Constituency.
1. The Board acknowledges the nominations for membership of the Strategy, Investment and Impact Committee set forth in GF/B31/10
2. Accordingly the board approves the appointment of the following individuals to serve as voting members of the SIIC, representing the board constituencies listed by their name, for a term that will expire on 9 March 2016, or until appointment of their respective successors:
Aida Kurtovic: Eastern Europe Central Asia
Vinand Nantulya: East and Southern Africa
Abdallah Osman: Eastern Mediterranean Region
Mirta Roses: Latin America and the Caribbean
Asia Russell: Developed Country NGO
Helga Fogstad: Point 7
Jason Lane: UK/Australia
Julia Martin: USA
Philippe Meunier: France
Jan Paehler: European Commission
3. Noting that the Chair of the Technical Review Panel and the Technical Evaluation Reference Group serve as non-voting members of the SIIC, the Board appoints the following individuals to serve as additional non-voting members of the SIIC, representing the Board constituencies listed by their name, for a term that will expire on 9 March 2016, or until the appointment of their respective successors:
a. Lucica Ditiu, Partners; and
b. Mbulawa Mugabe, UNAIDS.
4. The Board decides to launch a new call for nominations for the Finance and Operational Performance Committee (the “FOPC”) with a due date for nominations by 26 March 2014. The Chair and Vice-Chair of the Board will present its recommendation of candidates to the Board for approval by 15 April 2014.
5. The Board notes that qualified candidates that have already been nominated, but not appointed, for a Committee role will remain in consideration for FOPC membership.
6. The Board urges constituencies to nominate additional candidates that clearly demonstrate the competencies and skills that are required to perform the responsibilities of FOPC members.