GFO Live

GFO Live contains news, analysis and commentary articles written by Aidspan about the Global Fund and related issues. The articles appear in GFO Live as we write them. Many of the articles posted here in GFO Live will also appear in the next issue of GFO Newsletter. When GFO Live articles appear in GFO Newsletter, they are removed from GFO Live. All articles in GFO Live contain a comment feature where readers can comment on the article itself and on comments from other readers.

The conclusion of the Global Fund's 32nd Board meeting since its inception in 2002 demonstrated a healthy maturation of the organization with an improved adherence to a systematic way of doing business. But lingering questions about impact, about equitability and about resource management remain, accompanied by concerns about the gaps in capacity and flexibility that the funding model has yet to overcome

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Based on the recommendations of the Working Group on Governance, and considerable discussion at their closed retreat, the Board of the Global Fund has agreed to create a fourth Board committee. The Transitional Governance Committee will steer the plan  moving forward on various aspects of fairly limited governance reform.   

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This article provides a summary of the main decisions made by the Global Fund Board at its 32nd meeting in Montreux, Switzerland on 20-21 November 2014.

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A risk policy and an over-arching enterprise risk management framework were approved at the 32nd Board meeting in Montreux. The leadership of the Fund has agreed that the portfolio risk index score of 1.86  (on a scale of 1 to 4) is appropriate.  The most common risks itemized in the organizational risk register were: poor program quality; treatment disruptions; inadequate grant oversight; Community, Rights and Gender-related risk; failure to deliver on mission; and failure to provide a new Secretariat culture.

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The Global Fund will require an estimated $1.3 billion in additional resources to ensure continuity of services through 2017, due to the decision to allow some countries to shorten the length of grants approved under the new funding model -- assets that will likely be found from other countries' inability to absorb all of the funds they've been allocated.

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A near-final version of the 16 Corporate KPIs was approved at the 32nd Board meeting in Montreux, Switzerland.  The indicators now have baselines (if relevant) and targets, with the exception of the indicator measuring human rights protection  which is promised for the next Board meeting. 

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The Board approved a detailed workplan for 2015, and a budget that holds the line on costs.

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Little progress was made on recoveries of losses in the first half of 2014, according to a report prepared for the Board meeting on 20-21 November. However, the Secretariat is optimistic that the pace of recoveries will pick up. In another report, the OIG was critical of the record-keeping and tracking mechanisms at the Recoveries Committee. 

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The Board adopted a new ethics and integrity framework and established a dedicated ethics function. A set of principles related to a code of ethical conduct for governance officials was also adopted. 

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Transformation of the way the Global Fund sources and buys the products needed to underpin its response to AIDS, TB and malaria will continue with the design and roll-out of a new electronic marketplace that seeks to be a transparent and cost-efficient platform for countries to purchase equipment and drugs.

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