The Office of the Inspector General (OIG) says that the governance, risk management practices and internal controls related to treasury management are adequately designed and generally well implemented. The OIG audited the treasury function in 2016. A report on the audit was released on 18 January 2017.
The Global Fund is in the process of reviewing its business model in high-risk countries. It appears likely that the Fund will proceed to strengthen its existing model rather than make any radical changes to that model – changes that might have included establishing a country presence in some form and in at least some countries.
The Global Fund launches its Prioritized Action Plan in efforts to enhance its risk management and project performance efforts
In May 2016, The Fund launched its Prioritized Action Plan-PAP to assist the Secretariat and the Board to monitor, assess and oversee the implementation of its strategy to achieve impact with the investments it makes. It was submitted to the Fund’s committees in June 2016 and the GF Board in July 2016, however, a number of the initiatives captured in the PAP were started in late 2015 and in early 2016.
Board members discuss whether there should be changes to the Global Fund’s current business model in high-risk countries
Should the Global Fund Secretariat have an in-country presence? At its last meeting in Montreux, Switzerland on 16-17 November, Board members discussed ways to strengthen its current business model in high-risk countries as well as possible alternatives to the model. No decisions were taken.
For the first 10 months or so of 2017, 91 agreed management actions (AMAs) were closed and 73 new ones were opened. As of 10 October 2016, there were 17 long overdue AMAs (defined as being more than 180 days late).
AMAs are actions that the Secretariat has agreed to implement following discussions with the Office of the Inspector General (OIG) about problems identified in OIG audits and investigations.
Civil society principal recipients (PRs) from across Africa recently gathered in Nairobi, Kenya to consolidate their collective knowledge and experiences and establish a formal community of practice. From 29-31August, 65 participants from 20 African countries demonstrated their commitment to strengthening the implementation of Global Fund grants through increased collaboration and peer learning.
The Office of the Inspector General says that its analysis shows that The Global Fund has demonstrated a steady and progressive improvement in organizational maturity over time, and that the work done in 2015 confirms that positive trajectory.
Current risk management processes are inefficient and ineffective in supporting the identification of risks during grant-making. This is a critical weakness because grant-making aims to identify and pre-empt potential implementation challenges so that implementers “hit the ground running” once grants are signed.
Despite serious concerns about risk, Global Fund approves $316 million in new funding for TB/HIV grants to Nigeria
The Secretariat is recruiting state-level fund portfolio managers for Nigeria
According to the Office of the Inspector General, insufficient progress has been made in assurance and risk management.
In its semi-annual progress report to the Board, the OIG said that its audit work has revealed that despite Global Fund investments in this area, assurance measures have had limited effectiveness and are still not being tailored to the country context.