Editor’s Notes and Global Fund 46th Board Decision Points

1. EDITOR'S NOTE
10 Nov 2021
This 46th Global Fund Board meeting has been marked by controversy regarding the Global Disease Split

Hot off the press, this special edition of the Global Fund Observer brings you all the latest from the Board meetings held on 8, 9 and 10 November and which concluded late this afternoon.

This was another Board meeting that was held virtually due to COVID-19 travel-related restrictions. The Secretariat has now had several experiences in delivering online Board meetings; and is able to do so with confidence and aplomb. As usual, the slick organization of the online format was superb.

As we have noted for previous Board meetings, it is demanding to expect the undivided attention of so many people for a four-hour time period in one go, online, several days running for both the pre-Board meetings over two days and the Board meeting itself over three days. Nonetheless, Board members, delegations, partners and observers were willing to do so. And this Board meeting was especially important given that it sought approval for the Strategy Narrative, the Global Disease Split, the Recommended Updates to Risk Appetite, the Independent Evaluation Function, and the 2022 Corporate Work Plan and Operating Expenses Budget. The Decision Points can be found below, as well as in the respective articles.

The Global Fund asks a lot of its partners; who respond accordingly. The level of debate was extremely lively, even tense at moments and very challenging for the Board leadership who were trying to reach consensus among diverse stakeholders with very different priorities. We commend the Board and its leadership for the way in which these difficult discussions have been managed. We hope we have adequately reflected the level of debate in this issue’s articles.

Decision Point GF/B46/DP03:

Approval of the Strategy Narrative for the 2023-2028 Global Fund Strategy

Based on the recommendation of the Strategy Committee, as presented in GF/B46/03_rev1, the Board:

1. Approves the Strategy Narrative for the 2023-2028 Global Fund Strategy in Annex 1 to GF/B46/03_rev1 and requests that the Secretariat develop, for presentation to the Strategy Committee in March 2022 and subsequently the Board in May 2022, an approach for Strategy implementation with a focus on delivering the key changes outlined in the Strategy using all existing levers and identifying where new solutions will be required; and

2. Expresses its recognition to the Standing Committees for their work in the context of the development of the Strategy and looks forward to the continuous engagement between the Board, Secretariat and the Standing Committees, in line with their respective mandates, throughout the implementation of the Strategy.

Budgetary implications: The Secretariat will work with the Audit and Finance Committee on anticipated costing and operating expenses related to the Strategy once the Final Strategy is approved.

Decision Point GF/B46/DP04:

Global Disease Split for the 2023-2025 Allocation Methodology

Based on its review of the Secretariat’s analysis and recommendations on the global disease split for the 2023-2025 allocation period, and the Strategy Committee’s related deliberations, the Board:

1. Acknowledges that the total amount of funds available for country allocation (including approved sources of funds for country allocation and any additional funds approved as available for country allocation) will be decided by the Board in November 2022, based on the recommendation of the Audit and Finance Committee following announced replenishments results from the 7th Replenishment;

2. Approves that the apportionment of available country allocation funds across disease components (“Global Disease Split”) for the 2023-2025 allocation period will be determined by the total amount of available funds for country allocation for the 2023-2025 allocation period approved by the Board;

3. Acknowledging the increased share of deaths from tuberculosis among the three diseases, approves the following Global Disease Split for the 2023-2025 allocation period, which increases funding for tuberculosis while preserving funding and potential for scale-up for HIV and malaria:

a. Any available funds for country allocation up to and including US$ 12 billion will be apportioned as follows: 50% for HIV/AIDS, 18% for tuberculosis, and 32% for malaria; and

b. Any additional available funds for country allocation above US$ 12 billion will be apportioned as follows:

i. 45% of such funds will be apportioned to HIV/AIDS;

ii. 25% of such funds will be apportioned to tuberculosis; and

iii. 30% of such funds will be apportioned to malaria.

4. Recognizing the need to further increase funding for tuberculosis and maximize the quality and impact of tuberculosis programs in line with the ambition of the Global Fund Strategy Narrative, requests the Secretariat, partners and committees, as relevant, to propose and implement specific options to address these needs, including:

a. Presenting to the Board, at its 47th meeting, a proposal to leverage catalytic investments for the 2023-2025 allocation period to mobilize additional resources to reduce deaths from tuberculosis;

b. Aggressively exploring, on an ongoing basis, evidence-based portfolio optimization and prioritization opportunities in order to more effectively address tuberculosis incidence and mortality in high burden countries;

c. Continuing to pursue and monitor domestic co-financing commitments required to increase overall financing for tuberculosis; and d. Continuing to pursue innovative finance opportunities to increase funding to tuberculosis in high burden countries.

5. Requests the Global Fund’s Independent Evaluation Function to commission, in consultation with the Strategy Committee, technical partners and Secretariat, an external evaluation of the Global Fund’s approach to resource allocation to maximize impact, to inform evidence-based decision making on these issues ahead of the 8th replenishment, and to support more effective delivery of the Global Fund Strategy.

 

Budgetary implications (included in, or additional to, OPEX budget): None.

 

Decision Point GF/B46/DP05: Amended Risk Appetite Statements

1. The Board:

a. recalls its ultimate responsibility to the Global Fund’s stakeholders for overseeing the implementation of effective risk management;

b. affirms the Strategy Committee’s concurrence with the amended Risk Appetite Statements under such committee’s oversight, as set forth in Annex 1 to GF/SC17/14_Rev2 and pursuant to decision point GF/SC17/DP02;

c. further affirms the Audit and Finance Committee’s concurrence with the amended Risk Appetite Statements under such committee’s oversight, as set forth in Annex 1 to GF/AFC17/02_Rev2 and pursuant to decision point GF/AFC17/DP02; and

d. instructs the Secretariat to provide greater reporting on emerging risk trends and the effectiveness and results of the assurance measures, including the additional assurances put in place.

2. Based upon the recommendation of the Audit and Finance Committee, the Board approves the amended Risk Appetite Statements, including risk appetites, target risk levels and timeframes to achieve target risk, as set forth in Annex 1 to GF/B46/06, acknowledging that the target risk level for each risk shall become the revised risk appetite at the target due date.

3. This decision point and the amended Risk Appetite Statements approved by it shall supersede decision point GF/B39/DP11 (May 2018).

Budgetary implications (included in OPEX budget).

Decision Point GF/B46/DP06: Independent Evaluation Function

The Board notes the recommendation of the Strategy Committee and of the Ethics and Governance Committee, as set forth in GF/B46/05 rev1, with respect to the new independent evaluation model which shall replace the Technical Evaluation Reference Group ("TERG") and decides to approve the creation of the Independent Evaluation Panel, as described in GF/B46/05 rev1.

Accordingly, the Board:

  1. Amends the Global Fund Bylaws, as set forth in Annex 1 of GF/B46/05 rev1, effective 31 December 2022;
  2. Amends the Charter of the Strategy Committee, as set forth in Annex 2 of GF/B46/05 rev1, effective 31 December 2022;
  3.  Approves the Terms of Reference of the Independent Evaluation Panel ("IEP"), as set forth in Annex 3 of GF/B46/05 rev1 effective 31 December 2022, which will constitute one structure of the independent evaluation function previously held by the TERG, noting that approval of subsequent non-material modifications to this document are delegated to the Strategy Committee;
  4. Requests the Secretariat, under the oversight of the relevant standing Committees, to update any policies, relevant governance documents, charters, terms of reference, agreements or prior decisions needed to align with the documents approved under paragraphs 1, 2 and 3 of this decision point and to manage the orderly transition between the Technical Evaluation Reference Group ("TERG") and the IEP;
  5. Requests the Strategy Committee, in fulfilling its oversight role over the independent evaluation function, to consider the effectiveness of the guidance and procedures developed to safeguard both the independence and the learning components of the evaluation function; and
  6. Decides to dissolve TERG following the transition period ending 31 December 2022 and instructs the Strategy Committee to develop and oversee transitional arrangement between the IEP and the TERG.

Budgetary implications (included in, or additional to, OPEX budget)

Decision Point GF/B46/DP07: 2022 Work Plan and Budget Narrative and the 2022 Operating Expenses Budge

Based on the recommendation of the Audit and Finance Committee, the Board approves the:

1. 2022 Work Plan and Budget Narrative, as set forth in GF/B46/02; and

2. 2022 Operating Expenses Budget in the amount of US$ 322.2million, as set forth in GF/B46/02 (the “2022 OPEX Budget”), which includes (i) US$ 65.5 million for in-country and external assurance activities, as described in GF/B46/02, and (ii) US$ 14.9 million for the Office of the Inspector General’s 2022 operating expenses.

Finally ― as we put this Special issue to bed…

As always for these special editions, we at Aidspan have worked tirelessly to ensure you receive your post Board issue before we can rest. We hope you enjoy it; and please look out for our next regular issue due out on 24 November.

As ever, Aidspan and our editorial team, under the leadership of Ida Hakizinka, does its best to ensure the accuracy of data and statements in our published articles ― and hence our inclusion of hyperlinks ― but if you, the reader, identify an error or important omission, please notify us and provide us with your data source; and we shall be happy to publish a correction or amendment.

If you enjoy the GFO and find it relevant to your work, please encourage your colleagues to colleagues to subscribe!

Don’t forget: if you are aware of an interesting development relevant to disease programmes or health systems and that you feel is worthy of global discussion, do let me know together with the name of a person prepared to write about this. Suggestions and comments can be sent to me in English, French or Spanish. My email address is: christelle.boulanger@aidspan.org.

 

Christelle Boulanger


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