Global Fund and Performance Based Funding: Lessons from a Local Fund Agent

It is essential for donors providing funding to health programs that they are able to verify that the money are being put to good use and to ensure that the planned objectives are met. For the Global Fund to Fight AIDS, Tuberculosis and Malaria performance based funding is one of the core elements in their structure. In order to ensure that funds are being used properly and that program goals are being met GFATM engages organizations to act as Local Fund Agents (LFA). The LFA evaluates financial and programmatic performance of grant recipients under a framework designed by the Global Fund. Recipients of funds, in collaboration with the Global Fund, develops a budget based on quarterly or bi-annual funds disbursements from the Global Fund, as well targets for programmatic indicators to be met each period. The LFA will provide an unbiased evaluation of the financial and programmatic performance based on these set targets and provides recommendations to the Global Fund. Poor performance can lead to reduced funding or termination of program.

Working as an LFA for several years and in multiple countries have provided lessons that can be useful for both recipients of funds and donors that seeks to get the best use of the funds used. My presentation will provide and overview of the work we perform as an LFA, and highlight issues that are encountered on a regular basis that can be useful lessons health professionals designing programs, implementing programs, and evaluating programs. Evidence from the Global Fund experience will show that performance based funding can ensure effective and efficient use of funds if applied correctly.