Progress Update/Disbursement Request
(PU/DR) forms:
Training slide library
May 2011
Training Slide Library
Objectives
 To support the roll-out of revised Progress Update/Disbursement
Request (PU/DR) forms released in February-March 2011.
 To provide a comprehensive set of training slides, designed either for
self-study, or for selected use by trainers and workshop facilitators,
for adaptation to different training needs.
 The PU/DR form and guidelines in English, French, Spanish and
Russian are available on:
http://www.theglobalfund.org/documents/lfa/LFA_PUDR_Guidelines_
en.pdf
Slide 2
Specific learning points
The PU/DR training slides aim to increase participant understanding of:
 The central role of Progress Update/Disbursement Request (PU/DR)
forms, within the Global Fund’s performance based funding system,
and the grant management cycle.
 The Global Fund’s reporting requirements which are part of the
disbursement process, illustrated through working examples.
 The format and functionality of the Excel workbook used for PU/DR
reporting, with emphasis on new sections and fields.
 Knowledge of the Global Fund Grant Rating Methodology is
important for the completion of the PUDR Form. For a summary of
the methodology please refer
http://www.theglobalfund.org/en/performancebasedfunding/methodol
ogy/?lang=en
Slide 3
Principal Role of PU/DR forms
 Performance based funding lies at the heart of the
Global Fund’s business model. Under this model,
disbursement of grant funds is subject to verification
and checks of both financial and programmatic
information presented by the PR.
 Every year the Global Fund makes over 1,000
disbursement decisions, based on specific
programmatic and financial information, gathered
through Progress Update/ Disbursement Request
(PU/DR) forms.
 The PU/DR forms are the most used in the Global
Fund. Their principal function is to manage risks, set
a grant rating and set a recommended disbursement
amount.
 They are the cornerstone of Performance Based
Funding, helping to ensure funds are effectively and
efficiently used for delivery of life saving services.
Slide 4
PU/DR forms and Grant Management
4. Data used in Grant
Renewal
cumulative and trend data
input to Phase 2/Periodic
Reviews
3. Data used for
disbursement decisionmaking
grant rating and recommended
amount set by
LFA-FPM/Country Team
source for CCM and
TRP
1. Data based on
Grant Agreement
PU/DR
forms
2. Data used for
grant implementation and
oversight
Management of risks through
Management Letters
Slide 5
5. Data used in
new Proposal
Development:
Performance Framework +
Summary Budget
templates + Conditions
Precedent (CPs) and/or
Special Conditions (SPs)
Background of PU/DR revision
■
The old country reporting forms for disbursements (PU/DR) had been in use since early
2006. Modifications to the forms became necessary to address issues and risks identified
in the past five years :
- insufficient guidelines;
- lack of systematic tracking of progress against Management Actions;
- inadequate focus on pharmaceutical / health products management;
- misalignment of PR/LFA reporting forms with DDMFs and the Rating Methodology;
- limited visibility on usage of funds at SR level;
- no forms / guidelines in languages other than English.
Objective of PU/DR revision: Facilitate country reporting and improve information basis to
support grant oversight, risk identification and disbursement decision-making.
In 2009/2010, a cross-functional working-group from the Secretariat worked on PU/DR revision. The final
forms and guidelines are a product of extensive internal and external consultations with PRs and LFAs,
including pilot tests in 6 countries.
Slide 6
Structure and contents of revised PU/DR
Evaluation of performance
2
1
Programmatic
Progress
Setting disbursement amount
3
Grant
Management
5
4
Total PR
Cash
Outflow
Enhanced
Financial
Reporting
(annual)
Procurement
and Supply
Management
Cash
Reconciliation
/DR
LFA Findings and
Recommendations
 Excel workbook in two chapters: ‘PR pages’ + ‘LFA pages’.
PR tabs Checklist
Slide 7
LFA tabs
6
Overall
Performance
Bank
Details
(discretio
nary use)
7
Cash
Request/
Final DR
Annex on SR
financials
(discretionary
use)
Overview of main modifications
Contents:
 Dedicated section on Procurement and Supply
Management (PSM).
 Extension of Secretariat’s grant rating
methodology to LFAs.
 Integration of Enhanced Financial Reporting
forms (once a year).
 New Annex on sub-recipient (SR) financial
information, for discretionary use with high-risk
grants and/or where SRs receive a substantial
proportion of funds (SR financial section is not
used in the period when the EFR is due).
 New Bank Account Details section – only to be
completed for split disbursements and for
cases where bank account details change
 Comprehensive guidelines for PR/LFAs based
on current policies and reporting requirements.
Slide 8
Usability:
 Improved structure.
 Form and guidelines in English,
French, Russian, Spanish.
PU/DR reporting timelines and rollout plan

Reporting schedule:


PR LFA : within 45 days from the end of the reporting period (60 days with EFR)
LFA  Global Fund: within 10 work days from the receipt of PR form (13 work
days with EFR)

Phased Rollout:


Optional submission of PU/DRs in new
format for reporting periods ending
before 30 June 2011;
Mandatory submission of PU/DRs in
new format for the period ending 30th
June 2011, and all subsequent
periods.
The new form and guidelines were distributed to all PRs and LFAs in FebruaryMarch 2011. Excel version of Grant Rating Tool was also shared with LFA.
Slide 9
LFA verification of PR reporting (1)
 LFA verification of PR reporting needs to be tailored to country and grant
risks.
 Approach to verification is recommended to be reviewed at least annually
and agreed upfront between the LFA and the Secretariat.
 The approach needs to take into consideration:
 risks identified in the LFA Country/PR Risk Assessment*
 PR/SR organization, operating characteristics, accounting and
control systems;
 role of SRs and SSRs in program implementation, and PR
systems for management and oversight;
 type of program activities financed by Global Fund, and inherent
risks involved;
 nature of program assets, liabilities and expenditures;
 knowledge from prior verification work.
* The ToR for the Country/PR Risk assessment is on our website under the section ‘Risk
Management’: http://www.theglobalfund.org/en/lfa/documents/
Slide 10
LFA Verification of PR reporting (2)
 Typical examples of verification procedures
which address identified risks (including
fraud):
 review of PR’s internal control
procedures;
 spot-checks of warehouse facilities,
service delivery points, bed-net
distribution, etc;
 expenditure review of specific SR
financials;
 verification of a larger sample of invoices;
 procurement reviews, e.g. tender
processes, procurement of vehicles;
 in-depth verification of high-risk activities
e.g. cash payments, per diems at training
events.
Slide 11
Completing the PU/DR forms, section by
section
Slide 12
Legend used for inputting tips/ functionality
Smiley face indicates fields
with drop-down pick-lists (easy
selection of specific options)
PR
Dropdown List
New fields in the revised
PU/DR forms colored yellow
in slide screen shots
New
Field
Pink shaded cells in LFA
sheets where LFA has
modified PR data
LFA
Blue shaded cells in the training
library indicate fields from which
data are automatically exported to
the corresponding LFA forms.
Grey shaded fields in LFA
forms, import data from
corresponding PR sheets.
Slide 13
Section 1: Programmatic Progress
Overview
 Covers reporting of progress for:
•
Impact/Outcome indicators (sub-section 1A) - important to record for grant
renewal decisions.
•
Programmatic Indicators (sub-section 1B)
•
Analysis of data quality and reporting issues (sub-section 1C) summarises
issues which may have impacted reporting on programmatic indicators.
 Only those Impact/Outcome indicators should be listed that are (1) due
for reporting and (2) reporting on which is overdue from the previous
periods. In contrast, all Programmatic indicators should be listed.
 Data on baselines and targets for all indicators should be taken from
the latest approved Performance Framework.
 Includes actual results, updates on data collection methods, and
comments on variance between intended targets and results.
Slide 14
PR_Programmatic Progress_1A (Impact/Outcome)
Inputting tips
i.e. quarter, semester,
annual, other
PROGRESS UPDATE
Progress Update Cycle:
Reporting Period:
Progress Update - Period Beginning
Covered:
Date:
DISBURSEMENT
REQUEST
Disbursement Request Cycle:
Disbursement Period:
Disbursement Request - Beginning
Period Covered:
Date:
The PU number is based on cumulative
PU/DR history, and should be sequential.
May not correspond to period numbers in
Performance Framework.
Number:
End Date:
This should be
PU number + 1
Number:
End Date:
This information is based on the
latest performance framework (PF).
These header fields export data
automatically to subsequent sheets
A. Impact / Outcome
Indicators
Impact /
Outcome
Select
Select
Select
Select
Slide 15
Indicator Description
Baseline
Report
Data
(if
Year of Intended
Actual
Due
Source of
applicable) Target Target
Result
Date
Results
Value Year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Values input by the PR will export to
LFA sheet. Any LFA verified
changes will turn relevant cell/s in
the LFA sheet salmon pink
Comments on results on
Impact/Outcome indicators
and data sources, and any
other comments
PR_Programmatic Progress_1B (Programmatic)
Inputting tips
B. Programmatic Indicators
Baseline
Objve Indicator
No.
No.
Indicator Description
Targets
cumulative Top
Tied To
?
10 ?
ValueYear
these values should
correspond to values in the
Performance Framework
Intended Actual
%
Reasons for
Target
Result achievement programmatic
to date to date
deviation
Is not calculated automatically.
Formula to be entered by PR/LFA
depending on the indicator value
type (numeric vs.
Numerator/Denominator/%)
X%
This may be recalculated in the
LFA sheet, based on
verified results
Slide 16
Section 1: Programmatic Progress
Important
Impact / Outcome Indicators
 PR should provide explanation in cases of delays in reporting or when there are changes
to the data source of results from the originally anticipated data source.
 The scope of LFA comments on Impact/Outcome indicators is limited to assessing status
of reporting on baselines and results (e.g. whether or not a behavioral survey has been
conducted) and verifying data source.
Programmatic Indicators
 % achievement of Programmatic indicators plays an
important role in disbursement decision-making.
 It is very important to explain well reasons for underperformance and outline the corrective actions. Significant
overperformance needs to be explained as well and, if
applicable, rationale for continuation of activities included.
 The LFA should comment on reasons for under-/overperfomance and corrective actions. Unlike the scope of
verification on Impact/Outcome indicators, LFAs are
expected to conduct a thorough assessment of
achievement of Programmatic indicators.
For further detail, refer to PU/DR guidelines Section 1.
Slide 17
Section 2: Grant Management
Overview
 Contains PR’s comments and LFA’s verification on:
 2A fulfillment of CPs and/or special conditions under the
grant agreement or subsequent implementation letters;
 2B progress on implementation of outstanding management
actions from previous disbursements;
 2C annual grant reporting requirements. Such as Enhanced
Financial Reporting (EFR) and PR Audit reporting.

Slide 18
Important: PU/DR reporting on CPs and SCs should cover the
conditions that are due for fulfilment or outstanding from previous
periods and not all conditions.
Section 2: Grant Management
Inputting tips
 The PR and LFA should include the precise
number of the CP as per the grant agreement/
Implementation letter, and for management actions
reference the date and # of GF management
letter/s.
 For unfulfilled management actions or conditions,
reasons should be clearly explained, and timelines
given for expected completion.
For further detail, refer to PU/DR guidelines Section 2.
Points for specific attention of PR, LFA and Secretariat (excerpts from the guidelines)

‘If a CP / special condition that was previously fulfilled is reopened due to new circumstances, and
the issue addressed by this condition is considered critical, the issue should be disclosed in the
LFA Findings and Recommendations Section. At the discretion of the FPM, the issue may be
followed up through the management actions assigned by the Global Fund to PR.’

‘Some special conditions may apply to more than one period of grant implementation (e.g.
condition on counterpart financing). Their fulfilment during one period does not automatically imply
fulfilment in subsequent periods. The LFA will verify that the status of such conditions is reported by
the PR during each period concerned.’
Slide 19
Section 3A: Total PR Cash Outflow
Overview
 Update on PR’s actual expenditure against budget, for the period covered
by the progress update, and cumulatively from beginning of grant.
 Financial data disaggregated by:
 PR’s total expenditures;
 disbursements to sub-recipients (but not SR expenditures!);
 medicines and pharmaceutical products;
 health products and health equipment.
 Explanations of variances between actual expenditure against budget.
Explanations of variances in each PU/DR and reconciliation vs. EFR data,
on an annual basis, are crucial in disbursement decision-making.
 The PR should provide a cash flow statement, the Statement of Sources
and Uses of Funds (SSUF), along with the PU/DR.
 The SSUF should reconcile with figures reported in this section, and
section 5A_Cash Reconciliation.
Slide 20
Section 3A: Total PR Cash Outflow
Important
 Actual expenditures should be reported on a cash basis i.e. based on
timing of cash inflow/outflow, regardless of when goods or services
are received/delivered.
 Total Pharmaceutical and Health Product expenditure should be
based on payments to suppliers both at the PR and SR levels,
including any direct payments made by the GF on behalf of the PR
(incl. VPP)
 Expenditures are those incurred during the current reporting period
and cumulatively since the beginning of the program. Special cases:

SSF grants: PR should report any remaining expenditures related to
liabilities assumed by the constituent grants and which has not been not
reported in the last PU/DR of the constituent grant. Cumulation of budgets
and expenditures should start from zero from the SSF start date.

RCC grants: PR should not cumulate previously reported Phase 1 and
Phase 2 financial information but report from the beginning of RCC.
 Eligible expenditures include those incurred during the grant term, in
line with the grant agreement, approved budget, procurement and
supply management (PSM) plan, M&E plan, and grant closure plan,
or as otherwise agreed in writing by the Global Fund.
For further detail, refer to PU/DR guidelines Section 3A.
Slide 21
PR_Total PR Cash Outflow_3A
PR Inputting tips
Actual
Please select currency used Budget
Cash
under tab
for
Outflow
Variance
PR_Programmatic Progress Reporting
for
_1A
Period Reporting
Period
1. Total PR cash outflow vs.
budget
0
0
1a. PR's total expenditures
0
to the latest
approved budget amount, as per
Grant Agreement or
Actual
ImplementationBudget
Letter Cash
2b. Health products and
health equipment
Slide 22
0
0
Cumulative
Actual Cash
Outflow
Variance Reason for Variance
through period
of Progress
Update
0
0
Cumulative amounts should reflect
0
amounts from the beginning of the
program, or RCC, or the beginning of the
current implementation period
for
0
consolidated grants
0
for
Outflow
Variance
Reporting
for
Period* Reporting
Period
2a. Medicines and
pharmaceutical products
0
0
1b. Disbursements
to subShould correspond
recipients
2. Total pharmaceutical &
health product expenditures
vs. budget
Reason for
Variance
Cumulative
Budget
through
period of
Progress
Update
Reason for
Variance
0
Based on payments to suppliers.
0
Include any direct payments made
by the GF to suppliers on behalf of
the PR (including Voluntary Pooled
0
Procurement - VPP)
Cumulative
Budget
through
period of
Progress
Update
0
Cumulative
Actual Cash
Outflow
Variance Reason for Variance
through period
of Progress
Update
0
0
‘0’ fields in grey are automatically
calculated based on inputs rows
0
1a. 1b. 2a. and 2b …
0
Section 3B: EFR + Annex on SR Financials
Overview
The EFR (completed annually):
 is integrated into PU/DR forms to encourage the use of annual expenditure
data (with breakdown by categories) in disbursement decision-making.
 now also includes a breakdown of PR disbursements to each SR (Part E).
 Data collected through the EFR enables linking financial and programmatic
performance, and tracks SR spending against budgets.
Annex on SR financials:
 Provides summary of budgets, disbursements and expenditures by SR and
reasons for significant variances and LFA comments on PR's overall
verification efforts relating to SRs.
 PR should complete this Annex only upon the Secretariat’s request. Use of
this Annex is at the discretion of the FPM/Country Team and is recommended
for high-risk grants, or grants where SRs receive a substantial proportion of
funding.
Slide 23
Section 3B: Enhanced Financial Reporting
Inputting Tips

PR/LFA should remove the disease specific
EFR tabs which are irrelevant to the grant
undergoing reporting.

The EFR review by the LFA is a review of the
process, assumptions and supporting
documentation used by the PR to complete the
EFR, and explanations on variances (same
template as before). The LFA should input its
review of the EFR form, under tab LFA_EFR
Review_3B.

For detailed guidance on completing the EFR
form/template, please see:
http://www.theglobalfund.org/documents/lfa/
VerificationOfImplementation/GuidelinesForCom
pletingTheEFR.pdf
Slide 24
PR_Total PR Cash Outflow_3A
Values in Total PR Cash Outflow, to be consistent with EFR tab
Actual
Please select currency used Budget
Cash
under tab
for
Outflow
Variance
PR_Programmatic Progress Reporting
for
_1A
Period Reporting
Period
Reason for
Variance
Must be equal to total cumulative
budget
in 0table A in 0EFR form
0
1. Total PR cash outflow vs.
budget
Cumulative
Budget
through
period of
Progress
Update
0
Cumulative
Actual Cash
Outflow
Variance Reason for Variance
through period
of Progress
Update
0
Must
1a. PR's total expenditures
be equal to total cumulative
0
disbursements in table E in EFR form
1b. Disbursements to subrecipients
Reason for
Variance
2. Total pharmaceutical &
health product expenditures
vs. budget
2a. Medicines and
pharmaceutical products
2b. Health products and
health equipment
Slide 25
0
Is not expected
to match with
Cash outflow (section 3A) as the
latter shows
disbursements to
0
SRs, but not SR expenditure.
0
Actual
Budget
Cash
for
Outflow
Variance
Reporting
for
Period* Reporting
Period
0
Cumulative
Budget
through
period of
Progress
Update
0
Must0 be equal0 to cumulative
budget and
expenditure respectively, for Medicines and
Pharmaceutical products in table A in EFR form
0
Cumulative
Actual Cash
Outflow
Variance Reason for Variance
through period
of Progress
Update
0
0
0
0
0
0
Must be equal to cumulative budget and
expenditure respectively, for Health Products
and health equipment in table A in EFR form
New: Annex - SR Financials
Annex to PU/DR - Sub-recipient financial information - FOR DISCRETIONARY COMPLETION, UPON THE SECRETARIAT'S REQUEST
Has the Secretariat requested the PR to complete this Annex for this reporting period?
Grant number:
Progress Update - Reporting Period:
Progress Update - Period Covered:
Progress Update - Number:
Currency:
Name of Entity
Date of Most
Recent
Disbursement to
SR
0
Cycle:
Beginning Date:
0
Budget for
Reporting
Period*
Select
0-Jan-1900
Disbursed during
Reporting Period*
Number:
End Date:
0
0-Jan-1900
Cumulative
Budget
Cumulative Disbursed
through period
through period of this
of this
Progress Update*
Progress
Update*
Variance
Cumulative Actual Cash balance at between Latest
PR's explanation of variance (1) between cumulative budget and
Expenditure
the end of the
Cumulative
cumulative expenditure and (2) between cumulative disbursement
through period period covered by Expenditure
and cumulative expenditure (mandatory for amounts above $50,000 or
covered by this
this Progress
Reported and
equivalent and with more than 10% variance)
Progress Update
Update
Cumulative
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
• Date and amount of the latest disbursement to Sub-recipients
• Cumulative budgets, expenditures and disbursements by SR through the end of the reporting period
• Explanation of significant variances (1) between cumulative budgets and expenditures and (2) between cumulative
disbursements and cumulative expenditures.
• Cash balance through the reporting period.
• When the number of SRs is significant (over 10), SRs with smaller budgets (less than 50,000 USD or its equivalent) do
not have to be reported separately but can be grouped together as « other SRs ».
Slide 26
Section 4: Procurement and Supply Management
Overview

This section covers verified information on products actually received by the PR
(during the reporting period and cumulatively) vs. value as stated by the PR in the
Global Fund’s online Price and Quality Reporting (PQR) system.

Update of information held in the PQR system, by the PR, is a pre-requisite for
any disbursement decision. The PR is ultimately responsible for the accuracy and
completeness of data entered.

This section also includes a brief update on risks of stock-outs at central level of
the grant, and challenges and other issues related to PSM of pharmaceuticals
and health products.

The LFA must systematically verify completeness of cumulative amounts entered
by the PR in the PQR based on products received since January 2011 and
comment on variances found between the values of actual receipts, against those
reported by the PR in the PQR
For further detail, refer to PU/DR guidelines Section 4.
Slide 27
Price and Quality Reporting (PQR)
Overview
 The PQR tool is a web-based system, used by the Global
Fund to collect transaction level procurement information.
 The pharmaceuticals and health products to be reported in the
PQR include:
 pharmaceuticals: antiretrovirals (ARVs), antimalarial and anti-TB
medicines;
 health products: insecticide-treated nets (ITNs), long-lasting
insecticidal nets (LLINs), condoms and rapid diagnostic tests.
 The PQR is not an accounting tool. What the PR actually pays
for during a given period (reported in Section 3 of the PU/DR),
may not correspond to consignments received during the
same period (reported in the PQR). The LFA verifies
significant differences, backed with supporting documentation.
 If data entered are based on a cost estimate, or pro forma
invoice and the final invoice differs significantly from the data
entered originally i.e. over 5% difference in unit costs, the PR
should update data in PQR based on the final invoice.
 For guidance on using the on-line Price and Quality Reporting
(PQR) tool: http://www.theglobalfund.org/en/procurement/pqr/
Slide 28
Section 4: Procurement and Supply Management
LFA inputting tips



Slide 29
The LFA should make sure the PR has fully completed
the PQR by going through all consignment documents,
noting any invoices not included, verifying unit prices
given, and explaining major variances in values.
In grants with a major procurement component, and in
cases where major risks are present, the LFA should
describe the risks in the Findings and
Recommendations section, and make actionable
recommendations to improve forecasting and
procurement.
Data on value of products received (from January
2011 onwards) required to complete the LFA table,
can be found in:
 original invoices/shipping documents for goods
received, supplied by the PR.
 the PQR system itself (once verified), through
creation of on-line reports covering a specified
period.
LFA_Procurement Info_4
Inputting tips
PR's
LFA's
response response
1a. Has the PR updated the Price
Quality Reporting (PQR) with the
required information…
YES, NO or N/A
1b. Value of Pharmaceuticals and Health Products
in the PQR (6 categories only)
LFA selects currency based
on currency used in majority
of invoices
Reporting
Currency
PQR Product
Categories
Value of
products
received
during
reporting
period
LFA to verify what
was actually received
based on invoices/
shipping documents
Slide 30
Value of products
entered by the PR
and verified as
correct by the
Variance
LFA in the PQR
during reporting
period
Cumulative
Cumulative
value of
value of
products
Reason for
products
verified as
Variance
received since correct by the
Jan 2011 LFA in the PQR
since Jan 2011
Left empty if no products
received during current
reporting period
Variance
Reason for Variance
Data in columns
shaded red taken are
obtained from on-line
PQR system
.
LFA Findings and Recommendations
Overview
 This section documents issues and recommendations in five key
functional/management areas:
1.
2.
3.
4.
5.
program management (including management of SRs);
financial management and systems;
monitoring and evaluation;
pharmaceutical and health product management;
other management issues, such as PR capacity to generate quality reports.
 LFA should include important issues identified in each functional area and an analysis
of their immediate or anticipated adverse impact on program implementation. (ref. Step
2 of Grant Rating Methodology, PU/DR guidelines Annex 2).
 An issue is classified as “important” if it impacts or is likely to impact program implementation
and results.
 The FPM/Country Team will carefully consider, and comment on LFA
recommendations in the final column of this form.
 Instead of repeating detailed information documented in other sections (especially that
provided in LFA_Grant Management_2), it is acceptable to summarise issues and
cross-reference detailed information in other sections.
For further detail, refer to PU/DR guidelines Section ‘LFA-specific Section: LFA Findings
and Recommendations.
Slide 31
LFA_Findings&Recommendations
Inputting tips
Functional Areas
Description of Identified
Issues
(in order of importance)
Drop-down pick-list reflects
five functional areas, as per
previous slide.
Pharmaceutical
& health product
management
In grants with a major procurement
component, absence of tracking
systems for pharmaceuticals and
health products should be identified
as an important management issue
Slide 32
LFA Recommendations
(in order of importance)
FPM Comments
(to be completed upon
receipt of the LFAverified form)
Recommendations should be relevant,
specific and actionable by the PR
within a reasonable timeframe.
Section 5A: Cash reconciliation
Overview
 Provides information on changes in PR’s cash position
based on:
 cash disbursed to PR, or payments made to third parties by
Global Fund on PR’s behalf;
 PR expenditures and disbursements to SRs;
 other income received and net exchange rate gains or losses
during the reporting period.
 Cash balances should cover all grant funds held by PR, or
on behalf of PR, in all bank accounts owned and/or used
by the PR, regardless of the currency denomination and
physical bank location, including any grant funds held with
fiduciary agents.
 The PR must also submit a Statement of Sources and
Uses of Funds (SSUFs), linked to Sections 3 and 5.
For further detail, refer to PU/DR guidelines Section 5A
Slide 33
LFA_Cash Reconciliation_5A
Inputting tips
A. LFA-VERIFIED CASH RECONCILIATION FOR PERIOD COVERED BY PROGRESS UPDATE
Add:
PRLFA-verified LFA Comments (if amounts are different from those
reported
amounts
reported by the PR)
amounts
1. Cash Balance: Beginning of period covered
by Progress Update
Corresponds to actual amount disbursed
by the GF. Any associated bank fees are
NOT deducted at this stage. If GF
disbursement is received after the end
date of reporting period, enter this in
Section 5B line 5 as ‘cash in transit’
2. Cash received by the PR from the Global
Fund
3. Cash disbursed to third parties by the
Global Fund on behalf of the PR
4. Interest received on bank account
5. Revenue from income-generating activities
6. Other income, if applicable (e.g. income
from disposal of fixed assets, tax refunds)
US$ 52,793 is not the PR's ‘
Less:
0
7. Total PR cash outflow
460,371
8. Net exchange rate gains/losses
Gains shown with minus sign, losses shown
with plus. It is recommended funds be held
in grant currency up to point of utilization,
where local currency is devaluing.
9. Reconciliation adjustments
10. Cash Balance:
Slide 34
usually exceptional, such as
corrections for past periods.
Section 5B: Disbursement Request
Overview
 The disbursement request is based on forecasted expenditure for the period
immediately following the progress update ( + extra ‘cash buffer’ period) and
funds available from previous disbursements.
 Forecasted expenditures should be prepared taking into account:
 Program’s absorption capacity,
 Changes in the workplan,
 Changes of unit costs,
 Cash balance at SR level,
 Financial commitments,
 Macro-economic factors (e.g. exchange rate, inflation rate)
 Significant variances between the initial budget and forecasted expenditure
should be explained in light of the factors above and other factors, as applicable.
 The PR’s disbursement request is automatically adjusted taking into account the
PR’s cash balance and ‘cash in transit’.
 Important: Additional buffer can be requested by the PR if the next PU/DR report
is due to include an EFR, or Annex on SR financials, or any other GF
requirement which cannot be delivered within 45 days. An agreement in principal
for requesting this buffer should be obtained from the FPM in advance.
Additional buffer is not an entitlement. Decision on disbursing the additional
buffer will be made upon the PU/DR review.
For further detail, refer to PU/DR guidelines Section 5B.
Slide 35
LFA_Disbursement Recommend_5B
Inputting tips
B. LFA-RECOMMENDED DISBURSEMENT
AMOUNT AND EXPLANATIONS
1. Period
1-Aprbeginning date: 2010
Dates
Normal cash buffer of 3 months.
2a. Cash buffer
period
Period
beginning:
Approved budget
end
30-Sepamount (reported
date:
2010
by PR):
LFA-verified
approved budget
amount:
calculated automatically.
1-Oct2010
2b. Additional
Cash buffer
Period
beginning:
31-Dec2010
649,447
Approved budget
end
31-Decamount (reported
2010qualifies
byto
PR):
Ifdate:
the grant
request an additional
Forecasted
amount
(reported by
PR):
LFA-adjusted
forecasted
amount:
PR Total
Forecast
Forecasted
amount
(reported by
PR):
the
buffer,
PR should select the number of months (between 1
and 3 months) for which the request is made.
end
date:
LFA-verified
approved budget
amount:
LFA-adjusted
forecasted
amount:
PR's explanation of variance
between forecasted amounts and
amounts originally budgeted.
LFA's explanation of any significant
variance between forecasted
amounts and amounts as originally
budgeted.
Slide 36
Explanations of major variances
in budget vs. forecasted
amounts are crucial.
LFA Total
Forecast
Section 6: Overall Performance
Overview
 PR’s self-evaluation of grant performance to date is a holistic assessment of
grant’s performance, ideally a combination of quantitative ratios and qualitative
information such as:

cumulative burn/execution rate for the grant;

cumulative disbursement amounts against targets;

programmatic achievement (on all indicators, on Top 10 indicators);

qualitative overview, indicating areas of strongest and weakest performance;

management issues in different functional areas;

any major risks which could compromise the program implementation going forward.
 PR/LFA comments on planned changes to the program, and external contextual
factors beyond control of PR that have impacted or may impact the program
performance.
 LFA’s overall evaluation and rating of grant performance should be based on Steps
1-3 of the Global Fund’s Grant Rating Methodology and PR’s comments.
Slide 37
Section 6: Overall Performance
A. Overall Evaluation and Rating of Grant Performance (including a summary of how financial performance is linked to
programmatic achievements)
Any major management
Indicator
e.g. A2
issues resulting in
YES,NO,
Overall
e.g. A2
rating
downgrade?
N/A
Grant Rating
The Indicator rating corresponds with Step 1
of the Grant Rating Methodology, Annex 2.
B. LFA comments on PR planned changes in the program, if any
There should be no difference between
the two ratings, unless major
management issues were identified by
the LFA in Section 2
The Overall Grant Rating as per
Step 3 of the Grant Rating
Methodology (ref. Annex 2 of
PUDR guidelines). Critical
management issues, based on
LFA findings section, are taken
into account [here].
C. LFA Comments on External Factors Beyond Control of the Principal Recipients that have impacted or may impact
program
Slide 38
Section 7: PR_Cash Request/
LFA_Disbursement Recommendation
Overview
 Part A consists of the LFA’s recommended disbursement
amount, and whether it is within the indicative
disbursement range, based on the LFA’s overall grant
rating. If outside the ranges, a rationale for
disbursement to be provided.
 Part B - a check-list of verifications carried out by the
LFA.
 Part C - PR bank details, in case of changes or split
disbursements.
 Part D - a summary of the LFA’s verification approach in
the current PU/DR review driven by the general
approach agreed upfront between the LFA and the
Secretariat based on country/grant risks.
Slide 39
Indicative Disbursement Ranges
 The principle of Performance-Based Funding links grant performance
(overall grant rating) to funds disbursed (indicative disbursement range).
 Like the Indicator Rating, the Disbursement Range is indicative. Final
disbursement amounts may lie outside the indicative range due to a number
of factors identified by the Country Team.
INDICATIVE DISBURSEMENT RANGES
Overall Grant Rating
Cumulative Disbursed Amount (after the disbursement)
A1
Exceeding expectations
Above 95% of cumulative budget through next reporting period
A2
Meeting expectations
Between 105-85% of cumulative budget through next reporting period
B1
Adequate
Between 55-95% of cumulative budget through the reporting period
B2
Inadequate but potential demonstrated
Between 25-65% of cumulative budget through the reporting period
C
Unacceptable
Below 35% of cumulative budget through the reporting period
Slide 40
LFA_Disbursement Recommendation_7
Inputting tips
Overall
Rating
Imported from Section 6
A2
Indicative disbursement ranges by performance rating
Performance rating
Range for cumulative disbursement amount
Exceeding expectations
Above 95% of cumulative budget through the next reporting period Imported from PR_Cash
Request_7A_B
Meeting expectations
Between 85-105% of cumulative budget through the next reporting period
Adequate
Between 55-95% of cumulative budget through the next reporting period
Inadequate but potential
B2
demonstrated
Between 25-65% of cumulative budget through the next reporting period
C This
Unacceptable
Below 35% of cumulative budget through the next reporting period
data is input manually based
A1
A2
B1
on "Disbursements in detail report
1. Cash amount requested by the Principal Recipient from the Global Fund for next disbursement
(PDF)"
atadditional quarter (amount in: please select currency in 'PR_Section 1A')
period
plus one
http://www.theglobalfund.org/docum
ents/disbursementdetails.pdf
Imported from LFA
tab_5B
2. LFA disbursement recommendation (amount in: please select currency in 'PR_Section1A')
Cumulative budget through
the next period of
implementation (including
the buffer)
Cumulative
disbursed
amount to date
(*)
3,150,520
Cumulative disbursed
after recommended
disbursement (including
the buffer)
1,044,934
% range
Slide 41
8,755,066
One million, forty two
thousand, nine hundred
and thirty four USD
State the amount in words
Is the recommended
disbursement within the
range?
Yes
Sum of these =
10,000,000
Three million, one hundred
and fifty thousand, five
hundred and twenty USD
9,800,000
98%
Conclusion
 Quality of PU/DRs submitted to the Secretariat has a direct
impact on the speed of disbursement processing and
disbursement amounts.
 Timeliness of PU/DRs is important for ensuring continuous flow
or funds and uninterrupted program implementation.
 For staff involved in preparation of PU/DR it is very important to
read and follow the guidelines.
 Wherever relevant, please inform SRs in advance of the changes
and expectations in terms of reporting.
 Please communicate proactively any training needs related to
reporting requirements to the FPM / PO / Country Team
members.
Slide 42
PU/DR – Frequent errors and omissions
■
Lack of relevant Impact / Outcome indicators.
■
Inconsistencies in the way results are reported vis-a-vis the way targets are set (cumulation type,
‘tied to’).
■
Errors in calculation of performance for results reported as Numerator / Denominator / Percentage
e.g.
■ Indicator: Number and % of health facilities submitting completed and timely reports.
Target: 90/100 (90%). Correctly reported result - 80/100 (80%). Performance: 80%/90% = 89%.
Cible: 90/100 (90%). Incorrectly reported result - 80/90 (89%). Performance: 89%/90% = 99%.
■
Insufficient explanation of causes of weak indicatorperformance, as well as indicators significantly
exceeding their targets (is there Value for Money to continue these activities?)
■
Lack of information on corrective actions to improve indicator performance.
■
Inconsistency / lack of links between programmatic and financial information in PU/DR.
■
Weak explanation of variances between expenditures vs. budgeted amounts.
■
Weak justification of significant differences between forecasts vs. budgets. Often, forecasted
expenditure is not done based on up-to-date workplans, as it should be, and does not take into
account cash balances at the SR level.
■
Insufficient attention given to fulfilling conditions and management actions.
■
Weaknesses in completing Overall Performance.
Slide 43
Some completed examples of
the form
The following handouts are intended as an additional resource for use in
workshop settings, and/or self study. They consist of completed
examples of selected pages from the PU/DR form.
Completed examples can be used to:
 illustrate appropriate (or inappropriate) completion of specified fields.
 check for understanding, and highlight learning points.
 stimulate discussion and elicit additional examples, based on
participant’s own grant data.
PR_Programmatic Progress_1A
Completed example
A. Impact / Outcome
Indicators
Impact /
Outcome
Impact
Slide 45
Indicator Description
% of adults and children with HIV still
alive 12 months after initiation of
antiretroviral therapy (extend to 2, 3,
5 years as program matures)
Baseline
Comments on results on
(if applicable) Year of Intended Report Actual Data Source Impact/Outcome indicators
Target Target Due Date Result of Results and data sources, and any
Value Year
other comments
National
Statistics
Dirctorte
74.00
2001
2007
95.85
03/31/10
93.9 AIDS
clinical
care
database
The target set is slightly
under achieved. A total of
882 PLWHA out of 939
who initiated therapy
between 1/Jan/2008 and
1/Dec/2008 were still alive
and under treatment a
year later, i.e. as of
31/Dec/2009. Among
adults, the percentage
stands at 93.88 (875/932);
and among children, 100
(7/7).
The denominator includes
people who initiated
therapy in the period and
died by the end of 2009.
Sources of data are the
National Statistics Division
at MINSAP and the
Ficticia Institute.
LFA_Programmatic Progress_1A
Completed example
A. Impact / Outcome
Indicators
Impact /
Outcome
Impact
Slide 46
Indicator Description
% of adults and children
with HIV still alive 12
months after initiation of
antiretroviral therapy
(extend to 2, 3, 5 years
as program matures)
Year of
Target
2007
Actual
Intended
Result
Report Due
Target
(as
Date
reported
by PR)
95.85
03/31/10
93.90
LFA comments on (a) verified
result, (b) source of
information used by the PR to
Data Source Verification Verified report results, including the
of Results
Method
Result
status of completion of
surveys and other methods to
measure Impact/Outcome, as
applicable,
Other … on
site visit to
*** Institute,
Other (type
and national
as
surveillance
appropriate)
system
National
databases,
Statistics
including
Directorate,
the clinical
AIDS
care (HMIS)
clinical care
database in
database
MS Access,
called
SIDATRAT.
94
Indicator was calculated and
reported following UNGASS
Guidelines... We consider the
program has reached the target
set i.e. 98% of target
(calculated as 94% actual
against 96% target). These high
results are in line with universal
ARV access targets for Country
X, which moreover reports high
rate of adherence for ARV
treatment (only 2%
abandonment). LFA compared
the verified result (94%) against
that reported in UNGASS
country report for the same
year , which was 94,9%. Minor
difference due to deaths notified
after copy deadline for
UNGASS report.
PR_Programmatic Progress_1B
Completed example
B. Programmatic Indicators
Targets
Objective Indicator
Top
Indicator Description Tied To cumulative?
No.
No.
10 ?
Baseline
(if applicable)
Value
Year
Intended
Target
to date
Actual
Result
to date
Reasons for
programmatic
%
deviation from
achieveintended
target and
ment
deviations from the
related workplan
activities
Calculated in this example as
actual result reported by PR/intended
target x 100 = 98.4%
3
Slide 47
1
Number of social
market condoms
distributed in the
City of La Cuidana
and in 18
surrounding
municipalities
Current
grant
Y-over
RCC
term
Yes 338,64480 2008 1,447,000 1,424,864
98%
The target is met.
A total of 1,195,172
condoms were
supplied from the
central storage
facility to the City of
Cuidana and
municipalities in this
quarter, totaling
1,424,864. There
are 1,244,800 units
still to be sold under
social marketing, out
of 2,669,664
condoms that have
been received to
date. Out of this
total, 245,271 units
have been sold.
LFA_Programmatic Progress_1B
Completed example
B. Programmatic Indicators
Objec Indica
No. tor No.
3
1
Slide 48
Indicator
Description
LFA analysis on progress
Actual
Targets
Intended
Verific
%
to date and any variance
Result
cumulative
Target
ation Verified achieve
between targets and
Tied to
Top 10 ?
to date
?
to date
Metho Result
ment
results, and any other
(reported by
(from PF)
d
comments
PR)
Number of
social market
condoms
distributed in
PR
Y-over
Yes Current
the City of La grant
OnRCC term Top 10
Cuidana and
site
in 18
Visit
surrounding
1,447,000 1,424,864
municipalties
759,584
52%
The difference between
result reported by the PR
and verified result is due
to condoms distributed
using Round 6 grant
funds. A total of 665,280
condoms have been
adjusted in the results for
this RCC grant, as these
were 'borrowed' from
Round 6. The condoms
reported are those
distributed from central
warehouse to provincial
warehouses.
Section 2: Grant Management
Completed example, management actions
Global Fund Management Actions
PR will submit a report on use of revenues
from condom sales every six months, not later than
15 May 2010, along with the next progress report.
PR Comments on Progress of Implementation
In process. A local consultant was hired to develop a data collection
system for condom-distribution-related expenses. A first report including
the diagnosis conducted has already been prepared and is attached to
this progress report. The system is expected to become operational at
the beginning of the next semester.
PR data exported
to LFA sheet
Global Fund Management Actions
PR will submit a report on the use of revenues from
condom sales every six months, not later than 15
May 2010, along with the next progress report.
Slide 49
LFA Review of PR Progress on Global Fund Management Actions
There were delays in the selection of the local consultant, who will be
responsible for identifying expenditures related to condom
transportation, handling and storage, and designing a methodology for
verifying these expenses. In addition, as the report on utilization of
revenues obtained through social market condom sales will be
semestral, reporting should commence next quarter i.e. the end of the
first semester during which this system is due to be operational.
LFA_Total PR Cash Outflow_3A
Completed Example
Note: Section on Disbursements to SRs has been excluded in this example
LFALFA-Verified
Verified
All amounts Budget for
Actual for
are in: USD Reporting
Reporting
Period
Period
1. Total cash
outflow vs.
budget
1a. PR's total
expenditures
Slide 50
264,195
91,128
Variance
407,578 -143,383
130,993
-39,865
LFA Analysis of
Variance
LFAVerified LFA-Verified
Variance
Cumulative
Actual
Budget
LFA Analysis of Variance
7,200,000 4,000,000 3,200,000
The variance relates to
overspending on
salaries due to certain
HR costs related to
current quarter being
mistakenly included in
the next implementation
quarter as part of the
approved budget. This
mistake has been
3,774,068
pointed out to the PR
and will be corrected at
time of the next
implementation letter.
However, the mistake
does not affect the total
amount budgeted for
HR costs in this grant as
it is merely a shift
between periods.
The underspending vs budget
is made up of the following
variances:
HR 100k - underspending due
to late hiring for ten positions
(net of budget mistake
identified in current period)
3,417,384
356,684
Training (20k) – overspending
due to higher fuel costs and
increase in per-diems as per
new government circular
M&E 277k – underspending
due to more efficient
organization of supervision and
quarterly review meetings
LFA_Procurement Info_4
Completed example
PR's
LFA's
response response
Has the PR updated the Price
Quality Reporting (PQR) with the
required information…?
N/A
N/A
No products received during the reporting period, which had to be included in
the PQR.
Reporting
Currency
PQR Product
Categories
4. Condoms
Slide 51
Value of
products
received
during
reporting
period
Value of products
entered by the PR
Variance
and verified as
correct
Cumulative
value of
Reason for
products
Variance
received since
Jan 2011
Cumulative
value of
products
verified as
correct
Variance
Reason for Variance
The cumulative value of
products received includes
figures reported in PU/DR;
cumulative value of products
verified reflects figures reported
in the PQR. The amount of
USD201K (voucher 41288) in
201,471.80 183,201.90 18,269.90
the PU/DR corresponds to the
value of condoms and lubricants
received. Since lubricants
valued at USD18K do not have
to be reported in the PQR, the
amount reported in the PQR
reflects verified value of
condoms received.
LFA_Cash Reconciliation_5A
Completed Example
A. LFA-VERIFIED CASH RECONCILIATION FOR PERIOD COVERED BY PROGRESS UPDATE
PRLFALFA Comments (if amounts are different from those
reported verified
reported by the PR)
amounts amounts
1. Cash Balance: Beginning of period covered
by Progress Update
111,887
111,887
2. Cash received by the PR from the Global
Fund
3.Cash disbursed to third parties by the
Global Fund on behalf of the PR
4. Interest received on bank account
5. Revenue from income-generating
activities
1,387,644 1,387,644
0
50,000
320
320
25,000
20,000
6.Other income, if applicable (e.g. income
from disposal of fixed assets, tax refunds)
52,793
7. Total PR cash outflow
-460,371
-407,578
8. Net exchange rate gains/losses
-15,000
9. Reconciliation adjustments
10. Cash Balance:
Slide 52
20,000
1,064,480 1,220,066
The Global Fund has disbursed directly to GLC $50,000 during
the period covered by this cash reconciliation.
Condom sales. However, the PR has incorrectly included
revenues from the sale of ACTs (this is an HIV grant)
The PR has received a VAT tax refund which was duly
recorded in the cash book, but inadvertently omitted it from this
cash reconciliation. This VAT refund relates to the previous
period in which the same amount was included as
expenditures. Cumulative expenditures to-date should be
reduced by the same amount.
The difference is due to GF not approving the purchase of
additional vehicles in excess of budgeted quantities.
The PR has lost in USD terms due to the depreciation of the
local currency vs the USD (PR keeps cash balances in local
currency).
$20,000 are savings from previous periods which should be
refunded by the procurement agent.
LFA_Disbursement Recommend_5B
Completed example
10. Period
beginning date:
11. Additional
quarter
(cash
"buffer")
beginning date
(3):
1-Apr2010
end date:
30-Sep2010
Approved budget
amount (reported
by PR):
LFA-verified
approved budget
amount:
2,200,000
2,000,000
2,110,000
PR Total
Forecast
1-Oct2010
end date:
31-Dec2010
Approved budget
amount (reported
by PR):
LFA-verified
approved budget
amount:
PR's explanation of any
significant variance between
forecasted amounts and amounts
as originally budgeted.
LFA's explanation of any
significant variance between
forecasted amounts and amounts
as originally budgeted.
Slide 53
2,000,000
Forecasted
amount
(reported by
PR):
LFA-adjusted
forecasted
amount:
2,000,000
Forecasted
amount
(reported by
PR):
2,215,000
4,215,000
LFA Total
Forecast
600,000
LFA-adjusted
forecasted
amount:
155,000
2,265,000
The forecast is based on approved and budgeted activities, including certain adjustments
mainly for exchange rate impact, unspent funds from previous quarters and some reallocations. See attached workings, Example Sheet A.
The forecasted amount proposed by the LFA, including a reconciliation versus PR’s
workings, is included in attached Example Sheet A.
Section 6: Overall Performance
Completed example
Section 6: LFA EVALUATION AND COMMENTS ON OVERALL PERFORMANCE
A. Overall Evaluation and Rating of Grant Performance (including a summary of how financial performance is linked to
programmatic achievements)
Any major management
Indicator
issues resulting in
Overall Grant
rating
A1
downgrade?
No
Rating
A1
Overall performance for this RCC program term is excellent, reaching a mean achievement rate of 113% for all Service
Delivery Area indicators, and 98% for Top Ten/ To Ten equivalent indicators. However, Top Ten indicator 'Number of
condoms distributed for free in the City of La Cuidana and surrounding provinces‘ remains below target. The results
reported for this indicator were adjusted by LFA, as PR reports for this quarter, erroneously relate to condoms purchased
under the Round 6 grant. In addition, distribution of condoms under the RCC term is based on installation and use of
special dispensers, in new sites. The special dispensers have not yet been procured or installed.
In contrast to programmatic achievement, financial absorption rate is not so high, at 74% cumulatively, since the start of
the RCC program term. This is due to: savings in acquisition of condoms and lubricants at lower prices and delays in
procurement of dispensers; delays in procurement of health equipment associated with Health Systems Strengthening
(HSS) and the indicator 'Number of people reached in health services upgraded to include PLWHA care.‘ This indicator
nonetheless exceeded programmatic targets, due to the fact that, of four out of six health centers which were upgraded,
additional PLWHA patients were reached than originally targeted, in those sites. These results more than compensated for
the two health centers which have not yet been upgraded, and where clinical care specific to PLWHA, remains limited.
B. LFA comments on PR planned changes in the program, if any
There are no planned changes to the program, and none required.
C. LFA Comments on External Factors Beyond Control of the Principal Recipients that have impacted or may impact
program
The economic situation in County X is critical. Expected GDP for 2009 was 6%; in reality it dropped to 1.4% The country is
experiencing difficulties in cancelling financial commitments. The foreign embargo continues to cause delays in
Slide
54
procurement
processes.
LFA_Disbursement Recommendation_7
Completed example
Overall
Rating
A2
Indicative disbursement ranges by performance rating
A1
A2
B1
B2
C
Performance rating
Range for cumulative disbursement amount
Exceeding expectations
Meeting expectations
Adequate
Inadequate but potential
demonstrated
Unacceptable
Above 95% of cumulative budget through the next reporting period
Between 85-105% of cumulative budget through the next reporting period
Between 55-95% of cumulative budget through the next reporting period
Between 25-65% of cumulative budget through the next reporting period
Below 35% of cumulative budget through the next reporting period
1. Cash amount requested by the Principal Recipient from the Global Fund for next disbursement
period plus one additional quarter (amount in: please select currency in 'PR_Section 1A')
2. LFA disbursement recommendation (amount in: please select currency in 'PR_Section1A')
Cumulative budget through
the next period of
implementation (including
the buffer)
Cumulative
disbursed
amount to date
(*)
Cumulative disbursed
after recommended
disbursement (including
the buffer)
3,150,520
1,044,934
% range
10,000,000
8,755,066
Slide 55
9,800,000
One million, forty two
thousand, nine hundred
and thirty four USD
State the amount in words
Is the recommended
disbursement within the
range?
Yes
Sum of these =
(*)This data can be obtained from the "Disbursements in detail report (PDF)"
(http://www.theglobalfund.org/documents/disbursementdetails.pdf)
Three million, one hundred
and fifty thousand, five
hundred and twenty USD
98%
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Phase 2 introduction - The Global Fund to Fight AIDS