Local Fund Agent (LFA)

Local Fund Agent (LFA)

What is the LFA?

The Global Fund does not have representation in countries that receive Global Fund grants; its offices are located in Geneva, Switzerland. The Global Fund hires a Local Fund Agent (LFA) to oversee, verify, and report on grant performance.

Selection of LFA
An LFA is selected by the Global Fund through a competitive bidding process after consultation with the relevant CCM. Under Clause 12 of the Fiduciary Arrangements for Grant Recipients, to avoid potential conflicts of interest with principal recipients for which they have oversight responsibility, LFAs must not be involved in the design and implementation of the funded programs.

Role of the LFA
The Global Fund webpage on LFAs sets out the key role of an LFA as part of the Global Fund’s fiduciary and performance-based funding arrangements.

The LFA works closely with the Global Fund and, in particular, with the relevant Fund Portfolio Manager, to provide the following services:

a. Work performed before the Global Fund signs a grant agreement with the principal recipient. This includes assessing the PR’s capacity to implement the grant, reviewing proposed budgets and work plans, and otherwise assisting the Global Fund in grant negotiations.

b. Work performed during program implementation. The LFA is contracted to independently oversee program performance and be accountable for the use of funds (known as verification of implementation). This includes reviewing the PR’s periodic requests for funds, undertaking site visits to verify results and reviewing the PR’s annual audit report.

c. Work performed with respect to the Phase 2 review. The LFA’s review of a grant as it approaches Phase 2 (Years 3 to 5 of a grant lifespan) is crucial in assisting the Global Fund to make its decision on whether to continue funding beyond the first two years.

d. Work performed with respect to grant closure. When a grant ends, the LFA is involved in assisting the Global Fund with closing the grant.

e. Ad hoc assignments undertaken at the request of the Global Fund, such as investigations relating to the suspected misuse of funds.

The LFA for Nigeria
The current LFA for Nigeria is PriceWaterhouseCoopers (Ghana) Ltd. The contact person is Maxwell Darkwa, Senior Manager – Assurance (e-mail, Maxwell.a.darkwa@gh.pwc.com; address, No. 12 Aviation Road, Una Home 3rd Floor, Airport City, PMB CT42, Cantonments, Accra, Ghana).