Disbursements and Funds Flow PDF Print E-mail

 

Disbursements and Funds Flow

Disbursement requirements

Article 10 of the Grant Agreement explains that the timing and amount of any disbursement of grant funds are determined by the Global Fund at its sole discretion. In particular, the Global Fund will not make a disbursement unless:

1) The PR has submitted a disbursement request that complies with Global Fund requirements

2) The Global Fund has determined that funds are available

3) The PR has fulfilled any conditions precedent or special conditions indicated in the agreement

4) The PR’s cash flow needs are reasonable

5) The PR has provided all required programmatic progress reports

6) The PR demonstrates it has achieved the target programmatic results

7) The LFA has verified the information in the disbursement request.

As noted in Clauses 19–30 of the Guidelines for Performance-Based Funding, the Global Fund normally disburses tranches of the grant to PRs on a quarterly basis for at least the first year of the grant. Subsequently, the Global Fund and the PR may agree on half-yearly disbursements. Disbursements normally cover program cash requirements for the next disbursement period (e.g., the next quarter) plus one additional quarter to allow PRs to always have enough cash on hand while their disbursement request is being considered by the Global Fund.

Note that a PR may request additional disbursements outside the usual timeframe with appropriate justifications.

Deemed disbursement

Article 3(c) of the Grant Agreement notes that the Phase 1 starting date is determined by the date on which the PR receives the first disbursement of funds under the agreement.

Disbursements from the PR to SRs

Under Article 14 of the Grant Agreement, a PR may enter into a grant agreement with an SR to carry out program activities. Before any funds are disbursed to the SR, however, the grant agreement (or MOU) must have been executed.

A well-functioning disbursement system between PRs and SRs is essential for SRs to be able to effectively undertake program implementation. Accordingly, the reporting and communication system between the PR and SRs must be clear and operate efficiently. A guideline has been prepared for Nigerian PRs and SRs to consider in this regard is available as a resource document on the CCM Nigeria website. It is titled Reporting and Communication between PRs and SRs.
Last Updated on Thursday, 16 April 2009 15:21
 

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