5 Functional Capacities

5 Functional Capacities

Capacity development should focus on strengthening national systems, in particular systems supporting the following functional capacities:

The scope should identify both the needs of national responses and programmes and the needs for the successful implementation of Global Fund grants. This provides the opportunity to apply greater integration between different donor programmes and to strengthen public health programmes overall.

Capacity Area: Financial Management & Systems, including Risk Management

Scope

  • Organisation of the Financial Management function – ensuring that there are clearly defined organisational structures for accounting and finance; leadership with adequate skills and experience; documented roles and responsibilities; sufficient segregation of duties; staffing sufficient to absorb grant funding; adequate policies and procedures.
  • Budget System – that includes robust procedures to create, review and update budgets; policies to track expenses; the ability to prepare accurate financial reports used for management decision-making; and systems for cost-sharing arrangements.
  • Accounting System – with the ability to absorb any potential increase in transactions; Chart of Accounts, with necessary levels of detail to monitor expenditures; integration of accounting and financial systems; reliable budget control and analysis; and the suitability of accounting software.
  • Treasury System – ensuring the ability to absorb planned increased payment activity; appropriate controls over management of cash; adequate cash forecasting; appropriate controls in banking arrangements; appropriate checks prior to payment; and the ability to account for, and distinguish between, specific grant funding.
  • Purchasing System (for non-health products) – to ensure adequate processes, procedures and oversight for procuring non-health products.
  • Assets Management System – to ensure adequate safeguards to protect assets; current fixed asset and inventory registers and periodic physical inventories.
  • Audit Arrangements – with sufficient external audit arrangements; adequate processes for management responses and actions to address external financial audit issues; effective internal audit arrangements, such as clear structure, staffing, independence, reporting and plans.
  • Sustainable Financing – enabling periodic costing reviews to get a clear picture of the current levels, sources and areas of expenditure, identification of priority areas for investment, opportunities to maximise cost savings and the implementation of Value for Money approaches.
  • Risk Management – with policies and procedures to identify, assess and plan for programme risks; clear responsibilities for managing and monitoring risk; regular review of risks and mitigation; implementation of risk management actions; effective systems to provide internal and external transparency of operations.

 

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Capacity Area: Procurement and Supply Chain Management (PSM)

Scope

  • Management and Coordination – to ensure adequate organisational structure, staffing and management for procurement functions; effective procurement monitoring and reporting; and appropriate oversight to ensure effective Sub-Recipient procurement.
  • Procurement Policies and Systems – ensuring adequate procurement policies and procedures; competitive, efficient and transparent procurement processes; a timely procurement cycle; appropriate intellectual property rights and policies for pharmaceutical products; national treatment guidelines in place and available, where needed; and mechanisms to encourage adherence to, and monitoring of, treatment.
  • Intellectual Property Rights – ensuring membership of the World Trade Organisation; patent laws covering pharmaceuticals; effective patent enforcement; ‘government use’ patent laws; allowance of ‘parallel importation’ of patented pharmaceuticals.
  • Quality Assurance Systems and Capacity – have in place an established national drug regulatory authority function; effective quality control and assurance procedures and responsibilities, adequate quality assurance procedures for non-durable products.
  • Product Selection – to ensure appropriate responsibilities and procedures for product selection, effective procedures for procurement, service and maintenance of durable products.
  • Management Information Systems – to have effective systems for tracking stock levels and consumption data; reliable, complete and accurate reporting to allow for the revision of orders.
  • Forecasting – to ensure effective systems and procedures for forecasting; reliable and timely forecasting data; and procedures for validating forecasts.
  • Distribution, Receipt and Storage – to have in place effective systems and procedures for distribution, receipt and storage of goods; sufficient staff and vehicles; reliable inventory control systems; adequate physical space, storage equipment, security and insurance; systems for physical inventory and identification and disposal of expired products; effective management of shelf life, and appropriate accounting systems for tracking and verifying products dispatched and received.

 

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Capacity Area: Monitoring and Evaluation (M&E)

Scope

  • M&E Systems – to ensure that programme M&E is integrated into national M&E systems; there are comprehensive M&E guidelines and standard operating procedures; data collection and reporting forms flowing from service delivery point to central level; tools and guidelines for effective data quality assurance.
  • M&E Plan – to have an effective M&E plan with clearly defined activities, timelines, financial resource estimates and responsibilities; clear and measurable indicators with baselines, targets, measurement methods, and data sources; comprehensive, adequate and feasible budget; and linked to the national strategy; with schedules for evaluations, surveys, etc.
  • M&E Analysis and Decision Making – to ensure effective data collection and analysis processes, including data repository, backup system, data compilation, processing and analysis; the ability to produce timely and accurate reports; M&E results that inform management decisions; and systems for integrating evaluation results into planning.
  • M&E Human Resources – to have in place adequate M&E human resource staffing and skill levels; adequate structures, roles and responsibilities for data collection, monitoring and reporting; effective oversight and review of sub-reporting entities; plans for addressing human resource gaps; and effective M&E stakeholder and technical working groups.

 

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Capacity Area: Project Governance and Program Management, including Sub Recipient (SR) Management

Scope

  • Legal Status – to ensure the authority to enter into a grant agreement; and mechanisms for tracking and complying with national regulatory and policy changes.
  • Management and Organisation – to ensure effective programme implementation; support and commitment within the organisation; clear organisational leadership, accountability and responsibilities; effective human resources practices; and strong planning and monitoring processes.
  • Human Resource Management – to have in place adequate staffing and skill levels; adequate structures, roles and responsibilities; plans for addressing human resource gaps; effective staff retention and staff development strategies.
  • Infrastructure and Information Systems – to have in place functional information technology systems for communications; for programmatic reporting; physical facilities, offices, equipment, computers, transport etc. to implement programme activities.
  • SR Capacity Assessment – to have adequate staffing and procedures to conduct Sub-recipient capacity assessments; and the capability to provide training and capacity development.
  • Sub-Recipient Selection – to have adequate procedures and criteria in place for transparent selection of Sub-recipients and signing of agreements.
  • Sub-Recipient Management and Oversight – to have adequate capacities and resources for programmatic and financial oversight and management of SRs; processes for problem identification and mitigation, as well as remedial action; systems for accurate and timely disbursements; and systems to ensure availability and integrity of financial and programmatic information from Sub-recipients.

 

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