Prepare Funding Request

The initial step in the funding process is the development of a funding request for a disease component by all stakeholders, in the context of the CCM governance mechanisms. In preparation for the development of the funding request, the applicant chooses a proposed start date for the implementation period of the new funding request. The applicant will need to be aware of the upper limit for grant-making, taking into account the funding forecast available at the start date of this period.

Initial “best estimate” budgets by intervention are the minimum requirements for the submission of the funding request. The budget at the funding request stage is not detailed, but it serves to provide the strategic investment and intervention choices. It should be based on both realistic requirements to meet targets and the total amount of grant funds available.

The following are the key information requirements for budgets at this stage:

• A description of the intervention, including details of the target population and geographic scope, the implementation approach, and other relevant information pertaining to the intervention;
• The annual funding required for each intervention, including the following qualitative details:
  • cost assumptions (e.g., latest historical cost, quotations provided by vendors etc.);
  • reference to development partners costing tools (where applicable);
  • outline of additional sources and amounts of funding available for each intervention, with a distinction of the requests by “Within the allocation” (based on total approved programme split of the country for a specific disease) and “Above-allocation” (which covers the full expression of needs for effective disease programme implementation in the country, covering all existing funding gaps); and
• Proposed implementing Principal Recipient(s)(PRs) and Sub-recipient(s) (SRs) (if available).

It may be more convenient to prepare a more detailed budget at the funding request stage, which can then be consolidated into an intervention-based budget for submission to the Global Fund (for example, in cases where the latest historical costs of certain known activities in an intervention are already available).

Please see here for detailed information on the budget approval process.

The diagram below provides a summary of the stages of the budgeting process for the funding request.

Funding ceiling and treatment of in-country cash balances

In preparation for funding request development, the applicant may choose a proposed start date for the implementation period of the funding request. The applicant will need to be aware of the upper limit for grant-making, taking into account the funding forecast available at the start date of this period. Calculating this involves taking the country allocation for the component in question after programme split and reducing this figure by the amount of disbursements (actual and projected) to be made before the start date of the new request. This will provide the forecast funds available for each disease, which will be the budget ceiling amount for each funding request.

All interventions to be implemented and paid as of the new funding model grant start date, whether originating from already existing grants or from the funding request, should be incorporated in the budget.

The indicative upper ceiling available for each disease component at the funding request stage is determined according to the Global Fund Allocation Methodology, approved by the GF Board, based on disease burden and income level, “The allocation amount for each eligible disease component represents the funding that can be used over the relevant three-year Allocation Utilization Period. Any remaining funds from an existing grant, unused by the start of the indicated Allocation Utilization Period, will not be additional to the allocation amount. Remaining funds are composed of: (i) unused funds at the Global Fund Secretariat level (undisbursed funds). At the end of an Allocation Utilization Period, unused funds are returned to the general resource pool with the balance typically put towards Portfolio Optimization (as described below) to fund Unfunded Quality Demand (UQD) and other funding gaps in the next Allocation Period. (ii) available in-country funds represent any available uncommitted in-country cash balances (e.g., held by Principal Recipient, sub-recipients, procurement agents, and others). For Principal Recipients that are not continuing to implement grants for the Global Fund, the funds available in-country at the end of an Allocation Utilization Period need to be returned to the Global Fund no later than nine (9) months after the end of the grant. In the case of a continuing Principal Recipient, to avoid delays in implementation, the Global Fund may allow the Principal Recipient to use the in-country cash for the new grant. In that case, this amount will be deducted from the subsequent Allocation Utilization Period.”

For more information, please see the Global Fund Operational Policy Manual, Section 1: Access to Global Fund Financing.