This file is part of the online Capacity Development Toolkit to Strengthen National Entities to Implement National Disease Responses for HIV and
AIDS, Tuberculosis and Malaria.
January 2012.
Link: www.globalfundpartnership.org
Overview of functional capacities for disease responses
Programme Management
Capacities
Legal status
Scope: legally registered organisation; authority to enter
into a grant agreement; adequate insurance; mechanisms
to track and comply with national regulatory and policy
changes
Management and organisation
Scope: effective programme implementation; support
and commitment within the organisation; clear
organisational leadership, accountability, and
responsibilities; effective human resources practices;
planning and monitoring processes; effective contracting,
partnering and oversight mechanisms
Components
Legal capacity, status and authority to enter into the grant
agreement with the Global Fund
 Legal Authority
Effectively plan, manage, monitor, and forecast PMU
operations with clear roles & responsibilities and transparent
decision-making
 Planning
 Managing
 Monitoring
 Forecasting
Effectively manage program appraisals and program
implementation with identified risks and corresponding
mitigation strategies/plans
 Managing Risk
Maintain and use adequate PMU management accountability,
partnership, audit, and oversight mechanisms
 Partnering
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 Accountability & Oversight
Programme Management
Capacities
Infrastructure and information systems
Scope: functional information technology systems for
communications; capacity and staff for programmatic
reporting; coordination mechanisms for collaboration
with other organisations; physical facilities, offices,
equipment, computers, transport etc. to implement
programme activities
Technical expertise
Scope: sufficient staff with requisite HIV, TB, Malaria, and
health system strengthening expertise to implement and
monitor the programme
Components
Follow Global Fund management and reporting requirements
through organisation management policies and procedures
 Policies & Procedures
Recruit, maintain, and develop knowledge of staff to manage
operations (National, Regional, & District/Local)
 Recruit Mgmt Staff
Maintain adequate infrastructure and information systems to
support grant implementation and monitoring in a timely and
accountable manner
 Management Information Systems
Recruit, maintain, and develop adequate health expertise to
implement program activities
 Recruit Health Expertise
 Maintain & Develop Mgmt Staff
 Infrastructure
 Maintain & Develop Health Expertise
Sub-recipient Management
Capacities
Sub-recipient selection
Scope: adequate procedures and criteria in place for
transparent selection of sub-recipients
Procedures and criteria for transparent selection and contract
management of sub-recipients
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Components
 SR Selection
 Contract Management
Sub-recipient capacity assessment
Scope: adequate plans, resources, staffing, and
operational procedures to conduct sub-recipient capacity
assessments
Sub-recipient management and oversight
Scope: effective sub-recipient agreements; procedures for
sub-recipient planning, managing, monitoring, and
reviewing; adequate capacities and resources for
programmatic and financial oversight and management;
capability to provide training and capacity development;
process for problem identification, mitigation, and
remedial action; systems for accurate and timely
disbursements; systems to ensure availability and
integrity of financial and programmatic information from
sub-recipients
Conduct SR capacity assessments and provide support as
needed to ensure that SRs have the required capacities to
implement program activities
 Conducting Capacity Assessments
 Developing Capacity Development Plans
 Supporting Capacity Development
Implementation & Monitoring
Effectively manage, monitor, and integrate SR plans to
facilitate effective and timely program implementation and
resource use
 Planning
 Managing
 Monitoring
 Forecasting
Maintain and use adequate SR management accountability
and oversight mechanisms
 Partnering
 Accountability & Oversight
 Managing Risk
Financial Management & Systems
Capacities
Organization of the financial management function
Scope: clearly defined accounting and finance
organisational structures; leader with adequate skills and
experience; documented roles and responsibilities;
adequate policies and procedures; sufficient segregation
of duties; staffing sufficient to absorb grant funding
Effectively plan, manage, monitor, and forecast FMS
operations with clear structures, roles, and responsibilities
Components
 Planning
 Managing
 Monitoring
 Forecasting
Implement a policy with clear procedures of zero tolerance for
fraud, financial mismanagement other forms of malpractice
3
 Managing Risk
 Anti-Fraud Policies
Financial Management & Systems
Capacities
Budget system
Scope: robust procedures to create, review, and update
budgets; authorized policies for expenses tracking; ability
to prepare accurate financial reports used for
management decision-making; system for cost-sharing
arrangements
Accounting system
Components
Follow Global Fund FMS requirements as well as organisation
financial policies and procedures
 Policies & Procedures
Recruit, maintain, and develop knowledge of staff to
implement FMS operations (National, Regional, &
District/Local)
 Recruit Financial Staff
Robust procedures to create, review, and update budgets
including grant-specific tracking
 Budgeting
Support the prompt preparation of regular and reliable
financial statements and reports
 Financial Reporting
Accurately and promptly record all transactions,
disbursements, and balances
 Data & Transaction Recording
Disburse funds to SRs, procurement agents, and suppliers in a
timely, transparent, and accountable manner
 Treasury & Disbursement
 Maintain & Develop Financial Staff
Scope: ability to absorb planned 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;
suitability of accounting software; adequate, timely, and
accurate accounting reports
Treasury system
Scope: 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; ability to account and distinguish specific grant
funding
4
Financial Management & Systems
Capacities
Purchasing system
Scope: adequate processes, procedures, and oversight for
procuring non-health products
Asset management system
Components
Adequate procedures, oversight, and performance for
procuring non-health products
 Non-health product procurement
Safeguard financial and physical assets
 Safeguard Assets
Maintain an adequate internal control system
 Internal Control System
Maintain and use adequate FMS accountability, audit, and
oversight mechanisms
 Accountability & Oversight
Scope: adequate safeguards to protect assets; current
fixed asset and inventory register; periodic physical
inventories
Audit arrangements
Scope: sufficient external audit arrangements; adequate
process for management response and action to address
external financial audit issues; effective internal audit
arrangements, structure, staffing, independence,
reporting, and plans
Risk Management & Prevention of Fraud and Corruption
Capacities
Risk, anti-fraud, and anti-corruption management
Scope: clear responsibilities for managing and monitoring
risk; regular management review of risks and mitigation;
effective implementation of risk management actions
Effectively plan, manage, monitor, and forecast risk mgmt,
anti-fraud, and anti-corruption operations with clear
structures, roles, and responsibilities
Components
 Planning
 Managing
 Monitoring
 Forecasting
5
Risk Management & Prevention of Fraud and Corruption
Capacities
Risk identification and planning
Scope: policies and procedures to identify, assess, and
plan for programme risks; effective risk management
plans
Fraud and corruption tracking
Components
Maintain and use adequate risk mgmt, anti-fraud, and anticorruption accountability and oversight mechanisms
 Accountability & Oversight
Follow Global Fund risk mgmt, anti-fraud, anti-corruption
requirements as well as organisation policies and procedures
 Policies & Procedures
Recruit, maintain, and develop knowledge of staff to
implement risk mgmt, anti-fraud, and anti-corruption
operations (National, Regional, & District/Local)
 Recruit Risk Mgmt Staff
Procedures to effectively identify risks and plan mitigation
strategies
 Risk Identification & Mitigation
Track and identify fraud and corruption
 Tracking & Identification
Scope: adequate fraud detection systems and software;
adequate and independent external auditors
6
 Transparency
 Maintain & Develop Risk Mgmt Staff
Risk Management & Prevention of Fraud and Corruption
Capacities
Investigation and enforcement
Components
Investigate fraud and corruption allegations
 Investigation
Enforce necessary action and reforms
 Enforcement
Adequate prevention measures and mechanisms
 Prevention Measures
Scope: clarity of accountability and levels of enforcement;
independent investigation mechanisms
Prevention mechanisms
Scope: effective systems to provide internal and external
transparency of operations; levels of civic participation
and oversight
Pharmaceutical & Health Product Management
Capacities
Management and coordination
Scope: adequate organisational structure, staffing, and
management for procurement , storage, and distribution
functions; effective procurement monitoring and
reporting; appropriate oversight to ensure effective subrecipient procurement; ability to distinguish health
Effectively plan, manage, monitor, and forecast PHPM
operations with clear structures, roles, and responsibilities
Components
 Planning
 Managing
 Monitoring
Maintain and use adequate PHPM accountability, audit, and
oversight mechanisms
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 Accountability & Oversight
Pharmaceutical & Health Product Management
Capacities
product provision between separate funds
Procurement policies and systems
Scope: adequate procurement policies and procedures;
competitive, efficient, and transparent procurement
processes; timely procurement cycle; appropriate
intellectual property rights and policies for pharmaceutical
products
Intellectual property rights
Scope: membership in 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
Scope: established national drug regulatory authority
function; effective quality control and assurance
procedures and responsibilities
Components
Recruit, maintain, and develop knowledge of staff to
implement PHPM operations (National, Regional, &
District/Local)
 Recruit PHPM Staff
Enter into and manage contracts and sub-contractor
relationships
 Contract Management
Implement a policy with clear procedures of zero tolerance for
fraud, financial mismanagement other forms of malpractice
 Managing Risk
Follow Global Fund PHPM requirements as well as
organisation procurement policies and procedures
 Policies & Procedures
Effectively utilize public health-related IPR flexibilities to
increase access to treatment and achieve the best value for
money of good quality medicines
 Legislation & Regulation
 Maintain & Develop PHPM Staff
 Anti-Fraud Policies
 IPR Policies & Procedures
 Use of IPR Flexibilities
Maintain and follow necessary quality assurance and quality
control procedures
8
 Quality Assurance & Control
Pharmaceutical & Health Product Management
Capacities
Product selection
Scope: appropriate responsibilities and procedures for
product selection
Management information systems
Scope: effective systems to track stock levels and
consumption data; reliable, complete, and accurate
reporting to enable revision of orders
Forecasting1
Components
Competitively and transparently solicit and select products
and services to achieve the best value for money
 Solicit & Select
Maintain adequate information systems to support effective
tracking of stock levels and consumption with accurate
reporting
 Procurement Systems
Effective systems and procedures for using information to
forecast procurement and distribution needs
 Forecasting
Effectively and securely receive, store, control and account for
the inventory of products
 Receive & Store
Scope: effective responsibilities, systems, and procedures
for forecasting; reliable and timely forecasting data;
procedures to validate forecasts
Receipt and storage
Scope: effective responsibilities, systems, and procedures
for receipt and storage of goods; 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
In the context of PHPM, forecasting is the estimation of quantities of products that must be procured to ensure continuous availability of supplies during a given
period. Forecasting involves planning demand on the basis of allocated funds and actual needs.
9
Pharmaceutical & Health Product Management
Capacities
Distribution
Scope: documented product distribution schedule;
sufficient staff, vehicles, and storage capacity for
distribution; adequate security in distribution system;
appropriate accounting systems to track and verify
products dispatched and received
Rational drug use
Scope: national treatment guidelines in place and
available where needed; mechanisms to encourage
adherence to and monitoring of treatment
Other health products
Scope: adequate quality assurance procedures for nondurable products; effective procedures for procurement,
service, and maintenance of durable products
Components
Effectively distribute, account for, and confirm delivery of
products
 Distribute
National treatment guidelines in place with mechanisms to
monitor adherence
 Rational Drug Use
Effective systems and procedures for procurement, quality
assurance, service, and maintenance of durable and nondurable products
 Non-pharmaceutical Health Products
Monitoring & Evaluation
Capacities
M&E coordination
Scope: M&E management arrangements; effective M&E
stakeholder and technical working groups; effective
oversight and review of sub-reporting entities
Effectively plan, manage, monitor, and forecast M&E
operations with clear structures, roles, and responsibilities
Components
 Planning
 Managing
 Monitoring
 Forecasting
10
Monitoring & Evaluation
Capacities
Indicators
Scope: clear and measurable indicators with baselines,
targets, measurement methods, and data sources; quality
and comprehensiveness of indicators
M&E work plan
Scope: effective M&E plan with clearly defined activities,
timelines, financial resource estimates, and
responsibilities; processes to update the work plan
M&E budget
Components
Maintain and use adequate M&E accountability and oversight
mechanisms
 Accountability & Oversight
Comprehensive, clear and measurable indicators with
baselines, targets, and measurement methods
 Indicators
Up-to-date work plan with activities, timelines,
responsibilities, resource estimates, and processes to update
 Work plans
Comprehensive budget with resource sources and gaps
 Budgeting
Follow Global Fund M&E requirements as well as organisation
M&E policies and procedures
 Policies & Procedures
Scope: comprehensive, adequate, and feasible budget;
resource sources and gaps
M&E tools and guidelines
Scope: M&E guidelines and standard operating
procedures; adequate procedures and responsibilities for
collecting and aggregating data at sub-national levels;
registers, data collection and reporting forms from service
delivery point to central level; tools and guidelines for
data quality assurance, surveys, and program evaluation
11
Monitoring & Evaluation
Capacities
M&E human resources
Scope: adequate M&E human resource staffing and skill
levels; adequate structures, roles and responsibilities for
data collection, monitoring, and reporting; plans for
addressing human resource gaps
Routine data collection, analysis and reporting
Scope: effective data collection, analysis and reporting
processes, including data repository, backup system, data
compilation, processing and analysis; adequate report
flows from service delivery point to central level; ability to
produce timely and accurate reports; effective data
analysis systems and responsibilities
Components
Recruit, maintain, and develop knowledge of staff to
implement M&E operations (National, Regional, &
District/Local)
 Recruit M&E Staff
Collect and record programmatic data with appropriate quality
control measures:
 Programmatic Disaggregated Behavioural &
 Access existing data sources/bases for
sex, age and
 Maintain & Develop M&E Staff
Health Data Collection
 Data Quality Control
geographical disaggregated data
 When necessary, through sentinel surveillance, qualitative
studies and operational research
Support the preparation of regular and reliable programmatic
reports
 Programmatic Behavioural & Health Data
Effective data quality assurance strategy, procedures, reviews,
and verification processes
 Data Quality Assurance
Evaluation, operational research, surveys, surveillance,
special studies
Schedules for evaluations, research, surveys, studies, and
reviews
 Evaluation Scheduling
Scope: schedules for program evaluations, operational
research and program reviews; schedules for surveys and
studies
Make data available for the purpose of evaluations and other
studies
 Data & Information Sharing
Data quality assurance and M&E related supportive
supervision
Analysis & Reporting
Scope: feasible and comprehensive data quality assurance
strategy; effective data quality assurance procedures;
timely data quality assurance reviews; data quality checks
at sub-national level
12
Monitoring & Evaluation
Capacities
Evaluation
Scope: adequate systems for independent evaluations;
ability to review and respond to evaluation
recommendations
Information products, dissemination and use
Scope: clear information products and dissemination
methods; M&E results inform management decisions;
systems to integrate evaluation results into planning
Alignment with and contribution to national M&E
system
Components
Effective policies and systems for timely independent
evaluations, and mechanisms for acting on recommendations
 Evaluation Conduct & Follow-up
Manage knowledge to make it accessible, so it can be used in
the design and implementation of programs
 Knowledge Capture & Organisation
Program and grant-level plans and operations use national
M&E guidelines and systems
 M&E Integration
Scope: M&E plan linked to national strategy; M&E plans
and operations follow, use, or integrate with national
M&E systems
13
 Knowledge Sharing