There are (or were) a number of significant deficiencies in the financial management control framework of Ministry of Public Health (MOPH) principal recipients (PRs) and sub-recipients (SRs). This is the main conclusion of an audit conducted by the Global Fund's Office of the Inspector General (OIG) in 2009 on six Global Fund grants in Cameroon.
All four principal recipients (PRs) in Cambodia established separate structures parallel to national ones to manage procurement and monitoring and evaluation (M&E) functions within Global Fund grants. The creation of parallel structures goes against the intention of core Global Fund principles that call for the use and strengthening of national systems.
An audit report on Haiti, recently released by the Office of the Inspector General (OIG), has revealed significant issues with the performance of the Société Générale Haitienne de Banque (also known as Fondation Sogebank), a non-profit foundation which has served as the principal recipient (PR) for all but one of the Global Fund grants in Haiti.
All four principal recipients (PRs) implementing Rounds 1 and 4 Global Fund grants in Zambia, two of them government and two NGO, have shown evidence of significant financial management and control weaknesses, episodes of misappropriation and fraud, and losses of grant funds. This is the overarching finding of an audit conducted in 2009 by the Global Fund's Office of the Inspector General (OIG).
There are a number of deficiencies in the financial management of sub-recipients (SRs) by the United Nations Development Programme (UNDP), the principal recipient (PR) for all of the Rounds 2-7 grants in the Democratic Republic of Congo (DRC).
An audit conducted on the implementation of Global Fund grants in the Philippines documents numerous systems weaknesses, accounting irregularities and unauthorised expenditures on the part of one principal recipient (PR), the Tropical Diseases Foundation (TDF).
The Global Fund has resumed funding for four of the five suspended grants to the Philippines, with different principal recipients (PRs) at the helm - and was expected shortly to sign an agreement with a new PR for the fifth grant. The five grants were suspended in September 2009, following evidence of unauthorised expenditures by the PR, Tropical Disease Foundation (TDF).
In every country audited by the Global Fund's Office of the Inspector General (OIG) since 2006, there were numerous instances of principal recipients (PRs) not complying with clauses in their grant agreements. The Global Fund does not have mechanisms in place to monitor and enforce compliance with these clauses.
The Global Fund recently released a wide-ranging Frequently Asked Questions (FAQ) document on how to implement decisions made by the Global Fund Board in November 2009 concerning cost-cutting measures and the new grant architecture. The document is entitled "Grant Signing Frequently Asked Questions," though in fact it covers many issues beyond those related to grant signing.
A review by the Global Fund's Inspector General of the Fund's grants to Uganda, four years after the Fund temporarily suspended five grants worth $213 million due to financial mismanagement, has concluded that the Fund should continue to use Uganda's Ministry of Financial Planning and Economic Development (MoFPED) as Principal Recipient (PR).