OIG’s follow-up audit of Global Fund grants to Democratic Republic of Congo highlights need to improve stock management and data quality
A new Office of the Inspector General (OIG) audit of Global Fund grants in the Democratic Republic of Congo acknowledges successes across the three diseases achieved under extraordinarily challenging circumstances, but also highlights stockouts or insufficient stocks of health commodities, data inaccuracies relating to people living with HIV,
Fiscal agents reduce financial risks within Global Fund grants but do not build implementer capacity
Fiscal agents have been part of the Global Fund Financial management system in countries with high or moderate fiduciary risks since 2012. According to the Global Fund Guidelines on Financial Risk Management, fiscal agents reduce financial risks originating from weak financial management of principal or sub-recipients of Global Fund grants.
OIG investigation in Democratic Republic of Congo finds tender manipulation and overpricing in malaria grant
Senior managers appointed by the Population Services International (PSI), the Principal Recipient (PR) for the Global Fund’s malaria grant in the Democratic Republic of Congo, were responsible for tender manipulation leading to “systemic and significant overpricing” of contracts for transportation, warehousing and customs clearance, resulting in an estimated loss to the Global Fund of $7,386,066.
Currency fluctuations are a major concern for Global Fund stakeholders, particularly recipient countries whose domestic currency can experience significant shifts over relatively short periods of time. The strength of both the US dollar and the Euro in recent years has further exacerbated this issue for many countries.
OIG annual report says governments and partners are key to enabling the Global Fund to address quality of service issues
“There is often an asymmetry between the high level of accountability for impact that the Global Fund is generally held to and the sometimes low level of control that the organization has on many of the factors that drive such impact.”
Until the Global Fund defines its risk appetite, it can’t know what level of assurance is required: OIG audit
“The work on defining risk appetite is in its early stage and until [it is] sufficiently advanced, there is limited guidance on the required level of assurance.” This is one of main conclusions of an audit by the Office of the Inspector General (OIG) of in-country assurance.
OIG audit of two Global Fund grants to Guinea finds significant weaknesses in supply chain management
Although Guinea has made significant progress in the fight against the three diseases, despite a challenging operating environment, there are significant weaknesses in supply chain management and there are areas related to managing grant implementation that require improvement. These were the findings of an audit of Global Fund grants to Guinea conducted by the Office of the Inspector General (OIG).
While the Secretariat has improved its IT controls since the last IT audit conducted by the Office of the Inspector General (OIG) in 2015, significant improvements are required in two areas: (a) designing a cloud computing strategy; and (b) managing the risks associated with cloud computing.
In its annual report, prepared for the Board meeting on 3-4 May 2017, the Office of the Inspector General (OIG) said that the Global Fund is making “significant progress” in managing risks (see GFO article).
OIG sees improvement in the Global Fund’s grant-making processes, but identifies delays in implementing system enhancements
The Office of the Inspector General’s second audit in three years of the Global Fund’s grant-making processes has found that many of the risks identified in the original audit have been addressed. However, the OIG said, implementation of systems enhancements has been delayed, which may affect the ability of the Fund to sign grants on time.