Project Document
Except for matters specifically agreed to in a Grant Agreement, UNDP uses its standard operational framework for implementing Global Fund grants. Art. 2(a) of the UNDP–Global Fund Grant Regulations annexed to the Framework Agreement concluded between UNDP and the Global Fund on 13 October 2016 (Grant Regulations) and amended September 2023 recognizes that UNDP will “implement or oversee the implementation of the Program in accordance with UNDP regulations, rules, policies and procedures and decisions of the UNDP Governing Bodies, as well as the terms of the relevant Grant Agreement.” The term “UNDP Governing Bodies” principally refers to the United Nations General Assembly, Executive Board and internal oversight bodies (such as the Chief Executive Board (CEB), High Level Committee on Management (HLCM) and the UNDP Executive Group) and such other organs of the United Nations that possess the authority to pass decisions of general applicability under the Charter of the United Nations or the legal framework of UNDP.
Project implementation must comply with the UNDP Programme and Operations Policies and Procedures (POPP), and, particularly the section on Programmes and Projects.
As Principal Recipient (PR), UNDP is legally responsible and financially accountable for implementation results. The nature of these responsibilities, as well as the high level of legal and financial exposure involved, call for the use of the Direct Implementation Modality (DIM) as the optimal implementation modality, as defined in the UNDP POPP. As per the POPP, Country Offices are no longer required to obtain Regional Bureau clearance to use the DIM modality for a project, though the Regional Bureau may request such a requirement on a Country Office as needed.
However, in cases where UNDP provides support to a national PR or a government entity that seeks assistance with health implementation, the National Implementation Modality (NIM) may be the most appropriate framework, with the national PR or government entity serving as UNDP’s implementing partner. For such engagements, the UNDP Global Fund Partnership and Health Systems Team (GFPHST) should be consulted on legal and programmatic arrangements, and facilitate, as required, consultations with UNDP Office of Legal Services (OLS).
Practice Pointer
1. Section 4.2 on Global Fund reviews
Section 4.2 has been amended to clarify that without prejudice to Articles 14 and 15 of the UNDP-Global Fund Grant Regulations, the Global Fund may directly conduct any reviews of suppliers and of Sub-recipients which are not part of the United Nations System. Please find the detailed section on page 3 of the amended copy of the FA.
2. Section 4.3 on Audits and investigations
Section 4.3 has been clarified to emphasize that consultation and coordination on audits and investigations are separately agreed through working arrangements between the independent oversight offices of UNDP and the Global Fund and Section 30.7 of the UNDP-Global Fund Grant Regulations and reflect the Global Fund’s right to conduct audits and investigations of suppliers and of Sub-recipients which are not part of the United Nations System. UNDP’s Office of Audit and Investigations (OAI) will work closely with the Global Fund’s Office of the Inspector General (OIG) to ensure that there is a proportionate and robust response to allegations of wrongdoing across Global Fund grants administered by the UNDP. Please find the detailed section on page 3 of the amended FA.
3. Article 30 on Sexual Exploitation, Abuse and Harassment has been included under Annex A
This robust clause establishes a solid foundation for fulfilling UNDP’s mandate while protecting staff, stakeholders, and beneficiaries from SEAH. Please find the detailed article page 20 onwards of the amended FA.
For further details please access the courtesy compilation which reflects the changes made to the 2016 FA based on the agreement reached on 29 September 2023: UNDP Global Fund Framework Agreement – December 2024
Resources
Functional Area: Financial Management; Legal Framework Project Stage: Grant Making and Signing; Grant Implementation; Grant Reporting Author: UNDP Language: English Type: Policies, Procedures and guidance Topic: Financial rules and regulations, Financial Reporting, DIM Modality, Project Implementation, Direct Implementation Modality (DIM) Resource File Format: Link Resource Accessibility: Publicly accessible
Functional Area: Legal Framework Project Stage: Grant Implementation Author: UNDP Language: English Type: Policies, Procedures and guidance Topic: Work plan, Global Fund reviews, Legal Framework Resource File Format: Link Resource Accessibility: Publicly accessible