Before signing a Grant Agreement (only for new Principal Recipients (PRs) and PRs implementing new activities for which they have not been assessed), the Global Fund needs to ensure that the proposed implementation arrangements, systems and capacities of key grant implementers are adequate for effective financial and programmatic management of the grant funds. The assessment of these systems and capacities is carried out by the Global Fund Country Team and LFA in the following key functional areas, using the Capacity Assessment Tool (CAT):

• Governance and programme management (including Sub-recipient management)
• Monitoring and Evaluation
• Procurement and supply management
• Financial management and systems

NB: The latest version of CAT also includes broader topics, such as RSSH and Pandemic Preparedness, Human Rights and Gender Equality, and Health Financing. 

The capacity assessment supports the process of establishing whether minimum standards for Principal Recipients are met, and of addressing any questions the Country Team may have in verifying the information presented by the Country Coordinating Mechanism (CCM) in the Concept Note on the PR’s compliance with minimum standards.

The Programmatic and M&E sections of the CAT cover the following areas:

• Program Quality
• Data Governance & Management
• Data Generation, Availability & Quality
• Data Analysis and Use
• Human Rights
• Gender Equity

Practice Pointer

As all sections refer to national program and M&E systems, the PR needs to work closely with the ministry of health, HMIS department, and national disease programmes to complete the CAT.

Any information provided in the CAT is subject of Global Fund verification. The PR must therefore make every effort to provide complete and reliable information to facilitate timely Grant-Making.