The Local Fund Agent (LFA) is an entity contracted by the Global Fund for a particular country to undertake an objective examination and provide independent professional advice and information relating to grants and Principal Recipients (PRs). Within the Global Fund’s risk management framework, the LFA provides independent in-country verification and oversight mechanism in addition to Principal Recipient’s assurance. The Global Fund expects LFAs to proactively identify and alert it to any issues that may prevent activities and funding from reaching the intended beneficiaries in the quantity, time, and quality intended, and the Global Fund programmes from reaching their objectives. Based on the Global Fund Country Team’s risk assessment of the particular portfolio, the LFA’s scope of work is tailored to the specific circumstances of the grant.

Practice Pointer

While LFAs are expected to flag any occurring risks to the Global Fund, the focus of their work is to independently verify and confirm information reported by the PR. In cases where UNDP is the PR, the LFA role in verification is limited as the Global Fund relies on UNDP’s regulations, rules, policies and procedures. Please refer to the legal framework section of the Manual for guidance on Global Fund and LFA access to books and records.