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Legal Framework

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During the grant lifecycle, UNDP enters into numerous legal agreements with the Global Fund and other parties such as Sub-recipients (SRs) and vendors, utilizing the following key instruments, among others: 

In addition, where UNDP is engaged for roles other than that of Principal Recipient (PR), it may enter into the following agreements: 


Practice Pointer
With the exception of agreements concluded with the Global Fund (e.g. Grant Agreements and subsequent instruments such as implementation letters, as well as CCM funding agreements or constituency funding agreements) and non-PR engagements, no legal clearance is required prior to signature of an agreement unless deviations from the terms of the templates are proposed.

Country Offices (COs) are encouraged to seek the advice of their Global Fund Partnership and Health Systems Team (GFPHST) focal point, who will consult, as required, with the Office of Legal Services (OLS), Bureau for Management Services (BMS), on legal implications and any related questions about any of the provisions included in the templates.

All agreements that UNDP enters into with the Global Fund must be reviewed  by the UNDP Global Fund Partnership and Health Systems Team (GFPHST), and cleared by OLS . 

In view of the unique programmatic and legal challenges involved, as well as the highly specialized expertise required, OLS and the UNDP Global Fund Partnership and Health Systems Team (GFPHST) should also be consulted on all non-PR engagements, such as support to a national PR or health implementation support to a government entity, even if the latter does not receive any Global Fund resources. 

Please see here for further information on legal framework for other UNDP support roles. 

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
The Framework Agreement (FA) between UNDP and the Global Fund was amended in September 2023. The amended FA, effective as of 29 September 2023, introduces three key changes aimed at reflecting our ongoing efforts to align with best practices and uphold the highest standards of integrity and accountability in our partnership with the Global Fund.

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

The Grant Agreement

A Grant Agreement is a formal financing agreement between UNDP (through a UNDP Country Office (CO)) and the Global Fund. It consists of: (i) the Framework Agreement, including the UNDP-Global Fund Grant Regulations; and (ii) Grant Confirmation setting forth a face sheet, conditions and Schedule 1, comprising of the integrated grant description, summary budget, and a performance framework (PF). 

Negotiations of Grant Agreements are guided by the following basic principles: 

From the legal and programmatic perspectives, the grant-making process involves two principal milestones:
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UNDP-Global Fund Grant Regulations

The Framework Agreement (FA) between UNDP and the Global Fund was amended in September 2023. The amended FA., effective as of December 2024, includes the Grant Regulations tailored to UNDP. The Grant Regulations cover all the fundamental aspects of grant implementation and include the following key provisions: 

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The Framework Agreement, including the Grant Regulations, have been agreed corporately between UNDP and the Global Fund; they are not negotiable and cannot be modified. They are to be used without deviations in all countries where UNDP acts as PR, to ensure a consistent legal regime for all UNDP Country Offices (COs). 

Practice Pointer
Due to the legal and financial exposure, all Global Fund requests for refund, which are addressed to the UNDP Country Office (PR), must be immediately referred to respective Regional Bureau (RB), the UNDP Global Fund Partnership and Health Systems Team (GFPHST). The UNDP Office of Legal Services (OLS) should be consulted as required.

Grant Confirmation

Every Grant Confirmation includes a face sheet, conditions (if any) and Schedule 1, consisting of the integrated grant description, performance framework, and summary budget. Please click “next” or select items from the left-hand menu for more information on the components of the Grant Confirmation. 

Grant Confirmation: Face Sheet

The  Grant Confirmation template sets forth a face sheet that requires Country Office (COs) to fill in information specific to their programme. The COs must, among other things, indicate the following: 

Grant Confirmation: Conditions

The Grant Confirmation should only contain programmatic material with no conditions precedent (CP) or special conditions (SCs). However, since the Global Fund often insists on CP and/or SCs, the Grant Confirmation must be negotiated with close and timely involvement of the UNDP Global Fund Partnership and Health Systems Team (GFPHST), who will facilitate the consultation, as required, with the UNDP Office of Legal Services (OLS) , so as to avoid delays in grant signature. 

CP and SCs should only be introduced exceptionally, only in cases where no other means of addressing the issue covered by the proposed CP or SCs. The few CP and SCs that may remain in Grant Confirmation must: 


Practice Pointer
The Country Office (CO) should share any draft grant documents with the UNDP Global Fund Partnership and Health Systems Team (GFPHST) as soon as such documents are received from the Global Fund.

Grant Confirmation: Conditions Precedent (CP)

Conditions precedent (CP) are conditions that must be achieved before the use of funds is authorized under the Grant Agreement. As previously noted, they should only be introduced exceptionally, when there is no other means of addressing an issue intended to be covered by the proposed condition. Such means would include regular grant-related communications, the performance framework or workplan tracking measures. All CP must be thoroughly negotiated with the assistance of the UNDP Global Fund Partnership and Health Systems Team (GFPHST), who will consult, as required, with the UNDP Office of Legal Services (OLS), all alternatives for addressing the matter carefully considered before a CP is introduced. 

A typical example of an exceptionally approved CP is a plan for certain activities (e.g. civil works or training), which must be approved by the Global Fund before the funds can be used by UNDP to finance those activities. 

In this respect, it should be noted that front-loading the planning is essential to ensure uninterrupted and efficient grant implementation. Therefore, and unless for programmatic reasons a plan cannot be developed prior to signature (e.g., a waste management plan that requires technical assistance), every effort should be made to agree on the required plan or plans before signature. To avoid an undue administrative burden, it is advised to rely on regular grant-related communications instead of a condition where a plan is substantially finalized and UNDP commits to have it formally approved by the Global Fund immediately or shortly following grant signature. In other words, unless the planning is not advanced and the underlying activity is of high value, volume or complexity, the Global Fund’s request for a plan can and should be achieved through means other than a CP. 

It should also be noted that, according to Art. 14 of the Grant Regulations, a monitoring and evaluation (M&E) plan is due within 90 days after the Grant Agreement enters into force. Therefore, there is no need to repeat a condition for the same purpose. It is recommended, however, that an M&E plan is agreed and approved as early as possible, ideally before grant signature. Likewise, procurement of health products can only take place once the Global Fund approves a list of health products in accordance with Art. 18 of the Grant Regulations and the Global Fund Health Products Guide. Hence, a CP requiring the Fund’s approval of a health procurement plan is superfluous. 

Each CP usually has a terminal date, e.g. a date by which completion is due. If a CP is not met by the terminal dates, this can delay the next disbursement of funds and grant implementation activities while the reasons for such failure and the next steps are being determined. Alternatively, the Global Fund may reduce the amount of its disbursement decision or the amount of a particular cash transfer. Such reduction will normally amount to the total funds budgeted for the activities under the relevant unfulfilled CP.

In addition, failure to meet a CP may also lead to delays with implementation, affect programme delivery, and lead to a lower grant performance rating. It is therefore most important to keep CP to the minimum and where they are agreed devote sufficient resources to their timely completion. 

Under Art. 3 of the Grant Regulations, the Global Fund is required to notify the PR when a CP has been met. It is important to ensure that this notification is received in writing, to prevent any potential misunderstanding as to whether the CP is still outstanding. 

Practice Pointer
The CP can only be introduced exceptionally upon review by the UNDP Global Fund Partnership and Health Systems Team and approval of OLS . The exceptionally approved CP must be realistic, achievable and under UNDP control. There should be financial resources available either from the grant or from other sources to meet the CP.

The CP normally have terminal dates. If a CP is not met by the terminal date, the Global Fund may unilaterally reduce the amount of the annual disbursement decision and/or cash transfer. Failure to meet a CP may also lead to delays with implementation, affect programme delivery, and lead to a lower grant performance rating.

Grant Confirmation: Special Conditions (SCs)

Like the conditions precedent (CP), special conditions (SCs) are exceptional conditions intended to set forth a number of additional requirements for a particular grant.  

Practice Pointer
The Country Office (CO) must submit each Grant Confirmation to the UNDP Global Fund Partnership and Health Systems Team (GFPHST) for review as early as possible in the negotiation process, who will consult, as required, with the UNDP Office of Legal Services (OLS). The GFPHST, in consultation with OLS, will assist the CO with excluding or substantially limiting the conditions and ensuring that they are reasonable, that they comply with UNDP’s regulations, rules, policies and procedures, and that they are consistent with corporate practices between UNDP and the Global Fund.

Grant Confirmation: Schedule 1, Integrated Grant Description

The Integrated Grant Description uses a standard template, in which details specific to the relevant grant are to be reflected. It sets forth, among other things, (a) background and rationale the programme; (b) goals; (d) strategies; (e) planned activities; and (c) target group/beneficiaries. 

Grant Confirmation: Schedule 1, Performance Framework

The performance framework (PF) is part of Schedule 1 of the Grant Confirmation and it is a legally binding document that sets forth the grant goals, objectives , service delivery modules and indicators with baselines, periodic targets and target-setting assumptions, work plan tracking measures (as applicable) and reporting periods. All indicators (Impact, Outcome and Coverage) are based on the funding request submitted by the country and may be refined (or in rare instances, removed) during grant negotiations. 

Workplan tracking measures (WPTMs) are qualitative milestones used during grant implementation to monitor activities under modules/interventions that cannot be assessed using quantitative coverage and outcome measures (for example, community systems strengthening (CSS), human rights, etc.).  

The Global Fund uses Coverage indicators and WPTMs from the Performance Framework to monitor the programme’s progress and grant a performance rating.  Indicator performance assessments not only inform disbursement decisions during the initial three-year period but are also used to inform future funding decisions. Further guidance on selection of indicators and on WPTMs can be found in the M&E section of the Manual. 

Practice Pointer
The Country Office (CO) should negotiate the Performance Framework carefully and consider it to be as important as the budget. The importance of the selected indicators and targets cannot be underestimated, as they have a direct impact on the rating of the grant performance, and it is the performance of these indicators against the negotiated targets that will provide the basis for Global Fund disbursements and further funding decisions. The indicators and targets should be measurable and realistic and be supported by adequate funding under the grant.

The UNDP Global Fund Partnership and Health Systems Team (GFPHST) supports the review of the Performance Framework.

Grant Confirmation: Schedule 1, Summary Budget

The summary budget is part of the Grant Confirmation. It is an Excel document, providing a snapshot of the detailed work plan and budget for the programme. It sets out the approved budget for the programme term, and is presented by module, cost grouping and recipients/implementers. For further guidance, please refer to the financial management section of the Manual. 

Implementation Letters and Performance Letters

Following Grant Agreement signature, according to Art. 12 of the Grant Regulations, “The Global Fund and the Principal Recipient may from time to time issue jointly signed implementation letters to confirm and record their mutual understanding on aspects of the implementation of this Agreement.” Since implementation letters (ILs) are issued jointly by UNDP and the Global Fund, the UNDP Global Fund Partnership and Health Systems Team (GFPHST) must review their terms and, in particular, ensure that they are consistent with the Grant Agreement. The UNDP GFPHST will facilitate consultations with the UNDP Office of Legal Services as required.   

Implementation oversight allows the Global Fund to maintain an overview of implementation progress and to jointly define solutions to address implementation bottlenecks. Once grant implementation has started, Principal Recipients (PR) regularly report to the Global Fund through Progress Updates (PUs), Pulse Checks and other reporting mechanisms. The programmatic results are reported against the targets set in the Performance Framework, and the financial expenditure is reported against the agreed Budget. Based on these and any risks or issues identified, the Global Fund undertakes a comprehensive performance assessment, and issues a Performance Letter to the PR, which communicates the Global Fund’s Country Team findings, performance rating and required actions to address identified implementation challenges and additional risks. They contain management action points for the Country Office (CO), which are considered as recommendations. Art. 12 confirms this by stating that management letters are “advisory in nature”, thus with no binding legal force on UNDP. The CO is encouraged to seek GFPHST’s guidance on the meaning and impact of performance letters, as well as advice on handling the recommendations made by the Global Fund therein. 

Agreements with Sub-recipients

UNDP engages Sub-recipients (SRs) by entering into binding legal agreements with them (SR agreements).  Depending on the type of SR, the appropriate template should be used. 

For more information, visit the Sub-Recipient Management section of the Manual. 

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Agreements with Sub-sub-recipients

Sub-sub-recipients (SSRs) are Sub-recipients (SRs) of SRs. Engagement of SSRs carries high risks for UNDP, primarily because UNDP remains as fully accountable to the Global Fund for SSR activities as it is for SR activities, while having less control and oversight of them. Recent findings from Office of Audit and Investigations (OAI) audit reports of UNDP Principal Recipient Country Offices confirm that engagement and monitoring of SSRs remain a significant source of potential liability for UNDP. To minimize these risks, as well as to promote best practices, it is recommended that SSRs be engaged only in exceptional circumstances and that grant implementation activities be carried out by SRs or UNDP directly.  

Where SSRs ought to be engaged, the SR in question must undertake a capacity assessment and select an SSR (or SSRs), based on the results of the assessment, in a transparent and documented manner. It must then obtain UNDP’s written approval and clearance of each selected SSR. Each SSR agreement must be consistent with the terms of the SR agreement. This is the SR’s responsibility and, while the CO may offer or agree to review the terms of the SSR agreement, such review should not rise to the level of approval of the SSR agreement, as this might create the impression that UNDP is a party to the SSR agreement, thereby increasing the risk for the organization.      

Once the SSRs are engaged, UNDP must, at a minimum, make sure that the SR sets up adequate monitoring plans to oversee the activities of the SSRs.  

When SRs are audited, the expenses incurred by the SSRs that are engaged by the SRs are also audited.   

For specific legal requirements that must be met prior to the engagement of an SSR, please see Art. 28.1 of the template SR agreements with civil society organizations (CSOs) and government entities.  

Signing Legal Agreements and Requests for Disbursement

In accordance with the UNDP Internal Control Framework, Grant Agreements, as well as all other legal instruments such as Sub-recipient (SR) agreements, contracts and related documents (e.g. amendments to the above), should be signed by a UNDP Resident Representative (RR). However, the latter may delegate his or her signature authority to other senior UNDP officials in the country, such as a Deputy Resident Representative (DRR) and/or a Country Director (CD). This ensures that, when a RR is away, decisions can be made without delay and UNDP operations can run uninterrupted.   

The authorities delegated should be identified formally and in writing and accepted both by the delegator and delegate. The delegation should include the relevant sources of authority (e.g. the Financial Regulations and Rules and UNDP Programme and Operations Policies and Procedures (POPP)), the description of authorities being delegated, the effective date of delegation, and any specific limitations, such as restrictions on further delegation.  

The Global Fund must be notified about the officials authorized to act on behalf of UNDP. This is done by listing UNDP authorized representatives in the face sheet to the Grant Agreement. In addition, the Country Office (CO) must submit to the Global Fund a standard notification for signing legally binding agreements and/or requests for disbursements (templates available for Principal Recipient confirmation letter and CCM Funding Recipient confirmation letter). Finally, the CO must fill out a contact information form, required by the Global Fund and available through the Global Fund’s Partner Portal.   

UNDP and the Global Fund each keep a copy of the original signed Grant Agreement. However, since the delivery of original grant documents often takes time, an exchange of signed electronic copies usually takes place to effect conclusion of the Grant Agreement. As a rule, UNDP signs first and obtains in-country written acknowledgements from the Country Coordinating Mechanism (CCM) Chair and a civil society representative on the CCM. It then sends a signed copy to the Global Fund, along with a notification that the original grant documents are being sent.

Practice Pointer
All legal instruments must be signed by an authorized representative of UNDP. The Global Fund must be notified in writing about the officials at the CO authorized to sign on behalf of UNDP. Standard templates for confirmation of signatory authority (as Principal Recipient or CCM Funding Recipient ) should be used for this purpose.

Additionally, COs must submit the UNDP Authorization Letter Partner Portal Submitters , referred to as GED, to be recorded in the GF system. It is recommended to upload this document as well.

Once the Grant Agreement is signed, the CO should submit a copy of it and the related project document to GSSC revenue team and to the UNDP Global Fund Partnership and Health Systems Team (GFPHST).

Language of the Grant Agreement and other Legal Instruments

Grant Agreements and subsequent legal instruments concluded between UNDP and the Global Fund are always signed in English.  

All other legal instruments should be signed in one of the three working languages—English, French or Spanish. A courtesy translation into another language can be enclosed but not signed. Where the local context and requirements are such that an agreement must be signed in some other language, this can be done only by way of exception. In such cases, the following final clause should be added to both the working and other language versions of the instrument in question:  

“IN WITNESS WHEREOF, the Parties, through their duly authorized representatives, signed this [insert designation of the instrument, e.g. Agreement, Contract, MoU, or Amendment] in English and [insert language] in two (2) originals in each language at the place and on the date set forth below.  In the event of any ambiguity or conflict between the English and [insert language] language versions, the English version shall prevail.” 

Such a provision can be added to the face sheet of the Sub-recipient agreement, before the signature block. 

Amending Legal Agreements

Amendments to legal agreements may become necessary in situations where such agreements must be changed at any point during grant implementation or extended to complete activities.  

Amendments to the Grant Agreement are issued in the form of implementation letters. They must be cleared by the UNDP Global Fund Partnership and Health Systems Team (GFPHST) for operational issues and by the UNDP Office of Legal Services (OLS) for legal issues. 

With regard to other legal instruments, such as Sub-recipient (SR) agreements or procurement contracts, clearance by OLS and the UNDP Global Fund Partnership and Health Systems Team (GFPHST) is required only when substantive changes are introduced. Non-substantive changes, such as changes to the bank details or duration of activities, do not require clearance.   

SR agreements may need to be amended by using a standard template, in the following cases: 

Before introducing any amendments, the Country Office (CO) must ensure that the changes are consistent with the Grant Agreement. 

Each amendment should be accompanied by the relevant revised document (e.g. an updated face sheet or a revised work plan and budget) and clearly state that the latter replaces the existing annexes.  

Other Legal and Implementation Considerations

Logos and Other Markings

The UNDP name and emblem are protected by a General Assembly Resolution and reserved for the official purposes of the organization. Any authorized use should be consistent with UNDP’s policies, as outlined in the UNDP Brand Manual. 

Use of the Global Fund name and logo is subject to the terms set forth in the Agreement to License Trademarks (and the 2016 amendment) between the Global Fund and UNDP, which incorporate the Global Fund Identity Guide for Partners and must conform to certain specifications.  

The guidelines below should be followed when using the UNDP and the Global Fund names, emblems and other markings. 

Use of the UNDP logo by grant Sub-recipients (SRs) and partner organizations is subject to prior written consent. Vendors or providers of goods, including medical supplies, and services to UNDP cannot use the UNDP name or emblem for commercial purposes or goodwill, or otherwise without the written permission of UNDP, as outlined in the General Terms and Conditions for Contracts for Goods and/or Services. 

Description of UNDP projects and programmes funded by the Global Fund. All UNDP activities in the host country are carried out within the framework of projects of assistance to the government of that country. To reflect national ownership, the following description must therefore be used for all UNDP activities funded by the Global Fund:

“UNDP project in support of the Government of [insert name], funded by The Global Fund to Fight AIDS, Tuberculosis and Malaria.”  

UNDP and the Global Fund are distinct organizations and UNDP personnel should not use designations such as “UNDP/Global Fund project” or “UNDP/GF programme” to avoid confusion and misrepresentation. 

Titles of UNDP staff members and project personnel. UNDP staff members and project personnel are engaged by UNDP and not by the Global Fund. Hence, no reference to the Global Fund should appear in their titles. For example, the correct title is Project Manager, United Nations Development Programme, as opposed to UNDP/Global Fund Project Manager. 

Designation of UNDP Country Offices and Project Management Units. UNDP Country Offices (COs) and Project Management Units (PMUs) do not have any formal affiliation with the Global Fund. They are UNDP business units whose role is to implement UNDP projects funded by the Global Fund. Hence, the correct designation of a PMU is Project Management Unit, United Nations Development Programme, as opposed to Project Management Unit, UNDP/Global Fund.

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Intellectual Property Rights and Disclosure of Information

Under UNDP’s Standard Basic Assistance Agreements (SBAAs) with governments, as well as Special Fund Agreements and Technical Assistance Agreements, all intellectual property rights deriving from activities under UNDP’s programmes vest in UNDP. Confidential information cannot be used without UNDP’s consent, except as specified in the UNDP Information Disclosure Policy.  

Access to records and record retention

Pursuant to Art. 7(a) of the Grant Regulations, UNDP is required to maintain adequate programme accounts, books, records and other documents relating to the programme, to show without limitation all costs incurred under the Grant Agreement and the overall progress towards completion of the programme. UNDP must maintain the books and records in accordance with its regulations, rules, policies and procedures consistent with the International Public Accounting Standards. 

The UNDP retention period for accounting records is at least seven years after the date of the transaction (payment, recording date etc.). Hence, accounting records related to the programme should be retained for at least seven years. 

However, the Global Fund has a right to request in writing to the UNDP Headquarters that a document is retained for a longer period in order to resolve any claims. In such a case, the UNDP Global Fund Partnership and Health Systems Team (GFPHST) will provide guidance to the Country Office (CO) on record retention. 

A similar obligation is conferred on Sub-recipients (SRs). Each SR must keep accurate and current books and records, in addition to other documents regarding all expenditures incurred with UNDP funds, reflecting that all such expenditures are in accordance with the agreed work plan. The SR must maintain supporting documentation for each disbursement, including original invoices, bills and receipts.  

Like UNDP, the SR must maintain all records and supporting documents for a period of at least seven years from the document date. 

Practice Pointer

It is hard to overstate the importance of keeping and managing records pertaining to the use of grant funds. These records may be required for Local Fund Agent (LFA) verification, audits and investigations, grant closure, and other purposes. Failure to maintain good records may result in a substantial financial and legal exposure for UNDP. Proper care must be given to maintaining records for at least seven years from the document date, both at the CO and at the SR levels.

The Global Fund, either directly or through its LFA, may request certain supporting documents from the CO for the purpose of review and verification. Article 4.1 of the Framework Agreement provides that “…the Global Fund has the right to access non-UN Sub-recipient documents, including any supporting documents provided by non-UN Sub-recipients to UNDP, in line with UNDP guidance notes.”

The CO should cooperate with the LFA as much as possible. However, it is important to keep in mind that, under its regulations and in line with its guidance notes, UNDP cannot share the following documents and information:

  • Contracts for goods and services, long-term agreements or procurement documentation, including internal procurement review committee decisions, delivery notes signed with a UN agency, clearing documents or bills of lading;
  • Documentation that includes support documents for UNDP financial information, including:
    • Invoices paid by UNDP or any other UN agency
    • Cost estimates
    • Quotations
    • Payment vouchers or supplier invoices for UN
  • Contracts of employment and résumés/CVs, recruitment reports, results and competency assessments;
  • Attendance lists where workshop/training participants have signed for attendance allowance or per diems (paid by the UN);
  • Access to the Atlas/Quantum system, including ‘view only’ access;
  • Other documents and information falling under the exceptions set forth in the UNDP Information Disclosure Policy.

Any matters regarding the LFA are managed at the corporate level of the UNDP Global Fund Partnership and Health Systems Team (GFPHST). The CO is advised to contact the Team if any issue arises. 

Practice Pointer
UNDP may provide certain documents to the Global Fund upon request. However, each request must be reviewed to make sure that none of the exceptions to document access apply and UNDP regulations and guidance notes are fully observed.

Conflict of Interest and Anti-corruption Measures

Art. 27 of the Grant Regulations requires UNDP to maintain standards of conduct that govern the performance of its staff, Sub-recipients and suppliers, including the prohibition of conflicts of interest and corrupt practices in connection with the award and administration of contracts, grants, or other benefits, as set forth in, inter alia, the Staff Rules and Regulations of the United Nations, the relevant financial regulations and rules applicable to UNDP, the anti-fraud policy, and the relevant procurement policies and procedures. 

In line with UNDP Programme and Operations Policies and Procedures (POPP), Art. 27 prohibits conflicts of interest and corrupt practices in connection with the award and administration of contracts, grants or other benefits. 

It prohibits any person affiliated with the Principal Recipient (PR) (including staff, individual contractors, and counterpart government officials) from participating in the selection, award or administration of a contract, grant or other benefit or transaction funded by the grant, in which the person, members of the person’s immediate family or his or her business partners, or organizations controlled by or substantially involving such person, has or have a financial interest. Nor can persons affiliated with the PR participate in transactions involving organizations or entities with which that person is negotiating or has any arrangement concerning prospective employment.   

Practice Pointer
If the Country Office (CO) has knowledge or becomes aware of any actual, apparent or potential conflict between the financial interests of any person affiliated with the PR, the Country Coordinating Mechanism (CCM), the Local Fund Agent (LFA), or the Global Fund and that person’s duties with respect to the implementation of the programme, the PR must immediately disclose the potential conflict of interest to the Global Fund. COs should also notify the UNDP Ethics Office and the Programme Adviser of the UNDP Global Fund Partnership and Health Systems Team (GFPHST).

Issues related to corruption should be referred to the UNDP Office of Audit and Investigations (OAI).

Anti-terrorism Requirements

In accordance with Art. 3 of the Grant Regulations, UNDP is required to use all reasonable efforts to ensure that grant funds are not used to support or promote violence, aid terrorists or fund terrorist-related activity or organizations known to support terrorism or that are involved in money-laundering activities. This includes ensuring that Sub-recipient (SR) agreements contain the same commitment from SRs. 

UNDP will be required to cooperate, and to ensure that their SRs cooperate, with the Global Fund’s review of compliance with these requirements. For each grant, the Global Fund will screen four key organizations and individuals against certain specified terrorist lists and, during implementation, the Local Fund Agent (LFA) will be required to certify to the Global Fund, on at least an annual basis, that it has conducted random, periodic reviews of PR’s compliance with the obligation to ensure that each SR agreement contains the required SR certifications referred to above and to report its findings. 


Practice Pointer
Country Offices (COs) are advised to review the United Nations List of Terrorist Organizations at the earliest stages of SR assessments and regularly during grant implementation.

Payment of Incentives to Government Staff

UNDP adheres to the policy of the Joint Consultative Group on Policy on contracting of government personnel, which disallows direct payments to government staff for their additional work contributions on donor supported development projects. This guidance should not be confused with the standard practice of hiring nationals as UNDP staff, management or technical expertise with UNDP. 

UNDP may, however, engage in the following salary and payment supplementation schemes: 

UNDP would only engage in such schemes as part of a larger wage or civil service reform process (even in times of post-crises, such engagement would represent the initial stages of a longer-term reform strategy). A risk assessment should always be included in such engagement, with any direct service support provided for an agreed limited duration only, with an explicit and monitored exit strategy. 

Engagement in NSSS and NSPS is driven by UNDP’s national capacity development role and support. UNDP should not get engaged purely as a financial transfer mechanism to make direct salary payments to government officials. 

Engagement in NSSS or NSPS requires the approval of the Office of the Administrator and Regional Bureau concerned. When such engagement is contemplated by the Country Office (CO), the UNDP Global Fund Partnership and Health Systems Team (GFPHST) should be consulted. 

For more information on NSSS or NSPS, please refer to the UNDP Programme and Operations Policies and Procedures (POPP) guidance on personnel. 

Legal Framework for Other UNDP Support Roles

When UNDP is not named as Principal Recipient (PR), it may still be supporting capacity development of local entities through project planning and management, procurement and supply chain, finance, and human resources management. Below are examples of UNDP support beyond its PR role. 

  1. Support to the Country Coordinating Mechanism (CCM) as CCM funding recipient: Since the CCM generally has no legal personality and, as such, has no capacity to enter into binding agreements, it sometimes designates UNDP as an entity responsible for receiving and managing funds to support certain administrative costs incurred by it. In such cases, the Global Fund concludes an agreement with UNDP, using  standard terms and conditions for CCM Funding Agreement. The said standard terms and conditions also apply to regional coordinating mechanisms and steering committees. Please refer to the financial management section of the Manual for guidance on budgeting of CCM funds. 
  2. Support to the Global Fund constituencies as a constituency funding recipient: This engagement is similar to the CCM funding. The Global Fund provides financial support to the Board constituencies (e.g. a delegation of the state represented on the Global Fund Board) for communication, meeting, travel and staff costs incurred for intra-constituency functions. In such cases, UNDP is sometimes designated as an entity responsible for receiving and managing funds to support these costs. A set of standard terms and conditions for such engagements is currently being developed. If the Country Office (CO) is approached by the Global Fund or the government counterpart in relation to such an engagement, please contact the UNDP Global Fund Partnership and Health Systems Team (GFPHST) for support with legal and programmatic arrangements. 
  3. Support to Principal Recipients: In some cases, an entity acting as PR may engage UNDP to provide certain support services and help develop capacity in the areas falling under the Grant Agreement, including procurement, financial management, Sub-recipient (SR) management, and human resources, among others. In such cases, please contact the UNDP Global Fund Partnership and Health Systems Team (GFPHST) for guidance on the arrangements that must be put in place, including a project document, a cost-sharing agreement, and/or a memorandum for provision of services. 
  4. Support to governments: In some cases, a governmental entity implementing health programmes financed by sources other than the Global Fund may engage UNDP to provide certain support services and help develop capacity in certain areas, primarily procurement. In such cases, please contact the UNDP Global Fund Partnership and Health Systems Team (GFPHST) for guidance on the arrangements that must be put in place, including a project document, a cost-sharing agreement, and/or a memorandum for provision of services.