Dear colleagues,

in order to avoid further provocations and manipulations on the issue of ACSM component realization under the TB project of Global Fund (hereinafter referred to as GF), we inform you about the following:

General situation with the grant

• Within recent two months GF evaluated the principal recipient (hereinafter referred to as PR) and partially evaluated the previously selected subrecipients (hereinafter referred to as SRs) through the local agent, PriceWaterhouseCoopers auditing company.  We are happy to inform you that the evaluation has been successfully completed. Together with the SRs, the Foundation gave full and timely answers to more than 60 questions of the auditing company concerning the programme and administrative budget lines. 
• On 17 September 2010, the official report was sent to the GF to receive recommendations for PR and SRs about building the capacity to implement the project. We are waiting for recommendations of the GF in order to start the stage of grant negotiations. The Foundation has already hired and is still looking for specialists to prepare the required documents and pass the evaluation successfully. As of today, the Foundation has spent a considerable amount of money. We consider this to be an important contribution that will lead us to the necessary outcome.
• The application budget is still one of the main questions. Today we are waiting for the approval of the first phase budget from GF, the exact amount of which, including the ACSM component, is still unknown. The final decision will be made by the GF. However, we are happy to point out that during the evaluation we succeeded in defending the ACSM component budget – it wasn't cut.
• We are planning to conduct grant negotiations and conclude an agreement with the GF by the end of 2010.

Selection of subrecipient(s) for ACSM component realization

• The Foundation is planning a meeting of partners two weeks after the agreement between the GF and PR is signed, involving the best national and international ACSM experts. The aim of the meeting is to determine and accept the ACSM realization strategy. Relying on this strategy, the Foundation will decide how many tenders should be held and how many subrecipients should be selected.  Our main apprehension now is the competence of SRs to accomplish the performance targets. However, we are less interested in what company it is going to be. 
• Selection of the subrecipients is the prerogative of PR as the organization responsible for grant implementation. While choosing the subrecipients, the Foundation will follow the principles of transparency and objectivity. To provide an independent evaluation of the potential of the selected SR(s), the Foundation will engage independent foreign and national experts having no clashing interests.  All the organizations interested in the implementation of the ACSM component can take part in the tender. It is important for us that the selected SR is able to provide the result the entire country needs.
• It should be pointed out that the ACSM component is auxiliary in relation to the treatment and diagnostics components. The main task is to help detect TB cases and provide the patients with medical and social services as well as motivate them for full recovery.

Another task of ACSM is to build capacity of the organizations that protect rights of TB patients and vulnerable population groups who have no access to TB diagnostics and treatment. The Foundation hopes that after the five-year project is completed, powerful and professional organizations with better understanding of the difference between advocacy and manipulation will operate in the country on national and regional levels and will professionally protect people's interests.    

Budget for ACSM component

• In response to conjectures concerning the budget changes we report the following: the administrative budget for ACSM component had been initially included in the budget and remains so.

• At the moment, we are waiting for the final budget to be approved by GF. According to the GF demand, the first phase budget was cut by 10%. This cut didn't affect the ACSM component budget. It affected the administration expenses of PR and SRs.

Transparency

• At the next meeting of the National AIDS Council the Foundation will come out to inform the National AIDS Council about the real and not fictional situation with implementation of the ACSM component, and to report on the process of negotiations between GF and PR.   
•  The Foundation will send updated information to its partners on monthly basis to raise the awareness of partners and public about the process of signing the agreement between Ukraine and GF and other related issues.
•  We support the open dialogue and are ready to answer all the questions. You can ask them by e-mail with a copy to all the addresses. Answers to the questions will be published in the fortnightly mailing (p.2).

Yours sincerely,
Foundation for Development of Ukraine