In partnership with the Global Fund since late 2002, UNDP is approved as a principal recipient in countries where exceptional circumstances and/or special emergencies exist, and when the Global Fund and Country Coordinating Mechanism have not found a suitable local entity. In countries where the UNDP Country Office is the principal recipient, UNDP assumes overall financial responsibility and accountability for the Global Fund grant. As principal recipient, UNDP engages national and local counterparts, known as sub-recipients, to implement grant activities. Such an arrangement is for a limited time, during which UNDP helps to build the capacity of one or more national candidates to become the the principal recipient. UNDP assists sub-recipients in developing the capacity and expertise to effectively manage and implement prevention, care and treatment services for AIDS, tuberculosis and malaria. UNDP is also involved in specific Health System Strengthening grants financed by the Global Fund.

To work effectively with sub-recipients, the UNDP Country Office should have a strong system and/or pertinent resources for identifying and assessing sub-recipients and for overseeing the sub-recipients once they have been engaged. Additionally, UNDP Country Officess need to be able to carefully address and manage any of the potential risks of working with sub-recipients.

Supporting sub-recipients in implementing an effective and sustainable programme, based on an understanding of their needs and challenges, is the ultimate goal of this toolkit.