The Grant Agreement defines a Sub-Recipient (“SR”) as an entity to which PR (UNDP) provides funding in order to carry out activities contemplated under the Program. In UNDP terms, a Sub-Recipient is the “implementing entity” or “contractor.”
It is important to distinguish between SRs and other entities that provide services in a project. The GFATM has stated that the following should be considered in determining whether an entity is a SR:
“A Sub-Recipient is a recipient of grant funds which performs any Program activities that would otherwise be expected to be directly undertaken by the Principal Recipient within the scope of its responsibilities as implementer of the Program. This includes entities that the Principal Recipient may engage to fulfill its minimum capacity requirements, which are assessed by the Global
Fund and set out in Global Fund Document “Guidelines for the Principal Recipient Assessment” (December 2, 2003).
Principal Recipients are not expected to be directly engaged in the manufacture and sale of goods, the establishment and use of mechanisms at an international level to facilitate the procurement of goods (such as mechanisms that would not ordinarily be developed by the Principal Recipient solely to undertake activities under the grant or grants), or the innovation and delivery of services that are not directly tied to Program interventions (for example, a Principal Recipient would not be expected to undertake the development and implementation of accounting or other financial software packages, but may be expected to undertake the development and implementation of a training course for medical personnel or supply management chains for program material).
Accordingly, entities contracted by the Principal Recipient to perform these activities (such as manufacturers, procurement agents for certain tasks, and certain service providers) should not be treated as Sub-Recipients.
This definition is intended as a guideline only. We note that the decision on whether to treat a contractor as a Sub-recipient or Sub-contractor under this definition will often be unclear. In cases which do not clearly fit within the definition, UNDP and the Global Fund will consult to reach a common
understanding with respect to the particular case in hand.”
For Guidelines and More Details Click Here
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