ccm_ind_gov[1]._manual_english_16.8.7__

I. INTRODUCTION...................................................................................................................................... 4II. CCM PRINCIPLES.................................................................................................................................. 5III. CCM ROLES AND RESPONSIBILITIES.................................................................................................5

III.1 CCM ROLES AND RESPONSIBILITIES.....................................................................................................5III.2 ROLES AND RESPONSIBILITIES OF CCM MEMBERS................................................................................6III.3 RIGHTS OF CCM MEMBERS.................................................................................................................. 7III.4 RESPONSIBILITIES OF THE CCM CHAIR.................................................................................................7III.5 RESPONSIBILITIES OF THE VICE CHAIRS................................................................................................7III.6 ROLES AND RESPONSIBILITIES OF THE EXECUTIVE SECRETARY AND THE SECRETARIAT...........................8III.7 CCM TECHNICAL WORKING GROUPS, COMMITTEES AND AD HOC TEAMS...............................................9III.8 ROLES AND RESPONSIBILITIES OF GLOBAL FUND-RELATED PLAYERS OTHER THAN THE CCM................13

IV. STRUCTURE OF THE INDONESIA CCM-GF.....................................................................................15IV.1 CCM ORGANIZATIONAL STRUCTURE..................................................................................................15IV.2 INDONESIA CCM-GF LOGO................................................................................................................16IV.3. CCM RELATIONSHIPS WITH VARIOUS PARTIES RELATED TO CCM ROLES AND FUNCTIONS....................18IV.4 SELECTION OF CCM MEMBERS AND ALTERNATES..............................................................................19IV.5 ELECTION OF THE CCM CHAIR...........................................................................................................20IV.6 ELECTION OF THE CCM VICE CHAIR...................................................................................................22IV.7. CCM SECRETARIAT............................................................................................................................ 23

V. COMPOSITION OF THE CCM.............................................................................................................23V.1 MEMBERSHIP COMPOSITION...............................................................................................................23V.2 REPRESENTATION.............................................................................................................................. 24

VI. OPERATIONALIZATION OF CCM GOVERANCE PRINCIPLES........................................................24VI.1 CCM MEETINGS................................................................................................................................. 24VI.2 MONITORING, EVALUATION AND SUPERVISION.....................................................................................27VI.3 TRANSPARENCY AND INFORMATION EXCHANGE....................................................................................27VI.4 DEVELOPMENT OF GLOBAL FUND PROPOSALS.....................................................................................29VI.5 SELECTION OF THE PRINCIPAL RECIPIENT (PR)...................................................................................30VI.6 PROGRAM IMPLEMENTATION...............................................................................................................30VI.7 CAPACITY BUILDING........................................................................................................................... 30VI.8 CCM OPERATIONAL FUNDING.............................................................................................................31

VII HARMONISATION AND COORDINATION...........................................................................................31VIII CONFLICT OF INTEREST....................................................................................................................32

VIII.1 GENERAL PRINCIPLES....................................................................................................................... 32VIII.2 DEFINITIONS..................................................................................................................................... 32VIII.3 TRANSPARENCY AND DISCLOSURE......................................................................................................33VIII.4 PROCEDURE WHEN A CONFLICT OF INTEREST ARISES..........................................................................33VIII.5 MINIMIZING THE POTENTIAL FOR CONFLICT OF INTEREST.....................................................................34

VIII.6 Code of ethics for Indonesia CCM members……………………………………………………………39 VIII.7 Mitigation of Conflict of Interest……………………………………………………………………………39

IX. CCM ASSESSMENT............................................................................................................................. 34APPENDIXES

A. List of CCM Members 2007–2009 / Governance Manual EndorsementB. List of Members of Technical Working Groups, Financial Task Team, Oversight Committee and

Ethics & Conflict of Interest CommitteeC. Conflict of Interest DeclarationD. Grant Scorecard E. Assessment Tool

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Abbreviations

AIDS Acquired Immune Deficiency Syndrome

Bappenas National Development Planning Agency

CoI Conflict of Interest

CCM Country Coordinating Mechanism

FICT Financial Internal Control Team

FTT Financial Task Team

GF Global Fund

GFATM Global Fund for AIDS, Tuberculosis and Malaria

Ind-CCM CCM GFATM Indonesia

MoH Ministry of Health

MoU Memorandum of Understanding

NGO Non-Governmental Organization

PIM Program Implementation Manual

PR Principal Recipient

SR Sub Recipient

TB Tuberculosis

TRP Technical Review Panel

TWG Technical Working Group

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CCM-GFATM INDONESIA GOVERNANCE MANUAL

I. INTRODUCTIONThe Country Coordinating Mechanism (CCM) in Indonesia was established in 2002 for managing grants from the Global Fund to Fight AIDS, TB and Malaria (also referred to as the ‘Global Fund’, ‘GFATM’ or ‘GF’).

The CCM is a coordination mechanism or forum to access and manage the funds received from the GF to support and complement Indonesia’s funding and efforts to fight these three diseases. Indonesia’s CCM for GFATM grants is called the CCM GFATM Indonesia (Ind-CCM).

The Ind-CCM was established to fulfil one of the GFATM’s requirements for all proposals for funding support submitted to the GFATM; that is, the establishment of a national multisectoral coordination mechanism or partnership forum with a broad and representative membership drawn from elements of the government, non-governmental organizations or civil society and multilateral and bilateral institutions, international donors and international NGOs. These representatives each have the capacity, background and experience to play a key role in developing proposals, proposing funding allocations and monitoring implementation to ensure the effective utilization of the approved GF resources.

As one of the key elements in the Global Fund architecture/structure, the CCM is central to the Global Fund’s commitment to local ownership and participatory decision making in the management of grant funds. As a national-level partnership forum, the CCM develops, compiles and submits funding proposals to the Global Fund based on national priorities and needs. Once such proposals are approved by the GF, the CCM provides oversight over the progress of their implementation.

Since its establishment in 2002 up until the present time (March 2007), the Ind-CCM has made numerous decisions concerning:

a. the rules and procedures of the CCM;

b. the management and membership of the CCM;

c. its membership composition;

d. the rights and obligations of the CCM and its members;

e. the tasks and functions of the CCM technical working groups (TWG), committees and ad hoc teams;

f. guidelines on avoiding conflicts of interest within the CCM (the CCM Conflict of Interest policy);

g. the procedures for the selection of the Principal Recipients;

h. the procedures for reviewing proposals and quarterly, semi-annual and annual progress reports on the implementation of GF grants for each component;

i. the formation of the CCM Oversight Committee and problem solving by CCM ad hoc teams; and

j. CCM efforts to assist the PR on addressing management issues in the implementation of the grant through the provision of technical assistance from domestic or international consultants supported by international donors.

These CCM decisions and guidelines needed to be collected in a comprehensive Governance Manual to provide clear guidelines not only to the CCM itself but also to the Principal Recipients and Sub-Recipients.

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This Governance Manual was compiled, approved and endorsed by CCM Indonesia as a guideline and a reference, and is binding upon the CCM Secretariat, the CCM Chair and Vice Chairs, all members of the CCM, all Principal Recipients and all Sub-Recipients in relation to the implementation of GFATM grants in Indonesia.

II. CCM PRINCIPLESAccording to the Global Fund framework document, programs supported by GF funding reflect the strategic priorities of the country to reduce the burden of AIDS, TB and Malaria, as articulated in the national policies of the National AIDS Commission, the National Integrated Movement to Tackle Tuberculosis and Roll Back Malaria. These national strategies and objectives are closely linked and are an integral part of various national initiatives including the Poverty Reduction Strategy (PRS) and Sector Wide Approaches (SWAps)

The CCM membership upholds the principles of broad representation, including the participation and inclusion of diverse parties, and equal opportunities for all members to participate actively in democratic decision making processes, guaranteed by mechanisms that ensure gender equity, openness and transparency between all the partners involved, and efficient and successful implementation.

III. CCM ROLES AND RESPONSIBILITIESIII.1 CCM Roles and Responsibilities The CCM has the following general roles and responsibilities:

To prepare, discuss, approve and submit proposals to the Global Fund, or to other funding sources approved by the CCM;

To organize and coordinate the participatory development of proposals and integrate them into a single national CCM proposal, and to submit them to the Global Fund in a timely manner;

To monitor, guide and support the implementation of the projects funded as the result of proposals from the CCM;

To ensure the efficient and effective implementation of said projects; and

To ensure a strong linkage between GF grants and the national policies on tackling AIDS, TB and Malaria, as well as other national policies related to poverty reduction and MDGs, and to encourage the sustainability of national programs.

To support the above, the roles and responsibilities of the CCM in detail are as follows:

1. To develop, approve, implement and amend this Governance Manual.

2. To serve as the supreme body responsible for determining strategic aspects of how GF activities shall be conducted in Indonesia without being involved in the micro-management of the PR or SR.

3. To oversee and coordinate the preparation and submission of proposals to the Global Fund that meet the requirements stipulated by the Global Fund and are consistent with national priorities and programs concerning HIV/AIDS, tuberculosis and malaria.

4. To respond promptly and adequately to enquiries from the Global Fund concerning the proposals submitted by the CCM to the GF.

5. To respond promptly and adequately to enquiries from the GF concerning the CCM.

6. To propose the nomination of the Principal Recipient(s) to the Global Fund for the approved grants.

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7. To ensure that the PR and the SR use efficient, transparent and accountable mechanisms for the purchase of drugs and other products using funds originating from the GF, based on the guidelines in the Program Implementation Manual (PIM) .

8. With the assistance of the CCM’s Financial Task Team, to ensure that the PR and SR use efficient, transparent and accountable mechanisms to disburse GF funds from the PR to the SRs or implementing organisations.

9. With the assistance of the three permanent Technical Working Groups and the Financial Task Team, to monitor and evaluate the performance of the PR with regard to grant implementation.

10. To delegate to the PR the responsibility for monitoring and evaluating the performance of SRs, with additional verification and evaluation by the Financial Task Team, and the possibility of assigning the Oversight Committee when unsatisfactory performance or problems in implementation are indicated.

11. To approve major changes in grant implementation plans as proposed by the PR.

12. With the assistance of the three permanent Technical Working Groups and the Financial Task Team, to assess progress reports from the PR prior to their submission to the Global Fund.

13. With the assistance of the three permanent Technical Working Groups and the Financial Task Team, to review the implementation of GF grant activities for the first five quarters of implementation and, if financial and program performance are satisfactory, to request continued funding from the Global Fund for each approved grant, prior to the end of the two years of initially approved funding.

14. To fulfil the other responsibilities as outlined in this Governance Manual.

To ensure that these roles and responsibilities of the CCM are properly fulfilled, a CCM Secretariat, led by a CCM Executive Secretary, shall be established, whose roles and responsibilities shall be to support and facilitate the roles and functions of the CCM.

III.2 Roles and Responsibilities of CCM MembersEach CCM Member must be willing to accept the following responsibilities:

a. To respect and comply with this Governance Manual, and to other CCM-endorsed policy documents that are referenced in this Governance Manual.

b. To attend and participate in all CCM activities, such as meetings, supervision and advocacy.

c. Within the CCM, to freely share relevant experience and information.

d. To respect and comply with CCM decisions.

e. To regularly deliver important information and decisions to the organizations and constituents within the Sector that the Member represents.

f. Within the CCM, to fairly and accurately represent the views of the Sector that the Member represents, rather than the Member’s personal views or those of the organization to which the Member belongs.

g. Within the CCM, to openly declare any potential conflict of interest when the CCM is to discuss an issue related to the Member, and to voluntarily leave the room while the CCM discusses that issue. Any CCM Member shall have the responsibility to declare a potential conflict of interest concerning any other Member, provided that it is supported by authentic evidence. If the CCM agrees, the Member concerned shall be asked to leave while the issue is being discussed.

h. To comply with the Indonesia CCM Code of Ethics, which is separate to this Governance Manual.

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The roles and responsibilities above shall also apply to Alternates.

III.3 Rights of CCM Members Each CCM Member represents the constituents in a particular Sector; while the CCM Chair and Vice-Chair are individuals who represent the CCM members.

Each CCM Member has the following rights:

a. The right to be treated as an equal partner in the CCM, with full rights of expression.

b. The right to participate in all discussions and activities of the CCM.

c. The right to sign, or to decline to sign, proposals submitted by the CCM to the Global Fund (provided that a CCM Member that declines to sign such a proposal provides clearly articulated reasons, which are recorded in the minutes).

d. The right to vote on any matter that needs to be put to a vote.

e. The right to propose CCM Members for the position of Chair and Vice-Chair.

f. The right to receive compensation for travel expenses incurred to attend CCM meetings or when taking part in other CCM activities, or when undertaking assignments for the CCM in other parts of the country or overseas.

The rights above shall also apply to Alternates, except for items c. and d., which shall only be exercised in the absence of the Member or if the Member delegates such rights to the Alternate.

III.4 Responsibilities of the CCM ChairThe responsibilities of the Chair are to act as specified in this Governance Manual:

a. To work with the Vice Chairs in chairing the CCM.

b. To convene and chair CCM meetings.

c. To propose and seek approval for the agenda of each CCM meeting.

d. When necessary, to delegate certain responsibilities and decisions to the Vice Chairs.

e. To act as the spokesperson for the CCM.

f. To exercise oversight over the CCM Secretariat on behalf of the CCM.

g. To co-sign reports sent to the Global Fund.

III.5 Responsibilities of the Vice ChairsThe responsibilities of the Vice Chairs are to act as specified in this Governance Manual, and in particular:

a. To work with the Chair of the CCM.

b. To serve as Acting Chair when requested to do so.

c. To perform the tasks delegated by the Chair of the CCM.

d. To co-sign, with the Chair of the CCM, certain reports to be sent to the Global Fund.

e. To commence and chair CCM meetings until the Chair arrives, if the Chair has not arrived within 15 of the scheduled start time, and if a quorum is present.

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III.6 Roles and Responsibilities of the Executive Secretary and the Secretariat The CCM Secretariat shall not play any role in grant implementation. Its role shall be solely to serve the CCM and help the CCM and the CCM Chair to function effectively.

The responsibilities of the CCM Secretariat are:

a. To coordinate meetings of the CCM and its working groups, committees and ad hoc teams, including the preparation of draft agendas, issuing meeting reminders, ensuring that meetings are only attended by people eligible to do so according to this Governance Manual, and preparing draft minutes.

b. To distribute all documentation to CCM Members and Alternates in a timely manner.

c. To make all documentation of the CCM available to the public, unless the information is embargoed.

d. To forward all required documentation regarding Global Fund grant implementation to the Global Fund.

e. To ensure that the PR submits all reports and other documentation to the CCM as required in the grant agreement, and forwards it to the Global Fund.

f. To maintain and update distribution and mailing lists.

g. To organize and store all CCM minutes, documents, correspondence and other records.

h. To facilitate responses to enquiries from the Global Fund and CCM Member Organizations.

i. To facilitate the work performed by proposal-writing teams, proposal review teams, Technical Working Groups, committees and ad hoc teams of the CCM.

j. To respond to routine public inquiries regarding Global Fund matters under the guidance of the CCM, and to consult with the CCM Chair and Vice Chair on how to respond to non-routine public inquiries.

k. To carry out other functions that are specified in this Governance Manual or requested by the CCM or the CCM Chair.

The CCM Executive Secretary shall be supervised by the CCM Chair on behalf of the CCM. The tasks of the Executive Secretary are:

a. To appoint and supervise such CCM Secretariat staff as are specified in the CCM-approved Secretariat workplan and budget.

b. To ensure that the CCM Secretariat carries out the responsibilities described in this Governance Manual.

c. To attend all CCM meetings in a non-voting capacity, and serve as Secretary for these meetings.

d. To provide written or verbal reports to the Chair and Vice Chair regarding the work of the Secretariat and any challenges encountered.

e. To assist the Chair and Vice Chair, when requested, to perform their functions effectively.

f. To deliver—as one of the papers circulated in advance of each Plenary Meeting of the CCM—a report describing the activities of the CCM Secretariat since the previous plenary meeting, and describing any challenges encountered. The Chair and Vice Chair shall not have the right to edit or control the contents of this report.

g. To answer any questions raised at each Plenary Meeting about this report.

h. To carry out other functions that are specified in this Governance Manual or requested by the CCM or the CCM Chair.

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The CCM has the right to specify additional details regarding:

(a) The CCM Secretariat budget;

(b) The recruitment of the CCM Executive Secretary and other Secretariat staff, as well as their compensation, termination and working arrangements;

(c) The CCM Secretariat job descriptions; and

(d) The performance assessment of the CCM Secretariat personnel.

Items (a), (b), (c) and (d) above cannot be overruled by whatever entity hosts the CCM Secretariat.

III.7 CCM Technical Working Groups, Committees and Ad Hoc TeamsTo ensure that it can carry out its roles, functions and responsibilities effectively, the CCM shall establish permanent technical working groups, permanent committees and ad hoc teams as needed. For each of these, the CCM shall approve the Terms of Reference (TOR) before the group, committee or team begins its work. The technical working groups and permanent committees shall have a permanent term during the implementation of the GF grant, while ad hoc teams will be established for a limited period and will be dissolved upon completion of their assignment. The Terms of Reference for each group, committee or team shall be drafted by the CCM Secretariat and approved by the CCM during a plenary meeting.

Responsibilities

Each working group/committee/team performs the tasks assigned to it by the CCM. Their role is usually to study a particular issue or problem and then make recommendations to the CCM. However, the CCM may, if necessary, authorize the working group/committee/team to make decisions, although the CCM reserves the right to annul such decisions.

Composition

The composition of each working group/committee/team is specified by the CCM, except when the CCM:

Specifies that the membership is open to any interested Member and/or Alternate, or

Requests the CCM Chair and Vice Chairs to jointly select the members.

Members of CCM working groups/committees/teams are individuals, not organisations. These individuals need not be Members or Alternates, but the working group/committee/team chair must be a Member or Alternate, and must be chosen by the CCM.

Procedure for permanent/ad hoc committee or working group meetings

Decisions in any working group/committee/team meeting shall be made by a simple majority vote. The quorum for each working group/committee/team meeting is 50 per cent of the members. Each working group/committee/team shall provide regular reports on its activities to the CCM.

Permanent working groups and committees provide periodic reports to the CCM.

Each ad hoc team decides how it will operate, and after completing its assignment submits a report to the CCM (and if necessary, at periodic intervals prior to completion of the assignment).

Minutes of permanent/ad hoc committee/working group meetings

The draft minutes of formal meetings and any decisions made must be prepared and disseminated to all members within one week after the meeting. The draft minutes are discussed, and if necessary amended, and confirmed at the next meeting. The draft minutes of meetings are confidential.

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The confirmed minutes of formal meetings shall, if requested by the CCM or the CCM Chair, be distributed to all CCM Members and Alternates by the CCM Secretariat within one week after said minutes have been confirmed.

All minutes of CCM working group/committee/team meetings shall be filed by the CCM Secretariat.

III.7.1 Technical Working Groups (TWG)Purpose and Objectives

Technical Working Groups are permanent bodies that are established for each of the three diseases (AIDS, Tuberculosis and Malaria) and given a mandate by the CCM to meet to discuss/review and endorse certain proposals, reports and other documents and carry out the assignments given to them. All formal activities/meetings are documented and reported to the CCM.

Composition

1. Chair: a CCM member who is elected by the members of the TWG either through consensus or by a vote.

2. Members: (i) CCM members who are appointed by the CCM.

(ii) Non-CCM members who are selected from the professional sector by the TWG.

The chair and members shall be appointed for a two-year term and may be replaced at any time during their term.

Roles and Responsibilities

a. To review and make recommendations to the CCM on proposals that will be submitted to the GF or other funding sources.

b. To review and make recommendations to the CCM on requests for continuing funding.

c. To review the program implementation performance of the PR through:

i. Quarterly work plans: review and endorse work plans that will be submitted to the GF or other funding sources.

ii. Quarterly progress reports: review and endorse progress reports that will be submitted to the GF or other funding sources. The recommendations shall include comments on grant performance using the overall grant rating/grant scorecard.

iii. Annual work plans and reports: review and make recommendations to the CCM on annual plans and reports that will be submitted to the GF or other funding sources.

iv. Regular site visits (at least twice a year).

d. If a quarterly progress report or workplan cannot be endorsed, to ask the PR to make improvements and return the amended document to the TWG for approval.

e. In reviewing the overall program performance of the PR and acting as the EARS (Early Alert Response System) of the CCM, to coordinate closely with the FTT. FTT members should be invited to attend the quarterly meetings of the TWG.

f. If any oversights, mismanagement, problems or suspected violations are found in the implementation of GFATM programs in Indonesia, to recommend to the CCM that the matter be followed up by the Oversight Committee.

g. To report all results of their work to the CCM at each plenary meeting of the CCM.

The operational expenses of a TWG shall be charged to the operational budget of the CCM.

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III.7.2 Financial Task Team (FTT)Purpose and Objectives

The FTT is a permanent CCM committee established to strengthen the CCM’s financial oversight function over PRs and SRs, strengthen the monitoring and financial management systems of GF implementation, and support the Financial Internal Control Team (FICT—this is part of the finance division of the institution from which the PR originates) in conducting internal control of GF ATM Grantees (PRs and SRs). All activities/meetings must be documented and the results of all the work of the FTT must be reported regularly to the CCM and to the TWG for each disease.

Composition

1. Chair: CCM Member from the Ministry of Finance.

2. Members: (i) CCM Members

(ii) Non-CCM Members from the following constituents:

GoI constituents: Ministry of Finance, the National Development Planning Board (BAPPENAS), Inspectorate General of the MoH;

Donor constituents: Financial specialists from the European Commission, UN organizations and KNCV;

NGO/University constituents: 2 financial/accounting specialists from the NGO community (to be decided).

This composition and leadership of the FTT will be reviewed after 6 months to ensure effectiveness.


a. To review and endorse, on behalf of the CCM, PR’s (and SR’s) quarterly and monthly financial progress updates.

b. To review and endorse disbursement requests prior to submission to the LFA by the PR.

c. To provide advice to the CCM on whether subsequent quarterly payments should be effected and/or additional information needs to be provided.

d. To monitor the follow up of external audit report findings and recommendations.

e. To conduct spot checks of the PR/SR, where possible with the respective TWGs. The reporting schedule for the spot checks will be reflected in the work plan of the FTT and CCM.

f. To undertake initial investigations of potential fraud, abuse, misappropriation, corruption and mismanagement as authorized by the CCM, and request expert assistance if necessary.

g. To review the overall financial management system and provide recommendations for improvement or procedures to strengthen the mechanisms.

h. To review internal control procedures, including the development of mechanisms for addressing issues of financial misappropriation and reporting of potential fraud.

i. To keep the CCM Chair and its members fully informed of the overall financial situation under the Global Fund PR/SR, based on inputs from the FICT’s and audit findings, through quarterly progress reports to the CCM and other communications as deemed appropriate.

j. In reviewing the overall financial performance of the PR and acting as the EARS (Early Alert Response System) of the CCM, the FTT should coordinate closely with the TWG. TWG members should be invited to attend the quarterly meetings of the FTT.

k. If any oversights, mismanagement, problems or suspected violations are found in the financial management of GFATM programs in Indonesia, to recommend to the CCM that the matter be followed up by the Oversight Team.

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The operational expenses of the FTT shall be charged to the operational budget of the CCM.

III.7.3 Oversight CommitteePurpose and ObjectivesThe Oversight Committee is a permanent CCM committee established to review reports on any indications of oversight, mismanagement, problems, or suspected violations of the rules and procedures arising in the GFATM program implementation in Indonesia to ensure that the programs yield good programmatic and financial performance with reference to the agreed objectives and based on the principles of good governance, accountability and transparency. In the event of any problems being found by a TWG or the FTT, the CCM shall authorize the Oversight Committee to follow up and verify such issues and provide recommendations on actins to be taken. The Oversight Committee serves as a bridge and investigative body between the TWG or FTT and the CCM. Its role is to receive reports from these bodies and others on possible mismanagement or problems, investigate, and submit its findings to the CCM.

Composition

The Oversight Committee shall comprise a Chair, seven members and a two-member secretariat. The National Audit Agency (BPKP) shall also participate.

1. Chair: A CCM Member who is appointed by the CCM.

2. Members: (i) 7 CCM Members who are appointed by the CCM.

(ii) Non-CCM Members from BPKP (the National Development Finance Comptroller).



a. To review and verify reports on indications of any oversight, mismanagement, problems, or suspected violations arising in the implementation of GFATM programs, based on:

i. Evaluation reports from the LFA, consisting of periodical progress report, financial reports, procurement reports, human resources management reports, and other special reports.

ii. Issues submitted by the TWGs and FTT.

iii. Issues submitted by whistleblowers.

iv. Other specified issues.

b. To conduct meetings and/or site visits in order to gather information and verify issues/findings from the above reports when necessary.

c. To submit the recommendations from the results of such reviews, meetings and visits to the CCM.

d. To monitor the follow-up actions by all concerned parties to address the findings.

Committee activities shall be funded from the CCM’s operational budget and other eligible sources.

III.7.4 Ethics and Conflict of Interest CommitteePurpose and Objectives

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The Ethics and CoI Committee is a permanent committee established to prevent, monitor and address any violations committed by CCM members, including the Chair, Vice Chair, Executive Secretary, PR and SR, with regard to ethics and the CCM’s Conflict of Interest policy in the implementation of GF grants in Indonesia to ensure fairness and transparency in the CCM’s decision making and to protect its integrity, reputation and interests, and in turn to ensure broad public trust and confidence in the CCM’s decision making and grant implementation activities.

Composition

The Ethics Committee shall comprise selected CCM members (three members) and two legal professionals who are not CCM members.

1. Chair: A CCM Member who is appointed by the CCM.

2. Members: (i) 3 CCM Members who are appointed by the CCM.

(ii) 2 non-CCM Members from the legal profession.



a. To review all reports from the CCM, PRs and SRs with regard to violations of the CCM’s code of ethics.

b. To provide recommendations to the CCM regarding issues related to violations of the code of ethics and any confirmed or potential conflicts of interest.

c. To monitor particular tasks and meetings of the CCM and conduct spot checks as necessary.

The Ethics Committee shall be funded from the CCM’s operational budget.

III.7.5 Ad Hoc TeamsAd Hoc Teams may be formed by the CCM at any time in response to the needs of the CCM.

III.8 Roles and Responsibilities of Global Fund-related Players other than the CCM

The other GF-related players referred to below have the following roles and responsibilities:

III.8.1 Global Fund (GF) a. Serves as a financial instrument, not an implementing agency.b. Attracts, manages and disburses money through a public-private partnership in a

way that will make a sustainable and significant contribution to the reduction of infections, illness and death from HIV/AIDS, TB and malaria.

c. Signs grant agreements with the PR.d. Approves and makes disbursements to the PR.e. The GF may provide important information to the CCM regarding various issues

related to the implementation of GFATM grants, directly from the GF Secretariat or through the LFA, at the request of the CCM.

III.8.2 Local Fund Agent (LFA)a. Serves as the GF’s ‘eyes and ears’ in Indonesia, after being selected by the GF

and signing a contract with the GF.

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b. On behalf of the GF, evaluates the financial management and administrative capacity and performance of the PR, as well as the performance of the SR if requested by the GF.

c. Does not make managerial decisions. Instead, sends reports to the GF that may contain recommendations regarding decisions that may need to be made by the GF, such as whether to approve a further disbursement regarding a particular grant, or whether the requested disbursement is for an appropriate amount.

d. The LFA and the CCM, through the CCM Secretariat, shall exchange urgently needed information without interfering with or diminishing the independence of either party.

III.8.3 Principal Recipient (PR)The Principal Recipient(s) shall serve as the principal recipient, implementer and party responsible for the grant in accordance with the national CCM proposal that has been approved by the Global Fund. The PRs are selected and confirmed by the CCM with the following conditions:a. PRs are chosen afresh for each new GF grant.

Note 1: For each grant, the CCM can, if necessary, request in the original proposal that more than one entity shall serve as the PR.

Note 2: It is very rare for the PR, or for a number of PRs, to change once a particular grant has started. Such an action would require the agreement of both the CCM and the GF, and would also require the termination of an existing contract between the GF and the PR.

b. Is required by the GF to have a defined level of competence and capacity in four areas:

financial management and systems, institutional and programmatic (organisational and program management), procurement and supply management,monitoring and evaluation.

c. Signs a Grant Agreement with the GF on behalf of the CCM. This agreement specifies actions to be taken, costs to be incurred, and results to be achieved.

d. Is responsible to the GF for the implementation of the grant.e. In accordance with the reporting schedule stipulated in the PIM, submits regular

program and financial progress reports (including Disbursement Requests) to the GF, through the LFA, after being reviewed and endorsed by TWG and the FTT. ,

f. Submits to the CCM the full text of the quarterly report assessments by the LFA and any other special reports related to the results of audits by the LFA, the auditor, etc.

Legal status of the PR

1. The PR has the authority to select and to replace/terminate the Sub-Recipient. This legal right does not mean that the CCM has no role in this process, but it is intended that the final decision regarding this matter rests with the PR. The CCM may recommend sub-recipients as program implementers after they have been assessed by a CCM team. Moreover, in many instances a sub-recipient that is nominated will be more suitable as a program implementer because it has

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participated since the development of the proposal. The PR nevertheless has sole responsibility to the Global Fund for the performance of the program, such that if the sub-recipient does not demonstrate satisfactory performance or if it deviates from the contract with the PR once program implementation has begun, the PR has the right and the obligation to take immediate action to resolve the problem, including if necessary by replacing the sub-recipient.

2. The PR and the sub-recipient may be members of the CCM. If this is the case, the CCM must have a written plan to mitigate conflicts of interest. This plan must also address inherent conflicts of interest that arise if the CCM has to make a decision on matters relating to the role of the PR and the SR in the implementation of the program; for example, the PR and the SR shall not be allowed to participate in matters related to the oversight of program funding, particularly administrative funding for the PR or SR, or in decisions recommending changes in the participation of the PR or SR. CCM members from such a PR or SR shall not be members of oversight committees.

3. There are two categories of changes that deviate from the original proposal and require reprogramming:3.1 Minor changes made by amending the grant agreement between the PR

and the GF Secretariat or by amending the program budget or workplan. This can be done at the initiative of the CCM, or by the PR after consulting with the CCM, after which the PR shall decide, with the GF Secretariat, to reprogram the funds, ensuring that such reprogramming does not conflict with the goals of the proposal before approval was given for the amendment.

3.2 Major changes require discussion at the CCM and then further discussion and assessment by the GF Technical Review Panel (TRP). The GF Secretariat shall ask the TRP to ensure that such a major change is in line with the technical standards specified in the original proposal, and the TRP and the GF Secretariat will also seek the CCM’s assurance that such major change is consistent with the wishes of the country.

III.8.4 Sub-Recipient (SR)a. Is an organization or entity that signs a contract or MOU with the PR specifying

that it will implement certain grant activities and will receive an amount of GF funding, and is required to provide reports regarding these activities.

b. One or more organizations may be proposed to the PR as candidate Sub Recipients. The PR is required to inform the CCM of all the candidates. To ensure transparency in the Sub Recipient selection process, the SR is selected from among the nominated candidates by the Sub Recipient Selection Team that consists of the PR together with certain members of the CCM. The SR is selected on the basis of the criteria that are articulated in the PIM and based on GF provisions. During the SR selection process, the CCM may give recommendations; however, the final decision and legal confirmation rests with the PR.

c. The SR may outsource some of the activities stipulated in its contract/MOU with the PR to certain other implementing organizations; however, the legal responsibility for all and any consequences is borne by the PR.

IV. STRUCTURE OF THE INDONESIA CCM-GF

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IV.1 CCM Organizational StructureThe Indonesia CCM, like CCMs in other countries, was established as an instrument or partnership forum comprising several representative constituents who are drawn from government, non-government and international institutions to perform the roles and functions described in the previous chapter, and not as particular organisations or entities or institutions. The structure intended here is functional, so that the roles and functions and responsibilities can be carried out effectively and efficiently. For this purpose there is Management Board comprising a Chair and a Vice Chair, who are assisted by an Executive Secretary who executes the day-to-day tasks and facilitates various decisions of the CCM with the support of the CCM Secretariat. To enable it to function effectively, efficiently and productively, the CCM is supported by various committees, working groups and ad hoc teams as needed. The CCM can also seek and provide consultants needed by the CCM or the PR.

Functional organisation structure of the Indonesia CCM–GF

IV.2 Indonesia CCM-GF Logo

CCM ChairCCM Vice Chair

TB TWG MALARIA TWGAIDS TWG

Executive Secretariat

Principal Recipient, AIDS & TB Component

Principal Recipient, Malaria Component

GF ATMGENEVA

Local Fund Agent (LFA)

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The design of the CCM logo was based on the CCM's role and function as a country-level partnership. The entire logo looks like an eye, symbolizing oversight and monitoring. The three circles linked to each other symbolize coordination and collaboration, while the main circle symbolizes unity. The two curved lines facing each other symbolize the continuity of the fight against the devastating diseases of AIDS, TB and Malaria.

SUPERVISION and CONTINUITY

The two curved lines symbolize the effective and consistent supervision of approved program implementation and its continuity.

COORDINATION and INTEGRITY

The small circles symbolize coordination and collaboration, and the main circle symbolizes unity and integrity.

CCM for the GLOBAL FUND

The red, yellow and blue colours of the letters are consistent with the colour of the Global Fund logo.

NAME of FORUM

Country Coordinating Mechanism Indonesia

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IV.3. CCM relationships with Various Parties Related to CCM Roles and Functions

IV.3.1 Reporting/communication relationships prior to grant approval

IV.3.2 Contractual/MoU relationships

Global Fund

Prospective PR

CCM

Prospective SR Prospective SR

LFA

TWG/HIV

CCM Secretariat

TWG/TB TWG/malaria

Multi-sector membership: GoI, development partners, NGOs, civil society, faith-based organizations, professional associations, the research sector, universities

Other stakeholdersNational M&E systems

SR SR

Global Fund

PR PMU Team

CCM

SR SR

LFA

TWG/HIV

CCM Secretariat

TWG/TB TWG/malaria

Other stakeholdersNational M&E system

SRSR

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IV.3.3 Reporting/communication relationships after grant approval

IV.4 Selection of CCM Members and AlternatesThe selection of CCM Members and Alternates

1. The CCM is comprised of members who represent various Sectors. These Sectors are the GoI; civil society/NGOs; people living with or affected by HIV/AIDS, TB and malaria; faith-based organizations; community organizations; the private sector; professional associations; research institutes and universities; and international agencies including multilateral or bilateral agencies, international donors and international NGOs.

2. Within each of the Sectors above, organisations that are interested in and working on issues related to HIV/AIDS, TB and/or malaria can choose one or more organisations which shall then select one person to serve as a CCM Member who represents that Sector on the CCM. One other person is selected to serve as an Alternate. The number of CCM Members and CCM Alternates chosen by each Sector shall be exactly the same; each ‘CCM seat’ shall have one Member and one Alternate.

3. The selection process must be developed within the Sector, and must be conducted in a transparent and inclusive manner based on clear criteria. The criteria, the selection process and the results of the selection process shall be documented within the Sector. That document must be sent to the CCM Secretariat, which will pass it to CCM Members and make it publicly accessible. The CCM cannot dictate the process to be used, other than that it must be transparent, inclusive and based on clear criteria

4. In the event of a dispute within a Sector over the selection process that cannot be resolved within that Sector, the Chair and the Vice Chair of the CCM shall appoint an ad hoc team to investigate and make a report with recommendations to the Chair and the Vice Chair.

Global Fund

PR

CCM(Chair, Vice Chairs &

Members)

PMU TeamLFA

AIDS/TB/MAL TWGs

CCM Secretariat

FTT

Ethics & CoI Comm.

Oversight TF

Ad hoc Teams

Sub-recipient

Sub-recipient

Sub-recipient

Sub-recipient

Sub-recipient

Sub-recipient

GENEVA

INDONESIA

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5. Each Sector shall decide whether all of its CCM Members are to represent the entire Sector, or each CCM Member is to represent just one part of that Sector, while other CCM Members represent other parts of the Sector.

6. For each CCM Member there must be an Alternate, who shall also represent their Sector at CCM meetings.

7. For non-GoI Sectors, the Member and the Alternate may be from the same organization or from different organizations within the same Sector. However, for GoI, the Member and the Alternate must be from within the same organization.

8. The Member and the Alternate must be acceptable to the Sector, and must be sufficiently senior that they are able to speak for their Sector at CCM meetings.

9. The Member and the Alternate have an obligation to attend all CCM meetings. If both the Member and Alternate attend a meeting, only the Member has the right to vote and the Alternate and Member must speak with once voice. If the Member is not present, the Alternate is entitled to vote.

IV.5 Election of the CCM ChairThe Chair of the Indonesia CCM is elected directly. All CCM members have the right to be elected and to vote irrespective of whether they represent the GoI or non-GoI Sectors.

CCM members representing multilateral/bilateral agencies, international donors or international NGOs shall not exercise their right to stand as candidates for the CCM Chair or Vice Chair.

Candidates for CCM Chair shall not come from the same organization as a PR or SR.

The election of the CCM Chair is organized by a CCM Chair and Vice Chair Election Committee. The chair and vice chair, secretary and members of the Election Committee shall be appointed by the CCM.

The CCM Chair shall be elected through a two-round process.

First Round

The first round of this election process shall be carried out by all CCM Members, each of whom shall vote for a CCM Chair candidate through a secret ballot.

All ballot papers shall be placed in the ballot box and the Committee, witnessed by three CCM Members from each constituency, shall open, read, record and count the results of the first round of the election, and announce the three candidates with the highest number of votes.

Second Round

Each candidate shall introduce her/himself, stating their plans if elected.

Each candidate shall declare her/his commitment to avoid, prevent and address any conflict of interest in the discharge of their duties as CCM Chair by signing a Conflict of Interest Declaration.

Each CCM Member who has the right to vote shall choose one of the 3 candidates for the Chair on the ballot paper that has been prepared and declared legal, then place it in a sealed envelope and put it in the ballot box.

The Committee, witnessed by three CCM Member witnesses from each constituency, shall open, read aloud, record and count the results of the second round of voting.

The Chair/Vice Chair of the Election Committee shall announce the winner with the highest number of votes as the CCM Chair Elect.

The handover of the CCM Chair from the outgoing to the incoming Chair shall take place after the entire election process for the Chair and Vice Chair has been concluded.

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If the person elected as Chair passes away, resigns or is removed before the end of her/his term, a new election shall be held. Likewise, if the person ceases to work for a ministry, department or organization represented on the CCM for any reason, such as a transfer, retirement etc., she/he must resign, and a new election shall be held. Thus, this position does not automatically pass to whoever succeeds the Chair in her/his position in the organisation.

Neutrality of the Chair

a. The mandate of the Chair is to serve the CCM as a whole in a neutral manner, to help the CCM to make decisions in a participatory manner, to help the CCM to fulfil its Mandate and to ensure that the CCM complies with its governance principles.

b. The Chair shall not have a vote in CCM meetings, except in the event of a tied vote.

c. A person elected as Chair shall not be permitted to come from an organisation or entity that serves as PR or SR.

Acting Chair

If the CCM Chair is not present at a CCM meeting, one of the Vice Chairs shall serve as Acting Chair.

When neither of the two Vice Chairs are available, the Chair of one of the TWGs shall serve as Acting Chair.

In this Governance Manual, the responsibilities of the Chair shall also apply to the Acting Chair.

Decisions made between CCM meetings

When matters arise that require decisions prior to the next scheduled CCM meeting, the Chair may take the following measures:

1. For very significant and/or urgent issues that affect the implementation or continuation of GFATM-funded projects, the Chair shall consult with the Vice Chairs about whether it is both necessary and possible to convene a CCM Special Meeting.

2. If it is both necessary and possible to convene a CCM Special Meeting, the matter will be dealt with by the Special Meeting.

3. If it is neither necessary nor possible to convene a Special Meeting, the Chair will consult with the Vice Chairs and if necessary with the Chair of the appropriate TWG, and will then make a decision.

4. If there is a disagreement between the Chair and the Vice Chairs, the decision of the Chair shall prevail. Nevertheless, every effort shall be made to avoid such disagreement, and the CCM shall be informed if it happens on a regular basis.

5. Decisions made as intended in point 3 above must be shared with all CCM Members as soon as possible. The CCM has the right to overrule such decisions.

6. For minor issues, the Chair shall make the decision. When possible, the Chair will inform the Vice Chairs and/or the CCM after the decision has been made. The CCM has the right to overrule such decisions.

Removal

The CCM can ask the Chair to resign prior to the end of her/his term. Such a request must be agreed by a two-thirds majority of the Members.

Term of the Chair

1. The term of office of the Chair is two years.

2. The Chair may not serve more than two consecutive terms.

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Mid-term departure

If the Chair resigns or is removed prior to the end of her/his term, an election must be held to complete the former Chair’s term of office.

IV.6 Election of the CCM Vice Chair The CCM shall elect two people as CCM Vice Chair I and CCM Vice Chair II. The person who will serve as CCM Vice Chair I shall be elected by all the CCM members from among those who represent the GoI Sector and the non-GoI Sectors. Candidates for CCM Vice Chair I cannot come from the same Sector as the CCM Chair. This is to ensure a balance between government and non-government Sectors in the CCM chairmanship.

Candidates for CCM Vice Chair II are elected from among the multilateral/bilateral institutions, international donors and international NGOs.

If a person who serves as Vice Chair comes from an organization that benefits from funding from the Global Fund, the CCM’s Conflict of Interest policy must explain how the Vice Chair will act to minimize any resulting conflict of interest.

A Vice Chair will be elected in her/his personal capacity, but must resign if, for any reason, she/he ceases to serve as the representative of a non-GoI Sector.

CCM Vice Chair election procedure

1. Vice Chair I and Vice Chair II shall be elected by a majority vote of the CCM.

2. Each candidate for Vice Chair must be proposed and seconded by CCM Members from Sectors other than that of the candidate. Names of candidates who have been proposed and seconded shall be circulated by the CCM Secretariat to all CCM Members and Alternates at least two weeks before the meeting in which the election is to be held.

3. The procedure and rules for the election of the CCM Vice Chairs shall be same as for the election of the CCM Chair.

4. The vote for Vice Chair shall be conducted by secret ballot at a CCM meeting. If there are two or more proposed and seconded candidates for the position, each CCM Member shall vote for one, or none, of the candidates. If there is only one candidate for the position, each CCM Member shall vote yes, no, or abstain. The minutes shall record the voting totals for each candidate.

5. If there are more than two candidates for each position, a second and final round of voting shall take place between the two candidates with the highest totals of votes in the first round of voting.

Removal

The CCM can remove a Vice Chair prior to the end of her/his term. Such a decision shall be taken with a two-thirds majority vote of the CCM Members.

Term of Vice Chair

The term of office of the Vice Chair is one year.

A person may not serve as Vice Chair for two consecutive years.

Mid-term departure

If the Vice Chair resigns or is removed prior to the end of her/his term, an election must be held to complete the former Vice Chair's term of office.

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IV.7. CCM SecretariatSecretariat Host

1. The CCM shall establish a CCM Secretariat, and determine the host organisation in which it will be based. The host organization need not be a government institution. If the host organization is a government institution, it does not have to be the same as that where the CCM Chair is based.

2. Clear written procedures shall be developed and approved by the CCM to ensure that the host organization does not act to prevent the application of the provisions of this Governance Manual regarding the CCM Secretariat, particularly if the host organization is a PR or an SR.

Secretariat Budget

The Secretariat budget must be approved by the CCM. This budget, if possible, shall be provided by the GoI, development partners, or some other supporting institution/entity. If this is not possible, the budget shall be drawn from the Global Fund grant revenue in accordance with the procedure agreed by the CCM, the relevant PR and the Global Fund.

Secretariat Staff

- The CCM Secretariat shall have its own Executive Secretary and staff, who shall be recruited through a competence-based selection process. When appropriate and necessary, the CCM Secretariat shall include staff seconded from and paid by related government ministries, development partners, civil society organizations and/or others.

- The Executive Secretary shall be selected and appointed by the CCM for a term of 3 (three) years and she/he cannot stand as a candidate for the position of Executive Secretary for the subsequent term.

V. COMPOSITION OF THE CCM V.1 Membership Composition The membership of the CCM Indonesia is drawn from the GoI and non-GoI representatives including representatives of civil society/NGOs, people living with or affected by HIV/AIDS, TB and malaria, faith-based organizations, community organizations, the private sector, professional associations, research institutes and universities, as well as representatives from international agencies including multilateral or bilateral institutions, international donors and international NGOs.

In accordance with the decision of the CCM Plenary Meeting on 22 February 2007, there are 39 Indonesia CCM Members that have voting rights:

GoI – 16 CCM Members from 13 organizations (The National Development Planning Agency/Bappenas, the House of Representatives of the Republic of Indonesia/DPR RI, the National Narcotics Agency, the State Ministry for Women’s Empowerment, the Ministry of Social Affairs, the Ministry of National Education, the Ministry of Manpower and Transmigration, the Ministry of Health (2 members from the central ministry and 2 members from DG DC&EH), the Ministry of Finance, the Ministry of Home Affairs, the National Family Planning Coordination Agency, the National AIDS Commission, the National Agency for Drug and Food Control.

Multilateral/Bilateral/International donors/International NGOs (Development partners) - 7 CCM Members (from AusAID; USAID; Chair of the Joint UN Team on AIDS; WHO; UNICEF, European Union, KNCV)

Non GoI/Civil Society Representatives: NGOs – 6 CCM Members; Faith-based Organisations – 3 CCM Members; Private Sector – 1 CCM Member; Professional

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Associations, Universities – 3 CCM Members; People living with HIV/AIDS, TB and/or Malaria – 3 CCM Members and considered as representing NGOs or community organisations.

The number and composition of the CCM membership shall be reviewed every two years to maintain optimal representation and performance.

Term of Members

1. CCM Members and Alternates serve for a term of two years. Upon the expiry of her/his first term, a CCM Member or Alternate may be chosen by her or his Sector to serve a second term. However, no individual can serve more than two successive terms as a Member or as an Alternate; likewise, no single organization can represent its Sector for more than two successive terms.

2. The CCM shall have an orientation process for new CCM Members and Alternates. This shall include an introduction to this Governance Manual.

3. The names and contact details of the Member and the Alternate must be provided to, and published by, the CCM Secretariat.

V.2 RepresentationMembership in the CCM should be broadly representative of stakeholders at the national level who (i) have an interest in fighting the one or more of the three diseases: AIDS, Tuberculosis and Malaria; (ii) reflect a gender balance; (iii) originate from rural areas or cities other than the capital; (iv) represent youth; (v) represent at-risk communities. Efforts should be made to ensure that representatives from these Sectors are, as far as possible, in senior positions.

It is recommended that the CCM should comprise a minimum of 40% of its membership from the non-GoI Sector, such as NGOs, community organizations, people living or formerly living with one of the diseases, faith-based organizations, the private sector and academic/educational institutions.

VI. OPERATIONALIZATION OF CCM GOVERANCE PRINCIPLES VI.1 CCM Meetings VI.1.1 Types and Frequency of CCM Meetingsa. The CCM shall hold at least four Plenary Meetings per year. However, additional Special

Meetings may be convened by the Chair or the Vice Chair, or may be convened pursuant to a written request submitted to the CCM Secretariat by at least six CCM Members or by the Chair of a TWG.

b. CCM meetings shall be conducted in Indonesian, and in certain circumstances, English may be used.

c. When agreed by the CCM or between the Chair and Vice Chair, additional people may be invited to CCM meetings, provided that such people are introduced at the beginning of the meeting and the reasons for their presence are explained. They may only speak when invited to do so by the Chair.

d. CCM working groups, committees and ad hoc teams shall hold meetings in accordance with their Terms of Reference and with the provisions in this Governance Manual. The results shall be recorded and reported to the CCM.

e. The Chair, Vice Chairs, Chairs of TWGs and Chairs of other CCM committees shall hold regular meetings to discuss specific matters.

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f. The CCM can request a teleconference or video conference with the GF in Geneva if necessary.

g. The CCM can convene emergency meetings to deal with critical issues identified by the various working groups and committees, and/or serious problems in the implementation of the GF grant.

VI.1.2 Meeting Procedure and Voting a. Each CCM meeting can be attended by the Member and the Alternate. However, only one

may vote. This will usually be the Member, but under certain circumstances the Member may delegate this right to the Alternate.

b. If the Member or the Alternate is unavailable, their organization or Sector may send a substitute.

c. Very important decisions shall be decided by consensus. A consensus shall be two-thirds of all CCM Members. Very important decisions shall be those concerning the selection of the PR(s) and approval of proposals that are to be sent to the GF.

d. Other decisions shall be decided by a simple majority vote. A simple majority shall be more than half of the CCM Members (50 percent + one) present at the time of the vote.

e. Under exceptional circumstances, a Member may request that a vote be conducted using a secret ballot. The Chair can agree to this request, or can state that first there must be a vote as to whether a secret ballot shall be used.

f. Voting (other then when there is a secret ballot) shall normally be by show of hands. Where any Member requests a formal recorded vote, the vote shall (if necessary) be repeated, and each Member vote must be recorded in the minutes.

g. The election of the Chair and the Vice Chair shall be by a ballot that is secret, direct and free.

h. In the event of a tie in any vote, the Chair may cast a vote.

i. Where neither a CCM Member nor its Alternate attends a meeting, their substitute shall have the right to vote on their behalf if she or he presents a letter of authorization from the Member or the Alternate.

j. Members have the right to explain their reasons for voting against a decision taken in the meeting.

VI.1.3 Quoruma. A quorum is reached when at least two-thirds of the CCM Member Organizations or their

Alternates are present.

b. If, within thirty minutes of the scheduled start time of a CCM meeting, a quorum is not present, the Chair or Acting Chair shall cancel the meeting, unless the Members decide to proceed with meeting as information sharing and there are no decisions to be made.

c. A decision made at a CCM meeting is only valid if a quorum is present.

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VI.1.4 Notice and Agendaa. All Members and Alternates must receive, by email, fax or phone or letter, at least three

weeks’ prior notice of each Plenary Meeting of the CCM, and at least one week's prior notice of each Special Meeting of the CCM. The notice must specify the proposed agenda. Background papers must be sent at least five days in advance of the meeting.

b. Members and Alternates shall be notified of Special/Emergency Meetings at least one day before the meeting and informed of the need for such meeting.

c. The draft agenda for the CCM meeting shall be compiled by the Chair in consultation with the Vice Chair, with support from the Executive Secretary. CCM Members may, through the CCM Secretariat, submit items for inclusion in the agenda, though the Chair has the right to decline such items. At the start of each meeting, the agenda may be modified and approved by the CCM.

d. The background papers sent prior to each CCM Plenary Meeting must cover, for each grant:

A report from the PR on the progress of the grant since the previous Plenary Meeting. This report must include progress on indicators against objectives and targets, progress against the budget, explanations of variances, and challenges encountered.

The agenda of each Plenary Meeting shall include opportunities to discuss such reports. If the CCM Oversight Committee or a CCM TWG or the CCM FTT has any data or information regarding errors or deviance in the implementation of the grant, the members of the Oversight Committee, TWG or FTT should have the opportunity to read the relevant report prior to the Plenary Meeting; and at the meeting, the Committee chair should raise key issues for the attention of the CCM.

e. The background papers sent prior to each Plenary Meeting shall also include a report from the Executive Secretary on Secretariat activities since the previous Plenary Meeting and updates from the working groups, committees and ad hoc teams. The agenda of each Plenary Meeting shall include the opportunity to discuss this report and to ask questions of the Executive Secretary.

VI.1.5 Minutes1. Draft minutes of CCM meetings shall be prepared and distributed to all Members and

Alternates by the CCM Secretariat within one week. At the following meeting, these draft minutes shall be discussed, amended as necessary, and confirmed by the Members by a vote. Draft minutes shall be regarded as confidential, but may be shared by Members and Alternates within the Sector that they represent.

2. Confirmed minutes of CCM meetings shall be distributed to all Members and Alternates by the CCM Secretariat within one week of the being confirmed. Confirmed CCM minutes are public documents.

3. The minutes of CCM meetings shall record, at a minimum, any decisions passed by consensus or a vote, and shall record any major dissents articulated at the meeting to any such decision (unless those dissenting agree that the dissent need not be recorded in the minutes). They shall also record the agreed date and agenda of the next meeting.

VI.1.6 Non-compliance and non-attendance of CCM Members(a) If any CCM Member persistently fails to comply with this Governance Manual, any five CCM

Members may propose in writing to the CCM that the CCM Member in question be removed from the CCM. The proposal will be discussed and voted upon by the CCM, and requires a consensus (a two-thirds majority of all CCM Members) to pass. If such a resolution passes, the Sector in question will then have to select a new CCM Member.

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(b) A Sector may choose to replace its Member or Alternate prior to the end of her/his term, so long as this is done through a process that is transparent and inclusive and based on clear criteria.

(c) If there are two successive Plenary or Special CCM meetings or TWG/committee meetings at which no Member or Alternate is present, the CCM Executive Secretary shall write a letter of concern to the Member, with copies to the Alternate, the Chair and the Vice Chair. If this sequence of non-attended meetings reaches three, the Chair shall inform the next CCM meeting of this development, and shall invite the CCM to decide on a course of action.

VI.2 Monitoring, Evaluation and Supervision in the CCM’s Oversight of the Implementation of GF Grants The implementation of GF grants shall be periodically monitored and evaluated by the CCM. Evaluation will be based upon reports received PR, and reviewed by the TWGs and FTT on behalf of the CCM, with the TWG responsible for programmatic review and the FTT responsible for financial review. The requested reports will cover the following:

Verify program outputs against targets and inputs;

Verify and validate progress reports from the PR and SR;

Verify the internal M&E processes of the PR and SR;

Oversee the processes for requests for and disbursement for finds to the SR.

These evaluation focuses shall be assessed using various indicators that are consistent with the agreement between the PR, the CCM and the GF, and with existing national monitoring and evaluation systems. Data for monitoring and evaluation shall be collected from, among other sources:

a. The quarterly reports and work plans that are reviewed by the TWG.

b. The monthly and quarterly financial reports and disbursement requests from the PR and SR that are reviewed by the FTT.

c. The annual reports, annual work plans and disbursement requests that are reviewed by the CCM.

d. The findings from the quarterly report assessments and field visits by the LFA. The CCM shall request these findings from the GF.

e. Periodic field visits by CCM Members that are scheduled in the CCM work plan.

VIII.7 Mitigation of Conflict of Interest

Each CCM Indonesia meeting will have an agenda prepared in advance so that an interested CCM Indonesia member including the Chairperson can fully disclose to the other CCM members the nature of the potential conflict of interest. Such CCM Indonesia member shall recuse himself/ herself from any and all deliberations (including voting) of the CCM Indonesia on the conflict of interest topic, including but not limited to the following topics:

i. Discussions relating to the selection of the PRs and SRs.

ii. The renewal of the PR for a forthcoming phase

iii. A substantial re-programming of grant funds

iv. Issues relating to the monitoring and oversight of the PR and SR

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v. Discussions that have a financial impact on the PR or SR such as contract with other entities.

A potential conflict of interest issue could be raised by any member of CCM prior to a meeting or during a meeting or could be presented to the secretariat, anonymously if so desired, who will raise the issue to the CCM

The protocol for members declaring interest is as follows:

a) Disclosure of the interest must be made as soon as possible after the commencement of the meeting.

b) The Member must withdraw and leave the meeting room for the duration of the consideration of the matter.

c) The member must refrain from attempting in any way, whether before, during or after the meeting, to influence the decision of the CCM Indonesia with respect to the matter.

If a suspected conflict of interest is reported to any party, the Chairperson and Vice Chairperson of the CCM Indonesia will review the matter immediately to determine whether the CCM Indonesia member in question has failed to declare an interest and is therefore in breach of his/her responsibility. If the matter is deemed substantive, the constituency will immediately be requested to withdraw and replace the affected member from the CCM Indonesia.

Procedure in case of failure to disclose a conflict of interest.

If the CCM Indonesia member has failed to disclose an interest and a financial benefit has occurred either directly or indirectly, the CCM Indonesia shall take all reasonable measures to revoke any benefit. In addition, the CCM Indonesia member and his or her associates or associated organization(s) involved shall be reported to the relevant constituency they represent for further investigation. The constituency will immediately be requested to withdraw and replace the affected member from the CCM Indonesia.

VI.3 Transparency and Information ExchangeVI.3.1 Provision of Information to CCM Member OrganizationsThe CCM Secretariat shall provide the following to CCM Member and Alternates, who shall, in turn, make these documents available to other organizations within their Sectors, if necessary:

1. The CCM Governance Manual. This shall be provided promptly to all new CCM Members and Alternates.

2. The Program Implementation Manual.

3. Notice of each CCM meeting, the meeting agenda, and copies of relevant documents.

4. Draft and confirmed minutes of each CCM meeting.

5. Confirmed minutes of CCM TWG and committee meetings.

6. All relevant important documents from the Global Fund, including CCM Guidelines, Guidelines for Proposals, Calls for Proposals, and Grant Score Cards regarding Indonesia grants.

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7. All formal correspondence from the Global Fund to the CCM, and vice versa, including the comments of the Technical Review Panel on proposals submitted by the CCM, letters communicating likely or actual decisions and conditions regarding original grant approvals and Phase 2 renewals, and responses to progress reports and disbursement requests that have been submitted to the GF. Exceptions shall be made for embargoed documents, which include those not yet formally approved by the CCM. No formally approved document shall be embargoed.

8. All important documents related to the preparation of proposals to the Global Fund, including calls for proposals within the country, outlines and drafts of the Global Fund proposal, and the final Global Fund proposal.

9. All important documents relating to the implementation of programs funded through Global Fund grants, including quarterly or other periodic reports prepared by the PR and LFA for the Global Fund.

10. Copies of any information materials about the CCM prepared by the CCM Secretariat for external distribution (including media releases, newsletters and public relations profiles and write-ups).

11. A list of all CCM Members and Alternates, with their names and contact details.

VI.3.2 Provision of Information to the PublicThe CCM Secretariat shall ensure that the following information is disseminated widely to all interested parties within Indonesia via the Ind-CCM website.

1. A list of all CCM Member and Alternate Organizations, with names and contact details of their Representatives.

2. The CCM Governance Manual.

3. The Program Implementation Manual.

4. Confirmed minutes of all CCM meetings.

5. The log of CCM decisions.

6. Any call for proposals from the Global Fund.

7. Any calls for proposals issued by the CCM within Indonesia.

8. The full text of any proposal submitted by the CCM to the Global Fund.

9. Information on which proposals and Phase 2 Renewal Requests submitted by the CCM to the Global Fund have been approved, and on non-approved proposals, together with the comments by the GF's Technical Review Panel and/or Secretariat explaining such decisions.

10. The full text of any grant agreements signed between the PR and the Global Fund.

11. The full text of any ‘Disbursement Request and Progress Update’ submitted to the Global Fund.

12. Annual Reports and Work Plans from the PR.

Information that has been confirmed by the CCM can be released to the public by the Chair, Vice Chairs and Members. The release of any other information to the public shall be embargoed until determined otherwise by a plenary meeting of the CCM.

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VI.3.3 Provision of Information to the Global FundThe CCM Secretariat shall ensure that the following documentation is prepared by the appropriate parties and then sent to the Global Fund (directly, or via other parties, as appropriate) on a timely basis:

1. All reports that the grant agreement requires the PR to provide.

2. Responses to any queries from the GF's Technical Review Panel.

3. Responses to any queries from the GF Secretariat.

Furthermore, until agreed otherwise by the CCM, the CCM Secretariat shall ensure that all documents sent to the Global Fund (including by the PR) that report on grant performance, uses of funding, or decisions by the CCM are co-signed by the CCM Chair and Vice Chair and made available to all CCM Members.

VI.4 Development of Global Fund ProposalsThe CCM shall establish a formal, transparent, accountable and documented process for the development of proposals to the GF. For each such proposal, this process shall be as follows:

1. As soon as it is known that the GF is likely to issue a new Call for Proposals, each TWG shall be asked to discuss and decide whether it wishes to submit a proposal to the GF and if so, the TWG shall be asked to ensure that any such proposal meets the requirements of the Global Fund and is consistent with national priorities and programs on HIV/AIDS, tuberculosis, and malaria.

2. The Chair of the relevant TWG shall be asked to make a presentation to the CCM on the recommended proposal outline

3. The CCM shall determine whether it wishes to support, modify, or reject the TWG’s suggestion regarding the focus of the proposal.

4. If the CCM agrees to support the proposal, the CCM or TWG for each disease shall be asked to set up and supervise a proposal-writing team consisting of people who are capable of developing a proposal within the agreed focus area. This team shall comprise certain Members of the TWG as well as non-TWG and non-CCM elements.

5. The CCM Secretariat shall ensure that members of the public throughout Indonesia, and particularly through civil society organizations, are made aware through the media, and in sufficient detail and in a timely manner, of the focus of the planned proposal, and are given an opportunity to become actively involved in the design and development of the proposal.

6. The CCM Secretariat shall also ensure that all CCM Member Organizations as well as other interested stakeholders are given an opportunity to read and comment on drafts of the proposal.

7. Following the selection of the Principal Recipient (see VI.5), the proposal will be finalized by a team comprising members of the TWG, the CCM, the proposal-writing teams and the PR.

8. The finalized draft of the proposal shall be submitted to the Technical Review Panel (TRP). The TRP shall comprise CCM Members who have not been involved at any previous stage of the proposal development, as well as non-CCM peer reviewers with the relevant technical expertise. The TRP shall review, and amend as necessary, the draft proposal. If agreed by the CCM, the resulting proposal shall then be signed by all Members of the CCM and submitted by the CCM to the Global Fund.

9. The CCM Secretariat shall provide public access to the full text of the proposal that is finally submitted to the GF.

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VI.5.1. Selection of the Principal Recipient (PR)Each proposal that is submitted to the GF requires that the CCM specify which organization(s) it wishes to serve as PR if the grant in question is approved. The CCM shall establish a formal, transparent and documented process for the selection of the PR(s). This process shall be based on the following:

1. The CCM shall agree on selection criteria and minimum requirements for serving as PR, and on whether (or under which circumstances) there shall be more than one PR, and shall specify these in a publicly-issued call for nominations.

2. The CCM shall follow The Global Fund Requirements for Selection of PR:

One or Several PRs: Applicants may choose to nominate more than one be responsible for distinct parts of the proposal (either for different disease components or within a single component),such as having one PR for public sector activities and a different non-govermental sector PR for civil society and the private sector.

If there are more than two PRs the applicant should explain how coordination will be achieved between the multiple PRs.

Which type of organization may be selected as a PR :

- A PR should be a legally – constituted entity that can enter into a grant agreement with the GF .This could a government ministry, an NGO or Faith – based organization , a private sector firm or foundation, an incorporated network of people living with and / or affect by the disease(s) , or other incorporated body.

- To ensure local ownership and accountability, PRs are expected to be local stakeholders rather than UN agencies or other multilateral or bilateral development partners. In exceptional circumstances (e.g. civil war or post-conflict reconstruction) when no local stakeholders are available to act as PR, other entities may be nominated. International NGOs with an established local presence are considered local stakeholders.

3. The CCM shall then establish a PR Selection Committee within the CCM, made up of individuals who serve as Representatives of CCM Member Organizations, members of the TWG for the disease(s) in question, and members of the Proposal Writing Team. Technical experts may be co-opted as necessary. No person who currently serves in or represents a PR shall serve on this committee.

4. The CCM Secretariat shall ensure that all CCM Member and Alternate Organizations, and other interested stakeholders throughout Indonesia, are aware that nominations are being invited for consideration as PR.

5. The PR Selection Committee shall evaluate the nominations received, and shall also seek to identify other organizations that should be considered.

6. The PR Selection Committee shall then make a shortlist of organizations that meet the selection criteria and that have confirmed they are interested in serving as PR.

7. If the shortlist has at least three names, the PR Selection Committee shall then inform the CCM of at least its first three choices, and the reasons for its ranking based on the result of review of expressions of interest to be Principal Recipient as follows:

Sector & if legal entity in Indonesia

Proven programme implementation capacity

Proven human resources capacity relevant to programme framework

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Financial management capacity and track record in managing large-scale grants in a transparent and accountable manner.

Existing links with target communities and populations

Proven ability to cooperate with government and NGO entities in programme planning, design, implementation, and M&E

Ability and willingness to work with the CCM

Ability and willingness to work with CCM Technical Working Group for Final design and project planning

8. The final decision shall be made in a plenary meeting of the CCM and made public.

9. If the grant in question is approved, the GF will conduct an assessment of the organization that the CCM has chosen to serve as PR. If the organization does not pass that assessment, the GF will work with the CCM to select a different PR from the previous list of nominations, in accordance with the ranking.

VI.5.2 Selection of sub-recipients (SR)

The selection of the SRs is the PR’s responsibility. The role of the CCM is oversight to ensure that proper procedures are followed, including adherence to the following criteria:

Proposed non-governmental Sub-Recipients must have the following characteristics:

- registration as a legal entity with the Ministry of Law and Human Rights and the Ministry of Home Affairs.

- Tax Number (NPWP)

- Articles of association

- Verifiable address

- Company or organization profile

- Proven capacity to manage projects

- Proven capacity in financial management

- Proven capacity to manage at least one program (AIDS, TB and/or Malaria)

- Proven capacity in monitoring and evaluation

Proposed sub-recipients from the government sector must have the following:

- organization’s decree and working arrangements

- Tax number (NPWP)

- Proven capacity to manage projects

- Proven capacity in financial management

- Proven capacity to manage at least one program (AIDS, TB and/or Malaria)

- Proven capacity in monitoring and evaluation

The selection procedure shall be as follows:

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1. The CCM and/or PR issues a public call for proposals from government or non-government organizations that wish to be selected as Sub-Recipients.

2. The PR shortlists the candidate SRs from the long list, based upon the selection criteria above.

3. The PR establishes a Sub-Recipient Selection Team, comprising the PR and selected members of the CCM, and the sends the short list of candidate SRs to the Team.

4. The Sub-Recipient Selection Team makes a capacity assessment of the short-listed SR candidates based upon the minimum requirements for SRs.

5. The Sub-Recipient Selection Team reports its recommendations to the PR.

6. The PR makes the decision based on the recommendations from the Team and reports the decision to the CCM. The selected SR signs a Sub Grant Agreement.

VI.6 Program Implementation a. For each CCM-initiated project in Indonesia financed by the Global Fund, the CCM shall come

to an agreement with the PR concerning their respective roles in the supervision, monitoring and evaluation of the project.

b. The CCM shall receive and review copies of disbursement requests and progress updates written by the PR for the Global Fund.

c. Monitoring, evaluation and supervision by the CCM: the CCM shall periodically and at random evaluate selected grant activities.

VI.7 Capacity Building To ensure that the objectives of programs supported by GF grants are achieved, the CCM will take measure to build the capacity not only of the CCM (the CCM Chair, Vice Chair, Members and Secretariat) but also for the PR and SRs, in order to improve the quality of work and ensure that all resources are used effectively and efficiently.

These capacity building activities may take the form of workshops, retreats, roundtable discussions, seminars, technical assistance and so on. From time to time, the Chair, Vice Chair, Members and/or Secretariat shall also participate in GF meetings/workshops overseas that are intended to increase the capacity of CCM systems, the institutional capacity of the CCM and/or the individual capacities of the Members who represent the CCM on such occasions.

The focus of capacity building activities will be determined according to need, based on the supervision of the PR and SR, requests from the PR, SR or CCM, or to anticipate or respond to certain situations and issues.

VI.8 CCM Operational FundingThe CCM Secretariat shall formulate an annual work plan, which shall include a budget for the following:

Personnel costs for Secretariat staff

Costs for CCM meetings, supervision and related activities, including plenary meetings, meetings of the TWGs, FTT, Oversight Committee and Ad Hoc Teams; advocacy; and publications. These costs shall include travel expenses for CCM Members.

Constituency consultation and participation.

Capacity building for the CCM, the PR and SRs.

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Monitoring and evaluation.

Operational costs, including rental of office space, electricity, communications, stationery, etc.

VII HARMONISATION AND COORDINATION The CCM shall promote harmonization, linkages and consistency between Global Fund activities in Indonesia and:

National development strategies;

Sectoral programs in Indonesia, particularly for health, HIV/AIDS, TB and malaria;

Indonesia’s efforts to build the harmonisation, coordination and effectiveness of external assistance;

National systems for monitoring and evaluation, financial management and procurement;

National sectoral and multisectoral coordination frameworks.

Such harmonization and coordination may be promoted through the following:

The CCM shall delegate certain roles and responsibilities related to Global Fund matters to the intersectoral coordination committee under the direction of GoI for the three diseases (AIDS, Tuberculosis and Malaria), if such a committee exists. For example: HIV/AIDS (delegated to the National AIDS Commission) TB (executed by the MoH) Malaria (executed by the MoH) Health system strengthening (executed by the MoH) Others, as specified by the CCM.

These roles and responsibilities cover the development of proposals that will be considered by the CCM, possible amendments thereof, and their possible submission to the Global Fund.

VIII CONFLICT OF INTERESTVIII.1 General Principles1. The GFATM was established to attract/collect, manage and disburse additional resources

through a public/private partnership to contribute to the reduction of infections, illness and death caused by HIV/AIDS, TB and malaria in countries in need. The GFATM recognizes that many stakeholders must be involved, including the recipient countries and donor countries, non-profit institutions and profit-oriented institutions, and the international community.

2. Because of the diversity of interests and perspectives of these various stakeholders, it is important that the CCM operates in a balanced, ethical, collaborative and open manner. This policy provides guidance in identifying and addressing conflicts of interest. It is based on clear definitions of potential areas of concern and a duty to disclose, and outlines procedures for managing these conflicts as they arise.

3. The purpose of this policy is to (1) ensure fairness in the CCM’s decision making to protect its integrity, reputation and interests, and (ii) to ensure broad public trust and confidence in the CCM’s decision making and grant oversight activities. Where the provisions of this policy conflict with the laws or regulations applicable to a matter covered in this policy, such provisions shall not apply. Wherever possible, however, this policy shall be interpreted to be consistent with the prevailing laws and regulations in Indonesia.

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4. The CCM recognizes that the representative nature of the CCM and the diversity of the elements therein gives rise to inherent conflicts when the Chair/Vice Chairs or elements within the CCM must consider matters that have a direct impact on the interests of the GoI or organisations that hold governing positions in the CCM.

VIII.2 Definitionsa. Covered Individual shall be the CCM Chair; CCM Vice Chairs; CCM Members and

Alternates; members of any CCM working group, committee or ad hoc team; the Executive Secretary and employees of the Secretariat; as well as the Manager and staff of the Principal Recipient.

b. Associated Person is the spouse, minor child or domestic partner of a Covered Individual.c. Associated Institution is (i) an organization or government institution in which a Covered

Individual is serving as a manager, director, trustee, partner or employee, that receives or may receive grant funding from the GTAFM, or with which the GFATM has an agreement, contract, or relationship; or (ii) any person, organisation, company, government institution or similar institution with which a Covered Individual is negotiating or has an arrangement concerning prospective employment.

d. Personally and substantially: participating personally is participating directly, including, for example, in the consideration of a substantial matter in a meeting of the Chair/Vice Chairs, or in the direct and active supervision of a subordinate on some matter. Participating substantially means that the involvement of the Covered Individual is of significance to the matter.

e. A conflict of interest arises when a Covered Individual participates personally and substantially in an official capacity in a particular matter in which, to his or her knowledge, he or she, or an associated person or associated institution has a financial interest, if the particular matter will have a direct and predictable effect on that interest. In general, and without limitation, conflicts may be deemed to exist in the following situations: Where a Covered Individual’s financial interests or the interests of an Associated Person

or Institution could influence the conduct of his or her duties or responsibilities related to the CCM or result in a reasonable perception that such a conflict exists;

Where a Covered Individual’s actions compromise or undermine the public’s trust in the CCM; and

Where a Covered Individual’s actions create the perception that the Covered Individual is using her/his position to for personal benefit or for the direct financial benefit of an Associated Institution.

Specific examples of such conflicts include:

CCM Members advocating for the approval of a particular grant in which his or her organization or entity will serve as a sub-recipient, implementing agency, or play some other direct project implementation, or receive some other direct financial benefit;

CCM Members advocating for the approval of a particular policy, in which his or her organization or entity will obtain some direct financial benefit;

CCM Members using their positions in the CCM to advocate for, in by some other means attempt to secure approval for a service contract between the Principal Recipient and an Associated Institution; or

Members of a Technical Working Group who are employees of the GoI or an organization participating in the assessment of a funding proposal in which an Associated Institution has a substantial interest.

These examples are only illustrative and are not intended to detail all instances in which a potential or actual conflict exists, but rather to articulate the principles that will be followed by the CCM in addressing such conflicts as they arise. Each situation will be addressed on the basis of

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its particular facts and circumstances; nevertheless, any decision will be governed by the guidelines articulated in this policy, which shall apply for all activities sponsored and supported by GFATM, be they GoI or private activities, for both non-profit and profit-oriented activities.

VIII.3 Transparency and DisclosureAll Covered Individuals have a duty to disclose the existence of any conflict of interest, including those that derive from Associated Persons or Institutions, and the nature of such conflicts, whenever she or he becomes aware that a conflict exists or is likely to occur.

VIII.4 Procedure when a Conflict of Interest Arises1. All conflicts of interest shall be immediately disclosed in writing and submitted to the CCM

Chair. All parties shall be encouraged to consult the Executive Secretary if any questions arise regarding the application of this policy.

2. It is the duty of the Chair, with the assistance of the Executive Secretary and any other expert opinion deemed necessary, to review these disclosures and determine whether a conflict of interest exists, and, if so, whether to issue a waiver defining the extent to which the individual concerned may participate in any discussion of the issue that has given rise to the conflict. The CCM Chair may also, at its discretion, bring any issue to the entire CCM (excluding the person with potential conflicts), for discussion and determination.

3. When it is determined that a conflict of interest exists, the Covered Individual shall not be allowed to participate in the matter that has given rise to the conflict, unless there is a waiver from the CCM Chair. In relation to the CCM, the Covered Individual shall not be allowed to speak of vote on the matter, and must absent herself/himself without comment before any discussion or vote on the matter, unless the CCM Chair has granted a waiver. Such waiver can be designed so as to provide an opportunity for the Covered Individual to participate up to a level deemed appropriate by the CCM Chair. For example, the CCM Chair permits the person concerned to deliver information of a technical nature, but not recommendations. Or the CCM Chair may permit the Covered Individual to attend a meeting to fulfil her/his administrative duties, but not to participate in any discussion of the matter that gave rise to the conflict of interest. The names of the parties involved in the conflict of interest who participate in particular meetings, and the issues in which a conflict exists, shall be recorded in the minutes.

4. When the CCM considers reports, decisions and proposals or recommendations for approval, in general the involvement of a CCM Member shall not be considered to be a conflict of interest even though the entity that she or he represents may have a direct interest in the matter. When the CCM considers specific issues, the Covered Individual or any other person shall alert the CCM to any potential conflict of interest and follow the procedures outlined in this policy.

5. Should a Covered Individual be found to have a conflict of interest that has not been disclosed as required above, or the CCM Chair has reasonable cause to believe that a Covered Individual has failed to disclose a conflict of interest, the Chair will inform the Covered Individual of the basis for such belief and provide him or her with the opportunity to explain the alleged failure to disclose. If, after hearing the response and making such further investigations as may be warranted the CCM Chair determines that the person concerned has in fact failed to disclose a conflict of interest, the Chair shall notify the CCM of the matter if necessary.

VIII.5 Minimizing the Potential for Conflict of Interest

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CCM Indonesia has a written conflict of interest plan, and has established, with the endorsement of the CCM, the operational guidelines for preventing and dealing with conflicts of interest within the CCM. The CCM has resolved to compile a conflict of interest manual for the CCM, the PR and SRs and make this manual available to the public. The CCM shall have a written conflict of interest plan, endorsed by the CCM, that is publicly available.

1. If the Chair comes from a GoI entity that benefits from GF financing, the conflict of interest plan shall specify how this inherent conflict of interest shall be reduced to a minimum. Under such circumstances, the Chair must, if at all possible, come from an institution that has a higher structural status than the institution in which the PR is located.

2. The CCM shall make every effort to ensure that the Vice Chairs do not come from an organization that benefits from Global Fund funding. If there is little possibility of this, the conflict of interest plan shall specify how any inherent conflict of interest will be reduced to a minimum.

3. If deemed necessary, and in particular when the CCM is determining which organizations shall benefit from GF financing, Members and Alternates shall declare where they have a potential conflict of interest, and shall as necessary sign a conflict of interest declaration in this regard.

4. When the CCM publishes its list of CCM Members and Alternates internally (via a website or other means), it will indicate for each such organization whether or not it benefits from GF financing. The conflict of interest declaration for each individual concerned shall be attached to this manual.

VIII.6 Code of ethics for Indonesia CCM members

1. Each CCM member shall conform to the following ethical principles:

2. Comply with all Indonesian laws and regulations.

3. Cooperate with requirements of the GFATM in Geneva and with its Local Fund Agent in Indonesia.

4. Report, invest gate and resolve complaints from community members or partners regarding implementation of GFATM-supported projects in Indonesia promptly and fairly.

5. Avoid conflicts of interest.

6. Reject bribery, corruption and nepotism.

7. Avoid being comprised through gifts and hospitality.

8. Respect the confidentiality and privacy of whistleblowers.

9. Report breaches with this code of ethics to the CCM chair through the Conflict of Interest and Ethical Committee of the CCM.

VIII.7 Mitigation of Conflict of Interest

Each CCM Indonesia meeting will have an agenda prepared in advance so that an interested CCM Indonesia member including the Chairperson can fully disclose to the other CCM members the nature of the potential conflict of interest. Such CCM Indonesia member shall recuse himself/ herself from any and all deliberations (including voting) of

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the CCM Indonesia on the conflict of interest topic, including but not limited to the following topics:

i. Discussions relating to the selection of the PRs and SRs.

ii. The renewal of the PR for a forthcoming phase

iii. A substantial re-programming of grant funds

iv. Issues relating to the monitoring and oversight of the PR and SR

v. Discussions that have a financial impact on the PR or SR such as contract with other entities.

A potential conflict of interest issue could be raised by any member of CCM prior to a meeting or during a meeting or could be presented to the secretariat, anonymously if so desired, who will raise the issue to the CCM

The protocol for members declaring interest is as follows:

d) Disclosure of the interest must be made as soon as possible after the commencement of the meeting.

e) The Member must withdraw and leave the meeting room for the duration of the consideration of the matter.

f) The member must refrain from attempting in any way, whether before, during or after the meeting, to influence the decision of the CCM Indonesia with respect to the matter.

If a suspected conflict of interest is reported to any party, the Chairperson and Vice Chairperson of the CCM Indonesia will review the matter immediately to determine whether the CCM Indonesia member in question has failed to declare an interest and is therefore in breach of his/her responsibility. If the matter is deemed substantive, the constituency will immediately be requested to withdraw and replace the affected member from the CCM Indonesia.

Procedure in case of failure to disclose a conflict of interest. If the CCM Indonesia member has failed to disclose an interest and a financial benefit has occurred either directly or indirectly, the CCM Indonesia shall take all reasonable measures to revoke any benefit. In addition, the CCM Indonesia member and his or her associates or associated organization(s) involved shall be reported to the relevant constituency they represent for further investigation. The constituency will immediately be requested to withdraw and replace the affected member from the CCM Indonesia.

IX. CCM ASSESSMENT The CCM shall develop a CCM Performance Checklist against which it shall regularly measure the performance and effectiveness of the CCM, the Chair, the Vice Chairs, Members and Alternates, the Executive Secretary and the Secretariat.

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Performance will be evaluated through both self-assessment and external assessment, and shall cover: The process of establishment of the CCM and the criteria for the selection of CCM Members; The application of the CCM Governance Manual; All documentation on the actual level and scope of participation in all processes by all CCM

Members; What has worked and what has not worked in respect of country partnership-led formulation

and implementation processes: the role, the extent of participation and the level of decision-making power of each of the CCM Members—both civil society and government—at different stages of the process (call for proposals, selection of PRs, grant signing, relationship with LFA);

Harmonization and coordination with existing national forums, policies and programs; CCM’s facilitation of TA for the CCM, PR and SR.

These aspects will be assessed using a questionnaire/survey format. The assessment will be conducted annually, and the results shall be reported to the Chair and Vice Chair and all CCM Members.

The cost of the assessment shall be borne by the CCM’s operational budget.

CHAIR VICE CHAIR 1 VICE CHAIR 2

(...................................) (....................................) (.....................................)

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APPENDIX C

DECLARATIONof

CONFLICT OF INTEREST

I, the undersigned:

Name :……………………………………

Position :……………………………………

Address :……………………………………

Have read and understood the conflict of interest policy and the guidelines for its implementation in the CCM GF ATM Indonesia Governance Manual, and I hereby make the following statement:

1. My relationship, as a CCM Member, with the organization/foundation that receives GF grant funding (specify)…………..…………………………………………………………………………………………..

2. My position in the organization that receives GF ATM grant funding (specify)……………………………………………………………………………………………… ………………………………………………………………………………………………………….

3. Involvement in financial receipts (specify)………………………………………………………………………………………………………………………………………………………………………………………………………………

With this statement I declare that I will comply with all the provisions and procedures articulated in the Conflict of Interest policy and the implementing guidelines as necessary.

Jakarta, …….. 2007

Rp 6,000 Duty stamp

(………………..………)

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