BACKGROUND:
The Zambia National AIDS Network recognizes the need to identify Lead Agencies for sub granting of funds for further sub-granting to smaller NGOs/CBOs and others. This recognition is as a result of the wide geographical and thematic coverage of AIDS Service civil society in Zambia. The following are the Terms of Reference for Lead Agencies as a guide to their operations.

A.TERMS OF REFERENCE:
1. Disbursements
The lead agency should therefore first disbursement, be able to provide a work plan and budget for six months and also financial reports indicating narrative and work plans for the subsequent quarter disbursements. The amount approved for further disbursement will be +based on achievement of programme results.

2. Audit and Records
The Lead Agency shall maintain accounting books, records, documents and other evidence adequate to show, all costs incurred by the lead agency and overall progress towards completion of the programme in accordance with generally accepted accounting standard. The accounting books and records shall be maintained for at least three years after the date of last disbursement under the signed agreement or such longer periods, if any required to resolve any claims or audit findings.

The Lead Agency should allow ZNAN or any third party appointed by ZNAN, to perform an audit under the signed agreement utilizing grant funds or other resources available for this purpose, to conduct a financial review or otherwise to ensure the accountability of grant funds.

3. Refunds
If the Lead Agency's failure to comply with any of its obligations under the grant agreement, has the result that finances, goods or services are not used in accordance with the signed agreement, the ZNAN may require the Lead Agency to refund all or any part of the amount of the disbursement in the currency used for the disbursement within 30 days after receipt of a request thereof.

4. Sub-Recipients
The Lead NGO will provide funding to smaller NGOs/CBOs to carry out activities contemplated under the approved work-plans. The Lead Agency will be responsible for all resources it receives and for the results it and the sub-recipients are to accomplish.

5. Programme Supervision

• The Lead Agency should carry out an assessment and evaluation of the sub-recipients’ capacity to handle funds and ascertain the existence of programme activities related to HIVIAIDS for scaling up.
• The Lead Agency shall provide training and Technical support for programme activities to sub recipients.
• The Lead Agency shall conduct field visits to see that programmes are being implemented.

6. Reports

• The Lead Agency shall provide Financial, narrative and programme activity reports to ZNAN - not later than 30 days after every quarter. The Lead Agency shall furnish to ZNAN reports specified below:-

a. Quarterly Reports

Not later than 30 days after the close of each quarter of the Lead Agency's fiscal year. The Lead Agency shall furnish the ZNAN, a periodic report on the programme. The report shall reflect:-

i. Financial activity during the quarter in question and cumulatively from the beginning of the programme until the end of the reporting period using the line items set forth in the programme budget.
ii. A description of progress towards achieving the agreed upon results with an explanation of variances if any.

b. Annual Reports
Not later than 30 days after the close of each fiscal year of
the Lead Agency, the Lead Agency shall submit to the ZNAN an annual financial and programmatic monitoring report (in addition to the quarterly reports) covering the proceeding financial year.

c. Interim Assessment Report
Not later than 30 days before the programme ending date. The Lead Agency shall prepare and submit to the ZNAN an interim assessment report on programme activities to the date of the report.

7. Monitoring
Not later than 60 days after a contract with ZNAN is in Force the Lead Agency shall submit a detailed plan for monitoring the programme.

8. Evaluation
The ZNAN, in its discretion, may conduct an independent evaluation of the programme. The Lead Agency shall require all sub-recipients to co-operation fully in the execution of the evaluation.
9. Contract for Goods and Services
The Lead Agency shall maintain records regarding receipt and use of goods and services acquired under the contract. All original receipts, paid bills and financial records substantiating grant expenditures must be submitted with the financial report to ZNAN and the Lead Agency will retain copies for their records.

10. Utilisation of Goods and Services
The Lead Agency should ensure that all goods and services financed with grant funds are devoted to the programme until completion or termination of the agreement and thereafter may only be used to further the objectives of the signed agreement or as ZNAN may direct.