Under the Global Fund new funding model, annual funding decisions will be based on two ratings: the indicator rating and the overall grant rating. 

These decisions will be based on achievements in service coverage and adjusted for financial performance and grant management. Service coverage refers to the proportion of individuals needing a service or intervention who actually receive it, and is measured using coverage indicators through routine reporting. 

As with the previous model, the indicator rating (A, B1, B2, and C) will be based on achievement of results against targets for the coverage indicators. However, the ‘top ten’ indicators will be abandoned and all indicators in the modular template will be weighted equally. The indicator rating will inform the indicative annual funding decision range—the starting point in determining the final funding amount. 

The final funding amount (annual funding decision) and the overall grant rating (A, B1, B2, C) will be determined by adjusting the indicative annual funding decision range, based on financial performance (including the expenditure rate) and grant management issues. The grant management issues can include work-plan execution (which can be measured in terms of progress against work-plan tracking measures), completion of key milestones and progress on conditions precedent, as well as management actions identified to address weaknesses and risks, data quality and reliability of reported results etc. 

At the time of the annual funding decision, available impact data will be used to identify areas of reprogramming and course correction where the desired impact is not being achieved.