Standard Provisions for Non-U.S. NGOs What are they about? Kiev, Ukraine October 2009

Question & Answer How many of you have read the page of your agreement with the $ Amount on it? – Please stand up…(the most important right)? How many of you have read your entire agreements (not just the first page with the $ amount on it)? – Please remain standing How many of you have read & understood your entire agreement? – Please remain standing

USAID Rules and Regulations USAID 22 CFR 226 Award Admin Circular A-122 Cost Principles For Non Profits Audits Circular A-133 US-based organizations USAID Guidelines for Financial Audits Contracted by Foreign Recipients Foreign Entities Standard Provisions ADS Chapter 303

Provisions Cooperative Agreement incorporates USAID Mandatory Standard Provisions for Non-US NGO’s and US NGO’s (ADS Chapter 303 – Revised 1/12/07):  Mandatory Standard Provisions: 21 for US-based organizations 17 for Non-US organizations  Required as Applicable Provisions: 17 for US based organizations 35 for Non-US organizations

Mandatory Provisions – Non-U.S. NGOs Cooperative Agreement Revision of Award Budget Termination and Suspension Disputes Amendment Ineligible Countries Finance/Accounting/Procurement Allowable Costs Accounting, Audit, and Records Payment Advances and Refunds Program Implementation Notices to USAID Metric System Of Measurement Equal Protection Of The Laws For Faith-Based and Community Organizations Executive Order On Terrorist Financing Marking Under USAID-Funded Assistance Instruments Nonliability Human Resources Debarment, Suspension, and Other Responsibility Matters Drug-Free Workplace

GROUP EXERCISE

Mandatory Provisions Non-U.S. NGOs Cooperative Agreement Revision of Award Budget Recipient required to obtain prior approval from USAID AO for any of the following: o Change in scope or objectives of the program o Change a key personnel or allow a 25% reduction in the time that person devotes to the program o Request for additional funding o Inclusion of costs that require prior approval (A-122) o Recipient intends to sub award any of the work in the program o Transfer funds among cost categories which exceeds 10% of the budget total, if specified award.

Mandatory Provisions Non-U.S. NGOs Cooperative Agreement Termination and Suspension – In whole/in part by written notice of the AO Disputes – Decided by AO; Appeals to USAID’s Assistance Executive Amendment – Award may be amended by formal modifications to the Cooperative Agreement Ineligible Countries – Cuba, Laos, Iran, North Korea, Syria, Libya

Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement Allowable Costs must be: Reasonable Costs which are ordinary and necessary and incurred by any prudent person in the conduct of normal business Allocable Costs incurred specifically for the award Allowable Costs that conform to limitations of the award (refer to A-122) No funds will be paid as profit or fees to a recipient

Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement Accounting, Audit & Records All records (recipient and subrecipient) to be retained for 3 years from the date of submission of the final expenditure report. Organizations that provide USAID resources to other organizations are responsible for monitoring their subgrantees; Rules and regulations flow-down to subagreements. The following annual audits are required for USAID-funded foreign recipients: Expend > $300,000 in their fiscal year (from one or more source) in USAID awards Use Guidelines for Financial Audits Contracted by Foreign Recipients If less than threshold must make records available upon request

Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement Payment Advances & Refunds Maintain advances of USAID funds in interest bearing accounts, unless: 1. Recipient receives < $120,000 in USG awards per year 2. Best reasonably available interest bearing account would not be expected to earn interest in excess of $250 per year on USG cash balances; or 3. Require an average or minimum balance so high that it would not be practical to maintain the advance in an interest bearing account.

Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement Payment Advances & Refunds (cont’d) Interest earned on advances will be remitted to USAID: Recipient may retain up to $250 of interest p/account p/year, for admin expenses. When grant ends or is terminated you must remit back to USAID all advanced funds that have not been expended and which have not been obligated in legally binding transactions USAID reserves the right to require a refund for any funds not expended in accordance with the terms and conditions of the award

Mandatory Provisions Non-U.S. NGOs Human Resources Debarment – Not knowingly enter into a sub-agreement or contract with person or entity included on the Excluded Parties List System ( Must certify applicants are not debarred.( Reasons for debarment: Convicted or indicted for fraud or a criminal offense Had a public transaction terminated for cause or default in the last 3 years.

Mandatory Provisions Non-U.S. NGOs Human Resources Drug Free Workplace – Publishing Drug Free Workplace Statement within 30 days of CA award; USAID should be informed if an employee is convicted of a drug violation policy in the workplace. Non-Liability - USAID assumes no liability for third party claims arising out of this award.

Mandatory Provisions Non-U.S. NGOs Program Implementation Notices – In writing, effective when delivered Metric System of Measurement - Metric system should be used for all measurements.

Mandatory Provisions Non-U.S. NGOs Program Implementation Equal Protection for Faith-Based & Community Organizations FBOs can not be discriminated against & beneficiaries can not be discriminated against regardless of religion or lack of. Grantees can not mandate beneficiaries participate in religious exercises and services must be offered independent of such efforts. If the recipient makes subawards, faith based organizations must not be discriminated against.

Mandatory Provisions Non-U.S. NGOs Program Implementation Executive Order on Terrorist Financing – Prohibits transactions with organizations and individuals associated with terrorism. Searches MUST be conducted for the following procurement actions: All employees All consultants All vendors that will receive more than $500 during the calendar year period All subcontractors/subrecipients/grantees/fellowships All participants/scholarships The three (3) search databases are:

Mandatory Provisions Non-U.S. NGOs Program Implementation Marking: To raise awareness of the beneficiaries that USG assistance is provided by the American people; USAID (partially or fully funded) identity on the following: Activity sites and infrastructure projects (renovation) Communications products and program materials (Web sites, grantee publications and promotional materials, media campaigns) Events (trainings, workshops, event materials) Commodities (computers, motorcycles)

Provisions as Applicable Cooperative Agreement Advance Payments – No comingling of funds (separate bank accounts) and advances limited to 30 days Cost-Share – Recipient may be required to refund USAID if match not met; Source/origin/nationality requirements not applicable Reimbursement Payment – Applicable grants which do not qualify for advances

Provisions as Applicable Procurement/Other Direct Costs USAID Eligibility for Goods and Services – Details ineligible and restricted goods Subagreements – Requires flow-down of provisions and clauses; awards should not to be made to those on "Lists of Parties Excluded from Federal Procurement and Nonprocurement Programs." Local Procurement – Requirement of source/nationality waivers except for listed exceptions International Air Travel – Approval of international travel and Fly America Act

Provisions as Applicable Procurement/Other Direct Costs Title to Property – Title vested in recipient; details property management standards and insurance requirements; requirement to request USAID for prior approval for purchase of non-expendable property $5K and above and for final disposition instructions Procurement of Goods – Applicable over $10,000 – written procedure required

Provisions as Applicable Program Implementation Participant Training – Sets requirements for training non-US individuals outside of home country Publications and Media Releases – Recipient should provide copies of all material produced under award to AOTR and DEC

Provisions as Applicable Finance/Accounting Program Income – Term for use of funds earned in relation to USG funding. Reporting of Foreign Taxes – Recipient must submit report annually by April 16th; Report includes amount of foreign taxes assessed by a foreign government [each foreign government listed separately] on commodity purchase transactions valued at $500 or more during the prior U.S. fiscal year and any reimbursements received by the recipient during the period. Indirect Cost Rates – Cost principles applicable, bill using provisional rates (if applicable), final rate within 9 months of close of accounting period.

Important Resources for Understanding Standard Provisions Cooperative Agreement Circular A 122- Cost Principles 22 CFR 226 Circular A 133- Audit Guidelines Guidelines for Financial Audits Contracted By Foreign Recipients