1. Standard Provisions for Non-U.S. NGOs What are they about? Dakar, Senegal 11-15 January 2010 1

2. 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 agreement (not just the first page with the $ amount on it)? Please remain standing How many of you have read and understood your entire agreement? Please remain standing 2

3. USAID Rules and Regulations USAID 22 CFR 226 Award Admin 2 CFR 230 Cost Principles For Non Profits Audits Circular A-133 US-based organizations ($500,000 threshold) USAID Guidelines for Financial Audits Contracted by Foreign Recipients Foreign Entities ($300,000 threshold) Standard Provisions ADS Chapter 303 Circular A-110 – Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations Required as Applicable Provisions: 17 for US based 35 for Non- US based Mandatory Provisions: 21 for US based 17 for Non- US based 3

4. Mandatory Provisions—Non-U.S. NGOs Finance/Accounting/Procurement Allowable Costs (1) Accounting, Audit, and Records (2) Payment Advances and Refunds (3) Cooperative Agreement Revision of Award Budget (4) Termination and Suspension (5) Disputes (6) Ineligible Countries (7) Amendment (11) Human Resources Debarment, Suspension, and Other Responsibility Matters (8) Drug-Free Workplace (9) Program Implementation Nonliability (10) Notices to USAID (12) Metric System Of Measurement (13) Equal Protection Of The Laws For Faith- Based and Community Organizations (14) Executive Order On Terrorist Financing (15) Marking Under USAID-Funded Assistance Instruments (16) Voluntary Population Planning Activities (17) 4

5. Table Exercise: Soccer BINGO 1.Each person at each table gets a BINGO sheet of finance terms printed on a grid. 2.When a player hears a term, for example “cost share,” s/he looks for the matching term on the sheet, then puts an “X” over the term. 3.The first one to cross off terms in all the squares across a row, down a column or diagonally, yells “BINGO!” loudly and wins a prize. 4.When a player gets BINGO—The table gets 1 goal and then, a chance to shoot for 1 more goal 5

6. Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement ( 1) 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 2 CFR 230) No funds will be paid as profit or fees to a recipient 6

7. Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement (2) 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 o Rules and regulations flow-down to sub-agreements. The following annual audits are required for USAID-funded foreign recipients: o Expend > $300,000 in their fiscal year (from one or more source) in USAID award  Use Guidelines for Financial Audits Contracted by Foreign Recipients o If less than threshold must make records available upon request 7

8. Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement (3) Payment Advances & Refunds Maintain advances of USAID funds in interest bearing accounts, unless: o Recipient receives < $120,000 in USG awards per year o Best reasonably available interest bearing account would not be expected to earn interest in excess of $250 per year on USG cash balances; or o Require an average or minimum balance so high that it would not be practical to maintain the advance in an interest bearing account. 8

9. Mandatory Provisions Non-U.S. NGOs Finance/Accounting/Procurement (3) Payment Advances & Refunds (cont’d) Interest earned on advances will be remitted to USAID: o Recipient may retain up to $250 of interest p/account p/year, for administrative expenses. When grant ends or is terminated you must remit back to USAID all advanced funds not yet spent 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 (for example – Unallowable costs) 9

10. Mandatory Provisions Non-U.S. NGOs Cooperative Agreement (4) 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 (2 CFR 230) o Recipient intends to sub award any of the work in the program o If specified in the award – recipient would require prior approval from AO before making budget shifts among cost categories which exceeds 10% of the total budget 10

11. Mandatory Provisions Non-U.S. NGOs Cooperative Agreement (5) Termination and Suspension In whole/in part by written notice by the USAID AO or by the recipient representative. (6) Disputes Decided by AO; Appeals to USAID’s Assistance Executive (7) Ineligible Countries Cuba, Laos, Iran, North Korea, Syria, Libya (11) Amendment Award may be amended by formal modifications o the Cooperative Agreement 11

12. Mandatory Provisions Non-U.S. NGOs Human Resources (8) Debarment—Not knowingly enter into a sub-agreement or contract with person or entity included on the Excluded Parties List System (www.epls.gov); Must certify applicants are not debarred.(www.epls.gov 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. 12

13. Mandatory Provisions Non-U.S. NGOs Human Resources (9) Drug Free Workplace Publishing Drug Free Workplace Statement within 30 days of CA award, and USAID informed if an employee is convicted of a drug violation policy in the workplace. (10) Non-Liability USAID assumes no liability for third party claims arising out of this award. 13

14. Mandatory Provisions Non-U.S. NGOs Program Implementation (12) Notices In writing, effective when delivered (both for USAID and recipient) (13) Metric System of Measurement Metric system should be used for all measurements. 14

15. Mandatory Provisions Non-U.S. NGOs Program Implementation (14) Equal Protection for Faith-Based & Community Organizations FBOs can not be discriminated against & beneficiaries can not be discriminated against regardless of religion 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. 15

16. Mandatory Provisions Non-U.S. NGOs Program Implementation (15) 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 two (2) search databases are: http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf http://www.un.org/sc/committees/1267/consolist.shtml http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf http://www.un.org/sc/committees/1267/consolist.shtml 16

17. Mandatory Provisions Non-U.S. NGOs Program Implementation (16) 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 (ADS Chapter 320): 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) 17

18. Provisions as Applicable—Non-USA Cooperative Agreement (1)Advance Payments No comingling of funds (separate bank accounts) and advances limited to 30 days (current needs) (2) Reimbursement Payment Applicable grants which do not qualify for advances (21) Cost Share Recipient may be required to refund USAID if match not met; Source/origin/nationality requirements not applicable (covered in cost share presentation) 18

19. Provisions as Applicable Procurement/Other Direct Costs (3) International Air Travel Prior Approval of international travel and Fly America Act (4) USAID Eligibility for Goods and Services Details ineligible and restricted goods (covered in procurement presentation) (7) 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." (8) Local Procurement Requirement of source/nationality waivers except for listed exceptions (covered in procurement presentation—apply when Geo Code = 000) 19

20. Provisions as Applicable Procurement/Other Direct Costs (5) Procurement of Goods Applicable over $10,000—written procurement procedures required (17) Title to Property Title vested in recipient Details property management standards and insurance requirements Request prior approval from USAID to purchase non-expendable property $5K and above and for final disposition instructions 20

21. Provisions as Applicable Program Implementation (10) Publications and Media Releases Recipient should provide copies of all material produced under award to AOTR and Development Experience Clearinghouse (DEC) (13) Participant Training Sets requirements for training non-US individuals outside of home country 21

22. Provisions as Applicable Finance/Accounting (23) Program Income Term for use of funds earned in relation to USG funding. (27) 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. (16) Indirect Cost Rates Cost principles applicable, bill using provisional rates (if applicable), final rate within 9 months of close of accounting period. 22

23. Important Resources for Understanding Standard Provisions Cooperative Agreement 2 CFR 230 - Cost Principles 22 CFR 226 Circular A-133 - Audit Guidelines Guidelines for Financial Audits Contracted By Foreign Recipients 23

24. Questions? 24