HomeResourcesAudit Database Project Compliance RecommendationsProject Funding Was Not Authorized - Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans - (ADS) 303.3.18(a) - ADS 601.3.1

Project Funding Was Not Authorized - Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans - (ADS) 303.3.18(a) - ADS 601.3.1

Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans, requires award recipients to report deviations from budget and program plans, and request prior approvals for budget and program plan revisions.

Furthermore, Automated Directives System (ADS) 303.3.18(a), Unauthorized Commitments, states that an unauthorized commitment occurs when a USAID official, who does not have the authority to do so, acts in a way that leads a recipient acting in good faith to believe that USAID has committed to revise an existing award program description, or any of the terms and conditions of the award.

Moreover, ADS 303.3.18(a) requires an agreement officer (AO) to obtain the cognizant General Counsel or Regional Legal Advisor concurrence on a recommendation to ratify and recommend payment for an unauthorized commitment. The guidance also requires the Director of the Office of Acquisition and Assistance at USAID headquarters to ratify the unauthorized commitment.

ADS 601.3.1, Appropriations Law, states that a fundamental principle of appropriations law is that, except as otherwise provided by law, appropriations must be applied solely for the purposes for which they are made.

ADS 601, Funding Source Policy, further states that it is the responsibility of the individual approving the commitment of funds to ensure that the funding source used is correct and in accordance with the policy directives in this ADS chapter.

General Recommendations

  • Seek the approval and ratification of any changes to projects from the agreement office and legal advisor, and obtain the proper approvals before revising project plans.

SOURCE: AUDIT REPORT NO. 6-279-11-005-P February 28, 2011

The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using recommendations.

Tags: Financial Management and Budgets
 
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