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Ensure That Funding Requests Are Appropriate - ADS 602.3.2

USAID guidance on forward funding generally prohibits program managers from carrying obligations for more than 12 months beyond the end of the fiscal year in which the obligation takes place [ADS 602.3.2].

However, Automated Directives System 602.3.3, “Exceptions to the Maximum Length of Forward Funding,” states that some flexibility is required to facilitate the execution of some activities, if compelling reasons exist. Operating unit directors have the authority to approve exceptions to the policy directives and required procedures, if compelling reasons exist and are documented. For example, an exception for new programs is made that allows full funding to be provided at the outset if a new program is under $2 million. If a new program costs $2 million or more, obligations must be sufficient to cover at least the first 18 months but not more than 24 months.

General Recommendations

  • Develop written procedures regarding the required support documentation that should accompany waiver requests for funding.

SOURCE: AUDIT REPORT NO. 6-268-10-006-P August 24, 2010

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: Awards and Contracts

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