§ 4413. — Eligibility of the Endowment for grants.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC4413]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 54--PRIVATE ORGANIZATION ASSISTANCE
SUBCHAPTER II--NATIONAL ENDOWMENT FOR DEMOCRACY
Sec. 4413. Eligibility of the Endowment for grants
(a) Compliance with statutory requirements
Grants may be made to the Endowment under this subchapter only if
the Endowment agrees to comply with the requirements specified in this
section and elsewhere in this subchapter.
(b) Funding for private sector groups and covered programs only
(1) The Endowment may only provide funding for programs of private
sector groups and may not carry out programs directly.
(2) The Endowment may provide funding only for programs which are
consistent with the purposes set forth in section 4411(b) of this title.
(c) Compensation, etc., for officers and employees of Endowment
(1) Officers of the Endowment may not receive any salary or other
compensation from any source, other than the Endowment, for services
rendered during the period of their employment by the Endowment.
(2) If an individual who is an officer or employee of the United
States Government serves as a member of the Board of Directors or as an
officer or employee of the Endowment, that individual may not receive
any compensation or travel expenses in connection with services
performed for the Endowment.
(d) Prohibitions respecting financial matters
(1) The Endowment shall not issue any shares of stock or declare or
pay any dividends.
(2) No part of the assets of the Endowment shall inure to the
benefit of any member of the Board, any officer or employee of the
Endowment, or any other individual, except as salary or reasonable
compensation for services.
(e) Audit of accounts; reporting requirements
(1) The accounts of the Endowment shall be audited annually in
accordance with generally accepted auditing standards by independent
certified public accountants or independent licensed public accountants
certified or licensed by a regulatory authority of a State or other
political subdivision of the United States. The audits shall be
conducted at the place or places where the accounts of the Endowment are
normally kept. All books, accounts, financial records, reports, files,
and all other papers, things, or property belonging to or in use by the
Endowment and necessary to facilitate the audits shall be made available
to the person or persons conducting the audits; and full facilities for
verifying transactions with any assets held by depositories, fiscal
agents, and custodians shall be afforded to such person or persons.
(2) The report of each such independent audit shall be included in
the annual report required by subsection (h) of this section. The audit
report shall set forth the scope of the audit and include such
statements as are necessary to present fairly the Endowment's assets and
liabilities, surplus or deficit, with an analysis of the changes therein
during the year, supplemented in reasonable detail by a statement of the
Endowment's income and expenses during the year, and a statement of the
application of funds, together with the independent auditor's opinion of
those statements.
(f) Audit of financial transactions; reporting requirements
(1) The financial transactions of the Endowment for each fiscal year
may be audited by the General Accounting Office in accordance with such
principles and procedures and under such rules and regulations as may be
prescribed by the Comptroller General of the United States. Any such
audit shall be conducted at the place or places where accounts of the
Endowment are normally kept. The representatives of the General
Accounting Office shall have access to all books, accounts, records,
reports, files, and all other papers, things, or property belonging to
or in use by the Endowment pertaining to its financial transactions and
necessary to facilitate the audit; and they shall be afforded full
facilities for verifying transactions with any assets held by
depositories, fiscal agents, and custodians. All such books, accounts,
records, reports, files, papers, and property of the Endowment shall
remain in the possession and custody of the Endowment.
(2) A report of each such audit shall be made by the Comptroller
General to the Congress. The report to the Congress shall contain such
comments and information as the Comptroller General may deem necessary
to inform the Congress of the financial operations and condition of the
Endowment, together with such recommendations with respect thereto as he
may deem advisable. The report shall also show specifically any program,
expenditure, or other financial transaction or undertaking observed in
the course of the audit, which, in the opinion of the Comptroller
General, has been carried on or made contrary to the requirements of
this subchapter. A copy of each report shall be furnished to the
President and to the Endowment at the time submitted to the Congress.
(g) Audits by United States Information Agency
The financial transactions of the Endowment for each fiscal year
shall be audited by the United States Information Agency under the
conditions set forth in subsection (f)(1) of this section.
(h) Recordkeeping requirements; audit and examination of books, etc.
(1) The Endowment shall ensure that each recipient of assistance
provided through the Endowment under this subchapter keeps separate bank
accounts or separate self-balancing ledger accounts with respect to such
assistance and such records as may be reasonably necessary to fully
disclose the amount and the disposition by such recipient of the
proceeds of such assistance, the total cost of the project or
undertaking in connection with which such assistance is given or used,
and the amount and nature of that portion of the cost of the project or
undertaking supplied by other sources, and such other records as will
facilitate an effective audit.
(2) The Endowment shall ensure that it, or any of its duly
authorized representatives, shall have access for the purpose of audit
and examination to any books, documents, papers, and records of the
recipient that are pertinent to assistance provided through the
Endowment under this subchapter. The Comptroller General of the United
States or any of his duly authorized representatives shall also have
access thereto for such purpose.
(i) Annual report; contents; testimony respecting report
Not later than February 1 of each year, the Endowment shall submit
an annual report for the preceding fiscal year to the President for
transmittal to the Congress. The report shall include a comprehensive
and detailed report of the Endowment's operations, activities, financial
condition, and accomplishments under this subchapter and may include
such recommendations as the Endowment deems appropriate. The Board
members and officers of the Endowment shall be available to testify
before appropriate committees of the Congress with respect to such
report, the report of any audit made by the Comptroller General pursuant
to subsection (f) of this section, or any other matter which any such
committee may determine.
(j) Grantee; conflict of interest
After January 31, 1993, no member of the Board of the Endowment may
be a member of the board of directors or an officer of any grantee of
the National Endowment for Democracy which receives more than 5 percent
of the funds of the Endowment for any fiscal year.
(Pub. L. 98-164, title V, Sec. 504, Nov. 22, 1983, 97 Stat. 1040; Pub.
L. 99-93, title II, Sec. 210(b), (d), Aug. 16, 1985, 99 Stat. 432; Pub.
L. 100-204, title II, Sec. 211, Dec. 22, 1987, 101 Stat. 1376; Pub. L.
102-138, title II, Secs. 211(d), 215, Oct. 28, 1991, 105 Stat. 695, 697;
Pub. L. 103-236, title II, Sec. 228, Apr. 30, 1994, 108 Stat. 423.)
Amendments
1994--Subsec. (h)(1). Pub. L. 103-236 substituted ``bank accounts or
separate self-balancing ledger accounts'' for ``accounts''.
1991--Subsec. (g). Pub. L. 102-138, Sec. 211(d), substituted
``shall'' for ``may also'' before ``be audited''.
Subsec. (j). Pub. L. 102-138, Sec. 215, added subsec. (j).
1987--Subsec. (h)(1). Pub. L. 100-204 inserted ``separate accounts
with respect to such assistance and'' after ``keeps''.
1985--Subsecs. (g) to (i). Pub. L. 99-93 added subsec. (g),
redesignated existing subsecs. (g) and (h) as (h) and (i), respectively,
and in subsec. (i) substituted ``February 1'' for ``December 31''.
Transfer of Functions
United States Information Agency (other than Broadcasting Board of
Governors and International Broadcasting Bureau) abolished and functions
transferred to Secretary of State, see sections 6531 and 6532 of this
title.
