UNCLASSIFIED (U)

4 FAM 600
federal FINANCIAL ASSISTANCE

4 FAM 610

GENERAL POLICIES

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(Office of Origin:  CGFS/FPRA/FAFM)

4 FAM 611  SCOPE and PURPOSE

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This subchapter, specifically, contains policies and regulatory information applicable to the financial management of Federal financial assistance (hereafter referred to as "Federal Assistance or FA") issued and managed by the Department.  Policies in this subchapter complement those contained in the Department's primary Federal Assistance policy and procedures manual, the Federal Assistance Directive (FAD) issued by A/GA/AP/FA/FAPD.  Both this subchapter and the FAD conform to the government-wide Federal Assistance regulations contained in 2 CFR 200 and the Department-specific regulations contained in 2 CFR 600.

4 FAM 612  APPLICABILITY

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The material in this subchapter applies to all Federal Assistance awards funded and issued by the Department of State.  Unless otherwise stated, 4 FAM 600 applies to all Department-issued Federal Assistance, both domestic and overseas.  Differences in application are indicated within the relevant subchapter or section.  Federal Assistance issued by other agencies is governed by that agency's policies and regulations.

4 FAM 613  AUTHORITies and applicability

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4 FAM 613.1  Authorities

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Authorities related to the financial management of Federal Assistance are:

(1)  2 CFR 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.  Effective December 26, 2014, and revised effective October 1, 2024, this consolidates and supersedes OMB Circulars A-21, 87, 102, 110, 122, and 133;

(2)  2 CFR 600―Department of State codification of, and deviations from, 2 CFR 200;

(3)  31 U.S.C. 6304―Federal Grant and Cooperative Agreement Act of 1977 (Public Law 95-224);

(4)  2 CFR 601―Nonprocurement Debarment and Suspension;

(5)  22 CFR 133―Department of State codification of Drug-Free Workplace Act common rule;

(6)  22 CFR 138―Department of State codification of Byrd Anti-Lobbying Amendment common rule;

(7)  22 CFR 140―Department of State codification of Prohibition on Assistance to Drug Traffickers;

(8)  Plain Writing Act of 2010 ― Public Law 111-274, requires federal agencies to write clear and concise documents for the public;

(9)  Digital Accountability and Transparency Act of 2014 (Public Law 113-101);

(10) FAR 31.2, Contracts with Commercial Organizations;

(11) The Antideficiency Act (31 U.S.C. 1341(a)(1));

(12) State Department Basic Authorities Act (Public Law 84-885, as amended);

(13) Foreign Service Act of 1980 (Public Law 96-465, as amended, 22 U.S.C. Chapter 52);

(14) Foreign Assistance Act of 1961 (Public Law 87-195, as amended) (22 U.S.C. 2151 et seq.);

(15) Omnibus Diplomatic Security and Antiterrorism Act of 1986 (22 U.S.C. 4801 et seq.);

(16) Fulbright-Hays Act of 1961 (Public Law 87-256, 22 U.S.C. Chapter 33, Section 2451 et seq.);

(17) Smith-Mundt Act of 1948 (Public Law 80-402, 62 Stat. 6); and

(18) Smith-Mundt Modernization Act of 2012 (H.R. 5736 (IH)).

4 FAM 613.2  Applicability of 2 CFR 200

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In accordance with 2 CFR 200, and per policy, the Department established the following applicability structure:

(1)  Individual grant recipients:  2 CFR 200 does not apply.

(2)  U.S. non-Federal and non-profit entities and educational institutions:  2 CFR 200, Subparts A through F apply.

      NOTE:  A limited list of specific U.S. non-profit organizations that function more like for-profit entities must follow the Federal Acquisition Regulations rather than Subpart E.  See Appendix VIII to Part 200, Title 2―Nonprofit Organizations Exempted From Subpart E.

(3)  Foreign non-profit entities and educational institutions:  2 CFR 200, Subparts A through E apply.

(4)  U.S and foreign for-profit entities:  2 CFR 200, Subparts A through D apply, except where the application of these subparts would be inconsistent with the international obligations of the United States or the statute or regulations of a foreign government; the Federal Acquisition Regulation (FAR) at 48 CFR 30 (2015)—Cost Accounting Standards and 48 CFR 31 (2016)—Contract Cost Principles and Procedures take precedence over the cost principles in 2 CFR 200, Subpart E for Federal contract awards.

(5)  Foreign Public Entities (FPE), as defined by 2 CFR 200.1, which include Public International Organizations (PIO):  2 CFR 200 does not apply.

(6)  Fixed Amount Awards:  2 CFR 200.200 applies.  The Federal award amount for FAAs is negotiated using 2 CFR 200 Subpart E—Costs Principles as a guide.

(7)  Voluntary Contributions:  2 CFR 200 does not apply.

(8)  Assessed Contributions:  2 CFR 200 does not apply.

(9)  Subawards (awards to subrecipients):  2 CFR 200 applies.  The terms and conditions of Federal awards flow down to subrecipients (entities that receive subawards from Federal Assistance recipients) unless a particular section of the terms and conditions of the Federal award specifically indicates otherwise.  This means non-Federal entities must comply with the requirements regardless of whether they are recipients or subrecipients of a Federal award.

(10) Obligations under Treaty Instruments under Department Circular 175:  Bilateral Agreements and Multilateral Agreements to foreign countries and International Organizations as authorized by section 481(a)(4) of the Foreign Assistance Act, issued under Department Circular 175 (C-175) authority as described in 11 FAM 720: 2 CFR 200 does not apply.  However, 2 CFR 200 does apply to sub-obligated funds awarded by the Department through Federal Assistance instruments as defined 4 FAM 614.3.

4 FAM 614  use of federal assistance

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4 FAM 614.1  Federal Assistance - General

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a. Federal Assistance for the U.S. Department of State refers to funds that support public purposes related to U.S. foreign policy, without the Department receiving any direct goods or services in return.  This is different from procurements or Federal contracts, where the Department obtains goods and services for the Department's benefit.

b. Federal Assistance is provided through multiple instruments including grants, cooperative agreements, fixed amount awards (FAAs), and voluntary and assessed contributions.  Assistance can be monetary, in-kind (e.g., the Department provides services, supplies, or equipment in lieu of funds), or a mix of the two.  Although not considered assistance instruments, the Department may use interagency agreements, memorandums of understanding, and/or contracts and purchase orders to provide services, as part of the Federal Assistance process when issuing awards.

4 FAM 614.2  Bona Fide Need and Purpose

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a. The issuance of a Federal Assistance award must be grounded in bona fide needs identified by the Department (as agency grantor), not the recipient.  The definition of “bona fide need” with regard to Federal Assistance is different than for acquisitions.  At the Department of State, bona fide need means a need identified to support the U.S. Government in the sphere of international relations through grant-making. (see the Office of the General Counsel’s (GAO’s) “Principles of Federal Appropriations Law (Third Edition),” Volume 1, Chapter 5, Section B-10).

b. For Federal Assistance, the issuance of the award represents the Department acting to meet the identified bona fide need, independent of when the activity under the award takes place.  An award may be issued in one fiscal year to pay for a program occurring in the next fiscal year or beyond.  No expenditure needs to be made in the funding fiscal year of the funding appropriation.

c.  In addition to timing, there are other concerns that must be addressed to ensure the valid use of an appropriation and a proper obligation.  First, use of the funding must be for an “authorized grant purpose” as determined by the program legislation, legislative history, and appropriation acts.  This means an appropriation can only be used to fund activities that are authorized in its supporting legislation.  (see Principles of Federal Appropriations Law (Third Edition), Volume II, Chapter 10, Section F).

d. To be valid, an award must be specific, with a clear purpose, objectives, activities, timeframe, and budget.  Federal Assistance awards should not be so vague that they appear to be a gift or a way to store extra funds for a use identified at a later date.

e. Federal awards also must align in all instances with the strategic goals and objectives of the issuing post or bureau at the Department.  The Department’s goals and objectives are advanced by providing Federal Assistance to other nations, foreign public entities, international or domestic non-profit organizations, institutions of higher learning, individuals, and/or commercial organizations.

4 FAM 614.3  Federal Assistance Instruments

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a. The Department primarily uses the following instruments for awarding Federal Assistance.

(1)  Grant:  A type of Federal Assistance given to a recipient to support a public purpose as authorized by Federal law.  It involves transferring money, property, services, or other items of value, with the expectation that the government agency will not be substantially involved in the recipient's activities.

(2)  Cooperative Agreement:  A type of Federal Assistance given to a state, local government, or other recipient to support a public purpose as authorized by Federal law.  It involves transferring money, property, services, or other valuable items, with the expectation that the government agency will be actively involved in the recipient's activities.

(3)  Voluntary Contribution:  Discretionary (non-mandatory) Federal Assistance provided to foreign countries, public international organizations/foreign public entities, international societies, commissions, proceedings, or projects.

(4)  Assessed Contribution:  Non-discretionary or mandatory Federal Assistance provided to foreign countries, public international organizations/foreign public entities, international societies, commissions, proceedings or projects for membership dues or other costs assessed as a lump sum, quota of expenses, or fixed by treaty.  Assessed contributions are not technically considered to be Federal Assistance.  Nevertheless, data for Assessed Contributions is included with Federal Assistance for some Federal reporting purposes, including for reporting under the DATA Act of 2014.

b. Other methods of providing Federal Assistance may be used when authorized by law.

c. Sub-obligations under Treaties via Department Circular 175 Authority—

(1)  Bilateral and Multilateral Letter of Agreement (LOA):  Not considered a Federal Assistance instrument, this is an agreement between the U.S. Government and a foreign government entered into with the intent to obligate U.S. Government funds for an array of activities supporting a foreign assistance purpose, relying on the Circular 175 authority defined in 11 FAM 720.  A bilateral or multilateral letter of agreement between the two or more governments legally obligates Department funds.  Funds obligated onto an LOA are initially bulk-obligated, and subsequently sub-obligated to other implementing mechanisms such as contracts, IAAs, travel authorizations, grants or cooperative agreements that are considered Federal Assistance.  Funds are not disbursed directly to the host government but may be paid to a government agency acting as the implementing partner in one of the sub-obligating mechanisms.

(2)  Bilateral Letter of Agreement with an International Organization (IO-LOA), also issued under Department Circular 175 (C-175) Authority defined in 11 FAM 720—is not a Federal Assistance instrument itself, an IO-LOA is also an agreement between the U.S. Government and an International Organization with the intent to obligate U.S. Government funds for a specific project and foreign assistance purpose.  However, obligations to Foreign Public Entities (FPEs) under C-175 must be executed using budget object class (BOC) code 4124 and reported on USASpending.gov.  A C-175 Bilateral Letter of Agreement legally obligates Department funds, but the funds are not bulk-obligated, so all payments go directly to the recipient co-signer of the agreement.  Sub-obligations do not occur.

4 FAM 614.4  Federal Assistance Forms

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a. The use of standard forms is mandatory unless exempted by law or by the prescribing U.S. Government agency.  Advance approval by OMB is required for adoption of U.S. Government agency forms in place of the standard forms used by the responsible agency.

b. In 2 CFR 200, OMB standardized the forms used in Federal Assistance to ease the reporting burden for award recipients.  The Department has adopted these forms.  In addition, the Department created a State-only form for the Notice of Award.  The prescribed forms used in the financial management aspects of Federal Assistance are listed below.  The following are the correct forms for obligating and managing the various types of Federal Assistance.  Please also see 4 FAH-3 H-636.  Forms related to program and non-financial aspects are not included, but may be found in 2 CFR 200.

(1)  SF-424 (series) - Application for Federal Assistance

(2)  DS-1909 - Notice of Award to an Organization Cover Sheet

(3)  DS-1909I - Notice of Award to an Individual Cover Sheet

(4)  Letter of Agreement (LOA) - for bilateral agreements

(5)  SF-270 - Request for Advance or Reimbursement

(6)  SF-425 - Federal Financial Report

(7)  SF-1199A - Direct Deposit Sign-Up Form

(8)  SF-3881 - ACH Vendor/Miscellaneous Payment Enrollment

(9)  DS-2028 - Overseas Schools Grant Status Report

(10) Contribution Letter, DS-1909, or other documentation signed by an authorized official - voluntary and assessed contributions

4 FAM 614.5  Relevant Budget Object Classes

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a. Budget Object Class (BOC) codes Used with Grants and Other Federal Assistance:

(1)  OMB Circular A-11, Section 83, establishes 4100 as the budget object class (BOC) series to be used for Grants, Subsidies, and Contributions in GRANTS, SUBSIDIES AND CONTRIBUTIONS (41.0).  This category includes grants, cooperative agreements, voluntary and assessed contributions, bilateral agreements, letters of agreement, and certain insurance and loan programs.  Correctly coding all financial information is crucial for accurate reporting to OMB, Congress, GAO, and other auditors.  This ensures proper oversight and internal controls for the Department's management of tens of billions of dollars spent annually on Federal Assistance.

(2)  Correct Coding:  BOC codes used by the Department of State are listed in 4 FAH-1 H-610.  The correct BOC codes to be used for Federal Assistance transactions are:

b. Clarification on BOCs 4123 and 4124

(1)  Bilateral and Multilateral Letters of Agreement (LOAs), in themselves, do not convey funds pursuant to a Federal Assistance instrument, but do obligate funds.  They are governed by 11 FAM 720 and Department Circular 175.  Through sub-obligation on a grant, cooperative agreement, or fixed amount award some or all of the funds obligated under an LOA and then sub-obligated may constitute Federal Assistance.  We have established the 4123 and 4124 BOCs for the purpose of recording such transactions in our financial system.

(2)  BOC Code 4123, Bilateral & Letters of Agreements with Foreign Governments (Bulk Obligations), is used almost exclusively by the Bureau of International Narcotics and Law Enforcement Affairs (INL) for their bilateral agreements that are bulk-obligated under C-175 authority.  “Bulk Obligated” means that 100 percent of the funds covered by the bilateral or letter of agreement are obligated at the time the agreement is signed.  However, with some limited exceptions for government-to-government assistance, payments to the agreement partner are not made from this bulk obligation.  Instead, these funds are, over time, sub-obligated into individual transactions in the form of grants, contracts, travel authorizations, and other legally binding agreements.  At the end of the performance, the initial bulk obligation will be reduced to $0, since all its original funds would have been sub-obligated into other transactions.  Note that when grants are sub-obligated in this manner, they should be charged to BOC 4121 or 4122.

(3)  BOC Code 4124, Bilateral & Letters of Agreements with International Organizations (Non-Bulk Obligations), is used primarily for letters of agreement issued by INL and other bureaus under C-175 authority, and by ECA for quarterly funding transfers to Fulbright Commissions.  Obligations charged to BOC 4124 are not bulk-obligated, so all funds are paid directly from the obligation to the recipient.  There are no sub-obligations via other instruments.

4 FAM 615  key department offices and responsiblities

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a. There are numerous positions involved in the award and management of Federal Assistance (FA), and the roles they play will vary from bureau-to-bureau and post-to-post.  Collaboration between these players is critical to success of Federal awards management.

(1)  The Bureau of the Comptroller and Global Financial Services' Office of Federal Assistance Financial Management (CGFS/FPRA/FAFM) provides leadership in the financial management of Federal Assistance programs through policy development, oversight, technical assistance and training. FAFM is the authoritative source for Federal Assistance financial policy and the primary point of contact for domestic and overseas Financial Management Officers on Federal Assistance issues.  FAFM is also the liaison with the HHS Payment Management System (PMS) and the CGFS Global Financial Services offices (GFS), working with them and bureaus/posts to resolve payment and other financial issues related to Federal Assistance. FAFM serves as the Department's financial management representative on OMB and interagency councils (e.g., CFO's Council, COFFA) and working groups to coordinate and assist in the development of government-wide Federal Assistance financial policies.  FAFM also assists with the collection of data for various audit programs and serves as the Department’s Key Management Single Audit Liaison (see 4 FAM 690).  See 1 FAM 614.12-3 for further details on CGFS/FPRA/FAFM’s role and responsibilities.

(2)  Office of Global Acquisitions, Acquisition Policy Directorate, Federal Assistance, Federal Assistance Policy Division (A/GA/APD/FA/FAPD) develops and promulgates Department policy and procedures for Federal Assistance.  It provides training and career development for personnel involved in the administration and execution of Federal awards.  A/GA/APD/FA/FAPD has the authority to appoint Grants Officers (GOs) on behalf of the Department through the issuance of warrants.  See 1 FAM 212.1-1(C), which provides further detail on the office’s role and responsibilities.

(3)  Federal Assistance Operations (A/GA/APD/FA/FAO), formerly A/OPE/AQM/IP, is located within the office of the Acquisition Policy Director in the Bureau of Administration’s Office of Global Acquisition.  The Office provides Federal Assistance services, including planning, negotiations, program budget analysis, and execution of Federal awards.  For a fee, A/GA/APD/FA/FAO assumes responsibility for the Federal awards of bureaus/offices/posts, through centralized grants services.  Overseas posts and bureaus may use the services of A/GA/APD/FA/FAO if:  they do not have a warranted GO; need to execute a Federal Assistance award beyond the warrant level of current GO; or require specific assistance in the award and administration of Federal awards.  In addition, A/GA/APD/FA/FAO is designated as the office responsible for liaising with the Department of Interior, which negotiates Negotiated Indirect Cost Rate Agreements (NICRAs) on behalf of the Department for recipients for whom the Department is the primary Federal awarding (cognizant) agency.  A/GA/AMD/PAS is responsible for answering questions regarding these negotiations, including the process for establishing a new NICRA rate.  See 1 FAM 212.1-2(D), which provides further details on A/GA/APD/FA/FAO's role and responsibilities.

(4)  The Office of U.S. Foreign Assistance (F) directs the planning, budgeting, execution, and evaluation processes of the Department of State's foreign assistance resources.  F, in conjunction with foreign assistance planners in regional and functional bureaus at the Department, provides objective advice to the Secretary and Deputy Secretary on resource allocation and policy decisions as they relate to foreign assistance.  See 1 FAM 033, which provides further details on F’s role and responsibilities.

(5)  The Under Secretary for Public Diplomacy and Public Affairs (R) has authority over all Department of State public diplomacy (PD) programs, including the allocation of PD resources, long-term strategic planning, and performance measurement.  PD programs include international educational, academic and professional exchanges, speaker programs, cultural and sports diplomacy, international information and media policy, and traditional post public diplomacy programs.  1 FAM 046 provides further details on R’s role and responsibilities.

(6)  The Office of the Legal Adviser (L) advises and represents the Secretary and, through the Secretary, advises and represents the President and the bureaus and missions of the Department, on all legal and legal policy issues arising in connection with U.S. foreign policy and the work of the Department.  The appropriate regional or functional sub-offices of L (e.g., L/LFA-Legislation and Foreign Assistance; L/BA - Buildings and Acquisitions, (including Federal Assistance); L/PD-Public Diplomacy and Public Affairs;) must be consulted regarding significant legal issues involving the award or management of assistance awards.  These duties are within the purview of 1 FAM 241, which provides L’s role and responsibilities.

(7)  The Office of Technology and Innovation within the Bureau of Administration’s Planning, Resources, and Innovation Division (A/PRI/TI), manages the Department's federal Assistance management system, which as of the publication of the present document is MyGrants.  MyGrants is the Department of State’s current (as of November 2024) system for the implementation of the enterprise systems that service the Department’s domestic and overseas Federal Assistance communities.  This grants management system program delivers system-related training, support, reporting, and system assurance services.

(8)  Consistent with the policies established by A/GA/APD/FA/FAPD and CGFS/FPRA/FAFM, Department bureaus, offices, embassies, consulates and missions with the requisite legal authority, may award Federal Assistance to further their missions.  Organizations may publish bureau- and post-specific procedures consistent with Federal and Department regulations and deemed necessary for the assistance programs carried out under their legal authority.  Bureaus may award assistance directly or provide funds to posts to award on their behalf.

(9)  All domestic bureaus and overseas posts that process Federal Assistance using appropriations obligated in GFMS must use the Department's grants management system to manage all Federal Assistance awards.

b. Some key officer roles and responsibilities in Federal award management are summarized below.

4 FAM 616  other requirements and principles

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a. Administrative Requirements:  Consistent with 2 CFR 200, the following are administrative requirements that apply to all Federal Assistance awards issued by the Department:

(1)  Public Notice:  There is a requirement to provide public notice of Federal Assistance programs, which also apply to loans, loan guarantees, interest subsidies, and insurance;

(2)  Internal controls:  This includes systems of financial accounting, reporting, and documentation systems by recipient and sub-recipient, as well the monitoring and tracking of program progress, and the inherently quick and accurate ability to provide issuing bureau or post GO and/or GOR with required and relevant project completion and financial tracking data (expenses by cost-item) as requested and/or mandated in the Award Specifics on SF-245/FFR or PPR forms, and also can include systems needed prevent and mitigate cybersecurity, fraud, and other risks;

(3)  Payment Management System (PMS):  PMS must be used by domestic bureaus to pay all U.S.-based organizational recipients (PMS is not used for payments to individuals).  All exceptions to using PMS require a waiver from CGFS/FPRA/FAFM (email FAFM@state.gov);

(4)  Subrecipient Monitoring and Management:  Referring to prime awardee (also called recipient or pass-through entity), this requirement means that the prime recipient must ensure compliance with all relevant and applicable Federal statutes and regulations, as well as meeting listed project/program milestones per the application for the award and Statement of Work (SOW, and also includes ensuring proper use of funds to meet project goals, and ensuring the subrecipient is able to provide the prime with the relevant and required information to complete no-more-than-quarterly financial and project/program reports; and

(5)  Prohibition on certain telecommunications and video surveillance equipment or services (Huawei Technologies Company or ZTE Corporation or their affiliates and subsidiaries).

b. Cost Principles:  Applicable to all grant agreements and cooperative agreements, except food commodities, Fixed Amount Awards (with limited exceptions noted in 2 CFR 200.400(g), 2 CFR 200.402, 2 CFR 200.403, 2 CFR 200.404, 2 CFR 200.405, and 2 CFR 200.407(d)); agreements for loans, loan guarantees, interest subsidies, and insurance; and Federal awards to hospitals.

c.  English Language Requirement:  All Federal Assistance announcements, applications, and Federal award information should be in the English language and must be in terms of U.S. dollars.  Reports and correspondence may be submitted in languages other than English when the Grants Officer has indicated in the Award Provisions that an alternate language has been approved.  Federal agencies can announce available funding in different languages to increase the pool of applicants or specific communities.  Applications, reports, and official correspondence can be submitted in languages other than English if allowed in the funding notice or award terms.  If there is a conflict between the English version and another language, the English version will be the official one.  In the event of inconsistency between English and another language, the English language meaning will control.

4 FAM 617  definitions in 4 FAM 600

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This section sets forth definitions of terms and phrases, derived from 2 CFR 200, and/or used in Federal Assistance management.

Accrual accounting:  Accrual-based accounting records income when goods are shipped, or services received, and an expense is recorded when the recipient is obligated to pay it (when expenses are incurred).

Acquisition:  Obtaining supplies or services for use by the Federal Government with appropriated funds through purchase or lease.  Acquisitions are governed by the Federal Acquisition Regulation (FAR) and the Department of State Acquisition Regulation (DOSAR) issued by A/GA.

Advance payment:  A payment made by U.S. Department of the Treasury electronic funds transfer (EFT), check or other appropriate payment mechanism to a recipient upon its request before outlays are made by the recipient.

Allowable cost:  Costs that are necessary and reasonable for the performance of the Federal Assistance award and allocable to the award.  These costs are allowed by the Federal Cost Principles in 2 CFR 200, Subpart E, or Federal Acquisition Regulation (FAR) at 48 CFR 30 and 48 CFR 31, as applicable.

Alternate payee:  An alternate payee is an organization or individual not listed as the official recipient in Box 1 of the DS-1909 (Federal Assistance Award Coversheet) but is then identified by the recipient or sub-recipient to receive payment (usually on a temporary basis due to exigent circumstances).

Antideficiency Act:  This act prohibits Federal agencies from obligating or expending Federal funds in advance or in excess of an appropriation, and from accepting voluntary services.  The Act prohibits Federal employees from:

(1)  Making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law;

(2)  Involving the government in any obligation to pay money before funds have been appropriated for that purpose;

(3)  Accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property; and/or

(4)  Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations.

(5)  Federal employees who violate the Antideficiency Act are subject to two types of sanctions:  administrative and penal.  Employees may be subject to appropriate administrative discipline including, when circumstances warrant, suspension from duty without pay or removal from office.  In addition, employees may also be subject to fines, imprisonment, or both.  See 4 FAM 082.2-1.

Approved budget:  The financial expenditure plan for the Federal Assistance-supported project or activity, including revisions approved by the Grants Officer on behalf of the Department, as well as permissible revisions made by the recipient.  The approved budget consists of Federal funds and, if required by the terms and conditions of the award, non-Federal share in the form of matching or cost-sharing.

Assistance listing:  Formerly called Catalog of Federal Domestic Assistance number, this is a publicly available listing of Federal Assistance programs managed and administered by the General Services Administration.

Auditee:  Any recipient or subrecipient that expends Federal awards, which is audited.

Audit finding:  Deficiencies which the auditor is required to report in the schedule of findings and questioned costs.

Auditor:  A public accountant or a Federal, state, or local government audit organization, which meets the general standards specified in Generally Accepted Government Auditing Standards.  The term “auditor” does not include internal auditors of non-profit organizations.

Audit resolution:  A process to determine what actions to take regarding the auditors’ findings of questioned or unsupported costs.

Authorized organization representative (AOR):  The individual authorized by the applicant/recipient organization to act for the applicant and to assume the obligations imposed by the Federal laws, regulations, requirements, and conditions that apply to grant applications or grant awards.  Responsibilities include:

(1)  Signing grant applications and the required certifications and/or assurances necessary to fulfill the requirements of the application process;

(2)  Signing the grant on behalf of the company, organization, institution or entity; and

(3)  Signing on behalf of the organization all program, financial, inventory and other reports, forms and payment requests required by the award terms and conditions.

Award:  Legally binding document that includes compliance terms and conditions, and states that the Federal Government has obligated funds to provide support or materials to accomplish a public purpose.  Awards include grants and other agreements in the form of money or property in lieu of money, by the Federal Government, to an eligible recipient.

Award instrument:  A grant (including property grants, letter grants, awards to an individual, and fixed amount awards), cooperative agreement, bilateral agreement or voluntary contribution used to transfer funds, property or something of value for a public purpose with or without substantial involvement by the U.S. Government.

Award provisions:  Contain data elements for each instrument type and is a required component of the Notice of Award.  These provisions incorporate the Department Standard Terms and Conditions by reference and/or in full text, and describe the award purpose/scope of work, method of payment, authorized budget, and reporting/monitoring requirements.  Department Standard Terms and Conditions do not apply to Public Foreign Entities.

Bona fide need:  An appropriation can only be obligated to meet a genuine need during the period of availability for which it was made.  More specifically, the Office of the General Counsel’s (GAO’s) “Principles of Federal Appropriations Law (Third Edition),” Volume 1, Chapter 5, Section B-10 defines bona fide need as:  “The agency’s (bona fide) ‘need’ in the grant context, however, is to make a grant in furtherance of the goals Congress hoped to achieve when it enacted the grant-making authority.  In this context, the agency’s ‘need’ is to make a grant, and the grantee’s use of grant funds has no relevance in the assessment of agency needs.  For that reason, a bona fide needs analysis in the grant context focuses on whether the grant was made during the period of availability of the appropriation charged and furthers the authorized purpose of the program legislation.″

Budget object class (BOC):  These are a set of object and sub-object classification codes required in the accounting for all appropriated and allotted funds.  BOCs include services, materials, and other resources for which U.S. Government payments are made.  For all Federal Assistance instruments, the 41- series, defined by the Office of Management and Budget (OMB) in OMB Circular A-11, and implemented by the Department in 4 FAH-1 H-614 through the 4100 series (i.e., 4121, 4122, etc.).

Closeout:  The process by which the issuing bureau or post determines that all applicable administrative actions and all required work of the Federal award have been completed and takes actions to officially conclude a Federal Assistance award in all relevant systems and de-obligate any remaining unneeded funds.  See 4 FAM 650.

Cognizant agency (audit purposes):  This is the Federal agency designated to carry out the responsibilities described in 2 CFR 200.513—Responsibilities, paragraph (a).  The cognizant agency for an audit is not necessarily the same as the cognizant agency for indirect costs and is generally the Federal agency that provides the predominant amount of direct funding to a recipient unless OMB makes a specific cognizant agency for audit assignment.  A list of cognizant agencies for audit may be found at the Federal Audit Clearinghouse (FAC) website.

Cooperative agreement:  A legal instrument of Federal Assistance between a Federal awarding agency or pass-through entity and a recipient used to enter into a relationship with the principal purpose of transferring anything of value from the Federal awarding agency or pass-through entity to the recipient to carry out a public purpose authorized by a law of the United States.  Cooperative agreements differ from a grant in that it provides for substantial involvement between the Federal awarding agency or pass-through entity and the recipient in carrying out the activity contemplated by the Federal award.

Corrective action (audit purposes):  The action taken by the entity that was or is being audited that corrects identified deficiencies, produces recommended improvements, and/or demonstrates that audit findings are either invalid or do not warrant auditee action.

Cost sharing or matching:  The portion of project costs not paid by Federal funds (unless otherwise authorized by Federal statute).  See 2 CFR 200.306.

Debarment:  An action taken by the Procurement Executive (debarring official) who can prevent an organization or individual from doing business with the Federal Government-wide and participating in Federal Assistance programs.  Debarment may be based on convictions, civil judgments or fact-based cases involving crimes, fraud, embezzlement, theft, forgery, bribery, poor performance, non-performance, or false statements, as well as other causes.  See 2 CFR 180.

Digital Accountability and Transparency Act (The DATA Act):  Enacted to make information on Federal expenditures accessible and transparent to the American public, with the goal of improving their ability to track and understand how the government is spending their tax dollars.  To achieve this, prescribed financial and program information on Federal acquisitions and assistance must be posted monthly by Federal agencies on USASpending.gov.

Direct costs:  Any cost that can be directly assigned to certain activities or to a particular award relatively easily with a high degree of accuracy (costs that can be specifically identified with a particular project or activity).  Usually included are compensation for employees working directly on the project or program, the travel and fringe costs of those employees as it relates specifically to the award-funded activity (can include honoraria if this is an individual travel grant), as well training and planning activities for the project/program, and equipment and supplies related to the award activity.

Disallowed cost:  Also called “Unallowed Costs.”  These are charges to an award that the awarding agency determines to be unallowable, in accordance with the applicable Federal cost principles or other terms and conditions contained in the award.

Employer identification number (EIN):  A Federal tax identification number used to identify a business entity or Federal agency with responsibility for reporting taxes on employees, vendors and grant recipients with U.S. tax liabilities.  EIN's are issued by the Internal Revenue Service (IRS).  Foreign businesses and organizations that do not have U.S. tax liabilities will not have TIN's.  See also taxpayer identification number (TIN).

Federal assistance directive (FAD):  The State Department's primary procedural manual for executing and overseeing Federal Assistance, which is updated by the Office of the Global Acquisition within the Bureau of Administration (A/GA) annually for each fiscal year.

Federal audit clearinghouse (FAC):  A database supported by OMB that contains all audits of organizations receiving Federal Assistance funds that were conducted under the auspices of 2 CFR 200.500 - Subpart F.

Federal award identification number (FAIN):  A standard, unique identification number assigned to each Federal Assistance award.  The FAIN is tracked and used for reporting in a number of Department and Federal systems, such as GFMS, RFMS, and USASpending.gov.  SAMS users will have the FAIN automatically assigned when a new award is created.

Federal financial assistance:  Assistance that non-Federal entities receive or administer in the form of grants and/or cooperative agreements.  This also includes assistance that non-Federal entities receive or administer in the form of loans, interest subsidies, and insurances.

Federal financial report (FFR):  This required financial report, called the FFR or the SF-425, is the mandatory financial reporting form for domestic and overseas entities.  The FFR is not required for Individuals, Fixed Amount Awards (FAAs), or Overseas Schools (defined as U.S. sponsored elementary or secondary school abroad participating in the Department of State's Consolidated Overseas Schools Assistance Program).

Federal travel regulation (FTR):  The FTR, codified in 41 CFR 300-304, implements statutory requirements and Executive branch policies for travel by Federal civilian employees and others (such as Invitational Travelers) authorized to travel at government expense.  The FTR does not apply to individuals traveling under grants, although its rules may be used as a guide for “reasonableness”.

Financial management officer (FMO):  An FMO is a foreign service specialist stationed at post overseas, or at Financial Service Center in the U.S., responsible for the management of the financial activities of the post, including services to other U.S. Government agencies.  They perform similar work when assigned to a Financial Service Center or Washington, D.C.

Fixed amount awards (FAA):  A subcategory of grant with simplified terms and conditions, and reporting structure.  FAAs are simplified awards that cannot exceed $250,000 and have a period of performance of five years or less.

Foreign public entity (FPE):  Refers to a foreign government or foreign governmental entity; a public international organization (PIO), which is an organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f); an entity owned (in whole or in part) or controlled by a foreign government; or any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities.  See 2 CFR 200.1.

General services officer (GSO):  A GSO is responsible for a range of functions that involve the management of physical resources and logistical functions at diplomatic and consular posts overseas.  Their duties include oversight of contracting, inventory/property, physical facilities, space management, travel and transportation, motor-pool, and maintenance and repair schedules.  In addition to supporting State Department personnel, GSOs often provide support to other U.S. Government agencies operating at the post.

Global Business Intelligence (GBI) platform:  The Department-wide platform to implement enhanced financial management analytics and reporting capabilities and linked with the Global and Regional Financial Management Systems (GFMS and RFMS).

Global Financial Management System (GFMS):  GFMS is the Department’s domestic financial management system which allows bureaus to process commitments, obligations, payments, collections, advances, and other financial transactions.  Many feeder systems interface with GFMS, including the State Assistance Management System, the Department's grants management system, and HHS’s Payment Management System (PMS).

Grants officer (GO):  The person with legal responsibility for specific actions on assistance awards under their direction, as delineated above (see 4 FAM 615).  Authorized by a warrant issued by A/OPE, only the GO may represent the U.S. Government in negotiating award terms and conditions; committing to provide funds to a recipient to carry out the award purpose; and entering into, amending, or terminating an award.  GO's must be direct-hire American citizens.

Grants officer representative (GOR):  The GOR has managerial responsibilities for the overall monitoring of all aspects of an award and is required to exercise prudent management and oversight through monitoring and evaluating the recipient's performance.  GORs must be certified by A/OPE/AP/FA and designated, in writing, by the GO, to oversee certain aspects of a specific assistance agreement.  GORs must be assigned for all grants and cooperative agreements where the U.S. share of costs is over $100,000.  For awards less than $100,000 designation of a GOR is at the GO’s discretion.

Grants Review Education and Training (GREAT):  A/GA/APD/FA/FAPD conducts Grant Management Reviews (GMRs) of domestic bureaus/offices, and Grant Review Evaluation Assistance and Trainings (GREATs) of overseas posts to mitigate risk by strengthening the Department’s management and oversight of its Federal programs.  The reviews do this by standardizing Federal Assistance procedures, sharing best practices, ensuring all procedural requirements are met, and training Department staff.

Honorarium:  A payment given to a professional person for services.  Usually provided only via an individual travel grant that has public purposes, meaning intended to benefit the public rather than the Department, per se.  This is considered a direct cost (included under the personnel cost category) and if the honorarium is at or over $600, it is reportable to the IRS via the 1099-G form (for individuals).

Indirect costs:  Often called overhead, or facilities and administrative costs, are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective.  Indirect costs are not allowable costs for Federal Assistance awarded directly to individuals.  All allowable costs for awards to individuals must be direct costs only.  Indirect costs do not generally include the costs of personnel who work for the recipient organization and are working directly on the project.  See 2 CFR 200.1, Subpart E.

Interagency agreement (IAA):  An IAA is a written agreement entered into between two Federal agencies, or major organizational units within an agency, which specifies the goods to be furnished or tasks to be accomplished by one agency (the servicing agency) in support of the other (the requesting agency).  IAAs are not Federal Assistance and are not covered by 2 CFR 200.  IAAs differ from Memorandum of Understanding (MOU)/Memorandum of Agreement (MOA), which are agreements between agencies or bureaus that do not involve payment or transfer of funding.  If the agreement involves funding, an IAA must be executed, typically through the Department of Health and Human Services' (HHS) G-Invoicing process.

Invitational travel:  A type of travel authorization used for Federal employees working for other Federal agencies when the travel is on behalf of, and paid by, the Department of State.  Invitational travel may also be authorized for U.S. or foreign citizens who are (1) not employed by the U.S. Government and (2) not receiving any type of Federal compensation in excess of $1.00 per year, when it is determined that the functions to be performed are a direct service to the U.S. Government.  A Comptroller General Decision issued October 1, 1996, limits invitational travel as travel by an individual “…performing a direct service for the government ...  The ‘direct service’ test is not met merely because the agency is interested in the subject matter of the conference or because the conference will enhance the agency’s program objectives.”  Invitational travel is processed like normal staff travel in E2 Solutions.

Issuing bureau or post:  The Federal agency that provides an assistance award directly to the recipient.

Letter of agreement (LOA):  A binding international agreement, not a Federal Assistance instrument.  Obligations to FPE's under C-175 authority (except "bulk obligations" under a Letter of Agreement) must be obligated under BOC 4124 and reported on USASpending.gov in accordance with the DATA Act.

Letter grants:  A type of Federal Assistance award to an FPE issued through a letter or other signed document that obligates the funding, with an accompanying terms and conditions document which may vary from the Award Provisions for Foreign Public Entities.  Letter grants are typically used to support an FPE’s annual budget or for trust funds.  Letter grants are not the same as Letters of Agreement signed by offices with C-175 Authority.

Major program:  A Federal program determined by the auditor to be a major program for auditing purposes in accordance with 2 CFR 200.518.

Management decision:  The evaluation by the issuing bureau or post or pass-through entity of the audit findings and corrective action plan and the issuance of a written decision as to what corrective action is necessary.  See 2 CFR 200.1 and 2 CFR 200.521.

Merit review:  A process that evaluates grant applications to ensure they are fairly and impartially assessed against the criteria for the funding opportunity.

Monitoring:  A process where the program's performance, finances, and other business aspects of a grant are reviewed using information from reports, audits, site visits, and other sources.  See and 2 CFR 200.328-333.

MyGrants:  The Federal Assistance management system at the Department of State.  MyGrants effectively streamlines award processing and approval flows.

Negotiated indirect cost rate agreement (NICRA):  An agreement between a recipient of Federal funds and the U.S. Government for the rate at which the U.S. Government will reimburse indirect costs.  Organizations doing business with the U.S. Government may be assigned their own NICRA to cover any indirect or overhead costs that cannot be assigned directly to individual awards.  Each organization negotiates its indirect cost rates with one government agency that has been assigned cognizance, usually based upon their providing the organization with the largest dollar amount of assistance.  The resulting NICRA is binding on the entire government.  See 2 CFR 200.414.

Non-Federal entities:  A state, local government, Indian tribe, institution of higher education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient.

Notice of Funding Opportunity (NOFO):  A NOFO is a document that informs the public of a Federal agency's intention to award grants or cooperative agreements.  A NOFO is the standard method for announcing a competition for available funds.  NOFOs provide details for the public to understand the program goals and objectives, the requirements for applying, and how applications will be reviewed.

Novation:  Required when a recipient changes any part of its business structure including its name, entity type, EIN, or UEI.  When this occurs, the original obligation under the former business structure is discharged and substituted with a new obligation under the newly created structure.  Novations differ from “replacement grants” because, in this instance, the same recipient is carrying out the award even though their business structure has been modified.

Office of Indirect Cost Services:  The Department of State uses the Department of the Interior's Office of Indirect Cost Services to negotiate indirect cost rates for recipients for whom the Department serves as their cognizant agency.  A/GA/AMD/PAS is the liaison with the Department of Interior, Interior Business Center's Indirect Cost and Contract Audit Services Office (DOI/IBC/ICS).  Inquiries and questions can be sent to AQM-NICRA@state.gov.

Oversight agency for audit:  The issuing bureau or post that provides the predominant amount of direct funding to a recipient is assigned as the cognizant agency for audit.  When there is no direct funding, the Federal agency with the predominant indirect funding shall assume the oversight responsibilities.  The duties of the oversight agency for audit are described in- 2 CFR 200.513.

Pass-through entity:  A recipient or subrecipient that provides a sub-award to a subrecipient to carry out part of a Federal program.

Payment Management System (PMS):  A centralized payment system managed by the U.S. Department of Health and Human Services (HHS), Program Support Center (PSC), Payment Management Services (PMS) that accomplishes all payment-related activities from the time of award through closeout.  Use of PMS for all payments issued by domestic bureaus to U.S.-based recipients.

Performance Progress Report (PPR):  Not to be confused with the mandated annual report required by the Office of Foreign Assistance (F) for bureau-wide or post-wide activities (also referred to as the PPR), this report is the required narrative delineation of program activities by the recipient under a Federal Assistance award.  It demonstrates the recipient's level of success in meeting agreed upon goals and objectives under the award, and/or provides clear and reasonable justifications as to why they have not been met.

Period of performance (POP):  Documented on the DS-1909/1909I, the POP specifies the start and end dates of the award, during which the recipient can incur authorized costs.  The POP must begin on or after the date that the warranted GO signs the award, and the award purpose must be completed by the POP end date.  The POP can be revised only through an agreement between the recipient and the GO, who must issue an amendment to extend the end date prior to the award's expiration.  See 2 CFR 200.1 and 2 CRF 200.308.

Pre-award costs:  Costs incurred by the recipient at their own financial risk before the authorized start date of an award.  A GO is authorized, if warranted and in line with the grant requirements, to include a clause in the award document to allow the recipient to be reimbursed for pre-award costs.  However, the approval of pre-award costs must not be standard business practice.  Pre-award costs must be necessary for the effective and economical conduct of the project, be in the approved budget, and be otherwise allowable in accordance with U.S. Government-wide and bureau-specific cost principles.  See 2 CFR 200.458.

Program officer (PO):  An individual who formulates and implements a specific assistance program, which may include the development of the program concept and Notice of Funding Opportunity (NOFO), review of application, selection of recipient, etc.  The PO may or may not become the GOR.

Program specific audit:  When an auditee expends Federal awards under only one Federal program (excluding Research and Development) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the auditee may elect to have a program-specific audit conducted in accordance with 2 CFR 200.507 Program-specific audits.

Public International Organization (PIO):  A public international organization (PIO) is entitled to enjoy privileges, exemptions and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288).

Questioned cost:  A cost that is questioned by the auditor because of an audit finding:

(1)  Which resulted from a violation, or possible violation, of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the use of Federal funds, including funds used to match Federal funds;

(2)  Where the costs, at the time of the audit, are not supported by adequate documentation; or

(3)  Where the costs incurred appear unreasonable and do not reflect the actions a prudent person would take in the present circumstances.  See 2 CFR 200.1.

(4)  A questioned cost should not be considered an improper payment until the transaction has been completely reviewed and is confirmed to be improper.

Ratification:  A process of approving an unauthorized commitment by an official who has the authority to do so.  Ratification cannot occur unless the U.S. Government official with authority to ratify an unauthorized commitment confirms sufficient funding is legally available for obligation.

Recipient:  The organization or individual that receives a Federal award directly from an issuing bureau or post to carry out an activity under a Federal program.  The term recipient does not include subrecipients.

Regional Financial Management System (RFMS):  The Department’s overseas financial management system used by posts to manage their funds and process obligations, payments, collections, advances, and other transactions.  Note that the Global Financial Management System (GFMS) is the RFMS counterpart for the Department’s domestic operations.

Replacement grant:  Refers to a new award issued to replace an initial award when the original recipient (not a successor) is unable or unwilling to perform the planned project in whole or in part.  Replacement grants can only be issued for the balance of funds remaining in the original award and for the activities remaining in the original project scope.  No change in scope or increase in funding is permitted in replacement grants and there must be a relationship between the original recipient and the proposed recipient of the replacement grant.

Scope:  The aims, objectives, purpose, and range of activities or other aspects outlined in the Notice of Award that make up the purpose of the assistance award.  An award's scope cannot be changed after obligation without invalidating the bona fide need requirement.

Single Audit:  Previously known as the OMB Circular A-133 Single Audit, is an organization-wide financial statement and Federal awards’ audit of a non-Federal entity that expends $1,000,000 or more in Federal funds in one year.  Such recipients (or subrecipients) must have a single audit conducted in accordance with 2 CFR 200.514 except when it elects to have a program-specific audit conducted.  Audit includes both the entity’s financial statements and the Federal awards.  See 2 CFR 200, Subpart F and 2 CFR 600.

Subaward:  An award given by a primary Federal recipient to a subrecipient to help carry out part of a Federal award.  A subaward does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program.  Terms and conditions, as well as applicable Federal/Department regulations, transfer down from the primary award to all subawards.

Subrecipient:  A non-Federal entity that receives a subaward from a primary Federal recipient to carry out part of a Federal program.  Does not include an individual that is a beneficiary of such a program.  The legal entity to which a sub-award is made accountable to the recipient for the use of the funds provided.

Substantial involvement:  Greater Federal Government participation in the project than with grant agreements.

Suspension:  An action taken by the Procurement Executive (suspending official) to temporarily impose a status of ineligibility for procurement and non-procurement transactions, pending completion of an investigation or legal proceedings to exclude an organization or individual from participating in Federal Assistance award programs.  See 2 CFR 180.

System for Award Management (SAM.gov):  SAM.gov is the U.S. Federal government database for registering entities that want to do business with, including the receipt of Federal Assistance from, the U.S. Federal Government.  SAM.gov in recent years Official consolidated the capabilities of Central Contractor Registration database (CCR/Fed-Reg), Online Representations and Certifications Application (ORCA), and the Excluded Parties Listing System (EPLS).

Taxpayer identification number (TIN):  An identification number assigned and used by the Internal Revenue Service (IRS) in the administration of tax laws.  Used by individuals, businesses, and U.S. agencies in reporting taxes and other returns.  In the case of individuals and sole proprietorships, the TIN may be the social security number (SSN) which is protected under the Privacy Act as PII and must be treated as SBU information.  SSN's must not be included on any Federal Assistance forms.  Foreign individuals and organizations that do not have U.S. tax liabilities will not have TINs.  See also employee identification number (EIN).

Unallowable costs:  Costs determined not to be reasonable, allowable, or allocable, or otherwise in accordance with the applicable Federal cost principles delineated in 2 CFR 200 - Subpart E, the Federal Acquisition Regulation (FAR) at 48 CFR 30 and 48 CFR 31, as applicable or other terms and conditions contained in the award.

Unauthorized commitment:  An agreement that is not binding solely because the government representative who made it lacked the authority to enter into an award or contract on behalf of the government.  It also includes an expenditure made when no valid obligation exists, or an expenditure that exceeds the amount obligated.  Unauthorized commitments must be ratified by the Department’s Senior Procurement Executive (A/GA) or depending upon the dollar amount may be ratified by the deputy chief of mission at post or the bureau’s Executive Director.  See also:  Ratification.

Unique entity identifier (UEI):  This replaced the Data Universal Numbering System (DUNS) numbers, the UEI has now become the official identifier for doing business with the U.S. Government as of April 4, 2022.  Like a tax ID number, the UEI is used to identify potential recipients eligible for Federal grants, awards and contracts.  UEIs are unique twelve-digit alpha-numeric codes assigned SAM.gov (see above) for any entity wishing to do business with the U.S. Government.

Unliquidated obligations (ULOs):  For financial reports prepared on a cash basis, this is the amount of obligations incurred by the recipient that has not been paid.  For reports prepared on an accrued expenditure basis, they represent the amount in obligations incurred by the recipient for which an outlay has not been recorded or paid.

Unobligated balance:  The portion of the funds authorized by the Federal-awarding agency that has not been obligated by the recipient.  It is determined by deducting the cumulative obligations from the cumulative funds authorized by the awarding agency.

USASpending.gov:  Federal website where financial and programmatic information on Federal acquisitions and assistance is made available to the public as required by the DATA Act.  See also: Digital Accountability and Transparency Act.

Voluntary contribution:  A discretionary Federal Assistance allotment provided to organizations such as Foreign Public Entities (FPEs), to directly support the activities of the organization, or sustain the general budget and operations of the organization.  While these funds may advance specific activities and goals of the U.S. Government, the central purpose of the award is to enable the organization to carry out its activities.  Use of voluntary contributions requires specific statutory authorization.

Working capital advance:  Used when a recipient does not meet the criteria for advance payments and reimbursement is not feasible because the recipient lacks sufficient working capital.  Under this procedure, the issuing bureau or post advances cash payments to the recipient to cover its estimated disbursement needs for an initial period.  Thereafter, the awarding agency reimburses the recipient for its actual cash disbursements.

4 FAM 618  Through 619 UNASSIGNED

 

UNCLASSIFIED (U)