ATTACHMENT J.1.05.pdf

FIXED OBLIGATION GRANT (FOG)

ENTITY ELIGIBILITY CHECKLIST

A Mandatory Reference for ADS Chapter 303

New Reference: 11/08/2010 Responsible Office: M/OAA File Name: 303mak_110810

11/08/2010 New Reference

FIXED OBLIGATION GRANT (FOG) ENTITY ELIGIBILITY CHECKLIST

SECTION A - ENTITY ELIGIBILITY

1. Organizational integrity Obtain copy of Articles of Incorporation or other documentation which substantiates the legal character/registration of the entity in country/region of operation.

Identify principals/key personnel/organization structure Vet the organization/principals through local RSO or other checkpoints to

i. Validate good standing in local community (integrity, reputation, internal controls)

ii. Ensure minimum statutory restrictions have been met

1. Excluded Parties List System (EPLS)

2. Terrorism/Special Designated Nationals (SDN)/Blocked

Persons/Office of Foreign Assets Control (OFAC)/etc.

2. Organization technical capacity to achieve proposed FOG activity Staff expertise/management capabilities to be utilized for activity Intellectual property to be applied Technology resources to be applied Other assets available and commitments incurred to determine cash flow

3. Past Performance in the Sector Identify similar activities the entity has implemented Obtain third party information on performance related to quality of performance, timeliness of completion, input from past funding entities and activity beneficiaries

Review, if available, objective performance documentation such as evaluations

4. FOG activity implementation viability Are milestones appropriate to the activity? - “reasonable certainty about the cost and USAID can reasonably define accomplishment of the purpose of the grant or milestones.”

Are milestones verifiable?

Is there sufficient information available on estimated costs to:

i. price milestones such that the FOG represents a good value to the Agency?

ii. identify risks to both the implementing entity and Agency and mitigate the risks through “special conditions”?

iii. milestone pricing will

1. ensure payments correspond to milestone achievement costs?

2. permit activity liquidity throughout implementation?

Are FOG objectives/purposes to be accomplished within applicable

Source/Origin/Nationality restrictions?

5. FOG Pre-Award financial review checklist applicable for authorizing advances of funds, if necessary

Is there a properly established bank account to receive USAID advances?

Are account-related bank unused checks and petty cash on hand adequately safeguarded?

Are there appropriate controls established over account disbursements?

Are procedures established adequate to document account disbursement usage for grant activities?

Are appropriate procedures established for regular reconciliation of bank account statements with internal records?

Does recipient have prior experience with managing advances from external sources? If so, was past accountability adequate or past issues resolved? (Note: prior advance management experience not required).

Does recipient have a comprehensive cash-flow projection for the proposed activity which supports the proposed implementation plan, and which can be readily updated periodically to project revised cash needs?

Does the recipient understand USAID cash management requirements using either the 30 day rolling advance process or the working capital advance type methodology (see ADS 303, Awarding Fixed Obligation Grants Additional Help Document)?

A written report of findings on the above points should be made as part of the FOG checklist documentation. The report should provide a summary assessment of the overall advance fiduciary risks as high, medium or low with a brief summary supporting narrative.

6. Minimum statutory certifications/representations/provisions included/obtained, as appropriate

Lobbying: Only applies to grants greater than $100,000;

Terrorist financing: Simplified version of standard clause;

Drug Trafficking certifications: Only applies to grants of greater than

$100,000;

Equal Opportunity Certification: Applicants not legally required to complete, but we are legally required to include - attach a copy to the grant;

Individuals authorized to commit the recipient;

DUNS number;

Procurement information: Local procurement rules apply for small grants under ADS 311;

Estimated Costs of Communications Products: Policy requirement only applies to communications product exceeding US $25,000 in value;

Condom and Prostitution provisions: Only apply to HIV/AIDS activities (see AAPD 05-04 Amendment 3);

VOLUNTARY POPULATION PLANNING ACTIVITIES –

MANDATORY REQUIREMENTS (MAY 2006): Mandatory Standard Provision in ADS 303 required for all assistance awards, regardless of the purpose of the award; and

Other Family Planning provisions as required in ADS 303, if the purpose of the FOG involves family planning activities: Note that programs outside the usual Global Health area may involve family planning-related activities, in which case the required-when-applicable provisions must also be included.

SECTION B – INSTITUTIONAL CAPACITY BUILDING

Minimum organizational capabilities for determining the extent of technical assistance the recipient may require

Assess ability to maintain/manage auditable records (for cost reimbursement grants);

Assess availability of local/certified accounting services (for cost reimbursement grants);

Assess ability to procure/manage property/personnel; and Assess management skills/resources