|
|
|
|
|
|
|
|
|
|
  |
 |
  |
ANNEX 4
RECENT USAID MANAGEMENT REFORMS
In addition, a number of other Agency reforms have been initiated:
- Cost-Sharing: In July 1994, USAID Policy Determination 16 was revised to eliminate the mandatory 25 percent cost-sharing contribution required to receive an operational program grant or specific support grant. Cost-sharing remains an important element of the USAID/PVO relationship, but will be applied on a flexible and case-specific basis. (Source: Cable 1994 State 184498 dated 7/11/94)
- Implementation Approvals: In August 1994, a number of changes were made to streamline required approvals under grants and cooperative agreements. These permit: approving recipients' overall financial systems and procurement, personnel and travel policies; clarifying that no USAID approvals are needed for salaries above a certain dollar level and for hiring individual consultants; limiting the number of "key personnel" approvals that can be included in a grant/cooperative agreement; clarifying that USAID's advance approval of international travel is not required; and including trip reports as part of regular progress reports, rather than separate submissions. (Source: USAID General Notice dated 8/8/94)
- Customer Service Standards: In August 1994, USAID developed and published its initial customer service standards for partners covering three areas: quality (improving processes and simplifying business practices); timeliness (improving turnaround time for USAID processes); and greater access and more transparency to Agency activities and information. Specific reform targets were included for each area. (Source: Phase I Customer Ser-vice Plan: Establishing Quality Service Standards for Working with USAID's Development Partners: Private Voluntary Organizations, Universities and Private Businesses, August 1994)
- PVO Registration: In January 1995, USAID issued streamlined requirements for U.S. PVO registration. The number of required documents was reduced from 18 to six for new applicants, and from six to three for annual registra-tion renewals. (Source: PVC materials dated 1/24/95)
- Administrative Requirements: In February 1995, USAID-specific revisions to OMB Circular A-110 (administrative requirements for grants and cooperative agreements) became effective. Among the changes are: USAID staff cannot impose administrative requirements additional to those outlined in A-110; USAID may apply less restrictive requirements when making small awards (currently defined as less than $25,000); specific guidance is provided on appropriate use of grants and cooperative agreements; and progress and financial reports are no longer required on the same schedule (allowing progress reports to be submitted less frequently). (Sources: Federal Register dated 1/19/95 and M/OP/POL documents)
- Country Strategic Plans: In February 1995, USAID issued its Guidelines for Strategic Plans. A key part of these guidelines refers to the elaboration of country strategic plans and indicates that missions should develop their plans in coordination and active collaboration with their local counterparts, both governmental and nongovernmental. (Source: Guidelines for Strategic Plans, February 1995)
- "Reengineering": In November 1994, USAID completed its Operations Business Area Analysis report, which contains recommendations for restructuring the way USAID programs, implements, and evaluates its development assistance. The Agency's "reengineered" operating systems will be in place by October 1, 1995. Key aspects of the new operating system include: participatory planning with USAID's partners and customers; focusing on the achievement of activity objectives; empowering customers and partners, i.e. investing them with authority to make and implement decisions, as well as holding them accountable for those decisions; and using interagency teams to achieve agreed-to objectives or results. (Source: Operations Business Area Analysis Core Report, November 1994)
- Principles for Award of Assistance Instruments: At its January 1995 meeting, the Advisory Committee on Voluntary Foreign Aid approved a set of principles for the award of assistance instruments (grants and cooperative agreements) to PVOs and NGOs. These principles, which were developed in collaboration with USAID's Office of Procurement, were forwarded to the USAID Administrator for review and action. The principles include: achiev-ing a higher degree of standardization of policy and procedure in assistance to PVOs/NGOs; selection of grant or cooperative agreement; clarification of "substantial involvement"; and focusing on activity results rather than inputs or outputs. (Source: ACVFA January 1995 Quarterly Report)
- Audit Requirements: USAID and the PVO community have been coordinating with OMB, and as of March 1995, the following changes to OMB Circular A-133 (audits) were anticipated but had not yet been published in final: USAID will determine when it is appropriate for A-133 audit requirements to apply to foreign award recipients; the threshold for requiring annual audits will be increased to $300,000 per year; and two years of "clean" audit reports would result in less burdensome audits (e.g., testing of 25 percent of federal expenditures (rather than 50 or 100 percent). (Source: M/OP notice on the Internet, dated 11/13/94)
In May 1994, USAID changed the audit threshold for non-U.S. NGOs functioning as direct recipients of USAID funding. Now, NGOs that receive less than $100,000 per year per agreement in direct USAID funding (up to a total of $250,000 per year) no longer are required to follow OMB Circular A-133 requirements for an annual organization-wide audit. (Source: USAID General Notice dated 5/6/94)
- USAID/PVO Partnership: A USAID working group completed a new Agency policy on USAID's partnership with U.S. PVOs which was approved in April and disseminated to USAID worldwide. Although the draft policy is primarily aimed at USAID's relationship with U.S. organizations, USAID's relationship with local NGOs is clarified on several points, including: the need for regular consultation with NGOs in establishing program priorities; working with NGOs as development partners on USAID program priorities; supporting the relationships of U.S. PVOs and local NGOs; and supporting institutional capacity building for NGOs, as well as for U.S. PVOs, as related to their work with local NGOs. (Source: USAID/PVO Partnership: Policy Guidance, April 1995)
 |
|||
Last Updated on: December 22, 2000 |
