Intro To Grant Funding

WORLD VISION, INC.
(WVUS) SELF-STUDY GRANT TRAINING SERIES
INTRODUCTION TO
WORLD VISION, INC.
(WVUS) GRANT FUNDING
WORKBOOK 1
Copyright 1996 World Vision, Inc. (WVUS) International rights reserved. No part of this workbook may
be reproduced in any form without written permission from World Vision, Inc. (WVUS)
World Vision, Inc. (WVUS) Finance and Contract Services

Last Revised: July, 2004
NOTICE TO ALL USERS
This training workbook is for World Vision (WV) internal use only.
WV is not responsible for the use of the material contained in this workbook
by anyone not an employee of WV. Neither is WV responsible or liable for
use by anyone not an employee, of any representations, conclusions, advice,
or interpretations of materials made by WV in this workbook.
TABLE OF CONTENTS
Prologue
Introduction
Preliminary Exercise
CHAPTER ONE. OVERVIEW OF "WORLD VISION, INC. (WVUS)"

Section 1. World Vision, Inc. (WVUS) is a Support Office
Section 2. World Vision, Inc. (WVUS) Provides Resources to
the WV Partnership
Exercise One
CHAPTER TWO. ORGANIZATIONAL STRUCTURE OF WORLD VISION,

INC. (WVUS)
Section 1. World Vision, Inc. (WVUS)’s Organizational Structure
Section Fiscal Management
Exercise Two
CHAPTER THREE. WORLD VISION, INC. (WVUS)'S DONORS

Section 1. "Public" and "Private" Donors
Section 2. United States Government Agencies
Section 3. Multilateral Donors
Section 4. Private Voluntary Organizations (PVOs) As Donors
Section 5. Donors of Private Gifts-in-Kind (GIK)
Exercise Three
CHAPTER FOUR. USING U.S. GOVERNMENT FUNDS IN WV’s MINISTRIES

Section 1. Why Use U.S. Government Funding ?
Section 2. What "Strings” Are Attached to U.S. Government Grants?
Section 3. Does World Vision Compromise Its Integrity?
Section 4. Why Does the U.S. Government Require Matching Funds?
CHAPTER FIVE. THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

USAID
Section 1. What Is "USAID" ?
Section 2. The Two Main Divisions of USAID
Section 3. USAID/Washington Offices and Bureaus
Section 4. The USAID Missions
Section 5. Where Does USAID Get Its Funding?
Section 6. What Types of Program Does USAID Fund?
Section 7. Which USAID Offices Fund My Type of Project?
Exercise Five
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TABLE OF CONTENTS (CONT.)
CHAPTER SIX. THE USAID SYSTEM

Section 1. Who Should I Contact in USAID?
Section 2. USAID's Fiscal Year
Section 3. Important Issues from USAID's Perspective
Section 4. Important Issues from World Vision, Inc. (WVUS)'s Perspective
Exercise Six
CHAPTER SEVEN. THE LIFE CYCLE OF A USAID GRANT OR

COOPERATIVE AGREEMENT
Section 1. The "Normal" Life of a USAID Grant
Section 2. The Pre-Proposal Stage
Section 3. The Proposal Stage
Section 4. The Proposal Submission and Negotiation Stage
Section 5. The Award Stage
Section 6. The Program Implementation Stage
Section 7. Grant Amendments
Section 8. The End-of-Project Stage
Section 9. The Closeout Stage
Section 10. The Final Audit Stage
Exercise Seven
Final Exam
Answer Key
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PROLOGUE
_____________________________
The following is part of a World Vision, Inc. (WVUS) Self-Study Grant Training Series
especially designed for your use by World Vision, Inc. (WVUS) Finance & Contract
Services. The scope of material covered in the Training Series is meant as an
introduction to some of the crucial aspects of cash and commodity grant management.
While there are many detailed aspects of grant management which are not covered here,
we hope that you will find each of the workbooks in the series helpful, informative, and
easy to use.
If you need more information or assistance, please contact your World Vision, Inc.
(WVUS) Finance Officer or Grant Contract Officer.
May God bless you and your work!
__________________
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INTRODUCTION
Welcome to the first workbook in the World Vision, Inc. (WVUS) Self-Study Grant
Training Series. This workbook deals with World Vision, Inc. (WVUS)’s role,
functions, and working relationships with its donors and partners. This workbook
provides an overview of grant funding guidelines and principles. You will gain a general
understanding of the structure of the United States Agency for International
Development (USAID), the types of grants, and responsibilities involved with grant
funds.
Before we get started, you will need a pencil or pen so that you can complete the practice
exercise at the end of each section. A margin has been provided so that you can note any
questions or comments which you have about the material presented in the workbook.
Please bring these questions and comments to the attention of your World Vision, Inc.
(WVUS) Finance Officer or Contract Officer. Make the Workbook work for you!
To start, let's test how much you already know about World Vision, Inc. (WVUS) Read
through the Preliminary Exercise on the next page and then mark what you think are the
correct answers. Do not look at the answers in the back of the book. Remember:
You're not supposed to know all the answers until you have completed the entire
workbook. After you have completed the Preliminary Exercise, check your answers with
those listed in the Answer Key at the back of the workbook. How well did you do?
WHAT I NEED TO KNOW ABOUT WORLD VISION, INC. (WVUS) AND ITS
PARTNERS:
PRELIMINARY EXERCISE
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HOW MUCH DO I ALREADY KNOW ABOUT WORLD VISION, INC. (WVUS)
GRANT FUNDING?
Directions: Check "T" if the statement is true; check "F" if the statement is false.
T F 1. World Vision, Inc. (WVUS) also known as World Vision United States
(WVUS), is a fundraising office within the World Vision Partnership.
T F 2. Most of World Vision, Inc. (WVUS)’s G.I.K. income comes from the U.S.
Agency for International Development (USAID).
T F 3. World Vision, Inc. (WVUS) provides cash, food commodities, gift-in-kind

(GIK) resources and technical assistance to the World Vision partnership.
T F 4. World Vision, Inc. (WVUS)’s International Programs Group (IPG) is located

in both Washington, D.C. and Federal Way, Washington.
T F 5. World Vision, Inc. (WVUS)’s Gifts-In-Kind Department (GIK) is responsible

for the logistics and shipment of non-food commodities.
T F 6. World Vision, Inc. (WVUS) procures funding from the U.S. Agency for
International Development (USAID), the U.S. Customs Service, the U.S.
Department of Agriculture, and the U.S. State Department.
T F 7. USAID/Washington and the USAID Missions, share funding allocated under a

budget approved annually by the U.S. Congress.
T F 8. USAID's fiscal year begins in September of each year.
T F 9. Both cash and gifts-in-kind (GIK) can be used as match for most USAID
grants.
T F 10. U.S. Government food commodities are available through USAID/W's Office
of Food for Peace (FFP).
_T F 11. The USAID/W Office of Foreign Disaster Assistance (OFDA) is the primary
source for centrally funded relief and disaster grants.
PRELIMINARY EXERCISE (CONT.)
T F 12. USAID Section 202(e) grants provide cash funding for institutional
strengthening.
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T F 13. USAID grant officers deal exclusively with the legal and financial aspects of
grants.
T F 14. USAID Mission goals and strategies are outlined in their Country Development
Strategy Statements (CDSS) which are prepared periodically by USAID
Mission staff.
T F 15. USAID is particularly interested in promoting sustainability, partnerships, and

integrated approaches in the programs which it funds.
T F 16. World Vision, Inc. (WVUS)’s Indirect Cost Rate covers costs incurred by WV
National Offices and World Vision Partnership Office in the administration of
USAID funded grants.
T F 17. A grant is legally binding once it has been signed by the World Vision, Inc.
(WVUS)’s Vice President or his designee.
T F 18. Further work is done on the design of health and development programs (in the
form of a Detailed Implementation Plan, or DIP) during the Program
Implementation Stage of a grant.
T F 19. The Final Audit Stage of a grant is when World Vision, Inc. (WVUS) submits
to USAID a fixed asset inventory for all property purchased with grant funding.
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CHAPTER ONE
OVERVIEW OF "WORLD VISION, INC. (WVUS)"
SECTION 1. WORLD VISION, INC. (WVUS) IS A SUPPORT OFFICE
World Vision, Inc. (WVUS) is a U.S. based non-profit corporation with its headquarters
in Federal Way, Washington.
World Vision, Inc. (WVUS) is currently the only World Vision entity which is
registered with the United States Agency for International Development (USAID). It
registers annually with USAID by filing specific registration reports, audited financial
statements, and other information regarding its corporate status as a private organization.
For more information on guidelines for accessing and accounting for USAID and U.S.
Government grants, please see the World Vision International Finance Manual, Section
#GRT 05-A-F, revised 26 September, 2002 – 4 December, 200315 February 2001.
SECTION 2. WORLD VISION, INC. (WVUS) PROVIDES RESOURCES TO

THE WV PARTNERSHIP
World Vision, Inc. (WVUS) procures cash donations, corporate gifts-in-kind,

government grants, multilateral grants, and other specialized resources for the ministries
of the WV Partnership. A listing of the resources provided by World Vision, Inc.
(WVUS) are shown on the next page:
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OVERVIEW OF RESOURCES PROVIDED BY WORLD VISION,
INC. (WVUS)
Monetary and Other Tangible Resources Provided By World Vision, Inc. (WVUS)
Cash Grants and Cooperative Agreements (in either U.S. dollars or local currencies).
Cash Donations (in U.S. dollars from private donors and foundations).
Cash for Freight Transport (for U.S. Government commodities and private gifts-in-kind).
United States Government Food Aid (in the form of commodities or cash for monetized
food commodities).
Gifts-in-kind (GIK) from private corporations.
Services-in-kind (SIK) (through collaboration with various universities and private
foundations).
Technical And Other Assistance Provided By World Vision, Inc. (WVUS)
Program design and proposal writing, grant negotiation and processing.
Ongoing programmatic assistance and training in grant management.
Periodic programmatic and financial reporting to USAID.
Assistance with program evaluations and external OMB A-133 audits.
Advocacy with the U.S. government on behalf of the WV Partnership.
Now that you have read the first chapter, turn the page
and try to answer the following questions. How much do you now know
about World Vision, Inc. (WVUS)’s purpose, structure, and function within the WVI
Partnership?
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EXERCISE 1
OVERVIEW OF "WORLD VISION, INC. (WVUS)"?
Directions: Read through the following questions carefully. Check "T" if the statement is true;
check "F" if the statement is false.
T F 1. World Vision, Inc. (WVUS)’s headquarters is in Monrovia, California.
T F 2. World Vision, Inc. (WVUS) provides resources to the WV Partnership.
T F 3. The World Vision Partnership Office registers annually as a PVO with the United
States Agency for International Development (USAID).
T F 4. World Vision, Inc. (WVUS) raises cash funding and gifts-in-kind for the use of
the World Vision Partnership.
T F 5. World Vision, Inc. (WVUS) is a fundraising office, not a program office. As

such it does not provide any programmatic technical assistance in program
design.
T F 6. World Vision, Inc. (WVUS) obtains United States Government food commodities
for use in World Vision programs. However, the U.S. Government does not
provide for the freight transport of these commodities.
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CHAPTER TWO
ORGANIZATIONAL STRUCTURE OF WORLD VISION, INC.
(WVUS)
SECTION 1. WORLD VISION, INC. (WVUS)’s ORGANIZATIONAL

STRUCTURE
World Vision, Inc. (WVUS) has offices in Washington, D.C.; Federal Way, Washington;
and Pittsburgh, Pennsylvania. In addition, certain World Vision, Inc. (WVUS) program
officers are located overseas, in the regions for which they are responsible.
World Vision, Inc. (WVUS)’s International Programs Group (IPG) is organized into several
teams with specific mandates to provide support and technical resources for the World
Vision national offices. They include: Public Policy/Advocacy Team, New Business
Team, and Integration and Alignment Team. These teams work in conjunction with the
Operations Teams who provide direct support to the field through the Technical Resources
Team, Emergency Response and Disaster Mitigation Team, Food Resources Team, as well
as the five regional teams i.e. East Africa Team, Eurasia Team, Latin America Team, West
Africa Team, and Southern Africa Team. Program Financial Services, Contract Services
(which is part of WVUS Legal Department) and the Private Programs & Gifts-in-kind -
(GIK) Department, also provide technical and logistical support to WVUS International
Programs Group. IPG offices are located in Washington, D.C. and Federal Way,
Washington.
The International Programs Group is responsible for the procurement of grants and
programmatic aspects of World Vision, Inc. (WVUS)’s relief and development programs.
This includes in country logistics and disbursements of U.S. Government Food Aid. Types
of programs include development programs (such as natural resource management, water
development, and microenterprise projects); health interventions (such as public health
training, primary health care and Child Survival programs, HIV/AIDS prevention and
education, nutrition and Vitamin A programming, and endemic disease control); and Relief
programs (such as emergency relief programs in response to natural disaster or civil
conflict, famine mitigation, repatriation, rehabilitation/reconstruction programs).
World Vision, Inc. (WVUS)’s Private Programs & Gifts-In-Kind Department (GIK),
although a separate department from International Programs Group, also provides program
support in the form of GIK includes Private Special Funding (PSF) Program & Program
Initiative, the New Business Team providing both Support Services and Business Systems..
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The Gifts-In-Kind Department (GIK) is responsible for the procurement of corporate/
private gifts-in-kind for relief and development programs. GIK is also responsible for
securing funding for freight and arranging shipment of non-food gifts-in-kind to overseas
programs.
SECTION 2: FISCAL MANAGEMENT
World Vision, Inc. (WVUS) relies on an integrated fiscal management structure with World
Vision National Offices to ensure compliance with donor financial requirements.
Grant Accounting. An expanded chart of accounts within the field financial system is
used for grant accounting. These help provide increased accountability in the area of grant
financial management. Monthly financial reports are prepared by the WV National Office
using this structure, and copies sent to World Vision, Inc. (WVUS) Finance Officer.
Reports are also accessible via the Lotus Notes Database to WVUS for most countries.
The WVI Field Financial Manual. This manual provides guidelines to help ensure proper
financial management and internal control in recording and reporting of all financial
operations. This policy manual also sets certain procurement and capital asset management
standards that help meet the compliance standards for government grants. See Section #
GRT 05A, revised 27 August 200315 February 2001.
World Vision, Inc. (WVUS) Desk Reviews And Site Visits. World Vision, Inc. (WVUS)
reviews the monthly field financial reports for each grant funded project, and prepares
quarterly SF269s Donor Financial Reports to the USG federal agency. The World Vision,
Inc. (WVUS) Program Officers and Finance Officers review narrative and financial reports
from the field projects, and periodically visit WV National Offices to provide on-site
technical support and training.
WVI Internal Audit. Internal audit reviews the WV National Offices' financial systems
and internal controls against the standards of the Field Financial Manual and United States
Government regulations. Findings are reported to the WV National Office Director, World
Vision, Inc. (WVUS) Finance Director, and World Vision, Inc. (WVUS)’s independent
external auditors.
Annual Independent Audit. Government funded projects, including commodity projects,

are included in the annual financial audit conducted by World Vision's independent auditors
(Pricewaterhouse Coopers). The independent auditors also apply additional audit steps to
government funded projects to ensure compliance with grant terms and regulations, as
required by government audit standards under OMB Circular A-133.
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Now that you have read the second chapter, turn the page
about World Vision, Inc. (WVUS)’s structural divisions and their responsibilities?
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EXERCISE 2
HOW IS WORLD VISION, INC. (WVUS) ORGANIZED?
Directions: To give you a little practice, the following are "real life" scenarios. What would you
do in each case? Write a short answer to each question in the space provided.
1. You are putting together a grant proposal budget for a large-scale development program.
Which division(s) of World Vision, Inc. (WVUS) would you contact and why?
2. You want to obtain gifts-in-kind (in particular clothing and pharmaceuticals) to

supplement the cash resources of a current World Vision program. Which division(s) of
World Vision, Inc. (WVUS) would you contact and why?
3. You have a question about the legal provisions which are attached to your USAID grant
documents and how they will affect the implementation of your grant funded program.
Which department(s) of World Vision, Inc. (WVUS) would you contact and why?
4. Your program has had to be shut down because of civil unrest in the area. You're not
sure how long the program will be held up, and you know that the donor needs to be
informed right away. Which division(s) of World Vision, Inc. (WVUS) would you
contact and why?
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CHAPTER THREE
WORLD VISION, INC. (WVUS)’s DONORS
SECTION 1. "PUBLIC" AND "PRIVATE" DONORS
World Vision, Inc. (WVUS) receives grants primarily from the United States Agency for
International Development (USAID). World Vision, Inc. (WVUS) also receives resources
from other donors including multilateral organizations, private foundations, and corporate
donors. Agencies of the United States Government, as well as multilateral organizations
such as the World Bank, are considered to be public donors. Corporations, foundations,
and individuals are considered to be private donors.
SECTION 2. UNITED STATES GOVERNMENT AGENCIES
Since the 1940's, foreign aid has been an important part of foreign policy for many nations,
including the United States. The United States administers most of its economic foreign aid
programs through the United States Agency for International Development (USAID).
USAID's foreign assistance programs were traditionallyare designed to improve the quality
of life in developing countries, and to assist these countries to become self-supporting.
USAID provides funding to improve education, agricultural production, health care,
nutrition, and economic development. In addition, USAID also provides funding for
famine and disaster relief to both developing and developed nations. Due to changes and
most recently the terrorist affacks of 11 September 2001, USAID will continue these
commitments, while reorienting their approach to tranditional development. USAID will
concentrate efforts and resources on fragile and failing states, post-conflict recovery, and
addressing global and transnational issues.
World Vision, Inc. (WVUS) also receives grants from several other United States federal,
State, local, and multilaterals organizations.
SECTION 3. MULTILATERAL DONORS
A multilateral donor is an international organization which provides resources for

international relief and development programs. World Vision, Inc. (WVUS), in conjunction
with the WVPO, continues to develop its ability to access funding from agencies such as the
World Bank and the various arms of the United Nations [e.g. United National Children’s
Fund (UNICEF), United National High Commissioner for Refugees (UNHCR), World
Food Programme (WFP)], etc..
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SECTION 4. PRIVATE VOLUNTARY ORGANIZATIONS (PVOs) AS DONORS
World Vision, Inc. (WVUS) also receives funding as a subgrantee from other partner
agencies, including CARE, CRS, John Snow, Inc. (JSI), Mercy Corps International (MCI),
Family Health International (FHI), Save The Children and many others.
SECTION 5. DONORS OF PRIVATE GIFTS-IN-KIND (GIK)
Gifts-in-kind (GIK) are tangible items rather than money. For example, some of the most
requested items of GIK items include, but are not limited to: clothing, blankets, shoes,
agricultural seedsitems, carpentry supplies, vocational tools, computers and office supplies
and equipment, vegetable seed, personal care supplies, school supplies and equipment,
vitamins, medical supplies, building materials, cooking utensils, tarps, sheeting, tents,
books, water system supplies, and pharmaceuticals.
World Vision, Inc. (WVUS) has a large private gifts-in-kind program. In fact, GIK
represents a significant portion of World Vision, Inc. (WVUS)'s income. Most private gift-
in-kind donors are commercial corporations. GIK is distributed to many World Vision
projects throughout the world as well as to partner agencies. Hundreds of thousands of lives
are touched each and every year by these gifts. More and more, World Vision, Inc.
(WVUS) is seeking to leverage gift-in-kind from private donors to supplement cash grants
from major governmental and multilateral donors.
Now that you have read Chapter Three, turn the page
about World Vision, Inc. (WVUS)’s partners and donors?
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EXERCISE 3
WORLD VISION, INC. (WVUS)’s DONORS
Directions: Read through the following questions carefully. Check "T" if the statement is true;
check "F" if it is false.
T F 1. World Vision, Inc. (WVUS) does not obtain funding from multilateral
organizations. Funding from these sources is obtained by the WVPO.
T F 2. World Vision, Inc. (WVUS) only receives grant funding from public donors.
T F 3. "Foreign aid" refers to money, goods, or services that the United States or other
governments give to help other nations and their people.
T F 4. World Vision, Inc. (WVUS) receives private gifts-in-kind from corporations,

foundations, and the United States Government.
T F 5. A significant portion of World Vision, Inc. (WVUS)’s G.I.K. income comes from
private gifts-in-kind.
T F 6. The U.S. Agency for International Development (USAID) is the only United
States Government agency that provides grants to World Vision, Inc. (WVUS).
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CHAPTER FOUR
USING U.S. GOVERNMENT FUNDS IN WV'S MINISTRIES
It is important to take a moment to understand the role of using government funds in

WV's ministries.
SECTION 1: WHY USE U.S. GOVERNMENT FUNDING?
Augmentation of Existing Program Resources. United States Government funding helps

to augment and leverage funding given by private individuals and corporate donors to carry
out the mission of World Vision. This funding allows World Vision to carry out large to
medium scale relief and development activities. USAID funding matched with private
donor funding provides World Vision with the necessary financial base to implement these
type of projects. U.S. Government funding also allows World Vision to move rapidly into a
disaster area to help save lives.
Access to Technical Expertise. Relief and development projects require a significant

amount of technical expertise to implement. This technical expertise is often available on a
consultantative basis or informational basis from USAID/Washington. USAID also
provides grant funding for independent professional technical consultants to help with the
design, implementation, and evaluation of projects.
Reasonable Autonomy. World Vision is both the implementor as well as the designer of
its programs. Although USAID does define certain parameters for the projects which it
funds, World Vision retains control in both the design and implementation of USAID
funded projects.
SECTION 2: WHAT "STRINGS" ARE ATTACHED TO U.S. GOVERNMENT

GRANTS?
There is the long-standing perception that United States Government grants have "strings"
attached to them which allows the government to exercise undue control over the recipient
of the grant funds. However, this perception is not totally accurate.
First, World Vision, Inc. (WVUS) applies for United States Government grants for
programs which World Vision has independently, for the most part, determined to pursue.
In those instances where the United States Government funding priorities match with World
Vision's program priorities, government grant resources can be utilized.
Secondly, United States Government regulations governing grants are basically efforts to
provide for appropriate accountability of U.S. taxpayer monies. World Vision has found
that these requirements are not unreasonable and reflect WV’s own commitments to ensure
accountability to any donor. The fact is that World Vision strives to be a highly
accountable organization to all of its donors, both public and private.
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SECTION 3: DOES WORLD VISION COMPROMISE ITS INTEGRITY
WHEN WE WORK WITH GOVERNMENT GRANTS?
Absolutely not! World Vision is very clear about its Christian commitment and ethos when
working with the United States Government. It is true that United States Government
funding cannot be utilized for religious or evangelistic activity. However, acceptance of
United States Government funding does not mean that World Vision itself cannot be a
Christian organization, and it does not in any way restrict how World Vision uses private
donor contributions to implement Christian witness in World Vision's programs. World
Vision uses United States Government funding to cover cost of labor, supplies, and other
"allowable" project costs. This in turn frees up private donor contributions for the ministry
aspects of World Vision programs. Integration of government funding, and private donor
funding expands both the impact of World Vision's programs, and World Vision's Christian
witness.
World Vision is very cognizant of not being overly dependent upon government funding.
World Vision, Inc. (WVUS)’s total cash and food commodity grants from the United States
Government account for less than thirty percent of the total contributions received from
other sources. World Vision considers this level of funding to be well within an appropriate
range of contributions received from a government or any single donor. Moreover, the
United States Government funding that World Vision receives, is earmarked for many
projects that are spread around the world. As such, World Vision is not in any danger of
undue influence in any single program.
As a US Government grantee of public sector funding, World Vision must sign and
acknowledge a Non-discrimination requirement based on Title VII of the Civil Rights Act
of 1964. Title VII generally prohibits U.S. employers from discriminating in employment
practices on the basis of race, color, religion, sex, or national origin. Section 702 of the Act
provides that this shall not apply to a religious corporation, association, educational
institution, or society with respect to the employment of individuals of a particular religion
to perform work connected with its activities. The statute provides that religious entities
such as World Vision, are permitted to make religious considerations a factor in their
employment practices.
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SECTION 4: WHY DOES THE U.S. GOVERNMENT REQUIRE PRIVATE
MATCHING FUNDS FROM WORLD VISION, INC. (WVUS)?
In some grants, such as child survival and development grants, the United States
Government requires that the PVO provide a certain level of private matching funds in
support of the proposed project. This increases the resources that are available for
humanitarian activities, and ensures that organizations balance their reliance on U.S.
Government funding with the development of a private constituency for support of their
programs.
Well, you have finished Chapter Four. You may turn the page,
but this time there isn't a quiz. However, take a moment here to write down
any further questions which you may have regarding World Vision's accessing
of resources from the United States Government.
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CHAPTER FIVE
THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
(USAID)
SECTION 1: WHAT IS USAID?
As previously discussed, the U.S. Agency for International Development (USAID) is an

independent agency that provides economic, development and humanitarian assistance
around the world in support of the foreign policy goals of the United States. It is tasked
with implementing the foreign assistance programs of the United States Government.
USAID primarily provides country-to-country foreign assistance (that is, funding which is
passed from the United States Government to a foreign government). However, USAID
also recognizes the effectiveness of providing grants to private voluntary organizations
(PVO's) because of their cost-effectiveness in implementing humanitarian programs.
SECTION 2: THE TWO MAIN DIVISIONS OF USAID
There are two main branches of the Agency for International Development. These two
branches are separate sources of funding and have authority to obligate the money
specifically allocated to them by U.S. congressional foreign aid appropriations.
USAID/Washington. The central office in Washington, D.C. is generally

designated as USAID/W. USAID/W grants are often (but not solely) large-scale
emergency relief and development grants and multi-country health and development
grants.
USAID Missions. The in-country missions of USAID (often referred to simply as

"Missions"). With the exception of a few USAID Missions, these grants are limited
to funding relief and development projects within the country or Region in which
the USAID Mission is located.
SECTION 3: USAID/WASHINGTON OFFICES AND BUREAUS
"Central Funding" from USAID/W. USAID/W provides what are termed centrally-
funded grants. These funds are available through the Functional Bureaus (conduct agency
programs that are world-wide in nature or that cross geographic boundries). These funds
are available through several different offices and Functional Bureaus of USAID/W, the
most important of which are mentioned below.
Bureau ofor Democracy, Conflict and Humanitarian Assistance (DCHA). DCHA

supports USAID’s response to humanitarian and political crises by providing technical
leadership and expertise in coordinating USAID’s democracy programs, international
disaster assistance, emergency and development food aid, and aid to prevent conflict. The
Office of Conflict Management and Mitigation within DCHA, supports major initiatives to
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address the issues of development of fragile and failing states and new and difficult areas of
foreign assistance. The most frequently accessed offices under the Bureau for Democracy,
Conflict and Humanitarian Assistance (formerly called the Bureau for Humanitarian
Response) for World Vision, Inc. are:
Office of Foreign Disaster Assistance (OFDA). OFDA is USAID/W's main office

for short and long-term disaster situations and provides humanitarian relief,
rehabilitation, and reconstruction assistance to foreign disaster victims. Although it
is the main office for emergency disaster relief funding, funds can also be obtained
to reduce the impact of disaster on victims and economic assets in disaster prone
countries. OFDA is the office within USAID responsible for providing non-food
humanitarian assistance in response to international crises and disasters.
USAID/OFDA is increasingly investing in programs designed to prevent, mitigate,
prepare and plan for complex emergencies, which are more the result of human
actions that acts of nature. Due to the emergency relief mandate of OFDA, their
grants usually do not last beyond 12 months and have a single-country focus.
Office of Private and Voluntary Cooperation/American Schools & Hospital

Abroad (PVC/ASHA). PVC/ASHA focuses on providing funds for primary health
care interventions (known as "Child Survival Grants") and also for large, multi-
country grants (known as "Matching Grants") and Education. PVC offers ongoing
grant opportunities to strengthen NGOs, develop business cooperatives and support
the shipment of humanitarian supplies to countries in need. ASHA grants fund
infrastructure, supplies and equipment to support American schools, universities and
hospitals abroad. PVC/ASHA's focus is on development assistance, and its grants
may range from two to five years in duration. PVC/ASHA grants require a
significant amount of World Vision "matching" funds (25% or more of the total cost
of the program) and are usually funded as a "cooperative agreement", whereby
USAID/W retains the right to have "substantial involvement" in the program.
Office of Food for Peace (FFP). FFP provides leadership, coordination, and
operational support for food activities. It focuses on providing food commodities
and commodity transport grants. These grants often support the work of other
USAID/W relief and development grants by supplying commodities for food-for-
work and feeding programs and freight reimbursement for transporting commodities
to the project site. FFP also provides some funding for administration of in-country
food commodity programs through its Section 202(e) mandate. Please note that
most proposals to FFP are also coordinated with proposals to OFDA. This is
because FFP's cash funds are strictly limited to covering expenses related to
commodity movement and certain aspects of commodity administration. OFDA
cash funds often pick up relief program costs which cannot be covered by FFP
funding. Also, FFP coordinates the Institutional Support Grants (ISG) which assist
grantees in developing capacity to manage food commodities and food security.
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Office of Transition Initiatives (OTI). OTI is the office within USAID
responsible for providing assistance to countries that are in a stage of transition from
crisis to recovery. It provides for the rapid start-up of programs to assist in
demobilization and reintegration of dislocated populations; political institution
building; advising of services available from both U.S. and international
organizations; and developing plans and support for reconstruction activities. OTI
takes over about the time OFDA funding ends by providing transitional funding
such as in Sierra Leone where WV provided an Emergency Seeds & Tools
Distributions program funded by OFDA and also obtained a Transition to Peace
Grant from OTI to continue efforts in Sierra Leone. USAID’s Transition Initiatives
are short-term typically, two to three years in duration. Those implementing,
therefore, work closely with Missions and other donors to identify programs that
compliment other assistance efforts and lay a foundation for longer-term
development.
The Geographic Bureaus of USAID/W. In addition to the above offices, USAID/W has a
system of Geographic Bureaus which are responsible for overall activities in the countries
where USAID has program. The Geographic Bureaus plan, formulate, implement, manage,
and evaluate US economic assistance programs within specific regions of the world. They
focus on providing funding for programs in these four specific regions and include: the
Bureau for Africa; the Bureau for Asia and the Near East; the Bureau for Europe and
Eurasia; and the Bureau for Latin America and the Caribbean. Each of these bureaus have
country program desk officers who coordinate USAID/Mission work within each country.
Funding for both relief and development projects is available through the Geographic
Bureau.
The Functional Bureaus of USAID. The reorganization of USAID has established

Functional Bureaus with three pillars. The Bureau for Global Health (inclusive of Health,
HIV/AIDS, Infectious Disease, Maternal & Child Health, Population & ASHA); the Bureau
for Economic Growth, Agriculture and Trade; and the Bureau for Democracy, Conflict, and
Humanitarian Assistance, which eliminated the Global and BHR Bureaus. The pillar
bureaus are intended to help USAID focus on its priorities. They will provide leadership
and innovation in their respective fields and activities funded by the pillar bureaus will
continue to have as their prime objective the maximizing of program dollars available to
field mission programs
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SECTION 4: THE USAID MISSIONS
What are the USAID Missions? USAID Missions obligate funding for both
relief/rehabilitation and development purposes. Many countries throughout the world have
in-country USAID Missions. These Missions are staffed mainly by Cognizant Technical
Officers who deal specifically with reviewing the programmatic aspects of proposals and
assisting in grant implementation. Often, each cognizant technical officer works with a
specific type of intervention (e.g., agriculture, health, water). The USAID Cognizant
Technical Officer is, in most cases, the first USAID officer to contact if there is a proposal
or idea for which the WV National Office would like to obtain USAID funds.
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The Importance of Knowing USAID Mission Goals and Strategies. Getting to know the
USAID Mission, its strategy and technical officers, are key steps in obtaining USAID
Mission funding. It is important to arrange an initial meeting with one or two of the
Cognizant Technical Officers to explain about World Vision and to ask about the USAID
Mission's strategy for the country. Obtaining a copy of the USAID Mission's annual
Country Development Strategy Statement (CDSS), which explains how the Mission expects
funding to be allocated throughout the year and details the foreign assistance goals of the
USAID Mission, is also very important. Additionally, the Transnational Issues of
HIV/AIDS, global climate changes, and trafficking in illicit drugs and people, are
demanding a more global and coordinated response. The USAID Mission's current CDSS
should always be consulted before either USAID Mission or USAID/W funding
proposals are submitted. World Vision, Inc. (WVUS) will help to facilitate introductions
and visits to your local Mission. Contact World Vision, Inc. (WVUS)’s Public Policy and
Advocacy Group, or your World Vision, Inc. (WVUS) program officer for more
information.
There is nothing which can substitute for regular face-to-face contact with the USAID
Mission staff. After the initial visit, periodic visits to Cognizant Technical Officers at the
USAID Mission becomes a critical part of maintaining and building the World
Vision/USAID relationship. These visits can be used not only for building key
relationships, but also to find out if the Mission is currently soliciting for specific types of
proposals and to ascertain what portions of USAID's strategy overlap with World Vision's
program needs and priorities.
SECTION 5: WHERE DOES USAID GET ITS FUNDING?
The Congressional Appropriations Process. Both USAID/W and the USAID Missions
receive funding on an annual basis from appropriations made by the U.S. Congress.
Congressional appropriations are the result of the following political process:
The USAID Congressional Budget Justification (formerly USAID Congressional

Presentation). Budget Justification provides statistical information on the foreign
assistance programs and activities implemented by USAID.
The Congressional Foreign Affairs Committees. Foreign aid funding is

negotiated in the foreign affairs committees of the U.S. Congress (i.e., the U.S.
House of Representatives Committee on Foreign Affairs, the U.S. Senate
Committee on Foreign Relations, and their respective subcommittees and task
forces). This is the most important stage of U.S. Government foreign aid policy
formation.
World Vision, Inc. (WVUS)’s Public Policy and Advocacy Group seeks to keep
World Vision, Inc. (WVUS) program staff, and as appropriate the WV Partnership,
aware of what is happening in these committees on a regular basis.
tman01 July, 2004
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Congressional Appropriations. The recommendations of the respective
congressional foreign affairs committees are eventually introduced in both the
House and Senate for debate and vote. There will usually be a reconciliation
process between the House and Senate versions of an appropriation bill before a
final appropriations bill is approved by both the U.S. House of Representatives, and
the Senate. The foreign aid budget is then incorporated into an annual congressional
appropriation for foreign aid. Once approved by Congress and the U.S. President,
funding is allocated in accordance with this budget to the various Bureaus of
USAID/W and the USAID Missions.
Supplemental Congressional Appropriations. From time to time,

recommendations for further congressional appropriations for various countries or
programs are submitted to Congress and approved, usually as a result of a major
crisis such as the 1984 Africa drought and 1998 Hurricane Mitch in Central
America.
How is this Money Allocated? Both USAID/W and the USAID Missions receive their
funding from the congressional appropriations. However, it is important to note that, once
the congressional appropriation has been distributed, they are essentially totally separate
funding sources: the amounts available through the USAID Missions are determined
separately from USAID/W's funding.
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SECTION 6: WHAT TYPES OF PROGRAM DOES USAID FUND?
Guiding Principles. USAID funding strategies are directed at addressing key geo-political
and environmental challenges. USAID prefers to fund programs that incorporate
sustainability, participatory partnerships, and the use of integrated approaches to promoting
development.
Sustainability. The sustainability of a program is measured not only in terms of its

promotion of indigenous institutions and of the empowerment of its beneficiaries,
but also by its ability to accomplish these economic and social objectives while
safeguarding the natural, economic and cultural environment.
Partnership. The degree of partnership in a program is judged not only by the

number of formal institutional linkages between the United States Government, the
host country, multilateral organizations, international NGO's and indigenous NGO's,
but also on the ability to facilitate and empower indigenous control of a given
program.
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Integrated Approaches. USAID is looking for integrated approaches and methods
which:
* Are part of a country strategy;

* Have been developed in close cooperation with host governments and local
communities; and
* Take into account and help to minimize the social, economic, political, and
cultural factors impeding development.
Types Of Programs Funded. USAID funds a broad range of programs which can be
grouped generally into the following categories:
HIV/AIDS. PEPFAR – The 5 year plan focused on achieving the goals of treating
at least 2 million HIV-infected persons with anti-retroviral therapy, caring for 10
million persons infected with, or affected by HIV, including orphans and vulnerable
children, and preventing 17 million new infections in 14 countries (Botswana, Cote
d’Ivoire, Ethiopia, Guyana, Haiti, Kenya, Mozambique, Namibia, Nigeria, Rwanda,
South Africa, Tanzania, Uganda and Zambia.
Emergency Humanitarian Assistance. USAID provides emergency relief

assistance, technical expertise, and food assistance. Emphasis is placed not only on
the rapid and coordinated provision of emergency food commodities to disaster
areas, but also on disaster preparedness and prevention and on reestablishing a
degree of food security in the affected areas through distribution of tools, seeds, and
other agricultural supplies. Attention is also given to reinforcing and rebuilding
indigenous institutions affected by disaster, thus helping to mitigate social disorder
and civil conflict.
Population and Health. USAID is concerned with stabilizing worldwide

population growth, significantly reducing maternal and child mortality rates, and
decreasing the rate of new HIV infections. Emphasis is placed on family planning
and birth spacing; reproductive health care, including the prevention and control of
sexually-transmitted diseases such as HIV/AIDS; improved nutrition, immunization
against childhood diseases, and diarrheal and respiratory disease control in infants
and children; and basic literacy for adolescents and young women.
Broad-Based Economic Growth. Broad-based economic growth strategies include

strengthening markets; expanding access and opportunity to the less-advantaged in
developing countries by helping to promote microenterprise and small businesses,
promoting primary, secondary, technical and vocational education, especially for
women. Emphasis is placed on the wide-spread participation by beneficiaries;
support for microentrepreneurs; small business owners; the establishment of
cooperatives; and assisting in technology transference and basic education.
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Environment. USAID's environmental strategy focuses on reducing long-term
threats to the global environment (particularly loss of biodiversity and climate
change) while promoting sustainable economic growth. Emphasis is placed on
improving agricultural, industrial and natural resource management practices that
play a central role in environmental degradation; strengthening public policies and
institutions to protect the environment; and promoting environmental research and
education.
Democracy. Democracy initiatives cover a wide variety of issues, from human

rights of women, indigenous peoples and minorities, to counteracting
misperceptions about democracy and free-market capitalism. Some of USAID's
emphasis include support for trade unions, professional associations, women's
groups, educational entities, and indigenous NGOs and educational efforts for
children and adults that reflect community participation, promote development of
local NGOs, and encourage tolerance within society.
SECTION 7: WHICH USAID OFFICES FUND MY TYPE OF PROJECT?
Funding for programs which address the above issues can be accessed through both
USAID/W and the USAID Missions.
OVERVIEW OF USAID PROGRAMS
TYPE OF PROGRAM FUNDING SOURCE

Relief * USAID/W Geographic Bureau (country/region-specific)
Rehabilitation * USAID Mission (country-specific)
Disaster Preparedness * Office of Foreign Disaster Assistance
Primary Health Care * USAID/W Geographic Bureau (country/region-specific)
Child Survival * USAID Mission (country-specific)
HIV/AIDS Education * Office of Private and Voluntary Cooperation
* USAID Functional Bureau
Natural Resource Development * USAID/W Geographic Bureau (country/region-specific)
Water Development * USAID Mission (country-specific)
Microenterprise Development * Office of Private and Voluntary Cooperation
Institutional Strengthening * USAID Functional Bureau
Emergency Food Aid * USAID Mission (country-specific)
Regular Food Aid * Office of Food for Peace
Food-for-Work
Monetization
* USDA
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Inland and Ocean Transport of * Inland - USAID Mission (country-specific)
Government Food Commodities; * Overseas - Office of Food for Peace (FFP)
Administrative and Management Costs
for Movement of Government Food
Commodities [Section 202(e)];
Inland and Ocean Transport of Private
Gifts-in-Kind.
You have read Chapter Five. Turn the page

and see how much you know
about USAID/W and the USAID Missions?
tman01 July, 2004
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EXERCISE 5
OVERVIEW OF
THE U.S. AGENCY FOR INTERNATIONAL DEVEOPMENT (USAID)
Directions: Fill in the blanks below with the correct answer.
PART I. USAID and its Foreign Assistance Strategy
1. USAID has two main funding sources which provide both cash and commodity resources to
Private Voluntary Organizations such as World Vision, Inc. (WVUS). “Central funding”
comes from _________________________ while “local funding” is obtained from
_____________________________.
2. USAID Missions are staffed primarily with _________________ _____________ officers

who deal specifically with _______________________________________________.
3. The foreign assistance goals of USAID Missions are provided in documents called
__________________________________________.
4. The three guiding principles of USAID program funding are: _______________________

__________________________________________________________________________
5. USAID/W and the USAID Missions are funded separate (that is, they have their own budgets).
However, both of them get their funding from ___________________________ through
__________________________________.
6. The five key program categories of USAID’s foreign aid strategy are:
PART II. “Real Life” Senarios
7. You want grant funding for a microenterprise project in Haiti. What USAID funding source(s)
would you contact?
_________________________________________________________________________
_________________________________________________________________________
8. You want grant funding to pay for overseas freight so that you can move 4000 metric tons of
winter wheat to a project site in Eritrea. What USAID funding source(s) would you contact?
_________________________________________________________________________
_________________________________________________________________________
tman01 July, 2004
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EXERCISE 5 (CONT.)
Part II. “Real Life” Scenarios (cont.)
9. There's just been a massive flood in Bangladesh. You need US$350,000 to cover the cost of
buying and transporting relief supplies. What USAID funding source(s) would you contact?
10. You would like to monetize some United States Government food commodities and use the cash
from the sale for World Vision programs in Mali. What USAID funding source(s) would you
contact?
11. You are moving 7000 MT of United States Government food commodities to various sites in
Mozambique. You already have funding for overseas and inland freight costs, but who is going
to pay for the personnel to administer the movement of the commodities? What USAID
funding source(s) would you contact?
12. You are interested in pursuing an HIV/AIDS education program alongside your current USAID
grant-funded Child Survival program in Cambodia. What USAID funding source(s) would you
contact?
13. You want to obtain 7500 MT United States Government relief food commodities for a free
distribution and food-for-work program in Sudan. What USAID funding source(s) would you
contact? (Remember, you will need more than just the commodities to run the program
effectively.)
EXERCISE 5 (CONT.)
tman01 July, 2004
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PART II. “Real Life” Scenarios (Cont.)
14. List six funding offices of USAID/W mentioned in this chapter.
1) _____________________________________________________________
2) _____________________________________________________________
3) _____________________________________________________________
4) _____________________________________________________________
5) _____________________________________________________________
6) ______________________________________________________________
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CHAPTER SIX
THE USAID SYSTEM
The USAID system is complex. However, World Vision's day-to-day interaction with
USAID/W and the USAID Missions is much more straightforward.
SECTION 1: WHO SHOULD I CONTACT IN USAID? Both USAID/W and the

USAID Missions have two officers for each grant.
Cognizant Technical Officers (CTOs). The Cognizant Technical Officers (also known
as desk officers and formerly known as Program Officers), are the individuals designated by
the Agreement Officer to administer certain aspects of assistance instruments. The CTO is
responsible for ensuring that USAID exercises prudent management over specific assistance
awards for which they are designated CTO. CTOs focus on the programmatic aspects of
the grant (i.e., the basic program design and how well World Vision is carrying out the
program objectives). CTOs read, evaluate, and suggest funding for proposals. They
prepare Project Implementation Order/Technical Forms, or PIO/T's (summary sheets of the
proposed project) from which the USAID/W or USAID Mission Agreement Officer draws
up the grant documents. CTOs review all performance and financial reports for adequacy
and responsiveness. They maintain close contact with the Agreement Officer and keep
current with recipient performance. CTOs also receive and evaluate quarterly and annual
reports. Because of their programmatic orientation, CTOs are the individuals who should
be contacted first for any change in the programmatic aspects of the grant, and particularly
if a grant amendment is being requested. For a complete listing of responsibilities of the
CTO, see USAID/ADS 303.3.
USAID/W Cognizant Technical Officers are found in PVC, FFP, OFDA, and the USAID
Geographic Bureaus. USAID Mission Cognizant Technical Officers are usually located at
the USAID Mission in-country. However, when the United States does not have formal
diplomatic relations with a country, USAID Mission Cognizant Technical Officers for that
country may be located in a neighboring country.
Agreement Officers (AOs). Agreement Officers (formerly known as Contract Officers or

Grant Officers) deal almost exclusively with the legal and financial aspects of grants.
Agreement Officers prepare the actual grant documents from the cognizant technical
officers' PIO/Ts. They negotiate legal and budgetary issues and approval of special
provisions and waivers of USAID regulations. They provide advice on how USAID
regulations apply to each grant, particularly those which apply to procurement of goods and
services. They also give the final word on whether funding will be obligated or not. It is
important to note, however, that they will do none of the above unless they have first
received the concurrence of the USAID Cognizant Technical Officer. Agreement Officers
sign on behalf of USAID under a duly authorized warrant. The AO bears the legal
responsibility for the award and therefore, only the AO can take action to enter into, change
tman01 July, 2004
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or terminate the award on behalf of USAID. The Agreement Officer is responsible for
ensuring that USAID exercises prudent management over assistance funds.
USAID/W Agreement Officers are located in the Office of Procurement, Bureau for
Management (AID/M/OP). USAID Mission Agreement Officers are based in geographic
contract offices.
SECTION 2: USAID's FISCAL YEAR
USAID follows an October-through-September fiscal year cycle, in accordance with the rest
of the United States Government
In working with USAID, it is particularly important to remember that both cognizant

technical and agreement officers are exceptionally busy in the period July-September as
they attempt to obligate all the United States Government funding. If at all possible,
requests for further funding, extensions of grants, or other items requiring grant
amendment should not be requested during this period.
SECTION 3: IMPORTANT ISSUES FROM USAID's PERSPECTIVE
Several things should be kept in mind regarding USAID's perspective on grant funding.
Accountability USAID is very concerned about how funds are used, and is therefore very
concerned about how both cash and commodities are tracked.
Timeliness Timeliness in reporting is very important.
"Buy America" USAID's mandate includes strengthening the U.S. economy through their foreign
Procurement aid programs. USAID requires grantees to use as many U.S. products and services
as possible.
Anti-Terrorist USAID requires all organizations applying for US Government assistance to
Certification verify/certify that they are aware of their obligations under US Anti-terrorism laws
and are acting prudently to comply with those laws. (See AAPD 04-07, issued
March 24, 2004)
Relevance to It is important to be familiar with USAID's objectives in-country when writing
USAID Strategy proposals for funding. USAID has individual country strategies which are written
down on an annual basis in a Country Development Strategy Statement (CDSS) and
are available through USAID/W and the USAID Mission. In addition, all proposals
must be approved by the local USAID Mission before obligation of funding in
order to make sure that the program(s) fits the USAID Mission's strategy.
Contacting USAID Missions about proposed programs prior to proposal submission
is critical.
SECTION 4: IMPORTANT ISSUES FROM WORLD VISION, INC. (WVUS)’s

PERSPECTIVE
tman01 July, 2004
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World Vision, Inc. (WVUS) always needs to address the following areas when planning any
USAID funded project.
IMPORTANT ISSUES FROM WORLD VISION, INC. (WVUS)’s PERSPECTIVE
Matching Prior to any commitments being made, it is important that WV National Offices
Requirements and World Vision, Inc. (WVUS) discuss the level of match requirements in order to
make sure WVUS can raise the match requirement. Standard "matches" for
specific types of USAID programs follow the basic pattern outlined below:
Relief Grants - None required
Health Grants - 25-50 percent of total budget
Development Grants - 25-50 percent of total budget
Transport Grants - None required
Commodity Grants - None required
Monetization Grants - None required
Both cash and gifts-in-kind can be used as match in most grants. World Vision,
Inc. (WVUS) and National Offices must work closely to coordinate all possible
sources of match, including sponsorship, special funding, and funding from other
support offices.
Indirect Cost World Vision, Inc. (WVUS) receives reimbursement from the United States
Recovery Government for costs which World Vision, Inc. (WVUS) and the World Vision
Partnership Office incur in procuring and administering grants. World Vision, Inc.
(WVUS) provides significant support in procuring and administering grants. This
work includes writing proposals; providing technical assistance; assisting in the
preparation of financial and narrative reports; pipeline analyses and grant
amendments; providing training in grant compliance; registering annually with
USAID; and liaison with USAID officers in Washington, D.C. and at the local
Mission level. In most cases these tasks are necessary whether a grant is funded
through a USAID Mission or from USAID/W. Indirect cost recovery pays for the
expense of providing these services. Thus, it is essential that the indirect cost rate
is built in the proposed grant budget.
Procurement Compliance with USAID procurement regulations is very important. Non-
Regulations compliance could result in costs being judged unallowable by auditors. Please
note that WV must reimburse the United States Government for all costs that
are deemed unallowable by USAID.
Financial and Reporting is the means by which all are informed of program progress and current
Narrative financial and programmatic issues. Accurate and timely reporting is crucial to
Reporting program success and a very important part of grant compliance.
Technical Most development, health, and relief projects require substantial technical expertise
Backstopping to implement. The entire process of obtaining and administering an award -- from
the concept stage through end of grant stage – often necessitates one or more visits
to the implementing WV National Office.
Audits It is imperative that United States Government awards are handled and managed in
a manner which will assure a good audit of the program(s). If World Vision
receives poor audit results, it must reimburse the U.S. Government for all costs
tman01 July, 2004
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deemed "unallowable" under the grant and its reputation for financial
accountability will be damaged.
Now that you have read this chapter, turn the page
about the USAID system?
tman01 July, 2004
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EXERCISE SIX
THE USAID SYSTEM
Directions: Answer the following questions in the blanks provided.
1. USAID has two officers for each grant: officers and ______________
officers.
2. You've just been hired as an USAID Cognizant Technical Officer. A WV National

Office staff person visits you and wants to know what you do all day. List for him/her at
least three of the activities you perform.
3. You are a USAID Agreement Officer at USAID/Kenya. You receive a call from a
WV/Kenya staff person. He/she wants you to change some of the programmatic
objectives in the grant documents of one of WV/Kenya's current USAID funded grants.
Explain to him/her why you can't do this.
4. You are a USAID Cognizant Technical Officer at the USAID/W Office of Food for
Peace. A World Vision, Inc. (WVUS) staff person calls you about negotiating a waiver
so that World Vision can include private gifts-in-kind as part of its private "match" under
the grant. Can you help this person? Or should they be directed elsewhere? If so,
where?
tman01 July, 2004
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EXERCISE 6 (CONT.)
5. List five issues mentioned in this Chapter which are particularly important from World
Vision, Inc. (WVUS)’s perspective.
1)
2)
3)
4)
5)
Choose one of the above issues and explain why it is a particularly critical issue from
World Vision, Inc. (WVUS)’s perspective.
tman01 July, 2004
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CHAPTER SEVEN
THE LIFE CYCLE OF
A USAID GRANT OR COOPERATIVE AGREEMENT
SECTION 1. THE "NORMAL" LIFE OF A USAID GRANT.
All USAID grants have specific and unique requirements, nonetheless there is a more or
less standard sequence of events for the "normal" life of a USAID grant. This "normal" life
of a grant is outlined below.
SECTION 2. THE PRE-PROPOSAL STAGE
This is an information-gathering stage. World Vision, Inc. (WVUS) Program Officers

and Technical Officers work with the WV National Office to identify possible programs to
be funded by a grant. This may include doing initial surveys of target populations or
gathering other data necessary for writing a well-designed proposal. Also a determination
of the availability of both matching funds (if required) and available technical resources
needed to implement the program must be addressed. Occasionally, the Pre-Proposal
Process will also include the submission of a concept paper to the proposed donor.
SECTION 3. THE PROPOSAL STAGE
This is a writing stage. If World Vision, Inc. (WVUS), the WV National Office, and the
Regional Office decide that they want to proceed with the proposal, the program and
financial staff in the WV National Office and in World Vision, Inc. (WVUS) begin
preparation of the actual proposal. The combined efforts of all of these staff are very
important. WV National Office input in particular is essential. WV National Offices have
the best understanding of the program which they want to implement and know well the
specific country context in which the work will be done. Their role is also necessary in the
development of a proposal budget. On the other hand, World Vision, Inc. (WVUS) staff
have experience with the requirements and expectations of USAID for proposal narratives
and budget formats, as well as the various USAID regulations which can significantly
impact the program. World Vision, Inc. (WVUS) staff can also provide technical expertise
in needs assessment and rural appraisal which will ultimately strengthen both the design and
the implementation of the proposed program.
World Vision, Inc. (WVUS) staff can also provide oversight to ensure that the application
includes ALL required components; that these components meet the agencies specifications;
that all required prior approvals and waivers are sought and obtained; all measures required
for compliance with statutes and regulations are implemented; and that deadlines for
submissions, intergovernmental review, and other requirements are met including that
World Vision, Inc. (WVUS) current NICRA has been included.
tman01 July, 2004
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IMPORTANT QUESTIONS TO ASK
BEFORE THE PROPOSAL IS SUBMITTED
(Note: This list is provided as a guide to the Pre-Proposal Process. The questions listed below are not necessarily
in any order of importance, nor are they the only issues which should be addressed during the Pre-Proposal
period.)
1) Does the donor agency have money available? An RFP/RFA (Request for Proposal/Application) from
USAID may have identified a specific need that USAID wants to address and fund.
2) How much funding is available from the donor? There may be some funding available, but is it
sufficient to cover the extent of program activities that need to be accomplished?
3) What are the objectives of the program and can World Vision accomplish them? In issuing a Request for
Application (RFA), USAID includes the general program guidelines which specify the program goals
that they want to fund. Does World Vision have the expertise to accomplish the goals? Can we find the
expertise required in time to begin implementation should the award be forthcoming?
4) Is there a match required, if so, does the partnership have sufficient private funds to cover it? A match is
additional private funding that World Vision raises to be applied against the program in addition to the
grant donor funding.
5) What is the time period of the grant? Can World Vision accomplish the objectives within the time period
specified? In assessing this question, particular attention should be paid to how unforeseen
circumstances (such as finding qualified staff or political instability in the host country) might hinder
achieving proposed program objectives.
6) Does World Vision already have a WV National Office in the country or is this the first program in this
country? This factor will greatly influence the time and financial resources it will take to set up and
implement the proposed program.
7) Does World Vision already have WV National Office staff with experience in U.S Government grant
management in the country or will staff training be required for implementation? WV Regional Offices
can also offer and provide support for the staff training.
8) What is the United States' relationship with this country? This is important to consider since this affects
the willingness of USAID to provide funding.
9) Does this program fall both within our country/regional strategy and USAID's country strategy, or is it
taking us into a new area? Is this a new strategy we want to pursue, knowing that we may be taking
away staff and financial resources which otherwise might be dedicated to providing better quality work
in existing programs and intervention strategies?
What Should a Proposal Look Like? A proposal has at least three basic parts: the
program narrative (sometimes referred to as the technical proposal) the budget narrative,
and the budget dollars, submitted in the required SF424 format, (sometimes referred to as
the cost proposal). Please note that the purpose of the budget narrative is to supply
additional information to support the detailed budget dollars.
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Cash Grant Proposals. Cash grants require a well-designed and detailed proposal
according to the guidelines established by the donor for the type of program to be
funded (eg. Child Survival Proposal Guidelines from USAID). Proposal
submissions for some USAID/W programs are done on an annual basis while others
(usually relief proposals) are submitted as the need arises.
Commodity Grant Proposals. Most development commodity proposals are

submitted to USAID/W's Office of Food for Peace (FFP). Commodity grants --
particularly for monetization -- can also be supported through the USAID Missions.
Missions provide cash grants or development assistance awards to the FFP
commodity awards. Development Activity Proposals (DAPs) along with Annual
Estimate of Requirements (AERs) forms are the standard "proposal" format for
commodity proposals to FFP and the USAID Missions. DAPs for development
commodity programs are usually submitted to FFP in April of the preceding year,
however, proposals for emergency (Emergency Operational Plan {EOPs}) or
transitional relief commodities proposals (Transitional Activity Proposal {TAPs})
may be submitted at any time. Occasionally, World Vision, Inc. (WVUS) requests
emergency relief commodities from other donors such as the U.S. Department of
Agriculture (USDA), which have their own guidelines and commodity proposal
timetable.
Critical Factors For Proposals. A few notes need to be made regarding World Vision,
Inc. (WVUS)’s collaboration with the WV National Offices in proposal writing and
submission to USAID.
PROPOSALS: THOSE CRITICAL FACTORS
Proposals Should Reflect WV National Office Needs and Input. World Vision, Inc. (WVUS) works closely with
WV National offices to ensure that proposed grants would meet the strategic and programmatic needs of the WV
National Office.
Proposals Should Have Verbal USAID Mission Approval for the Project Prior to Submission to USAID/W and
Should Reflect Knowledge of USAID Goals and Priorities. This is crucial, since USAID/W seeks to respond to
Mission-identified needs in country.
Proposals Should Include Accurate and Adequate Programmatic and Financial Data. Budgets should include
line item breakdowns for each item, as well as backup documentation justifying how the line item budgets are
derived. This backup documentation is not sent in with the proposal, but kept on file should questions arise that
need to be addressed with USAID. Budget narratives are submitted which explain line items in greater detail. All
USAID (or U.S. Government funded) proposals should also include WVUS NICRA.
Proposals Should Be Competitive in Their Design, Implementation, and Cost-Effectiveness. It is important to

remember that many NGOs are competing for grants. Consequently, our ability to continue to access funding is
dependent upon WV's ability to carry out projects which are innovative, well-designed, well-implemented, and
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cost-effective.
Adequate Time Should Be Made for Preparing The Proposal. Large-scale development proposals are often
submitted at specific deadlines. World Vision, Inc. (WVUS) should schedule work accordingly so that adequate
time is available for WV National Office input on project design to prepare a thorough and well-designed
proposal.
A Copy of All Proposals Must Be Sent to, and Reviewed by, the Appropriate World Vision, Inc. (WVUS)
International Program, Finance and Contract Officer. The World Vision, Inc. (WVUS) Program Officers,
Finance Officers and Contract Officers are responsible for tracking all proposals, grants, and cooperative
agreements for World Vision, Inc. (WVUS).
SECTION 4. THE PROPOSAL SUBMISSION AND NEGOTIATION STAGE
Proposal Submission Stage. After submission, the donor may contact World Vision in the
form of an Issues Letter for additional information to answer questions which they might
have about the proposed program. It is during this time that World Vision may be asked to
reduce or delete from, or to add to, certain items in the budget or technical scope of work
prior to donor approval. At this point, World Vision needs to respond to any concerns and
provide the requested information. As with the proposal submission, the Issues Letter and
response must be reviewed by the appropriate WVUS International Program, Finance and
Contract Officer. It is important to convince the donor of the necessity and accuracy of all
proposal components. For this reason, it is very important that the technical scope of
work/program objectives and the budget accurately reflect one another.
SECTION 5. THE AWARD STAGE
USAID Offices may vary greatly on the amount of time they take between receipt of World
Vision, Inc. (WVUS)’s proposal and obligation of grant funding. Sometimes awards are
obligated within a few days; at other times they may take several months.
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Type of Legal Instrument Used. The type of legal instrument used depends on the type of
award. USAID provides financial assistance to PVOs through grants and cooperative
agreements. The purpose of the financial award is to assist the PVO in implementing
specific, written programmatic objectives which have been agreed upon beforehand by the
donor and grantee. The funding authorized for use by a grant or cooperative agreement
must be used only to accomplish the goals stated in the grant documents. In general, the
following types of legal instruments are used by USAID/W and the USAID Missions:
CASH GRANTS Cash Grant, Relief

Cash Grant or Cooperative Agreement, Health
Cash Grant or Cooperative Agreement, Development
Cash Grant, Section 202(e), Commodity Management –
Transfer Authorization
Cash Grant, PL480 Title II Ocean Transport - Procurement
Authorization
Cash Grant, PL480 Title II Inland Transport –
Procurement/Transfer Authorization
Cash Grant, Private Freight –
Procurement/Transfer authorization, private freight (PAPF)
Local Currency Grant - letter obligation
COMMODITY GRANTS Commodity Grant, PL480 Title II – Transfer Authorization,
signed Annual Estimate of Requirements and approved
Development Activity Proposal
Commodity Grant, Section 416(b) (CCC/FAS/USDA) –
Program Agreement and Plan of Operation.
Monetization Grant – Transfer Authorization, signed Annual
Estimate of Requirements and approved Development Activity
Proposal
Grant Processing. In the award stage, the respective World Vision, Inc. (WVUS) Program
Officer(s) along with World Vision, Inc. (WVUS) Finance and Contract Officer(s) review
the proposed grant documents to make sure that the programmatic, financial, and legal
aspects of the grant documents are in accordance with the proposal. This is particularly
important because the signed grant documents will be the legally-binding understanding
of the proposed program. If there are objectionable provisions, World Vision, Inc.
(WVUS) legal Contract Officer negotiates with the donor to remove or modify these
provisions. Finally, the World Vision, Inc. (WVUS) legal department Contract Officer
coordinates the signature process and obtains the appropriate WV signatory to sign the grant
documents, thus binding WVUS to the terms and conditions. Copies are returned to the
donor and provided to the IPG RPT administrative staff for distribution to all WVUS, WVI
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and WV National Office staff, as appropriate. IPG RPT administrative staff should furnish
a grant management packet to all involved in the grant administration, management, and
implementation of the specific award.
Please note that World Vision, Inc. (WVUS) is the only registered signatory on all U.S.
government and USAID grant agreements for the entire partnership, whether
centrally accessed in Washington D.C. or in the local USAID Mission. As such, World
Vision, Inc. (WVUS) has the authority to obligate World Vision to the performance of
a grant. In cases where grants must be signed by WV National Office due to USAID
deadlines, World Vision, Inc. (WVUS) may choose to authorize WV National Office
Director to sign on its behalf through a Letter of Agency or Authorization. These cases are
reviewed on an individual basis and authority issued prior to signature. World Vision, Inc.
(WVUS) Legal Department Contract Officer can provide these upon review of the award
document. For more guidance on the signatory process please review the World Vision
International Finance Manual, Section #GRT 05B.
SECTION 6. THE PROGRAM IMPLEMENTATION STAGE
This is the implementing stage of the program. However, it may also include further design
work, particularly in development programs. Generally, relief programs are in the
implementation stage from approximately three months to one year. Health/development
programs last longer, usually two to five years.
Further Design. Further design work is often done after the grant is awarded, including
submission of Detailed Implementation Plans (DIPS). In health grants, DIPs often include
health surveys (eg., KAP surveys) as well as additional program design and adjustments to
the budget. In development grants, DIPs may include environmental survey information as
well as further program designs and an adjusted budget. Generally DIPs are due between
60 days to 6 months after award, and will be written into the award document as a
requirement.
Reporting. All cash grants have a standard reporting schedule which is written into the
grant documents. At a minimum, this includes narrative and financial reporting. In
addition, some grants also include commodity/statistical reporting. Commodity grant
reports are primarily statistical, although monetization grants often require narrative and
financial reporting as well. Reporting schedules vary from grant to grant, but usually
following a quarterly time table. World Vision, Inc. (WVUS) requires all reports within 20
days of the due date under most circumstances unless other arrangements have been made
with the appropriate Program Officer.
In addition to this standard reporting, other reporting with specific deadlines may be
required in the grant documents, such as mid-term or final evaluations. Please note that
interim reporting, although not specifically designated in the grant documents, is
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always necessary when there are substantial financial and programmatic changes to
the program.
SECTION 7. GRANT AMENDMENTS
From time to time, changes need to be made to the grant documents to reflect what is
actually going on in the program. Amendments to the grant may be necessary to extend the
grant period, to make changes to the grant budget, or to change programmatic aspects of the
grant program.
A formal Request for Amendment is submitted to USAID. Requests for Amendment

should be made as far in advance of the implementation of changes to the program as
possible, since it takes between one and three months generally to be processed by the
donor. All Requests for Amendment should be coordinated through appropriate World
Vision, Inc. (WVUS) Program, Finance or Contract Officer, and a copy of the actual
request for amendment sent to World Vision, Inc. (WVUS) for audit purposes.
Below are the general guidelines for preparing, submitting, and processing grant
amendments.
WV National Office Input. WV National Office input is always essential to the

preparation of amendments in order to ensure that the amendment meets WV
National Office needs.
Request for Amendment. A formal Request for Amendment is prepared that

explains what should be changed as well as the rationale for these changes.
Requests for Amendment dealing with budgetary changes or legal provisions should
be sent to the appropriate USAID Agreement Officer (eg., the USAID Agreement
Officer in the Office of Procurement) and copied to the respective USAID
Cognizant Technical Officer (e.g. The USAID Cognizant Technical Officer of the
USAID/W bureau or office associated with the grant). Requests for Amendment
which are programmatic in nature should be sent to the respective USAID
Cognizant Technical Officer and copied to the USAID Agreement Officer. All
Requests for Amendment must be copied to the respective World Vision, Inc.
(WVUS) Contract Officer, the respective WVPO Regional program staff (if
applicable), and the WV National Office. A revised budget, and/or a pipeline
analysis (projection of expenditures measuring spending against pre-set budget), is
required for most amendments, even if the request is only for an extension of time.
Receipt and Processing of Amendments. After the final amendment documents

are received by World Vision, Inc. (WVUS), the amendment documents are
reviewed and processed. Like original grants, amendments should receive a pre-
processing review by the respective World Vision, Inc. (WVUS) Finance Officer
(review of budget and indirect cost rate), World Vision, Inc. (WVUS) Program
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Officer (review of programmatic issues), and World Vision, Inc. (WVUS) Contract
Officer (review of legal and contractual provisions). World Vision, Inc. (WVUS)
Legal Department Contract Officer will coordinate the signing process for the
amendment, and all original grant amendment documents but one are returned to
USAID. The remaining original grant amendment document is placed in the World
Vision, Inc. (WVUS) Audit file. The IPG RPT administrative staff sends copies of
the fully executed amendment to all appropriate individuals associated with the
award.
It should be noted that it takes almost as long for USAID to process an

amendment as it does to process grants. Therefore, sufficient time should be
allowed for the amendment process when you plan your project activities.
SECTION 8. THE END-OF-PROJECT STAGE
At the end of the grant, USAID requires that World Vision, Inc. (WVUS) provide several
different types of information for grant closure. These include:
End-of-Project Narrative Report And Pipeline Analysis. An End-of-Project

Report (EOP) is usually due within a set period of time after the end-date of the
grant. For USAID grants, EOPs are usually submitted to USAID within 90 days.
(However, please read the grant documents carefully, since some USAID grants
require EOPs within 30 or 60 days after the end-date of the grant period.) EOPs
should give a substantive overview of the progress made and accomplishment of
objectives under the grant and include a detailed financial pipeline analysis of
USAID and World Vision, Inc. (WVUS) funds spent under the grant. This pipeline
analysis should be prepared according to the line item format of the budget shown in
the grant documents.
Inventories of Equipment and Expendable Supplies. USAID requires that an

inventory of equipment and other tangible goods purchased with USAID funds be
prepared at the end of the grant. "Equipment" includes all tangible items over
US$5,000/each. Even though World Vision is usually given Grantee Title to
property purchased with grant funding, World Vision must request disposition
instructions from USAID for any equipment with a current per unit fair market
value of more than US$5,000. World Vision may be asked to return, transfer to
another PVO, or repay a proportionate amount of the costs to USAID. For supplies
and other expendable equipment purchased with grant funding which have a total
aggregate value exceeding US$5,000, USAID also requires that an inventory of this
residual property be prepared and submitted at the end of the grant.
Inventories must be submitted to USAID within 90 days after the end-date of the
grant. Usually, they are included in the EOP report. Please note that World Vision,
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Inc. (WVUS) has a specific form (FRM 24 - IA-232) for the preparation of these
inventories which can be found in World Vision International Field Finance Manual
at Section #FRM 01-43, Financial Forms. Also note that you should include on this
form which funds were used to purchase assets, (such as WV Match or USAID
funds, which grant award number should be charged, etc.).
Final Financial Report. A final financial report is prepared by World Vision, Inc.
(WVUS) Finance. This means that all financial information must be obtained from
WV National Offices within 60 days after the end date of the grant.
SECTION 9. THE CLOSEOUT STAGE
Under USAID/W and USAID Mission grants, the USAID Closeout Branch initiates the
final Closeout Letter for USAID. World Vision, Inc. (WVUS) Contract Officer responds
with requested information to USAID. This is the final document submitted under the grant
and essentially "ties up all the loose ends" regarding disposition of property, reporting,
publications, patents, etc. with confirmation of compliance retrieved from audit file.
SECTION 10. THE FINAL AUDIT STAGE
Although not part of the formal closeout procedures, all pertinent grant documentation must
be available for external audit within 120 days after the end date of the grant. As mentioned
above, any USAID grant or subgrant are subject to external audit at any time.
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**PLEASE NOTE**
Audits affect our ability to continue accessing funding,
and as such are a critical part of the closeout procedure.
If World Vision, Inc. (WVUS) does not have the necessary documentation in its audit files within
120 days after the end-date of the grant, it is very possible that it will never have all the necessary
documentation. Lack of documentation puts
World Vision, Inc. (WVUS) at a significant financial and legal risk. Audits are particularly
critical. Our ability to continue to access USAID funding
depends on them.
Please be aware of this as you administer grants.
Now that you have read this chapter, turn the page
and try to answer the following questions. How much do you now know about the
about the "normal" life of an USAID grant or cooperative agreement?
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EXERCISE 7
AN OVERVIEW OF THE “NORMAL” LIFE OF A USAID GRANT OR COOPERATIVE

AGREEMENT
PART 1. A “Normal” Life
Directions: List the following in chronological order, using “1” for first stage, “2” for the next
stage, etc.
_____ Final Audit Stage
_____ Grant Amendments
_____ Pre-Proposal Stage
_____ Award Stage
_____ Closeout Stage
_____ Proposal Submission and Negotiation Stage
_____ End-of-Project Stage
_____ Proposal Stage
_____Program Implementation Stage
(See following page to continue this quiz)
EXERCISE 7 (CONT.)
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PART II. What Happens When?
Directions: Match the activity on the right with the stage in which it occurs on the left. Note: There
may be more than one activity for each stage and more than one stage for each activity.
ACTIVITY: STAGE:
1. Request a budget amendment.

2. Prepare a detailed financial pipeline Award Stage
analysis.
3. Work with WV National Office staff to Closeout Stage
design a program.
4. Prepare an Annual Estimate of Final Audit Stage
Requirements (AERs)
5. Route the grant documents for signature. Proposal Submission and Negotiation Stage
6. Provide USAID with quarterly narrative
reporting. Grant Amendments
7. Negotiate waivers to grant provisions.
8. Prepare and submit a fixed asset inventory Pre-Proposal Stage
of all equipment purchased with grant
funds. Program Implementation Stage
9. USAID audits the program.
10. Submit a Closeout Letter. End-of-Project Stage
11. Submit a Detailed Implementation Plan
(DIP). Proposal Stage
12. Provide a summary budget, detailed
budget, and budget narrative.
13. Request an extension to the grant period.
14. Submit a Development Activity Proposal
(DAP)
15. Obtain the Country Development Strategy
Statement (CDSS) from the USAID
Mission.
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CONGRATULATIONS!
YOU HAVE COMPLETED THE FIRST WORKBOOK IN
THE WORLD VISION, INC. (WVUS) SELF-STUDY GRANT MANAGEMENT
TRAINING SERIES
***************
NOW, TURN THE PAGE
AND COMPLETE THE FINAL EXERCISE.
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FINAL EXAM: WORKBOOK 1
Directions: Check the "T" box if the statement is true; check the "F" box if the statement is false.
T F 1. USAID Mission goals and strategies are outlined in the USAID Country Development
Strategy Statements (CDSS) which are prepared periodically by USAID Mission staff.
T F 2. A "multilateral donor" is an international organization which provides resources for

international relief and development programs.
T F 3. Contract management and budget issues related to USAID grants are handled by World
Vision, Inc. (WVUS)'s Financial Services Unit and World Vision, Inc (WVUS)’s Contract
Services Unit within the Legal Department.
T F 4. The two primary sources of grant funding for emergency relief are the USAID/W Office
of Foreign Disaster Assistance (OFDA) and the USAID Missions.
T F 5. A "donor" is an individual, organization, corporation, government, or multilateral agency

which provides to World Vision the resources necessary for a project.
T F 6. Quarterly narrative and financial reporting, and annual narrative reporting is due to World
Vision, Inc. (WVUS) within 20 days after the end of the quarter or year unless other
arrangements have been made.
T F 7. USAID is particularly interested in promoting sustainability, partnerships, and integrated

approaches and methods in the programs which it funds.
T F 8. World Vision, Inc. (WVUS) provides cash, commodity, and gifts-in-kind (GIK) resources
to the World Vision partnership as well as technical assistance in the implementation of
United States Government grants.
T F 9. Large scale emergency relief and development grants are available through the USAID
Missions.
T F 10. World Vision, Inc. (WVUS)'s International Programs Group (IPG) is responsible for
raising private gifts-in-kind (GIK) for World Vision.
T F 11. USAID's fiscal year begins in July of each year.
T F 12. World Vision, Inc. (WVUS) never receives USAID grant funding as a subgrantee of
another PVO.
T F 13. World Vision, Inc. (WVUS) receives funding from both public and private donors.
T_ F 14. Both cash and gifts-in-kind (GIK) can be used as match for most USAID grants.
FINAL EXAM: WORKBOOK 1 (Page 2 of 3)
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_T_ F 15. World Vision, Inc. (WVUS)’s Gifts-In-Kind Department (GIK) is responsible for the
procurement of and internal host country logistics of U.S. Government food aid.
_T_ F 16. OFDA is the main funding source in USAID/W for emergency disaster relief funding.
_T_ F 17. In addition to USAID, World Vision, Inc. (WVUS) also accesses funding from other U.S.
Government and multilateral sources.
_ T_ F 18. U.S. Government food commodities as well as cash funding for commodity transport and
commodity management are available through USAID/W’s Office of Food for Peace
(FFP).
_ T_ F 19. Before any commitments are made to USAID to perform the grant, the WV National
Offices must contact World Vision, Inc. (WVUS) to discuss whether the level of required
match proposed under the grant is appropriate and can be raised.
_T_ F 20. While USAID commodity grants do not require match, USAID commodity transport
grants require (at a minimum) a 25 percent match.
_T_ F 21. The signed grant agreement documents are the legally-binding understanding of the
contractual, financial, and programmatic aspects of the proposed program.
_T_F 22. USAID Section 202(e) grants provide cash funding for institutional strengthening.
_T_F 23. World Vision, Inc. (WVUS) is a fundraising office within the World Vision Partnership.
_T_F 24. A grant is considered legally-binding once it has been signed by both the donor and
World Vision, Inc. (WVUS)
_T_F 25. USAID Agreement Officers deal exclusively with the programmatic aspects of USAID
grants.
_T_F 26. World Vision, Inc. (WVUS)’s Indirect Cost Rate covers costs incurred by WV National
Offices and World Vision Partnership Office in the procurement and administration of
USAID funded grants.
_T_ F 27. Further work is done on the design of health and development programs (in the form of a
Detailed Implementation Plan or DIP) during the Program Implementation Stage of a
grant.
_T_F 28. Monetization grants are considered cash grants.
_T_F 29. World Vision, Inc. (WVUS) receives centrally funded grants from both the USAID
Missions and USAID/W.
_T_F 30. The Final Audit Stage of a grant is when World Vision, Inc. (WVUS) submits to USAID
a fixed asset inventory for all property purchased with grant funding.
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FINAL EXAM: WORKBOOK 1 (Page 3 of 3)
_T_ F 31. A grant or cooperative agreement is a U.S. Government contract made between a donor
and an organization (the "grantee") in order to assist that organization in implementing
specific, written programmatic objectives which have been agreed upon beforehand by
the donor and grantee.
_T_F 32. A Procurement Authorization is the legal instrument used to transfer U.S. Government
food commodities to World Vision.
_T_F 33. All Requests for Amendment should be coordinated through the appropriate World
Vision, Inc. (WVUS) Program, Finance and Contract Officers responsible for the grant.
Submit The Completed Original Of The Final Exam (no photocopies or faxes) to World Vision, Inc.
(WVUS)’s International Programs Financial Services Unit For Grading. With A Grade Of 75% Or
Better, You Will Receive A World Vision, Inc. (WVUS) Certificate Of Completion For The Course.
I have read the Introduction To World Vision, Inc. (WVUS) Grant Funding self-study workbook, and
completed the final exam based on my knowledge and understanding of the subject. I hereby submit this
completed exam for grading.
Signed _________________________________________
Name__________________________________________
Title___________________________________________
Date___________________________________________
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ANSWER KEY
Preliminary Exercise. 1. True. 2. False. Most of World Vision, Inc. (WVUS)’s income comes
from corporate gifts-in-kind donations. 3. True. 4. True. 5. True. 6. True. 7. True.
However, note that once the congressional appropriation has been distributed, they are essentially
totally separate funding sources. 8. False. USAID's fiscal year begins in October. 9. True. 10.
True. 11. True. 12. False. USAID Section 202(e) funding provides cash funding for
management and administrative support for moving PL480 Title II food commodities. 13.
False. The actual grant documents are prepared by USAID Agreement Officers, not grant
officers. 14. True. 15. True. 16. False. The Indirect Cost Rate covers indirect costs incurred
by World Vision, Inc. (WVUS) and WVPO for the provision of technical assistance, oversight,
etc. of USAID-funded grants. 17. True. 18. True. 19. False. A fixed asset inventory for all
tangible goods purchased with grant funding with an acquisition price of US$5,000 or more, and
an inventory of any residual tangible property purchased with grant funding with an aggregate
value of US$5,000 or more are prepared and submitted to USAID during the Closeout Stage of a
grant.
Exercise One. 1. False. World Vision, Inc. (WVUS)’s Headquarters is in Federal Way,
Washington. 2. True. 3. False. The World Vision Partnership Office is not the registered
entity with USAID. World Vision, Inc. (WVUS) is the legally registered entity. 4. True.
However, note that World Vision, Inc. (WVUS) also procures U.S. Government food
commodities for use by the World Vision Partnership. 5. False. World Vision, Inc. (WVUS)
does provide programmatic technical assistance for the U.S. Government grants which it
receives. 6. False. Funding for overseas freight charges can be obtained from U.S. Government
sources, especially the Office of Food for Peace of USAID/W
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Exercise Two. 1. You would contact: (i) the International Programs Group in Washington,
D.C., or Federal Way, Washington to find out who is the program officer for your geographical
region/country. The World Vision, Inc. (WVUS) Program Officer will provide you with
technical assistance in defining all the goods and services needed for the implementation of the
program. (ii) the World Vision, Inc. (WVUS) Finance Officer for your region/country. (iii) If
you intend to use private gifts-in-kind (such as pharmaceuticals) in your program as part of the
private matching funding in the budget, you should contact the Gifts-in-Kind Department,
located in Federal Way. 2. You would contact the GIK Department which could provide you
with private gifts-in-kind information and availability. 3. You should contact the Legal
Department and, in particular, the World Vision, Inc. (WVUS) contract officer for your
region/country, who can tell you what you need to know regarding U.S. Government regulations
and can also provide you with assistance in obtaining waivers or approvals for certain
procurements, travel, and training issues. 4. You should contact: (i) the International
Programs Group and, in particular, the World Vision, Inc. (WVUS) Program Officer for your
region/country. He/she can help you work with USAID regarding programmatic issues such as
delays. (ii) the Legal Department and, in particular, the World Vision, Inc. (WVUS) contract
officer for your region/country. He/she can work with USAID Agreement Officers to deal with
the legal and financial implications of suspension/termination of the grant, grant extensions, etc.
In addition, you should also contact the World Vision, Inc. (WVUS) Finance Officer for your
region/country if there will be significant changes to the grant budget because of program delays
or suspension.
Exercise Three. 1. False. World Vision, Inc. (WVUS) can receive funding from multi-lateral
organizations such as the World Bank and the United Nations. 2. False. Although most of
World Vision, Inc. (WVUS)'s grant funding comes from public ("government") sources, World
Vision, Inc. (WVUS) can also receive grant funding from foundations and other private sources,
and from other "partner" organizations. 3. True. 4. False. Private gifts-in-kind can only be
obtained from private sources, not the U.S. Government. 5. True. 6. False. World Vision, Inc.
(WVUS) also receives grants from other U.S. Government agencies, such as the U.S. Customs
Service and the U.S. Department of Agriculture.
Exercise Four. NONE.
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Exercise Five. PART I. 1. USAID/Washington; the USAID Missions. 2. Cognizant
Technical; reviewing the programmatic aspects of proposals and assisting in grant
implementation. 3. Country Development Strategy Statements (CDSS) 4. Sustainability,
partnership, and integrated approaches and methods. 5. the United States Congress;
congressional appropriations. 6. Emergency humanitarian assistance; population and
health; broad-based economic growth; environment; and democracy initiatives. PART II.
7. (I) USAID/Washington Geographic Bureau for Latin American and the Caribbean; (ii) the
USAID Mission in your country; (iii) the Office of Private and Voluntary Cooperation
(PVC) and/or (iv) the Functional Bureau . 8. the Office of Food for Peace (FFP). Note: the
USAID Missions provide funding for inland, not overseas, freight. 9. (i) the
USAID/Washington Geographic Bureau for Asia and the Near East; (ii) the USAID Mission
in Bangladesh; (iii) the Office of Foreign Disaster Assistance (OFDA). Note: If U.S.
Government commodities are part of this relief program, you may also contact: the Office of
Food for Peace (FFP). 10. (I) the USAID Mission in Mali; (ii) the Office of Food for Peace.
Note: You may also contact the U.S. Department of Agriculture (USDA). 11. (i) the
USAID Mission in Mozambique; (ii) the Office of Food for Peace. 12. (i) the
USAID/Washington Geographic Bureau for Asia and the Near East; (ii) the USAID Mission
in Cambodia; (iii) the Office of Private and Voluntary Cooperation (PVC) and/or (iv) the
Functional Bureau. 13. For the commodities: the Office of Food for Peace (FFP). For the
overseas and inland commodity transport: the Office of Food for Peace (FFP). To cover
administrative costs associated with commodity movement: you need Section 202(e) funds
from the Office of Food for Peace. For other administrative costs or relief program funding
supportive of, but not directly related to, the commodity distribution program: (i) the
USAID/Washington Geographic Bureau for Africa; (ii) the Office of Foreign Disaster
Assistance (OFDA) 14. (i) the Office of Foreign Disaster Assistance (OFDA); (ii) the Office
of Private and Voluntary Cooperation (PVC); (iii) the Office of Food for Peace (FFP); (iv)
the USAID Geographic Bureaus; (v) the Functional Bureaus, (vi) Office of Transition
Initiatives (OTI).
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Exercise Six. 1. Agreement; Cognizant Technical. 2. (i) read, evaluate, and suggest funding
for proposals; (ii) prepare Project Implementation Order/Technical Form (PIO/Ts); (iii) receive
and evaluate narrative reports. 3. "As Agreement Officer, I deal with the legal/ contractual and
financial issues of grant awards, not the programmatic issues. Your Congnizant Technical
Officer should be contacted first regarding programmatic aspects of the grant.” Please note:
You should first talk to your World Vision, Inc. (WVUS) Program Officer before
contacting USAID. 4. You can tell the staff person whether USAID will accept the use of gifts-
in-kind in carrying out the program objectives. For instance, if the gifts-in-kind are
pharmaceuticals, you may evaluate whether this will help implement the program objectives in a
Child Survival/Health grant. However, for the waiver, you should refer the staff person to the
USAID Agreement Officer, who takes care of this legal change in the grant budget. 5. (i)
adequate matching requirements; (ii) inclusion of the indirect cost rate; (iii) complying with
procurement regulations; (iv) accurate and timely reporting on the program; (v) ensuring
that programs are carried out in such a manner that World Vision, Inc. (WVUS) will receive
good audits from USAID.
Exercise Seven. PART I. (in chronological order): 1. Pre-proposal Stage.
2. Proposal Stage. 3. Proposal Submission and Negotiation Stage. 4. Award Stage. 5.
Program Implementation Stage. 6. Grant Amendments. 7. End-of-Project Stage. 8. Final
Closeout Stage. 9. Final Audit Stage. PART II. 1. Grant Amendments/Program
Implementation Stage. 2. Program Implementation Stage; Grant Amendments; End-of-
Project Stage (Note: A pipeline analysis is only applicable after the grant has been awarded.) 3.
Pre-Proposal Stage; Proposal Stage; Program Implementation Stage (if a Detailed
Implementation Plan, DIP, must be submitted to the donor). 4. Proposal Stage; Grant
Amendments. 5. Proposal Submission and Negotiation Stage; Award Stage; Grant
Amendments. 6. Program Implementation Stage. 7. Award Stage; Grant Amendments.
8. Implementation Stage; End-of-Project Stage. 9. Final Audit Stage. 10. Closeout Stage.
11. Program Implementation Stage. 12. Proposal Stage; Proposal Submission and
Negotiation Stage; Grant Amendments (if large-scale budget amendment required). 13.
Program Implementation Stage (Note: An amendment to extend the grant period can only be
done after the grant has been signed. Before the grant is signed, a change in the proposed
documents is part of the negotiation process, not the amendment process.) 14. Proposal
Submission and Negotiation Stage; Grant Amendments. 15. Anytime, but preferably during
the Pre-Proposal Stage or Proposal Submission and Negotiation Stage.
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WORLD VISION, INC.

(WVUS) SELF-STUDY GRANT TRAINING SERIES

World Vision, Inc. (WVUS) Finance and Contract Services

CHAPTER ONE. OVERVIEW OF "WORLD VISION, INC. (WVUS)"

CHAPTER TWO. ORGANIZATIONAL STRUCTURE OF WORLD VISION,

CHAPTER THREE. WORLD VISION, INC. (WVUS)'S DONORS

CHAPTER FOUR. USING U.S. GOVERNMENT FUNDS IN WV’s MINISTRIES

CHAPTER FIVE. THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

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CHAPTER SIX. THE USAID SYSTEM

CHAPTER SEVEN. THE LIFE CYCLE OF A USAID GRANT OR

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May God bless you and your work!

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T F 3. World Vision, Inc. (WVUS) provides cash, food commodities, gift-in-kind

T F 4. World Vision, Inc. (WVUS)’s International Programs Group (IPG) is located

T F 5. World Vision, Inc. (WVUS)’s Gifts-In-Kind Department (GIK) is responsible

T F 7. USAID/Washington and the USAID Missions, share funding allocated under a

T F 8. USAID's fiscal year begins in September of each year.

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T F 15. USAID is particularly interested in promoting sustainability, partnerships, and

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SECTION 1. WORLD VISION, INC. (WVUS) IS A SUPPORT OFFICE

SECTION 2. WORLD VISION, INC. (WVUS) PROVIDES RESOURCES TO

World Vision, Inc. (WVUS) procures cash donations, corporate gifts-in-kind,

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T F 1. World Vision, Inc. (WVUS)’s headquarters is in Monrovia, California.

T F 2. World Vision, Inc. (WVUS) provides resources to the WV Partnership.

T F 5. World Vision, Inc. (WVUS) is a fundraising office, not a program office. As

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SECTION 1. WORLD VISION, INC. (WVUS)’s ORGANIZATIONAL

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SECTION 2: FISCAL MANAGEMENT

Annual Independent Audit. Government funded projects, including commodity projects,

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2. You want to obtain gifts-in-kind (in particular clothing and pharmaceuticals) to

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SECTION 1. "PUBLIC" AND "PRIVATE" DONORS

SECTION 2. UNITED STATES GOVERNMENT AGENCIES

SECTION 3. MULTILATERAL DONORS

A multilateral donor is an international organization which provides resources for

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SECTION 5. DONORS OF PRIVATE GIFTS-IN-KIND (GIK)

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T F 4. World Vision, Inc. (WVUS) receives private gifts-in-kind from corporations,

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It is important to take a moment to understand the role of using government funds in

SECTION 1: WHY USE U.S. GOVERNMENT FUNDING?

Augmentation of Existing Program Resources. United States Government funding helps

Access to Technical Expertise. Relief and development projects require a significant

SECTION 2: WHAT "STRINGS" ARE ATTACHED TO U.S. GOVERNMENT

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SECTION 1: WHAT IS USAID?

As previously discussed, the U.S. Agency for International Development (USAID) is an

2. USAID Missions are staffed primarily with _____ _ officers