Food Assistance Division (FAD)

1
Food Assistance Division(FAD)

• 1250 Maryland Avenue, S.W.
• Suite 400
• Washington, D.C. 20024

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Food Assistance DivisionWho We Are

• DIRECTORS OFFICE
• (General Budget, Program Regulations, Local
  Regional Procurement, Cash Disbursements, etc.)
• NAME TELEPHONE FAX [phone]
• Ron Croushorn, Director 202-720-3038
• Babette Gainor, Deputy Director 202-690-2543
• Brian Goggin, Deputy Director 202-720-2637
• Ida Larmore, Secretary
  202-720-4221
• Joyce Friedenberg, Ag Economist
  202-720-6734
• William Whelan, Ag Economist
  202-401-0157
• Faye Johnson, Ag Marketing Assistant
  202-720-7515
• TRANSPORTATION LOGISTICS BRANCH
• (Freight Commodity Concerns, Food Aid Quality,
  Documentation, etc.)
• NAME TELEPHONE FAX [phone]

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Food Assistance DivisionWho We Are

• SCHOOL FEEDING HUMANITARIAN BRANCH
• (MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION
  AND CHILD NUTRITION
• SECTION 416(b) PROGRAMS)
• NAME/REGIONAL RESPONSIBILITY TELEPHONE FAX
  202-690-3078
• Dorothy Feustel, Branch Chief 202-720-0150
• Richard Chavez, Sr. Program Analyst-Latin America
  and Middle East 202-401-0100
• Alessandra McCormack, Program Analyst-Asia and
  WFP 410-519-0845
• Mark Myers, Sr. Program Analyst-Africa
  202-401-0129
• FOOD FOR DEVELOPMENT BRANCH
• (FOOD FOR PROGRESS TITLE I PROGRAMS)
• NAME/REGIONAL RESPONSIBILITY TELEPHONE
  FAX [phone]
• Judy Phillips, Branch Chief 202-720-0732
• Erika Beltran, Program Analyst-Latin
  America 202-720-5263
• Abdullah (Al) Ersoz, Program Analyst-Southern
  Africa 202-720-3405

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SFHB and FFDBResponsibilities

• Review and Evaluate Proposals
• Develop Agreements Amendments
• Review Logistics and Monetization Financial
  Reports
• Liaison between PVO and FAS

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Subrecipients Subagreements

• Subrecipient
• A legal entity that receives donated commodities,
  income, sale proceeds or other resources from a
  Participant for the purpose of implementing
  activities in the targeted country
• A Subrecipient may be a foreign (local) or
  international organization
• Approval
• FAS approval is required

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Subagreements

• Participants enter into a written Subagreement
  with each subrecipient
• Copies of all Subagreements must be submitted to
  FAS
• Subagreements will stipulate the responsibilities
  of each party
• Subrecipient is accountable to the Participant.
• Participants are responsible for monitoring the
  actions of their Subrecipients as necessary to
  ensure that donated commodities or resources are
  used for authorized purposes in compliance with
  applicable laws and regulations and the agreement
  and that performance goals are achieved

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Operating in Host Country

• Proposal must address applicants ability to
  become registered and operate in targeted country
• Registration methods vary throughout the world.
  Check for requirements in each country
• Contact FAS Attaché or Embassy if unaware of
  registration process in host country
• www.fas.usda.gov/scriptsw/fasfield/ovs_directory_
  search.asp
• Registration verification is required prior to
  Agreement signing

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Bank Accounts

• Participant Responsibilities
• Participant shall deposit all sale proceeds and
  income into a separate, interest-bearing account
• Exceptions
• Exceptions will only be made if the account is in
  a country where the laws and customs prohibit the
  payment of interest, or FAS determines that this
  requirement would constitute an undue burden

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Bank Accounts

• Supervision and disbursements
• An appropriate Participant official must
  supervise each account and must approve all
  disbursements from the account
• Full Accounting
• Full accounting of funds must be maintained by
  the Participant

10
Budget Management

• Proposed Budget
• Detailed budget (negotiating tool)
• Agreement Budget
• Summary Budget (legally binding)

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Changes to the Agreement

• Two types of changes
• Textual changes
• Budget changes

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Amendments

• An amendment is required when items stated in the
  signed agreement need to be changed
• Examples
• Geographic location
• Activities/projects
• Level of actual proceeds realized
• Reallocations of funds beyond the flexibility in
  the signed agreement
• The agreement must be amended BEFORE taking any
  action
• Discuss the proposed amendment with FAD staff
• You can e-mail a copy to the analyst

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Amendments

• Written amendment request
• A written amendment request must be submitted
  with Participants official signature
• Amendment request should include
• A brief explanation of requested changes
• A revised version of the agreement text which
  identifies all sections that would have to be
  changed

14
Budget Realignment

• A Budget realignment is required when adjustments
  in budget line items exceed 50,000 or 20 percent
  of total administrative budget
• Older agreements have less flexibility with
  adjustments
• 1,000 or 10 percent, whichever is less
• 5,000 or 20 percent, whichever is less
• 35,000 or 20 percent, whichever is less
• Please see your agreement for details

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Budget Realignment Instructions

• Instructions located at
• www.fas.usda.gov/excredits/FoodAid/budget/amndinst
  .html
• Changing budget format or formulas!

16
Amendments Factors that Affect Requests

• Submitted in proper format
• Reasonable administrative increases
• No violation has occurred
• Activities still on-going
• Benefit to program
• No financial harm to CCC/FAS

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Amendments

• Send official request to
• Director, Food Assistance Division
• Foreign Agricultural Service/USDA
• Ag. STOP 1034
• 1400 Independence Avenue, SW
• Washington, DC 20250-1034
• (Preferred Address)
• 1250 Maryland Avenue, SW
• Suite 400
• Washington, DC 20024

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Amendments

• Official Amendment
• Amendment becomes official once signed by FAS,
  and Participant may implement its provisions

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Funds ManagementCash Advance/Reimbursement
Return of Funds

• All forms and instructions can be found on the
  FAS website
• under
• McGovern-Dole
• and
• Food for Progress

http//www.fas.usda.gov/food-aid.asp
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Cash Request Guidelines

• Cash requests should be made using the
  appropriate form and submitted to FAD
• Please be sure that all required financial
  reports have been submitted to FAD prior to
  requesting cash (advance or reimbursement) . 
• Reports may be submitted by email along with the
  cash request if reporting is not up to date.
• Ophelia.Johnson_at_fas.usda.gov
• PPDED_at_fas.usda.gov
• Reimbursements
• A participant may request the payment of CCC/FAS
  provided
• funds to reimburse it for authorized expenses
• These expenses must be shown as obligations on
  the Participants latest financial report

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Cash Advances

• McGovern-Dole and Food for Progress (new
  regulations)
• 100 of funds may be advanced
• All interest earned on advanced funds must be
  returned to CCC/FAS
• FAS will not approve any request for an advance
  if
• (i) It is received earlier than 60 days after
  the date of a previous advance made in connection
  with the same agreement or
• (ii) Any required reports, as specified in
  1499.13 and in the agreement, are more than six
  months in arrears.

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Cash Request Flow
Program Participant (e.g. PVO)
Edited Email Request for Agreement Funds (if
necessary)
Signed Official Request for Agreement Funds
Wire Transfer
Email Request for Agreement Funds
30 days
USDA/CCC FAD Office of the Director
Edited Email Request for Agreement Funds (if
necessary)
Email Request for Agreement Funds
Signed Official Request for Agreement Funds
Signed Official Request for Agreement Funds
USDA/FSA Financial Mgt Division
Wire Transfer
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http//www.fas.usda.gov/food-aid.asp
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Cash Advance/Reimbursement Mailing Addresses

• Mail the signed official cash advance/reimbursemen
  t request letter  via courier (DHL, UPS, FedEx,
  etc.), preferred method, to
• USDA/FAS/Office of Capacity Building and
  Development/Food Assistance Division / Office of
  the Director / Attn Faye JohnsonThe Portals
  Building 1250 Maryland Avenue, SW Suite 400
  Washington, DC 20024 Phone [phone]
• or via U.S. Postal Service
• USDA/FAS/Office of Capacity Building and
  Development/Food Assistance Division/ Office of
  the Director / Attn Faye JohnsonAg Stop1034
  1400 Independence Ave, SW  Washington, DC 20050
  Phone [phone]
• If you choose to use the U.S. Postal Service,
  please note that mail coming into USDA can be
  delayed more than 30 days due to security
  measures.

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Return of Funds

• Unobligated advances
• Interest Earned under McGovern-Dole
• Additional proceeds not authorized for use
• Other unspent funds
• Please email a return of funds form to FAS
  before sending check or wire
• Ophelia.Johnson_at_fas.usda.gov
• PPDED_at_fas.usda.gov
• Wire Transfer is preferred method
• (faster, safer, easily traceable)

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Forms can be found at
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Return of funds by wire transfer
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Return of funds by check
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Funds Management Help

• For additional information or assistance, please
  contact Faye Johnson at 202-720-7515
  (OPHELIA.JOHNSON_at_FAS.USDA.GOV )
• or the Division Office at 202-720-4221.

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Freight Forwarder Assignment

• When a freight forwarder is used, the participant
  will notify FAS/FAD
• If requested, FAD/TLB will provide a list of
  freight forwarders who have participated in food
  assistance programs in the past
• The participant shall provide Director, FAS/FAD
  certification that the freight forwarder is
  compliant with 1499.7(c) and 1599.7(c) of the
  Food for Progress and McGovern-Dole regulations

35
Commodity Invitation

• The freight forwarder, on behalf of the
  participant, or the participant, enters commodity
  requests (call forward) into FARES
• TLB reviews the FARES call forward data and
  routes to KCCO
• KCCO prepares the commodity purchase invitation
• Packaged and processed commodity invitations are
  issued monthly
• Bulk commodity invitations are issued on an
  as-requested basis

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Freight Invitation

• Options for freight contracting under the new
  regulations
• USDA will issue FAR compliant freight invitations
• The participant, in accordance with the process
  specified in the agreement, will acquire freight
• All freight contracts must meet cargo preference
  requirements

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Commodity and Freight Purchase

• In cases where USDA procures commodity and
  freight, the KCCO Commodity Operations System
  performs the lowest landed cost evaluation and
  generates an optimal solution
• The option to purchase other than on the lowest
  landed cost basis exists in the FAR
• FAD reviews the recommended solution and assures
  it is within budget levels
• TLB provides concurrence to KCCO to purchase
  commodity and freight

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Reporting Requirements(Where To Find)

• Agreement
• Rules and Regulations
• -7 CFR Part 1499 (Food For Progress)
• -7 CFR Part 1599 (McGovern-Dole)
• -7 CFR Part 3019 (USDA-wide)
• FAS Personnel

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Reporting Forms and Audit Information May Be
Found At http//www.fas.usda.gov/excredits/FoodA
id/budget/food20for20progress20budgets.html htt
p//www.fas.usda.gov/excredits/FoodAid/budget/food
20for20education20budgets.html
40
Reporting Tips

• Submit timely accurate reports
• Complete all applicable sections
• Verify all numbers i.e. tonnages dollars
• Report against objectives and indicators in the
  agreement
• Seek assistance (Program Analyst) if uncertain
• Respond to inquiries in a timely manner

41
Reports Help To

• Monitor progress against objectives and
  indicators in the agreement
• Ensure funds are being used properly and in
  accordance with the agreement budget
• Bring awareness to problems, issues, and
  challenges
• Provide a picture on how agreement is progressing
  
• Evaluate agreement at time of closeout

42
New Developments

• Interim and Final Evaluations (New Rules and
  Regulations)
• FAS is reviewing report forms following
  publications of new Rules and Regulations

43
Submitting Reports

• Please send hard copy
• via courier to
• USDA/FAS/Office of Capacity Building and
  Development
• Director Food Assistance Division
• 1250 Maryland Avenue, SW
• Suite 400
• Washington, DC 20024
• via U.S. Postal Service
• USDA/FAS/Office of Capacity Building and
  Development
• Director Food Assistance Division Ag Stop1034
• 1400 Independence Ave, SW 
• Washington, DC 20050
• E mail copy to
• PEBReports_at_fas.usda.gov

44
Success Stories

• Food Aid improves the lives of people throughout
  the world, yet many do not get the chance to
  personally see the tremendous impact of its work
  or meet the individuals, families, and
  communities who benefit from American assistance.
  
• Food Aid Success Stories are an effort to let
  everyone see the impact of Food Aids work and
  meet the people whose lives it changed it is
  also their effort to say thank you for
  Americas help.

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Success Stories

• Success Stories may include
• Impact of food aid on individuals, communities,
  governments, etc
• Number of meals served and nutritional benefits
  realized
• Beneficiaries of buildings/schools constructed
• Increase in productivity due to irrigation
  systems built
• Income generated
• Number of jobs created

46
Success Stories

• To submit a story review the Guidelines provided
  at the following website http//www.fas.usda.gov/
  FoodAidStories/Story.aspx.
• Please submit the following types of stories
• Success StoryProvides a detailed overview of a
  program, illustrated by a powerful photograph.
• First PersonFocuses on one person who benefited
  from a  program or worked with FoodAid to create
  change in the community, including a background
  paragraph and a quote from and picture of the
  subject.
• Photo and CaptionUses a powerful photo and
  succinct caption to illustrate how Food Aid is
  making a difference, along with two or three
  paragraphs of text to provide background.

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Uses of Success Stories

• The McGovern-Dole Congressional Report
• The International Food Assistance Report
• The U.S. Overseas Loans Grants Report
• U.S. Annual Aid Review
• Other Reports to Congress
• General Public Awareness

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Benefits of Success Stories

• Funding
• Support
• Appreciation
• Acceptance

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A-133 Audit
Helping to Build a Sustainable Culture of
Program Accountability and Transparency
Barbara Shumar, Senior Analyst, OCBD
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A-133 Audit Discussion

• Overview of A-133 Audits
• Program participant responsibilities
• Helpful websites

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OMB Circular A-133 Audits

• Participants are required to perform an audit to
  assure compliance to the program agreements and
  regulations
• If a Participant provides more than 25,000 to a
  recipient agencies this agency must also have an
  audit

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OMB Circular A-133 Audits

• All non-Federal organizations that expend
  500,000 or more of Federal awards in a year are
  required to obtain an annual audit
• Organizations expending less than 500,000 in a
  year are exempt from the Federal audit
  requirements, but must make records available for
  review or audit

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OMB Circular A-133 Audits

• Participants can request funds to cover the cost
  of the audit in their proposal submission to the
  Food Assistance Division

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Responsibilities of Participant Under OMB
Circular A-133

• Identify Federal awards received and expended
• Prepare financial statements and a Schedule of
  Expenditures of Federal Awards
• Obtain an auditor

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Responsibilities of Participant Under OMB
Circular A-133

• Ensure completion of audit
• Submit the audit reporting package and Data
  Collection Form (form SF-SAC) to the Federal
  Clearinghouse within 9 months from the end of
  your fiscal year

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Responsibilities of Participant Under OMB
Circular A-133

• In addition to submitting a copy of your OMB
  Circular A-133 Audits to the Federal Clearing
  House audits, both OMB Circular A-133 and
  agreement audits must also be provided directly
  to
• Ronald Croushorn
• Director, Food Assistance Division
• 1250 Maryland Ave, SW Suite 400
• Washington, DC 20024

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Audit Findings

• Audits are reviewed for findings
• If a Participant has findings, MES will contact
  the participant regarding their corrective action
  plan
• If the next year audit continues to have findings
  or shows no improvement, MES may request a
  meeting with you and your accounting staff

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Helpful Websites

• http//www/whitehouse.gov/omb/circulars/a133/a133.
  htm
• http//harvester.census.gov/fac/2008SAQA/htm
• http//georgewbush-whitehouse.archives.gov/omb/cir
  culars/a133_compliance/08/usda.pdf

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OCBD Food Aid Closeout
Helping to Build a Sustainable Culture of
Program Accountability and Transparency
Barbara Shumar, Senior Analyst, OCBD
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Closeout Discussion Overview

• Agreement closeout priorities
• Indicators of closeout readiness
• Documents needed for closure
• Closeout process

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CLOSEOUT

• For Pre 2002 agreements the Monitoring and
  Evaluation Staff is responsible for ensuring that
  all documents have been provided by the
  Participants and closing the agreements

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CLOSEOUT

• For Post 2001 agreements the Food Assistance
  Division will work with the Participants to
  ensure that all relevant reports and documents
  have been submitted. Once the Food Assistance
  Division has made that determination, the
  agreement will be provided to the Monitoring and
  Evaluation Staff for closure

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CLOSEOUT

• An agreement is ready for closeout
• activities have been completed
• in most cases, all commodities have been
  distributed,
• all monetization proceeds and cash provided have
  been spent

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CLOSEOUT

• Final, cumulative logistics and monetization
  (log/mon) report received
• Final, cumulative financial report received and
  any funds that were advanced but not spent
  returned to USDA

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CLOSEOUT

• List of equipment purchased over 5,000 and how
  you intend to dispose of equipment
• All relevant tax certification information
  received and accepted
• Copies of all relevant audits and any issues
  related to the agreement resolved

66
MESs Closeout Process

• MES prepares a written evaluation regarding each
  agreement closed
• Information to complete this evaluation is
  gathered from the Logistics and Monetization
  Report, Financial Reports, the signed agreement,
  and any amendments

67
MESs Closeout Process

• Once the written evaluation is completed, a
  closeout letter is drafted
• The closeout letter may inform you that you have
  completed all of the requirements under the
  agreement and USDA considers the agreement closed

68
MESs Closeout Process

• The letter may inform you that you are eligible
  for the CCC funds that remain from the cash grant
  you received and ask you to request the funds
• In some instances, we may determine that you need
  to reimburse USDA and request that you return the
  funds within 30 days

69
Closeout Checklist

• The website for the closeout checklist
• http//www.fas.usda.gov/excredits/FoodAid/budget/
  food20for20progress20budgets.html

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FAS Compliance Role in Food Aid Agreements

• Steven Rhodes, Director
• CSEPD
• 4/6/2009

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Compliance, Security and Emergency Planning
Division (CSEPD)

• Staff of 13 conducting cooperator and food aid
  reviews, OIG/GAO liaison and security/investigatio
  ns
• Conduct 4 to 5 Financial and Compliance Reviews
  annually of CCC/USDA food aid agreements
  (selected/random)
• Separate from OMB A-133 requirements

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Items for Your Radar

• Document, Transparent, Traceable
• Reporting
• Traceable Logistics and Monetization Reports
• Reasonable, procurement practices (document
  process)
• Complete final reporting (log. Mon. / Financial
  Reports)
• CCC Advances
• Must be in interest bearing account
• Account traceable to individual agreements

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Items for Your Radar (cont.)

• Monetization
• In accordance with the agreement (transparent)
• Demonstrate fair solicitation/sale
• Enforce terms of sales contract
• Contracting
• Ensure comprehensive agreement with recipient
  organization (subrecipient) is in place

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Items for Your Radar (cont.)

• Damage/Loss of commodity
• Make reasonable effort to pursue collection
  (report to FAS)
• Settlement for less than full amount requires FAS
  approval
• Questions Regarding what/how to report?
• Contact FAS Food Assistance Division

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CSEPD Compliance Staff

• Beth Wong Compliance Review Officer 202-690-1041
• Lawrence Chamorro, Compliance Review Spec.
  202-720-0575
• Jameika Henderson, Compliance Review Spec.
  202-690-4097
• Jennifer Duncan, Compliance Review Spec.
  202-690-1154
• Marianne Soliman, Compliance Review Spec.
  202-720-8894
• Kesha Pitt, Compliance Review Spec. 202-720-9180