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B-248111.2 1 (1993-04-15)

handle is hein.gao/gaobadqrj0001 and id is 1 raw text is: usadmm GAO Q*o dmodOk B-248111 .2 April 15, 1993 Mr. R, Wallace Stuart Act inq General Counsel U S, Information Agency Dear Mr. Stuart; On Oecegmr , 1992, the General Counsel ,f the U.S. Infomation Agency (UST&M aske s t &it 0urt- r consideration to a po zion of our de~ciron B-248111, Sept. 9, 1942. That decision chiefly concerned whether the National Endowment for Democracy Act allows th National Endowment for Democracy lEndcwmentl tot use US'iA grant funds for certain urpcses. in B-246111, we also stated that USIA, as a grantor, is responsible for ensuring that privately funded Endowment activities comply with the terms of the Act. The General Counsel expressed some surprise with our position on USA'l oversliqht responsibility, The General Counsel's letter enclosed a discussion pper presentin9 another view of USIA's seraight responsibility and a letter from the Edowm s counsel arquing that our position is constitutionally improper. We continue to believe that B-248111 is correct, and offer the following respon se to che diSCUSSAIOA paper And the Endovmnt Counsel's letter. The discussion paper asserts that our view of USIA's oversight responsibilities in 9-248111 is an overextension of our holding~ in 64 Comp, Gent S82. In 64 Comp. Gon, 562 19S4S) o stated thst OUSIA, in its relationship with the Endowent, has essentially the same oversight responaibilities as any other Federal grantor agency. The discussion paper states that other grantors do not oversem privately funded activities of their grantees. Thus, the par arms tbat 64 Comp. ,n 562 does not support Our conclusion in 3-248111 that it should examine the Endowment's privately funded activities. We reached our conclusion in 8-24*111 not by Perily extending the holding in 64 Comp. Gen, 582, but rather by analyiinq the terms f the National endcent for Democracy Act, Under section 503 of the Act, USIA grants to the Endowent are sublect to certain terms and cocditions 22 V.S-C. 4412{a) *1900). One such condition is that the Endowment agree to comply with all requirements of the Act.

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