[National Endowment for Democracy Use of USIA Grant Funds]

B-248111: Sep 9, 1992

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The U.S. Information Agency (USIA) requested a decision regarding whether restrictions within the National Endowment for Democracy Act prohibit the National Endowment for Democracy from using USIA grant funds to finance activities involving: (1) publishing a journal; (2) holding biennial world conferences; (3) conducting a discussion series; (4) developing a library and database of information about democracy movements; and (5) awarding fellowships. GAO held that: (1) the activities were consistent with the Endowment's purposes; (2) the activities constituted functions which the Endowment could directly carry out, as opposed to programs, which it could not directly carry out; (3) future grant agreements between USIA and the Endowment should clearly specify the authorized activities; and (4) USIA oversight of the Endowment's activities should include ensuring that the activities comply with the act's requirements. Accordingly, the Endowment may use USIA grant funds to finance the specified activities.