Collapse to view only § 4411. Findings; statement of purposes
- § 4411. Findings; statement of purposes
- § 4412. Grants to the Endowment
- § 4413. Eligibility of the Endowment for grants
- § 4414. Requirements relating to the Endowment and its grantees
- § 4415. Freedom of information
- § 4416. Retention of interest
§ 4411. Findings; statement of purposes
(a) The Congress finds that there has been established in the District of Columbia a private, nonprofit corporation known as the National Endowment for Democracy (hereafter in this subchapter referred to as the “Endowment”) which is not an agency or establishment of the United States Government.
(b) The purposes of the Endowment, as set forth in its articles of incorporation, are—
(1) to encourage free and democratic institutions throughout the world through private sector initiatives, including activities which promote the individual rights and freedoms (including internationally recognized human rights) which are essential to the functioning of democratic institutions;
(2) to facilitate exchanges between United States private sector groups (especially the two major American political parties, labor, and business) and democratic groups abroad;
(3) to promote United States nongovernmental participation (especially through the two major American political parties, labor, business, and other private sector groups) in democratic training programs and democratic institution-building abroad;
(4) to strengthen democratic electoral processes abroad through timely measures in cooperation with indigenous democratic forces;
(5) to support the participation of the two major American political parties, labor, business, and other United States private sector groups in fostering cooperation with those abroad dedicated to the cultural values, institutions, and organizations of democratic pluralism; and
(6) to encourage the establishment and growth of democratic development in a manner consistent both with the broad concerns of United States national interests and with the specific requirements of the democratic groups in other countries which are aided by programs funded by the Endowment.
(Pub. L. 98–164, title V, § 502, Nov. 22, 1983, 97 Stat. 1039.)
§ 4412. Grants to the Endowment
(a) Authorization; funding; grant agreement
(b) Implementation of purposes
(c) Status of Endowment
(d) Oversight procedures applicable
(e) Amounts to Free Trade Union Institute and National Chamber Foundation
Of the amounts made available to the Endowment for each of the fiscal years 1984 and 1985 to carry out programs in furtherance of the purposes of this Act—
(1) not less than $13,800,000 shall be for the Free Trade Union Institute; and
(2) not less than $2,500,000 shall be to support private enterprise development programs of the National Chamber Foundation.
(f) Independent labor unions
(Pub. L. 98–164, title V, § 503, Nov. 22, 1983, 97 Stat. 1040; Pub. L. 100–204, title II, § 212, Dec. 22, 1987, 101 Stat. 1376.)
§ 4413. Eligibility of the Endowment for grants
(a) Compliance with statutory requirements
(b) Funding for private sector groups and covered programs only
(1) The Endowment may only provide funding for programs of private sector groups and may not carry out programs directly.
(2) The Endowment may provide funding only for programs which are consistent with the purposes set forth in section 4411(b) of this title.
(c) Compensation, etc., for officers and employees of Endowment
(1) Officers of the Endowment may not receive any salary or other compensation from any source, other than the Endowment, for services rendered during the period of their employment by the Endowment.
(2) If an individual who is an officer or employee of the United States Government serves as a member of the Board of Directors or as an officer or employee of the Endowment, that individual may not receive any compensation or travel expenses in connection with services performed for the Endowment.
(d) Prohibitions respecting financial matters
(1) The Endowment shall not issue any shares of stock or declare or pay any dividends.
(2) No part of the assets of the Endowment shall inure to the benefit of any member of the Board, any officer or employee of the Endowment, or any other individual, except as salary or reasonable compensation for services.
(e) Audit of accounts; reporting requirements
(1) The accounts of the Endowment shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or other political subdivision of the United States. The audits shall be conducted at the place or places where the accounts of the Endowment are normally kept. All books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Endowment and necessary to facilitate the audits shall be made available to the person or persons conducting the audits; and full facilities for verifying transactions with any assets held by depositories, fiscal agents, and custodians shall be afforded to such person or persons.
(2) The report of each such independent audit shall be included in the annual report required by subsection (h). The audit report shall set forth the scope of the audit and include such statements as are necessary to present fairly the Endowment’s assets and liabilities, surplus or deficit, with an analysis of the changes therein during the year, supplemented in reasonable detail by a statement of the Endowment’s income and expenses during the year, and a statement of the application of funds, together with the independent auditor’s opinion of those statements.
(f) Audit of financial transactions; reporting requirements
(1) The financial transactions of the Endowment for each fiscal year may be audited by the Government Accountability Office in accordance with such principles and procedures and under such rules and regulations as may be prescribed by the Comptroller General of the United States. Any such audit shall be conducted at the place or places where accounts of the Endowment are normally kept. The representatives of the Government Accountability Office shall have access to all books, accounts, records, reports, files, and all other papers, things, or property belonging to or in use by the Endowment pertaining to its financial transactions and necessary to facilitate the audit; and they shall be afforded full facilities for verifying transactions with any assets held by depositories, fiscal agents, and custodians. All such books, accounts, records, reports, files, papers, and property of the Endowment shall remain in the possession and custody of the Endowment.
(2) A report of each such audit shall be made by the Comptroller General to the Congress. The report to the Congress shall contain such comments and information as the Comptroller General may deem necessary to inform the Congress of the financial operations and condition of the Endowment, together with such recommendations with respect thereto as he may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made contrary to the requirements of this subchapter. A copy of each report shall be furnished to the President and to the Endowment at the time submitted to the Congress.
(g) Audits by United States Information Agency
(h) Recordkeeping requirements; audit and examination of books, etc.
(1) The Endowment shall ensure that each recipient of assistance provided through the Endowment under this subchapter keeps separate bank accounts or separate self-balancing ledger accounts with respect to such assistance and such records as may be reasonably necessary to fully disclose the amount and the disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, and the amount and nature of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit.
(2) The Endowment shall ensure that it, or any of its duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance provided through the Endowment under this subchapter. The Comptroller General of the United States or any of his duly authorized representatives shall also have access thereto for such purpose.
(i) Annual report; contents; testimony respecting report
(j) Grantee; conflict of interest
(Pub. L. 98–164, title V, § 504, Nov. 22, 1983, 97 Stat. 1040; Pub. L. 99–93, title II, § 210(b), (d), Aug. 16, 1985, 99 Stat. 432; Pub. L. 100–204, title II, § 211, Dec. 22, 1987, 101 Stat. 1376; Pub. L. 102–138, title II, §§ 211(d), 215, Oct. 28, 1991, 105 Stat. 695, 697; Pub. L. 103–236, title II, § 228, Apr. 30, 1994, 108 Stat. 423; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.)
§ 4414. Requirements relating to the Endowment and its grantees
(a) Partisan politics
(1) Funds may not be expended, either by the Endowment or by any of its grantees, to finance the campaigns of candidates for public office.
(2) No funds granted by the Endowment may be used to finance activities of the Republican National Committee or the Democratic National Committee.
(3) No grants may be made to any institute, foundation, or organization engaged in partisan activities on behalf of the Republican or Democratic National Committee, on behalf of any candidate for public office, or on behalf of any political party in the United States.
(b) Consultation with Department of State
(Pub. L. 98–164, title V, § 505, as added Pub. L. 99–93, title II, § 210(a), Aug. 16, 1985, 99 Stat. 431.)
§ 4415. Freedom of information
(a) Compliance with Freedom of Information Act
(b) Publication in Federal Register
(c) Review by United States Information Agency
(1) In the event that the Endowment determines not to comply with a request for records under section 552, the Endowment shall submit a report to the Director of the United States Information Agency explaining the reasons for not complying with such request.
(2) If the Director approves the determination not to comply with such request, the United States Information Agency shall assume full responsibility, including financial responsibility, for defending the Endowment in any litigation relating to such request.
(3) If the Director disapproves the determination not to comply with such request, the Endowment shall comply with such request.
(Pub. L. 98–164, title V, § 506, as added Pub. L. 99–93, title II, § 210(a), Aug. 16, 1985, 99 Stat. 432.)
§ 4416. Retention of interest
Notwithstanding any other provision of law, with the approval of the National Endowment for Democracy, grant funds made available by the National Endowment for Democracy may be deposited in interest-bearing accounts pending disbursement, and any interest which accrues may be retained by the grantee without returning such interest to the Treasury of the United States and interest earned may be obligated and expended for the purposes for which the grant was made without further appropriation.
(Pub. L. 105–277, div. G, subdiv. B, title XXIV, § 2411, Oct. 21, 1998, 112 Stat. 2681–831.)