Memorandum audit report on National Council of Negro Women

Pre-award survey audit, conducted prior to approval of a second NCNW proposal for A.I.D. grant support to the ID, covers a period through 8/26/85. Since receiving a start-up grant in 1975, the ID has received a total of $1.7 million from A.I.D. through the Office of Private Voluntary Cooperation (PVC) or the Bureau for Africa (AFR). Provision of this support was contingent on the NCNW"s commitment to establish a private sector funding program. When this commitment was not fulfilled, PVC in 1983 discontinued its support for the ID. In 1984, AFR twice extended the PVC project to allow the ID time to submit a financially sound proposal for A.I.D. funding of a new $1.5 million 3-year project. This was done with the understanding that internal problems had been solved and that matching funds for the new project would be provided by foundations, the private sector, and membership. However, the NCNW has projected matching income only for the first of the proposed project"s 3 years. Futher, the NCNW does not have an adequate proposal to directly address the private funding problem and it has no plans to hire personnel with fundraising expertise. Before final approval of the grant AFR should ensure that: (1) NCNW hire someone with expertise in preparing specific proposals to meet the matching grant requirements for the entire grant period; (2) prepare a certified financial statement validating the financial data for the period 10/1/83-9/30/84; and (3) provide supporting detail for the matching portion of the grant ($732,888) and verify that it meets all requirements. AFR should also closely monitor the project to ensure that private sector funds are raised according to the agreed upon time frames, grant amounts are adjusted to cover indirect costs, and all requirements for matching grants are met. AFR concurred with all audit recommendations.