Very interesting, thank you. I found the same lack of transparency in the NICRA (Negotiated Indirect Cost Rate Agreement) rates agreed between the federal government (USAID in this case) and grantee non-profit organizations active in foreign aid: http://aidwatchers.com/2010/10/transparencygate-the-end-of-the-road/
Similar picture: NICRA % treated as trade secrets, both sides often feel they are getting a bad deal, lack of accountability to the taxpayer.
According to USAID:
“Indirect cost rates should not be considered in award decisions or negotiations since
indirect cost rates are approved by the Government for standard application on all federal
awards and by their nature do not compare across organizations, given the diverse
accounting practices and methods for determining rates.
The practice of direct or indirect charging is not an indicator of best value.” http://www.usaid.gov/sites/default/files/documents/1868/300mah.pdf
USAID generally refuses to pay any overheads to non-American (local) NGOs, undermining their sustainability and incentivizing creative accounting in the sector.
we also need transparency in the outcomes of research, is there any form of accountability in how funds are used and if the research really achieves any impact.
COMMENTS
BY Till
ON October 21, 2014 02:52 PM
Very interesting, thank you. I found the same lack of transparency in the NICRA (Negotiated Indirect Cost Rate Agreement) rates agreed between the federal government (USAID in this case) and grantee non-profit organizations active in foreign aid:
http://aidwatchers.com/2010/10/transparencygate-the-end-of-the-road/
Similar picture: NICRA % treated as trade secrets, both sides often feel they are getting a bad deal, lack of accountability to the taxpayer.
According to USAID:
“Indirect cost rates should not be considered in award decisions or negotiations since
indirect cost rates are approved by the Government for standard application on all federal
awards and by their nature do not compare across organizations, given the diverse
accounting practices and methods for determining rates.
The practice of direct or indirect charging is not an indicator of best value.”
http://www.usaid.gov/sites/default/files/documents/1868/300mah.pdf
USAID generally refuses to pay any overheads to non-American (local) NGOs, undermining their sustainability and incentivizing creative accounting in the sector.
BY David Kilimanjaro
ON October 24, 2014 01:14 AM
we also need transparency in the outcomes of research, is there any form of accountability in how funds are used and if the research really achieves any impact.