Common use of Expenditures Requiring Prior Approval Clause in Contracts

Expenditures Requiring Prior Approval. Recipients must comply with prior approval requirements that are established in the agreement. Failure to comply with prior approval requirements generally causes USAID to deem the costs unallowable.‌ ● Expenditures must be otherwise allocable, allowable, and reasonable.‌ ● AO could have approved the expenditures at the time that they were made.‌ ● AO has the authority to approve the same type of expenditure at the time of the request for approval.‌ ● Approval promotes efficient implementation of USAID’s program, or‌ ● Facts and circumstances of the expenditure show that the recipient was not grossly negligent and did not intend to circumvent USAID requirements.‌

Expenditures Requiring Prior Approval. Recipients must comply with prior approval requirements that are established in the agreement. Failure to comply with prior approval requirements generally causes USAID to deem the costs unallowable.‌ unallowable. ● Expenditures must be otherwise allocable, allowable, and reasonable.‌ reasonable.‌‌‌ ● AO could have approved the expenditures at the time that they were made.‌ made. ● AO has the authority to approve the same type of expenditure at the time of the request for approval.‌ approval. ● Approval promotes efficient implementation of USAID’s program, or‌ or ● Facts and circumstances of the expenditure show that the recipient was not grossly negligent and did not intend to circumvent USAID requirements.‌requirements. Effective Date: 12/29/2022