Common use of Organizational Capacity Reviews Clause in Contracts

Organizational Capacity Reviews. Effective Date: 01/13/2020 An Organizational Capacity Review (OCR) is a “desk review” of a PIO’s policy and organizational framework and operational and managerial capacity. The purpose of an OCR is to conduct a high-level assessment of whether or not a PIO is organizationally capable of adequately safeguarding USAID resources, and to highlight any significant concerns, considerations, or risks that should be taken into account in working with the PIO. Because OCRs inform USAID funding decisions, each OCR must be supported by substantive due diligence. OCRs should be updated at least every five years but may be updated more frequently if specific circumstances warrant earlier reviews. Prior to entering into an agreement with a PIO, the Agency must conduct an OCR for the PIO which must be approved by either PPL/DC (Category 1) or the AO (Category 2). The AO must ensure that an appropriate OCR has been executed and transmit an approved copy to PPL/DC within 30 days of obligating funding. When conducting an OCR, PPL/DC (Category 1) or the AO (Category 2) should consider and evaluate the following: ● The quality of the PIO's past performance with respect to USG and other donor- funded projects, including compliance with the terms and conditions of the funding agreements, efficiency and effectiveness of implementation, and extent of results achieved; ● Internal and external audits, reviews, evaluations, and assessments of a XXX’s USG-funded programs, including but not limited to those performed by the PIO itself, independent auditors, U.S. Government Agency Inspectors General, the GAO, and the Departments of State and Treasury; ● PIO assessments by non-USG organizations, including the Multilateral Organization Performance Assessment Network (MOPAN), bilateral development partner reviews, and the Common Performance Assessment System for multilateral development banks (COMPAS); ● The XXX's most recent audited financial statements as prepared in accordance with the PIO's charter or governance structure and the independent auditor’s opinion on those financial statements; ● Applicable PIO policies and procedures regarding financial management, risk management and internal controls, procurement, property-management, audits, human resources, environmental and social safeguards, and other relevant and/or required policies (see section 308.3.10); ● PIO policies and procedures regarding business integrity, ethics, sexual exploitation and abuse, conflicts of interest, and anti-corruption; ● Projected budget, cash flow, and organization charts, as relevant; ● Information on the PIO’s accounting, internal control, and cost allowability principles; the PIO’s accounting standards in use, and their consistency with internationally-accepted accounting standards; ● XXX environmental and social safeguard policies and procedures, and any records of past performance; ● Other information that may be necessary to fully assess whether the organization has the necessary management competence to plan and carry out the intended activity; and ● Any other significant and substantive adverse findings, and the adequacy of the PIO’s actions to remediate them. In addition to the above, OCRs for Category 1 PIOs should also consider and evaluate the following: ● The effectiveness of the PIO’s governance structure, governance processes, and leadership; and ● USG engagement with the PIO, including through the governance structure, technical collaboration, and funding arrangements. If an RDOAG is awarded to a Regional PIO then the Organizational Capacity Reviews are only required at the sub-obligation level when the RDOAG recipient actually receives direct funding through an implementation letter.

Organizational Capacity Reviews. ‌ Effective Date: 01/13/2020 An Organizational Capacity Review (OCR) is a “desk review” of a PIO’s policy and organizational framework and operational and managerial capacity. The purpose of an OCR is to conduct a high-level assessment of whether or not a PIO is organizationally sufficiently capable of adequately safeguarding USAID resources, and to highlight any significant concerns, considerations, or risks that should be taken into account in working with the PIOmanaging donor funds. Because OCRs inform USAID funding decisions, each OCR must be supported by substantive due diligence. OCRs should be updated at least every five years but may be updated more frequently if specific circumstances warrant earlier reviews. Prior to entering into an agreement with a PIO, the Agency PIO must conduct have an OCR for the PIO which must be approved by either PPL/DC (Category 1) or the AO (Category 22 or 3). The AO must ensure that an appropriate OCR has been executed and transmit an approved copy to PPL/DC within 30 days of obligating fundingexecuted. When conducting an OCR, PPL/DC (Category 1) or the AO Operating Unit (Category 22 or 3) should consider and evaluate the following: ● The quality of the PIO's past performance with respect to USG and other donor- funded projects, including compliance with the terms and conditions of the funding agreements, efficiency and effectiveness of implementation, and extent of results achieved; ● Internal and external audits, reviews, evaluations, and assessments of a XXX’s USG-funded programs, including but not limited to those performed by the PIO itself, independent auditors, U.S. Government Agency Inspectors Inspector General, the GAO, and the Departments of State and Treasury; ● PIO assessments by non-USG organizations, including the Multilateral Organization Performance Assessment Network (MOPAN), bilateral development partner reviewsreviews (e.g., the United Kingdom’s Multilateral Aid Review), and the Common Performance Assessment System for multilateral development banks (COMPAS); ● The Copies of the XXX's most recent externally independent audited financial statements as prepared in accordance with the PIO's charter or governance structure and the independent auditor’s opinion on those financial statements; ● Applicable Reports and audits by the PIO’s Inspector General or equivalent institution, if applicable; ● Copies of applicable PIO policies and procedures regarding financial management, risk management and internal controlscontrol, procurement, property-management, audits, human resources, environmental and social safeguards, and other relevant and/or required policies (see section 308.3.10); ● Copies of PIO policies and procedures regarding business integrity, ethics, sexual exploitation and abuse, conflicts of interest, and anti-corruption; ● Projected budget, cash flow, and organization charts, as relevant; ● Information on as to the PIO’s type of generally accepted accounting, internal control, and cost allowability principles, and auditing standards adopted and in use; ● Information on the PIO’s accounting standards in use, and their consistency with internationally-accepted accounting standards; ● XXX environmental and social safeguard policies and procedures, and any evidence showing whether the PIO’s records of past performanceand accounts are kept in sufficient detail to accurately and fairly reflect transactions; ● Other information that may be necessary to fully assess whether the organization has the necessary management competence to plan and carry out the intended activity; and ● Any other significant and substantive adverse findings, and the adequacy of the PIO’s actions to remediate them. In addition to the above, OCRs for Category 1 PIOs should also consider and evaluate the following: ● The effectiveness of the PIO’s governance structure, governance processes, and leadership; and ● USG engagement with the PIO, including through the governance structure, technical collaboration, and funding arrangements. If an RDOAG is awarded to a Regional PIO then the Organizational Capacity Reviews are only required at the sub-obligation level when the RDOAG recipient actually receives direct funding through an implementation letter.

Organizational Capacity Reviews. Effective Date: 01/13/2020 08/24/2018 An Organizational Capacity Review (OCR) is a “desk review” of a PIO’s policy and organizational framework and operational and managerial capacity. The purpose of an OCR is to conduct a high-level assessment of whether or not a PIO is organizationally sufficiently capable of adequately safeguarding USAID resources, and to highlight any significant concerns, considerations, or risks that should be taken into account in working with the PIOmanaging donor funds. Because OCRs inform USAID funding decisions, each OCR must be supported by substantive due diligence. OCRs should be updated at least every five years but may be updated more frequently if specific circumstances warrant earlier reviews. Prior to entering into an agreement with a PIO, the Agency PIO must conduct have an OCR for the PIO which must be approved by either PPL/DC the DCS (Category 1) or the AO (Category 22 or 3). The AO must ensure that an appropriate OCR has been executed and transmit an approved copy to PPL/DC within 30 days of obligating fundingexecuted. When conducting an OCR, PPL/DC the DCS (Category 1) or the AO Operating Unit (Category 22 or 3) should consider and evaluate the following: ● The quality of the PIO's past performance with respect to USG and other donor- funded projects, including compliance with the terms and conditions of the funding agreements, efficiency and effectiveness of implementation, and extent of results achieved; ● Internal and external audits, reviews, evaluations, and assessments of a XXX’s USG-funded programs, including but not limited to those performed by the PIO itself, independent auditors, U.S. Government Agency Inspectors Inspector General, the GAO, and the Departments of State and Treasury; ● PIO assessments by non-USG organizations, including the Multilateral Organization Performance Assessment Network (MOPAN), bilateral development partner reviewsreviews (e.g., the United Kingdom’s Multilateral Aid Review), and the Common Performance Assessment System for multilateral development banks (COMPAS); ● The Copies of the XXX's most recent externally independent audited financial statements as prepared in accordance with the PIO's charter or governance structure and the independent auditor’s opinion on those financial statements; ● Applicable Reports and audits by the PIO’s Inspector General or equivalent institution, if applicable; ● Copies of applicable PIO policies and procedures regarding financial management, risk management and internal controlscontrol, procurement, property-management, audits, human resources, environmental and social safeguards, and other relevant and/or required policies (see section 308.3.10); ● Copies of PIO policies and procedures regarding business integrity, ethics, sexual exploitation and abuse, conflicts of interest, and anti-corruption; ● Projected budget, cash flow, and organization charts, as relevant; ● Information on as to the PIO’s type of generally accepted accounting, internal control, and cost allowability principles, and auditing standards adopted and in use; ● Information on the PIO’s accounting standards in use, and their consistency with internationally-accepted accounting standards; ● XXX environmental and social safeguard policies and procedures, and any evidence showing whether the PIO’s records of past performanceand accounts are kept in sufficient detail to accurately and fairly reflect transactions; ● Other information that may be necessary to fully assess whether the organization has the necessary management competence to plan and carry out the intended activity; and ● Any other significant and substantive adverse findings, and the adequacy of the PIO’s actions to remediate them. In addition to the above, OCRs for Category 1 PIOs should also consider and evaluate the following: ● The effectiveness of the PIO’s governance structure, governance processes, and leadership; and ● USG engagement with the PIO, including through the governance structure, technical collaboration, and funding arrangements. If an RDOAG is awarded to a Regional PIO then the Organizational Capacity Reviews are only required at the sub-obligation level when the RDOAG recipient actually receives direct funding through an implementation letter.

Organizational Capacity Reviews. Effective Date: 01/13/2020 An Organizational Capacity Review (OCR) is a “desk review” of a PIO’s policy and organizational framework and operational and managerial capacity. The purpose of an OCR is to conduct a high-level assessment of whether or not a PIO is organizationally capable of adequately safeguarding USAID resources, and to highlight any significant concerns, considerations, or risks that should be taken into account in working with the PIO. Because OCRs inform USAID funding decisions, each OCR must be supported by substantive due diligence. OCRs should be updated at least every five years but may be updated more frequently if specific circumstances warrant earlier reviews. Prior to entering into an agreement with a PIO, the Agency must conduct an OCR for the PIO which must be approved by either PPL/DC (Category 1) or the AO (Category 2). The AO must ensure that an appropriate OCR has been executed and transmit an approved copy to PPL/DC within 30 days of obligating funding. When conducting an OCR, PPL/DC (Category 1) or the AO (Category 2) should consider and evaluate the following: ● The quality of the PIO's past performance with respect to USG and other donor- funded projects, including compliance with the terms and conditions of the funding agreements, efficiency and effectiveness of implementation, and extent of results achieved; ● Internal and external audits, reviews, evaluations, and assessments of a XXX’s USG-funded programs, including but not limited to those performed by the PIO itself, independent auditors, U.S. Government Agency Inspectors General, the GAO, and the Departments of State and Treasury; ● PIO assessments by non-USG organizations, including the Multilateral Organization Performance Assessment Network (MOPAN), bilateral development partner reviews, and the Common Performance Assessment System for multilateral development banks (COMPAS); ● The XXX's most recent audited financial statements as prepared in accordance with the PIO's charter or governance structure and the independent auditor’s opinion on those financial statements; ● Applicable PIO policies and procedures regarding financial management, risk management and internal controls, procurement, property-management, audits, human resources, environmental and social safeguards, and other relevant and/or required policies (see section 308.3.10); ● PIO policies and procedures regarding business integrity, ethics, sexual exploitation and abuse, conflicts of interest, and anti-corruption; ● Projected budget, cash flow, and organization charts, as relevant; ● Information on the PIOP IO’s accounting, internal control, and cost allowability principles; the PIO’s accounting standards in use, and their consistency with internationally-accepted accounting standards; ● XXX environmental and social safeguard policies and procedures, and any records of past performance; ● Other information that may be necessary to fully assess whether the organization has the necessary management competence to plan and carry out the intended activity; and ● Any other significant and substantive adverse findings, and the adequacy of the PIO’s actions to remediate them. In addition to the above, OCRs for Category 1 PIOs should also consider and evaluate the following: ● The effectiveness of the PIO’s governance structure, governance processes, and leadership; and ● USG engagement with the PIO, including through the governance structure, technical collaboration, and funding arrangements. If an RDOAG is awarded to a Regional PIO then the Organizational Capacity Reviews are only required at the sub-obligation level when the RDOAG recipient actually receives direct funding through an implementation letter.

Organizational Capacity Reviews. Effective Date: 01/13/2020 An Organizational Capacity Review (OCR) is a “desk review” of a PIO’s policy and organizational framework and operational and managerial capacity. The purpose of an OCR is to conduct a high-level assessment of whether or not a PIO is organizationally sufficiently capable of adequately safeguarding USAID resources, and to highlight any significant concerns, considerations, or risks that should be taken into account in working with the PIOmanaging donor funds. Because OCRs inform USAID funding decisions, each OCR must be supported by substantive due diligence. OCRs should be updated at least every five years but may be updated more frequently if specific circumstances warrant earlier reviews. Prior to entering into an agreement with a PIO, the Agency PIO must conduct have an OCR for the PIO which must be approved by either PPL/DC (Category 1) or the AO (Category 22 or 3). The AO must ensure that an appropriate OCR has been executed and transmit an approved copy to PPL/DC within 30 days of obligating fundingexecuted. When conducting an OCR, PPL/DC (Category 1) or the AO Operating Unit (Category 22 or 3) should consider and evaluate the following: ● The quality of the PIO's past performance with respect to USG and other donor- funded projects, including compliance with the terms and conditions of the funding agreements, efficiency and effectiveness of implementation, and extent of results achieved; ● Internal and external audits, reviews, evaluations, and assessments of a XXX’s USG-funded programs, including but not limited to those performed by the PIO itself, independent auditors, U.S. Government Agency Inspectors Inspector General, the GAO, and the Departments of State and Treasury; ● PIO assessments by non-USG organizations, including the Multilateral Organization Performance Assessment Network (MOPAN), bilateral development partner reviewsreviews (e.g., the United Kingdom’s Multilateral Aid Review), and the Common Performance Assessment System for multilateral development banks (COMPAS); ● The Copies of the XXX's most recent externally independent audited financial statements as prepared in accordance with the PIO's charter or governance structure and the independent auditor’s opinion on those financial statements; ● Applicable Reports and audits by the PIO’s Inspector General or equivalent institution, if applicable; ● Copies of applicable PIO policies and procedures regarding financial management, risk management and internal controlscontrol, procurement, property-management, audits, human resources, environmental and social safeguards, and other relevant and/or required policies (see section 308.3.10); ● Copies of PIO policies and procedures regarding business integrity, ethics, sexual exploitation and abuse, conflicts of interest, and anti-corruption; ● Projected budget, cash flow, and organization charts, as relevant; ● Information on as to the PIO’s type of generally accepted accounting, internal control, and cost allowability principles, and auditing standards adopted and in use; ● Information on the PIO’s accounting standards in use, and their consistency with internationally-accepted accounting standards; ● XXX environmental and social safeguard policies and procedures, and any evidence showing whether the PIO’s records of past performanceand accounts are kept in sufficient detail to accurately and fairly reflect transactions; ● Other information that may be necessary to fully assess whether the organization has the necessary management competence to plan and carry out the intended activity; and ● Any other significant and substantive adverse findings, and the adequacy of the PIO’s actions to remediate them. In addition to the above, OCRs for Category 1 PIOs should also consider and evaluate the following: ● The effectiveness of the PIO’s governance structure, governance processes, and leadership; and ● USG engagement with the PIO, including through the governance structure, technical collaboration, and funding arrangements. If an RDOAG is awarded to a Regional PIO then the Organizational Capacity Reviews are only required at the sub-obligation level when the RDOAG recipient actually receives direct funding through an implementation letter.