Program Finances Clause Samples

Program Finances. Finding a dependable, efficient and secure means of receiving fund transfers from abroad, and also moving funds within Iraq, was an ongoing challenge to the program. The collapse of the Iraqi private banking systems in 2003 required that alternative approaches be developed for transferring funds. ICAP utilized a number of different channels to get funds to where they were needed – including several banks in different localities, as well as networks of exchange offices and money movers—but always with a view to ensuring accountability and security. With the slow rebuilding of the Iraqi economic infrastructure, the use of banks became possible. But since most people and many companies did not have a bank account, nor did they wish to undertake the risks associated with patronizing banks located in crowded public places, ICAP needed to adapt itself to and operate within the cash economy that prevailed. This presented significant security concerns, as it usually meant that funds had to be moved in cash from one location to another. Fortunately, ICAP was able to negotiate arrangements with an exchange office in Kirkuk to deliver the cash to our offices, so that project staff did not have to transport it themselves. This enabled us to invite vendors to collect their payments at our secure office compound, where ICAP staff could disburse the funds safely and without compromise. The same methods and procedures were used to pay national staff salaries in cash for the duration of ICAP- I, though ACDI/VOCA is exploring other possible procedures for use in ICAP-II. Another payroll-related issue that had been pending since project commencement was discharging our legal obligations to the Iraqi Social Insurance system, without revealing to the government authorities the identities and personal details of our national staff. In March 2007, after prolonged internal discussion and with counsel from another USAID contractor in Baghdad (BearingPoint), ICAP succeeded in negotiating an arrangement with the Ministry of Labor and Social Affairs (MOLSA) in Kirkuk, whereby we could fully discharge our Social Insurance obligations for the period July 2003 through January 2007, without penalty, without permitting inspection of our premises by Ministry authorities, and most importantly, without revealing the identities or personal details of our national staff. This payment was disbursed by ICAP and duly received by the Ministry of Labor and Social affairs in Kirkuk. Future payments ...