USAID OIG Alert – Responsibility to Report USAID Funds Transmitted to UNRWA

Advisory

Promptly report all information or allegations that USAID funds have been distributed or otherwise transmitted to the United Nations Relief and Works Agency (UNRWA)

USAID implementing partners (i.e., nongovernmental organizations, contractors, and UN agencies/public international organizations) are required to disclose allegations involving potential misuse of USAID funds, whether intentional or inadvertent, to USAID’s Office of Inspector General (USAID OIG). 

The U.S. Congress passed and the President signed into law the Further Consolidated Appropriations Act, 2024, effective March 23, 2024. Among other things, the law precludes U.S. funds from being used for any contribution, grant, or other payment to the United Nations Relief and Works Agency (UNRWA) through March 30, 2025.

Subsequently, on May 28, 2024, USAID’s Office of Acquisition and Assistance issued a public notice to USAID implementers stating, “[t]his restriction [of funding to UNRWA] applies to all award mechanisms, including contracts, assistance awards, and other transactions, including awards to Public International Organizations, funded with appropriations from prior fiscal years as well as fiscal year 2024, and will apply to funding provided in fiscal year 2025, until March 25, 2025.” The notice was accompanied by Implementing Partner Notices for both acquisition and assistance partners. USAID further advised that: 

Financial transactions using USAID funding to UNRWA are prohibited. USAID contractors and recipients cannot use USAID funds for subawards, subcontracts, or vendor agreements, at any tier, with UNRWA. 

Consistent with USAID’s mandatory disclosure requirements, USAID OIG expects all recipients of USAID funding to use its Hotline Portal to promptly transmit all information or allegations that USAID funds, at any tier, have been distributed or otherwise transmitted to UNRWA via any award mechanism since March 23, 2024.

Recommendations