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U.S. TRADE AND DEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
September 30, 2020 and 2019
(d) Basis of Accounting
USTDA’s Balance Sheets, Statements of Net Cost, and Statements of Changes in Net Position are prepared using the accrual basis of accounting. This basis requires recognition of the financial effects of transactions, events, and circumstances in the periods when those transactions, events, and circumstances occur, regardless of when cash is received or paid. USTDA also uses budgetary accounting to facilitate compliance with legal constraints and to track its budget authority at the various stages of execution, including commitments, obligation, and eventual outlay. Under budgetary accounting, obligations are recorded when orders for goods or services are placed or awards are authorized, and outlays are recorded when disbursements are made. The Statements of Budgetary Resources are prepared using budgetary accounting methods.
The standards used in the preparation of the accompanying financial statements are issued by the Federal Accounting Standards Advisory Board, which represent accounting principles generally accepted in the United States of America for U.S. government entities.
(e) Appropriations and Other Financing Sources
Appropriations are recognized as a financing source at the time they are authorized and apportioned. Appropriations used to fund grant activities and administrative expenses are recognized as expenses and revenue as the resultant related expenses are incurred.
During FY 2019 and FY 2020, USTDA received appropriations to be used for program and administrative expenses, which are available for obligation through September 30, 2020 and 2021, respectively. These funds were appropriated in accordance with Division K, Title VI of the Consolidated Appropriations Act, 2019 and Division F, Title VI of the Consolidated Appropriations Act, 2020. USTDA’s appropriation acts allow de-obligated funds that were initially obligated prior to their expiration to remain available for re-obligation for an additional four years from the date on which the availability of such funds would otherwise have expired. In FY 2019, USTDA re-apportioned approximately $3.8 million of FY 2015 de-obligations. In FY 2020, USTDA did not re- apportion any of its de-obligations.
Under Section 632(b) of the Foreign Assistance Act of 1961, as amended, (22 U.S.C. § 2392(b)) (the “FAA”), the Department of State (“DOS”) entered into a series of interagency agreements with USTDA, in support of “Aligning Public Finance to Leverage Private Capital Investment: U.S.-Africa Clean Energy Finance Initiative (US-ACEF),” to increase access to clean energy for African countries by stimulating increased investments in clean energy generating capacity and related infrastructure. The interagency agreement signed in 2015 provided $2.5 million from DOS to USTDA in FY 2016, which had been fully obligated by September 30, 2017. In FY 2018, $0.6 million was disbursed by USTDA and invoiced to DOS relating to the FY 2016 interagency agreement. In FY 2019, no funds were disbursed by USTDA and invoiced to DOS relating to the FY 2016 interagency agreement. A second interagency agreement signed in FY 2017, provides for $7.5 million from DOS to USTDA. During FY 2018 and FY 2019, $2.6 million and $3.0 million, respectively had been obligated, and $0.2 million and $0.3 million, respectively, was disbursed by USTDA and invoiced to DOS under that agreement. During FY 2020, $2.3 million had been disbursed and $1.3 million invoiced to DOS under this agreement.
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