1052 
opment, the African Development Bank and the African 
Development Fund. 
DEBT-FOR-DEVELOPMENT 
SEC. 7030. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title III of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization. 
FINANCIAL MANAGEMENT AND BUDGET TRANSPARENCY 
SEC. 7031. (a) LIMITATION ON DIRECT GOVERN-
MENT-TO-GOVERNMENT ASSISTANCE.— 
(1) Funds appropriated by this Act may be 
made available for direct Government-to-Government 
assistance only if— 
(A) each implementing agency or ministry 
to receive assistance has been assessed and is 
considered to have the systems required to 
manage such assistance and any identified 
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vulnerabilities or weaknesses of such agency or 
ministry have been addressed; and 
(i) the recipient agency or ministry 
employs and utilizes staff with the nec-
essary technical, financial, and manage-
ment capabilities; 
(ii) the recipient agency or ministry 
has adopted competitive procurement poli-
cies and systems; 
(iii) effective monitoring and evalua-
tion systems are in place to ensure that 
such assistance is used for its intended 
purposes; and 
(iv) no level of acceptable fraud is as-
sumed. 
(B) the Government of the United States 
and the government of the recipient country 
have agreed, in writing— 
(i) on clear and achievable objectives 
for the use of such assistance; and 
(ii) that such assistance should be 
made on a cost-reimbursable basis. 
(2) In addition to the requirements in sub-
section (a), no funds may be made available for such 
assistance without prior consultation with, and noti-
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fication to, the Committees on Appropriations: Pro-
vided, That such notification shall contain an expla-
nation of how the proposed activity meets the re-
quirements of paragraph (1): Provided further, That 
the requirements of this paragraph shall only apply 
to direct Government-to-Government assistance in 
excess of $10,000,000 and all funds available for 
cash transfer, budget support, and cash payments to 
individuals. 
(3) The USAID Administrator or the Secretary 
of State, as appropriate, shall suspend any such as-
sistance if the Administrator or the Secretary has 
credible information of material misuse of such as-
sistance, unless the Administrator or the Secretary 
determines and reports to the Committees on Appro-
priations that it is in the national interest of the 
United States to continue such assistance. 
(4) Not later than 90 days after the enactment 
of this Act and 6 months thereafter, the USAID Ad-
ministrator shall submit to the Committees on Ap-
propriations a report that— 
(A) details all assistance described in sub-
section (a) provided during the previous 6- 
month period by country, funding amount, 
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source of funds, and type of such assistance; 
and 
(B) the type of procurement instrument or 
mechanism utilized and whether the assistance 
was provided on a cost-reimbursable basis. 
(5) The USAID Administrator shall submit to 
the Committees on Appropriations, concurrent with 
the fiscal year 2013 congressional budget justifica-
tion materials, amounts planned for assistance de-
scribed in subsection (a) by country, proposed fund-
ing amount, source of funds, and type of assistance. 
(b) NATIONAL BUDGET
AND CONTRACT TRANS-
PARENCY.— 
(1) LIMITATION
ON
FUNDING.—None of the 
funds appropriated under titles III and IV of this 
Act may be made available to the central govern-
ment of any country that does not meet minimum 
standards of fiscal transparency: Provided, That the 
Secretary of State shall develop ‘‘minimum stand-
ards of fiscal transparency’’ to be updated and 
strengthened, as appropriate, to reflect best prac-
tices: Provided further, That the Secretary shall 
make an annual determination of ‘‘progress’’ or ‘‘no 
progress’’ for countries that do not meet minimum 
standards of fiscal transparency and make those de-
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terminations publicly available in an annual ‘‘Fiscal 
Transparency Report’’. 
(2) MINIMUM STANDARDS OF FISCAL TRANS-
PARENCY.—For purposes of paragraph (1), ‘‘min-
imum standards of fiscal transparency’’ shall include 
standards for the public disclosure of budget docu-
mentation, including receipts and expenditures by 
ministry, and government contracts and licenses for 
natural resource extraction, to include bidding and 
concession allocation practices. 
(3) WAIVER.—The Secretary of State may 
waive the limitation on funding in paragraph (1) on 
a country-by-country basis if the Secretary reports 
to the Committees on Appropriations that the waiver 
is important to the national interest of the United 
States: Provided, That such waiver shall identify any 
steps taken by the government of the country to 
publicly disclose its national budget and contracts 
which are additional to those which were undertaken 
in previous fiscal years, include specific rec-
ommendations of short- and long-term steps such 
government can take to improve budget trans-
parency, and identify benchmarks for measuring 
progress. 
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