(b) USE OF FUNDS.—Funds so granted may be used 
by the Foundation to carry out the purposes described in 
section 2(b), and otherwise applicable limitations on the 
purposes for which funds appropriated to the Department 
of State may be used shall not apply to funds granted 
to the Foundation. 
(c) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to make the Foundation an agency or 
establishment of the United States Government or to 
make the members of the Board of Directors of the Foun-
dation, or the officers or employees of the Foundation, of-
ficers or employees of the United States. 
(d) OVERSIGHT.—The Foundation and its grantees 
shall be subject to the appropriate oversight procedures 
of the Congress. 
(e) OTHER FUNDING.—The Foundation shall have 
authority to accept funding from non-United States Gov-
ernment sources to complement United States Govern-
ment funding. 
SEC. 4. ELIGIBILITY OF THE FOUNDATION FOR GRANTS. 
(a) COMPLIANCE
WITH
STATUTORY
REQUIRE-
MENTS.—Grants may be made to the Foundation under 
this Act only if the Foundation agrees to comply with the 
requirements specified in this section and elsewhere in this 
Act. 
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(b) FUNDING FOR COVERED PROGRAMS ONLY.—The 
Foundation may provide funding only for programs that 
are consistent with the purposes set forth in section 2(b). 
(c) COMPENSATION FOR OFFICERS AND EMPLOYEES 
OF THE FOUNDATION.—If an individual who is an officer 
or employee of the United States Government serves as 
a member of the Board of Directors or as an officer or 
employee of the Foundation, that individual may not re-
ceive any compensation or travel expenses in connection 
with service performed for the Foundation. 
(d) PROHIBITION RESPECTING FINANCIAL MAT-
TERS.—The Foundation shall not issue any shares of 
stock or declare or pay any dividends. No part of the as-
sets of the Foundation shall inure to the benefit of any 
member of the Board of Directors of the Foundation, any 
officer or employee of the Foundation, or any other indi-
vidual, except as salary or reasonable compensation for ex-
penses incurred in the performance of duties to the Foun-
dation. 
(e) AUDIT
OF ACCOUNTS; REPORTING REQUIRE-
MENTS.— 
(1) AUDIT OF ACCOUNTS.—The accounts of the 
Foundation shall be audited annually in accordance 
with generally accepted auditing standards by inde-
pendent certified public accountants or independent 
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licensed public accountants certified or licensed by a 
regulatory authority of a State or other political sub-
division of the United States. 
(2) REPORTING
REQUIREMENTS.—The report 
of each such independent audit shall be included in 
the annual report required by subsection (h) of this 
section. The audit report shall set forth the scope of 
the audit and include such statements as are nec-
essary to present fairly the Foundation’s assets and 
liabilities, surplus or deficit, with an analysis of the 
changes therein during the year, supplemented in 
reasonable detail by a statement of the Foundation’s 
income and expenses during the year, and a state-
ment of the application of funds, together with the 
independent auditor’s opinion of those statements. 
(f) AUDIT OF FINANCIAL TRANSACTIONS.— 
(1) AUDIT OF FINANCIAL TRANSACTIONS.—The 
financial transactions of the Foundation for each fis-
cal year may be audited by the Government Ac-
countability Office in accordance with such prin-
ciples and procedures and under such rules and reg-
ulations as may be prescribed by the Comptroller 
General of the United States. 
(2) REPORTING REQUIREMENTS.—A report of 
each such audit shall be made by the Comptroller 
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