AWARD LETTER FOR U.S. CONTRIBUTION TO THE UN

UNCLAS STATE 065266 SIPDIS E.O. 12958: N/A TAGS: UNSC PREL PHUM ZI XA ZU SUBJECT: AWARD LETTER FOR U.S. CONTRIBUTION TO THE UN ELECTORAL ASSISTANCE TRUST FUND FOR ZIMBABWE ELECTION OBSERVERS ¶1. This is an action request. The Department instructs USUN to deliver the award letter in para 2 below to the UN Electoral Assistance Division (EAD) as soon as possible. Original will follow via fax that includes authorizing signature. USUN should advise EAD that the funds will be transferred upon Department's receipt of EAD's authorization of the award letter. End action request. ¶2. Begin text of letter: Dear Mr. Jenness, As a follow-up to our letter dated June 9, 2008, under the authority contained in the Foreign Assistance Act of 1961, as amended, the U.S. Department of State hereby grants the sum of $1.35 million dollars to the United Nations Trust Fund for Electoral Assistance to support election observation for the June 27 election in Zimbabwe. This award is effective and obligation is made as of the date of counter-signature of this letter by the United Nations, reflecting its acceptance of the terms stated in the Attachment to this letter. Please sign the original and all enclosed copies of this letter to acknowledge your acceptance of this award and the terms and conditions set forth herein, and return the original to my office immediately. Again, we thank you for your efforts in supporting the AU and SADC in their mission to observe the run-off election in Zimbabwe. We look forward to your report on how these funds contributed to AU and SADC efforts. Sincerely, Kristen Silverberg Attachment: Terms and Conditions ACKNOWLEDGED: For the United Nations BY: TITLE: DATE: Funds Citation: Attachment ) Terms and Conditions These funds are to be used to support the rapid deployment of election observers from the African Union (AU) ($850,000 USD) and the Southern African Development Community (SADC) ($500,000 USD) for the second round of Zimbabwe,s presidential elections scheduled for June 27, 2008. The United Nations shall advise the U.S. if any funds remain after the completion of the Zimbabwe presidential elections project so that the U.S. can provide instructions regarding the use of those funds. This award shall remain in effect until the Trust Fund completes its work on the Zimbabwe presidential elections scheduled for June 27, 2008, and all expenses are paid. This award may be terminated by either party. In the event of termination, any funds obligated hereunder must be returned to the Department of State, except for funds committed pursuant to a legally binding transaction. Such committed funds shall continue to be subject to the terms of this agreement until fully disbursed or returned to the Department of State if they will not be disbursed. U.S. funds or other support under this award are not to be provided to individuals or organizations associated with terrorism, illicit drug traffickers, or those known to assist or collude with drug traffickers. Funds provided herein should not be taxed. The United Nations should seek to ensure that commodities purchased by the Trust Fund with funds provided under this agreement are exempt from taxes, including value-added taxes and customs duties. To the extent that the UN Trust Fund does not have adequate immunity from taxation, it should seek agreement from the beneficiary entity that taxes will not be imposed. Should any such value-added taxes or customs duties be assessed and not refunded by any beneficiary entity, the United Nations shall include this information in its financial reports to the Department of State. U.S. law does not permit recipients of these U.S. assistance funds to earn interest on these funds. Should the United Nations earn interest on these funds, the United Nations shall provide a year-end accounting along with a certified check made out to the United States Treasury for the amount of the interest earned. The United Nations agrees to provide the U.S. Government with a final report on activities carried out under this award, including accounting for funds to sufficiently substantiate charges to the Trust Fund. The reports shall be submitted to the U.S. Mission to the United Nations in New York for forwarding to the Department of State. It is understood that financial records, including documentation to support entries on accounting records and to substantiate charges against these funds, will be maintained in accordance with the United Nations, usual accounting procedures, which must follow United Nations System Accounting Standards (&UNSAS8). All such financial records must be maintained for at least three years after the final disbursement of funds under this award in accordance with United Nations document retention policies. The account in which these funds are held will be audited, applying established procedures under appropriate provisions of the United Nations Financial Regulations and Rules. U.S. funds should be utilized in a manner that respects the human rights and dignity of persons. U.S. funds or support under this grant shall not be provided to any security forces (including police) where there is credible evidence that such unit has committed gross violations of human rights. The United Nations can request information from the Department of State to help establish whether there is such evidence with respect to prospective recipients of assistance. RICE