The U.S. Agency for International Development (USAID) submits this report pursuant to section 507(c) of the Additional Ukraine Supplemental Appropriations Act, 2022 (Public Law 117-128) (FY 2022 AUSAA), which requires that: “At least 15 days prior to the initial obligation of funds made available for the purposes of subsection (a),1 the Secretary of State or the Administrator of the United States Agency for International Development, as appropriate, shall submit to the appropriate congressional committees a report detailing procedures and processes to ensure such funds are used by the Government of Ukraine [(GOU)] in the manner agreed to by such Government...Provided, That such report shall be updated every six months following the submission of the first report and shall be submitted until funds made available for such direct financial support are expended.”
USAID submitted its first report pursuant to section 507(c) on June 15, 2022. Since then, all of the FY 2022 USAA, FY 2022 AUSAA and FY 2023 USAA funding for direct financial support has been fully expended via two World Bank mechanisms. This includes $1,300,000,000 in FY 2022 AUSAA Economic Support Funds (ESF) utilizing the World Bank’s Public Expenditures for Administrative Capacity Endurance (PEACE) mechanism (CN #154, dated June 13, 2022); $1,700,000,000 in FY 2022 AUSAA ESF funds utilizing the World Bank Single-Donor Trust Fund for Ukraine (CN #165, dated June 23, 2022); $4,500,000,000 in FY 2022 AUSAA ESF funds utilizing PEACE (CN #181, dated July 21, 2022); and $4,500,000,000 in FY 2023 USAA ESF funds utilizing PEACE (CN #18, dated October 27, 2022). This report details processes and procedures that are in place to ensure transparency and accountability for the use of funds provided through those mechanisms. These safeguards are complemented by ongoing programming by USAID to strengthen the GOU’s financial management systems.
Since Section 507(c) requires submission of an updated report every six months until “[FY 2022 AUSAA] funds made available for direct financial support are expended,” this will be USAID’s final report submitted pursuant to section 507(c).
