(f) 3 Nothing in this title shall preclude the Endowment from making grants to independent labor unions.

ELIGIBILITY OF THE ENDOWMENT FOR GRANTS

Sec. 504.4 (a) Grants may be made to the Endowment under this title only if the Endowment agrees to comply with the requirements specified in this section and elsewhere in this title.

(b)(1) The Endowment may only provide funding for programs of private sector groups and may not carry out programs directly.

(2) The Endowment may provide funding only for programs which are consistent with the purposes set forth in section 502(b). (c)(1) Officers of the Endowment may not receive any salary or other compensation from any source, other than the Endowment, for services rendered during the period of their employment by the Endowment.

(2) 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 Endowment, that individual may not receive any compensation or travel expenses in connection with services performed for the Endowment.

(d)(1) The Endowment shall not issue any shares of stock or declare or pay any dividends.

(2) No part of the assets of the Endowment shall inure to the benefit of any member of the Board, any officer or employee of the Endowment, or any other individual, except as salary or reasonable compensation for services.

(e)(1) The accounts of the Endowment shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or other political subdivision of the United States. The audits shall be conducted at the place or places where the accounts of the Endowment are normally kept. All books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Endowment and necessary to facilitate the audits shall be made available to the person or persons conducting the audits; and full facilities for verifying transactions with any assets held by depositories, fiscal agents, and custodians shall be afforded to such person or persons.

(2) The report of each such independent audit shall be included in the annual report required by subsection (h). The audit report shall set forth the scope of the audit and include such statements as are necessary to present fairly the Endowment'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 Endowment's income and expenses during the year, and a statement of the application of funds, together with the independent auditor's opinion of those statements.

(f)(1) The financial transactions of the Endowment for each fiscal year may be audited by the General Accounting Office in accord

Subsec. (f) was added by sec. 212 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (Public Law 100-204; 101 Stat. 1376). 422 U.S.C. 4413.

ance with such principles and procedures and under such rules and regulations as may be prescribed by the Comptroller General, of the United States. Any such audit shall be conducted at the place or places where accounts of the Endowment are normally kept. The representatives of the General Accounting Office sha" have acces to all books, accounts, records, reports, fies, and all other papers. tangs, or property belonging to or in use by the Endowment pertaining to its financial transactions and necessary to facturate the audit; and they shall be afforded full facilities for verifying DETSHCtions with any assets held by depositories, fiscal agents, and CUSIOdiane. All such books, accounts, records, reports, fies, papers, and property of the Endowment shall remain in the possession and me tody of the Endowment.

2) A report of each such audit shall be made by the Comparale General to the Congress. The report to the Congress shall com such comments and information as the Comptroller General, may deem necessary to inform the Congress of the financial operations and condition of the Endowment, together with such recommende tions with respect thereto as he may deem advisable. The report shall also show specifically any program, expenditure, or other 5nancial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made contrary to the requirements of this the. A copy of each report shall be furnished to the President and to the Endowment at the time submitted to the Congress.

(g) The financial transactions of the Endowment for each fiscal year may also be audited by the United States Information Agency under the conditions set forth in subsection (fl

h1) The Endowment shall ensure that each recipient of assistance provided through the Endowment under this title keeps separate accounts with respect to such assistance and such records as may be reasonably necessary to fully disclose the amount and the disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, and the amount and nature of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. 7

(2) The Endowment shall ensure that it, or any of its duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance provided through the Endowment under this title. The Comptroller General of the United States or any of his duly authorized representatives shall also have access thereto for such purpose.

(i) Not later than February 31 of each year, the Endowment shall submit an annual report for the preceding fiscal year to the

•Subsec. g) was added by subsec, bv2 of sec. 210 of the Foreign Relations Authorization Act, Fiscal Years 1966 and 1987 Public Law 99-93, 99 Stat. 405.)

The phrase separate accounts with respect to such assistance" was added by sec. 211 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 Public Law 100-204, 101 Stat 13762

* Subsec: (61) of sec. 210 of Public Law 99-93 99 Stat. 405 at 432, redesignated subsecs. (g) and (h) as subsecs. (h, and (i), respectively

President for transmittal to the Congress. The report shall include a comprehensive and detailed report of the Endowment's operations, activities, financial condition, and accomplishments under this title and may include such recommendations as the Endowment deems appropriate. The Board members and officers of the Endowment shall be available to testify before appropriate committees of the Congress with respect to such report, the report of any audit made by the Comptroller General pursuant to subsection (f), or any other matter which any such committee may determine. SEC. 505. REQUIREMENTS RELATING TO THE ENDOWMENT AND ITS GRANTEES.

(a) PARTISAN POLITICS.-(1) Funds may not be expended, either by the Endowment or by any of its grantees, to finance the campaigns of candidates for public office.

(2) No funds granted by the Endowment may be used to finance activities of the Republican National Committee or the Democratic National Committee.

(3) No grants may be made to any institute, foundation, or organization engaged in partisan activities on behalf of the Republican or Democratic National Committee, on behalf of any candidate for public office, or on behalf of any political party in the United States.

(b) CONSULTATION WITH DEPARTMENT OF STATE.-The Endowment shall consult with the Department of State on any overseas program funded by the Endowment prior to the commencement of the activities of that program.

SEC. 506.10 FREEDOM OF INFORMATION.

(a) COMPLIANCE WITH FREEDOM OF INFORMATION ACT.-Notwithstanding the fact that the Endowment is not an agency or establishment of the United States Government, the Endowment shall fully comply with all of the provisions of section 552 of title 5, United States Code.

(b) PUBLICATION IN FEDERAL REGISTER.-For purposes of complying pursuant to subsection (a) with section 552(a)(1) of such title, the Endowment shall make available to the Director of the United States Information Agency such records and other information as the Director determines may be necessary for such purposes. The Director shall cause such records and other information to be published in the Federal Register.

(c) REVIEW BY USIA.—(1) In the event that the Endowment determines not to comply with a request for records under section 552, the Endowment shall submit a report to the Director of the United States Information Agency explaining the reasons for not complying with such request.

(2) If the Director approves the determination not to comply with such request, the United States Information Agency shall assume

8 Subsec. (d) of sec. 210 of Public Law 99-93 (99 Stat. 405 at 432), substituted "February 1" in lieu of "December 31".

22 U.S.C. 4414. Sec. 505 was added by sec. 210(a) of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-93; 99 Stat. 405).

10 22 U.S.C. 4415. Sec. 506 was added by sec. 210(a) of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-93; 99 Stat. 405).

full responsibility, including financial responsibility, for defending the Endowment in any litigation relating to such request.

(3) If the Director disapproves the determination not to comply with such request, the Endowment shall comply with such request.

5. Soviet-Eastern European Education and Training Programs a. Soviet-Eastern European Research and Training Act of 1983

Partial text of Public Law 98-164 [H.R. 2915], 97 Stat. 1017, at 1047, approved November 22, 1983

AN ACT To authorize appropriations for fiscal years 1984 and 1985 for the Department of State, the United States Information Agency, the Board for International Broadcasting, the Inter-American Foundation, and the Asia Foundation, to establish the National Endowment for Democracy, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE VIII-SOVIET-EASTERN EUROPEAN RESEARCH AND

TRAINING

SHORT TITLE

Sec. 801. This title may be cited as the "Soviet-Eastern European Research and Training Act of 1983".

FINDINGS AND DECLARATIONS

Sec. 802.1 The Congress finds and declares that

(1) factual knowledge, independently verified, about the Soviet Union and Eastern European countries is of the utmost importance for the national security of the United States, for the furtherance of our national interests in the conduct of foreign relations, and for the prudent management of our domestic affairs;

(2) the development and maintenance of knowledge about the Soviet Union and Eastern European countries depends upon the national capability for advanced research by highly trained and experienced specialists, available for service in and out of Government;

(3) certain essential functions are necessary to ensure the existence of that knowledge and the capability to sustain it, including

(A) graduate training;

(B) advanced research;

(C) public dissemination of research data, methods, and findings;

(D) contact and collaboration among Government and private specialists; and

122 U.S.C. 4501.