Can I use monetization proceeds to pay U.S. headquarter cost under the Section 416(b) program?
Under Section 416(b), which includes Global Food for Education, it is USDA policy not to allow CSs to use monetization proceeds to pay for direct U.S. headquarters expenses. USDA will continue to allow CSs to use a portion of the monetization proceeds for indirect cost recovery. 3. Q: May I sell the commodities for dollars rather than local currencies? A: All sale of U.S. commodities donated under Section 416(b) (includes Global Food Education) must be sold for foreign currencies rather than dollars. This can be a foreign (i.e., non-United States) currency other than the local currency. The CS can then convert the foreign currency proceeds within the recipient country into dollars. By the way, this does not preclude a CS from temporarily depositing some funds in dollar accounts outside the country to protect them from inflation, graft, or bank instability. If the CS anticipates having to do this, the CS should mention it in the Plan of Operation. Applicable to Food for Progress Program
