MIDDLE EAST FOUNDATION.

SEC. 2021. MIDDLE EAST FOUNDATION.(a) Purposes.—The purposes of this section are to support, through the provision of grants, technical assistance, training, and other programs, in the countries of the broader Middle East region, the expansion of—(1) civil society;(2) opportunities for political participation for all citizens;(3) protections for internationally recognized human rights, including the rights of women;(4) educational system reforms;(5) independent media;(6) policies that promote economic opportunities for citizens;(7) the rule of law; and(8) democratic processes of government.(b) Middle East Foundation.—(1) Designation.—The Secretary of State is authorized to designate an appropriate private, nonprofit organization that is organized or incorporated under the laws of the United States or of a State as the Middle East Foundation (referred to in this section as the “Foundation”).(2) Funding.—(A) Authority.—The Secretary of State is authorized to provide funding to the Foundation through the Middle East Partnership Initiative of the Department of State. Notwithstanding any other provision of law, the Foundation shall use amounts provided under this paragraph to carry out the purposes specified in subsection (a), including through making grants, using such funds as an endowment, and providing other assistance to entities to carry out programs for such purposes.(B) Funding from other sources.—In determining the amount of funding to provide to the Foundation, the Secretary of State shall take into consideration the amount of funds that the Foundation has received from sources other than the United States Government.(3) Notification to congressional committees.—The Secretary of State shall notify the appropriate congressional committees of the designation of an appropriate organization as the Foundation.(c) Grants for Projects.—(1) Foundation to make grants.—The Secretary of State shall enter into an agreement with the Foundation that requires 121 STAT. 514 the Foundation to use the funds provided under subsection (b)(2) to make grants to persons or entities (other than governments or government entities) located in the broader Middle East region or working with local partners based in the broader Middle East region to carry out projects that support the purposes specified in subsection (a).(2) Center for public policy.—Under the agreement described in paragraph (1), the Foundation may make a grant to an institution of higher education located in the broader Middle East region to create a center for public policy for the purpose of permitting scholars and professionals from the countries of the broader Middle East region and from other countries, including the United States, to carry out research, training programs, and other activities to inform public policymaking in the broader Middle East region and to promote broad economic, social, and political reform for the people of the broader Middle East region.(3) Applications for grants.—An entity seeking a grant from the Foundation under this section shall submit an application to the head of the Foundation at such time, in such manner, and containing such information as the head of the Foundation may reasonably require.(d) Private Character of the Foundation.—Nothing in this section shall be construed to—(1) make the Foundation an agency or establishment of the United States Government, or to make the officers or employees of the Foundation officers or employees of the United States for purposes of title 5, United States Code; or(2) impose any restriction on the Foundation’s acceptance of funds from private and public sources in support of its activities consistent with the purposes specified in subsection (a).(e) Limitation on Payments to Foundation Personnel.—No part of the funds provided to the Foundation under this section shall inure to the benefit of any officer or employee of the Foundation, except as salary or reasonable compensation for services.(f) Retention of Interest.—The Foundation may hold funds provided under this section in interest-bearing accounts prior to the disbursement of such funds to carry out the purposes specified in subsection (a), and may retain for such purposes any interest earned without returning such interest to the Treasury of the United States. The Foundation may retain and use such funds as an endowment to carry out the purposes specified in subsection (a).(g) Financial Accountability.—(1) Independent private audits of the foundation.—The accounts of the Foundation 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 report of the independent audit shall be included in the annual report required by subsection (h).(2) GAO audits.—The financial transactions undertaken pursuant to this section by the Foundation may be audited by the Government Accountability Office in accordance with 121 STAT. 515 such principles and procedures and under such rules and regulations as may be prescribed by the Comptroller General of the United States.(3) Audits of grant recipients.—(A) In general.—A recipient of a grant from the Foundation shall agree to permit an audit of the books and records of such recipient related to the use of the grant funds.(B) Recordkeeping.—Such recipient shall maintain appropriate books and records to facilitate an audit referred to in subparagraph (A), including—(i) separate accounts with respect to the grant funds;(ii) records that fully disclose the use of the grant funds;(iii) records describing the total cost of any project carried out using grant funds; and(iv) the amount and nature of any funds received from other sources that were combined with the grant funds to carry out a project.(h) Annual Reports.—Not later than January 31, 2008, and annually thereafter, the Foundation shall submit to the appropriate congressional committees and make available to the public a report that includes, for the fiscal year prior to the fiscal year in which the report is submitted, a comprehensive and detailed description of—(1) the operations and activities of the Foundation that were carried out using funds provided under this section;(2) grants made by the Foundation to other entities with funds provided under this section;(3) other activities of the Foundation to further the purposes specified in subsection (a); and(4) the financial condition of the Foundation.(i) Broader Middle East Region Defined.—In this section, the term “broader Middle East region” means Afghanistan, Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, West Bank and Gaza, and Yemen.(j) Repeal.—Section 534(k) of Public Law 109–102 is repealed.