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U.S.-Ukraine Foundation Update
U.S.-Ukraine Foundation Update, Issue 2009.15 - MAY 28, 2009

Item of the month

Doing Business in Ukraine

Discover and Travel Ukraine

Summer Work Travel Program

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Cruise Travel Show

Kyiv restaurants, Hotels, Night Clubs








To:  Friends of the U.S.-Ukraine Foundation
From:  Nadia K. McConnell, President ∙ John A. Kun, Vice President/COO
Date:   May 28, 2009

It is critically important that you – as friends and supporters of the U.S.-Ukraine Foundation – know of issues and events that impact the organization and its mission. 

In this case, we want to bring to your attention to a financial, government audit that was recently performed on the Foundation. 

In the opinion of the U.S.-Ukraine Foundation, however, this was not a typical, standard   audit and related events raise questions as to whether individual(s) in the U.S. Government were personally motivated to wield the immense resources of the Federal Government in order, at least, to bog down, harm and/or remove the Foundation from further project activities in Ukraine and, at worst, to possibly financially destroy the U.S.-Ukraine Foundation.

As you may recall, the Foundation was a recipient of a U.S. Agency for International Development (USAID) Cooperative Agreement through which the U.S.-Ukraine Community Partnerships Project was implemented in Ukraine over a 10 year period, from 1997 to 2007.  The project, originally a three-year program, was considered by many to be a highly successful technical assistance project as USAID renewed this project several times.  (Note:  In USAID circles, it is quite rare for an unsolicited proposal from a small non-profit organization to get funding, let alone to run for 10 years, if it is not a results-oriented, successful program.)

To provide a “start date” for the Foundation’s audit, it was in May 2006 when the Foundation was notified by USAID that a financial audit would be performed by the Defense Contracting Audit Agency, the same organization that audits Federal Defense contractors working in Iraq.  (USAID had actually started to request financial data from the Foundation at the end of August 2005 in order to follow-up on an on-site, limited financial management review in Ukraine conducted by USAID’s Kyiv Office of Financial Management in February 2004.)

From the start of the audit, the Foundation fully complied and supplied all information to DCAA on a timely basis.   Nevertheless, DCAA saw fit to inform the Foundation by September 2006 that “[w]e are currently utilizing an auditing approach … which entails expediting the performance of the audit ….” 

As months went by, DCAA continued to seek more and more project cost information from the Foundation, with expenses under review going into the millions of dollars.

At one point in November 2006, the audit appeared over, only to be resumed again.  More information was requested from the Foundation over the next seven months.    

In July 2007, the Foundation learned that the audit had been completed at the end of June 2007.

At the same time, there were other questionable events occurring related to the Foundation and USAID.

For example, in 2007, USAID-Kyiv was publishing its 35 page, 15th anniversary publication, 15 Years of Partnership: A Photo Retrospective, which strangely made no mention of the U.S.-Ukraine Foundation’s 10 year, $25 million U.S.-Ukraine Community Partnerships Project and its contribution to local governance in Ukraine.   

In February 2007, USAID-Kyiv conducted a Local Government Assessment, an evaluation of its local government projects which would be used to determine the direction of future local government  programming in Ukraine.   The Foundation believes this review was biased for many reasons, including the fact that major parts of the U.S.-Ukraine Community Partnerships Project were excluded from the assessment, such as  the work of the 14 U.S.-Ukraine partnerships, 24 city cluster partnerships with U.S. cities, substantial work to “indigenize” the training and sharing of “best practices” through two major publications, a monthly newsletter and a quarterly journal on local government. 
And, while the actual audit was over, the findings were still to be provided.  The Foundation would learn the findings via a 16 page report and a 2 page letter in September 2007.  In brief, disallowed and questioned costs totaled nearly $250,000 and payment from the Foundation was expected within 30 days! 

The Foundation believed that the audit was flawed and many of the findings were incorrect.  Over time, the Foundation responded to all of the findings. 

In January 2009 the USAID Inspector General forwarded a recommendation to the USAID Chief Financial Officer for closure of this audit process.  The Foundation was informed of this in March 2009.

Bottom-line:  A process of 3 years+, with an outstanding claim against USUF for $250,000, resulted in "out-of-pocket" payments to USAID of ZERO DOLLARS - $0 - .  The only finding for which USUF capitulated was an indirect cost of $758 and this cost was remedied by an on-paper transfer of indirect expenses for 2006, for an amount even less than $758.

However, the Foundation endured an ordeal which, as it indicated to USAID, was “extremely burdensome and unfair.”  The wisdom in the Government’s expending an inordinate amount of time, effort and money in auditing a small non-profit must be questioned … as well as the personal motivations of persons involved in the audit and the other transpiring events, as cited above.

We bring these events to your attention to illustrate our commitment to the “Ukraine mission” of the U.S.-Ukraine Foundation and to illustrate the importance of your on-going financial and moral support in our work.    However, we realize we have “paid a price” of our time and effort being diverted by the Federal Government and we seek your continued support.  

Thank you for your loyalty to Ukraine and the U.S.-Ukraine Foundation.

Nadia K. McConnell                                                     John A. Kun
President                                                                       Vice President/Chief Operating Officer


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Have YOU Made YOUR Contribution in 2009 as yet?
The U.S.-Ukraine Foundation needs your support!

USUF Revenue

The economic crisis has hurt us all and the U.S.-Ukraine Foundation is no exception.

This year our overall revenues are down over $120,000 or 16% from last year.  This affects our programs in public policy, economic development, education, and informational services – which are needed in Ukraine and appreciated by all. 
Every gift counts … so your participation is extremely important!

Your generosity makes a statement that you support the U.S.-Ukraine Foundation’s mission and its programs. Please help by giving generously!

It’s easy to support the Foundation … just give online at:  http://www.usukraine.org/donate.shtml.

If you would rather contribute by postal mail, please send your check to the U.S.-Ukraine Foundation, 1701 K Street NW – Suite 903, Washington, DC 20006.
As a reader of Update or BizLinks, you know of the Foundation’s work and appreciate its value to U.S.-Ukraine relations.  Your financial generosity now will help to contribute to the continuation of the Foundation’s important work in the U.S. and in Ukraine.

Your support is greatly appreciated and needed at this time!  And remember, as the U.S.-Ukraine Foundation is a 501(c)(3) organization, your gift is tax-deductible as provided by law.

Thanking you for your support!
The U.S.-Ukraine Foundation

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An agreement on scholarly collaboration between the Canadian Institute of Ukrainian Studies, University of Alberta, and the Kyiv Mohyla Academy National University (KMA) was signed in Edmonton by CIUS director Dr. Zenon Kohut and KMA president Dr. Serhii Kvit on May 4, 2009.

The agreement will promote cooperation in the fields of history, culture, and Ukrainian literature of the sixteenth to twentieth centuries.

Kyiv Mohyla Academy

Dr. Serhii Kvit (l) and Dr. Zenon Kohut (r) signing the agreement
Д-р Сергій Квіт (ліворуч) і д-р Зенон Когут (праворуч) підписують угоду

The agreement includes a project involving the study and publication of old printed texts and manuscripts, especially polemical, didactic and homiletic works of the sixteenth to eighteenth centuries; the study of literary, historical, and social aspects of contemporary Ukraine; seminars and short-term educational and research trips for undergraduate and graduate students; and the exchange of books, journals, and other literature and information.

The first project will deal with the study of Ukraine’s religious and cultural heritage.

A series of texts, including works of prominent preachers and clergymen such as Inokentii Gizel, Varlaam Yasynsky, and Stefan Yavorsky, as well as collections of occasional and thematic sermons, will be published under the title An Anthology of Seventeenth-Century Ukrainian Sermons.

A catalogue of manuscript sources will be published separately.

The project will also include a collection of scholarly essays on these texts that will address the culture, language, and stylistics of the Ukrainian sermon, the evolution of theology in Ukraine, rhetorical and ethical aspects of oratorical prose, and its philosophical and anthropological analysis.

Submitted by:
CIUS Press Service
Mykola Soroka, PhD
University of Alberta

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KGB/FSB's New Trojan Horse: Americans of Russian Descent
By Konstantin Preobrazhensky

Thursday, May 28, 2009
6:00 - 7:00 p.m.

Catholic Information Center
1501 K St. NW #175
Washington, DC 20005-1401

Konstantin Preobrazhensky, intelligence expert, former KGB officer, and author, will give a talk on his book KGB/FSB's New Trojan Horse: Americans of Russian Descent. Drawing on his firsthand experience, Preobrazhensky gives valuable insights into the state of the Catholic Church in Russia, past and present.

Preceding the talk by the author, Bruce Gnatowski will provide historical context for the book, including a history of the Vladivostok parish in the 1860's, the Vladivostok martyrs of 1938, and a view of the current state of affairs in the Russian Far East. Gnatowski willalsogive comments on Miroslava Efimova's book, Harsh Vineyard: A History of Catholic Life in the Russian Far East.

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May 30, 2009
New York, NY, USA

Ms. Korzh holds a Master's Degree in Education from the University of Illinois at Chicago, College of Education, and is presently working towards her Ed.D. at Columbia University, Teachers College

May 31, 2009
Brooklyn, NY, USA

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Deadline: June 30, 2009

The Chair of Ukrainian Studies, with the support of the Wolodymyr George Danyliw Foundation, will be holding its Fifth Annual Danyliw Research Seminar on Contemporary Ukraine at the University of Ottawa on 29-31 October 2009. The Seminar will feature research papers, touching on Ukraine, from the disciplines of political science, history, anthropology (ethnology), sociology, economics, religious studies, demography, geography and other fields of social science and humanities. Papers with a theoretical and comparative focus are particularly solicited.
The Seminar is open to all social science research topics, including topics in history. Themes addressed in previous years include regime transformation, constitutional politics, the colored revolutions, language politics, minority rights, regionalism, citizenship, the politics of energy, the study of elections, religion and society, gender, the media, and many more.

Scholars and doctoral students are invited to submit a 1000 word paper proposal and a 250 word biographical statement, by email attachment, to Dominique Arel, Chair of Ukrainian Studies, at darel@uottawa.ca. Please also include your full coordinates (institutional affiliation, preferred postal address, email, phone) and indicate your latest publication (or, in the case of doctoral applicants, the year when you entered a doctoral program, the [provisional] title of your dissertation and year of expected completion).
The proposal deadline is 30 June 2009. To be eligible, papers must not have been accepted for publication by the time of the Seminar. The Chair will cover the expenses of participants, including discussants, to the Seminar. An international selection committee will review the proposals and notify applicants shortly after the deadline.

For more information: www.ukrainianstudies.uottawa.ca

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Вельмишановні Посестри і Побратими!

До Вас звертається керівництво Міжнародної Федерації Бойового Гопака. Повідомляємо Вам радісну новину - в Україні, та не лише, достойно утвердилося козацьке лицарське мистецтво - Бойовий Гопак. За 24 роки розвитку Бойовий Гопак зарекомендував себе, як потужна система національно-патріотичного виховання та оздоровлення дітей та молоді, яка прищеплює здоровий спосіб життя, правильне мислення,а також гордість і повагу до створених українським народом звичаїв, обрядів і традицій.

Ukrainian Hopak

Бойовий Гопак зможе прославити Україну, так як це колись зробили: карате - для японців; тейквондо - для корейців; кунг-фу,у-шу, цигун - для китайців;панкратіон - для греків; сават - для французів; кікбоксинг - для американців. Віримо, що за підтримки діаспори Бойовий Гопак прославить Україну на увесь світ!

Керівництво Міжнародної Федерації Бойового Гопака запрошує бажаючих вивчати Бойовий Гопак чи стати учителями Бойового Гопака на  ІІІ – Міжнародний Навчально-Вишкільний Семінар із Бойового Гопака , що відбудеться неподалік Дніпропетровська на давній козацькій землі.

Семінар відбудеться з 15го до 30го липня 2009 року. Бажаючих отримати детальну інформацію просимо звертатися до Голови Правління Дніпропетровського обласного осередку Міжнародної Федерації Бойового Гопака – Кобзаря Ігоря Володимировича.

Контакти: +38 097 290 98 37, (Ігор Кобзар)
+38 063 974 19 94 , (Ігор Кобзар)
+38 056 716 64 53, (Ігор Кобзар)
igorkobzar@meta.ua , (Ігор Кобзар)

З повагою,
Президент Міжнародної Федерації Бойового Гопака
Володимир Пилат

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