Finding Text
Compliance and IC over Compliance
Assistance Listing Number 66.202 Environmental Protection Agency Endowment
EPA Assistance Agreement ID Number: XP989490-01-0 Dated September 30, 1999
Criteria: Per the EPA Assistance Agreement Terms and Conditions "3. Upon receiving
the grant award, the grantee will secure matching funds from the Mexican
government."
Condition Found: On September 26, 2011, the Organization obtained a match from the Instituto
Mexicano de la Propiedad Industrial “IMPI” on behalf of the Mexican
government. The match was in Mexican Peso equivalent of $5 million US
Dollars based on that day’s exchange rates published on the date of the
agreement by the Banco de Mexico in the Diario Oficial de la Federacion.
During April 2020 IMPI notified the Organization that they will no longer
provide the matching funds due to economic hardship related to covid 19.
Context: The condition noted was identified as part of our review of federal awards.
Effect: The Organization is in non-compliance with match requirements.
Cause: IMPI will no longer match the funds due to economic hardship related to
covid 19.
Questioned Cost: None
Recommendation: It is recommended the Organization seek additional contributions sourced
within Mexico. In addition, the Organization should contact the federal
awarding agency to discuss possible alternative resolutions to this finding.
Views of
Responsible
Officials
We filed a lawsuit in 2020 because the way IMPI withdrew from the
agreement was illegal, which had a favorable outcome in late 2021. We filed
a second lawsuit, that we also won, to enforce the previous lawsuit as the
funds have not been reestablished. We expect this to be resolved by the end
of March 2025.