Program &1 does not exist

What causes this issue?

The system is trying to use a sponsored program that does not exist.
This might be a problem within the master data or within the derivation
process.
Most commonly, the sponsored program is derived from other account
assignments (such as the cost center, funded program, or functional
area) using the <DS:TRAN.GMDERIVE>Grants Management Derivation Tool </>.
Make sure that the derived sponsored class exists in the system and if
not, create it with transaction <DS:TRAN.GMPROGRAM>Create Sponsored
Program</>

System Response

Posting cannot proceed.

How to fix this error?

Check your derivation strategies or create the sponsored class.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.