The "Designation of Authorized Official" (DAO) is a standard document for federal (CDBG and HOME) and state (AHTF 2060) applications that declares authorization of signature for the organization. This may or may not be applicable to your organization based on your organization's Bylaws and/or Articles of Incorporation.
The DAO is typically provided when the Executive Director and/or their designee, who hold the common powers to sign on behalf of the organization, are either unavailable or otherwise need someone else to sign on behalf of the agency. A letter from the agency's executive authority (typically the Board of Directors) on letterhead attesting the authorization is acceptable for this required document.
For additional information on your organization's authorized official please refer to the 2023 Application Guidelines.