Audit of the Millennium Challenge Corporation’s Program in Honduras

We recommend that the Millennium Challenge Corporation's vice president, Department of Compact Implementation, revise the two indicators-percentage of MCA-Honduras loan portfolio at risk and funds lent from MCA-Honduras to financial institutions-to reflect MCC's and MCA-H's revision of the Farmers Access to Credit activity.

We recommend that the Millennium Challenge Corporation's vice president, Department of Compact Implementation, analyze the Rural Development Project, Farmer Training and Development Activity to explain what contributed to the increased income of beneficiaries and document the analysis.

We recommend that the Millennium Challenge Corporation's vice president, Department of Compact Implementation, develop a strategy to resolve budget shortfalls when they occur.

We recommend that the Millennium Challenge Corporation's vice president, Department of Compact Implementation, clarify MCC's expectations on roles and responsibilities of the MCA Monitoring and Evaluation function, specifically on the use of monitoring as a management tool.

We recommend that the Millennium Challenge Corporation's vice president, Department of Compact Implementation, issue guidance by December 31, 2008 on reporting requirements for performance deviations from the targets established in its Monitoring and Evaluation Plans.