Audit of the Millennium Challenge Corporation’s Financial Statements, Internal Controls, and Compliance for the Period Ending September 30, 2008 and 2007
We recommned that MCC Management perform detailed quality control Reviews to ensure compliance with accounting standards and reporting guidance
We recommend that MCC Management review and revise written policies and procedures regarding the preparation of the financial statements and related footnote disclosures to ensure that all financial statement line items are reported accurately and properly supported, and that any adjustments are reviewed and approved before recording in the GL by NBC. Document the above processes to ensure that an audit trail is available for all line items and amounts reported.
We recommend MCC Mangement effectively coordinate with its service providers (USAID and NBC) to ensure timely and accurate receipt of final trial balance information sufficient to prepare complete financial statements in accordance with OMB Circular A-136.
We recommend that the Millennium Challenge Corporation's management review and revise its process for requesting, authorizing, and certifying its personnel actions to ensure all actions are properly authorized, documented, and retained prior to the action being processed into the personnel database.
We recommend that the Millennium Challenge Corporation management develop and adhere to all policies and procedures related to quarterly and yearend reporting to ensure that all appropriate transactions are reviewed and a determination is made as to the amounts to accrue for the current period; and the accrual amount is properly prepared, clearly documented, and supported and that it is reviewed by both the service provider, NBC, and MCC for completeness and accuracy prior to and subsequently after posting to the GL.
We recommend that the MCC Management ensure that procedures for reviewing accruals and adjustments recorded by NBC are effectively performed to ensure each is valid and has been properly recorded.
We recommend that the MCC Management require documentation to support the entry of a JV to avoid duplication of the transactions. In addition, use of a consistent naming convention when entering JVs should be required to avoid duplication.
We recommend that the MCC Management ensure that PP&E reconciliations are effectively performed each quarter and that amortization schedules are accurate and complete.