Audit of MCC's Fiscal Years 2018 and 2017 Financial Statements

Recommendations

Recommendation 1

MCC's Department of Administration and Finance and the Chief Financial Officer update the "Expense Accruals Financial Management Division Procedure Manual" to reflect the current grant accrual methodology.

Questioned Cost:
$0
Recommendation 2

MCC's Department of Administration and Finance and the Chief Financial Officer provide Millennium Challenge Accounts with written guidance on developing grant accrual estimates to ensure validity of the grant accruals estimate. The guidance should include, but not be limited to, the following: 1) Take into consideration the impact of contract advances and retentions for large works contracts in the accrual estimate. 2) Ensure that accrual estimates do not include costs that will not be paid with compact funds. 3) Consider historical questioned costs for contracts and grants that are significant in developing the accrual estimate.

Questioned Cost:
$0
Recommendation 3

MCC's Department of Administration and Finance and the Chief Financial Officer update the "Compact Grant Accrual Validation Data Call Desktop Manual" to include a time requirement for MCC to perform followup with Millennium Challenge Accounts so that errors in accrual estimates or validations are promptly identified and addressed.

Questioned Cost:
$0
Recommendation 4

MCC's Department of Administration and Finance and the Chief Financial Officer provide Millennium Challenge Accounts with written guidance to ensure that the Millennium Challenge Accounts perform grant accrual validation correctly to include, but not be limited to, validation of consultant contract costs.

Questioned Cost:
$0
Recommendation 5

MCC's Department of Administration and Finance and the Chief Financial Officer develop clear and complete written guidance for the Millennium Challenge Accounts' internal control over the data call process, provide effective training, and monitor the effectiveness of the internal control.

Questioned Cost:
$0
Recommendation 6

MCC's Department of Administration and Finance and the Chief Financial Officer develop, document, and implement a process to oversee and verify that the accountable Government entities conduct pre-Millennium Challenge Accounts compact procurements in accordance with the compact agreement and the Program Procurement Guidelines.

Questioned Cost:
$0
Recommendation 7

MCC's Department of Administration and Finance and the Chief Financial Officer update MCC's Program Procurement Guidelines to require the Millennium Challenge Accounts to document alternative procurement procedures so that all parties are aware of what is required, who is accountable for what, and how the procurement will be documented.

Questioned Cost:
$0
Recommendation 8

MCC's Department of Administration and Finance and the Chief Financial Officer develop, document, and implement policies and procedures for MCC's management oversight of transfer and retention of pre-Millennium Challenge Accounts compact procurement and related documents to the Millennium Challenge Accounts.

Questioned Cost:
$0
Recommendation 9

MCC's Department of Administration and Finance and the Chief Financial Officer inform the Millennium Challenge Accounts that the U.S. State Department’s Terrorist Exclusion List should be documented separately, for all currently active awards and future awards, and update MCC’s vendor eligibility verification guidance provided to the Millennium Challenge Accounts for completeness and accuracy.

Questioned Cost:
$0
Recommendation 10

MCC's Department of Administration and Finance and the Chief Financial Officer Identify the Millennium Challenge Accounts who are late with the vendor invoice payments, determine the reasons/causes for late payments, implement corrective actions, and monitor effectiveness of the corrective actions.

Questioned Cost:
$0