We contracted with the independent certified public accounting firm RMA Associates LLC to determine (1) if MCC’s internal controls for the authorization and justification for premium travel were effective in preventing waste, fraud, or abuse; (2) whether MCC’s use of premium travel was cost-effective; and (3) how MCC’s use of premium travel aligns with the corporation’s mission and Federal travel policy, and the policies and practices of the State Department and USAID.
The audit firm reported that MCC premium travel averaged a high percentage (73 percent) of total travel cost across the audited period, and that premium travel use was substantially higher at MCC (44 percent) than at the State Department (3 percent) or USAID (2 percent) in fiscal year 2019. In answering the audit objectives, the audit firm found: (1) instances during testing where internal controls for premium travel were not effective in preventing waste and abuse; (2) MCC’s use of premium travel when compared to a less expensive method of flight travel suggested opportunities to improve cost-effectiveness regarding the type of travel; and (3) MCC’s policies were in alignment with Federal Travel Regulations and the Fly America Act. The audit firm also reported three findings related to noncompliance with various travel policies and regulations.
OIG made four recommendations to address the instances of noncompliance and considers all recommendations resolved but open pending completion of planned activities.