Why We Did This Audit
- The Government Management Reform Act of 1994 requires annual audits of the financial statements for the agencies we oversee.
- We contracted with the independent certified public accounting firm of RMA Associates LLC (RMA) to conduct an audit of MCC’s financial statements for fiscal years 2022 and 2021.
- The audit objectives were to: (1) express an opinion on whether the financial statements as of September 30, 2022 and 2021, were presented fairly, in all material respects; (2) evaluate MCC’s internal control over financial reporting; and (3) determine whether MCC complied with applicable laws, regulations, contracts, and grant agreements.
What We Found
- RMA concluded that MCC’s financial statements are presented fairly, in all material respects, and in conformity with U.S. generally accepted accounting principles.
- The audit firm found no material weaknesses in internal control over financial reporting but reported one significant deficiency related to MCC oversight during Millennium Challenge Accounts’ (MCA) closure activities that needs improvement.
- The audit firm found no reportable noncompliance for fiscal year 2022 with applicable laws, regulations, contracts, and grant agreements.
- We made six recommendations to address the significant deficiency. MCC agreed with our recommendations.
Why It Matters
- These audits help ensure a more effective, efficient, and responsive government, in line with the Act. They provide a window into the financial conditions, internal control over financial reporting, and compliance of federal agencies like MCC. The audits also present an opportunity to recommend improvements, as needed.