Audit of the Millennium Challenge Corporation’s Financial Statements, Internal Controls, and Compliance for the Fiscal Years Ending September 30, 2015, and 2014
We recommend that MCC's Department of Administration and Finance perform a more comprehensive review of advances by comparing MCA advances reported to MCC to the source data maintained by the fiscal agent.
We recommend that MCC's Department of Administration and Finance employ substantive fluctuation and trend analyses of the advances account and promptly investigate unusual fluctuation and trends.
We recommend that MCC enhance its Expense Accruals Financial Management Division Procedure Manual to:
a. Define the criteria for when the assumption that MCC's maximum liability being equivalent to unused spending authority at the end of the quarter is not valid and why.
b. Fully address the MCA confirmation process and how it is carried out and documented.
c. Incorporate the desk procedures so that the procedures are formally reviewed and approved
d. Address how a grant accrual estimate provided by an MCA should be evaluated
to determine if it is reasonable.
e. Establish a procedure to ensure that MCC provides an MCA with sufficient time to address MCC's request to assess the reasonableness of the MCC calculated grant accrual for an MCA.
f Formalize the guidance provided to an MCA on what supporting documentation should be provided to address the reasonableness of the MCC calculated grant accrual for an MCA or providing an accrual estimate for an MCA to MCC.
We repeat the prior years' recommendation that MCC's Department of Administration and Finance continue to investigate and correct the root
causes for the system limitations or problems that prevent or delay the recording,
processing, and summarizing of accounting transactions.