Why We Did This Audit
The Millennium Challenge Corporation (MCC) delivers assistance to partner countries through grant-funded programs that aim to achieve sustainable economic growth and poverty reduction. Millennium Challenge Accounts (MCAs)—accountable entities designated by the partner country—manage and oversee implementation of these programs. However, both MCC and the relevant MCA are responsible for monitoring and evaluating program implementation.
Agency policy directs staff to use monitoring and evaluation (M&E) data to assess the progress and quality of MCC interventions and ensure decision making remains aligned with MCC’s core value of continuous learning.
In addition, as part of its M&E approach, MCC requires country programs to produce at least one Data Quality Review (DQR)—a mechanism to review and analyze the quality and utility of performance information. According to MCC, DQRs are important parts of the M&E process and must be useful, relevant, and timely to ensure that MCC can assess and enhance program performance.
We conducted this audit to assess (1) how MCC ensured that MCAs implemented MCC-approved recommendations from DQRs and (2) the extent to which MCC used the results of DQRs to inform its continuous learning process.
What We Recommend
We made six recommendations to help MCC improve its DQR guidance, track recommendations, and assess the use of DQRs in its continuous learning process. MCC agreed with four of these recommendations and disagreed with two.
What We Found
MCC did not establish guidance for DQR recommendations, formally document and track whether recommendations were addressed, or consistently ensure that action plans were produced. While the Agency’s M&E guidance addressed aspects of the DQR process, MCC did not fully define and outline all activities for approving and tracking recommendations. The lack of a centralized method for tracking approved and implemented recommendations limited MCC’s ability to verify that issues had been appropriately addressed. MCC also required each DQR to have an action plan. However, these plans were rarely produced, further undermining the Agency’s ability to demonstrate the impact of its M&E activities. Without guidance for the recommendation approval process, a requirement to track recommendations, or enforcement of action plans, MCC’s ability to assess the effectiveness of its DQRs was limited.
MCC did not incorporate DQR results into its continuous learning process. Although the Agency analyzes some of its M&E products to identify lessons learned, it did not do so for DQRs and their recommendations across different country programs or sectors (e.g., energy, education, and agriculture). MCC also was not required to provide past DQRs to its M&E Leads, who may have been able to benefit from them or identify lessons learned. As a result, MCC may have missed opportunities to refine and strengthen its DQR model and improve evidence-based decision making within its country programs.