UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
 

OFFICE OF INSPECTOR GENERAL
 

FOR THE
 

MILLENNIUM CHALLENGE CORPORATION
 

SEMIANNUAL REPORT
 

TO THE CONGRESS
 

October 1, 2007 - March 31, 2008
 
Inspector General 

HOTLINE 

OIG’s Hotline makes it easy to report allegations of fraud, 

waste, abuse, mismanagement or misconduct in programs 

and operations of the USAID, USADF, IAF, and MCC. 

Employees, contractors, program participants and the 

general public may report allegations directly by e-mail, 

telephone, or mail to: 

Phone 	1-202-712-1023

 1-800-230-6539 

E-mail 	 ig.hotline@usaid.gov
 

Mail 	USAID OIG HOTLINE

 P.O. Box 657

 Washington, DC 20044-0657 

U.S. Agency for International Development 

1300 Pennsylvania Avenue, N.W. 

Washington, D.C. 20523 

www.usaid.gov 
CONTENTS
 

Message from the Inspector General ................................................................................................v
 

Executive Summary ..............................................................................................................................1
 

Summary of Results .............................................................................................................................3
 

Strategic Goal 1: Strengthen the economy, effectiveness, and efficiency
 

of foreign assistance programs and operations ..................................................................3
 

Strategic Goal 2: Protect U.S. foreign assistance programs and operations
 

from fraud, waste, and abuse ..................................................................................................7
 

Strategic Goal 3: Continually improve OIG functions and operations ...........................9
 

Appendices - Reporting Requirements ...........................................................................................13
 

SEMIANNUAL REPORT TO THE CONGRESS iii 

 

MESSAGE FROM THE 

INSPECTOR GENERAL 

I

am pleased to present the Semiannual Report to the 

Congress for the 6-month period ending 

March 31, 2008. This report is issued in accordance 

with the requirements of the Inspector General 

Act of 1978, as amended, and specifically addresses 

our responsibilities for the Millennium Challenge 

Corporation (MCC). 

MCC is an independent Government corporation, 

established in January 2004 to strengthen and expand the 

U.S. Government’s foreign assistance programs with an 

innovative approach. That approach focuses on building 

partnerships with countries and on producing results to 

reduce poverty through economic growth. The activities 

of the corporation are based on the principle that aid 

is most effective when targeted to developing countries 

that have good governance and economic freedom and 

that invest in their people. 

Overall, the Office of Inspector General (OIG) for 

MCC issued 10 audits over the past 6 months. In this 

semiannual report, we share the highlights of our work, 

as well as comprehensive statistics and data. 

OIG is committed to assisting MCC with improving 

foreign assistance programs, which are an essential 

component of the administration’s transformational 

diplomacy goals in the advancement of sustainable 

development and global interests. 

We look forward to working with Congress, MCC, and 

our international partners to continue to improve the 

efficiency and effectiveness of U.S. foreign assistance 

programs. 

Donald A. Gambatesa
 

Inspector General
 

SEMIANNUAL REPORT TO THE CONGRESS v 

EXECUTIVE SUMMARY
 

During this reporting period, OIG completed 

audits involving the following program areas: 

Strategic Goal 1: Strengthen the economy, 

effectiveness, and efficiency of foreign 

assistance programs and operations 

Under strategic goal 1, OIG focused on audits that 

involved MCC-funded initiatives in Africa, Asia, 

Eurasia, and Latin America, as well as oversight of 

MCC’s financial accountability, internal controls, and 

procurement activities. 

Audits conducted and significant findings and 

recommendations include the following: 

• 	 Audit of MCC’s Financial Statements, Internal 

Controls, and Compliance for the Periods 

Ending September 30, 2007, and 2006. 

Although MCC financial statements were found 

to be presented fairly and in conformity with 

accounting principles, two material weaknesses 

and two instances of noncompliance were 

identified. 

• 	 Audit of MCC Programs in Madagascar. The 

goals or anticipated results of the compact in 

Madagascar are to increase incomes in rural 

areas by enhancing land security, increase 

competition in the financial sector, and increase 

investment in farms and other rural businesses. 

OIG identified several problems with oversight 

and performance reporting and made 

recommendations for improving oversight and 

guidance to field offices; revising performance 

targets; and issuing guidelines related to data 

collection, reporting, and testing for accuracy. 

• 	 Audit of Compliance with Procurement 

Requirements by MCC and Its Compact 

Countries. OIG found that MCC partially 

complied with contractor eligibility guidance. 

The audit report recommended several 

improvements related to the contractor vetting 

process, as well as a recommendation to analyze 

whether procurement operations manuals were 

cost-effective and beneficial to operations. 

• 	 Fund Accountability Statement Audit Activity. 

Audits of incurred costs were conducted for 

MCC-funded programs in Benin, Georgia, 

Honduras, Madagascar, Nicaragua, and Vanuatu. 

Except for Vanuatu, each audit contained an 

unqualified opinion. 

Strategic Goal 2: Protect U.S. foreign 

assistance programs and operations from 

fraud, waste, and abuse 

Audit activity under strategic goal 2 included MCC’s use 

of purchase cards and its management of interagency 

agreements. Audits conducted and significant findings 

and recommendations include the following: 

• 	 Audit of MCC’s Use of Purchase Cards. OIG 

conducted an audit to determine whether MCC 

had established controls and properly managed 

the use of its purchase cards and found that 

overall it had done so. However, OIG did 

identify several areas where MCC could improve 

its purchase card controls, such as obtaining 

waivers for State and local taxes on purchases 

and ensuring that staff training requirements are 

met. 

• 	 Audit of MCC’s Management of Its Interagency 

Agreements. OIG is currently conducting 

an audit of MCC’s overall management of 

its interagency agreements, including internal 

controls, roles and responsibilities, and 

training operations. The audit is reviewing 

MCC practices to ensure compliance with 

Governmentwide standards related to the 

management of interagency contracting. 

SEMIANNUAL REPORT TO THE CONGRESS 1 
Strategic Goal 3: Continually improve OIG 

functions and operations 

Under strategic goal 3, OIG continues to improve its 

management information systems, having implemented a 

new Criminal Law Enforcement Records System during 

this reporting period. 

This system will improve efficiencies by (1) allowing 

domestic and overseas users to access real-time 

information and to produce ad hoc reports; 

(2) automating case data for all administrative, civil, and 

criminal investigations; and (3) providing for possible 

future integration of systems. 

 2 SEMIANNUAL REPORT TO THE CONGRESS 
SUMMARY OF RESULTS
 

Strategic Goal 1: 

Strengthen the economy, effectiveness, and efficiency of foreign assistance programs 

and operations 

MCC programs are defined as high-risk 

because they are evolving quickly in foreign 

environments and are disbursing funds under 

the direction of local recipient organizations that have 

little or no experience managing funds in compliance 

with U.S. Government standards. The Inspector 

General for MCC has placed a high priority on compact 

programs1

 in order to have the greatest impact on 

strengthening MCC’s foreign assistance programs in 

their early stages of implementation. Improvements 

to programs identified from early compact audits are 

often used as models to enhance effectiveness in other 

programs. 

Some audits, such as the Financial Statement Audit 

required by the Government Performance and Results 

Act, provide accountability in the administration of 

U.S. taxpayer funded programs with the purpose of 

testing economy, effectiveness, and efficiency in MCC’s 

operations. 

Audit of MCC’s Financial Statements, Internal 

Controls, and Compliance for the Periods 

Ending September 30, 2007, and 20062 

OIG conducted an audit of MCC’s financial 

statements, internal controls, and compliance 

with law and regulations for the periods ending 

September 30, 2007, and 2006. The audit found that 

MCC’s financial statements are presented fairly in all 

material respects, and in conformity with generally 

accepted U.S. Government accounting principles. 

However, with respect to MCC’s internal controls over 

financial reporting and its operations, the audit disclosed 

two matters that OIG considers to be significant 

deficiencies, which are noted as material weaknesses: 

(1) MCC did not fully comply with the Federal Financial 

Management Improvement Act, and (2) it lacks written 

policies and procedures related to financial reporting, 

accountability, and document control. 

Tests of compliance with certain laws, regulations, 

contracts, and grant agreements disclosed two instances 

in which MCC did not comply fully with Federal 

Financial Management Improvement Act or the Federal 

Information Security Management Act. Both were 

instances of material noncompliance. 

Audit of MCC Programs in Madagascar 

Madagascar was the first country to receive a compact, 

signing a 4-year, $110 million agreement. The goal of 

the compact was to increase incomes in rural areas by 

enhancing land security, competition in the financial 

sector, and investment in farms and other rural 

businesses. The Government of Madagascar designated 

the Millennium Challenge Account (MCA)–Madagascar 

as the entity that would have the legal authority to 

oversee the implementation of the compact programs 

during the agreed-upon period. 

To track the progress of each project, MCA-Madagascar 

and MCC prepared a monitoring and evaluation plan 

and a work plan to establish indicators, targets, and 

milestones by which they could compare the results and 

measure achievements. 

1.	 A compact is a multiyear grant agreement between MCC and an eligible country to fund specific programs targeted at reducing poverty and stimulating 

economic growth. 

2.	 Audit report number M-000-08-001-C, issued November 9, 2007. 

SEMIANNUAL REPORT TO THE CONGRESS 3 
The audit reached the following conclusions: 

• 	 MCC provided limited oversight to ensure that 

MCA-Madagascar and the four field offices 

visited by the audit team fully understood the 

importance of a consistent data collection 

methods and the definition of the project 

indicators in the monitoring and evaluation plan. 

• 	 Initial key activities in MCA-Madagascar’s 

programs took longer to accomplish than 

originally anticipated. These delays now 

hinder MCA-Madagascar from achieving its 

performance milestones and targets. 

• 	 Reporting to MCA-Madagascar’s stakeholders 

did not always provide complete and accurate 

information of the achieved results of the 

compact programs in Madagascar. 

The report contained five recommendations to MCC 

to address the program implementation findings: 

(1) Develop guidelines that will enable the MCA staff to 

provide more oversight and guidance to its field offices; 

(2) reassess and revise targets for the finance project and 

document the new targets in a revised monitoring and 

evaluation plan by March 31, 2008; (3) issue guidelines 

that describe how the MCA office should document 

the collection of data, report the data, and verify 

project indicators to its field staff before the project 

implementation phase; (4) issue guidance on how the 

MCA offices should verify prior data before importing 

them into a new database system and how MCC staff 

should test the accuracy of the data during site visits; 

and (5) disclose the effective date of the information 

being used in reports to stakeholders. 

(Audit Report No. M-000-08-001-P) 

Audit of Compliance with Procurement 

Requirements by MCC and Its Compact 

Countries 

The MCAs for Armenia, Ghana, and Honduras 

represent grants of approximately $236 million, 

$547 million, and $215 million, respectively, to these 

countries to increase economic growth and reduce 

poverty. Many of these funds are expended by the 

MCAs on contracts for goods and services, and MCA 

procurement operations must function according to the 

requirements set forth by MCC. Compliance with MCC 

standards for determining eligibility to receive contract 

funds is an important safeguard in preventing fraud and 

corruption. Compliance also prevents funds from being 

awarded to contractors that have known ties to terrorist 

organizations. OIG conducted this audit to determine 

whether MCC and its compact countries complied with 

MCC procurement requirements. 

The audit found that the three MCAs complied with 

selected key procurement provisions from MCC’s 

program procurement guidelines by advertising 

bidding opportunities, issuing requests for proposals, 

conducting independent evaluation of the proposals, and 

documenting contracting actions. However, although 

each of the MCAs was aware of MCC contractor 

eligibility guidance, the MCAs only partially complied 

with the guidance. Also, at the time of audit, MCC 

did not have in place comprehensive written policies 

and procedures for the MCAs to determine contractor 

eligibility. As a result, MCC cannot be assured that the 

MCAs are awarding contracts only to eligible parties. 

 4 SEMIANNUAL REPORT TO THE CONGRESS 
Photograph of the Armenia Road Project, which is in the process of 

procuring services to pave roads such as the local roads visited by OIG 

auditors. 

The report contained five recommendations, which 

included developing policies, procurement procedures, 

and other guidelines to improve adherence to and 

monitoring of the contractor vetting process. Another 

recommendation involved an analysis of whether 

procurement operations manuals provide benefit in 

terms of operational controls, user necessity, and 

succession planning and whether the documents should 

be required by MCA implementing entities. 

(Audit Report No. M-000-008-02-P) 

New Procedures for Managing 

Recommendations Arising from Financial 

Audits of Compacts 

MCC and OIG established revised practices for issuing 

and resolving procedural recommendations arising from 

fund accountability statement audits. Using the new 

procedures, management decisions and final actions were 

reached on 18 outstanding recommendations. 

MCC requires financial audits, or fund accountability 

statement audits, at least annually of all of its compact 

programs; however, most of the financial audits are 

conducted semiannually. These audits are conducted by 

local audit firms approved by OIG. OIG supervises the 

audits and issues the final audit with recommendations 

addressed to MCC. MCC must then obtain from the 

recipient country an action plan designed to correct the 

internal control and compliance deficiencies identified in 

the audit reports. 

Photograph of a road-paving project in Armenia that is in the early 


stages of procurement.
 

The results of these audits assist MCC in monitoring its 

assistance program. When an audit identifies questioned 

costs, OIG will recommend that MCC make a 

management decision on the questioned costs. For costs 

MCC determines to be unallowable, MCC must request 

and verify that the government of the recipient country 

return the funds to the MCC-funded program. 

As of March 31, 2008, OIG had issued 15 fund 

accountability statement audit reports, 6 during this 

reporting period. All recommendations issued in fiscal 

year 2007 are closed, and $21,835 in questioned costs has 

been resolved. 

Fund Accountability Statement Audits 

During the reporting period, audits of incurred costs 

were issued for MCC-funded programs in Benin, 

Georgia, Honduras, Madagascar, Nicaragua, and 

Vanuatu. Except for Vanuatu, each audit contained an 

unqualified opinion. OIG issued no recommendations 

in its audits of compacts with Honduras, Madagascar, 

and Vanuatu. 

SEMIANNUAL REPORT TO THE CONGRESS 5 
 

Benin 

The latest audit covered incurred costs of $1,678,694 

of the $307 million grant. The auditors identified two 

significant deficiencies, one of which is considered 

a material weakness in the internal control structure. 

In addition, the auditors identified multiple material 

instances of noncompliance. OIG issued two 

recommendations. MCC took final corrective action 

for one recommendation during the current reporting 

period. The other recommendation, related to 

noncompliance issues, remains outstanding. 

(Audit Report No. M-000-08-004-N) 

Georgia 

The audit covered $12,700,446 in incurred costs of 

a $295.3 million compact. The audit contained one 

recommendation to address several findings regarding 

internal control deficiencies in the area of posting of 

transactions and accounting software. 

(Audit Report No. M-000-08-001-N) 

Nicaragua 

OIG issued its second audit of the compact with 

Nicaragua on February 23, 2008, covering incurred costs 

of $3,254,232 of a $175 million compact. No material 

weaknesses were identified. The audit identified one 

internal control deficiency that was still outstanding at 

the close of the reporting period concerning the need 

for additional documentation. 

(Audit Report No. M-000-08-006-N) 

SUMMARY OF FUND ACCOUNTABILITY STATEMENT OPINIONS
 

FOR 6 MONTHS ENDING MARCH 31, 2008
 

Country 

Value of Compact/ 

Length of Compact 

Date of Most 

Recent Audit 

Auditor’s 

Opinion 

Georgia
 $295.3 million/5-year
 October 18, 2007
 Unqualified
 

Honduras $215 million/5-year October 31, 2007 Unqualified 

Madagascar $110 million/4-year November 15, 2007 Unqualified 

Benin $307 million/5-year December 12, 2007 Unqualified 

Vanuatu $69.65 million/5-year January 7, 2008 Qualified3 

Nicaragua $175 million/5-year February 22, 2008 Unqualified 

3. This opinion was qualified because the audit firm did not meet two auditing standards which did not affect the audit report. 

 6 SEMIANNUAL REPORT TO THE CONGRESS 
Strategic Goal 2: 

Protect U.S. foreign assistance programs from fraud, waste, and abuse 

Another OIG responsibility is to prevent and 

detect fraud and abuse in MCC programs and 

operations. Through the conduct of audits 

and investigations, as well as training and outreach, 

OIG identifies and addresses any vulnerabilities and 

integrity concerns that place MCC programs at risk. The 

following examples demonstrate how OIG reduces U.S. 

foreign assistance programs’ exposure to fraud, waste, 

and abuse. 

Audit of MCC’s Use of Purchase Cards 

OIG conducted an audit to determine whether the MCC 

established controls and properly managed the use of its 

purchase cards. 

The audit noted that overall, MCC had established 

controls and properly managed the use of its 

purchase cards by publishing a purchase card program 

manual, assigning duties for the approving officials 

and cardholders, requiring all cardholders to record 

all purchases on a purchase card log, and requiring 

cardholders and approving officials to reconcile their 

monthly statements. However, OIG identified certain 

areas where MCC could improve its overall purchase 

card controls, such as by obtaining waivers for State and 

local sales tax on purchases and meeting staff training 

requirements. There were no recommendations in the 

report, as MCC had taken corrective action during the 

audit to resolve the issues identified by the auditors. 

OIG Conducts Fraud Awareness Training and 

Financial Audit Briefings 

As part of its proactive strategy, the OIG conducts fraud 

awareness training and financial audit briefings. The 

fraud awareness training alerts personnel to fraudulent 

schemes and practices so that they can prevent or reduce 

fraud in MCC programs and operations. In addition, 

the OIG promotes its hotline and advises attendees of 

methods and procedures to report potential fraud, waste, 

or abuse. 

MCC’s compacts, as well as various laws and regulations, 

define the types of costs that can be charged in 

support of its programs. To increase awareness and 

compliance with cost principles, OIG conducts financial 

management training for independent audit firms 

and others. The training provides a general overview 

of MCA and contractor cost principles, and audit 

requirements. It also provides examples of concepts 

such as allowability, allocabilty and reasonableness of 

costs. 

The following table is a summary of fraud awareness 

and financial audit briefings conducted during this 

reporting period. 

SEMIANNUAL REPORT TO THE CONGRESS 7 
FRAUD AWARENESS AND FINANCIAL AUDIT BRIEFINGS
 

CONDUCTED WORLDWIDE
 

AS OF MARCH 31, 2008
 

Month Location Sessions Attendees Briefing* Professional Affiliation 

OCT Nothing to Report 

NOV Nothing to Report 

DEC Bamako, Mali 1 37 FR MCC Personnel 

JAN San Salvador, El Salvador 3 258 FR MCC Personnel 

FEB Cotonou, Benin 

Antananarivo, Madagascar 

1 

4 

100 

130 

FR 

FR 

MCC Personnel 

MCC Personnel 

MAR Ulaanbaatar, Mongolia 

Ouagadougou, Burkina Faso 

1 

1 

40 

25 

FI and FR 

FI and FR 

Mongolia Institute of Certified Public 

Accountants 

MCA-Mongolia Fiscal Agent 

8 Private Audit Firms 

MCA Personnel 

5 Private Audit Firms 

MCA Personnel 

TOTAL 11 590 

* FI – Financial Audit Briefing 

* FR – Fraud Awareness Briefing 

 8 SEMIANNUAL REPORT TO THE CONGRESS 
Strategic Goal 3: 

Continually improve OIG functions and operations 

I

nternal OIG readiness is essential in order to realize 

effective results in terms of OIG’s commitment to 

strengthen the efficiency, economy, and effectiveness 

of MCC’s programs and operations and to protect 

them from fraud, waste, and abuse. It requires constant 

attention to and improvement of OIG’s infrastructure to 

provide an organizational foundation that reduces risk to 

OIG staff security, systems, and, ultimately, effectiveness. 

Critical management systems include those related to 

staff and organizational competency and performance 

and information management. 

EMPLOYEE SECURITY 

OIG Position Sensitivity and Risk Review 

During this reporting period, OIG completed an internal 

review of position sensitivity and public trust risk level 

requirements for all U.S. direct hire positions. The 

objectives of the review was to (a) ensure compliance 

with Executive Order 12968, which requires that the 

number of employees eligible for access to classified 

information shall be kept to the minimum required 

for the conduct of agency functions; and (b) ensure 

compliance with 5 C.F.R. 731, which requires all 

competitive service positions to be designated at a risk 

level consistent with its potential for adverse impact to 

the integrity and efficiency of the service. 

The review resulted in the identification of specific 

key positions requiring high-level security clearances 

and a significant reduction in the level of security 

clearance requirements for OIG positions overall. 

On April 1, 2008, the Inspector General formally 

approved OIG position sensitivity and public trust 

level designations as a result of this review, and action 

is being taken accordingly. Though the primary 

benefit of this review is the reduced risk of security 

infractions associated with a highly cleared workforce, 

personnel security cost reductions and more timely staff 

recruitment and placement are expected. 

EFFICIENCY THROUGH AUTOMATION 

Significant automation efforts undertaken to make 

the audit and investigative processes more efficient is 

described below. 

Criminal Law Enforcement Records System 

(CLERS) 

On March 1, 2008, OIG launched its paperless, 

computerized Criminal Law Enforcement Records 

System (CLERS), a Web-based case file management 

system used to store and process all case-related 

information and statistics in connection with OIG 

investigations. When fully operational, investigators 

will be afforded access to case data generated prior to 

the implementation of CLERS that may be relevant to 

ongoing investigations. 

SEMIANNUAL REPORT TO THE CONGRESS 9 

A 

P 

P 

REPORTING E

REQUIREMENTS N 

D 

I 

C 

E 

S 

11 

FINANCIAL AUDIT REPORTS ISSUED
 

October 1, 2007 through March 31, 2008
 

Report 

Number 

Date of 

Report Report Title 

Amount of 

Findings 

($000s) 

Type of 

Findings 

--PROGRAMS AND OPERATIONS-­

M-000-08-001-C 11/09/07 Audit of the MCC’s Financial Statements Internal Controls, and 

Compliance for the Period Ending September 30, 2007 and 2008 

--FOREIGN GOVERNMENT ENTITIES-­

M-000-08-001-N 10/18/2007 Audit of the MCC Resources Managed by the Millennium Challenge 

Georgia Fund, (MCG), under the Compact Agreement Between the 

MCC and the Government of Georgia for the Period from 

January 1, 2007 to June 30, 2007 

M-000-08-002-N 10/31/2007 Audit of the MCC Resources Managed by the Millennium Challenge 

Account -Honduras (MCA-Honduras) Under the Compact 

Agreement Between the MCC and the Government of Honduras 

for the Period from January 1, 2007 to June 30, 2007 

M-000-08-003-N 11/15/2007 Audit of the Millennium Challenge Corporation (MCC) Resources 

Managed by Millennium Challenge Account - Madagascar (MCAMadagascar), Under the Compact Agreement between the MCC and 

the Government of Republic of Madagascar from January 1, 2007 to 

June 30, 2007 

M-000-08-004-N 12/12/2007 Audit of the Millennium Challenge Corporation (MCC) Resources 

Managed by Millennium Challenge Account - Benin (MCA-Benin), 

Under the Compact Agreement between the MCC and the 

Government of Republic of Benin from January 1, 2007 to 

June 30, 2007 

M-000-08-005-N 01/7/2008 Audit of the MCC Resources Managed by the Millennium Challenge 

Account-Vanuatu (MCA-Vanuatu), under the Compact Agreement 

Between the MCC and the Government of Vanuatu from 

April 28, 2006 to December 2006 

M-000-08-006-N 02/22/2008 Audit of the MCC Resources Managed by the Millennium Challenge 

Account-Nicaragua (MCA-Nicaragua), under the Compact 

Agreement Between the MCC and the Government of Nicaragua 

from January 1, 2007 to June 30, 2007 

BU--Better Use of Funds 

QC--Questioned Costs 

UN--Unsupported Costs 

Note: UN is part of QC 

Appendix A SEMIANNUAL REPORT TO THE CONGRESS 13 
PERFORMANCE AUDIT REPORTS ISSUED
 

October 1, 2007 through March 31, 2008
 

Report Number 

Date of 

Report Report Title 

Amount of 

Finding

 ($000s) 

Type of 

Findings 

M-000-08-001-P 12/28/07 Audit of the MCC Programs in Madagascar 

M-000-08-002-P 03/03/08 Audit of Compliance with Procurement Requirements by the 

MCC and its Compact 

Countries 

M-000-08-002-P 03/27/08 Audit of the MCC’s Use of Purchase Cards 

BU--Better Use of Funds
 

QC--Questioned Costs
 

UN--Unsupported Costs
 

Note: UN is part of QC
 

 14 SEMIANNUAL REPORT TO THE CONGRESS Appendix A 
MISCELLANEOUS AUDIT REPORTS ISSUED
 

October 1, 2007 through March 31, 2008
 

Report Number 

Date of 

Report Report Title 

Amount of 

Findings 

($000s) 

Type of 

Findings 

NOTHING TO REPORT
 

Appendix A SEMIANNUAL REPORT TO THE CONGRESS 15 
AUDIT REPORTS OVER SIX MONTHS OLD
 

WITH NO MANAGEMENT DECISION
 

As of March 31, 2008
 

Report Number Auditee Issue Date Current Recommendation Status 

Desired 

Decision 

Target Date 

NOTHING TO REPORT
 

 16 SEMIANNUAL REPORT TO THE CONGRESS Appendix B 
SIGNIFICANT AUDIT RECOMMENDATIONS
 

DESCRIBED IN PREVIOUS SEMIANNUAL
 

REPORTS WITHOUT FINAL ACTION 


As of March 31, 2008
 

Management Final Action 

Report Recommendation Issue Decision Target 

Number Subject of Report Number Date Date Date 

M-000-05-003-P Audit of the Millennium Challenge 

Corporation’s Compliance with Provisions of 

the Federal Information Security Management 

Act of 2002 

3 

Re-opened for the 

second time 

06/20/05 9/28/07 6/08 

8 04/07 06/08 

M-000-06-001-C Audit of the Millennium Challenge 

Corporation’s Financial Statements, Internal 

Controls, and Compliance for the Period 

Ending September 30, 2005 and the Nine 

Month Period Ending September 30, 2004 

5.2 12/06/05 12/06/05 10/10 

M-000-06-001-S Review of the Millennium Challenge 3 05/16/06 05/16/06 05/08 

Corporation’s Progress in Achieving Its 

Planned Organizational Structure and 

4 05/16/06 10/10 

Beginning Its Assistance Programs 

M-000-06-003-P Audit of the MCC’s Compliance with the 1 09/29/06 09/29/06 9/08 

Provisions of the Federal Information Security 

Management Act of 2002 for Fiscal Year 2006 

M-000-07-001-P Audit of the MCC’s Due Diligence Review 

Process Leading to Compact Awards 

1 03/02/07 3/2/2007 5/08 

M-000-07-002-P Audit of the MCC’s Management of its 

Conditions Precedent in Its Compact 

Agreements 

1 

2 

3 

07/26/07 7/26/07 

7/26/07 

7/26/07 

07/08 

07/08 

07/08 

M-000-07-004-P Audit of the MCC’s Compliance with the 

Provisions of the Federal Information Security 

Management Act for Fiscal Year 2007 

1 

2 

3 

09/28/07 9/28/07 

9/28/07 

9/28/07 

9/08 

5/08 

5/08 

Appendix C SEMIANNUAL REPORT TO THE CONGRESS 17 
 

REPORTS ISSUED WITH QUESTIONED
 

AND UNSUPPORTED COSTS
 

October 1, 2007 through March 31, 2008
 

Reports 

Number 

of Audit 

Reports 

Questioned 

Costs 

Unsupported 

Costs* 

A. For which no management decision had been made as of 

October 1, 2007 

0 $ 21,835 $7,083 

B. Add: Reports issued October 1, 2007 through March 31, 

2008 

2 $ 0 $0 

Subtotal $ 21,835 $7,083 

C. Less: Reports with a management decision made 

October 1, 2007 through March 31, 2008 

0 $ 21,835 $7,083 

i. Value of Recommendations Disallowed by Agency 

Officials 

0 $0 $0 

ii. Value of Recommendations Allowed by Agency Officials 0 $ 21,835 $7,083 

D. For which no management decision had been made as of 

March 31, 2008 

0 $0 $0 

* Unsupported Costs are included in Questioned Costs, but are provided as additional information as required by the Inspector 

General Act Amendments of 1988 (P.L. 100-504). 

 18 SEMIANNUAL REPORT TO THE CONGRESS Appendix D 
REPORTS ISSUED WITH RECOMMENDATIONS
 

THAT FUNDS BE PUT TO BETTER USE
 

October 1, 2007 through March 31, 2008
 

Reports 

Number of 

Audit Reports Dollar Value 

NOTHING TO REPORT
 

Appendix E SEMIANNUAL REPORT TO THE CONGRESS 19 


U.S.Agency for International Development 


Office of Inspector General
 

for the
 

Millennium Challenge Corporation 


1300 Pennsylvania Avenue, NW
 

Room 6.6D 


Washington, DC 20523
 

www.usaid.gov/oig 

The Semiannual Report to the Congress is available on the Internet at 


www.usaid.gov/oig/public/semiann/mcc1.htm