Audit of the Millennium Challenge Corporation's Fiscal Year 2015 Compliance with the Improper Payments Elimination and Recovery Act of 2010

The audit concluded that MCC did not comply with IPERA in fiscal year 2015. The audit identified two findings and eight recommendations to strengthen MCC's internal controls over improper payments. The recommendations included requiring MCC staff and contractors to take training on IPERA requirements, conducting an IPERA risk assessment for fiscal year 2016, and using current Office of Management and Budget guidance to conduct the risk assessment and report on it in the Agency Financial Report. MCC agreed with all eight recommendations, and the Office of Inspector General acknowledged management decisions on all eight. However, the Office of Inspector General disagreed with part of MCC's decision on Recommendation 1, stating that non-personal services contractors should also receive training on IPERA requirements. The audit also evaluated the accuracy and completeness of MCC's reporting and performance in reducing and recapturing improper payments. The audit performance period was from December 2015 to March 2016. The audit concluded that MCC was not in compliance with IPERA for fiscal year 2015 and identified opportunities to strengthen MCC's internal and compliance controls over improper payments. The Improper Payments Information Act (IPIA) of 2002, as amended by IPERA of 2010 and IPERIA of 2012, requires the Inspector General of each agency to determine whether the agency is in compliance with IPIA and submit a report on that determination annually. Under IPERA, each agency shall establish and maintain internal controls to prevent and detect improper payments, and shall report on the accuracy and completeness of its reporting and performance in reducing and recapturing improper payments. The audit report included detailed information on MCC's non-compliance with Part II.A.3 of Office of Management and Budget Memorandum M-15-02, which requires agencies to establish and maintain internal controls to prevent and detect improper payments. The report also included findings and recommendations to strengthen MCC's internal and compliance controls over improper payments. The audit was performed by CliftonLarsonAllen LLP, an independent certified public accounting firm, on behalf of the United States Agency for International Development Office of Inspector General. The audit performance period was from December 2015 to March 2016. The audit concluded that MCC was not in compliance with IPERA for fiscal year 2015 and identified opportunities to strengthen MCC's internal and compliance controls over improper payments. The Office of Inspector General acknowledged management decisions on all eight recommendations and will track MCC's implementation of these recommendations. The audit report included detailed information on MCC's non-compliance with IPERA and identified opportunities to strengthen MCC's internal and compliance controls over improper payments.