AUDIT OF THE MILLENNIUM CHALLENGE CORPORATION’S MANAGEMENT OF SECTION 609(g) FUNDS

OFFICE OF INSPECTOR GENERAL for the Millennium Challenge Corporation AUDIT OF THE MILLENNIUM CHALLENGE CORPORATION’S MANAGEMENT OF SECTION 609(g) FUNDS AUDIT REPORT NO. M-000-06-002-P SEPTEMBER 28, 2006 WASHINGTON, DC 0 Office of Inspector General for the Millennium Challenge Corporation September 28, 2006 Mr. John Danilovich Chief Executive Officer Millennium Challenge Corporation 875 Fifteenth Street, N.W. Washington, DC 20005 Dear Mr. Danilovich: This letter transmits our final report on the Audit of the Millennium Challenge Corporation’s Management of Section 609(g) Funds. In finalizing the report, we considered your written comments on our draft report and included those comments in their entirety in Appendix II of this report. The report contains four audit recommendations for corrective action. Based on your response to our draft report, we consider that a management decision has been reached on each recommendation. Final action for the recommendations must be determined by the MCC, and we ask that we be notified of the MCC’s actions. I appreciate the cooperation and courtesy extended to my staff during the audit. Sincerely, /s/ John M. Phee Assistant Inspector General Millennium Challenge Corporation U.S. Agency for International Development 1300 Pennsylvania Avenue, NW Washington, DC 20523 1 www.usaid.gov CONTENTSSummary of Results ....................................................................................... ...