°µÍø51

FOR IMMEDIATE RELEASE

Washington, DC--°µÍø51 President Helaine M. Barnett and Board Chairman Frank S. Strickland today issued the following statement regarding the Government Accountability Office Report, °µÍø51 Governance and Accountability Practices Need To Be Modernized and Strengthened:

"We take the GAO's report on °µÍø51 governance and accountability very seriously and are moving diligently to implement the report's recommendations with regard to both governance and management."

°µÍø51 management has:

• Begun reviewing the Government Accounting Standards Board standards to determine the appropriate financial reporting standard for °µÍø51. The evaluation is expected to be completed by the end of October 2007.
• Adopted elements of a Continuity of Operations Plan program. A comprehensive program is expected to be completed during 2008.
• Established a task force to develop proposals for an °µÍø51 compliance program, which will include a comprehensive code of conduct. The goal is to have recommendations to the Board of Directors by the January 2008 Board meeting.
• Committed to improving the risk management program at °µÍø51. The Corporation has managed its risks well over the past 33 years, and will review and implement additional elements that are desirable and appropriate for an organization the size of °µÍø51.

°µÍø51's Board of Directors will:

• Ensure that new members receive orientation to familiarize them both with °µÍø51's programmatic roles and on governance and accountability.
• Continue to receive updates from management on issues having to do with °µÍø51's operating environment, governance, and accountability.
• Either create a separate Audit Committee or assign the function to the Finance Committee.
• Determine how to assign responsibility within the Board for compensation issues.
• Formalize the functions of Board committees by adopting charters for them.
• Consider adopting a formal means by which the Board can evaluate its collective performance and the performance of individual members.
• Encourage the °µÍø51 Inspector General, who is charged with contracting with °µÍø51's auditor, to require that the auditor report within 45 days of the end of the fiscal year.
• Work with management as appropriate on any risk management program, internal controls, and financial reporting.