In addition to our recommendations, we concluded on the two specific questions asked by 

 the PL/PW Advisory Council. While our audit conclusions were that MBO was not 

 meeting legislative intent and statutory requirements, actions taken to date indicate a 

 reversal of this opinion. MBO has implemented a system for tracking NCHU activity, 

 and has established procedures for ongoing monitoring to ensure up-to-date information 

 is maintained. In addition, two PL/PW council members praised MBO for the dramatic 

 change and significant improvement in operations. As a result, we conclude MBO has 

 implemented our audit recommendations and the audit should be closed. 



lCR:I:ADMIN:PERFORM;00P-09foliowup.doc/kc 



