The American University of Afghanistan: State and USAID Have Taken Action to Address Concerns with the Management, Processes, and Systems at the University

One of the U.S governments largest efforts to advance Afghanistans higher education system is its 14-year investment in the American University of Afghanistan (AUAF) in Kabul. From February 2005 through May 2019, the U.S. Agency for International Development (USAID), the Department of State (State), and the Department of Defense (DOD) cumulatively invested about $167.3 million in AUAF. However, since May 2007, USAID, SIGAR, and others have issued or commissioned dozens of reports on the AUAF, some of which highlighted AUAFs weaknessesin financial management, human resources, and overall university operations. Given the U.S. governments ongoing support of AUAF and its concerns with the universitys management, processes, and systems of control, the objectives of this audit were to determine the extent to which (1) USAID, State, and DOD provided oversight of their AUAF funding, and took action on the results of that oversight; and (2) U.S. funding for the AUAF achieved its intended goals. SIGAR is not making recommendations in this report because it is too early to assess the improvements that may be realized from a 2019 Administrative Agreement between USAID and the AUAF, which called for significant actions to improve management, processes, and systems at the university. It remains to be seen, however, whether those actions will result in the substantive reforms necessary to ensure that the U.S. investment is safeguarded from fraud, waste, and abuse. Therefore, both SIGAR and USAIDs Office of Inspector General will continue to closely monitor AUAFs progress in correcting its financial management and administrative problems.