Finding 2024-002: Subrecipient Monitoring – Risk Assessment Contact: Damaris Johnson
Title: Controller
Phone number: 617-914-0500
Estimated Completion Date: December 31, 2025
Correct Action Plan:
Management does not agree that there is a material weakness related to compliance with the grant. Management would like to note the following points:
1) There are two organizations, The Asian University for Woman (AUW), and the Asian University for Woman Support Foundation (AUWSF). These are separate organizations, but AUWSF exists solely to support AUW, and AUWSF is constantly monitoring AUW.
2) The US State Department has emailed that AUW is NOT a subrecipient of AUWSF. This email was forwarded to the auditors.
3) The US State Department has been substantially involved in helping AUWSF carry out this grant work, since 2022, and has not provided any feedback that the AUWSF should be carrying out additional risk assessment procedures on AUW.
4) AUWSF had a fiscal year 2023 single audit, done by the same auditors here, with substantially the same grants and there was no material weakness related to compliance noted during that audit.
5) A variety of information about the AUW and AUWSF including their clean audited financial statements, internal control policies, and other information is documented and publicly available on the AUW and AUWSF’s joint website.
6) AUWSF notes that it actively monitors and reviews the expenditures of the funds they provide to AUW. The funds are paid in installments and only upon satisfactory receipt of documentation of funds expended are subsequent installments sent. AUWSF receives monthly financial statements and bank statements from AUW to further reconfirm the AUW expenditures.
Nonetheless, AUWSF takes any potential significant deficiency in internal control very seriously and will seek guidance from the US State Department to clarify this item and implement any necessary changes.