The National Student Financial Aid Scheme (NSFAS) wants institutions to face punitive measures if they fail to meet reconciliation deadlines. This forms part of a new strategy aimed at ensuring the effective management of public funds.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at universities and TVET colleges. This funding covers tuition and registration fees, along with allowances for food, accommodation, and learning materials.
NSFAS Acting CEO Waseem Carrim says the bursary scheme must regularise the reporting of financial statements. This was revealed a recent sitting of the Portfolio Committee of Higher Education.
Last year, NSFAS tabled its 2022/2023 financial statements in Parliament, a full year after they were due.
The Public Finance Management Act (PFMA) governs financial management across national and provincial governments, including public entities. It aims to ensure the efficient, effective, and transparent use of public funds.
Carrim believes that submitting financial statements late hinders the scheme’s ability to make critical decisions and act on the Auditor-General’s recommendations. He emphasised that fixing the financial reporting timeline is urgent but achievable.
It doesn't benefit us to be submitting financial statements in December and receiving audit reports in April. By then, the financial year has passed, and we can’t implement any of the Auditor-General’s recommendations.
The CEO said NSFAS held a workshop with the SIU, National Treasury, the Accounting Standards Board, and the closeout team to find solutions to stay on schedule.
Carrim added that pending investigations or ongoing reconciliations should not be used as excuses for delays. This as public entities under investigation can still meet deadlines by transparently disclosing relevant matters.
We’ve given clear instructions to the team: we cannot miss the PFMA audit deadline of 31 May. If we submit our financial statements on time, it also holds the Auditor-General accountable to return audit results by July so we can submit our annual report to Parliament by September.
Carrim believes that regularising NSFAS’s financial processes will lead to improved decision-making.
Holding Institutions Accountable
NSFAS aims to introduce a new monthly and annual reconciliation process with institutions. As part of the 2024 close-out project, TVET colleges had a 60% submission rate.
Carrim suggested that withholding tuition payments from institutions that fail to submit timely reconciliations may be effective. However, he stressed that student allowances must not be affected by such actions.
He added that the NSFAS close-out project has delivered significant benefits for both the organisation and students. Regularising reconciliations will ensure that no student is denied access to their qualifications due to financial mismanagement.
The fact that 268,000 students have received their certificates due to closeout reconciliations is a major achievement. Now, we need to conclude this project properly and ensure it never happens again.
