This forms part of its strategy to strengthen public fund management and improve accountability across the higher education sector.
NSFAS Acting CEO Wassim Carrim told Parliament’s Portfolio Committee on Higher Education that the scheme must regularise its financial reporting to avoid delays that affect decision-making and compliance with the Public Finance Management Act (PFMA).
“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.”
He said late submissions hinder the ability to act on audit recommendations, calling the need for timely reporting “urgent but achievable.”
Coordination to Meet PFMA Deadlines
NSFAS held a workshop with the Special Investigating Unit (SIU), National Treasury, the Accounting Standards Board, and its closeout team to keep its reporting on track.
Carrim warned that ongoing investigations or reconciliations cannot be used to justify delays. He insisted public entities must meet deadlines, even if it means disclosing relevant issues transparently in their financial reports.
“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.”
Institutional Accountability and Reconciliation Compliance
NSFAS plans to implement a monthly and annual reconciliation process with institutions. As part of the 2024 close-out project, only 60% of TVET colleges submitted the required information.
Carrim proposed withholding tuition payments from institutions that miss deadlines, but stressed that student allowances must remain unaffected.
“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.”
Improved Financial Management for Better Outcomes
NSFAS says regularising financial processes will lead to better oversight and ensure no student is denied access to their qualifications due to administrative issues.
NSFAS provides comprehensive bursaries and student loans to eligible students at approved universities and TVET colleges. The funding covers tuition, registration, accommodation, food, and learning materials.
NSFAS tabled its 2022/2023 financial statements in Parliament a year late, prompting renewed efforts to align with PFMA guidelines and improve transparency.
