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The Office of the Auditor General has raised concerns over how student financial grants are awarded and paid out in Cyprus, following a 2023 audit that found gaps and procedural problems in the system.
According to Kathimerini's Apostolos Tomaras, while the overall management of student grants was deemed “satisfactory,” the audit uncovered several weaknesses, mainly related to payment errors and unclear application procedures, that could lead to unfair advantages or mistakes.
One key issue involved a decision by the Cabinet to extend the deadline for financial grant applications, allowing 36 late submissions to be accepted. However, this extension did not follow the law governing state student aid (Law N.203(I)/2015), breaching principles of fairness and equality for all applicants, according to the Auditor General.
The audit also sampled 13 cases of grant payments and found troubling examples:
In three cases, grants or allowances were paid either to students who didn’t meet the eligibility rules or for incorrect amounts.
In one case, a student enrolled in a three-year program received grants for four consecutive years, including €2,370 for the academic year 2022-2023.
Another student was paid over €6,200 for distance learning during two academic years, despite the law explicitly excluding remote study from qualifying for state aid.
In a third case, €700 in allowances was given to a student in a five-year program leading to a master’s degree, even though these grants are only meant for undergraduate studies.
The Auditor General recommends revising the law to allow financial grants for undergraduate programs that lead directly to a master’s degree, ensuring those students are not unfairly excluded.
For cases where overpayments benefited the student, the office urges the responsible authority to recover the funds. However, in one instance, the Finance Ministry’s Director-General decided to forgive the €6,215 overpayment due to the applicant’s difficult personal circumstances. The Auditor General noted that only the designated Technical Write-Off Committee has the legal power to cancel uncollectible debts.
The report also highlights procedural flaws in the financial grant system and housing allowances, calling for clearer rules and better oversight to avoid future mistakes and ensure fairness.