Tunis:Auditor-General Junias Kandjeke has issued a qualified audit opinion on the Namibia Students Financial Assistance Fund (NSFAF) for the financial year ending 31 March 2025. The audit highlighted significant financial reporting issues, administrative challenges during a system migration, and notably low loan recoveries before NSFAF's integration into the Ministry of Education, Innovation, Youth, Sports, Art and Culture last year.
According to Namibia Press Agency, the report identified four main reasons for the qualified opinion, including inadequate disclosures. Notably, the fund restated financial figures related to disability grants and reclassified operational expenses without necessary detailed quantification and comparative disclosures as required by International Public Sector Accounting Standards (IPSAS).
The audit also revealed that NSFAF failed to measure its student loan book, valued at N$11.7 billion, at depreciated cost according to IPSAS. Additionally, there was a delay in allocating student loan repayments totaling N$20.2 million held in a clearing account at year-end. Accrued expenses of N$5.2 million lacked sufficient supporting documentation, although no key audit matters were identified.
The report pointed out that student loan recoveries amounted to only N$21.5 million, less than 1% of the total student debtors. It also highlighted ongoing debt collection challenges and financial risks, with many loan accounts in long-term arrears and inadequate debtor engagement or recovery measures. The expected credit loss on student loans was estimated at N$5.3 billion, influenced by complex macroeconomic assumptions, data limitations, and unverified borrower records, including deceased debtor listings of N$1.3 million.
Additionally, the report noted NSFAF's violation of its internal performance management policy by not conducting required mid-year staff evaluations, completing only one annual review cycle for the period. The financial year marked the end of NSFAF as an independent statutory body, following a 2021 Cabinet directive and the NSFAF Amendment Bill's passage in March 2025. During the 2024/25 financial year, NSFAF received a government grant of N$2.5 billion from the line ministry, along with a N$118 million special allocation from the Ministry of Finance to assist former students with higher learning debts.