The National Audit Office has expressed ‘major concern’ about weak internal controls relating to foreign students following courses at the University of Malta.

It said that entitlement to maintenance grants was not always duly verified, and approval for exemptions from the payment of tuition fees was at times issued retrospectively.

Conversely, action against students who failed to pay their bills was also not being taken in time.  

The University of Malta hosts some 1,000 foreign students from 92 countries who are following full-time or part-time degree and diploma courses. Full-time undergraduate courses are free-of-charge to citizens of Malta and the European Union (EU); however, fees are charged to students from non-EU states, as well as in the case of higher and part-time courses in general. Fees range from €150 per semester to €26,000 per academic year, depending on the programme of studies being followed.

During the academic year 2016-2017, foreign tuition fee income earned by UoM €5.2 million.

Individuals accepted as regular students for a day course of studies at the University and who satisfy criteria are eligible for financial assistance as granted to Maltese nationals. This comprises a stipend payable every four weeks, a yearly grant intended to partly cover expenses related to educational material and equipment, as well as a one-time grant at the beginning of the course. Furthermore, students who are in a proven form of hardship may also qualify for a supplementary maintenance grant. Throughout the academic year 2016-2017, maintenance grants paid to foreign students reached €96,143.

In an explanation of its findings, the audit office said that nine out of a sample of 24 foreign students did not submit the necessary documentation to prove that they “have resided in Malta for a period of not less than five consecutive years immediately prior to the commencement of the relative course of studies...” so that they could qualify for financial assistance. Yet all applications were still confirmed by the Board and payouts effected accordingly.

No reassessment of eligibility

The Jobsplus employment history of four students in the audit sample indicated that they were working on a part-time basis. However, no further documentation was traced,  and the audit office thus could not confirm that they are not in “... employment working more than 20 hours weekly...” as stipulated by law.

In another four instances, the students submitted documentation to corroborate the five-year residency criterion; however there was no evidence that such individuals, who were third-country nationals, had a valid residency permit.

 Further verification revealed that this document was only submitted by the students upon applying for an exemption from tuition fees.

It was verbally confirmed that no further vetting was being carried out in instances where students had previously been paid maintenance grants whilst attending a post-secondary institute. Such cases are disclosed in a database which is maintained in spreadsheet format, on a common folder, in a read only format accessible by all postgraduate and tertiary institutions.

In its recommendations, the audit office said the board is to implement adequate internal controls, particularly ensuring that all applications for maintenance grants are supported by reliable, accurate and comprehensive documentation substantiating the requirements emanating from the law, before any payments are made.

Foreign students whose maintenance grants were approved are to be regularly monitored to ascertain that such entitlement still holds. To this effect, periodic vetting of monthly payslips and contracts of employment is to be carried out, to certify that students working on a part-time basis are not exceeding the stipulated threshold.

For full audit trail, students are also expected to provide a valid residency permit and other details as required.

The Students’ Maintenance Grants Office is to ensure better control and thus will start tagging applications of students who are in part-time employment and continue checking periodically on the number of hours being worked by requesting payslips to a number of randomly selected students on a monthly basis.

With regards to foreign students, discussions will be held with the supplier of the system to enhance it in a way that students with residence permit are tagged, enabling automatic alerts prior to the expiration of such permits.