An Overview

The TEC is responsible for allocating public funds amongst the publicly-funded tertiary education institutions comprising of the two universities; University of Mauritius and University of Technology, Mauritius and three other tertiary institutions; Mahatma Gandhi Institute, Rabindranath Tagore Institute and Mauritius College of the Air. Funds are allocated based on funding principles and methods that are transparent. Funds for capital projects are available under the Human Resource Knowledge and Arts Development Fund(HRKADF), which has as its first object the “financing of physical infrastructure for postsecondary education" such as buildings, equipment and various facilities. On the other hand, funding of the TEIs’recurrent budget falls under programme 426 of the Programme Based Budget(PBB) of the MoTESR&T. It is important to note that funds are released to the TEIs in accordance with terms and conditions of the Financial Memorandum signed between the TEC and the TEIs.

The Budget Process

When calling for budgetary proposals from the TEIs, the TEC provides guidelines on the basis of which the budgets are to be prepared. The proposed budgets are examined internally, taking into account the long-term plans of the institutions and priorities for the Sector. It covers all aspects including staffing, enrolment, courses and programmes delivered by the institutions and different performance indicators applicable to the Sector. Subsequently, consultative meetings are held with the institutions concerned, following which the budgets are submitted to the TEC Board for approval. Once the approval of the TEC Board is obtained, the Budget for the Sector is submitted to the MoTESR&T along with proper justifications. The Budget is once again examined at the level of the MoTESR&T and subsequently at the Ministry of Finance & Economic Empowerment (MoF&EE). The amount to be allocated to the Sector is finally decided upon by the MoF&EE.

Release of funds

Funds are released to the TEIs on the basis of cash flow statements that they submit to the TEC. These cash flow statements are prepared on a quarterly basis and show the actual cash flow for the past quarter and a projected cash flow for the quarter for which funds are being requested. Usually the statements have to be submitted to the TEC by the 10th of the first month of the quarter to allow sufficient time for examination. Following this exercise, a recommendation is made to the MoTESR&T on grant to be released. Actual release of Recurrent funds is effected on a monthly basis. On the other hand, capital grants are released as and when required.

Budget Monitoring

On the basis of the recurrent and capital grant for the year, an annual budget is prepared for the Sector. This is used for monitoring purposes and is reviewed on a quarterly basis.

Monthly income and expenditure statements together with the bank balances and bank reconciliation statements of the institutions are examined in order to ascertain that sufficient funds are available for the financing of their respective activities.

The budget is also reviewed regularly and the revised budget, which is normally submitted on a quarterly basis, is examined thoroughly. The grant is then adjusted accordingly.

As and when required, reallocations are effected within the budget or additional funds are requested from the MoTESR&T.