Audit Office reports significant irregularities at the Cyprus State Scholarships Foundation

The Audit Office of Cyprus released a special report on July 29, 2026, detailing significant administrative and financial irregularities at the Cyprus State Scholarships Foundation (IKYK) for the 2019-2024 period. The report highlights failures in internal control systems, incorrect application scoring, and deviations from established procedures regarding the evaluation and awarding of scholarships.

A key finding involves the decision of the IKYK Board of Directors to grant scholarships to all eligible applicants under the 'Excellence' program for the 2023-2024 academic year without securing necessary budget appropriations. This decision created financial obligations for 344 additional beneficiaries, requiring a supplementary budget and an additional state grant of €1.7 million. Furthermore, a review of 23 sampled applications revealed that five were scored incorrectly, with one case attributed to a systemic error in the 'HERA' electronic system that incorrectly impacted all applicants for Programme B2 and deprived two eligible students of their scholarships.

The Audit Office emphasized that while the foundation plays a vital social role, it must operate with transparency and financial discipline. The report criticizes the lack of measures to restore losses for those impacted by systemic scoring errors. Authorities are now expected to address these governance and procedural gaps to ensure proper management of public funds.