Abstract

The management of research grants in higher education institutions is critical for ensuring that funds are used effectively and efficiently. The Standard for Good Financial Grant Practice (GPFP) seeks to provide a framework for universities to manage grants with high standards of accountability and transparency. This paper investigates the implications of adopting the Standard for Good Financial Grant Practice (GPFP) for South African universities, with a specific focus on Nelson Mandela University (NMU). The GPFP aims to standardise financial management practices across universities and other external funding recipients to ensure transparency, accountability, and efficiency in the use of grant funds. Despite NMU’s comprehensive financial management policies, certain governance gaps persist. This study identifies these gaps and discusses how the implementation of GPFP can address them. Using document and process analysis, NMU’s financial management policies and procedures, including the Risk Management Plan, Document on the Delegation of Decision-Making Authority, Policy for the Management of Third-Stream Income, and the Code of Conduct for Researchers are evaluated. The findings reveal that while NMU’s policies align with GPFP principles, there are areas for improvement. For instance, the current risk management framework does not require proactive risk identification mechanisms and continuous monitoring. Moreover, the Signing Powers Policy could benefit from optimised segregation of duties and comprehensive documentation, while the management of third-stream income requires robust tracking and reporting mechanisms to be developed. The Code of Conduct for Researchers has room to address conflicts of interest more effectively and include regular ethical training. Adopting the GPFP at NMU would enhance existing financial management practices by addressing these governance gaps. The alignment between NMU’s policies and GPFP principles suggests that the university is well-positioned to implement the standard. However, challenges such as the need for continuous training and capacity building for staff, as well as the potential costs associated with compliance, must be considered. Overall, the implementation of GPFP is expected to lead to improved transparency, accountability, and efficiency in the management of grant funds, ultimately supporting NMU’s mission and objectives, as well as increasing visibility and trust to external funders.