Scotland’s financial watchdog has warned of financial risks to Lews Castle College from its declining performance as it fell short of enrolling its target number of students.
This leaves it open to financial penalties and funding reductions, said Audit Scotland.
The college only achieved 80.5%per cent of its target for 2015/16.
Delays in appointing board members, which had a significant impact on governance arrangements and committee meetings, were also stressed.
The concerns have been highlighted in what’s called a section 22 report to the Scottish Parliament, drawing MSPs attention to matters of concern arising from an audit of accounts.
Auditor General for Scotland, Caroline Gardner, said the college must “take steps now to get on a firmer financial footing and strengthen their governance arrangements."
Colleges funding is mainly based on student numbers but recent years has seen less further education students taking up courses.
Factors include funding changes, population trends and changes in choices made by young people leaving school.
The Lews Castle said it is not in immediate financial difficulty and the accounts have been given a clean bill of health.
Revised credit targets with parent body UHI means a near 5% funding decrease for this year.
Board chair Clive Rowlands said: “It is regrettable that Lews Castle College UHI has been the subject of a section 22 report.
“The college board is however convinced that the new targets we have agreed for 2017/18 will be achievable with the continued hard work and commitment of our excellent staff.”
Lews Castle College facing financial challenges
21 April 2017
