Edinburgh College: ‘financial position remains challenging’

Edinburgh is one of three colleges ‘facing financial challenges’, according to a report published by the Audit Scotland yesterday.

The Auditor General for Scotland, Caroline Gardner, reported to the Scottish Parliament on the financial sustainability of three colleges.

The following matters were reported in 2015/16 annual audits of Moray College, Lews Castle College and Edinburgh College, were highlighted in reports to the parliament:

Edinburgh College

· While overall it has improved its performance in some areas, the college’s financial position remains challenging and continued progress depends on a number of factors, including a curriculum review and savings from a voluntary severance scheme.

Moray College received 72 per cent of its 2015/16 income from the SFC. Lews Castle College receives 66 per cent of its income from the SFC, which also provides 75 per cent of Edinburgh College’s annual income.

Caroline Gardner said: “These colleges play an important role in their communities, delivering education for thousands of students every year and providing hundreds of jobs. They are also heavily reliant on public funding which can have major implications for how they manage their finances.

“Each college faces different issues but all need to take steps now to get on a firmer financial footing and strengthen their governance arrangements.”

Commenting on the Audit Scotland reports, Acting Convener of Holyrood’s Public Audit and Post-Legislative Scrutiny Committee, Jackie Baillie MSP, said: “It’s disappointing that once again we hear of the significant financial challenges at Edinburgh College but I note that, in some areas, performance has improved. “The Committee looks forward to reviewing the report’s findings with the Auditor General and the three colleges in due course.”

In 2015 – 16  Edinburgh College had 17,898 registered students and employed 1,164 FTE members of staff.

This is the second year in a row that the Auditor General has reported on the financial sustainability of Edinburgh College.The March 2016 publication is available here.