Caithness Map :: Links to Site Map Great value Unlimited Broadband from an award winning provider  

 

Colleges' Financial Health Improves But Challenges Remain

21st June 2018

Photograph of Colleges' Financial Health Improves But Challenges Remain

A deal to harmonise staff pay at a cost of £50m a year will absorb projected savings from the reform of Scotland's colleges, says the Auditor General.

Caroline Gardner's annual report on colleges says the sector reported a very small surplus in its underlying financial position in 2016/17, compared to the previous year's £8m deficit.

But the upturn masks wide variations between institutions, with several colleges facing significant financial challenges.

The report notes that:

* The sector estimates harmonisation of pay and conditions could add £50m a year to staff costs - absorbing projected savings from college reform;

* The college estate needs urgent and significant investment, with the sector facing an estimated £360m repairs bill;

* Differences in how colleges prepare their six-year financial forecasts mean they are neither comparable nor provide a reliable picture of the sector's sustainability;

* The sector exceeded its learning targets, delivering a greater proportion of credits to deprived, ethnic minority, disabled and care-experienced students;

* The attainment gap between students from well-off and poorer areas is widening.

* The overview shows student numbers have increased by around four per cent as result of a jump in part-time learners and those under 16-years-old.

Good progress has been made in attracting female students to engineering courses, but key courses still have significant gender imbalances.

Varying degrees of success have also been achieved by the sector's three regional strategic bodies (RSBs), which were set up to make the sector more efficient.

In the Highlands and Islands, colleges are working in an increasingly joined up way. Longer-term leadership stability is required to increase the effectiveness of Glasgow's regional board. But the regional arrangement in Lanarkshire is not delivering any significant benefits.

Ms Gardner said:"The performance of Scotland's colleges has improved, although like all public bodies they continue to operate in a very challenging financial environment.

"Several factors pose a risk to colleges' financial sustainability, including the prospect of a bigger wage bill for support staff and the cost of maintaining buildings.

"There now needs to be clarity about how capital spend will be prioritised across the sector, and colleges need to work with the Scottish Funding Council to improve financial forecasting."

The college sector in Scotland comprises 20 incorporated colleges and six non-incorporated colleges, organised into 13 college regions (Appendix 2). Ten of these regions consist of one college. The three remaining regions (Glasgow, Highlands and Islands, and Lanarkshire) have more than one college. The individual

colleges in Glasgow and in Highlands and Islands are assigned to the relevant regional strategic body, ie Glasgow Colleges' Regional Board (GCRB) or University of Highlands and Islands (UHI). In Lanarkshire, New College Lanarkshire is the regional

body and South Lanarkshire College is assigned to the Lanarkshire Board.

Five colleges reported a net liability position in 2016-17: Borders, Forth Valley, Inverness, North Highland and West Lothian. These colleges also reported a net liability position in 2015-16. In 2016-17, the level of liability remained relatively unchanged in three of these colleges.

North Highland College's liability more than halved, from £5.5 million to £2.4 million as a result of asset revaluations.

Forth Valley College's liability increased Part 1. How Scotland's colleges are managing their finances | 13 significantly to £17 million due to significant devaluations of its existing assets. This will change as the college builds its new Falkirk campus.

See the full report HERE

 

Related Businesses

 

Related Articles

UHI Appoints New Principal And Vice-chancellorThumbnail for article : UHI Appoints New Principal And Vice-chancellor
The University of the Highlands and Islands (UHI) has appointed Vicki Nairn as Principal and Vice-Chancellor.   Vicki Nairn, who has been serving as UHI's Interim Principal and Vice-Chancellor since October 2022, initially joined the institution as Vice-Principal Operations in November 2021.  
UHI Shortlisted For Two Scottish Knowledge Exchange Awards 2024Thumbnail for article : UHI Shortlisted For Two Scottish Knowledge Exchange Awards 2024
The University of the Highlands and Islands (UHI) has been shortlisted in two categories at the Scottish Knowledge Exchange Awards 2024, celebrating the people and partnerships behind ground-breaking innovations.   The Flow Country Partnership , working with the Environmental Research Institute in Thurso, part of UHI North, West and Hebrides , nominated for the ‘Making an Environmental Difference' award.  
Campus Closures Again - Thurso, Halkirk And Dornoch - Thursday 18th January 2024Thumbnail for article : Campus Closures Again - Thurso, Halkirk And Dornoch - Thursday 18th January 2024
Due to the ongoing weather warnings and poor weather conditions predicted, our Thurso, Halkirk and Dornoch campuses will be closed on Tuesday 16th January and Wednesday 17th January 2024 Also now Closed 18 January due to more weather warnings All on-campus classes will be moved online where possible.  Staff and students should work from home.  
Scotland's Colleges 2023 - An Audit Scotland BriefingThumbnail for article : Scotland's Colleges 2023 - An Audit Scotland Briefing
Scotland's colleges are vital to learners and local communities.  Risks to the college sector's financial sustainability have increased since we reported in 2022.  
UHI North, West And Hebrides Celebrate Launch As Scotland's Newest CollegeThumbnail for article : UHI North, West And Hebrides Celebrate Launch As Scotland's Newest College
UHI North, West and Hebrides is celebrating its launch as Scotland's newest college following the merger of UHI North Highland, UHI Outer Hebrides and UHI West Highland.   UHI North, West and Hebrides will create an anchor institution connecting rural and island communities through distinctive education and research shaped by the culture, location, and landscapes of the North and West Highlands, Skye, and Outer Hebrides.  
University Highlands And Islands, North, West And Hebrides Looking For New Directors
Would you like to make a positive change to the lives of learners in your local community and help shape future education and training needs?.   Are you passionate about education and keen to use your enthusiasm, leadership skills and expertise to make a difference in your local community?.  
New UHI Course Responds To Climate Change And Transition To Net Zero DemandsThumbnail for article : New UHI Course Responds To Climate Change And Transition To Net Zero Demands
A new course developed by UHI North Highland, UHI Outer Hebrides and UHI West Highland aims to equip graduates with the skills and knowledge to enter the fast-growing and dynamic green economy industry.   Starting this September, the HNC Wildlife and Conservation Management course will focus on important activities such as ecology and ecosystems, species and habitat monitoring, conservation, land management and sustainable wildlife management.  
Waste Wood Innovation Picks Up National PrizeThumbnail for article : Waste Wood Innovation Picks Up National Prize
A waste wood product which can improve water quality has been named as the ‘Innovation of the Year' at the Scottish Knowledge Exchange Awards.   Developed through a collaboration between researchers at UHI North Highland's Environmental Research Institute and Sustainable Thinking Scotland CIC, the ‘biochar' is produced by baking waste wood.  
Scottish Government Consultation On Merger Of Uh North Highland, Uhi Outer Hebrides And Uhi West Highland LaunchesHIThumbnail for article : Scottish Government Consultation On Merger Of Uh North Highland, Uhi Outer Hebrides And Uhi West Highland LaunchesHI
At the end of last year, the boards of management at UHI North Highland, UHI Outer Hebrides and UHI West Highland formally approved the merger proposal and business case, which will see them come together to form UHI North, West and Hebrides from 1 August 2023, subject to Scottish Government approval.   Merger requires approval by Scottish Ministers under the Further and Higher Education (Scotland) Act 1992.  
Caithness Jobs And How To Get Them - Event Back After The Covid YearsThumbnail for article : Caithness Jobs And How To Get Them - Event Back After The Covid Years
Join us on the 11th of March 2023 for Caithness' biggest and best jobs, careers, training and recruitment event.  This event is free to attend and all are welcome! Meet real employers and hear about their industries and any vacancies they currently have.