COLLEGE chiefs have been asked to explain their finances after concerns over their spending.
New College Lanarkshire, which combined Coatbridge, Cumbernauld and Motherwell colleges, is under scrutiny after an audit report highlighted concerns about its “financial sustainability”.
The report, which was presented to MSPs, identified a £560,000 deficit for that year due to nationally-agreed pay rises, pensions and national insurance.
Scotland’s auditor general, Caroline Gardener, appeared before the audit committee to explain her findings.
She says the college’s financial problems were caused by “an overly optimistic assumption” in tuition fee income and “poor financial planning around cost pressures”.
MSPs have asked the college’s financial bosses to explain what action they plan to take to tackle the issues raised in the audit.
Convener Jenny Marra said she hoped staff and students would not suffer due to “poor financial planning”.
A spokesman for the college said it was faced with “a complex merger as well as dealing with financial pressure” and would work hard to “deliver a sustainable business model for the future”.
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