27 January 2006
The financial health of Scottish further education colleges is improving as longstanding problems are addressed, auditor general Bob Black has found.
But in a report published this week, he said seven of the 39 colleges still needed to eliminate accumulated deficits of £4.3m, and two still needed recovery plans because of concern about their financial position.
The 39 colleges collectively, though, have a surplus of £6m.
The progress report on the Scottish Further and Higher Education Funding Council follows concern about the finances of a number of colleges.
Black said: 'Financial health has generally improved at both sector and college levels following additional funding and there has been some success with its initiatives to improve college management and the condition of college buildings.
'Concerns over performance management are being tackled and a more detailed picture of the sector's achievements is emerging.'
Black said there was still more to be done, but he was satisfied the funding council was moving in the right direction.
The report pointed out that 'concerns remained' about the financial position of two colleges — Inverness College and James Watt College in North Ayrshire.
For 2004/05, Inverness College had forecast a reduction in operating deficit - but instead its deficit increased from £526,000 to £967,000. It also has an historic deficit of £536,000.
PFjan2006
