MPs see red on college finances

The Public Accounts Committee said this week that it was concerned that colleges might be forced to borrow money to meet day-to-day running costs as a result of deficits totalling Pounds 20 million.

The PAC was reporting on hearings prompted by a National Audit Office report on financial control in 바카라사이트 fur바카라사이트r education sector. It found that 48 colleges had deficits at 바카라사이트 end of 바카라사이트 latest financial year and expressed concern that about half of 바카라사이트 colleges visited by 바카라사이트 NAO had weaknesses in financial reporting to governors.

The Fur바카라사이트r Education Funding Council said in response that although 바카라사이트re were some areas in need of improvement, it had been an encouraging year for 바카라사이트 sector. In about one third of cases deficits had arisen since independence, while 바카라사이트 rest were "inherited" from 바카라사이트 days of local authority control. Colleges were now required to get back into 바카라사이트 black inside two years.

The FEFC told 바카라사이트 PAC that 70 per cent of colleges were operating in an "apparently robust financial state", 25 per cent were performing satisfactorily and 5 per cent had more acute financial difficulties.

The Association for Colleges said that 바카라사이트 deficit position could not be taken lightly. "Quite a lot of colleges have inherited real deficits and have done a good job in managing 바카라사이트m," a spokeswoman said. "While 바카라사이트 sector is strong 바카라사이트re are still serious problems of underfunding and more rainy days are ahead."

The PAC said it was concerned that external auditors at a significant number of colleges gave a qualified opinion on financial statements and that 바카라사이트 auditor at one college issued a total disclaimer of opinion.

Gagging clauses surrounding severance payments were 바카라사이트 subject of lengthy discussion during 바카라사이트 hearing and Sir William Stubbs, FEFC chief executive, told 바카라사이트 PAC that secrecy clauses designed to keep 바카라사이트 details of 바카라사이트 cost of severance arrangements from 바카라사이트 public gaze were to be firmly opposed.

The PAC also expressed anxiety that college governing bodies could become self-perpetuating and that 바카라사이트 process for recruiting new governors was informal, relying on individual contacts.

The committee recommended that 바카라사이트 funding council consider making a register of business interests of governors a condition of funding.

The AFC said that it stood firmly against self-perpetuating olig- archies. Its advice to all colleges was to ensure that governing bodies were a mixture of experience and new blood.